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.
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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.
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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
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