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HomeMy WebLinkAbout2021-01-26; City Council; ; Amendment No. 5 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 InMeeting Date: Jan. 26, 2021 To: Mayor and City Council From: Scott Chadwick, City Manager Staff Contact: Dave Padilla, Engineering Manager dave.padilla@carlsbadca.gov, 760-603-7356 Vicki Quiram, Utilities Director vicki.quiram@carlsbadca.gov, 760-603-7307 Subject: Amendment No. 5 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 Districts: 1, 2 and 3 Recommended Action Adopt a resolution to: •Authorizing the deputy city manager, administrative services, to transfer $1,200,000 from the Sewer Connection Fee Fund to the Sewer Replacement Fund as a partial repayment of the outstanding Sewer Connection Fee Fund loan balance •Authorizing the deputy city manager, administrative services, to appropriate additional funds from the Sewer Replacement Fund to the Project Budget in the amount of $1,200,000 •Authorize the mayor to execute Amendment No. 5 to the project agreement for construction of the Agua Hedionda Sewer Lift Station and Vista/Carlsbad Interceptor Sewer, Reaches VC11B–VC15,1 between the City of Carlsbad and the City of Vista •Authorize the city manager to approve contract documents and reimbursement payments to Vista for Carlsbad’s share of the remaining project work in an amount not to exceed $1,545,000 Executive Summary This item is regarding Agua Hedionda Lift Station Capital Improvement Program projects 3492, 3886 and 3949. The lift station is jointly owned by the cities of Carlsbad and Vista and pumps wastewater flow from both cities to the Encina Water Pollution Control Facility for treatment. While the lift station itself is in District 2, portions of the pipeline included in the project traverse Districts 1 and 3. This project, which is to replace the lift station and increase its capacity, started in 2015, but was delayed in 2019 because of a construction contract dispute 1 A reach is a specifically defined segment of sewage pipe. Jan. 26, 2021 Item #1 Page 1 of 14 related to the performance of the pumping system. As had been agreed upon by both cities, Carlsbad started as the lead agency in executing the project. In October 2019, Carlsbad, with the concurrence of Vista, issued a unilateral deductive change order in the amount of $834,888 to remove the remaining non-disputed project work from the construction contractor's scope of work and pursued an alternative method of completing the remaining work. The remaining work includes final grading and paving, construction of a storm water detention basin and related storm drain improvements, relocation of two temporary pumps that provide back-up pumping capacity for the lift station and demolition of the existing lift station. Carlsbad and Vista staff agreed that Vista would oversee the remaining work. Vista proposed to use the progressive design-build2 delivery method because of its staff’s familiarity with the process, the ability to provide owner input during the design phase of the project and a short procurement period. At that time, Vista estimated completing the remaining work by summer 2020 at a cost of approximately $1.5 million in total for both cities. On April 14, 2020, the Carlsbad City Council authorized approval of Amendment No. 4 to the project agreement between Vista and Carlsbad through Resolution No. 2020-060. This amendment transferred the lead agency role from Carlsbad to Vista for completion of the remaining work. According to the agreement, Carlsbad’s share of the estimated cost of $1.5 million was 30.9%, or $463,500, which was encumbered in the project budget and is still available to be applied toward Carlsbad’s future project costs. In October 2020, Vista received one proposal from the design-build team of TC Construction - Michael Baker, Inc. This proposal included a 50-item list of improvements requested by the facility operator Encina Water Authority, which Carlsbad and Vista agreed were necessary for the project and should be included in the project pending available funding. After two rounds of negotiation, the final fee totaled $4.29 million, nearly three times the original estimate of $1.5 million that was approved by the city councils