HomeMy WebLinkAbout2021-06-08; City Council; ; Authorize Amendment No. 2 to the Agreement with Kimley Horn & Associates, Inc. to Amend and Extend the Agreement Term for Additional Design Services and to Authorize an AMeeting Date: June 8, 2021
To: Mayor and City Council
From: Scott Chadwick, City Manager
Staff Contact: Steven Stewart, Municipal Projects Manager
steven.stewart@carlsbadca.gov, 760-602-7543
Subject: Authorize Amendment No. 2 to the Agreement with Kimley Horn &
Associates, Inc. to Amend and Extend the Agreement Term for Additional
Design Services and to Authorize an Appropriation for the Fleet Fuel
Island Upgrade Project
District: 2
Recommended Action
Adopt a resolution:
•Authorizing execution of Amendment No. 2 to the agreement with Kimley Horn &
Associates, Inc. to amend the agreement in an amount not to exceed $58,200 and
extend the agreement term by one year for additional design services
•Authorizing an appropriation of $13,000 from the Infrastructure Replacement Fund for
the Fleet Fuel Island Upgrade, Capital Improvement Program Project No. 4747.
Executive Summary
On Dec. 14, 2020, the city retained design and engineering services from Kimley Horn &
Associates, Inc. for an amount not to exceed $88,545, following a request for proposal
solicitation to upgrade the fleet-fuel island because of aging equipment and infrastructure and
pending state regulations.
During the design development phase of the project, staff recommended that the future fuel-
island canopy, currently proposed to be installed as part of the Orion Center project to construct
a maintenance and operations facility (Capital Improvement Program Project No. 3572) be
incorporated into the fuel-island upgrades currently under design, which will be more efficient
and cost-effective than doing the work separately. To incorporate the canopy design work into
the project, Kimley Horn presented a request for additional services on April 21, 2021.
Amendment No. 2 includes these additional services and extends the agreement term by one
year.
Staff recommends authorization of Amendment No. 2 to amend the agreement with Kimley
Horn in an amount not to exceed $58,200 and extend the agreement term by one year for
additional design services and to authorize an appropriation of $13,000 from the Infrastructure
Replacement Fund. The City Council’s authorization of the amendment is required under
Carlsbad Municipal Code Section 3.28.040(D)(1), because the value of Kimley Horn’s total
contract with these additional services exceeds $100,000 within the agreement year.
June 8, 2021 Item #8 Page 1 of 10
Discussion
The fleet-fuel island was built in 1986 as part of the Carlsbad Safety and Service Center
construction project, which included the Safety Center, now known as the Police & Fire
Headquarters, and the fleet maintenance building. The fuel island has not been upgraded since
its original construction except for installation of a system to monitor fuel use.
In 2014, the State of California approved legislation that requires all owners and operators of
underground storage tanks that do not meet certain requirements to be brought into
compliance through upgrade or replacement no later than Dec. 31, 2025, or face permanent
closure. The existing distribution piping of the fuel-site storage and distribution system is not
double walled and, unless replaced, will not comply with environmental standards after Dec.
31, 2025.
In September 2020, staff developed and advertised a request for proposals to solicit consultant
interest in evaluating the fleet fuel island. The request solicitation yielded only one incomplete
response, resulting in rejection of the proposal. Staff then contacted some local design firms
with prior experience with this type of project and selected three design firms. Staff sent the
project description and scope of work from the request to the firms and requested that each
firm provide a proposal.
In addition to the state mandates on underground storage tanks, the request also disclosed
staff’s understanding that the existing distribution piping for the city’s fuel-site storage
containment and distribution system was not double walled and, though currently compliant
with environmental regulations, might not meet environmental compliance after Dec. 31, 2025.
In November 2020, Kimley Horn was selected as the most qualified firm to retain for this work,
and on Dec. 14, 2020, the city contracted with the company to evaluate and prepare plans and
specifications for replacement of the fueling system. In March 2021, Kimley Horn
representatives met with staff to present their initial site investigation and design work. They
confirmed that the current fuel-storage tanks and distribution piping should be replaced as they
would soon be out of compliance with environmental standards. Additionally, the company
evaluated the condition of the fuel-leak detection monitoring system, fuel dispensing pumps
and concrete island and recommended their replacement because of their age and increasing
difficulty in maintaining them. They also reviewed the fuel-island canopy proposed as part of
the Orion Center project and recommended that this work be added at this time, since any
future installation of the canopy would require a complete reconstruction of the fuel island.
