HomeMy WebLinkAbout03/18/2008, C2 - CONTRACT AMENDMENT NO.4 FOR TANK FARM GRAVITY SEWER, LIFT STATION AND FORCE MAIN DESIGN AND CONSTRU i
council M�D� 3,18,2008
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CITY OF SAN LUIS OBISPO
FROM: John Moss, Utilities Director
Prepared By: David Hix, Wastewater Division Manager
SUBJECT: CONTRACT AMENDMENT No.4 FOR TANK FARM GRAVITY SEWER,
LIFT STATION AND FORCE MAIN DESIGN AND CONSTRUCTION
SUPPORT SERVICES
CAO RECOMMENDATION
1. Approve amendment No. 4 with Brown and Caldwell Engineers for additional design and
construction support services for the Tank Farm Gravity Sewer, Lift Station and Force
Main project, specification No 99703 in the amount of$378,000 and authorize the mayor
to execute the amendment.
2. Authorize an increase in the total project budget by $443,000 from $13,242,900 to
$13,685,900
DISCUSSION
On February 12, 2008, Council approved plans and specifications and authorized staff to bid the
Tank Farm Gravity Sewer, Lift Station and Force Main project. At the same time, Council
increased funding for the project for increased construction costs. However, the additional costs
discussed in this report were received after the February 12, 2008, meeting and could not be
included in that report. This request is for the approval of funding to cover additional design
services, office engineering services and to fund dewatering operations oversight by an
environmental consultant. Presently the project is being advertised with bids due April 10, 2008
and construction scheduled to begin in early June.
Construction Support Services (Office Engineering)
This request is for office engineering services from the design engineer, Brown and Caldwell,
during construction to ensure that the project is being built to the plans and specifications and
ensure that any changes or issues with the construction are addressed properly and quickly.
Services include the review of material and equipment submittals; requests from the contractor
for clarification of the plans and specifications, reviewing and assisting in possible change orders
to, the original contract, consultation and the preparation of the record drawings that will
incorporate all changes from the original project. The design engineer typically produces these
reviews. Construction support services are critical for the efficient and successful
implementation of the construction process. This support will assist the construction manager
and inspection staff; help keep the project on schedule and control costs. This proposal is
consistent with the size, cost and complicated nature of this project, is based upon the estimated
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Contract Amendment No. 4 for Tank Farm Project Page 2
amount of services this project needs per the plans and specifications and will be billed on an as
needed basis.
Construction Site Dewatering
This request also includes an increase to the project budget for funding of dewatering operations.
The Chevron Tank Farm has extensive petroleum contamination and will require the ground
water pumped from excavations to be treated before being discharged to the ground. Chevron
has developed a contaminated materials plan for the project and will be providing the treatment
system to remove the petroleum, but the City will be responsible for the disposal of the treated
groundwater. Dewatering operations have become a highly regulated process and while the
contractor will be responsible for complying with dewatering regulations on the remainder of the
project, the special nature of the Chevron tank farm property necessitated the City and Chevron
prepare a special plan and acquire permits prior to construction to keep the project on track and
ensure compliance.
Additional Design Services
Additional services during design were required as follows:
During design of the pipeline a contractor working for Chevron was locating and verifying
abandoned oil and water pipelines on the property. Staff felt this was an opportunity to include
valuable, previously unavailable, Chevron utility information in the plans that would save time
and money during construction.
The lift station site has required several different legal descriptions to address access, slope
maintenance, drainage and construction easements that were previously not indentified. These
legal descriptions and the following appraisals will help the City right of way consultant better
define the offers the City will make to the property owner.
Hidden Hills Mobile Lodge has a small private lift station and force main that discharges to
the City sewer. During design it has become clear that connecting this facility to the new Tank
Farm Rd gravity sewer would help avoid conflicts with their private force main, alleviate any
future service issues with their private lift station and offer better customer service.
Additional drawings were added to the plans to meet San Luis Obispo County's requirements
that traffic control plans be incorporated into the project to address any traffic impacts during
construction on Tank Farm Road. Finally, recent changes in technology and City specifications
have required additional coordination and design for the process control equipment needed to
operate the station.
