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HomeMy WebLinkAbout2010-06-22; City Council; 720; Techbilt Construction contract amendmentCARLSBAD MUNICIPAL WATER DISTRICT AGENDA BILL 25 AB# 720 MTG. 6/22/10 DEPT. UTIL APPROVAL OF RATIFICATION AMENDMENT TO AGREEMENT WITH TECHBILT CONSTRUCTION CORPORATION FOR REIMBURSEMENT OF COSTS FOR THE CONSTRUCTION OF OVERSIZED POTABLE WATER PIPELINE IMPROVEMENTS WITHIN CARLSBAD OAKS NORTH, CARLSBAD TRACT CT 97-13. DEPT. DIRECTOR ^/^f*/ CITY ATTORNEY (^^ CITY MANAGER l/^"-""" 1398 RECOMMENDED ACTION: Adopt Resolution No. 1398 approving the Ratification of an Amendment No. 1 to a Reimbursement Agreement with Techbilt Construction Corporation, for reimbursement of costs to construct oversized potable water pipeline improvements, Project No. 3622, 3912, 5017, and 5028. ITEM EXPLANATION: The Carlsbad Oaks North, Tract CT 97-13, is located along Faraday Avenue and extends from Orion Street to the easterly boundary of Carlsbad. The condition of development for Carlsbad Oaks North, CT 97-13, requiring the developer to install a 12-inch diameter potable water pipeline in El Fuerte Street, Faraday Avenue, Whiptail Loop, and South Melrose Drive to meet the needs of the Commercial and Industrial areas to be built within the Project (the "Project Requirements"). In addition to completing the Project Requirements, the District requested the developer to oversize the 12-inch diameter potable water pipeline to a 16-inch diameter pipeline and construct appurtenances in El Fuerte Street, Faraday Avenue, Whiptail Loop, and South Melrose Drive. The oversized pipelines were included in the Water Master Plan, and are included in Capital Improvement Program as Project No. 3622, 3912, 5017, and 5028. The developer agreed to incorporate the 16-inch potable water transmission pipeline and appurtenances in El Fuerte Street, Faraday Avenue, Whiptail Loop, and South Melrose Drive within the scope of their project work provided that they receive reimbursement for the increase in cost necessitated by such incorporation. Staff agreed to process a reimbursement agreement for Board approval; however, the time for processing such agreement was outside the time frame desired by the developer. The developer agreed to assume the financial risk for beginning the original work and all change order work without benefit of Board approval of the reimbursement request, with the understanding that the developer would be allowed the opportunity to submit a request for reimbursement of costs to perform the additional work (in excess of the requirements of the Project) upon completion of the work. The developer of Carlsbad Oaks North, CT 97-13, Techbilt Construction Corporation, has completed the construction of the 16-inch diameter potable water transmission pipeline and appurtenances, with the additional cathodic protection change order work, in El Fuerte Street, Faraday Avenue, Whiptail Loop, and South Melrose Drive. DEPARTMENT CONTACT: David Ahles, (760) 602-2748, david.ahles@carlsbadca.gov FOR CITY CLERKS USE ONL Y. COUNCIL/BOARD ACTION: APPROVED JH£ DENIED D CONTINUED D WITHDRAWN D AMENDED D CONTINUED TO DATE SPECIFIC D CONTINUED TO DATE UNKNOWN D RETURNED TO STAFF D OTHER - SEE MINUTES D Page 2 The 16-inch potable water transmission pipeline benefits CT 97-13 as well as existing and proposed developments outside CT 97-13. CMWD Ordinance No. 45, Article VI, allows the District to require a sub divider to construct improvements benefiting property outside the subdivision and authorizes preparation of a reimbursement agreement for such improvements. Amendment No. 1 to the reimbursement agreement is based on Construction Change Orders executed with the construction contractor to provide additional cathodic protection, and changes in final quantities of piping and valves. ENVIRONMENTAL IMPACT: The reimbursement agreement is not a project subject to environmental review per State CEQA Guidelines Section 15378. The environmental impacts for the pipeline improvements installed in conjunction