The Orion Center project’s scope of work currently contains the requirement to install a canopy
at the fuel island and replace the fuel dispensing pumps. However, staff concurs with Kimley
Horn’s recommendation to proceed with all the fuel-island upgrade work, including installation
of the canopy and fuel-dispensing pumps as one project. This synergistic approach would allow
for work to be completed in a more coordinated, efficient and cost-effective manner, resulting
in a shorter use of an alternate fueling site during construction and requiring less interruption
to the continuous operational needs of the Fleet Services Division as well as Police, Fire and
other city departments that utilize this facility. Additionally, staff anticipates that this
specialized scope of work will appeal to multiple qualified contractors and result in a more
competitive bid value for the construction phase of this project.
June 8, 2021 Item #8 Page 2 of 10
Options
Staff provide the following options for the City Council’s consideration:
1. Adopt a resolution authorizing execution of Amendment No. 2 to the agreement with
Kimley Horn & Associates, Inc. to provide additional design services in an amount not to
exceed $58,200 and extend the agreement term by one year and authorizing an
appropriation of $13,000 from the Infrastructure Replacement Fund for the Fleet Fuel
Island Upgrade Project
Pros
• Staff have been working with Kimley Horn for several months on this project
and found its staff to be highly responsive and knowledgeable in this type of
work
• Authorization of the amendment complies with applicable Carlsbad
Municipal Code sections
• Authorization of the amendment allows for the project design to move
forward so the renovation work can start as soon as possible
• This option will bring the facility into full compliance with current, as well as
future regulatory requirements sooner than waiting for the Orion Center
project completion
Cons
• None identified
2. Do not adopt a resolution authorizing execution of Amendment No. 2 to the agreement
with Kimley Horn & Associates, Inc. and request staff to design and replace the leak
detection system, fuel dispensing pumps and install a fuel-island canopy as part of the
future Orion Center project
Pros
• Defers spending to a future date
Cons
• Prevents timely completion of specialized work as one project in advance of
unrelated pending adjacent project work
• Elevated risk of unexpected equipment failure that may lead to closure due
to regulatory noncompliance, maintenance or safety issues
• Risks of additional costs in time and fuel to the city if departments are
diverted to commercial fueling stations due to equipment failure for an
extended period of time
• Any future installation of the canopy would require a complete
reconstruction of the fuel island
Staff recommend Option 1 for the City Council’s approval – adopt a resolution authorizing
execution of Amendment No. 2 to the agreement with Kimley Horn & Associates, Inc.to provide
additional design services in an amount not to exceed $58,200 and extend the agreement term
by one year and authorizing an appropriation of $13,000 from the Infrastructure Replacement
Fund for the Fleet Fuel Island Upgrade Project.
Fiscal Analysis
Amendment No. 2 to the agreement is for an amount not to exceed $58,200. There is currently
$150,000 appropriated from the Infrastructure Replacement Fund for the Fleet Fuel Island
June 8, 2021 Item #8 Page 3 of 10
Upgrade Project. Staff estimate an additional $13,000 is necessary in addition to the $1.5
million being requested in the fiscal year 2021-22 Capital Improvement Program budget
request. The available funds and estimated costs are shown in the table below:
Fleet Fuel Island Upgrade, Capital Improvement Program Project No. 4747
Total appropriation to date $150,000
Total expenditures/encumbrances to date $95,000
Total available funding $55,000
ADDITIONAL PROJECT COSTS
Amendment No. 2 with Kimley Horn & Associates, Inc. $58,200
Staff time during design $9,800
Remaining balance after Amendment No. 2 ($13,000)
ADDITIONAL APPROPRIATION NEEDED $13,000
Next Steps
Upon City Council approval, staff will process Amendment No. 2 to the agreement with Kimley
Horn & Associates, Inc. for additional design services for the project and extend the agreement
term by one year. Once the design work has been completed and permitted by the city, staff
plan to return to the City Council in fall 2021 to request approval of the plans and specifications
and authorization to solicit bids for the project.
Environmental Evaluation (CEQA)
The project is exempt from the California Environmental Quality Act under CEQA Guidelines,
Article 19 Categorical Exemptions, Section 15301 Existing Facilities: (b) the project consists of
publicly owned utilities used to provide electric power, natural gas, sewerage, or other public
utility services.
Public Notification and Outreach
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
June 8, 2021 Item #8 Page 4 of 10
RESOLUTION NO. 2021-129
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, AUTHORIZING EXECUTION OF AMENDMENT NO. 2 TO THE
AGREEMENT WITH KIMLEY HORN & ASSOCIATES, INC. TO AMEND THE
AGREEMENT IN AN AMOUNT NOT TO EXCEED $58,200 AND EXTEND THE
AGREEMENT TERM BY ONE YEAR FOR ADDITIONAL DESIGN SERVICES AND
AUTHORIZING AN APPROPRIATION OF $13,000 FROM THE
INFRASTRUCTURE REPLACEMENT FUND FOR THE FLEET FUEL ISLAND
UPGRADE, CAPITAL IMPROVEMENT PROGRAM (CIP) PROJECT NO. 4747
WHEREAS, on Dec. 14, 2020, the city entered into an Agreement with Kimley Horn &
Associates, Inc. (KHA) to provide design services for the Fleet Fuel Island Upgrade, C1P Project No.