Additional Work and Services Not Identified in this Report
Staff has tried to estimate all possible additional costs in this report. However, due to the large
number of unknown environmental conditions with this project and easement acquisition offers
still to be made, additional funding may be required for these items. Currently money exists in
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Contract Amendment No. 4 for Tank Farm Project Page 3
the budgm
et for easement acquisition and no other environmental issues have been identified.
Staff will return to Council if additional budget is needed for these areas.
Several additional items will require Council approval for this project. Below is a description of
these items and estimated schedule of upcoming Council action items:
• April, agreement for construction dewatering.
• April, agreement with Chevron for contaminated material handling.
• April/May, agreement for construction management services.
• April and May, easement acquisition agreements.
CONCURRENCES
City engineering staff has reviewed this report and concur with the recommendation.
FISCAL IMPACT
The Tank Farm Gravity Sewer and Lift Station project budget to-date is $13,242,900.
Recommended budget increases total $443,000. The Contract Amendment No. 4 with Brown
and Caldwell is $378,000 ($38,000 for additional design work and $340,000 for construction
support services). The design costs are within industry standard for design of a project of this
magnitude (10%). Construction management costs, estimated at 10% and the cost of the
recommended office engineering services closer to 3%, are also well within expected standards.
The costs for environmental consultant services to oversee site dewatering during construction
are projected at $65,000 and are reasonable and necessitated given the unique contamination and
environmental circumstances presented by the Chevron tank farm property. The revised Tank
Farm Gravity Sewer and Lift Station project budget is $13,685,900.
Project Costs
Current Budget Proposed Change Revised Budget
Study 60,345 0 60,345
Environmental Review 42,000 0 42,000
Land Acquisition-99703 250,000 0 250,000
Land Acquisition-55300-7227 58,167 0 58,167
Design 895,216 38,000 933,216
Construction and Contingencies 10,942,400 65,000 11,007,400
Construction Management/Office Engineering 994,772 340,000 1,334,772
Total 13,242,900 443,000 13,685,900
The majority of funding for the Tank Farm Project will be debt financed from two sources; a
$10,000,000 loan from the California Infrastructure and Economic Development Bank (I-Bank)
and by the issuance of private placement bonds. I-Bank maximum loan amount is $10,000,000.
A combination of bond financing and pay-as-you-go funding from the Sewer Fund will fund the
estimated $3,685,800 balance. The bond issuance is currently estimated at $2,688,800 plus cost
of issuance, with the exact amount of the bond issuance to be determined following the opening
Contract Amendment No.4 for Tank Farm Project Page 4
of bids for the project. Currently, the City is contributing approximately $1,000,000 in pay-as-
you-go funding to the project, with a revised amount to be determined following the opening of
bids.
Proposed Project Funding Sources Amount
"Pay-As-You-Go"Financing 997,000
Debt Financing-I-Bank 10,000,000
Debt Financing-Bonds 2,688,900
Total 13,685,900
California Infrastructure Bank. The City has had its preliminary application for funding from
the I-Bank approved for $10,000,000; the maximum the I-Bank can loan per project. On
February 12, 2008, Council adopted a resolution authorizing the submission of the City's loan
application, which includes the City's commitment of at least $3,200,000 in project costs with
other funds (pay-as-you-go financing and Bond financing). I-Bank has an excellent interest rate
currently estimated at 3.25%. City staff submitted the final loan application to I-Bank in
February. Staff is currently working with I-Bank staff on a daily basis assisting in the preparation
of the loan package for presentation to the I-Bank Board,- in May, for final consideration and
funding approval. I-Bank representatives have expressed that this project should have no
problems qualifying for financing from their board.
