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Home My WebLink About2020-04-14; City Council; Resolution 2020-060RESOLUTION 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 6 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 ofthe 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 ex~cute 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 , (Jtxne;;.&o,/Zffk.JJL~ /--1fM_RBARA ENGLESON, City Clerk V (SEAL) April 14, 2020 Item #1 Page 7 of 11 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_._..,__.,_,~.......,~--• 2020 ("Fourth Amendment Date"), by and between the City of Vista, a chartered m icipal 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 services 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 DOLO~RISK MANAGER By:_...~-~~-------- April 14, 2020 CITY OF CARLSBAD, a chartered ::nici:I corporal✓~ ~HALL.MAYOR ATTEST: rAr"1,A ENGLESON, ? :RK _ By\_~~ We 1Yl'=-4._1 APPROVED AS TO FORM: CELIA A. BREWER, CITY A HORNEY B~~~ 3 Item #1 Page 10 of 11