4747 (Project); and
WHEREAS, on Dec. 22, 2020, the city entered into Amendment No. 1 to the Agreement with
KHA, to revise the Agreement to include prevailing wage language for no additional fee or time
extension; and
WHEREAS, the city requested KHA incorporate additional design work into the scope of the
Project; and
WHEREAS, KHA has tendered a proposal for additional design services to incorporate
additional fuel island upgrade work to comply with pending environmental regulations in an amount
not to exceed $58,200 and to extend the agreement term by one year to June 14, 2023; and
WHEREAS, City Council concurs that an additional appropriation of $13,000 from the
Infrastructure Replacement Fund is appropriate at this time; and
WHEREAS, the city planner has considered the potential environmental effects of the
Agreement and determined that the Project is categorically exempt from environmental review
pursuant to Article 19, Section 15301, Existing Facilities in that: (b) the project consists of publicly
owned utilities used to provide electric power, natural gas, sewerage, or other public utility services,
and that no exception to the exemption, as set forth in CEQA Guidelines section 15301 applies.
Il
//
June 8, 2021 Item #8 Page 5 of 10
MATT HALL, Mayor
BARBARA ENGL
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 proposal submitted by KHA in an amount not to exceed $58,200, and to extend
the agreement term by one year for additional design services for the Fleet Fuel Island
Upgrade, cw Project No. 4747, is hereby accepted.
3.That the deputy city manager for administrative services is hereby authorized to
appropriate $13,000 in Infrastructure Replacement Funds to the Project.
4.That Amendment No. 2 to the professional services agreement with KHA, Inc., for the
Fleet Fuel Island Upgrade, CIP Project No. 4747, is hereby approved and the mayor is
hereby authorized and directed to execute the Amendment attached hereto as
Attachment A.
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of
Carlsbad on the 8th day of June, 2021, by the following vote, to wit:
AYES: Hall, Blackburn, Acosta, Bhat-Patel, Schumacher.
NAYS: None.
ABSENT: None.
(SEAL)
June 8, 2021 Item #8 Page 6 of 10
DocuSign Envelope ID: 00254A44-F92E-4F36-94C1-978727CE511E
PSA21-1341FAC
AMENDMENT NO. 2 TO AGREEMENT FOR FLEET FUEL ISLAND UNDERGROUND
STORAGE TANK (UST) REPLACEMENT PROJECT SERVICES
KIMLEY-HORN & ASSOCIATES, INC.
This Amendment No. 2 is entered into and effective as of the 8th day of
June , 2021, extending and amending the agreement dated
December 14, 2020 (the "Agreement") by and between the City of Carlsbad, a municipal
corporation, ("City"), and Kimley-Horn & Associates, Inc., a North Carolina corporation
("Contractor") (collectively, the "Parties") for the Fleet Fuel Island Underground Storage Tank
(UST) Replacement Project Services.
RECITALS
A.On Dec. 22, 2020, the Parties executed Amendment No. 1 to the Agreement to
add prevailing wage language to the agreement in accordance with the Director of Industrial
Relations (DIR) requirements; and
B.The Parties desire to alter the Agreement's scope of work to add canopy design
services for the fuel island, inclusive, of architectural design and structural, mechanical and
electrical engineering services for canopy, with footing, downlights and solar array on top of the
canopy; and
C.The Parties desire to extend the Agreement for a period of one (1) year; and
D.The Parties have negotiated and agreed to a supplemental scope of work and fee
schedule, which is attached to and incorporated in by this reference as Exhibit "A", Scope of
Services and Fee.
NOW, THEREFORE, in consideration of these recitals and the mutual covenants
contained herein, City and Contractor agree as follows:
1. In addition to those services contained in the Agreement, as may have been
amended from time to time, Contractor will provide those services described in Exhibit "A". With
this Amendment, the total annual Agreement amount, invoiced against on a time and material
basis inclusive of all reimbursable expenses, shall not exceed one hundred forty-six thousand
seven hundred forty-five dollars ($146,745).
2, City will pay Contractor for all work associated with those services described in
Exhibit "A" on a time and materials basis not-to-exceed fifty-eight thousand two hundred dollars
($58,200). Contractor will provide City, on a monthly basis, copies of invoices sufficiently detailed
to include hours performed, hourly rates, and related activities and costs for approval by City.
3.Contractor will complete all work described in Exhibit "A" by June 14, 2023.
4.All other provisions of the Agreement, as may have been amended from time to
time, will remain in full force and effect.
