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HomeMy WebLinkAbout2025-01-14; City Council; 07; Amendment No. 2 to the Professional Services Agreement with Carollo Engineers, Inc., to Extend the Agreement Term for the Carlsbad Boulevard Water and Sewer ImprovementsCA Review GH Meeting Date: Jan. 14, 2025 To: Mayor/President and City Council/Board Members From: Geoff Patnoe, City Manager/Executive Manager Staff Contacts: Dave Padilla, Utilities Assistant Director/District Engineer dave.padilla@carlsbadca.gov, 442-339-2356 Sean Diaz, Utilities Senior Engineer sean.diaz@carlsbadca.gov, 442-339-2350 Subject: Amendment No. 2 to the Professional Services Agreement with Carollo Engineers, Inc., to Extend the Agreement Term for the Carlsbad Boulevard Water and Sewer Improvements at Terramar Project District: 2 Recommended Actions 1.Adopt a Carlsbad Municipal Water District Board of Directors resolution authorizing execution of Amendment No. 2 to the professional services agreement with Carollo Engineers, Inc. to extend the agreement term for the Carlsbad Boulevard Water Improvements at Terramar Project. 2.Adopt a City Council resolution authorizing execution of Amendment No. 2 to the professional services agreement with Carollo Engineers, Inc. to extend the agreement term for the Carlsbad Boulevard Sewer Improvements at Terramar Project. Executive Summary The water and sewer mains along Carlsbad Boulevard north and south of Cannon Road and on Cannon Road from Carlsbad Boulevard to just east of the railroad tracks were installed between 1958 and 1971. These pipelines need to be replaced or rehabilitated to ensure the reliability of the water and wastewater systems, and compliance with current city and Carlsbad Municipal Water District, or CMWD, design and construction standards. The project will abandon or remove 7,600 feet of potable water distribution mains, construct 5,000 feet of new water mains and replace and/or rehabilitate 1,500 feet of sewer mains and access holes. The project is now in construction with an anticipated completion date of Oct. 14, 2025. The CMWD Board and the City Council approved a professional services agreement with Carollo Engineers, Inc. for engineering services to design the project on Jan. 18, 2022, through CMWD Board Resolution No. 1669 and City Council Resolution No. 2022-021, respectively. The term of the agreement now needs to be extended to provide the necessary services through the end of the project’s construction. The cost to the city will not change. Jan. 14, 2025 Item #7 Page 1 of 11 Staff request the CMWD Board and the City Council’s approvals of Amendment No. 2 to the agreement to extend the term for an additional year with an additional one-year extension if authorized by the Executive Manager and the City Manager. The CMWD Board and the City Council’s authorizations are required to amend an agreement to extend the term beyond the time extensions delegated to the Executive Manager and the City Manager in CMWD Board Resolution No. 1669 and City Council Resolution No. 2022-021, consistent with the requirements of the Carlsbad Municipal Code Section 3.28.040(D)(3). Explanation & Analysis The professional services agreement with Carollo Engineers, Inc. to provide engineering design services on the project was in an amount not to exceed $478,385. This previously approved not-to-exceed cost will remain unchanged. During the project’s design phase, the permitting efforts required by the coastal development permit process extended beyond the originally anticipated schedule. The City Manager and the Executive Manager had the delegated authority to extend the original agreement term for one additional year, based on Carlsbad Municipal Code Section 3.28.040(C)(8). The City Manager and the Executive Manager did so on Nov. 20, 2023, approving Amendment No. 1 to the agreement, which extended the term until Jan. 18, 2025. A notice to proceed with construction was issued to the construction contractor on Aug. 29, 2024, for a contract duration of 280 working days. The project’s anticipated contract completion date is Oct. 14, 2025. Extending the professional services agreement with Carollo Engineers by one