HomeMy WebLinkAbout2021-12-14; City Council; ; Amendment No. 6 to the Agreement with the City of Vista for Construction of Agua Hedionda Sewer Lift Station and Vista/Carlsbad Interceptor Sewer Reaches VC11B-VC15, Appr Meeting Date: Dec. 14, 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. 6 to the Agreement with the City of Vista for
Construction of Agua Hedionda Sewer Lift Station and Vista/Carlsbad
Interceptor Sewer Reaches VC11B-VC15, Appropriation of $827,151 from
the Sewer Connection Fund for Carlsbad’s share of the remaining project
work, and Approval of Reimbursement Payments to Vista in an amount
not to exceed $2,479,766
Districts: 1 & 2
Recommended Actions
Adopt a resolution:
• Authorizing the Mayor to execute Amendment No. 6 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
• Appropriating $827,151 from the Sewer Connection Fund
• Authorizing the City Manager to approve reimbursement payments to Vista for
Carlsbad’s share of the remaining project work in an amount not to exceed $2,479,766
Executive Summary
The Agua Hedionda Lift Station, Capital Improvement Program Project No. 3492, is jointly
owned by the cities of Carlsbad and Vista. The lift station pumps wastewater flow from both
cities to the Encina Water Pollution Control Facility for treatment. The project to replace the lift
station and increase its capacity started in 2015 but was delayed during construction in 2019
due to a construction contract dispute related to the performance of the pumping system.
This amendment, which would be the sixth made to the agreement, authorizes the steps
required to complete this project with a different contractor selected by Vista, now the lead
agency on the project. The remaining work includes demolition of the existing lift station,
relocating two temporary pumps, drainage improvements, final grading and paving, and
compliance, operational, security and safety improvements.
Dec. 14, 2021 Item #6 Page 1 of 14
The proposed amendment:
• Establishes the guaranteed maximum price for the project, as received by Vista
• Reestablishes Vista’s role as the owner’s advisor, basically the lead agency, through the
completion of construction
• Increases the total Project Budget by $2,864,110 and the cost of the remaining work
may not exceed $7,864,110 or the total Project Budget of $67,989,188 without the
approval of a separate, subsequent amendment.
• Adds construction management, archaeological, paleontological and biological
monitoring services to the contract
The cost of the remaining work is $7,864,110, exceeding the amount previously approved in
prior amendments. Carlsbad is obligated to pay 30.9% of the cost of the remaining work plus a
5% mark up on Vista’s owner advisor fee. The city has budgeted all but $827,151 to cover these
costs. Staff are recommending the City Council authorize the appropriation of $827,151 from
the Sewer Connection Fund to pay for the city’s share of the remaining work.
The proposed action before the council would also authorize the City Manager to approve
reimbursement payments to Vista for Carlsbad’s share of the remaining project work in an
amount not to exceed $2,479,766. The City Council’s authorization is required by Carlsbad
Municipal Code, or CMC, Section 3.28.040(D)(1) and (3), because the requested appropriation
exceeds $100,000 per agreement year.
Discussion
Project background
The Vista/Carlsbad interceptor sewer was built in the early 1960s and is a large collector pipe
that receives flow from other sewer lines and conveys it to a wastewater treatment plant. It
extends approximately eight miles north then east from the Encina Water Pollution Control
Facility in Carlsbad to Vista. The interceptor sewer is identified in city documentation as
pipeline reaches VC1 through VC15 and includes the Buena Vista and Agua Hedionda Lift
stations. The project replaces the existing lift station and interceptor sewer to meet projected
sewer flows in accordance with adopted sewer master plans and improves reliability within the
southernmost portion of the Vista/Carlsbad interceptor sewer system. The project is located
entirely within the city, beginning at the north shore of the Agua Hedionda Lagoon and
extending south approximately 2.3 miles to the control facility (see Exhibit 2 for a location
map). Carlsbad and Vista entered into the project agreement in January 2015 that designated
Carlsbad as the lead agency for the planning, design and construction of the project.
