Agenda Item
City Council
Item #: 6.3. 7/11/2023 File #: 23-0397
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Christopher Cash, Public Works Director
1. SUBJECT
Award of Contract to Environmental Construction, Inc. for Well No. 28 Equipping Project, Bid No. 22-
23.33; increase to the capital improvement project budget; and finding of CEQA exemption.
2. SUMMARY
Four bids for Well No. 28 Equipping Project were received and opened on June 1, 2023. The apparent low bidder is Environmental Construction, Inc. of Woodland Hills, CA for $7,812,161.50.
After consideration of funding provided by reimbursement grants, an additional appropriation of $1.27 million will be made for this capital improvement project.
3. RECOMMENDED ACTION
1. Authorize the appropriation of $1,270,000 to expenditure account number 550.8011.56411.18120, Reimbursable Capital Projects - Well 28 Construction.
2. Approve contract with Environmental Construction, Inc. in the total amount of $8,593,377.65, representing an original amount of $7,812,161.50 plus a 10% contingency of $781,216.15, for Well 28 Equipping Project; and authorize the Mayor and City Clerk to execute on behalf of the City.
4. FISCAL IMPACT
The total expenditure for this contract is $8,593,377.65 and will be funded in Well 28 Construction (18120) through:
Water Fund (600) $3,723,377.65
Reimbursable Capital Projects (550) 4,870,000.00
Total: $8,593,377.65
5. STRATEGIC PLAN GOALS
Goal 1: Provide for a safe community
b: Provide and maintain infrastructure necessary to ensure the safety of the public.
Goal 4: Provide outstanding public service
b: Provide facilities and services to meet customer expectations.
City of Orange Printed on 7/6/2023Page 1 of 3
powered by Legistar™
Item #: 6.3. 7/11/2023 File #: 23-0397
6. DISCUSSION AND BACKGROUND
Well 28 is located at 225 W. Maple Street, in the Old Towne area of the City of Orange. This project is being built in two construction phases. Phase One, which included drilling of the well, was successfully completed in March 2022. Phase Two, for which we are requesting approval of the contract agreement, encompasses equipping of the well with the necessary pumping and water treatment equipment and construction of a public pocket park that will surround the perimeter of the facility.
The scope of work for well equipping includes minor well rehabilitation, construction of electrical and chemical buildings, installation of a new well pump, motor, electrical transformer and panels, a sound enclosure, PFAS treatment system, piping, and other appurtenances. The pocket public park construction will include construction of CMU block screen walls with decorative metal trellis matching the surrounding existing architectural scheme, monument sign, picnic tables, shade structures, landscaping, irrigation, and lighting.
The engineering estimate for the project construction cost is $7,200,000. The Well 28 project is eligible to receive reimbursement funding as part of the Santa Ana River Conservation and Conjunctive Use Program (SARCCUP) as well as the PFAS Treatment program initiated by the Orange County Water District (OCWD). SARCCUP is a watershed-scale collaborative program designed to improve the Santa Ana River watershed’s water supply resiliency and reliability by increasing available dry-year yield from local groundwater basins.
The SARCCUP program will underwrite a portion of the construction costs up to $1.57 million; and reimbursement for PFAS Treatment design and installation is 100% of the actual design and construction costs, or an estimated cost of $3.3 million, for a total of $4.87 million in grant funding.
The City will request the SARCCUP and PFAS Treatment installation cost reimbursement once construction is completed (May 2025).
Since the current appropriated reimbursable grant funded amount available for this project is $3.6 million, staff is requesting an appropriation of $1.27 million to represent the grant total in the Reimbursable Projects Fund (550).
The City Council previously approved the advertisement for bids on March 14, 2023. The bid solicitation was advertised on April 26, 2023, for a period of four weeks, and bids were opened on June 1, 2023. Four bids were received as follows:
1. Environmental Construction, Inc., Woodland Hills $7,812,161.50
2. SWC Contractor Corporation, Fallbrook $8,443,035
3. Metro Builders & Engineers Group, Newport Beach $8,667,278
4. Caliaqua, Inc., Anaheim $9,144,250
The apparent low bidder, Environmental Construction, Inc. (ECI) of Woodland Hills, CA, has submitted a request to withdraw their bid due to a clerical error. Upon reviewing ECI’s backup documentation and discussion with the City Attorney’sOffice, it was determined that there was not sufficient evidence of a clerical error in filling out the bid. Therefore, ECI’srequest to withdraw its bid was rejected. Reference checks were conducted with other agencies including Metropolitan Water District of Southern California, City of Huntington Beach, City of Los Angeles, and Eastern Municipal Water District. All agencies contacted provided positive feedback and good reviews on the performance of ECI. Therefore, staff recommends that ECI be awarded the contract in the total City of Orange Printed on 7/6/2023Page 2 of 3
powered by Legistar™
Item #: 6.3. 7/11/2023 File #: 23-0397
performance of ECI. Therefore, staff recommends that ECI be awarded the contract in the total amount of $8,593,377.65, representing an original amount of $7,812,161.50, plus a 10% contingency of $781,216.15, for the Well No. 28 Equipping Project. Construction is scheduled to begin in August 2023 and expected to be completed by May 2025.
7. ENVIRONMENTAL REVIEW
In 2021, the City Council adopted the project’sMitigated Negative Declaration No. 1861-18, which was prepared to evaluate the physical environmental impacts of the project in conformance with the provisions of the California Environmental Quality Act (CEQA) per State CEQA Guidelines Section 15070 and in conformance with the Local CEQA Guidelines. The Mitigated Negative Declaration (MND) finds that the project will have less than significant impacts to the environment, with the implementation of standard conditions and mitigation measures related to unanticipated archeological, human remains, paleontological, or tribal cultural resource finds.
8. ATTACHMENTS
· Location Map
· Bid Abstract
· Contract with ECI
· PFAS Treatment Facilities and Program Agreement
· SARCCUP Agreement
City of Orange Printed on 7/6/2023Page 3 of 3
powered by Legistar™