with the Carlsbad Oaks North development (CT 97-13) were previously evaluated pursuant to CEQA by an Environmental Impact Report, EIR 98-08, which was certified by City Council on October 8, 2002. FISCAL IMPACT: The amount that has been reimbursed under the original agreement was $761,056. The amount to be reimbursed to Techbilt Construction Corporation under this Amendment No. 1 is one hundred two thousand five hundred twenty-six dollars ($102,526). The total amount to be reimbursed to Techbilt Construction Corporation under this Agreement is not-to-exceed eight hundred sixty-three thousand five hundred eighty-two dollars ($863,582) for the potable water transmission pipelines and appurtenances. The total cost for the potable water transmission pipeline work covered by the reimbursement agreement is shown in Table 1. TABLE 1 Carlsbad Oaks North CT97-13 for Oversizing of the 12-inch to 16-inch Diameter Potable Water Transmission Pipelines: Reimbursement Location Whiptail Loop Phase l&ll (Project No. 5028) Faraday Avenue (Project No. 3622) El Fuerte Street (Project No. 3912) South Melrose Drive (Project No. 5017 Totals Oversizing Reimbursement Cost $401,619 $234,218 $64,099 $61,120 $761,056 Amendment No. 1 Cost $19,425 $57,999 (151) 25,253 $102,526 Total Reimbursement Cost $421,044 $292,217 $63,948 $86,373 $863,582 Current Appropriation $776,000 $875,471 $250,000 $1,475,000 $3,376,471 Appropriation Required None None None None None Funding Source: Water Connection Fund PageS Sufficient water connection fee funds have been appropriated to pay the reimbursement amount for the potable water transmission pipelines. The District originally appropriated funding to construct the water transmission pipelines independently as potential developments were still in the planning phase. Remaining appropriations will be returned back to the Water Connection Fund balance. EXHIBITS: 1. Location Map 11QR2. Resolution No. IJJO approving the Ratification of Amendment No. 1 to an Reimbursement Agreement with Techbilt Construction Corporation, for reimbursement of costs to construct oversized potable water pipeline improvements, Project No. 3622, 3912, 5017, and 5028. 3. Copy of Ratification of Amendment No. 1 to an Agreement for Reimbursement of Costs for the Construction of Oversized Potable Water Pipelines Improvements within Carlsbad Oaks North, Carlsbad Tract CT 97-13. LOCATION MAP PROJECT an OF OCEANSIOE HIGHWAY VICINITY MAP NOT TO SCAL£ PROJECT NOT TO SCALE PACIFIC OCEAN PROJECT NAME REIMBURSEMENT AGREEMENT WITH TECHBILT FOR OVERSIZING POTABLE WATER PIPELINES PROJECTNUMBER 3622, 3072 5017,5028 EXHIBIT 1 DRAW Bf. SCOTT EVAHS. CARLSBAD WGNEE7BNC DEPT. 7/2/09 G\CH>ITU.\AHl£S\X22-3912-S017-502a.DVK EXHIBIT 2 RESOLUTION NO. 1398 2 A RESOLUTION OF THE BOARD OF DIRECTORS OF CARLSBAD 3 MUNICIPAL WATER DISTRICT (CMWD) APPROVING RATIFICATION OF AMENDMENT NO. 1 TO AN REIMBURSEMENT 4 AGREEMENT WITH TECHBILT CONSTRUCTION CORPORATION FOR REIMBURSEMENT OF COSTS FOR THE CONSTRUCTION 5 OF OVERSIZED POTABLE WATER PIPELINE IMPROVEMENTS WITHIN CARLSBAD OAKS NORTH, CARLSBAD TRACT CT 97-13, 6 PROJECT NO. 3622. 3912. 5017. AND 5028. 7 WHEREAS, the developer of Carlsbad Tract 97-13 ("Project") was conditioned to install 8 a 12-inch diameter potable water pipeline in El Fuerte Street, Faraday Avenue, Whiptail Loop, g and South Melrose Drive to meet the needs of the Commercial and Industrial areas to be built 10 within the Project (the "Project Requirements"); and 11 WHEREAS, the District requested the developer oversize the potable water pipeline, 12 from a 12-inch diameter to a 16-inch diameter potable water pipeline and appurtenances in El 13 Fuerte Street, Faraday Avenue, Whiptail Loop, and South Melrose Drive; and 14 WHEREAS, the Planning Commission of the City of Carlsbad adopted a series of 15 resolutions on August 21, 2002 approving the Project, Carlsbad Tract Number CT 97-13 with 16 the oversizing of the potable water pipelines; and 17 WHEREAS, sufficient water connection fee funds are appropriated for the potable water 18 pipelines and are available to pay this Amendment No. 1 to the reimbursement agreement; and 19 WHEREAS, Ordinance No. 45, Article VI authorized reimbursement agreements 20 for oversizing pipelines to provide service to areas outside of the development. 