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CITY COUNCIL AGENDA REPORT
City of Anaheim
DEPARTMENT OF PUBLIC WORKS
DATE: DECEMBER 12, 2023
FROM: DEPARTMENT OF PUBLIC WORKS
SUBJECT: TERMINATION OF THE CITYWIDE SANITARY SEWER
IMPROVEMENT - MAGNOLIA AND BROADWAY SANITARY
SEWER IMPROVEMENTS AGREEMENT
ATTACHMENT (Y/N): YES ITEM # 08
GOVERNMENT CODE § 84308 APPLIES: YES
RECOMMENDATION:
That the City Council, by Motion, approve the termination-for-convenience of the agreement with Torres Sanitation Systems (Agreement) for the construction of Magnolia and Broadway Sanitary Sewer Improvements (Project) and direct and authorize the Director of Public Works to issue a written notice of termination to Torres Sanitation Systems.
DISCUSSION:
The work anticipated construction of a new 8-inch VCP sewer line that would extend westerly towards Magnolia Avenue on Broadway, while abandoning an existing 8-inch VCP inverted sewer siphon near Aron Place on Broadway. The total length of the sewer improvements for the Project would have been approximately 425 linear feet. The work intends to reduce the City’s long-term maintenance efforts.
After the project was awarded to Torres Sanitation Systems, City staff experienced a delay commencing coordination with the contractor due to on-going workload. Also, Torres Sanitation Systems has experienced a shortage of resources and has notified City staff that they would not be able to break ground for several months. Since no work was performed under this agreement, there will be no compensation to the Contractor as a result of this termination.
The termination of the Agreement with Torres Sanitation Systems will allow the city to combine the project with other work into a larger project. This would assist in procuring more competitive and favorable bids with a reduced cost per unit price as more work will be performed under the same contract. 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 Project will be rebid competitively with an increased scope; (3) the lowest responsible bidder will be awarded by City Council; and (4) commencement of work.
COMMUNITY WORKFORCE AGREEMENT (CWA):
This Project was 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 Termination of the Citywide Sanitary Sewer Improvement– Magnolia and Broadway Sanitary Sewer Improvements Agreement December 12, 2023
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). It is anticipated that the new larger project will meet the project work as defined in 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 allow the Project funds to be utilized after the Project is rebid and awarded through future City Council action.
Respectfully submitted,
Rudy Emami
Director of Public Works
Attachment:
1. Notice of Termination