HomeMy WebLinkAbout2020-04-14; City Council; ; Authorization for the Mayor to execute Amendment No. 4 to the Project Agreement between the City of Carlsbad and the City of Vista for construction of the Agua Hedionda Sewer Lift StatioMeeting Date: April 14, 2020
To: Mayor and City Council
From: Scott Chadwick, City Manager
Staff Contact: Babaq Taj, Engineering Manager
babaq.taj@carlsbadca.gov, 760-602-4676 Dave Padilla, Senior Engineer
dave.padilla@carlsbadca.gov, 760-603-7356
Subject: Authorization for the Mayor to execute Amendment No. 4 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, appropriation of $345,276 to
fund Carlsbad’s share of the remaining project work, and authorization
for the City Manager to approve contract documents and reimbursement
payments to the City of Vista for Carlsbad’s share of the remaining
project work in an amount not to exceed $463,500
Recommended Action
Adopt a resolution authorizing the Mayor to execute Amendment No. 4 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,
appropriating $345,276 from the Sewer Connection Fee Fund to fund Carlsbad’s share of the
remaining project work, and authorizing the City Manager to approve contract documents and
reimbursement payments to the City of Vista for Carlsbad’s share of the remaining project work
in an amount not to exceed $463,500.
Executive Summary
Under the terms of the Project Agreement, Carlsbad is the Lead Agency for the planning, design
and construction of the Project. Carlsbad, with the concurrence of Vista, contracted with Pulice
Construction, Inc. to construct the Project. Construction has been delayed by a dispute with the
contractor related to the pumping system. On Oct. 23, 2019, Carlsbad, with the concurrence of
Vista, issued a unilateral deductive change order to remove the remaining, non-disputed work
on the Project (Remaining Work) from the construction contractor’s scope of work. Carlsbad
April 14, 2020 Item #1 Page 1 of 11
and Vista staff recommend that the Remaining Work be completed by another contractor,
overseen by Vista, using the progressive design-build method of project delivery.0F
1
As the initial step in this method, Vista has hired CDM Smith, Inc. (CDM Smith) at a cost of
$139,920 to serve as the Owner’s Advisor and prepare the procurement documents required
for soliciting proposals to hire the design-build team that will complete the Remaining Work.
Amendment No. 4 provides for Carlsbad and Vista to share the $139,920 cost of CDM Smith’s
fee in proportion to their respective ownership of the lift station (Reach VC12). Vista owns
69.1% of the lift station, while Carlsbad owns 30.9%. If approved, Carlsbad would pay $43,235
(30.9% of $139,920) plus a 5% mark-up for construction administration and project
management services provided by Vista, for a total reimbursement payment of $45,397.
The contract with CDM Smith includes an option for additional services consisting of
construction management, materials testing, special inspection, and coordination of
environmental monitoring. Whether to utilize these optional services would be decided at a
later date and addressed under the change order procedures in the Project Agreement.
The total estimated cost of the Remaining Work, inclusive of the anticipated and optional
Owner’s Advisor services and the design-build contract, is $1.5 million. Amendment No. 4
increases the project budget by this amount, raising the total project budget from $60,125,078
to $61,625,078.
Because Vista will be overseeing the design-build contract and contractors, Carlsbad and Vista
staff recommend Lead Agency responsibility for the Remaining Work be transferred to Vista as
proposed in Amendment No. 4. Carlsbad will remain the Lead Agency for all work on the Project
other than the Remaining Work, which includes resolving the disputed work with the original
contractor.
Discussion
The Vista/Carlsbad Interceptor Sewer was built in the early 1960s and extends approximately
eight miles northeasterly from the Encina Water Pollution Control Facility in Carlsbad to Vista.
The interceptor sewer1F
2 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 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.
1 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.
2 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.
April 14, 2020 Item #1 Page 2 of 11
Vista and Carlsbad entered into the Project Agreement on Jan. 27, 2015. The Project Agreement
designated the City of Carlsbad as the Lead Agency for the planning, design and construction of
the Project.
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. Two months later, 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
$834,888.18, deleting the Remaining Work from the contract. The Remaining Work generally
consists of demolition of the original lift station, removal of third-party utilities, relocation of
the temporary pumps, landscaping, site lighting, storm drain improvements, final grading, and
base and final paving.
