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