That February, the City Council approved an agreement with Vista for funding the construction
phase services for the project (Resolution No. 2015-039). That May, the City Council, authorized
the award of a contract to a contractor to construct the project for an amount not to exceed
$44,195,300 (Resolution No. 2015-124). The project subsequently encountered unforeseen
conditions that increased the cost of the construction contract and delayed completion of the
project.
The cost increases were funded by three subsequent construction change orders to the
contract authorized by the City Manager and by the City Council in 2017, 2018 and 2019
(Resolution nos. 2017-223, 2018-142 and 2019-083). These change orders amended the city’s
Dec. 14, 2021 Item #6 Page 2 of 14
professional service agreements for construction management and inspection and for design
engineering and construction support services.
Pumping system problems
In October 2019, a dispute with the contractor regarding the performance of the pumping
system delayed completion of the lift station. With Vista’s concurrence, the city issued a
unilateral change order removing the remaining work on the project, which was not in dispute,
from the construction contractor’s scope of work and reducing the contract value by $834,888.
This action enabled Vista to become the lead agency and retain a different contractor for the
remaining work.
That remaining work entailed demolishing the existing lift station, relocating two temporary
pumps that provide back-up pumping capacity for the lift station, new drainage improvements
and the final grading and paving.
Design-build approach
Carlsbad and Vista staff agreed that Vista would lead the remaining work and procure a
progressive design-build team under a new contract to complete the remaining work.
Progressive design-build refers to a process in which the engineering design entity and the
contractor work as a team, under contract with the owner, to collectively develop project
solutions.
To initiate this process, on Jan. 28, 2020, Vista approved the award of a qualification-based,
professional services contract in the amount of $139,920 with CDM Smith Inc. to head up the
project for Vista as the owner’s advisor.
CDM Smith then developed the procurement and request for proposal documents for a
progressive design-build solicitation in which design-build teams were to submit proposals for
the completion of the remaining work. CDM Smith also developed a project implementation
plan.
In April 2020, the City Council approved Amendment No. 4 to the agreement (Resolution No.
2020-060). In this amendment, the cities agreed to transfer the lead agency role from Carlsbad
to Vista and to share the costs for the completion of the remaining work, including the owner’s
advisor services, in proportion to the cities’ respective ownership of the lift station. Vista owns
69.1% of the station, which is known as Reach VC12; while Carlsbad owns 30.9%.
At that time, Vista estimated completing the remaining work by summer 2020, at a total cost of
approximately $1.5 million for both cities. 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 fund for Carlsbad’s share. The city’s share
of the remaining project work, including the owner’s advisor services, was not to exceed
$463,500.
Additional improvements
While preparing Vista’s request for proposals to offer the project up for bids, the Encina
Wastewater Authority, as the operator of the facility, requested 50 items of work to address
compliance, operational, security and safety improvements that would allow for the proper
operation and maintenance of the facility. Although the cost for these additional improvements
Dec. 14, 2021 Item #6 Page 3 of 14
was not included in the cost estimate for the remaining work, it was understood that this
additional work would be included in the progressive design-build contract if Carlsbad and Vista
mutually agreed and the funds were approved by the two City Councils.
In October 2020, Vista received one proposal from TC Construction and Michael Baker
International to serve as the design-build team for a fee of $4.29 million. This proposal included
carrying out the 50-item list of improvements. An additional $462,000 in estimated project
costs covered Vista’s owner advisor services for project management and design and
environmental review services through both the process of establishing the guaranteed
maximum price of the project and the construction phase. This brought the total estimated cost
of the progressive design-build effort to $5 million, which included a 5% contingency.
On Jan. 26, 2021, the City Council approved Amendment No. 5 to the agreement (Resolution
No. 2021-031). In this amendment, Carlsbad and Vista agreed to increase the project budget to
$5 million to complete construction, with Carlsbad’s share to be $1,545,000. This figure
included the costs of the 50 improvements and estimated fees for Vista’s owner advisor
services through the completion of the construction phase.