Issuance of Bonds. On February 12, 2008, Council approved financing $2,245,900 for this
project through bonds to be issued through private placement. With the revised project budget,
staff is currently estimating financing $2,688,900 from private placement bond financing. The
final amount will be determined after construction bids are opened. City staff is working closely
with the City's financial advisor, Fieldman Rolapp and Jones Hall, preparing updated Sewer
Fund financials for private placement financing consideration. Staff will return to Council in
mid-April or early-May, after construction bids close on April 10, 2008, for formal Council
approval on the issuance of private placement funding.
Development Impact Fees. Based on the detailed analysis prepared as part of the Wastewater
Master Plan Update, 67.5% of the cost of this project is attributed to new development; the
remainder is attributed to existing customers. Staff is planning to bring revised wastewater
impact fees to Council in the near future that will reflect the increase to the project cost.
ATTACHMENTS
1. Amendment to Agreement
2. Proposal
G:\UTIL\CAR-CAO Reports\2008 Council Agenda Reports\B&CAmendNo4&Constructionservices.CAR.doc
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ATTACHMENT 1
AMENDMENT TO AGREEMENT NO.
THIS AMENDMENT TO AGREEMENT is made and entered in the City of San Luis Obispo on
1, by and between the CITY OF SAN LUIS OBISPO. a municipal corporation, herein after
referred to as City,and Brown and Caldwell Engineers, Inc.,hereinafter referred to as Contractor.
WITNESSETH:
WHEREAS, on September 11, 2003 the City entered into an Agreement with Contractor for Design
Services for Tank Farm Gravity Sewer,Lift Station and Force Main per Specification 99703;and
WHEREAS, the City desires to amend the scope of services to include additional design and construction
support services and Contractor has submitted a proposal for this purpose that is acceptable to the City.
NOW THEREFORE, in consideration of their mutual promises, obligations and covenants hereinafter
contained,the parties hereto agree as follows:
1. The scope of services and related compensation is hereby amended as set forth in Exhibit A
attached hereto.
2. All other terms and conditions of the Agreement remain in full force and effect.
IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day and year
first written above.
ATTEST: CITY OF SAN LUIS OBISPO
By:
City Clerk David F.Romero
r
APPROVED AS TO FORM: CONTRACTOR
By:
CC4ityAtey Azhar Malik,Vice President
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400 Exchangc,Sui•"
Irvine,Califomia S
Td:714-730-7600 ATTACHMENT 2
Fax:7147340734-0940
Aw .brownandcaldwdl.com
February 29,2008
B ' 1
1
Mr. David Hix
City of San Luis Obispo
955 Morro Street
San Luis Obispo,California 93401 1012/124881.130
Subject Addendum No. 4 for Tank Farm Gravity Sewer,
Force Main and Lift Station Project
Spec.No. 99703.90052
Dear Mr. Hix:
Brown and Caldwell has prepared this letter requesting additional funds to the project budget to
compensate for services that were not included in the original Scope of Services. These
additional services have been or will be executed at the request of the City staff to provide value
to the project. The additional services are listed below with supplemental budget requests
following its work task description. A man-hour breakdown schedule is attached.
ADDITIONAL DESIGN SERVICES:
1. UNOCAL Potholing: UNOCAL has existing water, sewer and oil pipelines along the
proposed gravity sewer alignment. UNOCAL has agreed to remove their pipelines that are
in conflict with the proposed sewer alignment. To facilitate the removal of UNOCAL's
utilities,the City requested for staking of the proposed sewer alignment within UNOCAL
property,as-built the horizontal and vertical locations of each utility, and inclusion of the
utilities to the drawing set. This scope of work included the following items:
• Staked the proposed sewer pipeline alignment on the UNOCAL property at 50-foot
intervals and all angle points.
• As-built existing utility locations after Padre&Associates exposed each utility.
• Added and labeled the potholed utility information to the Construction Drawings.
Supplemental Budget Request.- 8 8,300
2. Additional Legal Descriptions: Consultant provided the City a legal description for the
Tank Farm Lift Station site. After review of this document, the City requested (via Hamner
Jewell&Associates) the lift station site be divided into three distinct parcels. This division
required three new legal descriptions for each site. A fourth legal description was also
needed for a lot that was previously thought to be unaffected by the proposed pipeline
alignment. This scope of work included the following items:
• Researched alternative methods of dividing the proposed lift station site. Reviewed with
Hamner Jewell&Associates how the divisions will affect the City.
