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.
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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
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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
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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.
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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
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