21 NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of Carlsbad Municipal 22 Water District (CMWD) of the City of Carlsbad, California, as follows: 23 1. That the above recitations are true and correct. 24 2. That the President is authorized to execute the Ratification of Amendment No. 1 25 for Reimbursement Agreement with Techbilt Construction Corporation, for reimbursement of 26 costs to construct oversized potable water pipeline improvements, Project No. 3622, 3912, 27 5017, and 5028. 28 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PASSED, APPROVED AND ADOPTED at a Special Meeting of the Board of Directors of the Carlsbad Municipal Water District of the City of Carlsbad on the 22nd day of June, 2010, by the following vote to wit: AYES: Board Members Lewis, Kulchin, Hall and Blackburn. NOES: None. ABSENT: Board Member Packard. ^CLAUDE AttlEWIS, President ATTEST: LORRAINE M.(Vyt>OD, Secretary O - f>,: ,-.o: Vr<; RATIFICATION OF AMENDMENT NO. 1 TO AN AGREEMENT FOR REIMBURSEMENT OF COSTS FOR THE CONTSTRUCTION OF OVERSIZED POTABLE WATER PIPELINE IMPROVEMENTS WITHIN CARLSBAD OAKS NORTH CARLSBAD TRACT CT 97-13 Ratification of Amendment No. 1 to an Agreement for Reimbursement of Costs for the Construction of Oversized Potable Water Pipeline Improvements within Carlsbad Oaks North Carlsbad Tract CT 97-13, dated as of /OfOxiuL J^l, 2010 ("Agreement") is made at San Diego County, California, by and betweenfthe CARLBAD MUNICIPAL WATER DISTRICT, a Public Agency organized under the Municipal Water District Act of 1911, a Subsidiary District of the City of Carlsbad ("District") and TECHBILT CONSTRUCTION CORP., ("Developer") a California Corporation, with reference to the following recitals: RECITALS A. District adopted Resolution No. 1371 approving the Ratification of an Agreement for Reimbursement of Costs for the Construction of Oversized Potable Water Pipeline Improvements within Carlsbad Oaks North Carlsbad Tract CT 97-13, dated August 19, 2009. B. The Parties desire to alter the Agreement's reimbursable expenses to include change order work to add Cathodic Protection Test Stations and to modify the quantity of steel pipe required for the Project; and C. The Parties have negotiated and agreed to a Changer Order and reimbursable amount, which is attached to and incorporated by this reference as Exhibit "A", Change Order dated January 27, 2010. NOW, THEREFORE, the District and Developer agree as follows: 1. The Recitals, above, are true and correct and incorporated herein by this reference. 2. The District shall reimburse Developer an amount (the "Reimbursement Change Order Amount") equal to: (i) the actual authorized reimbursement Total Cost for construction of oversizing, plus (ii) an allowance for overhead as described in Section 6 (f) of the original agreement. The Total Reimbursable Cost for this amendment is $102,525.78 as reference in Exhibit "A", Change Order dated January 27, 2010. 3. All other provisions of the Agreement, as may have been amended from time to time, will remain in full force and effect. 4. The individuals executing this Amendment and the instruments referenced in it on behalf of Contractor each represent and warrant that they have the legal power, right and actual authority to bind Contractor to the terms and conditions of this Amendment. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date first above written. TECHBILT CONSTRUCTION CORP. By:. CARLSBAD MUNICIPAL WATER DISTRICT a Public, Agency organized under the Municipal /Water Distri«.......,.d a THEODORE TCHANG, President Date: S'|5»i LORrtAIN^ M. WObD, Secretary (Proper notarial acknowledgment ta^xe^ujjoti by Developer must be attached. Chairman, president, or vice president and secretary, assistant secretary, CFO or assistant treasurer must sign for corporations. Otherwise, the corporation must attach a resolution certified by the secretary or assistant secretary under corporate seal empowering the officer(s) signing to bind the corporation.) APPROVED AS TO FORM: RONALD R. BALL, General Counsel BY:J Deputy General CAunsel CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT State of California County of San Diego On May 12. 