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David Hix
Fe MOMENT 2
February 29,2008
Page 2
• Prepared three legal descriptions for the proposed lift station site.
• Prepared a legal description for the lot previously thought unaffected.
Supplemental Budget Request.- $ 10,000
3. Hidden Hills Sewer Lateral:The proposed sewer pipeline crosses through Hidden Hills
Mobilodge lot. Currently,this facility uses a lift station to discharge sewer from their site.
For the 90%design, the lift station discharge pipe was rerouted to a proposed manhole on
Tank Farm Road. The addition of sewer generated from the Hidden Hills Mobilodge to the
Tank Farm sewer system was part of Contract Addendum No. 3. For the 100% design, the
City requested an investigation of the possibility of converting this facility to gravity flow
into the proposed sewer alignment. This will provide value to the project and the owner of
the mobile home as the existing lift station can be abandoned. The City requested that the
plans reflect the new gravity sewer lateral for the Hidden Hills Mobilodge facility which
requires construction within private property. Additional survey was needed to develop a
base map for preparing a plan and profile sheet. This scope of work included the following
items:
• Coordinated with the landowner of the Hidden Hills Mobilodge lot to obtain access to
the existing wetwell and surrounding areas.
• Surveyed the invert elevation of the wetwell inlet to determine if gravity flow to the
proposed sewer line on Tank Farm Road is possible..
• Surveyed the land between the wetwell and the proposed sewer fine for inclusion of
sewer lateral plan and profile into the contract documents.
• Created plan and profile construction drawing for the Hidden Hills gravity sewer lateral.
Supplemental Budget Request: $8,000
4. Traffic Control Plan Coordination:The County of San Luis Obispo requires Traffic
Control Plans prepared by a licensed civil engineer prior to issuance of an encroachment
pemiit. The City prepared the Traffic Control Plans using electronic base drawings prepared
by the Consultant. The finished product received from the City Traffic Engineer was not in
a completed format for final submittal. Consultant was requested to review the traffic
control plans for consistency with the intent of the pipeline design,modify the plans in
AutoCAD, as needed,and incorporate into the contract documents. This scope of work
included the following items:
• Prepared for and attended a meeting with the City to discuss options on preparation of
the Traffic Control Plans.
• Coordinated with the City Traffic Engineer.
• Compiled required drawings and transmitted to the City Traffic Engineer.
• Reviewed Traffic Control Plans and modified the AutoCAD drawings accordingly for
finalization. (Itis noted that Consultant reviewed and modified the Traffic Control Plans
but did not stamp or sign the resulting document. The Traffic Control Plan
modifications were to allow inclusion to the pipeline bid set. The ownership of,and
professional responsibility for the Traffic Control Plans remains with the City of San Luis
Obispo Traffic Engineer.)
• Plotted and printed for inclusion into Bid Set.
Supplemental Budget Request.- $4,000 /f
pA_pro;oct6124B81-tank.farm IM;fahomwplacdendum no.41i04279_adderdum 10 4b.doc e,,0-z-7
Mr. David Hix- '
February 29,2008 ATTACHMENT 2
Page 3
5. Modification of Generator Building Architectural Features:City requested to modify the
architectural features of the generator building at final submittal. The insulation covered
wall treatment,as shown on the architectural renderings prepared during preliminary design,
carried over up to the 100 percent submittal. Prior to submittal of final plans,City requested
to remove wall treatment and modify plans for bare split face block construction. This
scope of work included the following items:
• Reviewed design and modified for bare split face block construction.
• Reviewed and modified heat loss and sound absorption calculations to account for the
removal of insulation on the outside of the wall.
• Reviewed and modified the calculations for sizing of the air condition unit.
• Modified construction plans and specifications to reflect split face block construction
with noise absorption panels inside the generator building.