5.All requisite insurance policies to be maintained by the Contractor pursuant to the
Agreement, as may have been amended from time to time, will include coverage for this
Amendment.
City Attorney Approved Version 1/30/13
June 8, 2021 Item #8 Page 7 of 10
BY:
DocuSign Envelope ID: DD254A44-F92E-4F36-94C1-978727CE511E
PSA21-1341FAC
6. The individuals executing this Amendment 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 Amendment.
CONTRACTOR, KIMLEY-HORN &
ASSOCIATES, INC., a North Carolina
corporation
By:
(sign here)
Dennis Landaal, Senior Vice-President
(print name/title)
CITY OF CARLSBAD, a municipal
corporation of the State of California
By:
Matt Hall, Mayor
ATTEST:
By:
(sign here)
(print name/title)
We:a- Z 7 g, 7/Pia/fr., 60'
for 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 Group B
Chairman, Secretary,
President, or Assistant Secretary,
Vice-President 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
Assistant City Attorney
City Attorney Approved Version 1/30/13
2
June 8, 2021 Item #8 Page 8 of 10
DocuSign Envelope ID: DD254A44-F92E-4F36-94C1-978727CE511E
PSA21-1341FAC
EXHIBIT "A"
SCOPE OF SERVICES AND FEE
Task 5.1
Task 5.2
Task 5.3
Fuel Canopy Design
Mechanical and Electrical Engineering
Supplemental Geotechnical Engineering
TOTAL NOT-TO-EXCEED FOR AMENDMENT NO. 2
(Tasks to be billed against on time and material basis)
$19,800
.$37;000
$1,400
$58,200
AMENDED CONTACT MAXIMUM VALUE $146,745
City Attorney Approved Version 1/30/13
3
June 8, 2021 Item #8 Page 9 of 10
DocuSign Envelope ID: DD254A44-F92E-4F36-9401-978727CE511E PSA21-1341 FAO
Exhibit "A" (continued)
Kimlep)Horn
Kimley-Horn and Associates, Inc.
Hourly Labor Rate Schedule
Classification Rate ,
Analyst $135
Professional I $165
Senior Professional I $230
Principal $285
Project Support $165
Effective through June 30, 2021
Subject to annual adjustment thereafter
Internal Reimbursable Expenses will be charged at 5% of Labor Billings
External Reimbursable Expenses will be charged at 15% mark-up, or per the Contract
Sub-Consultants will be billed per the Contract
401 B Street Suite 600, San Diego CA 92101 619 234 9411 kimley-horn.corn
BROOPRODS.A.000 June 8, 2021 Item #8 Page 10 of 10
Steven Stewart, Municipal Projects Manager
June 8, 2021
Authorize Amendment No. 2 to the
agreement with Kimley Horn &
Associates, Inc. and authorize an
appropriation of $13,000 from the
IRF for the Fleet Fuel Island Upgrade.
Recommendation
•Adopt a resolution authorizing execution of Amendment No. 2 to the agreement with Kimley Horn & Associates, Inc. to amend the agreement in an amount not to exceed $58,200 and extend the agreement term by one year for additional design services and to authorize an appropriation of $13,000 from the Infrastructure Replacement Fund for the Fleet Fuel Island Upgrade, Capital Improvement Program (CIP) Project No. 4747.
2
Background
•The fleet fuel island was built in 1986 as part of the Carlsbad Safety and Service Center construction project and has not been upgraded since except for installation of a fuel monitoring system to monitor fuel use.
•In 2014, the State of California approved legislation upgrading requirements for fuel islands with underground storage tanks and requiring owner compliance by Dec. 31, 2025.
•November 2020, Kimley Horn & Associates was retained following proposal solicitation.
•March 2021; review of design work completed to date led to recommendation that all work associated with fuel island be done as part of fuel island upgrade project.
•April 21, 2021; Kimley Horn & Associates presented proposal for additional design work, which is the subject of Amendment No. 2.
3
Next Steps
•Staff will process Amendment No. 2 to the agreement with KHA.
•Once the design work has been completed and permitted by the city, staff will return to City Council in fall 2021 to request approval of the plans and specifications.
•If the design documents are approved by City Council, staff will advertise the documents to solicit construction bids for the work, and return to City Council with a recommendation to award a construction contract to the lowest qualified bidder.
4
Recommendation
•Adopt a resolution authorizing execution of Amendment No. 2 to the agreement with Kimley Horn & Associates, Inc. to amend the agreement in an amount not to exceed $58,200 and extend the agreement term by one year for additional design services and to authorize an appropriation of $13,000 from the Infrastructure Replacement Fund for the Fleet Fuel Island Upgrade, Capital Improvement Program (CIP) Project No. 4747.
5
Thank you