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HomeMy WebLinkAbout2017-09-12; City Council; ; Adopt a Resolution approving Amendment No. 3 to the Professional Services Agreement with Arcadis U.S., Inc. for construction management and inspection services for the Vista/Carlsbad Interceptor Sewer, Reaches VC11B-VC15, and tt-f( CA Review __ _ @ CITY COUNCI L Staff Report Meeting Date: To: From: Staff Contact: Subject: Sept. 12, 2017 Mayor and City Council Kevin Crawford, City Manager John Maashoff, Public Works Manager John.Maashoff@carlsbadca.gov or 760-434-2856 Adopt a Resolution approving Amendment No. 3 to the Professional Services Agreement with Arcadis U.S., Inc. for construction management and inspection services for the Vista/Carlsbad Interceptor Sewer, Reaches VC11B-VC15, and the Agua Hedionda Sewer Lift Station Projects, Project Nos. 3492, 3886 and 3949. Recommended Action Adopt a Resolution approving Amendment No. 3 to the Professional Services Agreement with Arcadis U.S., Inc. for construction management and inspection services for the Vista/Carlsbad Interceptor Sewer, Reaches VC11B-VC15, and the Agua Hedionda Sewer Lift Station Projects, Project Nos. 3492, 3886 and 3949. Executive Summary Arcadis U.S., Inc. is providing construction management and inspection services as well as environmental monitoring and reporting for the Vista/Carlsbad Interceptor Sewer, Reaches VC11B-VC15, and the Agua Hedionda Sewer Lift Station Projects, Project Nos. 3492J 3886 and 3949 (Project) under a Professional Services Agreement (Agreement). During the course of construction the contractor encountered several unforseen or changed conditions that delayed progress causing revisions to the anticipated completion date of the Project. Amendment No. 3 to the Agreement is necessary to continue the construction management and inspection services until Project completion. Discussion The Vista/Carlsbad Interceptor Sewer was constructed in 1965 and is jointly owned by the City of Vista and the City of Carlsbad. The Project includes a new 140-foot long steel truss utility bridge, a 33 million gallon per day sewage lift station, and 2 miles of large diameter gravity sewer and force main pipeline to provide increased capacity and reliability to the sewer system. The Project also includes the construction of 2 miles of recycled water transmission pipeline. On Nov. 11, 2014, the City Council adopted Resolution No. 2014-257, approving a Professional Services Agreement with Arcadis U.S., Inc. to provide construction management and inspection services for the Project. The Agreement was subsequently amended on May 19, 2015, as approved by Resolution No. 2015-125, to include environmental monitoring and reporting services through the construction phase of the Project: The Agreement was amended a second Page 65 #5 time on Jan. 10, 2017, as approved by Resolution No. 2017-001, to include additional environmental mitigation support during Project construction. Construction of the Project commenced on Aug. 3, 2015 with an original completion date of June 5, 2017. Impacts to the construction schedule are the result of soil contamination that was discovered early in the Project that required special handling, North County Transit District work plan delays and mitigation area complications, SoCal Gas utility relocations, and weather delays. Work on Avenida Encinas is expected to be complete by the end of the calendar year with the entire Project being complete by the spring of 2018. Amendment No. 3 to the Agreement with Arcadis U.S., Inc. is necessary to provide additional construction management and inspection services to Project completion. The Project is currently estimated to be 75 percent complete. Fiscal Analysis The original fee for construction management and inspection services included in the Agreement with Arcadis U.S., Inc. was for a not to exceed amount of $3,314,039. Amendment No. 1 provided for an additional $325,881, and Amendment No. 2 provided an additional $280,000. This proposed Amendment No. 3 provides an additional $861,400 for a total Agreement amount not to exceed $4,781,320. A summary of current and projected Project costs is shown in the table below: VISTA/CARLSBAD INTERCEPTOR SEWER, REACHES VC11B-VC15, AND THE AGUA HEDIONDA SEWER LIFT STATION PROJECTS, CIP NOS. 3492, 3886, AND 3949 Current Appropriation -Vista/Carlsbad Interceptor Sewer, CIP Nos. 3492, $60,380,000 3886, and 3949 Current Expenditures/Encumbrances -Vista/Carlsbad Interceptor Sewer, CIP $57,948,330 Nos. 3492, 3886, and 3949 TOTAL AVAILABLE VISTA/CARLSBAD INTERCEPTOR SEWER, CIP NOS. 3492, $2,431,670 3886, and 3949 VISTA/CARLSBAD INTERCEPTOR SEWER, REACHES VC11B-VC15, AND THE AGUA HEDIONDA SEWER LIFT STATION PROJECTS, PROJECT NOS. 3492, 3886, AND 3949 Arcadis U.S., Inc. Amendment No. 3 $861,400 Remaining Administrative Costs (Estimated} $250,000 TOTAL ESTIMATED REMAINING PROJECT COSTS ·•' $1,111,400 REMAINING BALANCE $1,320,270 ADDITIONAL APPROPRIATION NEEDED $0 Sufficient funds are currently available for the completion of the Project. All Project related costs will be shared between the City of Carlsbad and the City of Vista as described within the existing Project Agreement between the two cities approved by City Council (Resolution No. 2015_-039}. The City of Vista is responsible for approximately 65 percent of the costs related to the sewer Project and is using State Revolving Funds to pay for their portion of the Project. Carlsbad's share of the Project is funded from the Sewer Connection Fee Fund. Page 66 Next Steps Construction on the Project will continue and is expected to be complete by spring 2018. Environmental Evaluation (CEQA) A Mitigated Negative Declaration {MND} and Mitigation Monitoring and Reporting Program (MMRP} were prepared for the Agua Hedionda Sewer Lift Station, Force Main and Gravity Sewer Replacement Project {PDP 00-02{(}/SP 144{L}/RP 10-26/CDP 10-17/HDP 10-05/SUP 10- 02/HMP 10-03}. The MND was adopted by the City Council on Dec. 6, 2011, in compliance with the California Environmental Quality Act (CEQA} Guidelines Section 15074. Public Notification This item was noticed in accordance with the Ralph M. Brown Act and was available for public viewing and review at least 72 hours prior to the scheduled meeting date. Exhibits 1. Resolution approving Amendment No. 3 to the Professional Services Agreement with Arcadis U.S., Inc. for construction management and inspection services for the Vista/Carlsbad Interceptor Sewer, Reaches VC11B-VC15, and the Agua Hedionda Sewer Lift Station Projects, Project Nos. 3492, 3886 and 3949. 2. Location Map. Page 67 RESOLUTION NO. 2017-178 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, APPROVING AMENDMENT NO. 3 TO THE PROFESSIONAL SERVICES AGREEMENT WITH ARCADIS U.S., INC. FOR CONSTRUCTION MANAGEMENT AND INSPECTION SERVICES FOR THE VISTA/CARLSBAD INTERCEPTOR SEWER, REACHES VCllB -VC15, AND THE AGUA HEDIONDA SEWER LIFT STATION PROJECTS, PROJECT NOS. 3492, 3886, AND 3949. EXHIBIT I WHEREAS, on Nov. 4, 2014, City Council approved a Professional Services Agreement (Agreement) with Arcadis U.S., Inc. for an amount not to exceed $3,314,039 for construction management and inspection services for the Vista/Carlsbad Interceptor Sewer, Reaches VCllB -VC15, and the Agua Hedionda Sewer Lift Station Projects, Project Nos. 3492, 3886, and 3949, (Project) by adoption of Resolution No. 2014-257; and WHEREAS, on May 19, 2015, City Council approved Amendment No. 1 to amend the Professional Services Agreement with Arcadis U.S., Inc. for environmental monitoring during construction of the Project for an amount not to exceed $325,881, by adoption of Resolution No. 2015- 125; and WHEREAS, on Jan. 10, 2017, City Council approved Amendment No. 2 to extend and amend the Professional Services Agreement with Arcadis U.S., Inc. for construction management and inspection services for an amount not to exceed $280,000, by adoption of Resolution No. 2017-001; and WHEREAS, city staff and Arcadis U.S., Inc. have negotiated fees for an amount not to exceed $861,400 to provide the additional construction management and inspection services, as described in Amendment No. 3 to the Agreement; and WHEREAS, funds have been appropriated in the Capital Improvement Program from the Sewer Connection Fee Fund and sufficient funds are currently available; and WHEREAS, Carlsbad will be reimbursed by the City of Vista for its portion of the additional construction management and inspection services in accordance with the Project Agreement approved by City Council Resolution No. 2015-039; and WHEREAS, the City Council of the City of Carlsbad, California has determined that it is in the best interest of the city to