REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Oliver Chi, City Manager
PREPARED BY: Sean Crumby, Director of Public Works
Subject:
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Authorize the appropriation of funds and execution of a construction contract with J. F. Shea Construction, Inc., in the amount of $265,316.00 for various improvements to City operated utilities, including a 20% construction contingency
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Statement of Issue:
City Council action is requested to authorize award of a construction contract to J.F. Shea Construction, Inc., the contractor for the East Garden Grove Wintersburg Channel Improvements Project (EGGW Channel Project), for the County of Orange.
Financial Impact:
Total funds for the project, including contingency and supplemental expenses, are estimated at $318,379.20. Staff requests a $172,404.00 appropriation from the Sewer Service Fund (511), and a $145,975.20 appropriation from the Infrastructure Fund (314).
Recommended Action:
recommendation
A) Appropriate $172,404.00 from the Sewer Service Fund (511) to Account 51185101.82600; and,
B) Appropriate $145,975.20 from the Infrastructure Fund (314) to Account 31485201.82500; and,
C) Authorize a contract with J.F. Shea Construction, Inc., in the amount of $265,316.00; and,
D) Authorize the Mayor and the City Clerk to execute a construction contract in a form approved by the City Attorney; and,
E) Authorize a twenty percent (20%) construction contingency.
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Alternative Action(s):
Do not authorize the sole source procurement and the construction contract and direct staff accordingly.
Analysis:
J. F. Shea Construction, Inc., was awarded a contract to provide construction services for the East Garden Grove Wintersburg Channel Improvements Project (EGGW Channel Project) for the County of Orange, near the intersection of Warner Avenue and Springdale Street, for $85,109.096, on June 9, 2020. The City has a 12-inch and a 21-inch pipeline under the EGGW Channel, which are permitted in County right of way by Encroachment Permit. The terms of the Encroachment Permits place the burden of relocation or improvement of the two pipelines with the City. In order to be compatible with the County Channel improvements, these pipelines require encasement at each end of each pipeline.
J.F. Shea Construction has provided four cost estimates to provide the encasement of the City’s 12-inch and 21-inch pipelines, one cost estimate for each end of each pipeline. The total cost of all four encasements is $318,379.20, including contingency and supplemental expenses. The City has asked Reyes Construction, Inc., to estimate the cost of the four encasements. Reyes Construction is the County of Orange contractor for a similar channel project on the Talbert Channel. Reyes Construction verified that the cost proposals from J.F. Shea Construction were reasonable for the proposed encasements.
J.F. Shea Construction is in a unique position to provide the four each encasements for the City’s 12-inch and 21-inch pipelines. They are mobilized and ready to provide the encasement for the City. As a part of their contract with the County, they will be providing dewatering and excavation under the bridges, in the regions where the pipelines are located. The cost of these items are $771,950 for dewatering, and $275,000 for excavation. Should the City choose a separate contractor for the encasement work, a good deal of the cost for the dewatering and excavation would need to be duplicated. Due to these factors, the City would end up paying far more to a separate contractor than to J. F. Shea Construction for these encasements.
Environmental Status:
This Project is an included element of the Project considered in Mitigated Negative Declaration (MND) IP No. 18-052 approved by the County of Orange Board on October 22, 2019, that adequately addressed the effects of the proposed Project.
Strategic Plan Goal:
Infrastructure & Parks
Attachment(s):
1. Project Sheet: County of Orange, East Garden Grove Wintersburg Channel Project
2. County of Orange, Minute Order 20-000287