HomeMy WebLinkAbout2019-06-11; City Council; ; Appropriation of funds, authorization of an agreement with Arcadis U.S., Inc. and authorization to execute Amendment No. 3 between the City of Carlsbad and the City of ViCA Review lh ,,&--
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CITY COUNCIL
Staff Report
Meeting Date:
To:
From:
Staff Contact:
Subject:
June 11, 2019
Mayor and City Council
Scott Chadwick, City Manager
Babaq Taj, Engineering Manager
babaq.taj@carlsbadca.gov or 760-602-4676
Terry Smith, Engineering Manager
terry.smith@carlsbadca.gov or 760-603-7354
Appropriation of funds, authorization of an agreement with Arcadis U.S.,
Inc. and authorization to execute Amendment No. 3 between the City of
Carlsbad and the City of Vista for the Agua Hedionda Sewer Lift Station,
Vista/Carlsbad Interceptor Sewer Reaches VC11B-VC15, and Recycled
Water Line Project, Capital Improvement Program (CIP) Projects Nos.
3492, 3886 and 3949.
Recommended Action
Adopt a Resolution authorizing appropriation of additional funds for design engineering and
construction support services, anticipated legal fees, staff administrative costs and execution of
a professional services agreement with Arcadis U.S., Inc. to provide construction management
and inspection services in an amount not to exceed $423,589 for a total net appropriation of
$965,768; and,
Adopt a Resolution to execute Amendment No. 3 between the City of Carlsbad and the City of
Vista to increase the upper budget limit for Vista's cost share to ensure timely reimbursement
payments for the Agua Hedionda Sewer Lift Station and Vista/Carlsbad Interceptor Sewer,
Reach _es VC11B-VC15, and Recycled Water Line Project, CIP Nos. 3492, 3886 and 3949 (Project).
Executive Summary
The Project is a joint sewer project with the City of Carlsbad and the City of Vista that is
currently under construction and is behind schedule due to the Project's failure to meet
performance specifications. These delays necessitate the need for additional consultant
support services to provide construction inspection and field engineering for the remainder of
the Project duration.
City Council authorization of the professional services agreement with Arca dis U.S., Inc. is
required per Carlsbad Municipal Code (CMC) Section 3.28.040 (D)(l) as the value of the
agreement is greater than $100,000 per agreement year. City Council must also determine the
agreement to be exempt from formal bidding procedures under CMC Section 3.28.110 (N)
before entering into the agreement with Arcadis U.S., Inc.
June 11, 2019 Item #11 Page 1 of 32
Additional funding is needed for design engineering and construction support services,
anticipated legal fees, staff administrative costs and construction management and inspection
services, for a total net appropriation of $965,768 from the sewer connection fee fund.
Discussion
The Vista/Carlsbad Interceptor Sewer was constructed in the early 1960s and extends
approximately eight miles northeasterly from the Encina Water Pollution Control Facility to the
City of Vista. The interceptor sewer is identified as pipeline Reaches VCl through VC15 and
includes the Buena Vista and Agua Hedionda lift stations.
The Project replaces existing facilities with larger pipes and pumps to increase sewer capacity
and improve reliability within. the lower portion of the Vista/Carlsbad Interceptor Sewer
system. The entire Project is located within the City of Carlsbad beginning at the north shore of
the Agua Hedionda Lagoon and extending southerly, approximately 2.3 miles, to the Encina
Water Pollution Control Facility.
On May 5, 2015, the City Council adopted Resolution No. 2015-124, authorizing award of a
contract with Pulice Construction, Inc. (Contractor) to construct the Project in an amount not to
exceed $44,195,300. Soon after award of the contract, the Project encountered unforeseen and
changed conditions that increased the cost of the construction contract and delayed the
construction schedule. These changes were addressed through construction change orders to
the Contractor authorized by the city manager and through resolutions approved by the City
Council to amend the city's professional service agreements with Arcadis U.S., Inc. for
construction management and inspection services and Brown and Caldwell, Inc. (B&C) for
design engineering and construction support services.