execute Amendment No. 3 to the Professional Services Agreement for construction management and inspection services. EXHIBIT I 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 the mayor of the City of Carlsbad is authorized and directed to execute Amendment No. 3 to the Professional Services Agreement with Arcadis U.S., Inc. attached hereto as Attachment A. PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 12th day of September, 2017, by the following vote, to wit: AYES: NOES: ABSENT: M. Hall, K. Blackburn, M. Schumacher, C. Schumacher, M. Packard. None. None. (SEAL) UTIL 1139 AMENDMENT NO. 3 TO AGREEMENT FOR CONSTRUCTION MANAGEMENT AND INSPECTION SERVICES FOR THE VISTA/CARLSBAD INTERCEPTOR SEWER, REACHES 11B-15, AND THE AGUA HEDIONDA SEWER LIFT STATION, PROJECT 3949, 3492, 3886 ARCADIS U.S., INC. is entered into and effective as of the \ ,t>--tt\ day of -----,~.lo.L.F-"-=.:..:.....;i..=._..!.... ____ , 2017, amending the agreement dated November 4, 2014 (the 'Agre ent") by and between the City of Carlsbad, a municipal corporation, ("City"), and Arcadis U.S., Inc., ("Contractor") (collectively, the "Parties") for Construction Management and Inspection Services for the Vista/Carlsbad Interceptor Sewer, Reaches 118-15 and the Agua Hedionda Sewer Lift Station. RECITALS A. On May 19, 2015, the Parties executed Amendment No. 1 to the Agreement to add Environmental Mitigation Monitoring Support during project construction; and B. On January 12, 2017, the Parties executed Amendment No. 2 to the Agreement to alter the Agreement's scope of work to include additional Environmental Monitoring; and C. The Parties desire to alter the Agreement's scope of work to provide Construction Management and Inspection Services; and D. The Parties have negotiated and agreed to a supplemental scope of work and fee schedule, which is attached to and incorporated by this reference as Exhibit "A", Scope of Services and Fee. NOW, THEREFORE, in consideration of these recitals and the mutual covenants contained herein, City and Contractor agree as follows: 1. In addition to those services contained in the Agreement, as may have been amended from time to time, Contractor will provide those services described in Exhibit "A". 2. City will pay Contractor for all work associated with those services described in Exhibit "A" on a time and materials basis not-to-exceed eight hundred sixty one thousand four hundred dollars ($861,400). Contractor will provide City, on a monthly basis, copies of invoices sufficiently detailed to include hours performed, hourly rates, and related activities and costs for approval by City. 3. Contractor will complete all work described in Exhibit "A" by November 3, 2018. 4. All other provisions of the Agreement, as may have been amended from time to time, will remain in full force and effect. 5. All requisite insurance policies to be maintained by Contractor pursuant to the Agreement, as may have been amended from time to time, will include coverage for this Amendment. City Attorney Approved Version 9/27/16 UTIL 1139 . corporat1o'h dw~~~. By: BARBARA If required by City, proper notarial acknowledgment of execution by Contractor must be attached. If a 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: CELIA A. BREWER, City Attorney BY:---~"-----'-----"~-------=--- Deputy City Attorney City Attorney Approved Version 9/27/16 2 EXHIBIT "A" SCOPE OF WORK AND TECHNICAL APPROACH Vista/Carlsbad Interceptor Sewer and Agua Hedionda Lift Station Replacement Project UTIL1139 Construction Management and Inspection Services (CIP Nos. 3886, 3492 and 3949) Task 100 -Project Management Under this task ARCADIS will continue to provide overall project management, including budget and schedule control, sub-consultant management, project documentation, progress meetings and quality assurance/quality control as defined by the following sub-tasks. Task 1.1.1 -Track Project Progress and Schedule Under this sub-task ARCADIS will continue to provide internal "project management" (PM) computer based budget and labor effort tracking system, and will submit monthly· invoices to the City in accordance with the City's requirements. The monthly invoices will identify the following "task-by-task" information. • Budget Amount • Amount Previously Billed • Current Invoice Amount • Amount Billed to Date • Amount Remaining • % Budget