year, to Jan. 18, 2026, will provide construction phase support engineering services until the project is completed with additional time in the event of any unanticipated construction delay. The Executive Manager and the City Manager would have the authority to amend the agreement to extend the agreement for one additional year if necessary. Fiscal Analysis The project is funded by Capital Improvement Program Project Nos. 5048 and 5503-20, and sufficient funds are available for the work. The cost of the design services is not to exceed $355,945 for the potable water improvements and $122,440, for the sewer improvements. Amendment No. 2 will not increase the total agreement amount of $478,385. The construction contract and all construction phase inspection and support services required for project completion have been set aside within the budget. Next Steps Execution of Amendment No. 2 will allow for completion of engineering construction phase services for the project. If authorized by the CMWD Board and the City Council, staff will continue to work with Carollo Engineers, Inc. to support completion of the project construction, which is anticipated to be on Oct. 14, 2025. Environmental Evaluation In accordance with the California Environmental Quality Act procedures and CEQA Guidelines Section 1508 through 15097, a program environmental impact report (State Clearinghouse No. Jan. 14, 2025 Item #7 Page 2 of 11 2012021006) was certified by the City Council on Nov. 13, 2012, for the Sewer and Water Master Plans. The master plans were updated in 2019 and 2022. On Sept. 20, 2023, the Planning Commission adopted Resolution No. 7493, to approve a third addendum to the program environmental impact report for the Sewer and Water Master Plan. Therefore, no further environmental analysis is required. Exhibits 1. Carlsbad Municipal Water District Board of Directors resolution 2. City Council resolution 3. Location map Jan. 14, 2025 Item #7 Page 3 of 11 RESOLUTION NO. 2025-006 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AUTHORIZING EXECUTION OF AMENDMENT NO. 2 TO THE PROFESSIONAL SERVICES AGREEMENT WITH CAROLLO ENGINEERS, INC. TO EXTEND THE AGREEMENT TERM FOR THE CARLSBAD BOULEVARD SEWER IMPROVEMENTS AT TERRAMAR PROJECT WHEREAS, on Jan. 18, 2022, the City Council adopted Resolution No. 2022-021, approving an Agreement with Carollo Engineers, Inc. to provide engineering design services for the Carlsbad Boulevard Sewer Improvements at Terramar Project, Capital Improvement Program Project No. 5503- 20, in an amount not to exceed $122,440; and WHEREAS, on Nov. 20, 2023, the City Manager approved Amendment No. 1, which extended the term of the Agreement for a period of one year ending on Jan . 18, 2025; and WHEREAS, the notice to proceed with construction was issued to the construction contractor on Aug. 29, 2024, for a contract duration of 280 working days, and the project is currently under construction with an anticipated construction contract completion date of Oct. 14, 2025; and WHEREAS, staff desire to extend the agreement term for one year, until Jan . 18, 2026, with an additional one-year extension if authorized to allow for completion of project construction, with the total not-to-exceed Agreement amount unchanged; and WHEREAS, the budget for the project is sufficiently funded for the scope of work and there are no additional costs related to this Agreement amendment; and WHEREAS, the execution of Amendment No. 2 is within the scope of the adopted environmental studies and no further environmental study is required to comply with the California Environmental Quality Act, under CEQA Guidelines Section 15162-15164. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as follows: 1. That the above recitations are true and correct. 2. That Amendment No. 2 to the Agreement with Carollo Engineers, Inc., for the project is approved (Attachment A to CMWD Resolution No. 1754). 