of both agencies in Amendment No. 4. If Vista’s owner advisor services are extended through the design and construction phases and with 5% contingency, the total cost of the progressive design-build effort is estimated to be approximately $5 million. Carlsbad’s share of this cost is $1,545,000. Staff has explored alternatives to complete the project at a lower cost but have not identified any options that eliminate the potential risks associated with further project delays. Discussion Background The Vista/Carlsbad Interceptor Sewer was built in the early 1960s and extends approximately eight miles northeast from the Encina Water Pollution Control Facility in Carlsbad to Vista. The interceptor sewer3 is identified in city documentation 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 2 Progressive design-build refers to a process in which the engineering design entity and the contractor comprise a team, under contract with the owner, to collaborate during the earliest phases of a project’s development and collectively participate in developing project solutions. 3 An interceptor sewer, a component of a sewage collection system, is a large collector pipe that receives flow from other sewer lines and conveys the flow to a wastewater treatment plant. Jan. 26, 2021 Item #1 Page 2 of 14 the southernmost portion of the Vista/Carlsbad interceptor sewer system. The project is located entirely within Carlsbad, beginning at the north shore of the Agua Hedionda Lagoon and extending south approximately 2.3 miles to the Encina Water Pollution Control Facility. Vista and Carlsbad entered into the project agreement on Jan. 27, 2015. The agreement designated Carlsbad as the lead agency for its planning, design and construction. On Feb. 10, 2015, the City Council adopted Resolution No. 2015-039, approving an agreement with Vista for funding construction phase services for the project. On May 19, 2015, the City Council adopted Resolution No. 2015-124, authorizing award of a contract to the contractor to construct the project for an amount not to exceed $44,195,300. The project subsequently encountered unforeseen 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 resolution nos. 2017-223, 2018-142 and 2019-083, approved by the City Council on Dec. 5, 2017; July 24, 2018; and Aug. 13, 2019, respectively, to amend the city’s professional service agreements for construction management and inspection services and for design engineering and construction support services. Construction of the project is approximately 95% complete. A dispute with the contractor regarding the pumping system has delayed its completion. With Vista’s concurrence, Carlsbad issued a unilateral deductive change order to the contractor on Oct. 23, 2019, in the amount of $834,888, deleting the remaining work from the contract. Carlsbad and Vista staff recommended that Vista procure a progressive design-build team under a new contract to complete the remaining work. To initiate this process, Vista approved the award of a qualification-based, professional services contract on Jan. 28, 2020, with CDM Smith Inc. in the amount of $139,920 to serve as the owner’s advisor. The owner’s advisor developed the procurement and request for proposal documents for a progressive design-build solicitation in which design-build teams, the bidders, were to submit proposals for the completion of the remaining work. The owner’s advisor also developed a project implementation plan. On April 14, 2020, the Carlsbad City Council adopted Resolution No. 2020-060, approving Amendment No. 4, which provides for Carlsbad and Vista to share the costs for the completion of the remaining work, including the owner’s advisor services, in proportion to their respective ownership of the lift station: 69.1% for Vista and 30.9% for Carlsbad. Based on Carlsbad’s percentage ownership, its share of the owner’s advisor services contract would be $43,235, plus a 5% markup for construction administration and project management services provided by Vista, for a total of $45,397. (The lift station is within the pipe segment designated as Reach VC12.) Vista initially estimated the cost to complete the remaining work and the owner’s advisor services to be $1.5 million. Amendment No. 4 increased