Expended to Date • % Work Completed to Date Task 1.1.2 -Sub Consultant Management Under this sub-task ARCADIS will continue to develop and execute agreements with our sub-consultants, will continue to process sub-consultant invoices, and will continue to help coordinate sub-consultant efforts associated with the Construction Management and Inspections Services. Task 1.1.3 -Project Management Documentation Under this sub-task ARCADIS will continue to utilize our electronic and "hard copy" document filing system for overall project management efforts under task 100, will maintain project documents and will distribute project documents to internal and external project team members as deemed appropriate by our Contract Manager, our Construction Manager, and the City's Project Manager. Page 72 UTIL1139 Task 1.1.4 -Progress Meetings Under this task ARCADIS will continue to coordinate with the City and will actively participate in monthly progress meetings that will be conducted with the City by our Contract Manager and Construction Manager. These meetings will focus on review of project status and budgets and will be independent of weekly construction progress meetings to be conducted with the City and the Construction Contractor by our Construction Manager under Task 300. Task 1.1.5 -Quality Assurance/Quality Control Under this task ARCADIS will continue to engage and consult with our Quality Consultant on an "as-needed" basis during construction to help mitigate and resolve construction issues as they arise. Task 300 -Construction Phase Services Under this. task ARCADIS will continue to provide construction management, resident engineering and inspection services as define in the following sub-tasks. Task 3.1.2 -Construction Management Documentation Under this sub-task ARCADIS will continue our electronic and "hard copy" document filing system for our construction management efforts under task 300; will continue to maintain project documents and will distribute project documents to internal and external project team members as deemed appropriate by our Construction Manager and the City's Project Manager. Our Construction Manager and Resident Engineer will maintain field memoranda, transmittals, updated schedules, logs of shop drawings and other submittals, logs of requests for information, change orders, progress payment requests, progress meeting reports, daily inspection reports, dates of utility service interruptions, and all other project correspondence. Our Construction Manager will prepare three copies of the monthly progress report and submit them to the City's Project Manager. This progress report will include the following elements: Summary of the prior month's main accomplishments and current construction activities. Overall contractor's conformance to contract schedule and quality requirements Identification of key problems, action items and issues and will include recommendation for solutions. Summary of progress payments, change orders, disputes, submittals, RFls and Notices of Noncompliance. Photographs of representative project activities. Web-Based Data Management System The project documents require the Contractor to provide and manage a web- based document control system capable of sending, receiving, retrieving and Page 73 UTIL1139 responding to Contractor submittals, RFls, RFDs, change orders, etc; and tracking documents, their pertinent information and their status at any time, as well as their relationship to other project documents. The Construction Management team will continue to manage an independent web-based document control system. Task 3.1.3 -Photo Documentation Our Construction Manager and pipeline Resident Engineer will continue to take and develop construction documentation photographs on a regular basis and maintain a digital photographic library of all significant construction activities, providing unique file names for photos including date and location information. The Construction Manager will take additional photographs to document differing site conditions, change order and claim items, and any special or unique conditions as they arise. Task 3.1.4 -Construction Progress Meetings Construction progress meetings will continue to be conducted as required per the Contract Documents. Our Construction Manager and other team members, as appropriate will participate