3. That the Executive Manager is hereby delegated the authority to extend the term for one (1) additional one (1) year, on behalf of the City of Carlsbad. PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 14th day of January 2025, by the following vote, to wit: AYES: NAYS: ABSTAIN: ABSENT: BLACKBURN, BHAT-PATEL, ACOSTA, BURKHOLDER, SHIN. NONE. NONE. NONE. KEITH BLACKBURN, Mayor RESOLUTION NO. 1754 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE CARLSBAD MUNICIPAL WATER DISTRICT, AUTHORIZING EXECUTION OF AMENDMENT NO. 2 TO THE PROFESSIONAL SERVICES AGREEMENT WITH CAROLLO ENGINEERS, INC. TO EXTEND THE AGREEMENT TERM FOR THE CARLSBAD BOULEVARD WATER IMPROVEMENTS ATTERRAMAR PROJECT WHEREAS, on Jan. 18, 2022, the Carlsbad Municipal Water District, or CMWD, Board adopted Resolution No. 1669, approving an Agreement with Carollo Engineers, Inc. to provide engineering design services for the Carlsbad Boulevard Water Improvements at Terramar Project, Capital Improvement Program Project No. 5048, in an amount not to exceed $355,945; and WHEREAS, on Nov. 20, 2023, the Executive Manager approved Amendment No. 1, which extended the term ofthe Agreement for a period of one year ending on Jan. 18, 2025; and WHEREAS, the notice to proceed with construction was issued to the construction contractor on Aug. 29, 2024, for a contract duration of 280 working days, and the project is currently under construction with an anticipated construction contract completion date of Oct. 14, 2025; and WHEREAS, staff desire to extend the agreement term for one year, until Jan. 18, 2026, with an additional one-year extension if authorized to allow for completion of project construction, with the total not-to-exceed Agreement amount unchanged; and WHEREAS, the budget for the project is sufficiently funded for the scope of work and there are no additional costs related to this Agreement amendment; and WHEREAS, the execution of Amendment No. 2 is within the scope of the adopted environmental studies and no further environmental study is required to comply with the California Environmental Quality Act, under CEQA Guidelines Section 15162-15164. NOW, THEREFORE, BE IT RESOLVED by the Carlsbad Municipal Water District Board of Directors of the City of Carlsbad, California, as follows: 1. That the above recitations are true and correct. 2. That the President of the Board is hereby authorized and directed to execute Amendment No. 2 to the Agreement with Carollo Engineers, Inc. for the project (Attachment A). 3. That the Executive Manager is hereby authorized to amend the Agreement to extend the term for one (1) additional one (1) year period or parts thereof. PASSED, APPROVED AND ADOPTED at a Special Meeting of the Carlsbad Municipal Water District Board of Directors of the City of Carlsbad on the 14th day of January 2025, by the following vote, to wit: AYES: NAYS: ABSTAIN: ABSENT: BLACKBURN, BHAT-PATEL, ACOSTA, BURKHOLDER, SHIN. NONE. NONE. NONE. KEITH BLACKBURN, President Docusign Envelope ID: FF619391-7993-43B4-B50F-C9BA4F77EDD8 PSA22-1735UTIL AMENDMENT NO. 2 TO EXTEND THE AGREEMENT FOR CARLSBAD BOULEVARD WATER & SEWER IMPROVEMENT SERVICES AT TERRAMAR CAROLLO ENGINEERS, INC. This Amendment No. 2 is entered into and effective as of the / 4th day of 2025, extending the agreement dated January 19, 2022, (the "Agreement") by an ween the Carlsbad Municipal Water District, , a Public Agency organized under the Municipal Water Act of 1911, and a Subsidiary District of the City of Carlsbad, California ("CMWD"), and Carollo Engineers, Inc., a Delaware corporation ("Contractor") (collectively, the "Parties") for Engineering Design Services for Water & Sewer Improvements at Terra mar. RECITALS A. On November 20, 2023, the Parties executed Amendment No. 1 to the Agreement to extend the Agreement one (1) year; and B. The Parties desire to extend the Agreement for a period of one (1) year with the option to extend and fund the Agreement for one (1) more additional year and to the amend the indemnification obligation in the Agreement. NOW, THEREFORE, in consideration of these recitals and the mutual covenants contained herein, CMWD and Contractor agree as follows: 1. The Agreement, as may have been amended from time to time, is hereby extended for a period of one (1) year ending on January 18, 2026 . The Executive Manager may amend the Agreement to extend it for one (1) additional one (1) year period or parts thereof. 