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HomeMy WebLinkAbout07-02-2019 Item 05 - Legal Services for Water Resource Recovery Facility Project Department Name: Utilities Cost Center: 6101 For Agenda of: July 2, 2019 Placement: Consent Estimated Time: N/A FROM: Aaron Floyd, Utilities Director Prepared By: David Hix, Deputy Director – Wastewater SUBJECT: LEGAL SERVICES FOR WATER RESOURCE RECOVERY FACILITY PROJECT RECOMMENDATION 1. Authorize the Mayor to execute amendment No. 2 (Attachment A) to an agreement for legal services for the Water Resource Recovery Facility (WRRF) project with Best, Best and Krieger LLP (BBK) in an amount not to exceed $110,000.00; and 2. Authorize the transfer of $110,000.00 of unreserved working capital from the sewer fund to the WRRF project budget. DISCUSSION On May 23, 2019, the City received construction bids for the WRRF project. This project is the largest project undertaken by the City to date in terms of overall budget and will provide the required treatment to meet the State’s stringent discharge mandate, provide additional capacity to meet the City’s General Plan, replace aging infrastructure, and maximize recycled water production. The schedule for completion of this project is critical to meeting regulatory requirements set by the State of California. Staff will be requesting award of the construction contract at the July 16, 2019, City Council meeting. The WRRF project team is completing the analysis of the documents to ensure they are responsive and conform with the requirements of the project’s bidding documents. The agreements, certificates, and documents for a project of this size are very complicated and require specialized legal counsel to provide critical review prior to award of the bid. Additionally, during the construction phase of this project, it is anticipated that specialized legal counsel will also be periodically required when working with the contractor to resolve contractual issues, disputes, or address other construction related matters. Legal counsel that is experienced in municipal construction and keenly familiar with this project, its schedule and scope are key to delivering a successful WRRF project. BBK has provided legal services for the WRRF project since 2016, has extensive expertise in this area and with this project, and possesses nationally recognized experts in the development and analysis of construction documents, bidding, agreements, and resolving construction disputes. The City has successfully utilized BBK in a variety of construction-related matters. Packet Pg. 69 Item 5 CONCURRENCE The Utilities Department collaborated with the City’s Attorney’s Office on the nature and extent of this contract amendment for continued specialized legal services and the Office concurs with the recommended extension. ENVIRONMENTAL REVIEW The Environmental Impact Report (EIR) for the WRRF Project was certified by Council on August 16, 2016. FISCAL IMPACT Budgeted: No Budget Year: 2019 Funding Identified: Yes This amendment is the second for BBK’s services (Attachment A) for the WRRF project. The table below shows the complete list of agreements, dates, and costs between BBK and the City for the WRRF. BBK Agreements Cost Original Agreement - November 2016 $50,000 First Amendment - July 2017 $100,000 Second Amendment - July 2019 $110,000 Total Anticipated Legal Services for the WRRF Project: $260,000 Fiscal Analysis: Funding Sources Total Budget Available Current Funding Request Remaining Balance General Fund State Federal Fees Sewer Fund $28,226,914 $110,000 $28,116,914 Total $28,226,914 $110,000 $28,116,914 Adequate funding is available in unreserved working capital from the sewer fund to support this request. This is the second amendment for the legal services to support the WRRF project and is anticipated to cover the remainder of the project. Legal services to support the WRRF project are eligible for reimbursement from the State Revolving Fund Loan that is financing this project. Packet Pg. 70 Item 5 ALTERNATIVES Deny the request and direct the Utilities Department staff to prepare and issue an RFP for legal services for consultant selection. This is not recommended because BBK possesses the expertise and knowledge of public construction projects, including bidding documents, contractor procurement and construction related issues. BBK has in-depth knowledge of the WRRF project and has been a valued team member. Attachments: a - Best Best & Krieger Contract Amendment No. 2-c1 Packet Pg. 71 Item 5 Packet Pg. 72 Item 5