In March 2023, the City Council approved a Cooperative Agreement with Caltrans. The purpose of the Cooperative Agreement provides for installation of fencing, decorative paving and gravel on unpaved slopes and narrow areas within the City and along certain underpasses of Freeway 22 from Springdale Street to Garden Grove Boulevard (the “Project”) by the City. Through the Cooperative Agreement, the City would be reimbursed by the State in an amount not to exceed $600,000 (on a reimbursement basis) to implement the Project. 

In September 2023, an Invitation to Bid was circulated soliciting contractor proposals to complete the Project. Due to the absence of a responsive bid proposals, staff initiated sole-source negotiations with reputable general construction contractors for the Project, namely: Joshua Grading & Excavating, Inc., Quality Fence Co., and Pacific Restoration Group, Inc.  One contractor (Quality Fence Co.) responded with a bid of $789,888, which exceeded the $600,000 reimbursement amount specified in the Cooperative Agreement.

The proposed Amendment to the Cooperative Agreement would increase the reimbursement amount for an additional $400,000. This brings the total amount of the Cooperative Agreement from $600,000 to $1,000,000 including contingency items. Due diligence has been performed with the preferred contractor. Quality Fence Co. brings over 15 years of experience in governmental projects specializing in fabricating, manufacturing, and installing fences. With full bonding and insurance, Quality Fence Co. meets all Caltrans’ requirements and received commendations from their references. 

It is recommended that City Council approve the Amendment to the Cooperative Agreement, and authorize the City manager to amend the Cooperative Agreement for the new amount of $1,000,000, and approve a construction contract with Quality Fence Co. in an amount not to exceed $789,888.

The construction cost for the Project is estimated to be $789,888.  Per Cooperative Agreement with Caltrans, 100% of the cost will be reimbursed by Caltrans.   Additional appropriation is requested to complete the Project, offset by anticipated revenue from Caltrans reimbursement. 

It is recommended that the City Council: 

• Authorize the City Manager to execute an Amendment to the Cooperative Agreement with Caltrans for increased funding from $600,000 to $1,000,000, including all necessary documents to effectuate such change, on behalf of the City;

• Authorize additional appropriation of $400,000 (GL: 242-711-1280-54006, JL: GT1366000) per the Cooperative Agreement with Caltrans;

• Award a contract to Quality Fence Co., in the amount of $789,888 for the Caltrans Fencing Improvement Project;

• Authorize the City Manager, or designee(s), to execute the Contract, and make minor modifications as appropriate and execute any documents necessary to effectuate the Contract, on behalf of the City.

By:    Christy Le, Homeless Liaison Analyst