the project budget by this amount, raising the total project budget from $60,125,078 to $61,625,078 and appropriating $345,276 from the Sewer Connection Fee Fund to fund Carlsbad's share. Carlsbad's share of the remaining project work, including owner advisor services, was not to exceed $463,500. During preparation of the Vista Progressive Design-Build request for proposals, the Encina Wastewater Jan. 26, 2021 Item #1 Page 3 of 14 Authority, as operator of the facility, requested 50 additional system optimization and safety improvements that would allow for the proper operation and maintenance of the facility. The agencies understood that, although the cost for these additional improvements was not included in the cost estimate for the remaining work, this additional work would be included in the progressive design-build contract if Vista and Carlsbad mutually agreed and sufficient funding were available. Carlsbad, Vista and Encina Wastewater Authority staff agree that this additional work should be completed now or in the very near future. In October 2020, Vista received one proposal from TC Construction – Michael Baker, Inc. as the design-build team for a fee of $4.34 million. The bid included the 50-item list of improvements. Though Vista encouraged other contractors who attended the pre-bid meeting to bid on the project, only one proposal was received. This is likely because of the current high demand for construction contractors and the risk associated with relocating the two back-up pumps. Furthermore, the risk in a progressive design-build project is mostly held by the design-build team. Based on TC Construction’s proposed construction schedule, pump relocation is scheduled to occur in August and September 2021, prior to the rainy season and peak wet weather period. This scheduling constraint may have influenced the bid. Two negotiation sessions on the scope of services and fees with TC Construction culminated in a final fee of $4.29 million, which is nearly three times the original estimate of $1.5 million that was presented and approved by the city councils of both agencies in Amendment No. 4. In addition to the progressive design-build fee increase, the cost to extend owner’s advisor services for project management and design and environmental review services during development of the guaranteed maximum price will be $112,000. If that price is within the project budget and Vista and Carlsbad agree to proceed with construction, then owner’s advisor services will be further extended to cost an estimated $350,000, bringing the total estimated cost to $4,752,000. Note that the final guaranteed maximum price for construction of the completed project is developed upon completion of the 60% design, so the fee is subject to revision until that time. For budgeting purposes and to include a 5% contingency, the total estimated cost of the progressive design-build effort is $5,000,000. On Nov. 9, 2020, in consideration of the fee increase, Carlsbad staff contacted Vista staff to discuss options to reduce the fee and whether Carlsbad could support the project completion at this cost. Vista’s recommended approach was to proceed with awarding the progressive design-build contract in December 2020 to complete the work in a timely manner. Based on the lack of bidders’ interest in the project, Vista’s staff does not expect a significantly lower bid to complete the remaining work in a timely manner using any other project delivery method. Only a portion of Carlsbad’s reserves are available for this project – the $463,500 that was authorized but not yet spent in Amendment No. 4. However, finance staff can transfer $1.2 million from the Sewer Connection Fee Fund to the Sewer Capacity Fee Fund to refund a previous transfer from the opposite direction and free up the funds needed to complete this project. By utilizing the $463,500 amount that is currently encumbered for the remaining work and the transfer of $1.2 million, the city will have enough funding available for Carlsbad’s share of the project, including the 50-item Encina Wastewater Authority’ list and staff expenses. Jan. 26, 2021 Item #1 Page 4 of 14 Alternatives considered Carlsbad’s share of costs for any option is 30.9% of the total cost. A sum of $463,500 was previously authorized in Amendment No. 4 and is available to partially cover Carlsbad’s share of the total costs. The options before the City Council are: Option 1: Proceed with the progressive design-build approach for the remaining project work and include the Encina Wastewater Authority’s list of improvements. Construction would commence in August 2021, and Carlsbad’s share of the progressive design-build cost and owner’s advisor services would be $1,545,000. The existing temporary pumps will be used this winter to handle peak sewer flows, which cannot be pumped by the Agua Hedionda Lift Station in its present condition. Option 2: Proceed with the progressive design-build approach but delay the Encina Wastewater Authority 50-item list of improvements. Higher costs are anticipated if the authority improvements are delayed. Carlsbad’s estimated share of the progressive design-build cost and owner’s advisor services would be $1,437,000. Option 3: Transfer the lead agency role back to Carlsbad and re-package and re-bid the project via a design-bid-build approach for the remaining project work only. The Encina Wastewater Authority’s list of improvements would be excluded from this option and likely developed into a future Capital Improvement Program project. The extent of participation from other bidders on a design-bid-build effort is unknown and the bid price would be subject to the bidding climate at that time. Completion of the project would be delayed a minimum of eight months. Carlsbad’s estimated share of costs under this option is $1,280,000. Other considerations The cost of Vista’s progressive design-build contract includes the 50-item Encina Wastewater Authority list of improvements, but does not include any work that may be needed to address outstanding issues associated with the performance of the lift pumps. The potential solution to resolve the lift pump performance issues includes fabrication and installation of new impellers by the original contractor, which along with subsequent testing and verification of their performance are anticipated to be completed by early fall 2021. The schedule for impeller replacement will need to be accommodated by the progressive design-build team, and the schedule may still be delayed for other unforeseen reasons. If the new impellers do not solve the lift pump performance issues, currently planned wastewater Capital Improvement Program projects will need to be delayed for funding additional work at the Agua Hedionda Lift Station. Conclusion and recommendation The progressive design-build project delivery method managed by the City of Vista is the fastest approach to get the project built and in operation to arrive at construction and project completion and requires the least amount of staff resources. The alternatives evaluated may offer some cost savings but are less desirable because of the longer period required to complete the project, additional staff time needed, the uncertainty of the bidding climate in the future and potential risks associated with project delays. Jan. 26, 2021 Item #1 Page 5 of 14 Staff recommends the remaining project work and the Encina Wastewater Authority 50-item list of improvements be completed under Vista’s oversight and further recommends the City Council: 1. Authorize the deputy city manager, administrative services, to transfer $1,200,000 from the Sewer Connection Fee Fund to the Sewer Replacement Fund as a partial repayment of the outstanding Sewer Connection Fee Fund loan balance 2. Authorize the deputy city manager, administrative services, to appropriate additional funds from the Sewer Replacement Fund to the Project Budget in the amount of $1,200,000 3. Authorize the mayor to execute Amendment No. 5 to the project agreement for construction of the Agua Hedionda Sewer Lift Station and Vista/Carlsbad Interceptor Sewer, Reaches VC11B–VC15, between the City of Carlsbad and the City of Vista 4. Authorize the city manager to approve contract documents and reimbursement payments to Vista for Carlsbad’s share of the remaining project work in an amount not to exceed $1,545,000 Fiscal Analysis All project costs shall be shared between the City of Carlsbad and the City of Vista as described in the project agreement