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CC 2017-07-25_09f Appropriation - Well No 11TO: FROM: BY: SUBJEC DATE: RECOM It is reco 1. A W 2. A A th 3. A SUMMA Addition unexpec services Council approve IMPACT The add BACKG On Aug Associat Canada the City Negative CITY CHRI JILL CT: CONS MUN CONS PROJ FOR JULY MMENDATI ommended Authorize fu Well No. 11 Approve a S Amendment he subject p Appropriate ARY OF AC nal funds an cted costs s for the Wa will need e the amend T ON FINAN ditional appr GROUND: ust 24, 20 tes for the , Well Equip Council ap e Declaratio COUNCIL ISTOPER M MCPEEK, SIDERATIO ICIPAL W STRUCTIO JECT, PW CONSULT Y 25, 2017 ON: the City Co nding to pr treatment f Sixth Amen t") with Gar project and $30,268 fro CTION: nd an ame to supply p ater Well N to authoriz dment to th NCIAL AND ropriation o 10, the Cit design of pment and pproved th on in accord MEMO L MAGDOSK CAPITAL ON OF AN WATER ON, WELL 2010-07 A TANT SERV ouncil: rovide for p facilities; ndment to ring, Taylor authorize t om the Wat endment to power and o. 11 proje ze and app e consultan D PERSON of $30,268 i ty Council the Munici Pipeline Ins e design a dance with ORANDUM KU, PUBLIC IMPROVEM N ADDITIO WELL N EQUIPMEN AND AN AM VICES phase 3 elec the Agreem r & Associa the Mayor t ter Availabi a consulta additional ct. In orde propriate th nt agreeme NNEL RESO s within the awarded a ipal Water stallation Pr and adopted the Californ C WORKS MENT PRO ONAL APP NO. 11 NT AND P MENDMEN ctrical serv ment for C ates constru to execute ility Fund b ant agreem consultant r to procee e additiona ent. OURCES: e Water Ava a design co Well No. 1 roject PW 2 d Resolutio nia Environm DIRECTOR OJECT MA PROPRIAT TREATM PIPELINE IN NT TO THE vice to the M onsultant S uction supp the Amend alance for t ment are re t oversight ed with the p al necessa ailability Fu ontract to G 11 Treatme 2010-07. On on No. 458 mental Qua R NAGER ION FOR MENT PL NSTALLAT E AGREEM Municipal W Services ("S port service dment; and the project. quired to o of constru project, the ry funding, und balance Garing Tayl ent Plant o n May 13, 2 84 to appro ality Act (CE THE LANT TION MENT Water Sixth es for . offset ction e City and e. lor & on La 2014, ove a EQA) Item 9.f. - Page 1 CITY COUNCIL CONSIDERATION OF AN ADDITIONAL APPROPRIATION FOR THE MUNICIPAL WATER WELL NO. 11 TREATMENT PLANT CONSTRUCTION, WELL EQUIPMENT AND PIPELINE INSTALLATION PROJECT, PW 2010-07 JULY 25, 2017 PAGE 2 guidelines. The project was advertised on July 14, 2015 and four bids were received; however, the lowest bid was approximately $146,000 above the Engineer’s Estimate of $317,500. Subsequently, the City Council rejected the bids on August 11, 2015, and the bid documents were revised and the project was advertised again, and the bids were received on March 9, 2017. The lowest bidder withdrew their bid due to a non-responsive bid and the second lowest bidder, Brough Construction Inc. (Brough) was awarded a construction contract at the April 11, 2017 City Council meeting in the amount of $429,573 which was $114,173 above the engineer’s estimate. The City Council also authorized the City Manager to approve change orders up to 10% of the contract amount ($42,957), allocated $274,000 from the available $1.1M Water Availability Fund Balance which included $5,000 for the Pacific Gas and Electric Company (PG&E) service extension. ANALYSIS OF ISSUES: PG&E Subsequent to the award of the construction contract, the City paid PG&E an advance payment of $2,500 of the estimated $5,000 allocation from the project budget to provide three-phase power to the water treatment facilities. Subsequently, PG&E provided a final contract and remaining balance in the amount of $26,031.85. This expenditure is significantly higher than originally anticipated and estimated for the project, yet is within the contingency amount of $42,957. However, the contingencies are reserved for Brough to cover additional construction costs that typically occur during construction. It is recommended and more prudent to request an additional appropriation of $23,532 from the Water Fund balance to retain the $42,957 of contingencies for unanticipated construction costs for Brough. Any contingencies that are not used on the project will be returned to the Water Availability Fund balance. Consultant Services-Amendment to Agreement As a result of the aforementioned design modifications between 2010 and 