HomeMy WebLinkAbout2019-12-17; Municipal Water District; ; Authorizing a change order, contingency increase and appropriation for contract with Ferreira Coastal Construction Co, and authorizing Amendment No. 1 to Agreement with VCA Review fh Es-"
MUNICIPAL WATER DISTRICT
Staff Report .
Meeting Date:
To:
From:
Staff Contact:
Subject
Dec. 17,2019
President and Board Members
Scott Chadwick, Executive Manager
Valerie Airey, Municipal Projects Manager
Valerie.Airey@carlsbadca.gov, 760-602-2764
Ken Knatz, Engineering Manager/District Engineer
Ken.Knatz@carlsbadca.gov, 760-603-7354
Authorizing a change order, a contingency increase and appropriation for
the contract with Ferreira Coastal Construction Company, and authorizing
Amendment No. 1 to the Professional Services Agreement with Valley CM,
Inc. for construction management and inspection services, for the
construction of Recycled Water Phase Ill Pipeline Expansion Segment 5,
Capital Improvement Program (CIP) Project No. 5208-B and the
Miscellaneous Pipeline Replacements, CIP Project No. 3904.
Recommended Action
1. Adopt a Resolution authorizing a change order in the amount of $2,165,004, approving an
increase to the contingency amount by $672,993, and authorizing an additional
appropriation of $3,141,697 for the contract with Ferreira Coastal Construction Company
for the Recycled Water Phase Ill Pipeline Expansion Segment 5, Capital Improvement
Program (CIP) Project No. 5208-B and the Miscellaneous Pipeline Replacements, CIP Project
No. 3904.
2. Adopt a Resolution approving Amendment No. 1 to the Professional Services Agreement
(PSA) with Valley CM, Inc. for additional construction management and inspection services
in an amount not to exceed $184,400 for the Recycled Water Phase Ill Pipeline Expansion
Segment 5, Capital Improvement Program (CIP) Project No. 5208-B and the Miscellaneous
Pipeline Replacements, CIP Project No. 3904.
Executive Summary
On Oct. 16, 2018, the Carlsbad Municipal Water District (CMWD) Board adopted Resolution No.
1606, awarding a contract to Ferreira Coastal Construction Company (Contractor) for
construction of the Recycled Water Phase Ill Pipeline Expansion Segment 5, CIP Project No.
5208-B and the Miscellaneous Pipeline Replacements, CIP Project No. 3904 (Project). The
construction contract is valued at $9,487,655 with an additional 10% construction contingency
of $948,766.
The scope of the Project includes construction of approximately 37,000 linear feet (7 miles) of
recycled and potable water pipeline. The Project includes installation of recycled water
pipelines along Tamarack Avenue, Kelly Drive, Marron Road, Haymar Drive, El Camino Real and
Dec. 17, 2019 Item #13 Page 1 of 14
Cannon Road. The Project will provide approximately 180 acre-feet per year of recycled water
to customers and continue CMWD's goal of cost-effectively reducing demands on the potable
water system. The Project will also upgrade potable water mains within the Carlsbad Palisades
and Flower Fields Home Owner Associations {HOA) to current CMWD standards.
During pre-construction investigation, the Contractor identified numerous utilities which
conflict with vertical and horizontal alignments of the proposed recycled water pipeline. As a
result, revisions to the construction drawings were required to mitigate the utility conflicts
while maintaining compliance with the State Water Resources Control Board Division of
Drinking Water requirements to minimize the risk of potable water distribution system
contamination in proximity to recycled water. The Contractor has completed pre-construction
work activities and submitted change order costs for the extra work resulting from the redesign
effort to account for known utility conflicts. Staff has reviewed the Contractor's submitted costs
for accuracy and merit and determined that the remaining contract contingency is not sufficient
to construct the redesigned Project.
An additional appropriation of $3,141,697 is required to complete the Project. This cost is
comprised of the following elements:
$2,165,004 for Contractor direct costs and associated overhead to complete the extra
scope of work
$672,993 to increase the Project contingency by 5% (from 10% to 15%) and reimburse
the contingency fund the value of Contract Change Orders 1 and 2
$303,700 in support services (e.g. construction management and inspection, staff
support)
The Project budgets have sufficient funds for the required appropriation and contingency
increase.