Supplemental Budget Request: $3,500
6. Coordination with Emerson Process Management: City requested for Consultant to
coordinate with Cathi Bradley of Emerson Process Management for inclusion of the City
preferred controller into the contract documents. Brown and Caldwell has been in contact
with Ms. Bradley since the 90%design submittal and has been sending information in pieces
as the information becomes available. Prior to the 100% submittal,Brown and Caldwell had
sent majority of the information to Ms. Bradley.The information on the controller was not
received until after submittal of the Final Set. Once received,Brown and Caldwell modified
12 drawings from the project plans and three sections of the specifications. This scope of
work included the following items:
• Participated in miscellaneous discussions and telephone conversations with City and
Cathi Bradley.
• Coordinated for transfer of final information including project pump station layout,
pump control scenario, electrical and instrumentation documents (plans and specs), and
miscellaneous equipment requirements.
• Modified final plans and specifications to include City preferred controller (Bristol
Control Wave Micro).
Supplemental Budget Request.- $4,500
CONSTRUCTION SUPPORT SERVICES (TASK 18):
1. Project Management: Provide overall project management during the project's 15-month
construction schedule,which includes supervision of BC's in-house staff, planning and
monitoring contract budget and schedule, reviewing and submitting invoices,and
coordinating with City Management Staff and sub consultants.
Supplemental Budget Request.- $16,520
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Mr. David Hix
Februa
Page 4 ry 29,2008 ARACHMENT 2
2. Attendance to Construction Meetings: Consultant shall attend a total of five meetings at
the construction trailers to discuss project progress. This includes the pre-construction
meeting. Each meeting will be eight hours for the Brown and Caldwell representative and
four hours for the Cannon representative and will include expenses for travel, meals,and
overnight lodging.
Supplemental Budget Request: 8 14,000
3. Review of Submittals: Consultant shall review Contractor submittals,as indicated on
Section 01300 of the project specifications. The Consultant shall review the submittals for
conformance with the requirements of the contract and project specifications. For the
purpose of providing estimated costs for this task,the budget has been established based on
100 submittals with 40 re-submittals.
Supplemental Budget Request: ,$ 151,120
4. Response to Contractor's Requests for Information: Consultant shall review and respond
to Contractor's Requests for Information. Responses to the Contractor shall include
drawings and/or modifications to the project plans as needed to clarify the intent of the
design. For the purpose of providing estimated costs for this task,the budget has been
established based on a total of 100 Requests for Information.
Supplemental Budget Request S 63,900
5. Review of Contractor's Request for Change Orders: Consultant shall review and assist the
City in processing the Contractor's request for Change Orders. For the purpose of
providing estimated costs for this task,we anticipate 5 field change orders each with redesign
of the project plans.
Supplemental Budget Request ,$3 1,000
6. Miscellaneous Coordination with City's Inspection Consultant: At the request of the City,
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Consultant shall participate in telephone conference calls and discussions with the City sta
and the City's inspection consultant to resolve miscellaneous construction issues. This task
does not include travel or site visits. For the purpose of providing estimated costs for this
task, the budget has been established based on a total of 80 hours.
Supplemental Budget Request.• ,$ 16,480
7. Prepare Record Drawings: At the end of construction, Consultant will collect construction
information and deviations from the project plans from the Contractor. Consultant will
prepare record drawings based on the information received. Consultant will submit to the
City full size Mylar sheets of the record drawings for the City's filing purposes. For the
purpose of providing estimated costs for this task,the budget has been established based on
72 record drawing sheets.
Supplemental Budget Request. $36,600
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Mr. David His
February 29,2008
Page 5 RnRCHMEW 2
Brown and Caldwell is requesting a budget increase of S 377,920 for the services listed above. If
you have any questions or may have concerns regarding the items contained in this letter, please
do not hesitate to call.
Very truly yours,
BROWN AND CALDWELL, CITY OF SAN LUIS OBISPO
a California Corporation
(M"'
Azee Malik Signature
Vice President David His,Wastewater Division Manager
JIG:rce Date
Attachments: Labor Manhour Matrix
Cannon Associates Proposal
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