Carlsbad and Vista staff recommend 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 will
develop the procurement and request for proposal documents for a progressive design-build
solicitation in which design-build teams (bidders) will submit proposals for the completion of
the Remaining Work. The Owner’s Advisor will also support development of a project
implementation plan, manage the progressive design-build contract and review the project
design before construction.
Because Vista will be overseeing the design-build contract and contractors, Carlsbad and Vista
staff further recommend that Vista assume the role of Lead Agency for the Remaining Work.
Carlsbad would remain the Lead Agency for all work on the Project other than the Remaining
Work, which includes resolving the disputed work with the original contractor. Amendment No.
4, which is being concurrently presented to the Vista City Council for approval on April 14, 2020,
is required to transfer Lead Agency responsibility for the Remaining Work to Vista.
In accordance with the Project Agreement and all previous amendments to it, Amendment No.
4 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 (Reach VC12): 69.1% Vista, 30.9% Carlsbad. Based on Carlsbad’s percentage ownership,
April 14, 2020 Item #1 Page 3 of 11
Carlsbad’s share of the Owner’s Advisor services contract will be $43,235, plus a 5% markup for
construction administration and project management services provided by Vista, for a total of
$45,397.
Carlsbad and Vista estimate the cost to complete the Remaining Work, including the
anticipated and optional Owner’s Advisor services and the design-build contract, to be $1.5
million. Amendment No. 4 increases the project budget by this amount, raising the total project
budget from $60,125,078 to $61,625,078.
The actual cost to complete the Remaining Work is subject to the proposals received through
the procurement process. If the cost for the Remaining Work exceeds this estimate, a future
amendment to the Project Agreement will be presented to the city councils of both cities for
consideration.
To implement Amendment No. 4, staff recommends the City Council appropriate Carlsbad’s
proportionate share (30.9%) of the funds necessary to complete the Remaining Work, or
$463,500. Staff further recommends the City Council authorize 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 not to exceed $463,500.
Fiscal Analysis
All additional project agreement costs shall be shared between the City of Carlsbad and the City
of Vista as described in the Project Agreement. As identified in Amendment No. 4, the total
estimated cost to complete the remaining work is $1.5 million. Carlsbad’s share of the total
estimated cost to complete the remaining work is $463,500. As shown in the table below, the
project has an available budget of $141,399. The project requires a net appropriation of
$345,276 from the Sewer Connection Fee Fund. Sufficient funds are available in the Sewer
Connection Fee Fund for this request.
AGUA HEDIONDA SEWER LIFT STATION, VISTA/CARLSBAD INTERCEPTOR SEWER REACHES
VC11B – VC15, AND RECYCLED WATER LINE PROJECT
CIP PROJECT NOS. 3492, 3886, AND 3949
Current appropriation $61,595,768
Current expenditures/encumbrances $60,954,369
Approximate legal expenditures to date $500,000
TOTAL AVAILABLE $141,399
ADDITIONAL PROJECT COSTS
Remaining Work (estimated) $463,500
Staff administrative costs and contingency (estimated) $23,175
TOTAL ESTIMATED ADDITIONAL PROJECT COSTS $486,675
ADDITIONAL APPROPRIATION NEEDED $345,276
April 14, 2020 Item #1 Page 4 of 11
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, 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 (Proposed) $1,500,000
TOTAL PROPOSED BUDGET IN AGREEMENT $61,625,078
Next Steps
With execution of the proposed Amendment No. 4, staff will coordinate with Vista during the
Owner’s Advisor services phase to retain a design-build team. As the Project progresses,
Carlsbad and Vista staff will continue to confer and come to agreement before final decisions
are made on the procurement documents for the solicitation of design-build proposals,
selection of the design-build team, finalizing the scope and cost of the design-build contract and
amendment of the Owner’s Advisor agreement to include optional services, if needed.
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 (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 the California Environmental Quality Act (CEQA) Guidelines Section 15074.
Execution of Amendment No. 4 is within the scope of the adopted environmental documents
and there are no substantial changes to the Project. Therefore, no additional CEQA analysis is
required.
Public Notification
This item was noticed in accordance with the Ralph M. Brown Act and was available for public
viewing and review at least 72 hours prior to the scheduled meeting date.