Recently, as the Project has entered the closeout phase of the contract, new impacts including
construction delays and performance issues associated with the newly constructed pumping
system have further delayed completion of the Project. These impacts can be generally
described as follows:
1-Construction delays: The Project was scheduled to begin the commissioning phase of
work in the spring of 2018. However, construction schedule delays delayed the start of
commissioning to the fall of 2018. Final determination for responsibility of the delay
remains contingent upon the Contractor's submission of a time impact analysis.
2-Pumping System: The new Agua Hedionda Lift Station is comprised oftwo pumping
systems -the Lift System and the Force System. The Lift System and Force System are
each comprised of four pumps. During the commissioning phase of work, the four
pumps furnished and installed as a part of the Lift System were found to be unable to
meet the requirements of the specification. The performance issues with Lift System
pumps do not allow the new Agua Hedionda Lift Station to operate as intended. As a
result, the commissioning phase of work cannot be closed and the remainder of the
Project scope of work (approximately 5%) cannot be completed. The city has
undertaken an extensive testing effort, including through a third-party consultant
June 11, 2019 Item #11 Page 2 of 32
contracted through the City Attorney's Office, to identify the causal factor(s) impacting
performance of the Lift System pumps. Staff is currently working in consultation with
the City Attorney's Office to resolve the pumping issues with the Contractor.
In consultation with the City Attorney's Office, staff will engage with the Contractor to resolve
the pumping system issue(s) by identifying the causal factors impacting the performance of the
Lift System pumps. Once the problems with the pumping system have been corrected, the City
will test and commission the new lift station to verify proper performance.
Upon completion of the commissioning effort, the _ remainder of the construction scope of
work, including demolition of the existing pump station and the site/civil work around the new ·
pump station, will follow. The duration to complete the remainder of the construction scope of
work (following resolution of the pump performance issues and commissioning) is
approximately three months. The final project completion date is contingent upon identifying
the required engineering solution and implementing the solution. The final project completion
date is estimated to be in the spring of 2020.
Separate from the construction delays and pumping system issue, the City Attorney's Office and
staff have been preparing for mediation with the Contractor for their claim of changed
conditions as it relates to the Project's microtunneling scope of work. The City believes that the
Contractor over-excavated some of the tunnels drilled for the wastewater pipes. Over
excavation of the tunnels could cause damage to the pipes, surrounding utilities, etc. City
Council adopted Resolution No. 2018-142 authorizing execution of Amendment No. 2 to the
City of Carlsbad and the City of Vista Project Agreement to include contracting and cost-sharing
for legal and expert services required to pursue these claims. The city anticipates that
mediation over this matter will take place in the summer of 2019.
Professional Services Agreement with Arcadis U.S., Inc.
On Nov. 11, 2014, the City Council adopted Resolution No. 2014-257 approving an agreement
with Arcadis U.S., Inc. to provide construction management and inspection services for the
Project. In subsequent years amendments were issued to increase the scope to include
environmental monitoring and reporting which raised the funding limit to $5,181,320 and
extended the agreement duration. Staff seeks to amend the current agreement with Arcadis
U.S., Inc. to provide additional construction management and inspection services. However,
due to the extended duration of the Project, the City Attorney's Office and contract
administration staff have determined that no further amendments may be made to the existing
agreement.
The city's procurement process requires that formal bidding procedures be utilized when the
anticipated cost of the professional services is greater than $35,000.00 per agreement year.
However, the CMC allows for an exemption from the formal bidding procedures if, in the
determination by the awarding authority, the exemption is in the best interests of the city. CMC
Section 3.28.110, subsection N states that an exemption may be provided for:
June 11, 2019 Item #11 Page 3 of 32
Situations where solicitations of bids or proposals for goods, services and/or
professional services would be, in the discretion of the awarding authority, impractical,
unavailing, impossible, or not in the best interests of the city. (Ord. CS-002 § 2, 2008}
In consultation with the City Attorney's Office, and with agreement from the city's purchasing
officer, staff recommends that the City Council exempt the agreement with Arcadis U.S., Inc.
under CMC Section 3.28.110 (N} from a competitive bidding process as to do so is in the best
interests of the city. The agreement with Arca dis U.S., Inc. supports the city in its defense of
construction claims and lends critical technical assistance as the city seeks resolution for the
issues associated with the pumping system. They also provide construction management and
inspection services through the completion of the Project .