and subsequent amendments. Based on a total estimated progressive design-build cost of $5,000,000 for the remaining work, including the 50-item list of improvements and owner advisor services, Carlsbad’s share of this cost is $1,545,000. Sufficient funds are not available in the Sewer Replacement Fund. To fund the Sewer Replacement Fund, a partial repayment of an outstanding loan from the Sewer Connection Fund to the Sewer Replacement Fund of $1.2 million is required. This transfer will provide enough funds for this request. Agua Hedionda Sewer Lift Station and Vista/Carlsbad Interceptor Sewer Reaches VC11B – VC15, and Recycled Water Line Project Capital Improvement Program project nos. 3492, 3886, and 3949 Current appropriation1 $61,991,044 Current expenditures/encumbrances $61,872,946 TOTAL AVAILABLE $118,0982 Additional project costs Remaining work (estimated) $1,545,000 Encumbered towards the remaining work ($463,500) Staff expenses $118,500 ADDITIONAL APPROPRIATION NEEDED $1,200,000 1. The current appropriation includes $365,966 in costs that do not fall within the VC Project Agreement between the City of Vista and the City of Carlsbad related to costs that predate and were not included in the cost-share agreement. 2. Reserved for legal fees. Jan. 26, 2021 Item #1 Page 6 of 14 A summary of the project agreement budget is shown in the table below: 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 Project agreement original budget (Resolution No. 2015-039) $56,702,500 Amendment No. 1 (Resolution No. 2017-223) $1,754,470 Amendment No. 2 (Resolution No. 2018-142) $0 Amendment No. 3 (Resolution No. 2019-083) $1,668,108 Amendment No. 4 (Resolution No. 2020-060) $1,500,000 Amendment No. 5 (proposed) $3,500,000 TOTAL PROPOSED BUDGET IN AGREEMENT $65,125,078 Note: Some figures may be rounded. Next Steps If the proposed recommendations are authorized, Carlsbad and Vista staff will proceed with Option 1 at a cost to Carlsbad of $1,545,000 to pay for completion of the remaining work, the 50-item Encina Wastewater Authority list and owner’s advisor services. If the guaranteed maximum price is within the estimate, Vista will authorize to proceed with construction. If the price is higher than the amount authorized by Amendment No. 5, further City Council action will be needed. If the City Council does not authorize the proposed recommendations, the project site will remain incomplete and at risk of violating stormwater regulations for up to two more years. Additional delays may result in additional costs. On Feb. 9, 2021, Vista staff will present the same recommendations to the Vista City Council for approval of their share and approval of Amendment No. 5 to the project agreement. Environmental Evaluation (CEQA) A mitigated negative declaration and mitigation monitoring and reporting program were prepared for the Agua Hedionda Sewer Lift Station, Force Main and Gravity Sewer Replacement Project (Project No. PDP 00-02(C)/SP 144(L)/RP 10-26/CDP 10-17/HDP 10-05/SUP 10-02/HMP 10-03). The mitigated negative declaration was adopted by the City Council on Dec. 6, 2011, in compliance with California Environmental Quality Act Guidelines Section 15074. Execution of Amendment No. 5 is within the scope of the adopted environmental documents and there are no substantial changes to the project, so no additional CEQA analysis is required. Public Notification Public notice of this item was posted in keeping with the Ralph M. Brown Act and it was available for public viewing and review at least 72 hours before the scheduled meeting date. Exhibits 1. City Council Resolution 2. Location map Jan. 26, 2021 Item #1 Page 7 of 14 RESOLUTION NO. 2021-031 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, AUTHORIZING THE MAYOR TO EXECUTE AMENDMENT NO, 5 TO THE PROJECT AGREEMENT FOR CONSTRUCTION OF THE AGUA HEDIONDA SEWER LIFT STATION AND VISTA/CARLSBAD INTERCEPTOR SEWER, REACHES VC11B—VC15, BETWEEN THE CITY OF CARLSBAD ANDTHE CITY OF VISTA, AUTHORIZE THE DEPUTY CITY MANAGER, ADMINISTRATIVE SERVICES, TO TRANSFER $1,200,000 FROM THE SEWER CONNECTION FEE FUND TO THE SEWER REPLACEMENT FUND, APPROPRIATE $1,200,000 FROM THE SEWER REPLACEMENT FUND, AND AUTHORIZE THE CITY MANAGER TO APPROVE CONTRACT DOCUMENTS AND REIMBURSEMENT