City of Corona
Staff Report
400 S. Vicentia Ave.
Corona, CA 92882
File #: 22-0343
REQUEST FOR CITY COUNCIL ACTION
DATE: 05/04/2022
TO: Honorable Mayor and City Council Members
FROM: Public Works Department
SUBJECT:
Award of Contract to Hera General Engineering, Inc. for the removal and disposal of debris for the Bedford Wash Debris Removal and Disposal Project.
EXECUTIVE SUMMARY:
In February 2019, heavy rains caused a large accumulation of debris under the Bedford Wash. To help alleviate the immediate issue and concerns over potential damage to infrastructure, the Bedford Wash Phase 1 project removed the debris from the wash and moved it to a temporary storage site on Riverside County Transportation Commission (RCTC) property. The action before you is the second and final phase of the project, to remove and dispose of the debris and sediment from the RCTC property by awarding a contract to Hera General Engineering, Inc. in the amount not to exceed $98,475 for the Bedford Wash Debris Removal and Disposal Phase 2 Project.
RECOMMENDED ACTION:
That the City Council:
a. Adopt the Plans and Specifications for the Bedford Wash Debris Removal and Disposal Phase 2 Project, Project No. 2019-03, Notice Inviting Bids 22-028RH. b. Award Notice Inviting Bids 22-028RH for the Bedford Wash Debris Removal and Disposal Phase 2 Project to Hera General Engineering, Inc. of Riverside, CA as the lowest responsive, responsible bidder for the total not to exceed the amount of $98,475. c. Authorize the City Manager, or his designee, to execute a contract with Hera General Engineering for $98,475.
d. Authorize the City Manager, or his designee, to negotiate and execute non-substantive City of Corona Page 1 of 4 Printed on 4/28/2022
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File #: 22-0343
d. Authorize the City Manager, or his designee, to negotiate and execute non-substantive extensions, change orders, and amendments up to 20% of the Contract amount or $19,695. e. Authorize the Purchasing Manager to issue a Purchase Order to Hera General Engineering, Inc. in the amount of $98,475.
BACKGROUND & HISTORY:
As a result of heavy rains in February 2019, a significant amount of debris and sediment accumulated in the Bedford Wash Channel in a concrete-lined section that crosses under Temescal Canyon Road. The attached Exhibit “1” depicts the project location area. The depth of sediment on the upstream side of the channel reached a height that threatened to block stormwater flow through Bedford Wash. Due to concerns over the potential impact of this build-up, which included flooding of Temescal Canyon Road and damage to public infrastructure, it was determined that there was an immediate need to remove the debris and sediment.
A portion of the Bedford Wash Channel is within the Riverside County Transportation Commission’s (RCTC) jurisdiction, so City of Corona (City) staff worked with RCTC staff to reach an agreement to temporarily store the sediment on RCTC property, which is directly adjacent to the channel. The City and RCTC entered into a Right-of-Entry Agreement for this purpose. The Right-of-Entry Agreement allowed the material to be stored on-site until October 31, 2021.
In December 2019, the City applied for a Public Assistance Program grant from the Federal Emergency Management Agency (FEMA) to cost-share for the work, which was a result of storm events. The initial work of removing the debris and sediment from the Bedford Wash Channel was completed in February 2020 to alleviate the immediate threat, and the debris was placed on RCTC property. Subsequently, FEMA awarded a grant to the City in April 2020. The grant provides for a maximum of 75 percent cost-sharing from the Federal government and 75 percent of the remainder from the state government. That is, FEMA does not reimburse 100 percent of the project cost. The Public Assistance Grant will provide for 75% coverage from the Federal government, and then 75% of the remainder will be covered by the State (75 percent of the 25 percent remaining cost), leaving
6.25 percent of the total project cost to be paid for by the City.
The grant application to FEMA included a scope of work that indicated the sediment and debris was to be taken to a local landfill for disposal. This is a simple but expensive solution, as the fees to dispose of the material at the landfill would be over $350,000, with a total project cost estimate of $527,000. City staff had the material tested, and the results indicated that the material was suitable fill material for certain applications. Further research indicated that the cost of beneficially reusing the material instead of having the material disposed of at a landfill would be closer to $340,000, as there would be no fees incurred for landfill disposal. Therefore, the City requested a scope change from FEMA that would allow the material to be taken to another site in lieu of the landfill. The change in scope is currently under review by FEMA. The City has been in regular contact with the California Office of Emergency Services (CalOES), the agency that is administering the FEMA grant, to ensure appropriate time extensions and approvals are received. In the meantime, RCTC granted an extension to the Right-of-Entry Agreement through June 30, 2022.