Design Engineering and Construction Support Services
On June 10, 2008, the City Council adopted Resolution No. 2008-164 approving a professional
services agreement with B&C to provide design engineering and construction support services
for the Project. In subsequent years amendments were issued to include engineering design
support during construction services which extended the agreement duration and raised the
funding limit to a not-to-exceed fee of $5,392,738. The city will enter into a new agreement
with B&C to provide design engineering and construction support services to support the city as
it seeks resolution to the performance issues associated with the pumping system through
completion of the Project. The professional services agreement for the required design
engineering and construction support services do not require City Council authorization as the
value of these services fall within the city manager's procurement authority.
Amendment No. 3 to the City of Carlsbad and City of Vista Project Agreement
The City of Carlsbad and City of Vista Project Agreement needs to be amended to reflect
additional costs to the Project for design engineering and construction support services,
estimated legal fees and construction management and inspection services in an amount not to
exceed $1,668,386.
These additional costs will be shared by the City of Vista and the City of Carlsbad at the;: rate(s)
identified in the Project Agreement. The City of Vista is responsible for approximately 65% of
the additional project costs, while the City of Carlsbad is responsible for approximately 35% of
the additional project costs.
Fiscal Analysis
The professional services agreement with Arcadis U.S., Inc. is in an amount not to exceed
$423,589. Funds are also needed to cover design engineering and construction support
services, anticipated legal fees and staff administrative costs in an amount not to exceed
$700,000 . As shown in the table below, the total available in the Project budget is $157,821 . As
such, the Project requires a net appropriation of $965,768 from the sewer connection fee fund
-$423,589 to offset the cost of the agreement with Arcadis U.S., Inc. and $542,179 to offset
the costs for design engineering and construction support services, anticipated legal fees and
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staff administrative costs. Sufficient funds are available in the sewer connection fee fund for
this request.
All additional Project Agreement costs will be shared between the City of Carlsbad and the City
of Vista as described within the Project Agreement. The value of Amendment No. 3 between
the City of Carlsbad and the City of Vista is $1,668,108. The City of Vista is responsible for
approximately $1,085,139 {65%} and is using state revolving funds to pay for its portion of the
Project. The City of Carlsbad is responsible for approximately $582,969 (35%} funded from the
sewer connection fee fund.
A summary of the existing and proposed project budgets are shown in the table below:
AGUA HEDIONDA SEWER LIFT STATION, VISTA/CARLSBAD INTERCEPTOR SEWER REACHES
VCllB -VClS, AND RECYCLED WATER LINE PROJECT
CIP PROJECT NOS. 3492, 3886, AND 3949
Current Appropriation $60,630,000
Current Expenditures/Encumbrances $60,472,179
TOTAL AVAILABLE $157,821
ADDITIONAL PROJECT COSTS
Agreement -Arcadis U.S., Inc. $423,589
Design Engineering and Construction Support $75,000
Legal Fees (Estimated} $500,000
Staff Administrative Costs and Project Contingency (Estimated} $125,000
TOTAL ESTIMATED ADDITIONAL PROJECT COSTS $1,123,589
REMAINING BALANCE ($965,768)
ADDITIONAL APPROPRIATION NEEDED $965,768
A summary of the City of Carlsbad and City of Vista Project Agreement budget is shown in the
table below:
AGREEMENT BETWEEN THE CITY OF CARLSBAD AND THE CITY OF VISTA FOR THE
CONSTRUCTION OF THE AGUA HEDIONDA SEWER LIFT STATION, VISTA/CARLSBAD
INTERCEPTOR SEWER REACHES VCllB-VClS, AND RECYCLED WATER LINE PROJECT
CIP PROJECT NOS. 3492, 3886, AND 3949
Project Agreement Original Budget (Resolution No. 2015-039} $56,702,500
Amendrnent No. 1 (Resolution No. 2017-223} $1,754,470
Amendment No. 2 (Resolution No. 2018-142} 0
Amendment No. 3 (Proposed} $1,668,108
TOTAL PROPOSED BUDGET IN AGREEMENT $60,125,078
Next Steps
With execution of the proposed agreements, staff will continue to coordinate with Arcadis U.S.,
Inc. and B&C as the city resolves outstanding contractual and technical issues. Upon resolution
of the pumping system issues, Arca dis U.S., Inc. will provide construction management and
June 11, 2019 Item #11 Page 5 of 32
inspection services through the completion of the Project. The final project completion date is
estimated to be in the spring of 2020.