Amendment No. 6
On Nov. 1, 2021, the progressive design-build team submitted the guaranteed maximum price
of $5,672,437 with a 10% contingency. Vista’s owner’s advisor, CDM Smith, revised its
construction phase support services fee to $743,227 to include archaeological, paleontological
and biological monitoring services and an extended construction duration.
The total for the guaranteed maximum price and owner’s advisor services is $7,364,110, which
exceeds the $5 million increase in the project budget approved in amendment nos. 4 and 5. The
guaranteed maximum price is based on the 60% design and includes a 38-item list of
compliance, operational, security and safety improvements concurred by Carlsbad, Vista and
Encina Wastewater Authority staff. This price is pending authorization by the respective City
Councils.
Work on the project is now expected to resume in late January 2022 and is estimated to be
completed in 12 months.
Other project-related costs included in Amendment No. 6 are:
• An estimated $250,000 for potential electrical modification of the pump drivers that
control pump speed and impeller testing. The city received four new impellers for the
lift pumps in November 2021, which will be tested through December 2021. The testing
is expected to reveal whether modifications are necessary and, if required, the work
would be funded by the cities separate from the progressive design-build contract
• An estimated $100,000 for legal services related to continuing negotiations with the
original contractor and pump manufacturer
• An estimated $150,000 for five years of maintenance and monitoring of the on-site
environmental mitigation area required by the coastal development permit, which is
currently budgeted in Agua Hedionda Lift Station Biological Monitoring and
Maintenance Capital Improvement Program Project No. 5545 in the amount of
$225,000. No additional appropriation is requested for this activity in this proposed
amendment
Dec. 14, 2021 Item #6 Page 4 of 14
Including the estimated costs for owner advisor services, pump driver modifications and legal
services, the total cost of the progressive design-build effort that was originally estimated by
Vista to be $1,500,000 is now $7,864,110. The city’s share is $2,430,010 plus a 5% mark-up by
Vista on construction management services in accordance with the project agreement, or
$2,479,766. If Amendment No. 6 is approved by the City Council, the total cost of the project
that has been in construction since 2015 will be $67,989,188.
A summary of the prior amendments and the associated costs are summarized in the table
below.
Amendment summary
Capital Improvement Program project nos. 3492, 3886 and 3949
Date Description Amount
Feb. 10, 2015 Construction contract award $56,702,500
Dec. 8, 2017 Amendment No. 1: Added environmental monitoring and
extended construction management services $1,754,470
Sept. 11, 2018 Amendment No. 2: Added legal services fees as shared costs $0
June 11, 2019
Amendment No. 3: Pump performance issues led to
construction delays which increased costs for additional
design engineering, construction management and inspection
services and legal expenses
$1,668,108
April 14, 2020
Amendment No. 4: Transfer Lead Agency role to Vista,
remaining work to be completed under Vista’s progressive
design-build contract, increased the project budget
$1,500,000
Jan. 26, 2021
Amendment No. 5: Added Encina Wastewater Authority-
identified work items for unfinished or deficient work, extend
Vista’s Owner’s Advisor services through the design phase,
increased the project budget
$3,500,000
Dec. 14, 2021
Amendment No. 6: Guaranteed maximum price received by
Vista, Vista’s owner’s advisor services extended through
construction completion, added construction management,
archaeological, paleontological and biological monitoring
services
$2,864,110
TOTAL $67,989,188
Carlsbad’s share (30.9%) $21,008,659
Dec. 14, 2021 Item #6 Page 5 of 14
Other considerations
During commissioning of the lift station in 2019, the city, through special inspections and tests,
determined that the lift pumps were not pumping at their rated capacity. The installation of
newly designed impellers in November 2021 is intended to resolve the pump performance
issue. However, the cost of Vista’s progressive design-build contract does not include corrective
work to address unresolved performance issues. If the new impellers do not resolve the lift
pump performance issues, additional work will be required, and the project will incur additional
costs. In this event, city staffs will return to their city councils with a plan to address the
unresolved issues.
