HomeMy WebLinkAbout2019-06-11; City Council; Resolution 2019-083RESOLUTION NO. 2019-083
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD,
CALIFORNIA, AUTHORIZING EXECUTION OF AMENDMENT NO. 3 TO THE
AGREEMENT BETWEEN THE CITY OF CARLSBAD AND THE CITY OF VISTA FOR
THE CONSTRUCTION OF 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.
EXHIBIT 2
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, on July 24, 2018, City Council adopted Resolution No. 2018-142, approving
Amendment No. 2 to the Project Agreement between the City of Carlsbad and the City of Vista; and
WHEREAS, the City of Carlsbad and the City of Vista desire to enter into Amendment No. 3 to
increase the Project Agreement budget by $1,668,108 for changes to the Project scope of work
requiring design engineering and construction support services, estimated legal fees and construction
management and inspection services; and
WHEREAS, the Project has been delayed beyond the contract completion date and the forecast
completion date is unknown and dependent upon the identification and resolution of performance
issues associated with the newly constructed pump station; and
WHEREAS, the City of Carlsbad and the contractor, Pulice Construction, Inc., have been unable
to resolve performance issues associated with the newly constructed pump station; and
WHEREAS, the City of Carlsbad has hired a third-party consultant to conduct a thorough analysis
of the newly constructed pump station; and
June 11, 2019 Item #11 Page 28 of 32
EXHIBIT 2
WHEREAS, the City of Carlsbad seeks to amicably resolve the pump system issue(s) with Pulice
Construction, Inc., by identifying the causal factors impacting the performance of the newly
constructed pump station; 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. 3 to the Project Agreement between the City of
Carlsbad and the City of Vista to increase the upper budget limit for Vista's cost share to ensure timely
reimbursement payment.
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. 3 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 and
Recycled Water Line, Project Nos. 3492, 3886 and 3949, which is attached hereto as Attachment A.
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.
(SEAL)
June 11, 2019 Item #11 Page 29 of 32
Attachment A
THIRD 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 THIRD AMENDMENT ("Third 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 13 day of P\, L~ 1 "'-d,:\: , 2019 (''Third
Amendment Date"), by and between the City of Vista, hartered 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 to
provide additional funding in the amount of $1,754,470 for additional construction costs
associated with unforeseen issues and delays as well as additional construction management
and inspection services required to complete the Project for a total Project Budget of $58,456,970.
C. A Second Amendment to the Project Agreement was executed September 11,
2018 to modify the terms of the Project Agreement to include legal services necessary to complete
the Project.
D. Vista and Carlsbad desire to enter into a Third Amendment to the Project
Agreement 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. The contractor's claim of a changed condition pertains to the microtunneling scope
of work (VC14-VC15) where Vista has 56.1 % ownership and Carlsbad has 43.9% ownership,
therefore the cost of the legal services to support the resolution of this claim shall be shared
between Vista and Carlsbad in those proportions.
F. The performance issue(s) related to the pumping system pertains to the lift station
(VC 12) where Vista has 69.1 % ownership and Carlsbad has 30.9% ownership, therefore the cost
of the legal services, design engineering and construction support, and construction management
and inspection services to support the resolution of this issue shall be shared between Vista and
Carlsbad in those proportions.
June 11, 2019 Item #11 Page 30 of 32
NOW, THEREFORE, in consideration of these recitals and the mutual covenants
contained herein, Vista and Carlsbad agree as follows:
1. The Project Budget is increased by $1,668,108 to $60,125,078 to account for the
additional legal services, design engineering and construction support, and construction
management and inspection services required to complete the Project.
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: ' r Judy Rit~ayor
ATTEST:
AP~
Da~
2
CITY OF CARLSBAD, a chartered
municipal corporation
APPROVED AS TO FORM:
City Attorney Approved Version 1/30/13
June 11, 2019 Item #11 Page 31 of 32