Public Works Agency
www.santa-ana.org/public-works
Item # 14
City of Santa Ana
20 Civic Center Plaza, Santa Ana, CA 92701
Staff Report
January 16, 2024
TOPIC: Santa Ana Zoo Giant River Otter and Primate Trails
AGENDA TITLE
Approve a Takeover Agreement with Great American Insurance Group to Take Over the Santa Ana Zoo Giant River Otter and Primate Trails Project and Approve an Amendment to the Agreement with CLR Design to Increase the Construction Administration Services Amount by $75,000 for a New Estimated Total Services Cost of $193,000 (Project No. 16-2658) (Non-General Fund)
RECOMMENDED ACTION
1. Authorize the City Manager to execute a takeover agreement with Great American Insurance Group subject to change orders (not to exceed 25% of the base bid amount) in accordance with the Greenbook: Standard Specifications for Public Works construction, to take over the Santa Ana Zoo Giant River Otter and Primate Trails Project and be responsible for the completion of all work in accordance with the contract (Agreement No. A-2024-XXX).
2. Authorize the City Manager to execute a first amendment to the agreement with CLR Design Inc. for construction support services for the Santa Ana Zoo Giant River Otter and Primate Trails Project, to increase the amount by $75,000, for a total agreement amount of $193,000 (Agreement No. A-2024-XXX).
GOVERNMENT CODE §84308 APPLIES: Yes
DISCUSSION
On November 2, 2021, the City Council awarded a contract to HYM Engineering (Exhibit 1), the lowest responsible bidder, in accordance with the base bid in the amount of $5,289,238, for construction of the Santa Ana Zoo Giant River Otter and Primate Trails Exhibit, which is located in the heart of the Santa Ana Zoo. (Exhibit 2).
On April 20, 2021, the City Council awarded an agreement with CLR Design, Inc. for Bidding and Construction Administration. This agreement was then extended on April 3, 2023 (Exhibit 3). HYM Engineering (Contractor) met all inspection and testing requirements to complete approximately 60% of the contract scope of work but due to issues unrelated to the project, the Contractor defaulted on the contract. In compliance with the Greenbook: Standard Specification for Public Works Construction, staff began
Santa Ana Zoo Giant River Otter and Primate Trails
January 16, 2024
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the process of terminating the contract for Default. In June 2023, staff terminated the contract with HYM Engineering and negotiated with Great American Insurance Group to take over the project as required by the Performance and Payment Bonds (Exhibit 4).
Because of this takeover agreement, staff recommends to amend the existing agreement with CLR Design Inc. for construction administration to increase the agreement capacity to provide services throughout the life of the new project timeline and extend the agreement term until April 2025 (Exhibit 5).
ENVIRONMENTAL IMPACT
In accordance with the California Environmental Quality Act, the recommended actions are exempt from further review.
FISCAL IMPACT
There is no fiscal impact associated with this action. The originally approved project cost analysis will not change and the surety will be responsible for expenses related to the transition and cost escalation of labor and materials.
EXHIBIT(S)
1. HYM Staff Report
2. Location Map
3. CLR Agreement & Extension
4. Great American Insurance Group Takeover Agreement
5. CLR Amendment Agreement
Submitted By: Nabil Saba, P.E., Executive Director – Public Works Agency Approved By: Tom Hatch, Interim City Manager