Agenda Report
Fullerton City Council
MEETING DATE: FEBRUARY 4, 2025
TO: CITY COUNCIL / SUCCESSOR AGENCY
SUBMITTED BY: STEPHEN BISE, P.E., PUBLIC WORKS DIRECTOR PREPARED BY: DAVID GRANTHAM, P.E., CITY ENGINEER
GAR HUANG, ASSOCIATE CIVIL ENGINEER
SUBJECT: CONTRACT WITH ARDURRA GROUP, INC FOR WELL 7A EQUIPPING CONSTRUCTION INSPECTION AND LABOR COMPLIANCE MANAGEMENT SERVICES
SUMMARY
Award $433,372 consultant contract to Ardurra Group, Inc (Ardurra) for Construction Inspection and Labor Compliance Management Services for the Well 7A Equipping Project.
PROPOSED MOTION
Award $433,372 consultant contract to Ardurra Group, Inc. for Construction Inspection and Labor Compliance Management Services for the Well 7A Equipping Project under the existing on-call Professional Services Agreement.
Authorize Director of Administrative Services, or designee, to issue $433,372 project purchase order to Adurra Group, Inc.
Authorize Director of Public Works, or designee, to approve change orders and contract amendments for construction inspection and labor compliance management services, within the approved project budget.
ALTERNATIVE OPTIONS
Approve the Proposed Motion
Reject proposal from Ardurra and solicit new proposals
Other options brought by City Council.
STAFF RECOMMENDATION
Staff recommends the Proposed Motion.
CITY MANAGER REMARKS
The City Manager concurs with the staff recommendation.
PRIORITY POLICY STATEMENT
This item matches the following Priority Policy Statement:
Infrastructure and City Assets.
FISCAL IMPACT
The Fiscal Year 2024-25 Adopted Capital Improvement Program (CIP) Budget has sufficient funding in Project 53005 Well 7A Equipping within the Water Fund (Fund 44) and three grants. Staff intended fund the project with Water Funds. However, the City has received grants to help offset the project costs. The US Bureau of Reclamation awarded the City a $290,000 grant from the WaterSMART Drought Response Program. The California Department of Water Resources Santa Ana River Conservation and Conjunctive Use Program (SARCCUP) through the Orange County Water District awarded the City a $1,575,140 grant. Staff also expects to receive a $959,752 Community Grants Program grant earmarked by U.S. EPA Region 9 in early 2025.
Grant funding requires a 50 / 50 match with City funds, obligating the City to spend at least $2,824,892 local funds. The City would use Water Funds for the match.
Staff attached a Budget Data Sheet for reference (Attachment 1).
BACKGROUND AND DISCUSSION
The City water system relies on imported water and groundwater wells to supply residents and businesses. The City prefers to pump groundwater which costs approximately the cost of imported water and helps reduce reliance on imported water.
The Well 7A Project is a new, deep water well to replace the old Well 7 taken offline in April 2014 due to poor water quality and production. Well 7A Construction haso two phases:
Phase 1: Well 7 Abandonment and Well 7A Drilling
Phase 2: Well 7A Equipping
The City completed Phase 1, which included successful drilling of the new 1,400 feet deep well, in early 2022. Staff initiated Phase 2 engineering design services (plans, specifications and estimates) for equipping the new Well 7A. The design includes a structural foundation and sound enclosure and equips the new well with a vertical turbine pump, motor, associated valves, piping, electrical and instrumentation. Well 7A will have a variable frequency drive for operational flexibility and a portable generator connection for emergency preparedness. The groundwater pumped from Well 7A will connect to the new PFAS Water Treatment Plant which began operations in May 2024.
City Council awarded the Phase 2 construction contract on June 18, 2024. However, construction requires a construction inspection and labor enforcement management services contract to support City staff due to the unique nature of construction which requires special expertise in the construction of water pumping mechanical equipment. Staff also requires experienced professional contract labor compliance management services to ensure the project meets labor rules and not jeopardize the project federal grant funding.
Staff recommends utilizing a water engineering consultant fore these services. Staff issued a Request for Proposal (RFP) for the Construction Inspection and Labor Compliance Management Services for the Well 7A Equipping Project on October 24, 2024. Staff sent the RFP to four firms from the City’s consulting engineers on call list: Ardurra, Psomas, Stantec Consulting Services, Inc and Tetra Tech, Inc. All but Ardurra declined to submit a proposal, generally citing a lack of available resources with the experience needed for this type of specialized construction.
Staff reviewed the Ardurra proposal and then met with the proposed project team to clarify scope of work and staff qualifications. Ardurra submitted a revised proposal following that meeting identifying specific personnel and their unique qualifications. The proposed fee uses the agreed upon hourly rates as stipulated in the current on-call contract with Ardurra, with a not to exceed $433,372 fee based on anticipated 160-working-days construction duration.
The Phase 2 contractor will procure the critical and specialized equipment for the project. Staff does not expect construction to begin until at least Spring 2025 due to supply chain impacts which can delay equipment delivery by eight to ten months. The City will issue a Notice to Proceed (NTP) upon equipment delivery to both the Contractor and Ardurra to start field construction activities. Staff expects work to take 160 working days.
Staff previously prepared an environmental assessment in accordance with the California Environmental Quality Act (CEQA) guidelines and determined that the project is categorically exempt.
Attachments:
Attachment 1 – Budget Data Sheet
Attachment 2 – Request for Proposal
Attachment 3 – Proposal and Fee Schedule
Attachment 4 – Project Location Map
cc: City Manager Eric J. Levitt
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