FROM: Robert Thompson, General Manager
Originator: Mike Dorman, Director of Engineering
SUBJECT:
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HEADQUARTERS COMPLEX AT PLANT NO. 1, PROJECT NO. P1-128A
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GENERAL MANAGER'S RECOMMENDATION
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RECOMMENDATION: Recommend to the Board of Directors to:
Approve a contingency increase of $98,000 (2%) to the Professional Construction Services Agreement with HDR Engineering, Inc. for Headquarters Complex at Plant No. 1, Project No. P1-128A, for a total contingency of $588,000 (12%) and a total amount not to exceed $5,488,000.
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BACKGROUND
Orange County Sanitation District (OC San) is constructing a new Headquarters Complex under Project No. P1-128A. The new Headquarters Complex will house administrative, technical, and engineering staff. Construction started in July 2021 and is scheduled for completion in early 2024. HDR Engineering, Inc. is currently under contract to provide professional construction services for the new Headquarters Complex.
RELEVANT STANDARDS
• Ensure the public’s money is wisely spent
• Provide a safe and collegial workspace
PROBLEM
The level of effort needed to provide adequate construction support services is expected to exceed the assumptions the Professional Construction Services Agreement was based on.
PROPOSED SOLUTION
Approve a contingency increase to the Professional Construction Services Agreement. The existing project budget is sufficient to cover the requested increase in contingency therefore no increase to the project budget is required.
TIMING CONCERNS
The construction schedule must be maintained, or staff occupation of the new building will be delayed.
RAMIFICATIONS OF NOT TAKING ACTION
The Professional Construction Services Agreement “not to exceed” fee will not be sufficient to appropriately provide the remaining professional construction service.
PRIOR COMMITTEE/BOARD ACTIONS
May 2021 - Approved a Professional Construction Services Agreement with HDR Engineering, Inc. to provide construction support services for Headquarters Complex at Plant No. 1, Contract No. P1-128A, for an amount not to exceed $4,900,000; and approved a contingency of $490,000 (10%).
ADDITIONAL INFORMATION
The level of effort assumed in the Professional Construction Services Agreement included assumptions such as the number of resubmittals, requests for information, and design changes due to unexpected field conditions. These assumptions were based on the best available information and experience with past projects. The level of effort to complete the job, however, is projected to exceed what was anticipated due to more submittals than anticipated and the rework of the fixture, furniture, and equipment procurement with another dealer.
CEQA
The Headquarters Complex project is included in the Addendum to the City of Fountain Valley “Fountain Valley Crossings Specific Plan” Program Environmental Impact Report, State Clearinghouse No. 2015101042.
FINANCIAL CONSIDERATIONS
This request complies with the authority levels of OC San’s Purchasing Ordinance. This item has been budgeted (Budget Update, Fiscal Year 2023-2024, Appendix A, Page 8, Headquarters Complex, Project No. P1-128) and the budget is sufficient for the recommended action.
ATTACHMENT
The following attachment(s) may be viewed on-line at the OC San website (www.ocsan.gov) with the complete agenda package:
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