Agenda Item AGENDA STAFF REPORT ASR Control 23-000761
MEETING DATE:	09/26/23
legal entity taking action:	Board of Supervisors
board of supervisors district(s):	5
SUBMITTING Agency/Department:	OC Waste & Recycling (Approved)
Department contact person(s):	Tom Koutroulis (714) 834-4122
	Hany Ahmed (949)728-3043

Subject: Award Contract for Prima Zone 4 Phase A Mass Excavation and Liner Project

ceo CONCUR

County Counsel Review

Clerk of the Board

Concur

Approved Agreement to Form

Discussion

3 Votes Board Majority

Budgeted: Yes

Current Year Cost: $50,000,000

Annual Cost: FY 2024-25 $38,206,536

Staffing Impact:

# of Positions:

Sole Source: N/A

Current Fiscal Year Revenue: N/A

Funding Source: Fund 273: 100%	County Audit in last 3 years: No
Levine Act Review Completed: Yes

Prior Board Action: N/A

RECOMMENDED ACTION(S):

Award construction contract to Sukut Construction, LLC in the amount of $88,206,536 for the Zone 4 Phase A Mass Excavation and Liner Project at the Prima Deshecha Landfill, effective upon execution of all necessary signatures and until project completion within 750 days.

Authorize the Director of OC Public Works or Deputized Designee to execute and make ministerial or non-ministerial changes to the construction contract with Sukut Construction, LLC.

SUMMARY:

Award of the construction contract to Sukut Construction, LLC in the amount of $88,206,536 for the Zone 4 Phase A Mass Excavation and Liner Project at the Prima Deshecha Landfill will support providing long-term landfill waste disposal services and compliance with state and federal regulations.

BACKGROUND INFORMATION:

OC Waste & Recycling (OCWR) is responsible for managing the County of Orange (County) solid waste disposal system, including South Region Landfills which consists of the active Prima Deshecha Landfill (Prima) and five closed solid waste disposal sites. Prima was opened in 1976 to meet the solid waste disposal needs of the southern portion of Orange County. Prima is a 1,530-acre landfill site located within unincorporated Orange County, the City of San Juan Capistrano and the City of San Clemente. The landfill operation is currently located in an area designated as Zone 1, which has capacity to accept solid waste through the year 2050. Zone 4, located on the east side of the property, is currently in the planning stages for development. Development of Zone 4 provides additional waste disposal capacity for Prima through the anticipated closure year of 2102, ensures long-term disposal capacity for Orange County and provides for a stable rate structure for the cities and special districts within the County for future generations.

The Prima Zone 4 Phase A Mass Excavation and Liner Project (Project) will consist of construction within 65 acres of the landfill and will provide approximately 12.3 million cubic yards of landfilling capacity. The Project will include the excavation of approximately seven million cubic yards of dirt and rock, construction of a protective liner, road and facility improvements, installation of systems for leachate collection, landfill gas collection and facility drainage control. The Project will provide continued disposal services for the County and increase disposal capacity and operational efficiencies. Development of Zone 4 of the Prima Landfill is a necessarily included component of the Project covered under Final Environmental Impact Report (EIR) No. 575, Final Supplemental EIR (SEIR) No. 597, and Final Second SEIR (SSEIR) to EIR 575.

On June 16, 2023, OC Public Works issued an Invitation for Bids for the Project through the County online bidding system. Five bidders were pre-qualified to bid on the Project and three bids were received and reviewed by OC Public Works.

The following summarizes the three bids received on July 21, 2023, and provides a comparison against the Engineer's Estimate:

	Base Bid
Sukut Construction, LLC	$88,206,536
Independent Construction	$94,452,543.84
Skanska USA Civil West California Inc.	$92,980,000
Engineer’s Estimate	$99,000,000.00

A full summary of the three bids received can be found in the Bid Summary as Attachment D.

The lowest responsive and responsible bid was submitted by Sukut Construction, LLC (Contractor) for the Project. The Contractor's License Number 985106 was verified as current and active through the California Contractors State License Board database on July 5, 2023. A copy of the verification is on file. OC Public Works conducted due diligence on the Contractor, reference checks were satisfactory and completed with San Bernardino County and Stanislaus County regarding similar projects. Therefore, OC Public Works and OC Waste & Recycling recommends that the Board awards Contract MA-299-24010124 (Contract) to the Contractor in the amount of $88,206,536.

The lowest responsive and responsible bid submitted by Sukut Construction, LLC for this project is approximately 12 percent below the Engineer’s Estimate of $99,000,000. The variance between the Engineer’s Estimate and the lowest responsible bid is $10,793,464. OC Public Works has reviewed the Engineer’s Estimate and verified that the difference is not the result of errors or omissions in the estimate, but rather is attributed to a competitive bidding process and the stable and favorable market for building materials and fuels.

This contract includes subcontractors. See Attachment B for information regarding subcontractors and Contract Summary Form.

The Orange County Preference Policy is not applicable to this contract award.

Compliance with CEQA: This Project is a necessarily included element of the Project considered in Final EIR No. 575, certified by the Board of Supervisors on November 6, 2001, in combination with Final SEIR 597, certified by Board of Supervisors on June 19, 2007, and Final SSEIR to EIR 575, certified by the Board of Supervisors on January 25, 2022, which adequately addressed the effects of the proposed Project. Together, Final EIR No. 575, Final SEIR 597 and Final SSEIR to EIR 575 adequately address the effects of the proposed Project. No substantial changes have been made in the Project, no substantial changes have occurred in the circumstances under which the Project is being undertaken and no new information of substantial importance to the Project which was not known or could not have been known when Final EIR No. 575, Final SEIR 597, or Final SSEIR to EIR 575 were certified and the Mitigation Monitoring and Reporting Program was adopted and has become known; therefore no further environmental review is required.

FINANCIAL IMPACT:

Appropriations for this Contract are included in the FY 2023-24 Budget for OC Waste & Recycling Capital Project Fund 273 and will be included in the budgeting process for future years. The Contract includes a provision stating the Contract is subject to, and contingent upon, applicable budgetary appropriations being approved by the Board for each fiscal year during the term of this Contract. If such appropriations are not approved, this Contract may be immediately terminated without penalty to the County.

STAFFING IMPACT:

N/A

ATTACHMENT(S):

Attachment A – Contract MA-299-24010124
Attachment B – Contract Summary Form
Attachment C – Project Location Map
Attachment D - Bid Summary