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.
Approval of the professional services agreements with Arcadis U.S., Inc. and B&C is exempt
from the requirements of CEQA pursuant to Public Resources Code Section 21065. This action
does not constitute a "project" within the meaning of CEQA in that it has no potential to cause
either a direct physical change in the environment, or a reasonably foreseeable indirect physical
change in the environment, and therefore does not require environmental review.
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. City Council Resolution.
2. City Council Resolution.
3. Location Map.
June 11, 2019 Item #11 Page 6 of 32
RESOLUTION NO. 2019-082
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, AUTHORIZING EXECUTION OF AN AGREEMENT WITH ARCADIS
U.S., INC. TO PROVIDE CONSTRUCTION MANAGEMENT AND INSPECTION
SERVICES FOR THE AGUA HEDIONDA SEWER LIFT STATION,
VISTA/CARLSBAD INTERCEPTOR SEWER REACHES VC11B-VC15 AND
RECYCLED WATER LINE, CAPITAL IMPROVEMENT PROGRAM (CIP) PROJECT
NOS. 3492, 3886 AND 3949, IN AN AMOUNT NOT TO EXCEED $423,589 AND
APPROPRIATING $965,768 IN ADDITIONAL FUNDS FROM THE SEWER
CONNECTION FEE FUND FOR CHANGES TO THE PROJECT.
EXHIBIT 1
WHEREAS, on Nov. 11, 2014, the City Council of the City of Carlsbad, California adopted
Resolution No. 2014-257 approving an agreement with Arcadis U.S., Inc. to provide construction
management and inspection services for the Agua Hedionda Sewer Lift Station, Vista/Carlsbad
Interceptor Sewer Reaches VC11B-VC15 and Recycled Water Line, CIP Project Nos. 3492, 3886 and
3949 (Project); and
WHEREAS, it has been determined that the original terms of the agreement have been
exhausted and therefore no further amendments may be made to the existing agreement; and
WHEREAS, staff desires to enter into a new agreement with Arcadis U.S., Inc. to provide
construction management and inspection services through completion of the Project; and
WHEREAS, Section 3.28.060 of the Carlsbad Municipal Code requires that formal bidding
procedures be utilized when the anticipated cost of the professional services is greater than $35,000.00
per agreement year; and
WHEREAS, Section 3.28.ll0(N) of the Carlsbad Municipal Code allows for formal bidding
procedures to be exempted, as determined by the awarding authority, when in the discretion of the
awarding authority solicitations of bids or proposals would be impractical, unavailing, impossible, or
not in the best interests of the city; and
WHEREAS, staff and the city's purchasing officer recommend that an exemption to the formal
bidding procedures be granted as it is in the best interest of the city (Attachment A); and
WHEREAS, staff and Arcadis U.S., Inc. negotiated the scope of work and the associated fee in an
amount not to exceed $423,589 to provide construction management and inspection services for the
Project; and
June 11, 2019 Item #11 Page 7 of 32
EXHIBIT 1
WHEREAS, the City Council has determined it necessary and in the public interest to allow for
an exemption of the formal bidding procedures and to execute an agreement with Arca dis U.S., Inc. for
construction management and inspection services for the Project; and
WHEREAS, a net additional appropriation in the amount of $965,768 from the Sewer
Connection Fee Fund to the Project's budget is requested to fund the Arcadis agreement, design
engineering and construction support services, anticipated legal fees, and the estimated staff
administrative costs and project contingency; and
WHEREAS, the City of Carlsbad will be reimbursed by the City of Vista for its portion of the
additional costs in accordance with the Project Agreement as approved by City Council Resolution No.
2015-039, and as amended.