2010 Date before me, Nancy C. Lane, Notary Public Here Insert Name and Title of the Officer personally appeared Theodore Tchang Name(s) of Signer(s) Commission * 175U23 Notary Pub*: - California i Son Otogo County * Place Notary Seal Above who proved to me on the basis of satisfactory evidence to be the person^s) whose name(3$ is&ffi subscribed to the within instrument and acknowledged to me that he/sJag&bsy executed the same in his/bwAhear authorized capacity(iss), and that by his/hssftheir signature(s) on the instrument the person(a), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature OPTIONAL fSigYiaturre of Notary Public Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Title or Type of Document: Ratification of Amendment No. 1 to an Agreement/Potable Water Document Date: Number of Pages: 2 Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer(s) Signer's Name: D Individual D Corporate Officer — Title(s): D Partner — D Limited D General D Attorney in Fact D Trustee D Guardian or Conservator D Other: Signer Is Representing: RIGHTTHUMBPRINT OF SIGNER Top of thumb here Signer's Name: D Individual D Corporate Officer — Title(s): D Partner — D Limited D General D Attorney in Fact D Trustee D Guardian or Conservator D Other: Signer Is Representing: RIGHTTHUMBPRINT Of SIGNER Top of thumb here ©2007 National Notary Association • 9350 De Soto Ave., P.O.Box 2402 -Chatsworth, CA 91313-2402' www.NationalNotary.org Item #5907 Reorder: Call Toil-Free 1-800-876-6827 EXHIBIT A Change Order CARLSBAD OAKS NORTH OVERSIZED POTABLE WATER PIPELINE IMPROVEMENTS REIMBURSEMENT COST BREAKDOWN 1/27/2010 No.Description:Ouantitv: Unit: Change Order No. 1 to Phase 1 Potable Water System : 1 2 3 4 5 Deduct: 16" Steel, 10 Gage 16" Gate Valve (44) LF (1) Ea. Add: 16" CMLC Dip Sections * 2 Wire Test Station 4 Wire Test Station 2 Ea. 3 Ea. 1 Ea. Improvemen Unit Price : $ 79.65 $ 5,630.00 $ 20,460.00 $ 5,000.00 $ 3,500.00 Cost Actual Amount : $ (3,504.60) $ (5,630.00) $ 40,920.00 $ 15,000.00 $ 3,500.00 Oversizing R« Unit Price : $ 20.15 $ 3,715.00 $ 5,000.00 $ 3,500.00 Change Order No. 1 Reimbursement Subtotal = 5% Overhead Allowance = Change Order No. 1 Potable Water Oversizing Reimbursement Total = ;imbursement Amount : $ (886.60) $ (3,715.00) $ 4,601.60 $ 15,000.00 $ 3,500.00 $ 18,500.00 $ 925.00 $ 19,425.00 Note * : removed 44 lineal feet of 16" water line and added 2 water lowerings w/ bends, thrust blocks, blow ofis etc. Took a straight credit for changing the straight pipe and adding the lowerings except for the added Test Stations. No.Description:Ouantitv: Unit: Improvemen Unit Price : Change Order No. 2 to Faradav Ave. Potable Water Svstem : 1 Deduct: 16" Steel, 10 Gage (6) LF $ 78.30 Cost Actual Amount : $ (469.80) Oversizing Re Unit Price : $ 18.80 Change Order No. 2 Reimbursement Subtotal = 5% Overhead Allowance = Change Order No. 2 Potable Water Oversizing Reimbursement Total = imbursement Amount : $ (112.80) $ (112.80) $ (5.64) $ (118.44) No.Description:Ouantitv: Unit: Improvemen Unit Price : Change Order No. 3 to Melrose Drive Potable Water Svstem : 1 Add: 16" CMLC Dip Sections*1 Ea.