Operation of the lift station over the past two years has revealed that a high level of pumping
redundancy is necessary to convey wastewater laden with rags. Pump clogging has increased
since the onset of COVID-19, when face masks and other debris became prevalent in the
wastewater, not just locally but throughout the United States. To reduce the potential for
sewer spills caused by pump failure due to the disposal of rags, Carlsbad, Vista and Encina
Wastewater Authority determined that the existing temporary back-up pumps at the site
should be permanently installed.
Permanent installation of the temporary pumps requires the construction of a diversion
structure and a remote wet well, which are connected by piping. The diversion structure, wet
well and piping are underground structures, and the temporary pumps are only slightly visible
from the nearest public streets. Permanent installation of the temporary pumps and
construction of the new underground structures would constitute a change to the project,
which is anticipated to require an amendment to the coastal development permit issued for the
project. Given the space constraints at the site, there is no other viable alternative to provide
added pumping redundancy. In November 2021, staff applied for a permit amendment from
the California Coastal Commission for this work.
Options
Staff provide the following options for the City Council’s consideration:
1. Proceed with completion of the remaining work under Vista’s lead and progressive
design-build contract
Pros:
• Improvements can be completed at the earliest opportunity
Cons:
• Requires additional funding appropriation
2. Request Vista invoke the “off-ramp” services of the progressive design-build contract,
which would cease design-build efforts, and prepare contract documents for public
bidding via the traditional design-bid-build process, which Carlsbad or Vista would lead
Pros:
• Cost savings are possible, but cannot be confirmed at this time considering
uncertainties in future material supplies and potential impacts on pricing
Cons:
• Incurs additional cost for off-ramp services, estimated at $130,000
• Subject to price escalation until formal bids are received
• Delays completion of the project by an estimated year
Dec. 14, 2021 Item #6 Page 6 of 14
• The lift station will endure an additional year of wet weather wastewater flow
with reliance on the back-up pumping system
Staff recommend Option 1 for City Council’s approval – proceed with completion of the
remaining work under Vista’s lead and progressive design-build contract and further
recommend the City Council:
• Authorize the Mayor to execute Amendment No. 6 to the Project Agreement for
Construction of the Agua Hedionda Sewer Lift Station and Vista/Carlsbad Interceptor
Sewer, Reaches VC11B–VC15 between Carlsbad and Vista and approve an increase in
the project budget of $2,864,110 to a total of $67,989,188 for construction of the
remaining work
• Authorize an appropriation of $827,151 from the Sewer Connection fund to the Capital
Improvement Program project budget for Carlsbad’s share of costs for the remaining
work
• Authorize the City Manager or designee to approve reimbursement payments to Vista
for Carlsbad’s share of costs for the remaining project work
Fiscal Analysis
All project costs are shared between the City of Carlsbad and the City of Vista as described in
the project agreement and subsequent amendments. The cost increase for the progressive
design-build effort above the amount authorized by prior amendments is $2,864,110, and
Carlsbad’s portion is 30.9%, or $885,010 plus 5% mark-up on Vista’s owner advisor fee. An
additional appropriation from the Sewer Connection Fund to the project budget will be
required to fund the city’s portion.
Agua Hedionda Sewer Lift Station, Vista/Carlsbad Interceptor Sewer Reaches VC11B – VC15,
and Recycled Water Line Project
Capital Improvement Program project nos. 3492, 3886, 3949, and 5545
Current appropriation1 $63,191,044
Current expenditures and encumbrances $61,763,429
Balance for CIP project nos. 3492, 3886 and 3949 $1,427,615
Balance for CIP Project No. 5545 $225,000
Total balance, CIP project nos. 3492, 3886, 3949 and 5545 1,652,615
Remaining work (estimated)2 2,479,766
Additional appropriation needed $827,151
1 The current appropriation includes $365,966 of costs that do not fall within the project related to costs that
predate and were not included in the cost-share agreement.