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. Pursuant to Section 3.28.060 of the Carlsbad Municipal Code, the City Council
determines it is in the best interests of the city to enter into an agreement with Arcadis
U.S., Inc. for construction management and inspection services without formal bidding
procedures.
3. That the Mayor is hereby authorized and directed to execute the agreement, attached
hereto as Attachment B, with Arcadis U.S., Inc. to provide construction management
and inspection services for the Agua Hedionda Sewer Lift Station, Vista/Carlsbad
Interceptor Sewer Reaches VC11B-VC15 and Recycled Water Line, CIP Project Nos. 3492,
3886 and 3949, in an amount not to exceed $423,589.
4. That the Deputy City Manager, Administrative Services, is hereby directed to
appropriate additional funds from the Sewer Connection Fee Fund, in the amount of
$423,589, to the Project's budget for the agreement with Arcadis U.S., Inc.
5. That the Deputy City Manager, Administrative Services, is hereby directed to
appropriate additional funds from the Sewer Connection Fee Fund, in the amount of
$542,179, to the Project's budget for design engineering and construction support
services, anticipated legal fees, staff administrative costs and Project contingency.
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EXHIBIT 1
PASSED, APPROVED AND ADOPTED at a Special Meeting of the City Council of the City of
Carlsbad on the 11th day of June, 2019, by the following vote, to wit:
AYES:
NAYS:
ABSENT:
Hall, Blackburn, Bhat-Patel, Schumacher, Hamilton.
None.
None. M1Ji!YI
,$~ -for BARBARA ENGLESON, City Clerk
(SEAL)
June 11, 2019 Item #11 Page 9 of 32
TO:
. FROM:
RE:
DATE :
PURCHASING OFFICER
ENGINEERING MANAGER
( City of
Carlsbad
PURCHASING EXEMPTION FOR CONTRACTOR ARCADIS U.S ., Inc.
MAY 1, 2019
The Vista/Carlsbad Interceptor Sewer was constructed in the early 1960s and extends
. approximately eight miles northeasterly from the Encina Water Pollution Control Facility to the
City of Vista. The interceptor sewer is identified as pipeline Reaches VC1 through VC15 and
includes the Buena Vista and Agua Hedionda lift stations.
The Project replaces existing facilities with larger pipes and pumps to increase sewer capacity
and improve reliability within the lower portion of the Vista/Carlsbad Interceptor Sewer
system. The Project is in the City of Carlsbad beginning at the north shore of the Agua Hedionda
Lagoon and extending southerly, approximately 2.3 miles, to the Encina Water Pollution Control
Facility.
On May 5, 2015 the Carlsbad City Council adopted Resolution No. 2015-124, authorizing the
award of a contract with Pulice Construct ion, Inc. (Contractor) to construct the Project for an
amount not to exceed $44,195,300. Soon after the award of the contract, the Project
encountered unforeseen and changed conditions that delayed the construction schedule .
Recently, as the Project has entered the closeout phase of the contract, new impacts including
construction delays and performance issues associated with the newly-constructed pumping
system have further delayed the Project. The city is cur r ently working to resolve outstanding
construction claims as well as performance issues associated with the newly constructed
pumping system.
On Nov. 11, 2014, the Carlsbad City Council adopted Resolution No. 2014-257 approving an
agreement with Arcadis U.S., Inc. to provide construction management and inspection services
for the Project. In subsequent yea rs, amendments were issued to increase the scope to include
environmental monitoring and repo.rting, raised the funding limit to $5,181,320 and extended
the agreement duration. Staff seeks to amend the current agreement with Arcadis U.S ., Inc. to
provide additional construction management and inspection services. However, due to the
extended duration of the Project, the City Attorney's Office and Contract Administration staff
have determined that no further amendments may be made to the existing agreement.
As a result of this determination, staff desires to enter into a new agreement with Arcadis U.S.,
Inc. to provide the city with support in its defense of construction claims, to administer technical
support as the city seeks resolution for the issues associated with the pumping system, and to
provide construction management and inspection services through the completion of the
Project .
Attachment A
June 11, 2019 Item #11 Page 10 of 32
The city's procurement process requires that formal bidding procedures be utilized when the
anticipated cost of the professional services is greater than $35,000.00 p·er agreement year.