$ 20,460.00 Cost Actual Amount : $ 20,460.00 Oversizing Re Unit Price : imbursement Amount : Not Broken Down Change Order No. 3 Reimbursement Subtotal = 5% Overhead Allowance = Change Order No. 3 Potable Water Oversizing Reimbursement Total = $ $ $ No.Description :Ouantitv: Unit: Improvemen Unit Price : Change Order No. 4 to El Fuerte St. Potable Water Svstem : 1 Deduct: 16" Steel, 10 Gage (8) LF $ 77.45 Cost Actual Amount : $ (619.60) Oversizing Re Unit Price : $ 17.95 Change Order No. 4 Reimbursement Subtotal = 5% Overhead Allowance = Change Order No. 4 Potable Water Oversizing Reimbursement Total = imbursement Amount : $ (143.60) $ (143.60) $ (7.18) $ (150.78) Change Orders 5 through 13, No Oversized Potable Water Changes Page 1 of2 EXHIBIT A Change Order CARLSBAD OAKS NORTH OVERSIZED POTABLE WATER PIPELINE IMPROVEMENTS REIMBURSEMENT COST BREAKDOWN 1/27/2010 No.Description:Quantity: Unit: Improvemen Unit Price : Change Order No. 14 to South Melrose Drive Potable Water System : 1 2 3 Add: 2 Wire Test Station 16" Insulating Flange Kits 4 Wire Test Station 4 Ea. 1 Ea. 1 Ea. $ 5,000.00 $ 550.00 $ 3,500.00 Cost Actual Amount : $ 20,000.00 $ 550.00 $ 3,500.00 Oversizing R« Unit Price : $ 5,000.00 $ 550.00 $ 3,500.00 Change Order No. 14 Reimbursement Subtotal = 5% Overhead Allowance = Change Order No. 14 Potable Water Oversizing Reimbursement Total = :imbursement Amount : $ 20,000.00 $ 550.00 $ 3,500.00 $ 24,050.00 $ 1,202.50 $ 25,252.50 No.Description:Ouantitv: Unit: Improvemen Unit Price : Change Order No. 15 to Faradav Ave. Potable Water System : 1 2 3 Add: 2 Wire Test Station 16" Insulating Flange Kits 4 Wire Test Station 12 Ea. 3 Ea. 3 Ea. $ 3,600.00 $ 550.00 $ 3,500.00 Cost Actual Amount : $ 43,200.00 $ 1,650.00 $ 10,500.00 Oversizing Ri Unit Price : $ 3,600.00 $ 550.00 $ 3,500.00 Change Order No. 15 Reimbursement Subtotal = 5% Overhead Allowance = Change Order No. 15 Potable Water Oversizing Reimbursement Total = imbursement Amount : $ 43,200.00 $ 1,650.00 $ 10,500.00 $ 55,350.00 $ 2,767.50 $ 58,117.50 Change Orders 16 through 21, No Oversized Potable Water Changes Total Change Order Potable Water Oversizing Reimbursement Total =$102,525.78 Page 2 of2 Kira Linberg From: Sent: To: Cc: Subject: Diane Nygaard [dandd2@peoplepc.com] Tuesday, June 22, 2010 2:33 PM Council Internet Email David Ahles # 25 - Techbilt Amendment fwe - Agenda item # For information of THE CITY COUNCIL / .__ CA CC_Jl From CM Asst CM cm Honorable Mayor and City Council June 5th was the regular monthly trail volunteers work session. About 25 volunteers, city staff, and two large city trucks were out on site working on the trails that are part of the Techbilt project at Carlsbad Oaks North. Part of the days work tasks were to remove construction debris left along the creek. I asked city staff why taxpayer dollars and volunteer time were being used to do work that should have been done by the developer. They confirmed that removing these items were on the city's punch list- one of many things the developer has not done. They also confirmed the city is still holding a bond for the work- but that Techbilt just refuses to do it. I was therefor very surprised to see calendar item #25 - recommending approval to pay Techbilt for some extra work they have done on the water pipes. Can someone explain why the city would pay them for this work when there is still other outstanding work owed the city? It seems to me that withholding this payment provides some leverage to get the outstanding work completed. At least it seems like the city should give Techbilt a deadline to get the outstanding work done. Then if they don't the bond funds should be used as this work needs to be done. These deteriorating silt and enviro fences disrupt normal wildlife movement and are a hazard to wildlife who may ingest them. They also have the potential to clog the creek They are supposed to be properly removed at the end of construction- which I believe was about 3 years ago on this part of tMe site. At the rate the volunteers can do this these hazards will still be there for years. It seems like taxpayers and volunteers are footing the bill for a developer's bad business decisions. We urge you to deny any further payments to Techbilt until they have completed all of the outstanding work for this project. If you choose to approve this amendment then we ask you to at least exercise your options under the terms of the bond and use the devloper's money to clean up the debris they have left along the creek. Diane Nygaard Preserve Calavera 760-724-3887