Agenda Item AGENDA STAFF REPORT ASR Control 24-000124
MEETING DATE:	03/12/24
legal entity taking action:	Board of Supervisors
board of supervisors district(s):	3
SUBMITTING Agency/Department:	OC Public Works (Approved)
Department contact person(s):	James Treadaway (714) 667-9700
	Mindy Winterswyk (714) 834-5052

Subject: Approve Amendment for Orange County Health Care Agency Campus at El Toro

ceo CONCUR

County Counsel Review

Clerk of the Board

Concur

Approved Agreement to Form

Discussion

4/5 Vote

Budgeted: No

Current Year Cost: $2,200,000

Annual Cost: See Financial Impact Section

Staffing Impact:

No

# of Positions:

Sole Source: N/A

Current Fiscal Year Revenue: N/A

Funding Source: Fund 15D: 100%	County Audit in last 3 years: No
Levine Act Review Completed: Yes

Prior Board Action: 11/29/2022 #45

RECOMMENDED ACTION(S):

1.

Approve Amendment No. 1 to the contract with PCL Construction Services, Inc., to provide Design and Construction Services for the Orange County Health Care Agency Campus at El Toro Project, to increase the project Guaranteed Maximum Price in the amount of $2,200,000, which shall be allotted in its entirety to County of Orange contingency funds for a cumulative total amount not to exceed $80,440,000.

2.

Authorize the Director of OC Public Works or designee to execute Amendment No. 1 to the contract with PCL Construction Sevices, Inc. and all documents necessary to implement and accomplish the contemplated increase to the contract Guarantee Maximum Price, inclusive of approving $1,134,884 in change orders to be paid for via County of Orange contingency funds.

SUMMARY:

Approval of Amendment No. 1 to the contract for Design and Construction Services for the Orange County Health Care Agency Campus at El Toro Project will increase the contract’s Guarantee Maximum Price necessary for completion of the project.

BACKGROUND INFORMATION:

The proposed Orange County Health Care Agency Campus at El Toro Project (Project) site is in the City of Irvine (City) within the vicinity of the Orange County Great Park and within 20-minute walking distance from the Irvine train station. The site consists of two parcels, with Parcel 3 being approximately 4.38 acres and Parcel 4 being approximately 5.23 acres. One parcel is within the Lease in Furtherance of Conveyance area. The Project's vertical structure is an approximately 68,000 square-foot, two-story building and includes the following.

Public Health Lab with Biosafety Lab component	25,000 square feet
Communicable Disease Control Services	22,000 square feet
Emergency Management Center	12,000 square feet
Agency Operations Center	9,000 square feet
Parking improvements to accommodate 240 code-compliance parking spaces	N/A
On-site landscaping and site security fencing	N/A

On February 2, 2022, OC Public Works issued Request for Qualification documents for the Project through the County of Orange (County) online bidding system.

On November 29, 2022, the Board of Supervisors (Board) approved Contract MA-080-23010085 (Contract) for Design and Construction Services (Services) with PCL Construction Services, Inc. (Contractor) for a Guaranteed Maximum Price (GMP) of $78,240,000. The Project design and pre-construction phases have now been completed.

During the course of initial site work, the Contractor encountered several unforeseen conditions, such as unidentified underground utilities, abandoned building foundations, storm drains and other miscellaneous issues. These issues have resulted in additional costs not anticipated in the Project budget. Consequently, OC Public Works is requesting additional funds in the amount of $2.2 million to address the change orders and provide additional contingency funds for the remainder of the Project.

The change orders are outlined in Attachment D and show the revised costs for the Project GMP, including, but not limited to, removal of subgrade petromat, underground water pipes, subgrade concrete slabs, foundations, storm drain structures and addition of vapor barrier.

OC Public Works is procuring Services for the Project in accordance with the 2020 Design and Construction Procurement Policy Manual (DCPM), Section 5. The Orange County Preference Policy is not applicable to contracts procured in accordance with the DCPM.

OC Public Works is recommending Board approval of Amendment No. 1 to the Contract with Contractor for Services for the Project, to increase the GMP in the amount of $2.2 million, which shall be allotted in its entirety to County contingency funds for a cumulative total amount not to exceed $80.44 million. The original total budget was $78.24 million.

The Contractor’s performance has been confirmed as at least satisfactory. OC Public Works has verified there are no concerns that must be addressed with respect to Contractor’s ownership/name, litigation status or conflicts with County interests.

This Contract includes subcontractors or pass through to other providers. This Contract, due to the nature of the services, could require the addition of subcontractors. In order to add subcontractors to the Contract, the Contractor must seek express consent from OC Public Works. Should the addition of a subcontractor affect the scope of work and/or Contract amounts, OC Public Works will bring the item back to the Board for approval. See Attachment C for the Contract Summary Form.

Compliance with CEQA: The City, as lead agency under CEQA, in City Council Resolution No. 03-60, adopted on May 27, 2003, certified a Final Program Environmental Impact Report (PEIR) for the Orange County Great Park Annexation, General Plan Amendment, Zoning and Related Actions (SCH# 2002101020), in City Council Resolution No. 11-97, adopted on August 30, 2011, certified first Final Supplemental Environmental Impact Report and in City Council Resolution No. 13-132, adopted on November 26, 2013, certified a Final Second Supplemental Environmental Impact Report (SSEIR) for the Heritage Fields Project 2012 General Plan Amendment/Zoning Code Project (SCH# 2002101020), which studied the environmental impacts associated with the proposed action. The County has reviewed and considered the Final PEIR and SSEIR and has certified that it has done so.

The Final PEIR and SSEIR assumed certain development intensities that are consistent with the intentions of the previous landowner and the expectations of the City and also assumed development intensities for the 100 acres that was later dedicated to the County, consistent with the list of uses provided in the Pre-Annexation Agreement dated March 4, 2003. The Final PEIR and SSEIR analyzed both the Base Plan and the Overlay Plan and indicate the type and intensity of development permitted. The proposed Project is consistent with the assumptions for development on the Project site. The County is authorized by CEQA Guidelines Section 15162 and 15168 to rely on the Final PEIR and SSEIR certified by the City, and no further environmental review is required.

FINANCIAL IMPACT:

Appropriations for this Contract cost increase will be absorbed in Fund 15D, Countywide Non-General Fund Capital Project, FY 2023-24 Budget, and will be included in the budgeting process for future years. The Project will be completed in phases and encumbered accordingly up to the proposed revised GMP of $80.44 million.

The proposed Contract includes a provision stating the Contract may be terminated for convenience of the County not less than 30 days written notice to the Contractor without penalty to the County.

STAFFING IMPACT:

N/A

REVIEWING AGENCIES:

OC Health Care Agency

ATTACHMENT(S):

Attachment A - Amendment No. 1 to Contract MA-080-23010085 with PCL Construction Services, Inc.
Attachment B - Redline to Contract MA-080-23010085 with PCL Construction Services, Inc.
Attachment C - Contract Summary Form
Attachment D - Change Orders