However, the CMC allows for an exemption from the formal bidding procedures if, in the
determination by the awarding authority, the exemption is in the best interests of the city. CMC
Section 3.28.110, subsection N states that an exemption may be provided for:
Situations where solicitations of bids or proposals for goods, services and/or professional
services would be, in the discretion of the awarding authority, impractical, unavailing,
impossible, or not in the best interests of the city. {Ord. CS-002 § 2, 2008)
Staff believes that forgoing the solicitation process and entering into a new agreement with
Arcadis U.S., Inc. is with merit and of benefit to the city for the following reasons:
1. The city is actively working to resolve outstanding construction claims and Project
issues. Arcadis U.S., Inc. has a comprehensive understanding of the Project's scope of
. work and first-hand knowledge of the Project's history, issues, and the Contractor's
actions over the past four and half years. Arcadis U.S. lnc.'s support is critical for the
city's successful resolution of these matters.
2. Time is of the essence. The formal bidding procedures, including the public solicitation
for proposals for multiple bidders, would necessitate that the city postpone many of its
current resolution efforts which would likely result in additional project delays, accrual
of time-based costs, penalties and risk to the operation of the existing Agua Hedionda
Lift Station. Arcadis U.S., Inc. has specific knowledge and experience with the Project
and as such they are uniquely qualified to meet the demands of the Project within the
required timeframe(s).
In summary, staff believes that Arcadis U.S., Inc. is uniquely fit and thus the most qualified firm
to meet the city's requirements. Staff requests the Purchasing Officer's consideration for
recommendation of an exemption to the formal bidding procedures under Section 3.28.110 of
the Carlsbad Municipal Code for the reasons enumerated above.
Thank you,
Engineering Manager
Approval for Exemption
f!✓•
cc: Terry Smith, P.E., District Engineer
Eleida Felix Yackel, Senior Contract Administrator, Public Works
June 11, 2019 Item #11 Page 11 of 32
DocuSign Envelope ID: 48050DAF-C1 F9-4FA2-B322-D06BD40821 B6
PSA 19-802TRAN
AGREEMENT FOR CONSTRUCTION MANAGEMENT AND INSPECTION SERVICES FOR
THE AGUA HEDIONDA SEWER LIFT STATION, VISTA/CARLSBAD INTERCEPTOR
SEWER REACHES VC11B-VC15, AND RECYCLED WATER LINE SERVICES
ARCADIS U.S., INC.
THIS AGREEMENT is made and entered into as of the /3 day of
J:'.v n f , 2019, by and between the CITY OF CARLSBAD, a municipal
corporation, ("City"), and ARCADIS U.S., INC., a Delaware corporation, ("Contractor").
RECITALS
A. City requires the professional services of a consultant that is experienced in
construction management and inspection services.
B. Contractor has the necessary experience in providing professional services and
advice related to construction management and inspection services.
C. Contractor has submitted a proposal to City and has affirmed its willingness and
ability to perform such work.
NOW, THEREFORE, in consideration of these recitals and the mutual covenants
contained herein, City and Contractor agree as follows:
1. SCOPE OF WORK
City retains Contractor to perform, and Contractor agrees to render, those services (the
"Services") that are defined in attached Exhibit "A", which is incorporated by this reference in
accordance with this Agreement's terms and conditions.
2. STANDARD OF PERFORMANCE
While performing the Services, Contractor will exercise the reasonable professional care and skill
customarily exercised by reputable members of Contractor's profession practicing in the
Metropolitan Southern California Area, and will use reasonable diligence and best judgment while
exercising its professional skill and expertise.
3. TERM
The term of this Agreement will be effective for a period of two (2) years from the date first above
written. The City Manager may amend the Agreement to extend it for one (1) additional one (1)
year periods or parts thereof. Extensions will be based upon a satisfactory review of Contractor's
performance, City needs, and appropriation of funds by the City Council. The parties will prepare
a written amendment indicating the effective date and length of the extended Agreement.
4. TIME IS OF THE ESSENCE
Time is of the essence for each and every provision of this Agreement.
