HomeMy WebLinkAbout2018-07-24; City Council; Resolution 2018-142RESOLUTION NO. 2018-142
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, AUTHORIZING EXECUTION OF AMENDMENT NO. 2 TO THE
AGREEMENT BETWEEN THE CITY OF CARLSBAD AND THE CITY OF VISTA FOR
THE CONSTRUCTION OF THE AGUA HEDIONDA SEWER LIFT STATION AND
VISTA CARLSBAD INTERCEPTOR SEWER, REACHES VC11-VC15, PROJECT
NOS. 3492, 3886 AND 3949.
EXHIBIT 1
WHEREAS, the Agua Hedionda Sewer Lift Station and Vista Carlsbad Interceptor Sewer, Reaches
VC11-VC15, Project Nos. 3492, 3886 and 3949 (Project) is jointly owned by the City of Carlsbad and the
City of Vista; and
WHEREAS, on Feb. 10, 2015, City Council approved an Agreement with the City of Vista (Project
Agreement) for funding of construction phase services for the Project by adoption of Resolution No.
2015-039; and
WHEREAS, on Dec. 5, 2017, City Council adopted Resolution No. 2017-223, approving
Amendment No. 1 to the Project Agreement between the City of Carlsbad and the City of Vista; and
WHEREAS, the Project is not anticipated to be completed prior to the current contract
completion date and the contractor, Pulice Construction, Inc., has submitted claims in the amount of
approximately $3.9 million for extra work by claiming changed conditions; and
WHEREAS, the City of Carlsbad and Pulice Construction Inc. have been unable to resolve the
claims using the the informal dispute resolution process required by the construction contract; and
WHEREAS, the parties have agreed to participate in non-binding mediation and the Carlsbad
City Attorney has contracted with the law firm of Burke, Williams & Sorensen, LLP, to provide legal
services through mediation; and
WHEREAS, the Project Agreement needs to be amended to include legal and expert services,
estimated at $250,000, required to complete the mediation process with Pulice Construction, Inc.; and
WHEREAS, the City Council of the City of Carlsbad, California has determined that it is in the
best interest of the city to execute Amendment No. 2 to the Project Agreement between the City of
Carlsbad and the City of Vista.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Carlsbad, California, as
follows:
July 24, 2018 Item #9 Page 4 of 7
EXHIBIT 1
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. 2 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 VCll-VClS,
Project Nos. 3492, 3886 and 3949, which is attached hereto as Attachment A.
PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of
Carlsbad on the 24th day of J.!!!y, 2018, by the following vote, to wit:
AYES:
NOES:
ABSENT:
M. Hall, K. Blackburn, M. Schumacher, C. Schumacher, M. Packard.
None.
None.
July 24, 2018 Item #9 Page 5 of 7
Attachment A
SECOND 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 VC11-VC15
THIS SECOND AMENDMENT ("Second 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 the k day of _ _02b: : , 2018 ("Second
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 first entered into a Project Agreement for the construction of
the Agua Hedionda Sewer Lift Station and Vista/Carlsbad Interceptor Sewer, Reaches VC11-
VC15 on February 10, 2015.
B. A First Amendment to the Project Agreement was executed December 8, 2017
increasing the project budget 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.
C. Pulice Construction, Inc., the contractor constructing the Agua Hedionda Sewer
Lift Station and Vista/Carlsbad Interceptor Sewer, Reaches VC11-VC15 project, has submitted
certified claims in the amount of approximately $3.9 million for extra work claiming changed
conditions.
D. Carlsbad and Pulice Construction, Inc., have exhausted the informal dispute
resolution process required by the contract and both parties have agreed to proceed to non-
binding mediation.
E. Carlsbad has contracted with the law firm of Burke, Williams & Sorensen, LLP, to
assist with resolving the claims through the non-binding mediation process.
F. Vista and Carlsbad desire to enter into a Second Amendment to the Project
Agreement by modifying the terms of the Project Agreement to include legal services necessary
to achieve completion of the non-binding mediation.
G. Funds are available within the existing contingency and no increase to the project
budget is required at the time of the agreement.
H. The claim pertains to VC14-VC15 where the City of Vista has 56.1% ownership
and the City of Carlsbad has 43.9% ownership, and the cost of the legal services shall be shared
in those proportions.
July 24, 2018 Item #9 Page 6 of 7
NOW, THEREFORE, in consideration of these recitals and the mutual covenants
contained herein, Vista and Carlsbad agree as follows:
1. The Project Agreement is amended to account for legal services required to
complete non-binding mediation with the contractor.
2. 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 i ter,V-a;q
1 "1—
ATTEST:
62,Lt i ., ]a K. A
Kathy Idez, City Clerk 6
APPRO AS TO M:
Darold Pieper, City torney
RISK MANAGEMENT REVIEW:
Dolores Gasco, is anager
CITY OF CARLSBAD, a chartered
municipal corporation
BY:
Matt Hak, Mayor
ATTEST:
Barbara Englespn, City Cle
AMSAS TO FORM:
Celia A. Brewer, City Attorney
City Attorney Approved Version 1/30/13
July 24, 2018 Item #9 Page 7 of 7