2017, consultations, field observations, and revisions to the bid documents, five amendments to the Agreement with Garing Taylor & Associates have been executed to date. During the current construction activities, additional project submittals and requests for information were received from Brough and forwarded to the consulting engineer for review and clarification. This Sixth Amendment to the Consultant Services Agreement includes additional services and increases the “not to exceed” amount of service by $6,736.06 to cover the additional consultant oversight of the project. ALTERNATIVES: The following alternatives are provided for the Council’s consideration: 1. Approve staff’s recommendations; 2. Do not approve staff’s recommendations; or 3. Provide direction to staff. Item 9.f. - Page 2 CITY COUNCIL CONSIDERATION OF AN ADDITIONAL APPROPRIATION FOR THE MUNICIPAL WATER WELL NO. 11 TREATMENT PLANT CONSTRUCTION, WELL EQUIPMENT AND PIPELINE INSTALLATION PROJECT, PW 2010-07 JULY 25, 2017 PAGE 3 ADVANTAGES: The project is consistent with the Council goals to support city infrastructure and to increase water security and will provide an additional 40 to 50 acre-feet per year of water supply for the City. DISADVANTAGES: The appropriation from the Water Availability Fund balance reduces potential funding for future capital projects. ENVIRONMENTAL REVIEW: The Council adopted Resolution No. 4584 on May 13, 2014 adopting a Negative Declaration for the project. PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted at City Hall and on the City’s website in accordance with Government Code Section 54954.2. Item 9.f. - Page 3 AGREEMENT FOR CONSULTANT SERVICES AMENDMENT NO. 6 This Fifth Amendment (“Fifth Amendment”) to Agreement for Consultant Services Agreement (“CSA”) by and between the CITY OF ARROYO GRANDE (“City”) and GARING, TAYLOR & ASSOCIATES, INC. (“Consultant”) is made and entered into this ______ day of ____________ 2017, based on the following facts: WHEREAS, the parties entered into a CSA dated September 20, 2010, for the design and construction services for the Well No. 11 project, PW 2010-07; and WHEREAS, the parties entered into a First Amendment to CSA dated June 12, 2012, for design services for the Well No. 11 project, PW 2010-07, to revive and extend the contract term to December 31, 2013; and WHEREAS, the parties entered into a Second Amendment to CSA dated May 28, 2013, for design services for the Well No. 11 project, PW 2010-07, to include additional services and increase the not to exceed cost; and WHEREAS, the parties entered into a Third Amendment to CSA dated March 11, 2014 for design services for the Well No. 11 project, PW 2010-07, to revive and extend the contract term to December 31, 2015, and to include additional services and increase the not to exceed cost; and WHEREAS, the parties entered into a Fourth Amendment to CSA dated January 12, 2016, for design and construction services for the Well No. 11 project, PW 2010-07, to revive and extend the contract term to December 31, 2016, and to include additional services and increase the not to exceed cost; and WHEREAS, the parties entered into a Fifth Amendment to CSA dated April 25, 2017, to revive and extend the contract term for the Well No. 11 project, PW 2010-07 to December 31, 2017; and WHEREAS, the parties desire to revive and further modify the CSA as set forth herein. NOW THEREFORE, for valuable consideration the receipt and sufficiency of which is acknowledged, the parties agree as follows: 1. Section 2 (“SERVICES”) of the Agreement, shall be amended to include the additional services to the CSA as specified in Exhibit “A” attached hereto and incorporated herein by this reference. 2. Section 5 (“PAYMENT”) of the Agreement, shall be amended to increase the “not to exceed” amount from $110,962.76 to $117,698.82. 3. Except as modified herein, all other terms and conditions set forth in the CSA, as amended, shall remain in full force and effect. Item 9.f. - Page 4 IN WITNESS WHEREOF, CITY and CONSULTANT have executed this Fourth Amendment on the day and year first set forth above. CITY OF ARROYO GRANDE GARING, TAYLOR & ASSOCIATES By: By: Jim Hill, Mayor Its: (Title) Attest: Kelly Wetmore, Director of Legislative and Information Services/City Clerk Approved As To Form: Heather Whitham, City Attorney Item 9.f. - Page 5 EXHIBBIT A Item 9.f. - Page 6 Item 9.f. - Page 7 THIS PAGE INTENTIONALLY LEFT BLANK Item 9.f. - Page 8