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Home My WebLink About20A - AA AWARD CONTRACT ARNAZ ENGINEERING STORM DAMAGEREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: OCTOBER 17, 2017 TITLE: APPROVE APPROPRIATION ADJUSTMENTS AND AWARD CONTRACT TO ARNAZ ENGINEERING CONTRACTORS, INC. FOR EMERGENCY REPAIRS RELATED TO JANUARY 2017 STORM DAMAGE (PROJECT 17-6613) (STRATEGIC PLAN NO. 6, 1C) -CITYPANAGER RECOMMENDED ACTION CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 151 Reading ❑ Ordinance on 2ntl Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER 1. Authorize the City Manager and Clerk of the Council to award and execute a construction contract to Arnaz Engineering Contractors, Inc., for emergency construction to repair storm damage at the Lincoln Avenue Channel, to be performed on a time -and -materials basis, in the total amount not to exceed $431,250, subject to nonsubstantive changes approved by the City Manager and the City Attorney. Approve the Project Cost Analysis for a total estimated construction delivery cost of $540,000, which includes the contract amount, administration, inspection, testing, and an authorized contingency of $44,025. Approve an appropriation adjustment appropriating $460,000 from prior year fund balance in the Local Drainage Area II revenue account, and appropriating the same amount into the Local Drainage Area II expenditure account. 4. Approve an appropriation adjustment appropriating $80,000 from prior year fund balance in the Local Drainage Area V revenue account, and appropriating the same amount into the Local Drainage Area V expenditure account. DISCUSSION Between January 18 and January 23, 2017, the City of Santa Ana, along with many other communities throughout California, experienced a period of heavy rainfall and flooding when a significant system of rainstorms passed over the state. In the course of these storms, the City suffered several emergency events, including damage to two stormwater drainage facilities and several fallen street trees. Along the Lincoln Avenue Channel (located within Local Drainage 20A-1 Award Contract to Arnaz Engineering Contractors, Inc., for Emergency Repairs to Lincoln Avenue Channel October 17, 2017 Page 2 Areas II and V), portions of the channel the safety wall were heavily damaged. Fallen debris was removed, temporary shoring was installed along the channel to prevent further collapse, and temporary fencing was installed to maintain safety and separation from neighboring properties. Since the Governor's proclamation of a state of emergency for the January 2017 storm system and subsequent Presidential declaration of a major disaster (FEMA -4305 -DR -CA), City staff has been working with Federal Emergency Management Agency (FEMA) and the California Office of Emergency Services (Cal OES) to identify and quantify the losses suffered during this disaster, along with establishing procedures to receive reimbursement for these costs. Staff expects to receive up to $1 million for all storm -related expenses. Cal OES acknowledged approval of the City's Request for Public Assistance in a letter dated July 17, 2017. Upon obligation of federal and state funds, the City will be notified by Cal OES via Grant Obligation Notification Letters describing the remaining funding processes. In the meantime, staff recommends proceeding with the emergency construction work at the Lincoln Avenue Channel (Exhibit 1), which must be completed before another rain event occurs. The work consists of reconstructing the damaged channel and safety wall, as well as strengthening the channel with structural upgrades. City Council previously authorized the Contractor, Arnaz Engineering Contractors, Inc., to perform emergency repairs to stabilize conditions at both channel locations. Since then, the temporary shoring at the Lincoln Avenue Channel continues to be maintained by the Contractor and the City continues to incur a rental fee for the temporary shoring of approximately $10,000 a month. Staff is recommending that a contract be awarded to Arnaz Engineering Contractors, Inc. (Exhibit 2), per Section 2-807 of the Santa Ana Municipal Code, which dispenses with the formalities of competitive bidding. Moving forward with this emergency work will prevent similar damage of this nature in the future and eliminate the ongoing, monthly rental fees. On May 2, 2017, City Council approved an appropriation adjustment recognizing up to approximately $431,250 in state and federal Disaster Recovery Public Assistance into the Public Works state and federal grant fund revenue accounts (12217002-52025 and 12217002-52001, respectively). However, in light of the potential $1 million distribution, this appropriation was premature. Upon receipt of the FEMA/Cal OES Obligation Letter confirming fund distribution, an updated appropriation adjustment reflecting the actual funding will be presented to Council for approval. That appropriation adjustment will also include the required 6.25% City Match that will be provided from the City's Liability Fund. TIME -AND -MATERIAL PRICING Repair costs will be limited to time -and -material pricing, which is based on industry standard materials pricing and actual man-hours worked at standard prevailing wage rates. Time -and - material contracting is industry accepted, is considered a neutral method by agencies/owners and construction contractors, and is typical of emergency contract work. The contractor is aware of and shall adhere to the City's Community Workforce Agreement for the use of labor. Staff is prepared to take detailed inspection notes and accounting of materials and labor consumed to 20A-2 Award Contract to Arnaz Engineering Contractors, Inc., for Emergency Repairs to Lincoln Avenue Channel October 17, 2017 Page 3 monitor progress and billing. Nonetheless, staff will negotiate certain work phases to cap or reduce cost wherever possible. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #6 — Community Facilities & Infrastructure, Objective #1 (establish and maintain a Community Investment Plan for all City assets), Strategy C (invest resources to extend the service life of existing infrastructure to protect the City's investment and support a high quality of life standard. ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT As indicated in the Cost Analysis (Exhibit 3), the estimated total construction delivery cost of the Lincoln Avenue Channel project is $540,000, which includes construction, contract administration, inspection, testing, and a contingency of $44,025. To proceed immediately with the emergency work, staff has identified the following funding sources for the project: Account Number IAccount Description Amount 22217660-66220 Local Drainage Area II Fund $460,000 22517660-66220 Local Drainage Area V Fund $80,000 TOTAL REPAIR COSTS: $540,000 Upon approval of the recommended appropriation adjustments, $460,000 of prior year fund balance will be recognized into the Local Drainage Area II revenue account (No. 22217002- 50001) and appropriated into the Local Drainage Area II expenditure account (No. 22217660- 66220); and $80,000 of prior year fund balance will be recognized into the Local Drainage Area V revenue account (No. 22517002-50001) and appropriated into the Local Drainage V expenditure account (No. 22517660-66220). All funds will be available for expenditure in Fiscal Year 2017- 18. When the FEMA/Cal OES Obligation Letter confirming reimbursements to the Local Drainage Area funds will be made appropriation adjustment approved by Council on May 2, 2017, fund distribution is received, in accordance with the $431,250 as follows: Account Number IAccount Description Amount 12217002-52001 1 FEMA Disaster Assistance Fund $345,000 12217002-52025 Cal OES Disaster Assistance Fund $86,250 TOTAL REPAIR COSTS: $431,250 20A-3 Award Contract to Arnaz Engineering Contractors, Inc., for Emergency Repairs to Lincoln Avenue Channel October 17, 2017 Page 4 Any additional FEMA/Cal OES disbursements for the balance of this project and for other pending disaster -related projects, along with the prescribed 6.25 percent City Match from the City's Liability Fund, will be brought back to Council for further appropriation. �reo Mousavipour Executive Director Public Works Agency E and Raya Executive Director Personnel Services Agency FM/EWG/TC FUNDS AND ACCOUNTS: Finance & Management Services Agency Exhibits: 1. Location Map of the Lincoln Avenue Channel 2. Construction Contract 3. Cost Analysis 20A-4 —J Beechwood St --z ri Beechwood St ! i E Sania Clara�live_=_ __ > c, Q - E Buffalo Ave I Clara Ave 250 feet n EXHIBIT 1 I N SANTA ANA TITLE: a CITY COUNCILPW AGENDA DATE LINCOLN AVENUE CHANNELOctober 17. 2017 PublicNbrksAgency 20A-5 D _ Ir `Ave .. � .i ce• i7 r, < �. 0�� it Joana Dr �> loas�a Dr d _ --__ PROJECT ;o ,, LOCATION -_ !L , , -Cherry St Q ChernySl ; Beechivo66 St In —J Beechwood St --z ri Beechwood St ! i E Sania Clara�live_=_ __ > c, Q - E Buffalo Ave I Clara Ave 250 feet n EXHIBIT 1 I N SANTA ANA TITLE: a CITY COUNCILPW AGENDA DATE LINCOLN AVENUE CHANNELOctober 17. 2017 PublicNbrksAgency 20A-5 20A-6 EXHIBIT 2 CITY OF SANTA ANA CONSTRUCTION CONTRACT PROJECT NO. 17-6613 EMERGENCY CONSTRUCTION This CONSTRUCTION CONTRACT is made and entered into this 17th day of October, 2017 by and between the City of Santa Ana, California, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California (hereinafter "CITY"), and Amaz Engineering Contractors, hie. (hereinafter "CONTRACTOR'). WITNESSETH: The CITY and the CONTRACTOR, for the consideration hereinafter named, mutually agree as follows: 1. CONTRACTOR agrees to perform all the work and furnish all the materials at its own cost and expense necessary to construct and complete in a good and workmanlike manner and to the satisfaction of the City Engineer of the CITY, the Emergency Repairs Related to January 2017 Storm Damage Project (hereinafter referred to as the "WORK OF IMPROVEMENT") identified in and in accordance with the Contract Documents prepared by the City's Public Works Agency and approved by the City Council. 2. The complete Construction Contract consists of the "Contract Documents" as defined by the Standard Specifications for Public Works Construction and which include the following: • Bid Proposal • Bid Bond • Contract Form • Contract Bonds • General Provisions • Special Provisions • Technical Provisions and Project Plans • Community Workforce Agreement In case of conflict between the Contract Documents, the precedence of documents shall be as established in the Standard Specifications for Public Works Construction. 