CONSENT CALENDAR Agenda Item No. : 6a CC Mtg. : 7/12/2005

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1 CONSENT CALENDAR Agenda Item No. : 6a CC Mtg. : 7/12/2005 DATE : June 28, 2005 TO : FROM : SUBJECT : Mayor and City Council Members Utilities Department RESOLUTION NO A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AMENDMENT NO. 1 TO THE AGREEMENT WITH BCB CONSTRUCTION SERVICES FOR ADDITIONAL CONSTRUCTION MANAGEMENT/INSPECTION SERVICES AND APPROPRIATION OF FUNDS BACKGROUND / ISSUE RESOLUTION NO A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AMENDMENT NO. 2 WITH MALCOLM PIRNIE, INC. FOR ADDITIONAL CONSTRUCTION ADMINISTRATION SERVICES FOR THE FOLSOM WATER TREATMENT PLANT EXPANSION PHASE 4 PROJECT AND APPROPRIATION OF FUNDS The City is expanding the water Treatment Plant capacity to 50 million gallons per day (mgd) from its current capacity of 40 mgd as part of the City's overall Water Master Plan. In order to expedite construction of necessary chlorination facilities required to meet State Department of Health Services regulations, the project was divided into two phases. Phase 4a, which is currently at the closeout stage of construction, added a 1.2 million-gallon chlorine contact tank, miscellaneous piping and excavations to prepare for Phase 4b. Phase 4b construction, which is currently underway, includes the installation of expanded pre-treatment facilities (Actiflo), additional conventional filters and design modifications that provide for plant operations on a single hydraulic grade line. The complete project will provide for a total buildout treatment capacity of 50 mgd, by July Completion of Phase 4b is critical to ensure that the City can meet its water supply demands. The City Council awarded the Phase 4a construction contract on June 10, 2003, to Frontier Contracting, Inc. (Frontier), with a notice-to-proceed issued July 18, During the construction of Phase 4a, disputes arose with Frontier pertaining to performance and schedule. The original contract duration for Phase 4a was 397 days, and Frontier is currently at 732 days, which is 335 days over schedule. As a result of the disputes and potential schedule impacts to the Phase 4b project, a large portion of the remaining work was removed from the Phase 4a contract by deductive change orders and added to Phase 4b project during the bid phase. This process is common to utility contracting and was recommended by the City's outside counsel. To provide service during the additional construction days and to support the efforts to reduce the Phase 4a contract and include this work into the Phase 4b bidding documents, additional effort was required by both the design engineer/construction administrator (Malcolm Pimie) and the construction manager/inspector (BCB Construction Services). Additional services were required to update the construction drawings, project specifications and bid documents to include in the Phase 4b project and to provide services for the additional contract days. Additional effort was required for overseeing and monitoring the work performed by Frontier and is directly related to the fact that

2 Frontier's project is over schedule by more than 335 days. The City has taken beneficial use of Frontier's work and is currently in the process of closing out Frontier's contract. These resolutions seek to compensate the design engineers/construction administration and construction manager/inspector for the effort associated with scope and schedule changes during the past 335 days. POLICY / RULE In accordance with Chapter 2.36 of the Folsom Municipal Code, professional services costing $41,750 or greater shall be contracted for by the City Council. ANALYSIS To mitigate the negative impacts of Frontiers construction efforts on the overall project schedule, a significant amount of work was removed from Phase 4a and added to Phase 4b. Major items of work that were removed included installation of the 66" diameter pipeline and associated tie-ins, installation of all remaining yard piping, processing of soil stockpiles, backfilling around the chlorine contact tank, and finalization of electrical and instrumentation components. The contractor's schedule delays and the moving of various work items from Phase 4a to Phase 4b resulted in significant additional costs to the City for construction administration and construction management/inspection services, which the City will endeavor to recover. Construction administration services includes submittal review, response to construction questions, preparation of record drawings and other miscellaneous construction support related to the contract drawings. Due to the complexity of the project and the potential for adverse impacts to the operation of the water treatment plant as we bring new equipment on-line, the design engineer must provide administrative service to interpret the design intent when the contractor, requests clarifications to the design and to confirm that proposed materials meet the design specifications. Construction management services include full-time inspection, coordination with the ongoing expansion of the water treatment plant, and overall owner representation throughout project construction. Additional functions of construction management include monitoring of the project's overall schedule and coordinating inter-ties of the new facilities with the existing treatment plant to ensure that the City can meet its treated water demands. The additional scope of work items include the work described above for support in the following areas : 1. The major contributing factor to the increase cost is the work schedule. The contractor is currently over 10 months past the original completion date. The original contract duration for Phase 4a was 397 days, and Frontier is currently at 732 days, which is 335 days over schedule. This extension of time required the City to provide construction administration and construction management/inspection services for this additional period of time. Construction administration and management contracts are scoped and estimated by the City and its consultants based on construction contract days. Therefore this time extension of nearly twice the original duration has caused a significant increase in cost. Additional time is attributed to the legal process required to remove an unqualified, low-bidder contractor from a project. For the Phase 4b project, and for future projects, staff will continue to use the contractor pre-qualification process to bid major projects. And to minimize the potential for this type of event to occur

