On December 15, 2020, the Board of Supervisors approved the Leinberger Replacement Project ("Project"), conditioned on approval of grant funding for the Project, and adopted Resolution No. 20-139, which affirmed the County's cash match for the Project as required to obtain SB 863 funding (Adult Local Criminal Justice Facilities Financing Program) from the Board of State and Community Corrections ("BSCC"). On December 15, 2020, the Board also approved the Project construction budget of $21,763,500 and allowed the Director of General Services to execute a construction contract with Broward Builders, Inc., in the amount of $19,785,000 with authority to approve change orders up to the budgeted amount of $21,763,500.
Since December 15, 2020, the Project has experienced significant delays. The onset of the COVID-19 pandemic and delays in obtaining approval of a ground lease amendment from the State of California necessary to move forward with the Project caused significant delays in the overall Project schedule. All proper documentation was sent to the State of California in September 2019; however, the County did not receive approval until December 2020. As a result of the delayed ground lease approval, the Office of the State Fire Marshall ("OSFM") required the previously approved Project construction plans to be updated from the 2016 building codes to the 2019 building codes and the permit expired 30 days before the Project was scheduled to start. These additional initial delays caused by the OSFM required changes triggered other cost increases related to supply chain and escalation in material and labor costs.
Due to these cost increases, staff if requesting approval of amendments to two work authorizations and an increase in the construction contract change-order authority as follows: (1) approval of a THIRD amendment to the work authorization under Agreement No. 17-99 with Kitchell to increase the maximum compensation by $239,000 to a new maximum amount of $1,584,880 for Project construction management services (Attachment A); (2) approval of a THIRD amendment to the work authorization under Agreement No.14-207 with Lionakis to increase the maximum compensation by $100,000 to a new maximum amount of $3,542,975 for additional Project architectural consulting services (Attachment B); and (3) approve an increase in the Director of General Service's change order authority by an additional $2,070,000 for a total amount not to exceed $23,833,500, inclusive of all change orders, for the Broward Builders construction agreement.
The additional cost for the construction work described above exceeds the statutory contract change order limits for Public Contract Code section 20137. Changes exceeding the Public Contract Code section 20137 limit would ordinarily require competitive bidding. However, under Graydon v. Pasadena Redevelopment Agency (1980) 104.Cal.App.3d 631, competitive bidding is not required where such bidding would be unavailing and impractical, and would not produce any public advantage. For the following reasons, competitive bidding (Pursuant to Public Contract Code section 20137) for the extra work in this case would not have produced any public advantage, and it is in both the best interest of the County and the public to work with the existing contractor on the Project rather than competitively bidding these Project changes:
- Each of the items of the contract change order work is functionally integrated with the overall Project. Broward Builders is already mobilized and onsite doing the Project construction. It wouldn’t be practical to have a different contractor perform the change order work items because they are integrated with the overall infrastructure being installed and further delaying the Project to advertise and competitively bid the remaining items for the Project at this juncture would only further delay completion of the Project at additional expense.
A budget resolution is also provided as Attachment C. The proposed resolution will approve acceptance of additional grant award funds from BSCC in the amount of $3,850,000 and increase the fiscal year 2021-22 budget for the Project by $3,850,000 for a new not to exceed construction budget of $25,613,500, which includes the increases in the Broward Builders construction change orders as well as additional construction-related costs, such as furniture and consulting services. The budget resolution requires a 4/5 vote.
The overall updated Project budget summary is below.
Yolo County SB 863 Jail Construction Project (County)
Budget Summary Table
| LINE ITEM |
STATE REIMBURSED |
CASH MATCH |
IN-KIND MATCH |
TOTAL |
| Construction |
$25,613,500 |
|
|
$25,613,500 |
| Additional Eligible |
$1,799,550 |
$171,000 |
|
$1,970,550 |
| Architectural |
$1,214,450 |
$2,242,000 |
|
$3,456,450 |
| Project Construction Management |
$1,290,600 |
$294,280 |
|
$1,584,880 |
| CEQA |
|
$38,900 |
|
$38,900 |
| State Agency Fees** |
$0 |
$182,000 |
|
$182,000 |
| Audit |
|
$0 |
$12,000 |
$12,000 |
| Needs Assessment |
|
$65,000 |
$0 |
$65,000 |
| Transition Planning |
|
$0 |
$110,800 |
$110,800 |
| County Administration |
|
|
$278,400 |
$278,400 |
| Land Value |
|
|
$0 |
$0 |
| TOTAL PROJECT COSTS |
$29,918,100 |
$2,993,180 |
$401,200 |
$33,312,480 |
| PERCENT OF TOTAL |
89.81% |
8.99% |
1.20% |
100.00% |
| |
$30,500,000 |
10.19% |
|
|
| |
$581,900 |
$3,394,380 |
|
|
|