5. COMPENSATION
The total fee payable for the Services to be performed during the initial Agreement term will be
four hundred twenty-three thousand, five hundred eighty-nine dollars ($423,589). No other
compensation for the Services will be allowed except for items covered by subsequent
amendments to this Agreement. If the City elects to extend the Agreement, the amount shall not
exceed one hundred thousand dollars ($100,000) per Agreement year. The City reserves the
right to withhold a ten percent (10%) retention until City has accepted the work and/or Services
specified in Exhibit "A".
Incremental payments, if applicable, should be made as outlined in attached Exhibit "A".
1 of 16 City Attorney Approved Version 6/12/18
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DocuSign Envelope ID: 48050DAF-C1F9-4FA2-B322-D06BD40821B6
PSA 19-802TRAN
27. AUTHORITY
The individuals executing this Agreement 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 Agreement.
CONTRACTOR
ARCADIS U.S., INC., a Delaware
corporation
By:
By:
(sign here)
Jon Westervelt. Vice President
(print name/title)
(sign here)
Ellen M. Hooper, Assistant Treasurer
(print name/title)
CITY OF CARLSBAD, a municipal
corporation of the State of California
By:
ATTEST:
~ -t'lf Barbara Engleson, City Clerk
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
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RESOLUTION NO. 2019-083
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, AUTHORIZING EXECUTION OF AMENDMENT NO. 3 TO THE
AGREEMENT BETWEEN THE CITY OF CARLSBAD AND THE CITY OF VISTA FOR
THE CONSTRUCTION OF THE AGUA HEDIONDA SEWER LIFT STATION,
VISTA/CARLSBAD INTERCEPTOR SEWER REACHES VC11B-VC15 AND
RECYCLED WATER LINE, CAPITAL IMPROVEMENT PROGRAM (CIP) PROJECT
NOS. 3492, 3886 AND 3949.
EXHIBIT 2
WHEREAS, the Agua Hedionda Sewer Lift Station and Vista Carlsbad Interceptor Sewer, Reaches
VC11-VC15, Project Nos. 3492, 3886 and 3949 (Project) is jointly owned by the City of Carlsbad and the
City of Vista; and
WHEREAS, on Feb. 10, 2015, City Council approved an Agreement with the City of Vista (Project
Agreement) for funding of construction phase services for the Project by adoption of Resolution No.
2015-039; and
WHEREAS, on Dec. 5, 2017, City Council adopted Resolution No. 2017-223, approving
Amendment No. 1 to the Project Agreement between the City of Carlsbad and the City of Vista; and
WHEREAS, on July 24, 2018, City Council adopted Resolution No. 2018-142, approving
Amendment No. 2 to the Project Agreement between the City of Carlsbad and the City of Vista; and
WHEREAS, the City of Carlsbad and the City of Vista desire to enter into Amendment No. 3 to
increase the Project Agreement budget by $1,668,108 for changes to the Project scope of work
requiring design engineering and construction support services, estimated legal fees and construction
management and inspection services; and
WHEREAS, the Project has been delayed beyond the contract completion date and the forecast
completion date is unknown and dependent upon the identification and resolution of performance
issues associated with the newly constructed pump station; and
WHEREAS, the City of Carlsbad and the contractor, Pulice Construction, Inc., have been unable
to resolve performance issues associated with the newly constructed pump station; and
WHEREAS, the City of Carlsbad has hired a third-party consultant to conduct a thorough analysis
of the newly constructed pump station; and
June 11, 2019 Item #11 Page 28 of 32
EXHIBIT 2
WHEREAS, the City of Carlsbad seeks to amicably resolve the pump system issue(s) with Pulice
Construction, Inc., by identifying the causal factors impacting the performance of the newly
constructed pump station; 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 Project Agreement between the City of
Carlsbad and the City of Vista to increase the upper budget limit for Vista's cost share to ensure timely
reimbursement payment.
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 Project Agreement between the City of Carlsbad and the City of Vista for construction of
the Agua Hedionda Sewer Lift Station and Vista/Carlsbad Interceptor Sewer Reaches VC11B-VC15 and
Recycled Water Line, Project Nos. 3492, 3886 and 3949, which is attached hereto as Attachment A.