Under Resolution No. 1606, the city manager may execute change orders up to $948,766 for
the Project. To address the redesigned portions of the Project, staff recommends that City
Council authorize the city manager to execute a change order in the amount of $2,165,004.
Staff also recommends increasing the contract contingency to 15%, which is more typical for
complex projects like this one. To provide additional construction management and inspection
services for the redesigned Project, staff recommends authorizing Amendment No. 1 to the PSA
with Valley CM, Inc. to add funding in an amount of $184,400.
Discussion
Contract with Ferreira Coastal Construction Company
The Project was developed to achieve two objectives: 1) reduce demands on the potable water
system by providing approximately 180 acre-feet per year of recycled water to customers for
non-potable use by replacing 79 potable meters; and 2) replace potable water mains within the
Carlsbad Palisades and Flower Fields HOAs to current CMWD standards.
Dec. 17, 2019 Item #13 Page 2 of 14
On July 17, 2018, the CWMD Board adopted Resolution No. 1601 approving plans and
specifications and authorizing the secretary of the Board to advertise and receive bids for the
Project.
On Oct. 16, 2018, the CMWD Board adopted Resolution No. 1606, awarding a contract to the
Contractor for construction of the Project. The construction contract is valued at $9,487,655
with an additional 10% construction contingency of $948,766 for a total of $10,436,421. Bids
received for the Project ranged between $9.49 million to $15.65 million. The construction
contract was awarded with 10% contingency. Staff recommends an additional 5% contingency,
based on the original contract price, be authorized by the Board for a total contingency of 15%,
which is more typical for complex, utility projects such as this one.
To date, the Contractor has completed the pre-construction investigation activities and
obtained field information which has been utilized to redesign and obtain pricing for the
Project. To mitigate the potential for additional time-based costs, the Contractor will work 10-
hour shifts (7 a.m. to 5 p.m.) in Segments 5-1 and 5-3 to make-up for some of the delay
incurred during the re-design effort. The total additional funding required to construct the
Project is $3,141,697 which includes: $2,165,004 for construction costs to complete the
redesigned Project; an additional $672,993 to replenish the expended contingency in Contract
Change Orders 1 and 2 as well as a 5% increase in contingency; and $303,700 for soft costs and
additional consulting services for the extended Project duration.
Staff recommends the Board authorize a Resolution to authorize the city manager to execute a
change order in the amount of $2,165,004 for the contract with the Contractor for extra work;
authorize an increase to the contingency amount by $672,993; and authorize an additional
appropriation of $3,141,697 to fund the construction costs, support services costs, Contract
Change Orders 1 and 2 and the additional contingency amount, relating to the redesigned
Project. The recommended actions exceed the city manager's procurement authority and
therefore requires CMWD Board authorization per Carlsbad Municipal Code Section
3.28.040.D.3.
Professional Services Agreement with Valley CM, Inc.
On Oct. 16, 2018, the CMWD Board adopted Resolution No. 2018-1605 authorizing a PSA with
Valley CM, Inc. to provide construction management and inspection services for the Recycled
Water Phase Ill Pipeline Expansion Segment 5 project. Due to the additional time required to
complete the Project, staff is requesting an Amendment to the Valley CM, Inc. PSA in the
amount of $184,400 under a one-year extension, to ensure they are available to support the
redesigned Project work. The recommended action exceeds the city manager's procurement
authority and therefore requires CMWD Board authorization per Carlsbad Municipal Code
Section 3.28.040.D.3 .
. Fiscal Analysis
Sufficient funds are available in the Recycled Water Phase Ill Pipelines Fund and the
Miscellaneous Pipeline Replacement Program Fund to support an increase in construction costs
of $2,165,004, an increase of $672,993 for the costs of Contract Change Orders 1 and 2 and an
Dec. 17, 2019 Item #13 Page 3 of 14
additional 5% contingency, and an additional $303,700 for Project support costs. Table 1
(below) provides Project appropriations, expenditures and encumbrances to-date.
