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