2. Section 10 "INDEMNIFICATION" of the original Agreement is hereby deleted in its entirety and replaced as follows: Contractor agrees to defend (with counsel approved by CMWD), indemnify, and hold harmless CMWD and the City of Carlsbad and its officers, elected and appointed officials, employees and volunteers from and against all claims, damages, losses and expenses including attorney's fees arising out of the performance of the work described herein caused by any negligence, recklessness, or willful misconduct of the Contractor, any subcontractor, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable. If Contractor's obligation to defend, indemnify, and/or hold harmless arises out of Contractor's performance as a "design professional" (as that term is defined under Civil Code section 2782 .8), then, and only to the extent required by Civil Code Section 2782.8, which is fully incorporated herein, Contractor's indemnification obligation shall be limited to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Contractor, and, upon Contractor obtaining a final adjudication by a court of competent jurisdiction. Contractor's liability for such claim, including the cost to defend, shall not exceed the Contractor's proportionate percentage of fault. The parties expressly agree that any payment, attorneys fee, costs or expense CMWD or the City of Carlsbad incurs or makes to or on behalf of an injured employee under CMWD's self-administered General Counsel Approved Version 5/22/2024 1 Docusign Envelope ID: FF619391-7993-43B4-B50F-C9BA4F77EDD8 PSA22-1735UTIL workers' compensation is included as a loss, expense or cost for the purposes of this section, and that this section will survive the expiration or early termination of this Agreement. 3. All other provisions of the Agreement, as may have been amended from time to time, shall remain in full force and effect. 4. All requisite insurance policies to be maintained by the Contractor pursuant to the Agreement, as may have been amended from time to time, shall include coverage for this Amendment. 5. The individuals executing this Amendment and the instruments referenced on behalf of Contractor each represent and warrant that they have the legal power, right and actual authority to bind Contractor to the terms and conditions hereof of this Amendment. [signatures on following page] General Counsel Approved Version 5/22/2024 2 Docusign Envelope ID: FF619391-7993-43B4-B50F-C9BA4F77EDD8 CONTRACTOR CAROLLO ENGINEERS, INC., a Delaware corporation By: (sign here) Jeffrey Weishaar, Associate Vice-President (print name/title) By: (sign here) (print name/title) PSA22-1735UTIL CARLSBAD MUNICIPAL WATER DISTRICT, a Public Agency organized under the Municipal Water Act of 1911, and a Subsidiary District of the City of Carlsbad By: ~ KEITH BLACKBURN, President ATTEST: C1Mx1o=!?~ ty,--SHERRY FREISINGER, Board Secretary If required by CMWD, proper notarial acknowledgment of execution by contractor must be attached . .!i..2 corporation, Agreement must be signed by one corporate officer from each of the following two groups. Group A Chairman, President, or Vice-President Group B Secretary, Assistant Secretary, CFO or Assistant Treasurer Otherwise, the corporation must attach a resolution certified by the secretary or assistant secretary under corporate seal empowering the officer(s) signing to bind the corporation. APPROVED AS TO FORM: CINDIE K. McMAHON, General Counsel By: ---~-IAA--~--~--- Assistant General Counsel General Counsel Approved Version 5/22/2024 3 LOCATION MAP Sun n y C r e e k R d PROJECT 5048 EXHIBIT6NUMBER PROJECT NAME CARLSBAD BOULEVARD WATER & SEWER LINE IMPROVEMENTS AT TERRAMAR 5503-20 VICINITY MAP AVECOSTALA BL V D C A R L S B A D RD ALGA PALOMAR AIRPOR T RD EL CAMI N O RE A L RAN C H O SAN T A F E RD POINS E T T I A LANE AL I C A N T E RD EL FUE R T E OLIVENHAIN RD. M E L R O S E D R . FARADAY COLLEGE BL V D P A S E O DEL NO R T E AVE A V E N I D A E N C I N A S CANNON RD MO N R O E ST CARLS B A D VILLAGE D R MARRON TAMARA C K AVE RD LAKECALAVERA LAGOO N AGUA HEDIOND A LAGOO N BATIQUITOS LAGOON A V I A R A PKWY POINSETT I A LANE PROJECT SITE PROJECT LIMITS (APPROX.) PROJECT LIMITS (APPROX.) Exhibit 4 3 Exhibit 3