Table 1-Appropriation and Expenditures To-Date
CURRENT APPROPRIATION BY FUNDING SOURCE
Recycled Water Phase Ill-Pipelines -CIP No. 5208-B $18,700,000
Miscellaneous Pipeline Replacement -CIP No. 3904 3,933,000
TOTAL $22,633,000
EXPENDITURES/ENCUMBRANCES TO DATE
Design $1,119,122
Construction Management & Inspection 899,620
Construction Contract -Ferreira Coastal Construction Company 9,487,655
Construction Contract Contingency 948,766
Environmental 93,515
Public Outreach 64,079
Miscellaneous (including other projects funded by these accounts) 4,954,065
TOTAL $17,566,822
AVAILABLE PROJECT BALANCE
Recycled Water Phase Ill-Pipelines -CIP No. 5208-B $4,066,178
Miscellaneous Pipeline Replacement -CIP No. 39042 1,000,000
TOTAL $5,066,178
Table 2 -Contingency Breakdown
ANTICIPATED PROJECT EXPENDITURES
Estimated Additional Construction Management and Inspection $184,400
Support
Estimated Additional Design Support During Construction 82,300
Estimated Additional Consultant Support for State Revolving Fund 12,000
Staff Time for Extended Project Schedule 25,000
SUBTOTAL ANTICIPATED PROJECT EXPENDITURES $303,700
ANTICIPATED CONSTRUCTION EXPENDITURES
Estimated Change Order for Completed Redesign $2,165,004
Increase Project Contingency 672,993
SUBTOTAL ANTICIPATED CONSTRUCTION EXPENDITURES $2,837,996
TOTAL ADDITIONAL CONTINGENCY REQUIRED . $3,141,697
Next Steps
Upon approval, staff will implement the CMWD Board's direction.
Environmental Evaluation (CEQA)
The CMWD Board adopted Resolution No. 1455 approving a Mitigated Negative Declaration
(MND) and Mitigation Monitoring and Reporting Program (MMRP) for the Phase Ill Recycled
Water Project (EIA 12-02). This Project is a sub-component (ES 5) of the Phase Ill Recycled
Dec. 17, 2019 Item #13 Page 4 of 14
Water Project and is subject to the Mitigation Measures (MM) that are identified in the MMRP
on Nov. 27, 2012.
The CMWD Board adopted Resolution No. 1601 approving an Addendum to the MND and
Supplemental Environmental Package which included extensions to Segment 5, the Segment 7
reach and the Potable Water Project that were not originally analyzed in the MND prepared for
the Program on July 17, 2018.
The revised Project is within the scope of the prior environmental documents and no further
environmental documentation is required per California Environmental Quality Act (CEQA)
Guidelines Section 15162. All applicable mitigation measures contained in the prior
environmental document have been incorporated into the construction documents.
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. The public impacted
by the Project have been notified of construction activities. The public can be updated on the
revised Project schedule once the CMWD Board provides direction.
Exhibits
1. CMWD Board Resolution authorizing a change order, a contingency increase and
appropriation for the contract with Ferreira Coastal Construction Company
2. CMWD Board Resolution authorizing Amendment No. 1 to the PSA with Valley CM, Inc.
3. Location Map
Dec. 17, 2019 Item #13 Page 5 of 14
RESOLUTION NO. 1627
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE CARLSBAD
MUNICIPAL WATER DISTRICT OF THE CITY OF CARLSBAD, CALIFORNIA,
AUTHORIZING A CHANGE ORDER IN THE AMOUNT OF $2,165,004,
APPROVING AN INCREASE TO THE CONTINGENCY AMOUNT BY $672,993,
AND AUTORIZING AN ADDITIONAL APPROPRIATION OF $3,141,697 FOR THE
CONTRACT WITH FERREIRA COASTAL CONSTRUCTION COMPANY FOR
CONSTRUCTION OF THE RECYCLED WATER PHASE 111 PIPELINE EXPANSION
SEGMENT 5, CAPITAL IMPROVEMENT PROGRAM (CIP) PROJECT NO. 5208-B
AND THE MISCELLANEOUS PIPELINE REPLACEMENTS, CIP PROJECT NO.