There exists the possibility that FEMA could reject the request for the change in scope, although the City of Corona Page 2 of 4 Printed on 4/28/2022
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File #: 22-0343
There exists the possibility that FEMA could reject the request for the change in scope, although the City is confident that FEMA will see that the beneficial re-use of this fill material is the best option. If, however, FEMA rejected the change in scope, the City would not be reimbursed for the expenses to perform this work, which is currently funded with Measure A Funds (Fund 227). However, the City still needs to move the material whether FEMA approves the expense or not. If the City does not proceed with the award at this time, the City may not receive as favorable a bid as the current bid.
The current bid relies on a third party that needs fill material within close proximity to the site, saving the City money on the landfill costs. Additionally, conducting a re-bid process would require additional staff time and resources. As mentioned above, FEMA also does not reimburse 100 percent of the project cost. If the City opted to wait and rebid the project after receiving approval to take the debris to the landfill, per the original scope of work, the City would still be required to pay its share (6.25%) of the total project cost. The current cost estimate is $527,000 to perform the work, based upon the original FEMA scope. This amount exceeds the remaining grant amount of $$330,000. The City is responsible for its fair share match and may be responsible for any costs exceeding the grant amount, which would be much more than the bid amount provided herein. Staff, therefore, believes that the award of this bid in the amount of $98,425 is the best course of action and in the best interests of the City.
ANALYSIS:
Notice Inviting Bids (NIB) 22-028RH was issued for this Project on December 8, 2021, and was posted on the City’s PlanetBids bidding website and advertised in the Sentinel Weekly on December 8, 2021. A total of 33 prospective bidders were solicited, and five (5) bids were received by the due date and time of February 22, 2022, at 10:00 am. The results of the bids are as follows:
City staff reviewed the bids and determined that Hera General Engineering, Inc. of Riverside, CA was the apparent lowest responsive and responsible bidder, with a bid submission of $98,475. This bid was significantly lower than the initial cost estimates. City staff contacted Hera General Engineering to confirm the contractor’s price and project scope. Staff recommends that the City Council award the Project to Hera General Engineering, Inc. of Riverside, CA, in an amount not to exceed $98,475.
Staff is requesting approval of a change order limit of 20% or $19,695 of the Contract amount for contingency to complete extra work when unforeseen changes are encountered.
FINANCIAL IMPACT:
There is an existing Capital Improvement Project titled “Remove Debris from Bedford Wash Under Temescal Canyon,” CIP No. 60300. The current available balance in CIP No. 60300 is $196,969, which is sufficient for the recommended award of contract. The work is anticipated to be funded in part with federal Public Assistance Grant funds by the Federal Emergency Management Agency City of Corona Page 3 of 4 Printed on 4/28/2022
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File #: 22-0343
part with federal Public Assistance Grant funds by the Federal Emergency Management Agency (FEMA).
ENVIRONMENTAL ANALYSIS:
This action is categorically exempt pursuant to Section 15301 of the Guidelines for the California Environmental Quality Act (CEQA), which states that the operation, repair, maintenance, permitting, leasing, licensing, or minor alteration of existing public or private structures, facilities, mechanical equipment or topographical features, involving negligible or no expansion of use beyond that existing at the time of the CEQA determination, and is therefore exempt from CEQA. This action involves the removal of storm debris from public facilities. Therefore, no environmental analysis is required.
PREPARED BY: TRACY MARTIN, CAPITAL IMPROVEMENT PROJECT MANAGER REVIEWED BY: SAVAT KHAMPHOU, PUBLIC WORKS DIRECTOR
Attachments:
1. Exhibit 1 - Project Location Map
2. Exhibit 2 - Riverside County Transportation Commission Right-of-Entry Agreement with City of Corona (including First and Second Amendments)
3. Exhibit 3 - Construction Contract with Hera General Engineering, Inc.
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