in progress meetings. These meeting will be coordinated and chaired by our Construction Manager who will prepare and issue meeting agendas and meeting minutes for all progress meetings and special meetings/workshops with the Construction Contractor. Task 3.1.5 -Critical Path Method Schedule Reviews Under this sub-task our Construction Manager will continue to review and comment on the Contractor's baseline CPM schedule for compliance with the contract requirements relative to overall schedule, interim milestones, phasing of construction and coordination of tie-in and shut down activities. Subsequent to review and approval of the baseline schedule, the Construction Manager will continue to review and comment on the Contractor's monthly CPM schedule updates. Task 3.1.6 -Shop Drawings and Submittal Reviews Under this sub-task ARCADIS will continue to receive, log, distribute, monitor and track shop drawings and submittals made by the Construction Contractor, and coordinate the review of shop drawings and submittals with the City and the Design Engineer where appropriate. ARCADIS will review all submittals for completeness and general compliance with the requirements of the Contract Documents prior to forwarding the submittals to the Design Engineer. ARCADIS will continue to receive, log, distribute and track all project submittals and responses; review and respond to our assigned project submittals; and coordinate reviews for all project submittals assigned to the Design Engineer. Task 3.1. 7 -Plans and Specifications Interpretation Under this sub-task ARCADIS will continue to receive, log, distribute, monitor and track Page 74 UTIL1139 all RFls submitted by the Construction Contractor. ARCADIS will coordinate, as needed, with the Design Team for interpretation of the Contract Documents where appropriate and will respond to all RFls in a timely manner and within a time frame to be specified in the Contract Documents. ARCADIS will continue to review and process RFls that do not, in our opinion, alter the design intent; and will coordinate with the Design Engineer for responding to all RFl's that might alter the design intent. Task 3.1.8 -Construction Inspection Services and Materials Testing Under this sub-task ARCADIS will continue to provide full time construction inspection over the course of the project; will coordinate materials testing required of the Construction Contractor; and will provide inspections and testing services not required of the Construction Contractor but required to confirm compliance with the requirements of the Contract Documents. Factory, Performance and Acceptance testing will be provided by the Design engineer. Task 3.1.9 -Progress Payments Approximately five days prior to the submittal of the payment application our Resident Engineer will walk the project with the contractor's field personnel and agree on a percent complete of the work. The Construction Manager will ensure during the initial schedule cost loading that the construction activities are fairly spread throughout the project and not allow front end loading. Payments on material arriving early on the project will be allowed to be billed with proper invoice backup from the manufacturer or supplier. Once the payment application percent complete is approved, our Construction Manager will request that the contractor complete the payment application with required backup and will review it with the City for approval. Our Construction Manager will discuss prerequisites to a complete payment application with the City prior to the start of the project. Page 75 UTIL1139 These prerequisites could include: Monthly Schedule Update with Current Status Material Invoices for Material on Hand but Not Installed Off Site Billed Material with Bill of Sale to Contractor and Proper Insurance for Stored Location Updated As-Built Documentation Up To Date SWPPP Documentation Up To Date Regulatory Reports Task 3.2.1 -Contractor Claims and Change Orders Under this sub-task our Construction Manager will continue to: Identify, prepare, log and monitor all contractor or City initiated claims, changes, extra work and change orders. Negotiate all claims to an agreed contract/consultant/City conclusion. Submit change orders to the City for approval. Prepare a report providing statement of claim, extra work or change; background leading