3904.
WHEREAS, on Oct. 16, 2018, the Board of Directors (Board) of the Carlsbad Municipal Water
District (CMWD) of the City of Carlsbad, California adopted Resolution No. 1606, awarding a $9,487,655
contract to the Ferreira Coastal Construction Company (Contractor), for construction of the Recycled
Water Phase Ill Pipeline Expansion Segment 5, CIP Project No. 5208-B, and Miscellaneous Pipeline
Replacements, CIP Project No. 3904 (Project), with an additional 10% construction contingency of
$948,766; and
WHEREAS, on June 11, 2019, the executive manager approved Change Order No. 1 in the
amount of $80,081, which was for labor and equipment to pothole additional wet and dry underground
utilities not shown on the plans; and
WHEREAS, on Sept. 19, 2019, the executive manager approved Change Order No. 2 in the
amount of $118,528, which was for further labor, material and equipment to pothole additional
underground utilities due to design conflicts and to patch and repair said potholes; and
WHEREAS, the Contractor has completed the majority of pre-construction investigation
activities and obtained field information to be used to redesign the contracted work as necessary to
address the underground utilities conflicts; and
WHEREAS, staff recommends authorizing a Change Order in the amount of $2,165,004 to
complete the redesigned Project under the construction contract with Contractor; and
WHEREAS, staff recommends increasing the construction contact contingency amount to 15%,
which is more typical for complex projects; and
WHEREAS an additional appropriation of $3,141,697 is necessary to complete the redesigned
Project considering additional construction costs of $2,165,004, additional costs of $672,993 for
Dec. 17, 2019 Item #13 Page 6 of 14
Change Orders 1 and 2 and for the 5% contingency increase, and additional support services costs of
$303,700.
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Carlsbad Municipal Water
District of the City of Carlsbad, California, as follows:
1. That the above recitations are true and correct.
2. That the executive manager or designee is hereby authorized to execute a Change Order
in the amount of $2,165,004 for construction costs associated with the redesigned Project.
3. That the Board authorizes an increase of $672,993 to the contingency amount for the
contract with Ferreira Coastal Construction Company for the Project, for a total new contingency
amount of $1,621,759.
4. That the executive manager or designee is hereby authorized to approve construction
change orders up to $1,621,759.
5. That the deputy city manager, administrative services, is authorized and directed to
appropriate funds from the Recycled Water Phase Ill Pipelines Project No. 5208-B (52082) budget in an
amount of $2,556,331 and funds from the Miscellaneous Pipeline Replacement Project No. 3904
(39041) budget in the amount of $585,366 for a total of $3,141,697 for construction of the Project.
PASSED, APPROVED AND ADOPTED at a Special Meeting of the Board of Directors of the
Carlsbad Municipal Water District ofthe City of Carlsbad, California on the 17th day of December 2019,
by the following vote, to wit:
AYES: Hall, Blackburn, Bhat-Patel, Schumacher.
NAYS: None.
ABSENT: None.
Dec. 17, 2019 Item #13 Page 7 of 14
RESOLUTION NO. 1628
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE CARLSBAD
MUNICIPAL WATER DISTRICT OF THE CITY OF CARLSBAD, CALIFORNIA,
APPROVING AMENDMENT NO. 1 TO THE PROFESSIONAL SERVICES
AGREEMENT (PSA) WITH VALLEY CM, INC. FOR ADDITIONAL
CONSTRUCTION MANAGEMENT AND INSPECTION SERVICES IN AN
AMOUNT NOT TO EXCEED $184,400 FOR THE RECYCLED WATER PHASE Ill
PIPELINE EXPANSION SEGMENT 5, CAPITAL IMPROVEMENT PROGRAM (CIP)
PROJECT NO. 5208-B AND THE MISCELLANEOUS PIPELINE REPLACEMENTS,
CIP PROJECT NO. 3904.
