File #: 2022-2663    Version: 1 Name:
Type: Non-Consent Status: Passed
File created: 11/30/2022 In control: BOARD OF DIRECTORS
On agenda: 12/15/2022 Final action: 12/15/2022
Title: NEWHOPE-PLACENTIA TRUNK SEWER REPLACEMENT, PROJECT NO. 2-72B & 2-72C
Sponsors: Kathy Millea
Attachments: 1. Agenda Report, 2. 11-22-2022 OHL USA, Inc. Claim
Related files: 2021-1583, 2021-1896, 2021-1639, 2021-1591, 2021-1855, 2020-1138
FROM: James D. Herberg, General Manager
Originator: Kathy Millea, Director of Engineering

SUBJECT:

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NEWHOPE-PLACENTIA TRUNK SEWER REPLACEMENT, PROJECT NO. 2-72B & 2-72C
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GENERAL MANAGER'S RECOMMENDATION

recommendation
RECOMMENDATION: Recommend to the Board of Directors to:

Receive, file, and deny the claim submitted by OHL USA, Inc. (OHL) dated November 22, 2022 for Newhope-Placentia Trunk Sewer Replacement, Project Nos. 2-72B and 2-72C.
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BACKGROUND

Orange County Sanitation District (OC San) awarded a Construction Contract to OHL for Newhope-Placentia Trunk Sewer Replacement, Project Nos. 2-72B and 2-72C, in May 2018. During construction, OHL submitted several change orders. While OC San accepted most of these, some were rejected. OHL has now submitted a claim based on the rejected change orders.

RELEVANT STANDARDS

* Ensure the public's money is wisely spent

PROBLEM

OHL has submitted a claim under the Government Code. The claim is without merit.

PROPOSED SOLUTION

Deny the claim submitted by OHL.

TIMING CONCERNS

Denial of a Government Code claim, and notice thereof, triggers the running of the statute of limitations.

RAMIFICATIONS OF NOT TAKING ACTION

The statute of limitations will be longer.

PRIOR COMMITTEE/BOARD ACTIONS

October 2021 - Approved a contingency increase $1,164,840 (2%) to the construction contract with OHL for Newhope-Placentia Trunk Sewer Replacement, Project Nos. 2 72B and 2-72C, for a total construction contingency of $6,989,040 (12%).

April 2021 - Approved a contingency increase of $2,038,470 (3.5%) to the construction contract with OHL for Newhope-Placentia Trunk Sewer Replacement, Project Nos. 2-72B and 2-72C, for a total construction contingency of $5,824,200 (10%).

May 2018 - Awarded a construction contract with OHL for Newhope-Placentia Trunk Sewer Replacement, Contract Nos. 2-72B & 2-72C, for a total amount not to exceed $58,242,000, and approved a contingency of $3,785,730 (6.50%).
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