Exhibits
1. City Council resolution
2. Location map
April 14, 2020 Item #1 Page 5 of 11
April 14, 2020 Item #1 Page 6 of 11
RESOLUTION NO. 2020-060
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, AUTHORIZING THE MAYOR TO EXECUTE AMENDMENT NO. 4
TO THE PROJECT AGREEMENT FOR THE 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, APPROPRIATING $345,276 FROM THE SEWER CONNECTION
FEE FUND TO FUND CARLSBAD'S SHARE OF THE REMAINING PROJECT
WORK, AND AUTHORIZING THE CITY MANAGER TO APPROVE CONTRACT
DOCUMENTS AND REIMBURSEMENT PAYMENTS TO THE CITY OF VISTA FOR
CARLSBAD'S SHARE OF THE REMAINING PROJECT WORK IN AN AMOUNT
NOT TO EXCEED $463,500.
WHEREAS, on Feb. 10, 2015, the City of Carlsbad (Carlsbad) and the City of Vista (Vista) entered
into a Project Agreement for the 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 desire to further amend the Project Agreement to transfer Lead
Agency responsibility to Vista for completion of certain 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 has 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 Hedionda Lift Station, Reach VC12,
in which Vista's owns 69.1% and Carlsbad owns 30.9%; and
WHEREAS, Carlsbad and Vista desire to share the cost of the Remaining Work in proportion to
their ownership of Reach VC12; and
April 14, 2020 Item #1 Page 7 of 11
WHEREAS, Carlsbad's share of the cost of the Remaining Work is $463,500, which includes
Carlsbad's share of the Owner's Advisor services and a 5% markup for construction administration and
project management services provided by Vista; and
WHEREAS, to fund Carlsbad's share of the Remaining Work, staff recommends the City Council
appropriate an additional $345,276 from the Sewer Connection Fee Fund to the Project Budget; and
WHEREAS, to implement the transfer of Lead Agency responsibility to Vista for completion of
the Remaining Work, staff recommends the City Council authorize 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.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as
follows:
1. That the above recitations are true and correct.
2. That the mayor of the City of Carlsbad is authorized and directed to execute
Amendment No. 4 to the Project Agreement between the City of Carlsbad and the City of Vista,
attached as Attachment A.
3. That the deputy city manager, administrative services, is directed to appropriate
additional funds from the Sewer Connection Fee Fund in the amount of $345,276, to the Project
Budget.
4. That the city manager of the City of Carlsbad is authorized to approve 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 $463,500.
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of
Carlsbad on the 14th day of April 2020, by the following vote, to wit:
AYES: Hall, Blackburn, Bhat-Patel, Schumacher
NAYS: None.
ABSENT: None.
MATT HALL, Mayor ,
Uim1 .. u;;,1Zmm~
/.4r'M_RBARA ENGLESON, City Clerk
V {SEAL)
Attachment A
FOURTH 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 FOURTH AMENDMENT ("Fourth Amendment") to the Project Agreement between
the City of Vista and the ity of Carl bad, dated February 10, 2015 ("Project Agreement"), is made
and entered into as of _.__Llolloat.::-%,-..L.>..,1-1---• 2020 ("Fourth Amendment Date"), by and between
the City of Vista, a chartered m ·cipal 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 the
Agua 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 on
December 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 Agreement
on 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 on
August 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 change
order, 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. Carlsbad and Vista
estimate the cost to complete the Remaining Work, including owner's advisor services, design-
build services and construction management and testing services to be $1,500,000.
G. Vista and Carlsbad desire to enter into a Fourth Amendment to the Project
Agreement to increase the Project Budget and to revise and clarify responsibilities for completion
of the Remaining Work with a new contractor using the progressive design-build method of project
delivery.
April 14, 2020 Item #1 Page 8 of 11
4th Amendment
Page 2
NOW, THEREFORE, Vista and Carlsbad agree as follows:
1. Vista shall be the Lead Agency for the Remaining Work on the Project. Carlsbad
shall continue to be the Lead Agency for all work on the Project other than the Remaining Work.
2. As Lead Agency for the Remaining Work, Vista will be responsible for
environmental compliance, construction contracting, administration of construction activities, and
fiscal management for the Remaining Work. Vista shall have sole authority to award contracts to
complete the Remaining Work; however, Vista and Carlsbad's Owner's Representatives shall
agree on the procurement documents Vista will use to solicit design-build proposals, and Vista
and Carlsbad's Owner's Representatives shall jointly negotiate the scope of work and contract
price with the selected design-build team. Vista's purchasing policies shall apply to the
implementation and performance of the construction contract, professional services agreements,
and other activity under this Fourth Amendment to complete the Remaining Work.