PAYMENTS TO THE CITY OF VISTA FOR THE CITY OF CARLSBAD'S SHARE OF THE REMAINING PROJECT WORK IN AN AMOUNT NOT TO EXCEED $1,545,000 WHEREAS, on Feb. 10, 2015, the City of Carlsbad (Carlsbad) and the City of Vista (Vista) entered into a Project Agreement for construction of the Agua Hedionda Sewer Lift Station and Vista/Carlsbad Interceptor Sewer, Reaches VC11B-VC15 (Project); and WHEREAS, the Project Agreement designated Carlsbad as the Lead Agency; and WHEREAS, Carlsbad and Vista subsequently amended the Project Agreement on Dec. 8, 2017, to increase the Project's budget to cover unforeseen costs and additional services; on Sept. 11, 2018, to modify the Project Agreement's terms to include legal services necessary to complete the Project; and on Aug. 13, 2019, to increase the Project's budget to cover unforeseen costs and additional services; and WHEREAS, Carlsbad and Vista amended the Project Agreement for the fourth time on April 14, 2020 to transfer Lead Agency responsibility to Vista for completion of certain work (remaining work) using the progressive design-build method of project delivery and to increase the Project Budget by $1,500,000 to fund the cost of the remaining work, for a total Project Budget of $61,625,078; and WHEREAS, as the first step in the design-build procurement method, Vista procured Owner's Advisor services in the amount of $139,920, which is included in the $1,500,000 funding for the remaining work; and WHEREAS, the location of the remaining work is at the Agua Heclionda Lift Station, Reach VC12, in which Vista owns 69.1% and Carlsbad owns 30.9% of the Project, respectively; and Jan. 26, 2021 Item #1 Page 8 of 14 WHEREAS, Carlsbad and Vista share the cost of the remaining work in proportion to their ownership of Reach VC12; and WHEREAS, Carlsbad's share of the cost of the remaining work was $463,500, which includes Carlsbad's share of the Owner's Advisor services and a five percent markup for construction administration and project management services provided by Vista; and WHEREAS, the City Council authorized the City Manager to approve contract documents and reimbursement payments to the City of Vista for Carlsbad's proportionate share of the remaining work in an amount to not exceed $463,500; and WHEREAS, the Encina Wastewater Authority (EWA) operates the Agua Hedionda Lift Station on behalf of Vista and Carlsbad and requested system optimization and safety improvements and such improvements are deemed beneficial and necessary by Vista and Carlsbad staff; and WHEREAS, Vista solicited public bids for the remaining work and for the system optimization and safety improvements requested by EWA and received one bid for the remaining work at $4.29 million; and WHEREAS, construction of the remaining work and the system optimization and safety improvements requested by EWA will require an extension of the contract scope and fee for Vista's Owner Advisor services for an estimated fee of $112,000 for design phase services and $350,000 for construction phase services; and WHEREAS, a mitigated negative declaration and mitigation monitoring and reporting program were prepared for the Agua Hedionda Sewer Lift Station, Force Main and Gravity Sewer Replacement Project (PDP 00-02(C)/SP 144(L)/RP 10-26/CDP 10-17/HOP 10-05/SUP 10-02/HMP 10-03). The mitigated negative declaration was adopted by the City Council on Dec. 6, 2011, in compliance with the California Environmental Quality Act (CEQA) Guidelines Section 15074; and WHEREAS, execution of Amendment No. 5 is within the scope of the adopted environmental documents and, since there are no substantial changes to the Project, no additional CEQA analysis is required. 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. Jan. 26, 2021 Item #1 Page 9 of 14 2.That the deputy city manager, administrative services, is authorized to transfer $1,200,000 from the Sewer Connection Fee Fund to the Sewer Replacement Fund as a partial repayment of the outstanding Sewer Connection Fee Fund loan balance. 3.That the deputy city manager, administrative services, is authorized to appropriate additional funds from the Sewer Replacement Fund to the Project Budget in the amount of $1,200,000. 