2 Includes 5% mark-up for Vista’s project management per the cost-share agreement.
Dec. 14, 2021 Item #6 Page 7 of 14
Agreement Between the City of Carlsbad and the City of Vista for Construction of the Agua
Hedionda Sewer Lift Station, Vista/Carlsbad Interceptor Sewer Reaches VC11B – VC15
Project Agreement original budget) $56,702,500
Amendment No. 1 $1,754,470
Amendment No. 2 $0
Amendment No. 3 $1,668,108
Amendment No. 4 $1,500,000
Amendment No. 5 $3,500,000
Amendment No. 6 (Proposed) $2,864,110
Total agreement budget with Amendment No. 6 $67,989,1881
1 Figures are rounded.
Next Steps
On Dec. 14, 2021, Vista staff are to present the same recommendation to the Vista City Council
for approval of the proposed amendment to the project agreement and that city’s share of the
project budget. If the proposed recommendations are authorized by both city councils, Vista
will proceed with Option 1 and authorize the progressive design-build team to proceed with the
construction phase of the effort, which will commence in late January 2022 and is estimated for
completion in 12 months.
If the City Councils do not approve the proposed amendment, the project site will remain
incomplete and at risk of violating stormwater regulations through the winter of 2022-23.
Additional project delays are expected to result in additional costs.
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. The mitigated negative declaration was filed with the State Clearing House (SCH
#2010081053) and adopted by the City Council on Dec. 6, 2011, in compliance with California
Environmental Quality Act Guidelines Section 15074.
Execution of Amendment No. 6 is within the scope of the adopted environmental documents
and there are no substantial changes to the project, so no additional environmental analysis is
required.
Public Notification
This item was noticed 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
Dec. 14, 2021 Item #6 Page 8 of 14
RESOLUTION NO. 2021-279
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, AUTHORIZING THE MAYOR TO EXECUTE AMENDMENT NO. 6
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
EXHIBIT 1
WHEREAS, on Feb. 10, 2015, the City of Carlsbad (Carlsbad) and the City of Vista (Vista) entered
into a1 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, on Dec. 8, 2017, Amendment No. 1 to the Project Agreement increased the Project
budg~t to cover unforeseen costs and additional services; and
WHEREAS, on Sept. 11, 2018, Amendment No. 2 modified the Project Agreement's terms to
incluqe legal services necessary to complete the Project; and
WHEREAS, on Jun. 11~ 2019, Amendment No. 3 increased the Project budget to cover
unfor~seen costs and additional engineering, construction management and inspection services; and
WHEREAS, on April 14, 2020, Amendment No. 4 transferred Lead Agency responsibility to Vista
for co_mpletion of certain work (remaining work) at the Agua Hedionda Lift Station using the progressive
design-build method of project delivery, approved Vista's Owner's Advisor services in the amount of
$139,920, and increased the Project budget by $1,500,000 to a total of $61,625,078; and
WHEREAS, Carlsbad and Vista share the cost of the remaining work at the Agua Hedionda Lift
Station in proportion to their ownership of Reach VC12, in which Vista owns 69.1% and Carlsbad own~
30.9%, respectively; and
WHEREAS, on Jan. 26, 2021, Amendment No. 5 increased the project budget by $3.5 million for
completion of. the remaining work, which included compliance, operational, security and safety
impr6vements deemed beneficial and necessary by Carlsbad and Vista, Vista's Owner's Advisor services
and a 5% markup for project management services provided by Vista, to a total of $65,125,078; and
WHEREAS, on Nov. 1, 2021, Vista received the Guaranteed Maximum Price of $5,672,437 for
completion of the remaining work and the Owner's Advisor fee of $743,227 for construction phase
Dec. 14, 2021 Item #6 Page 9 of 14
EXHIBIT 1
suppo:rt services to include archaeological, paleontological and biological monitoring services, with 10%
conti~gencies; and
WHEREAS, Vista's 5% markup for project management services through the construction phase
is estil'Tlated to be $49,756; and
WHEREAS, Carlsbad and Vista request additional funding estimated to be $100,000 for legal
servic~s, $250,000 for electrical modifications and testing related to lift pump impeller replacement
' and $;I-50,000 for environmental mitigation site maintenance and monitoring; and
WHEREAS, the increase in the estimated PDB project cost authorized by Amendment Nos. 4 and
5 is $2.864,110, for a total project budget of $67,989,188; and
WHEREAS, staff request additional appropriation of $827,151 to complete the project; 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(()/SP 144(L)/RP 10-26/CDP 10-17 /HDP 10-05/SUP 10-02/HMP 10-03). The
miti~ated negative declaration was filed with the State Clearing House' (SCH #2010081053) and
adop~ed 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. 6 is within the scope of the adopted environmenta[
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 CounciJ of the City of Carlsbad, California, as;
follows:
1. That the above recitations are true and correct.
2. That the Deputy City Manager, Administrative Services, is authorized to appropriate
additional funds from the Sewer Connection Fund to the project budget in the amount of $827,151.
: 3. That the Mayor of the City of Carlsbad is authorized and directed to execute
Ame~dment No. 6 to the Project Agreement between the City of Carlsbad and the City of Viste
(Atta~hment A), which increases the project budget by $2,864,110 to a total of $67,989,188.
4. That the City Manager of the City of Carlsbad, or designee is authorized to approve
reimbursement payments to the City of Vista for Carlsbad's proportionate share of the remaining work
in an1amount notto exceed $2,479,766.
Dec. 14, 2021 Item #6 Page 10 of 14
ATTACHMENT A
SIXTH 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 SIXTH AMENDMENT ("Sixth 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 ("Sixth Amendment Date"), by and between
tli)e City of Vista, a chartered municipal corporation ("Vista"), and the City of Carlsbad, a chartered
municipal corporation ("Carlsbad").
I
RECITALS
A. Carlsbad and Vista entered into a Project Agreement for the construction of the
Agua Hedionda Sewer Lift Station and Vista/Carlsbad Interceptor Sewer, Reaches VC118-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 on
Qecember 8, 2017, to provide additional funding in the amount of $1,754,470 for additional
cpnstruction costs associated with unforeseen issues and delays to the Project as well as
a1dditional construction management and inspection services required to complete the Project for
a1 total Project budget of $58,456,970. I
. C. Carlsbad and Vista entered into a Second Amendment to the Project Agreement
on September 11, 2018, to modify the terms of the Project Agreement to include legal services
n·ecessary to complete the Project.
D. Carlsbad and Vista entered into a Third Amendment to the Project Agreement on
August 13, 2019, to provide additional funding in the amount of $1,668,108 for legal services,
qesign engineering and construction support, and construction management and inspection
s:ervices 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 change
order, Contract Change Order No. 16, dated October 23, 2019, to Pulice Construction, Inc., in the
~mount of $834,888.18 to delete the "Remaining Work" on the Project consisting 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.
. F. Carlsbad and Vista entered into a Fourth Amendment on May 1, 2020, to name
the City 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 increase the Project Budget by $1,500,000 to $61,625,078.
G. Carlsbad and Vista entered into a Fifth Amendment on January 26, 2021, to
increase the Project budget by $3.5 million for completion of the Remaining Work to include
~ompliance, operational, security and safety improvements requested by the Encina Wastewater
Authority and deemed necessary by Carlsbad and Vista, Vista's Owner's Advisor services and a
5% markup for project management services provided by Vista, to a total of $65, 125,078.