3. The Remaining Work is related to the pump station (VC12) where Vista has 69.1%
ownership and Carlsbad 30.9% ownership. Therefore, the costs of the completing the Remaining
Work shall be allocated between Vista and Carlsbad in those proportions.
4. With Carlsbad's advice and consent, as an initial step toward completing the
Remaining Work, Vista has hired COM Smith Inc. (COM) as the Owner's Advisor (OA) to prepare
the procurement documents to hire a design-build team to complete the Remaining Work. The
cost of the OA to prepare the procurement documents is $139,920. Carlsbad agrees to pay its
proportionate share of this cost plus a 5% mark up in consideration for construction administration
and project management services provided by Vista, for a total amount of $45,397.
5. The contract with the OA also includes an optional scope of work for COM to act
as the Construction Manager for the Remaining Work and perform materials testing, special
inspection, geotechnical testing, and coordination of environmental monitoring. The cost of this
work is not known at this time and approval of the optional scope of work is subject to the
provisions for Change Orders in Section 3. E. of the Project Agreement.
6. The Project Budget is increased by $1,500,000 to $61,625,078. The parties shall
allocate $1,500,000 from the Project Budget for the Remaining Work based on the ownership
percentages identified in paragraph 3, including the OA seNices identified in paragraph 4 and the
optional OA services identified in paragraph 5. The total cost of the Remaining Work may not
exceed $1,500,000 and the total cost of the Remaining Work and all other work on the Project
may not exceed the total Project Budget of $61,625,078 without the approval of a separate,
subsequent amendment to the Project Agreement.
[Continued on page 3.]
2
April 14, 2020 Item #1 Page 9 of 11
4th Amendment
Page 3
7. 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· __ --,,,c..,.,...._...,,'--"""-+--<,-.,.....,..__----
. ~YOR
ATTEST:
KA~H?=CLERK
By ~ 4 { 1.JJ-Ci"''
APPROVED AS TO F~RM~
:~.ROLD P . , ~-E-Y--
RISK MANAGEMENT REVIEW:
DOLO~RISK MANAGER
By:-~-~-----------
April 14, 2020
3
CITY OF CARLSBAD, a chartered ::nici:I oo~orat2!o&7
~HALL.MAYOR
ATTEST:
/f"'Af'"T:' ENGLESON, :1 :RK .
By\_~~ We 1rlb4._1
APPROVED AS TO FORM:
CELIA A. BREWER, CITY ATTORNEY
B~~~
Item #1 Page 10 of 11
2
April 14, 2020 Item #1 Page 11 of 11
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
Authorization to Execute Amendment No. 4 to the Project
Agreement between Carlsbad and Vista, Appropriation of
Funds and Authorization for the City Manager to Approve
Reimbursement Payments to Vista
Babaq Taj, Engineering Manager
April 14, 2020
Recommended Action
Adopt a resolution authorizing the execution of
Amendment No. 4 to the Project Agreement,
appropriation of $345,276 from the Sewer
Connection Fee Fund, and authorize the City
Manager to approve contract documents and
reimbursement payments to the City of Vista in an
amount not to exceed $463,500.
2
Project Background
•Joint project between Carlsbad and Vista
•New 33 MGD sewer lift station, pipeline
•Construction contract awarded in 2015
•Pump system performance issues
•Lift Station continuous operation for 180 Days
•Completion of remaining work: Amendment No. 4
3
Amendment No. 4
•Transfer lead agency responsibility to Vista for the completion of the remaining work
•Vista shall manage completion of the remaining work through the procurement of a new, design-build contract
•Estimated cost to complete the remaining work is $1.5M
•Increase Project Budget by $1.5M to complete the remaining work based on Ownership Percentages: Carlsbad (30.9%); Vista (69.1%)
•Carlsbad's share of the remaining work is $463,500, or 30.9%.
4
Recommended Action
Adopt a resolution authorizing the execution of
Amendment No. 4 to the Project Agreement,
appropriation of $345,276 from the Sewer
Connection Fee Fund, and authorize the City
Manager to approve contract documents and
reimbursement payments to the City of Vista in an
amount not to exceed $463,500.
5
Questions?
6