to issue; resolution alternatives; and resolution recommendation for action by the City. Prepare written justification and cost estimates for each change order and negotiate costs with the contractor. Review claims, extra work and change orders that require design modifications or clarifications, including revisions to drawings, details and specifications. Resolve claims, extra work and change orders for changes to the work and obtain City approval. All Change Orders affecting or changing the design intent will be coordinated with the Design Engineer. The Design Engineer will provide input to Construction Manager prior to Construction Manager responding to Potential Change Order (PCO's) or Change Order Requests (COR's). Processing a Disputed Change Order Prior to processing a disputed change order our Construction Manager will exhaust all reasonable remedies for resolving the dispute with the Contractor. ARCADIS' recommended change order review and negotiation best management practices are outlined below and the path we would follow prior to processing a disputed change. Page 76 UTIL1139 Prompt Resolution of Changes in the Field Critical to Cost Management is the prompt resolution of cost and schedule issues in the field. The most detailed knowledge of an issue resides in the field with the Contractor's personnel and the City's construction representative. We believe that it is best handled in the field and that providing qualified personnel in the field, ARCADIS will be able to resolve most issues in the field. When or if it does become necessary to elevate issues to a higher executive level, ARCADIS will ensure that all viable options for field resolution have been exhausted. Use Established Cost Manuals For most projects, we recommend requiring an established estimating guide such as MEANS within the Contract Documents to establish labor productivity rates so that factor in negotiations is taken off the table. Utilize Time and Material Procedures Particularly for items of indefinite quantity where a Contractor will want to price in contingency on a lump sum proposal, it may be more effective to utilize the time and material procedures outline in the General Conditions to resolve the disputed item. This may be a means to resolve a dispute when merit for change is acknowledged. Meet and Confer If after field personnel have met at least a couple of times on the issue and both parties have done their due diligence to establish their factual position (independent cost estimates, material supplier quotes, etc.), the issue would need to be elevated to the executive management of the Contractor, ARCADIS and the City. A formal Meet and Confer conference would be established on site to discuss the issue. Task 3.2.6 -Public Relations and Traffic Under this sub-task ARCADIS will coordinate with the public and with the Contractor to inform the public construction activities that will impact the community. Page 77 Task No. 100 00111 00112 00113 00114 00115 300 00312 00313 00314 00315 00316 00317 00318 00319 00321 00326 City of Carlsbad Agua Hedionda Project Cost Proposal Summary Description Project Management Track Project Progress and Schedule PM Updates Monthly Invoices Sub Consultant Management Sub Consultant Agreements/Amendments Sub Consultant Invoices Sub Consultant Coordination Project Management Documentation Document Filing and Control Progress Meetings QNQC Construction Phase Services Construction Management Documentation Photo Documentation Construction Progress Meetings CPM Schedule Reviews Shop Drawing/Submittal Processing/Review RFI/RFC Processing/Review Inspection and Testing Progress Payment Processing/Review Change Order/Claims Processing/Review Public Relations & Traffic UTIL1 139 Total $ 62,200 $ 49,700 $ 63,800 $ 27,400 $ 92,000 $ 6,800 $ 2,200 $ 9,800 $ 10,300 $ 67,400 $ 28,900 $ 398,50 $ 12,300 $ 27,500 $ 2,600 Total $ 861,400 Page 78 EXHIBIT 2 EXISTING LAGOON BRIDGE VC118 _.....,..._.._....J~ EXISTING AGUA HEDIONOA LIFT STATION LEGEND: -VC11B-VC15 VC1 -VC11A PROJECT NAME LOCATION MAP AGUA HEDIONDA LIFT STATION & VISTA/CARLSBAD INTERCEPTOR SEWER REACHES VC11B THROUGH VC15 DRA'lrN BY: SCOTT £VANS: CARLSBAD U11L/71£S DEPT. 1/13/11 C: \U11L/71£S D£PARTM£NT\LOCA110N MAPS\AHLS & VC11B-VC15.DWG PROJECT NUMBER 3492, 3886 & 3949 EXHIBIT 2 Page 79 THIS PAGE WAS INTENTIONALLY LEFT BLANK Page 80