WHEREAS, on Oct. 16, 2018, the Board of Directors of the Carlsbad Municipal Water District
(Board) of the City of Carlsbad, California approved a PSA with Valley CM, Inc. (Consultant) to provide
construction management and inspection services for construction of the Recycled Water Phase Ill
Pipeline Expansion Segment 5, CIP Project No. 5208-B, and Miscellaneous Pipeline Replacements, CIP
Project No. 3904 (Project), in an amount not to exceed $899,620; and
WHEREAS, numerous underground utilities conflicts were discovered by the construction
contractor during pre-construction investigation activities for the Project, which resulted in contract
delays and the need to redesign the contracted construction work; and
WHEREAS, the Board has determined that additional construction management and inspection
services are necessary to support the redesigned Project; and
WHEREAS, Consultant has tendered a proposal for these additional construction management
and inspection services in an amount not to exceed $184,400; and
WHEREAS, approval of Amendment No. 1 with Consultant requires Board approval as it exceeds
the executive manager's approval authority under Carlsbad Municipal Code section 3.28.040.D.3; and
WHEREAS, the current PSA expires on Oct. 17, 2020, and the parties desire to exercise the one-
year extension to Oct. 17, 2021, to ensure that the Consultant's services are available during
completion of the redesigned Project; and
WHEREAS, Amendment No. 1 to the PSA has been prepared for the president of the Board's
signature and is attached hereto as Attachment A.
Dec. 17, 2019 Item #13 Page 8 of 14
NOW, THEREFORE, BE IT RESOLVED by the Carlsbad Municipal Water District Board of Directors
of the City of Carlsbad, California, as follows:
1. That the above recitations are true and correct.
2. That the president is authorized and directed to execute Amendment No. 1 to the PSA
with Valley CM, Inc., which is attached hereto as Attachment A, to extend the PSA by
one year and provide additional construction management and inspection services for
the Project in an amount not to exceed $184,400.
PASSED, APPROVED AND ADOPTED at a Special Meeting of the Carlsbad Municipal Water
District of the City of Carlsbad on the 17th day of December 2019, by the following vote, to wit:
AYES: Hall, Blackburn, Bhat-Patel, Schumacher.
NAYS: None.
ABSENT: None.
---+-~~-=--s=-----=-=----=-.J~:..i.a..:::L!!: 1 &'PlrJi 2 /
BARBARA ENGLESON, SECRETARY Dtpll!_j
(SEAL) Ci!j
c,Jen<
Dec. 17, 2019 Item #13 Page 9 of 14
PSA 19-620TRAN
AMENDMENT NO.1 TO EXTEND AND AMEND
AGREEMENT FOR RECYCLED WATER PHASE Ill PIPELINE EXPANSION
SEGMENT 5 CONSTRUCTION MANAGEMENT & INSPECTION SERVICES
VALLEY CM, INC.
This Amendment No.1 is entered into and effective as of the ~ day of U (<m.'o,g, c:'. , 20l<t extending and amending the agreement dated October 17, 2018
(the "Agreement") by and between the Carlsbad Municipal Water District, a Public Agency
organized under the Municipal Water Act of 1911, and a Subsidiary District of the City of Carlsbad,
("CMWD"), and VALLEY CM, INC., a California corporation ("Contractor") (collectively, the
"Parties") for .
RECITALS
A. The Parties desire to alter the Agreement's scope of work to increase the
construction management and inspection services hours to cover recent change orders to the
contract; and
B. The Parties desire to extend the Agreement for a period of one (1) year ending in
October 17, 2021; and
C. The Parties have negotiated and agreed to a supplemental scope of work and fee
schedule, which is attached to and incorporated in by this reference as Exhibit "A", Scope of
Services and Fee, for a total amount of one hundred eighty-four thousand, four hundred dollars
($184,400).
NOW, THEREFORE, in consideration of these recitals and the mutual covenants
contained herein, CMWD and Contractor agree as follows:
1. In addition to those services contained in the Agreement, as may have been
amended from time to time, Contractor will provide those services described in Exhibit "A". With
this Amendment, the total annual Agreement amount shall not exceed one million, eighty-four
thousand, twenty dollars ($1,084,020).