4.That the mayor of the City of Carlsbad is authorized and directed to execute Amendment No. 5 to the Project Agreement between the City of Carlsbad and the City of Vista, attached as Attachment A, which increases the Vista/Carlsbad Project Agreement Budget by $3,500,000 to a revised Project Agreement Budget of $65,125,078. 5.That the city manager of the City of Carlsbad, or designee is authorized to approve and execute contract documents and reimbursement payments to the City of Vista for Carlsbad's proportionate share of the remaining work in an amount not to exceed $1,545,000. PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Carlsbad on the 26th day of January 2021, by the following vote, to wit: AYES: Hall, Blackburn, Acosta, Bhat-Patel, Schumacher. NAYS: None. ABSENT: None. MATT HALL, Mayor 46, Pecior 6ome2 PePoj •BARBARA ENGLESON, City Clerk CI C Leo( 011\11i1111111/111/1/4 , CA144 (SEAL) Jan. 26, 2021 Item #1 Page 10 of 14 FIFTH 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 VC11B–VC15 THIS FIFTH AMENDMENT (“Fifth 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 _________________, 2021 (“Fifth Amendment Date”), by and between the City of Vista, a chartered municipal corporation (“Vista”), and the City of Carlsbad, a chartered municipal corporation (“Carlsbad”). RECITALS A.Carlsbad and Vista entered into a Project Agreement for the construction of theAgua Hedionda Sewer Lift Station and Vista/Carlsbad Interceptor Sewer, Reaches VC11B–VC15 (Project) on February 10, 2015. The Project Agreement designated Carlsbad as the Lead Agency. B.Carlsbad and Vista entered into a First Amendment to the Project Agreement onDecember 8, 2017, to provide additional funding in the amount of $1,754,470 for additional construction costs associated with unforeseen issues and delays to the Project as well as additional construction management and inspection services required to complete the Project for a total Project Budget of $58,456,970. C.Carlsbad and Vista entered into a Second Amendment to the Project Agreementon September 11, 2018, to modify the terms of the Project Agreement to include legal services necessary to complete the Project. D.Carlsbad and Vista entered into a Third Amendment to the Project Agreement onAugust 13, 2019, 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.With Vista’s advice and consent, Carlsbad issued a unilateral deductive changeorder, Contract Change Order No. 16, dated October 23, 2019, to Pulice Construction, Inc., in the amount of $834,888.18 to delete the “Remaining Work” on the Project. F.The “Remaining Work” generally consists of demolition of the old sewer lift station, removal of third-party utilities, relocation of emergency standby diesel pumps, landscaping, site lighting, storm drain improvements, final grading, and base and final paving. G.Carlsbad and Vista entered into a Fourth Amendment on May 1, 2020 to name theCity of Vista as the Lead Agency to manage the effort to complete construction of the Remaining Work with a new contractor using the progressive design-build method of project delivery and increased the Project Budget by $1,500,000 to $61,625,078. H.Encina Wastewater Authority, which operates and maintains the Agua HediondaLift Station (AHLS) on behalf of Carlsbad and Vista, is requesting safety, regulatory compliance, Jan. 26, 2021 Item #1 Page 11 of 14 and operability improvements (Encina Improvements) to AHLS which are not in the original project construction documents. Carlsbad and Vista mutually agree that these improvements should be completed with the Remaining Work. I. Carlsbad and Vista desire to enter into a Fifth Amendment of the Project Agreement to increase the Project Budget by $3,500,000 to $65,125,078 and to allocate this cost in proportion to their ownership of the AHLS, which is 30.9% Carlsbad and 69.1% Vista. NOW, THEREFORE, Vista and Carlsbad agree as follows: 1. With Carlsbad’s advice and consent, Vista will contract with the Design-Build Team of TC Construction, Inc./Michael Baker International (DBT) for Phase 1 – Pre-Construction Services for $696,560. 2. With Carlsbad’s advice and consent, Vista will amend CDM Smith Inc. (CDM) Owner’s Advisor’s (OA) scope of work to extend professional services during Phase 1 for $111,966. Carlsbad agrees to pay its proportionate share of OA services ($34,597) plus a 5% mark up ($5,598) in consideration for construction administration and project management services provided by Vista. 