1 Item #6 Page 12 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 Dec. 14, 2021 Item #6 Page 14 of 14
Amendment No. 6 to the Project
Agreement with the City of Vista for
Construction of Agua Hedionda Sewer Lift
Station and Vista/Carlsbad Interceptor
Sewer, Reaches VC11B-VC15
Vicki Quiram, Utilities Director
Dave Padilla, Engineering Manager
December 14, 2021
{city of
Carlsbad
TODAY’S PRESENTATION
•Project Background
•Amendment Summary
•Next Steps
•Recommended Action
ITEM 6: Agua Hedionda Lift Station
{city of
Carlsbad
RECOMMENDED ACTION
Adopt a resolution:
•Authorizing the Mayor to execute Amendment No. 6 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
•Appropriating $827,151 from the Sewer Connection Fund
•Authorizing the City Manager to approve reimbursement payments to Vista for
Carlsbad’s share of the remaining project work in an amount not to exceed
$2,479,766
ITEM 6: Agua Hedionda Lift Station
( City of
Carlsbad
BACKGROUND
•Joint ownership: Carlsbad (30.9%) and Vista (69.1%)
•The project replaces the original lift station
•AHLS pumps wastewater to the Encina Water Pollution Control Facility
•Construction contract awarded May 2015
•Total project cost: $56.7M
•Included gravity interceptor, force main, lagoon bridge and recycled water pipeline
ITEM 6: Agua Hedionda Lift Station
( City of
Carlsbad
PRIOR AMENDMENTS
Amendment No. 1, Dec. 2017:
•Extended environmental monitoring & construction management (CM) services. $1.75M
Amendment No. 2, Sept. 2018:
•Legal services added as shared cost
Amendment No. 3, June 2019
•Added costs for construction, engineering and CM & inspection services. $1.67M
ITEM 6: Agua Hedionda Lift Station
( City of
Carlsbad
PROJECT DELAYED
Oct. 2019:
•Pumps not performing per specifications
•Carlsbad issued $834,888 deductive change
order
•Project completion delayed
ITEM 6: Agua Hedionda Lift Station
( City of
Carlsbad
PRIOR AMENDMENTS
Amendment No. 4, April 2020:
•Transfer lead agency role to Vista
•Vista to complete remaining work using progressive design-build contract
•Shared costs for Owner Advisor services
•Increase the project budget by $1.5M
ITEM 6: Agua Hedionda Lift Station
( City of
Carlsbad
PRIOR AMENDMENTS
Amendment No. 5, Jan. 2021:•Add Encina Wastewater Authority-identified work items
•Extend Owner Advisor services through completion of the design and construction phases
•Increase the project budget by $3.5M
Estimates were based on the scope of work defined in the Request for Proposals
Only one progressive design-build proposal received: $4.29 million
ITEM 6: Agua Hedionda Lift Station
( City of
Carlsbad
•Guaranteed Maximum Price: $5,672,437
•38 compliance, operational, security and safety items
•Add archaeological, paleontological and biological monitoring services and mitigation site maintenance
•Extend scope of construction management services
•Increase Owner Advisor services fee to $743,227
•Carlsbad share: $2,479,766
Fees based on 60% design
•Vista City Council considering similar item for their share on Dec. 14, 2021
PROPOSED AMENDMENT NO. 6
ITEM 6: Agua Hedionda Lift Station
( City of
Carlsbad
“Off-ramp” for progressive design-build contract:
•Incurs $130,000 fee
•Finalize design and solicit bids for construction
•Delays project completion an additional year
•Subject to price escalation
•Reliance on temporary pumping system
•Increased cost to operate the lift station
ALTERNATIVE CONSIDERED
ITEM 6: Agua Hedionda Lift Station
( City of
Carlsbad
With approval of Carlsbad and Vista city
councils:
•Begin construction in January 2022
•12-month construction schedule
•Cost sharing per Project Agreement, as
amended
NEXT STEPS
ITEM 6: Agua Hedionda Lift Station
( City of
Carlsbad
RECOMMENDED ACTION
Adopt a resolution:
•Authorizing the Mayor to execute Amendment No. 6 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
•Appropriating $827,151 from the Sewer Connection Fund
•Authorizing the City Manager to approve reimbursement payments to Vista for
Carlsbad’s share of the remaining project work in an amount not to exceed
$2,479,766
ITEM 6: Agua Hedionda Lift Station
( City of
Carlsbad
THANK YOU
ITEM 6: Agua Hedionda Lift Station
( City of
Carlsbad