ARNAZ ENGINEERING CONTRACTORS, INC. (2)

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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