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Anaheim, CA 92805
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CITY COUNCIL AGENDA REPORT
City of Anaheim
DEPARTMENT OF PUBLIC WORKS
DATE: OCTOBER 17, 2023
FROM: DEPARTMENT OF PUBLIC WORKS
SUBJECT: TERMINATION OF THE CITYWIDE SANITARY SEWER
IMPROVEMENT - BROOKHURST NORTH OF LINCOLN
AVENUE PROJECT AGREEMENT
ATTACHMENT (Y/N): YES ITEM # 07
GOVERNMENT CODE § 84308 APPLIES: YES
RECOMMENDATION:
That the City Council, by Motion, approve the termination-for-convenience of the agreement with Bonadiman Water, Inc. (Agreement) for the construction of the Citywide Sanitary Sewer Improvement Project - Brookhurst North of Lincoln Avenue (Project) and direct and authorize the Director of Public Works to issue a written notice of termination to Bonadiman Water, Inc. (BWI) and begin procedures to determine a final payment to BWI.
DISCUSSION:
The work anticipated sewer improvements in Brookhurst Street north of Lincoln Avenue in the City of Anaheim (City). Sewer flow was to be rerouted to eliminate the existing inverted siphon by extending the westerly sewer main south towards Lincoln Avenue. The existing 8” sewer main that crosses from west to east will ultimately be abandoned including the existing siphon. The work includes the removal and replacement of a sag along the westerly sewer main.
The Project plans were developed by the City’s design consultant, Cannon, based on the as-built information and research provided by the utility companies during the design phase. The Project was awarded by the City Council for construction on April 4, 2023.
The City issued BWI the Notice to Proceed (NTP) on July 18, 2023, but soon after ran into field issues with an unidentified concrete encasement and an AT&T facility not shown on the plans.
The City sought to work cooperatively and swiftly with the designer, utilities, and contractor to find a solution to continue constructing the sewer line without incurring large costs using internal resources to identify the encasement and alternative alignments. BWI was also directed to perform additional excavations to verify underground utilities and found an AT&T 16” steel conduit in a different location from the information AT&T provided to Canon. City staff worked with Cannon to expedite a sewer alignment redesign to avoid the conflict with the AT&T steel conduit and provided revised plans to BWI on September 13, 2023. BWI submitted a proposal for the new sewer alignment on September 14, 2023, with a cost proposal that equates to forty-two percent (42%) more than the original contract amount awarded by City Council. The contract cost would change from $487,210 to $695,000.
Termination of the Citywide Sanitary Sewer Improvement– Brookhurst North of Lincoln Avenue Project Agreement October 17, 2023
City staff initiated dialog with AT&T to allow them to determine the disposition of their facility and the effects on the City’s sewer alignment. AT&T has options, including the relocation of their facility or leaving it in place. If AT&T relocates their facility at their sole cost, the City’s original sewer alignment can be utilized. However, if AT&T prefers to leave their facility in place, the City will request AT&T to participate with their fair-share of the City’s increased construction costs.
The termination of the Agreement with BWI will allow time necessary for AT&T and the City to resolve the utility costs and to seek a potential cost-savings solution for both agencies. The city has provided AT&T with a notice to relocate their facility.
If the termination-for-convenience of the Project Agreement is approved, the following steps would be taken by City staff: (1) a notice of termination (Attachment 1) will be issued, (2) the City will review costs and expenses reasonably incurred by BWI and develop a final payment proposal; (3) the balance of the Project will be rebid competitively; (4) the balance of the funds would be re- directed towards the lowest responsible bidder awarded by City Council; (5) area residents and businesses will be notified of the Project’s termination and the anticipated recommencement of work.
COMMUNITY WORKFORCE AGREEMENT (CWA):
This Project is not covered “Project Work” as defined in the CWA the City entered into with the Los Angeles/Orange Counties Building and Construction Trades Council and the Signatory Craft Councils and Local Unions. Project Work covered by the CWA is defined and limited to all construction and major rehabilitation work listed on the Project List (Attachment F to the CWA).
The CWA was approved by the City Council on December 3, 2019 and amended and restated on October 5, 2021. The intent of the Project List is that larger projects be included due to the additional administrative activities associated with the CWA and minimize the impact of the additional administrative functions and costs for the City and for smaller construction firms.
IMPACT ON BUDGET:
Terminating this Agreement will disencumber the Project’s remaining funds, allowing them to be utilized after the rebid and redesign of the Project and awarded through City Council action.
Respectfully submitted,
Rudy Emami
Director of Public Works
Attachment:
1. Notice of Termination