3. CITY agrees to pay and CONTRACTOR agrees to accept in full payment to complete the WORK OF hVIPROVEMENT the sum total amount not to exceed Four Hundred Thirty -One Thousand Two Hundred Fifty Dollars ($431,250), as set forth and identified in the BID PROPOSAL, which is attached hereto and incorporated herein as Exhibit "A." The BID PROPOSAL contains a schedule of unit price(s) or lump sum(s) based on approximate quantities only, and the City does not expressly or by implication agree that the actual amount of work will correspond therewith, but reserves the right to increase or decrease the amount of any class or portion of the work or to omit portions of the work as may be deemed necessary or advisable. rev. 09/01/2017 20A-7 _7 Page 1 of 4. CONTRACTOR agrees to complete the WORK OF IMPROVEMENT within the time specified in the Time for Completion of Improvements section of the BID PROPOSAL (Exhibit "A") including commencing construction within the timeframe therein specified after issuance of a Notice to Proceed. 5. The CONTRACTOR will pay, and will require all subcontractors to pay, all employees on the WORK OF IMPROVEMENT a salary or wage at least equal to the prevailing salary or wage established for such work as set forth in the wage determinations for this work in accordance with applicable State and Federal law. 6. If applicable, the CONTRACTOR shall adhere to the CITY'S Community Workforce Agreement (CWA), a pre -hire collective bargaining agreement, which establishes the labor relations policies and procedures for CONTRACTOR to follow in the crafts persons employed to complete the WORK OF IMPROVEMENT as more fully described in the CWA. The CWA may be found on the City's website at: http:Hsanta-ana/nwa/documents/LosAngelesOranQeCountiesBuildin¢ ConstructionTradescouncil.ndf 7. CONTRACTOR shall, after award of this Contract, furnish two bonds to be approved by the CITY, one in the amount of One Hundred Percent (100%) of the Contract price, to guarantee the faithful performance of the work (Performance Bond), and one in the amount of One Hundred Percent (100%) of the Contract price to guarantee payment of all claims for labor and materials furnished (Payment Bond). This Contract shall not become effective until such bonds are supplied to and approved by the CITY. 8. CONTRACTOR shall, prior to the release of the performance and payment bonds or the retention payment, furnish a warranty performance and payment bond (Warranty Bond). Said Warranty Bond shall also be required as a condition of project acceptance. For projects up to Five Hundred Thousand Dollars ($500,000), the Warranty Bond amount shall be the greater of Ten Thousand Dollars ($10,000) or Twenty Percent (20%) of the final contract price. For projects above Five Hundred Thousand Dollars ($500,000), the Warranty Bond amount shall be the greater of One Hundred Thousand Dollars ($100,000) or Ten Percent (10%) of the final contract price. 9. CONTRACTOR shall, after award of this Contract, furnish Certificates of Liability Insurance and Worker's Compensation Insurance as outlined in the General Provisions, to be approved by the CITY. H 20A-8 0A_Q Page 2 of 3 IN WITNESS WHEREOF, the parties hereto have executed this Construction Contract on the day and year first above written. ATTEST: MARIA D. HUIZAR Clerk of the Council APPROVED AS TO FORM: SONIA R. CARVALHO City Attorney By: /w >/ JORN FUNK Assistant City Attorney RECOMMENDED FOR APPROVAL: FRED MOUSAVIPOUR Executive Director Public Works Agency CITY OF SANTA ANA CYNTHIA KURTZ Interim City Manager CONTRACTOR: Arnaz Engineering Contractors, Inc. ALIYAZDANSHENAS President 20A-9 Page 3 of 3 CITY OF SANTA ANA CONSTRUCTION CONTRACT PROJECT NO. 17-6613 EMERGENCY CONSTRUCTION EXHIBIT A PROPOSAL SCOPE OF SERVICES AND COMPENSATION SCHEDULE SHALL BE BASED ON A TIME AND MATERIAL FORCE ACCOUNT BASIS AS SPECIFIED IN THE STANDARD SPECIFICATIONS FOR PUBLIC WORKS CONSTRUCTION. The urgent repairs shall be completed by performing the work on a design -build basis limited to time and material pricing, using acceptable methods and equipment approved by the City. Costs shall be calculated based on actual costs and quantities of materials used by the contractor at standard materials pricing, and actual man-hours worked at standard prevailing wage rates. Staff shall verify and confirm accounting of materials and labor consumed to monitor progress and billing. THE WORK SHALL TAKE PLACE AT THE FOLLOWING LOCATIONS: 1) Emergency Protective Measures at Lincoln Avenue Channel includes concrete debris removal, temporary shoring installation, removal, and rental fees. The cost is not expected to exceed $60,000. 2) Emergency Construction at Lincoln Avenue Channel includes demolition and reconstruction of channel and wall. The cost is not expected to exceed $371,250. 20A-10 COST ANALYSIS CONSTRUCTION OF PROJECT NO. 17-6613: Emergency Construction Construction Contract $ 431,250.00 Contract Administration $ 33,625.00 Inspection and Testing $ 31,100.00 Contingencies $ 44,025.00 TOTAL ESTIMATED CONSTRUCTION COSTS $ 540,000.00 EXHIBIT 3 20A-11 20A-12