HomeMy WebLinkAbout2019-06-11; City Council; Resolution 2019-082RESOLUTION NO. 2019-082
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, AUTHORIZING EXECUTION OF AN AGREEMENT WITH ARCADIS
U.S., INC. TO PROVIDE CONSTRUCTION MANAGEMENT AND INSPECTION
SERVICES FOR THE AGUA HEDIONDA SEWER LIFT STATION,
VISTA/CARLSBAD INTERCEPTOR SEWER REACHES VC11B-VC15 AND
RECYCLED WATER LINE, CAPITAL IMPROVEMENT PROGRAM (CIP) PROJECT
NOS. 3492, 3886 AND 3949, IN AN AMOUNT NOT TO EXCEED $423,589 AND
APPROPRIATING $965,768 IN ADDITIONAL FUNDS FROM THE SEWER
CONNECTION FEE FUND FOR CHANGES TO THE PROJECT.
EXHIBIT 1
WHEREAS, on Nov. 11, 2014, the City Council of the City of Carlsbad, California adopted
Resolution No. 2014-257 approving an agreement with Arcadis U.S., Inc. to provide construction
management and inspection services for the Agua Hedionda Sewer Lift Station, Vista/Carlsbad
Interceptor Sewer Reaches VC11B-VC15 and Recycled Water Line, CIP Project Nos. 3492, 3886 and
3949 (Project); and
WHEREAS, it has been determined that the original terms of the agreement have been
exhausted and therefore no further amendments may be made to the existing agreement; and
WHEREAS, staff desires to enter into a new agreement with Arcadis U.S., Inc. to provide
construction management and inspection services through completion of the Project; and
WHEREAS, Section 3.28.060 of the Carlsbad Municipal Code requires that formal bidding
procedures be utilized when the anticipated cost of the professional services is greater than $35,000.00
per agreement year; and
WHEREAS, Section 3.28.ll0(N) of the Carlsbad Municipal Code allows for formal bidding
procedures to be exempted, as determined by the awarding authority, when in the discretion of the
awarding authority solicitations of bids or proposals would be impractical, unavailing, impossible, or
not in the best interests of the city; and
WHEREAS, staff and the city's purchasing officer recommend that an exemption to the formal
bidding procedures be granted as it is in the best interest of the city (Attachment A); and
WHEREAS, staff and Arcadis U.S., Inc. negotiated the scope of work and the associated fee in an
amount not to exceed $423,589 to provide construction management and inspection services for the
Project; and
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EXHIBIT 1
WHEREAS, the City Council has determined it necessary and in the public interest to allow for
an exemption of the formal bidding procedures and to execute an agreement with Arca dis U.S., Inc. for
construction management and inspection services for the Project; and
WHEREAS, a net additional appropriation in the amount of $965,768 from the Sewer
Connection Fee Fund to the Project's budget is requested to fund the Arcadis agreement, design
engineering and construction support services, anticipated legal fees, and the estimated staff
administrative costs and project contingency; and
WHEREAS, the City of Carlsbad will be reimbursed by the City of Vista for its portion of the
additional costs in accordance with the Project Agreement as approved by City Council Resolution No.
2015-039, and as amended.
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. Pursuant to Section 3.28.060 of the Carlsbad Municipal Code, the City Council
determines it is in the best interests of the city to enter into an agreement with Arcadis
U.S., Inc. for construction management and inspection services without formal bidding
procedures.
3. That the Mayor is hereby authorized and directed to execute the agreement, attached
hereto as Attachment B, with Arcadis U.S., Inc. to provide construction management
and inspection services for the Agua Hedionda Sewer Lift Station, Vista/Carlsbad
Interceptor Sewer Reaches VC11B-VC15 and Recycled Water Line, CIP Project Nos. 3492,
3886 and 3949, in an amount not to exceed $423,589.
4. That the Deputy City Manager, Administrative Services, is hereby directed to
appropriate additional funds from the Sewer Connection Fee Fund, in the amount of
$423,589, to the Project's budget for the agreement with Arcadis U.S., Inc.
5. That the Deputy City Manager, Administrative Services, is hereby directed to
appropriate additional funds from the Sewer Connection Fee Fund, in the amount of
$542,179, to the Project's budget for design engineering and construction support
services, anticipated legal fees, staff administrative costs and Project contingency.
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EXHIBIT 1
PASSED, APPROVED AND ADOPTED at a Special Meeting of the City Council of the City of
Carlsbad on the 11th day of June, 2019, by the following vote, to wit:
AYES:
NAYS:
ABSENT:
Hall, Blackburn, Bhat-Patel, Schumacher, Hamilton.
None.
None. M1Ji!YI
,$~ -for BARBARA ENGLESON, City Clerk
(SEAL)
June 11, 2019 Item #11 Page 9 of 32
TO:
. FROM:
RE:
DATE:
PURCHASING OFFICER
ENGINEERING MANAGER
( City of
Carlsbad
PURCHASING EXEMPTION FOR CONTRACTOR ARCADIS U.S., Inc.