3. The Project Budget is increased by $3,500,000 to $65,125,078. The total cost of the Remaining Work, Encina Improvements, and OA services may not exceed $5,000,000 or the total Project Budget of $65,125,078 without the approval of a separate, subsequent amendment to the Project Agreement. 4. 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: JUDY RITTER, MAYOR ATTEST: KATHY VALDEZ, CITY CLERK By: APPROVED AS TO FORM: DAROLD PIEPER, CITY ATTORNEY By: RISK MANAGEMENT REVIEW: DOLORES GASCON, RISK MANAGER By: CITY OF CARLSBAD, a chartered municipal corporation By: MATT HALL, MAYOR ATTEST: BARBARA ENGLESON, CITY CLERK By: APPROVED AS TO FORM: CELIA A. BREWER, CITY ATTORNEY By: Jan. 26, 2021 Item #1 Page 12 of 14 ATTACHMENT A Vr13.83V, 2021 3 Item #1 Page 13 of 14 2 EXISTING LAGOON BRIDGE ~...---.... VC118 EXISTING AGUA HEDIONDA LIFT STATION LEGEND: VC118-VC15 •••••• VC1 -VC11A PROJECT NAME LOCATION MAP AGUA HEDIONDA LIFT STATION & VISTA/CARLSBAD INTERCEPTOR SEWER REACHES VC11B THROUGH VC15 PROJECT EXHIBIT NUMBER 3492, 3886 & 3949 EXHIBIT 2 Jan. 26, 2021 Item #1 Page 14 of 14 Vicki Quiram, Utilities Director Dave Padilla, Engineering Manager Jan. 26, 2021 Authorization to Execute Amendment No. 5 to the Project Agreement with Vista for Construction of Agua Hedionda Sewer Lift Station Recommendation Adopt a resolution to: •Authorize the Mayor to execute Amendment No. 5 to the Project Agreement for Construction of the Agua Hedionda Sewer Lift Station and Vista/Carlsbad Interceptor Sewer, Reaches VC11B–VC15, between the City of Carlsbad (Carlsbad) and the City of Vista (Vista) •Transfer $1,200,000 from the Sewer Connection Fee Fund to the Sewer Replacement Fund •Appropriate $1,200,000 from the Sewer Replacement Fund •Authorize the City Manager to approve contract documents and reimbursement payments to Vista for Carlsbad’s share of the remaining project work in an amount not to exceed $1,545,000 2 Background •AHLS is jointly owned by the cities of Carlsbad and Vista •Pumps wastewater flow from both cities to the Encina Water Pollution Control Facility for treatment •Project is to replace the lift station and increase its capacity •Construction began in 2015 •Construction delayed in 2019 due to a construction contract dispute 3 Why Amendment No. 5? •Amendment No. 4, Carlsbad and Vista agreed to: –Transfer the management of the construction project to Vista –Complete the project using Progressive Design-Build (PDB) –Cost share in Vista’s Owner Advisor services •One PDB bid received –Included additional system optimization and safety improvements requested by Encina Wastewater Authority (operator) –Exceeds the project cost agreed to in Amendment No. 4 4 Alternatives Considered •Option 1 – Proceed with PDB managed by Vista, include EWA improvements (staff recommendation) •Option 2 –Proceed with PDB but delay the EWA improvements •Option 3 –Transfer the management of the construction project to Carlsbad, re-package and re-bid for design-bid-build •Do nothing 5 Next Steps •On Feb. 9, 2021, Vista staff will present the same recommendation to the Vista City Council and request approval of Amendment No. 5 to the Project Agreement •Carlsbad and Vista staff will proceed with completion of the remaining work, the 50-item EWA list and Owner Advisor services at a cost to Carlsbad of $1,545,000 6 Recommendation •Adopt a resolution: –Authorizing the deputy city manager, administrative services to transfer $1,200,000 from the Sewer Connection Fee Fund to the Sewer Replacement Fund –Authorizing the deputy city manager, administrative services to appropriate additional funds from the Sewer Replacement Fund to the Project Budget in the amount of $1,200,000 –Authorizing the mayor to execute Amendment No. 5 to the Project Agreement for Construction of the Agua Hedionda Sewer Lift Station and Vista/Carlsbad Interceptor Sewer, Reaches VC11B–VC15, between the City of Carlsbad and the City of Vista –Authorizing the City Manager to approve contract documents and reimbursement payments to Vista for Carlsbad’s share of the remaining project work in an amount not to exceed $1,545,000. 7 Thank you