2. CMWD will pay Contractor for all work associated with those services described in
Exhibit "A" on a time and materials basis not-to-exceed one hundred eighty-four thousand, four
hundred dollars ($184,400). Contractor will provide CMWD, on a monthly basis, copies of invoices
sufficiently detailed to include hours performed, hourly rates, and related activities and costs for
approval by CMWD.
3. Contractor will complete all work described in Exhibit "A" by October 17, 2021.
4. All other provisions of the Agreement, as may have been amended from time to
time, shall remain in full force and effect.
5. All requisite insurance policies to be maintained by the Contractor pursuant to the
Agreement, as may have been amended from time to time, shall include coverage for this
Amendment.
General Counsel Approved Version 1/30/13
1 of 3
Dec. 17, 2019 Item #13 Page 10 of 14
PSA 19-620TRAN
6. The individuals executing this Amendment and the instruments referenced 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 hereof of this Amendment.
CONTRACTOR
VALLEY CM, INC.,
a California Corporation
/) (sign here)
Galina Mochel, President
(print name/title)
CARLSBAD MUNICIPAL WATER
DISTRICT, a Public Agency organized
under the Municipal Water Act of 1911,
and a Subsidiary District of the City of
Carlsbad
By:
~ (sign here) ~ ~ J-/eclif(;ctY¥2. {}G/WJ
fc,r Barbara Engleson, Secretary 7 Ct~
Paul Mochel, Secretary
(print name/title)
If required by CMWD, 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, General Counsel
By Dep~d:~el
General Counsel Approved Version 1/30/13
2 of 3
Clhi<
Dec. 17, 2019 Item #13 Page 11 of 14
November 15, 2019
Valerie Airey, MPA, LEED AP
Municipal Projects Manager
Public Works
City of Carlsbad
1635 Faraday A venue
Carlsbad, CA 92008
V
V/\LLEY
c□nstruc:tlon Management
SUBJECT: Recycled Water Phase 3 Pipeline Expansion Segment 5 Project
Construction Management & Inspection Amendment Request #1
Dear Ms. Airey:
PSA 19-620TRA
Exhibit "A"
lnfo@valleycm.com 1866 966 2720
Valley CM's original budget was based on twenty-four (24) months of construction. However,
recent change orders to the contract have extended the project duration 5 months that are not
included in our scope of work. We respectfully request an amendment to our contract to
accommodate the contractor's extended contract duration.
Fee Proposal
Project Executive -Paul Mochel, PE, CCM
40 Hours (5 months@ 8 hours/month)@ $155hour
Construction Manager -Lisa Laszlo, CCM
440 Hours (5 months@ 88 hours/month)@ $145/hour
Inspector -James Gaddis
880 Hours (5 months @ 176 hours/month) @ $ 130/hour
Please call me if you have any questions.
Sincerely,
Valley Construction Management
e~
Paul Mochel, PE, CCM
Principal Construction Manager
ESTIMATED FEE
$6,200
$63,800
$114,400
$184,400
--------------------www.ValleyCM.com --------------------
son Diego • El Centro • Mexico
3 of 3 Dec. 17, 2019 Item #13 Page 12 of 14
C-22
RECYCLED WATT~
SEGMEN
SEE ABOVE RIGHT
D WATER SEGMENT 5-1 RECYCLE
C-19
C-20
t
CONFORMED
SET
C-33
t
Dec. 17, 2019 Item #13 Page 13 of 14
RECYCLED WATER SEGMENT 5-3
/
C-48
' '
' I
' I
\ POTABLE WATER
FLO\AJER FIELDS
SEE BELOW RIGHT
C-45
C-42
RECYCLED WATER SEGMENT 7
POTABLE WATER FLOWER FIELDS
C-61
"RECORD DRAWING"
fsirul CITY OF CARLSBAD ~ UTILITIES Dl\llSION
KEY MAP/I
Dec. 17, 2019 Item #13 Page 14 of 14