PASSED, APPROVED AND ADOPTED at a Special Meeting of the City Council of the City of
Carlsbad on the 11th day of June, 2019, by the following vote, to wit:
AYES:
NAYS:
ABSENT:
Hall, Blackburn, Bhat-Patel, Schumacher, Hamilton.
None.
None.
(SEAL)
June 11, 2019 Item #11 Page 29 of 32
Attachment A
THIRD AMENDMENT TO THE PROJECT AGREEMENT BETWEEN THE CITY OF VISTA
AND THE CITY OF CARLSBAD FOR CONSTRUCTION OF THE AGUA HEDIONDA SEWER
LIFT STATION AND VISTA/CARLSBAD INTERCEPTOR SEWER, REACHES VC11-VC15
THIS THIRD AMENDMENT ("Third Amendment") to the Project Agreement between the
City of Vista and the City of Carlsbad, dated February 10, 2015 ("Project Agreement"), is made
and entered into as of the 13 day of P\, L~ 1 "'-d,:\: , 2019 (''Third
Amendment Date"), by and between the City of Vista, hartered municipal corporation ("Vista"),
and the City of Carlsbad, a chartered municipal corporation ("Carlsbad").
RECITALS
A. Carlsbad and Vista first entered into a Project Agreement for the construction of
the Agua Hedionda Sewer Lift Station and Vista/Carlsbad Interceptor Sewer, Reaches VC11-
VC15 on February 10, 2015.
B. A First Amendment to the Project Agreement was executed December 8, 2017 to
provide additional funding in the amount of $1,754,470 for additional construction costs
associated with unforeseen issues and delays as well as additional construction management
and inspection services required to complete the Project for a total Project Budget of $58,456,970.
C. A Second Amendment to the Project Agreement was executed September 11,
2018 to modify the terms of the Project Agreement to include legal services necessary to complete
the Project.
D. Vista and Carlsbad desire to enter into a Third Amendment to the Project
Agreement to provide additional funding in the amount of $1,668,108 for legal services, design
engineering and construction support, and construction management and inspection services to
address unforeseen issues and delays associated with the contractor's claim of changed
conditions related to the microtunneling scope of work and performance issues related to the lift
station pumping system, for a total Project Budget of $60,125,078.
E. The contractor's claim of a changed condition pertains to the microtunneling scope
of work (VC14-VC15) where Vista has 56.1 % ownership and Carlsbad has 43.9% ownership,
therefore the cost of the legal services to support the resolution of this claim shall be shared
between Vista and Carlsbad in those proportions.
F. The performance issue(s) related to the pumping system pertains to the lift station
(VC 12) where Vista has 69.1 % ownership and Carlsbad has 30.9% ownership, therefore the cost
of the legal services, design engineering and construction support, and construction management
and inspection services to support the resolution of this issue shall be shared between Vista and
Carlsbad in those proportions.
June 11, 2019 Item #11 Page 30 of 32
NOW, THEREFORE, in consideration of these recitals and the mutual covenants
contained herein, Vista and Carlsbad agree as follows:
1. The Project Budget is increased by $1,668,108 to $60,125,078 to account for the
additional legal services, design engineering and construction support, and construction
management and inspection services required to complete the Project.
2. All other provisions of the Project Agreement, as may have been amended from
time to time, will remain in full force and effect.
CITY OF VISTA, a chartered municipal
corporation
BY: ' r Judy Rit~ayor
ATTEST:
AP~
Da~
2
CITY OF CARLSBAD, a chartered
municipal corporation
APPROVED AS TO FORM:
City Attorney Approved Version 1/30/13
June 11, 2019 Item #11 Page 31 of 32
EXISTING
AGUA HEOIONOA
LIFT STATION
LEGEND:
-VC11B-VC15
•••••• VC1 -VC11A
PROJECT NAME
LOCATION MAP
AGUA HEDIONDA LIFT STATION & VISTA/CARLSBAD
INTERCEPTOR SEWER REACHES VC118 THROUGH VC15
PROJECT
NUMBER
3492,
3886 & 3949
EXHIBIT
3
(
June 11, 2019 Item #11 Page 32 of 32