MAY 1, 2019
The Vista/Carlsbad Interceptor Sewer was constructed in the early 1960s and extends
. approximately eight miles northeasterly from the Encina Water Pollution Control Facility to the
City of Vista. The interceptor sewer is identified 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 lower portion of the Vista/Carlsbad Interceptor Sewer
system. The Project is in the City of Carlsbad beginning at the north shore of the Agua Hedionda
Lagoon and extending southerly, approximately 2.3 miles, to the Encina Water Pollution Control
Facility.
On May 5, 2015 the Carlsbad City Council adopted Resolution No. 2015-124, authorizing the
award of a contract with Pulice Construction, Inc. (Contractor) to construct the Project for an
amount not to exceed $44,195,300. Soon after the award of the contract, the Project
encountered unforeseen and changed conditions that delayed the construction schedule.
Recently, as the Project has entered the closeout phase of the contract, new impacts including
construction delays and performance issues associated with the newly-constructed pumping
system have further delayed the Project. The city is currently working to resolve outstanding
construction claims as well as performance issues associated with the newly constructed
pumping system.
On Nov. 11, 2014, the Carlsbad City Council adopted Resolution No. 2014-257 approving an
agreement with Arcadis U.S., Inc. to provide construction management and inspection services
for the Project. In subsequent yea rs, amendments were issued to increase the scope to include
environmental monitoring and repo.rting, raised the funding limit to $5,181,320 and extended
the agreement duration. Staff seeks to amend the current agreement with Arcadis U.S., Inc. to
provide additional construction management and inspection services. However, due to the
extended duration of the Project, the City Attorney's Office and Contract Administration staff
have determined that no further amendments may be made to the existing agreement.
As a result of this determination, staff desires to enter into a new agreement with Arcadis U.S.,
Inc. to provide the city with support in its defense of construction claims, to administer technical
support as the city seeks resolution for the issues associated with the pumping system, and to
provide construction management and inspection services through the completion of the
Project.
Attachment A
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DocuSign Envelope ID: 48050DAF-C1 F9-4FA2-B322-D06BD40821 B6
PSA 19-802TRAN
AGREEMENT FOR CONSTRUCTION MANAGEMENT AND INSPECTION SERVICES FOR
THE AGUA HEDIONDA SEWER LIFT STATION, VISTA/CARLSBAD INTERCEPTOR
SEWER REACHES VC11B-VC15, AND RECYCLED WATER LINE SERVICES
ARCADIS U.S., INC.
THIS AGREEMENT is made and entered into as of the /3 day of J:'.v n f , 2019, by and between the CITY OF CARLSBAD, a municipal
corporation, ("City"), and ARCADIS U.S., INC., a Delaware corporation, ("Contractor").
RECITALS
A. City requires the professional services of a consultant that is experienced in
construction management and inspection services.
B. Contractor has the necessary experience in providing professional services and
advice related to construction management and inspection services.
C. Contractor has submitted a proposal to City and has affirmed its willingness and
ability to perform such work.
NOW, THEREFORE, in consideration of these recitals and the mutual covenants
contained herein, City and Contractor agree as follows:
1. SCOPE OF WORK
City retains Contractor to perform, and Contractor agrees to render, those services (the
"Services") that are defined in attached Exhibit "A", which is incorporated by this reference in
accordance with this Agreement's terms and conditions.
2. STANDARD OF PERFORMANCE
While performing the Services, Contractor will exercise the reasonable professional care and skill
customarily exercised by reputable members of Contractor's profession practicing in the
Metropolitan Southern California Area, and will use reasonable diligence and best judgment while
exercising its professional skill and expertise.
3. TERM
The term of this Agreement will be effective for a period of two (2) years from the date first above
written. The City Manager may amend the Agreement to extend it for one (1) additional one (1)
year periods or parts thereof. Extensions will be based upon a satisfactory review of Contractor's
performance, City needs, and appropriation of funds by the City Council. The parties will prepare
a written amendment indicating the effective date and length of the extended Agreement.
4. TIME IS OF THE ESSENCE
Time is of the essence for each and every provision of this Agreement.
5. COMPENSATION
The total fee payable for the Services to be performed during the initial Agreement term will be
four hundred twenty-three thousand, five hundred eighty-nine dollars ($423,589). No other
compensation for the Services will be allowed except for items covered by subsequent
amendments to this Agreement. If the City elects to extend the Agreement, the amount shall not
exceed one hundred thousand dollars ($100,000) per Agreement year. The City reserves the
right to withhold a ten percent (10%) retention until City has accepted the work and/or Services
specified in Exhibit "A".
Incremental payments, if applicable, should be made as outlined in attached Exhibit "A".
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DocuSign Envelope ID: 48050DAF-C1F9-4FA2-B322-D06BD40821B6
PSA 19-802TRAN
27. AUTHORITY
The individuals executing this Agreement 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 Agreement.
CONTRACTOR
ARCADIS U.S., INC., a Delaware
corporation
By:
By:
(sign here)
Jon Westervelt. Vice President
(print name/title)
(sign here)
Ellen M. Hooper, Assistant Treasurer
(print name/title)
CITY OF CARLSBAD, a municipal
corporation of the State of California
By:
ATTEST:
~ -t'lf 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
Chairman,
President, or
Vice-President
Group B
Secretary,
Assistant Secretary,
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
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