3 2. Disputes pertaining to contractor's compliance with the plans and specifications required additional documentation and inspection to ensure compliance with the overall contract documents. The additional effort included compliance documentation, re-engineering to minimized re-construction of facilities, resolution meetings, and re-inspection of previously constructed facilities. 3. Work was removed from Phase 4a during the bidding process through an addendum and during the construction of the Phase 4b contract as a result of coordination meeting with the construction manager and legal counsel. Each time work was removed ; additional effort was required to prepare separate plans, specifications, and construction documents to clarify the extra work being transferred to the Phase 4b contractor. The resolution pertaining to Amendment No. 1 with BCB Construction Services will increase the contract by $670,000 for a total contract amount of $2,870,000. The $670,000 increase was determined based on the additional construction management expenditures caused by the 335 additional construction days and the effort to transfer work from Phase 4a to Phase 4b. The original scope of work for BCB Construction Services included all work necessary to provide construction management/inspection services for Phase 4b only, not Frontier's Phase 4a additional days. The original construction management/inspection agreement for $2,200,000 was approved by the City Council on May 11, 2004, with Resolution Expanding the scope of the construction management firm to include the additional 335 contract days for Phase 4a and oversight of the transfer of Phase 4a work for completion of the overall project is more efficient and cost-effective because it provides a single point of contact and maintains consistency for the overall project. The resolution pertaining Amendment No. 2 with Malcolm Pirnie will increase the contract by $315,000 for a total contract amount of $3,659,896. The $315,000 increase was determined based on the additional construction administration expenditures caused by the 335 additional construction days and the effort to transfer work from Phase 4a to Phase 4b. The original scope of work for Malcolm Pirnie, Inc. included all work necessary to provide a complete design for both phases of the project. The original design agreement for $1,543,000 was approved by the City Council on September 24, 2002, with Resolution On July 22, 2003, the City Council approved Resolution 7126 which authorized the City Manager to execute Amendment No. 1 to the contract with Malcolm Pirnie. Amendment No. 1 was for additional scope increases as a result of splitting the project into the two phases, additional project management, preliminary design, final design, and agency interaction, and to provide complete construction administration services for both phases. The total cost of Amendment No. 1 was $1,801,896 ; which brought the total contract total to $3,344,896. In order to maintain continuity between the design team and the construction administration team, it is standard practice to utilize the design team to perform construction administration. This approach is more efficient to provide immediate design interpretations during construction and is more cost-effective since the design engineer is already familiar with the engineering design and specifications. FINANCIAL IMPACT Staff requests that the funds be appropriated for these services from the Water Capital Fund (Fund 521) and the Water Operating Fund (520) to the Water Treatment Plant Expansion Phase 4 Project PN The original project was funded from Funds 520 and 521 and staff recommends that these resolutions remain consistent with the original funding as this additional work is an expansion of the original scope. Sufficient funds are available in the Water Capital Fund (Fund 521) and the Water Operating Fund (520)

4 ENVIRONMENTAL REVIEW An Initial Study and Mitigated Negative Declaration (IS/MND) has been completed in compliance with CEQA and adopted by the City Council on September 9, 2003, for the construction project. ATTACHMENT 1. Resolution No A Resolution Authorizing the City Manager to Execute Amendment No. 1 to the Agreement with BCB Construction Services for Additional Construction Management/Inspection Services for the Folsom Water Treatment Plant Expansion Phase 4 Project and Appropriation of Funds. 2. Resolution No A Resolution Authorizing the City Manager to Execute Amendment No. 2 to the Agreement with Malcolm Pirnie Inc. for Additional Construction Administration Services for the Folsom Water Treatment Plant Expansion Phase 4 Project and Appropriation of Funds. CITY COUNCIL ACTION / RECOMMENDATION The Utilities Department recommends that the City Council pass and adopt Resolution No A Resolution Authorizing the City Manager to Execute Amendment No. 1 to the Agreement with BCB Construction Services for Additional Construction Management/Inspection Services for the Folsom Water Treatment Plant Expansion Phase 4 Project and Appropriation of Funds. The Utilities Department recommends that the City Council pass and adopt Resolution No A Resolution Authorizing the City Manager to Execute Amendment No. 2 to the Agreement with Malcolm Pirnie Inc. for Additional Construction Administration Services for the Folsom Water Treatment Plant Expansion Phase 4 Project and Appropriation of Funds. Submitted, lafa41111 Walter E. Sadler, ASSISTANT UTILITIES DIRECTOR

5 RESOLUTION NO A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AMENDMENT NO. 1 TO THE AGREEMENT WITH BCB CONSTRUCTION SERVICES FOR ADDITIONAL CONSTRUCTION MANAGEMENTANSPECTION SERVICES FOR THE FOLSOM WATER TREATMENT PLANT EXPANSION PHASE 4 PROJECT AND APPROPRIATION OF FUNDS WHEREAS, the City of Folsom is expanding the Water Treatment Plant capacity to 50 million gallons per day (mgd) from its current capacity of 40 mgd as part of the City's overall Water Master Plan; and, WHEREAS, the City of Folsom has an agreement with BCB Construction Services for construction management/inspection services for the Water Treatment Plant Drinking Water Improvement Project ; and, WHEREAS, the City of Folsom needed additional construction management/inspection services due to disputes arising from performance and schedule with the Phase 4a contractor which resulted in 335 additional contract days and the transferring of work from the Phase 4a construction contract to the Phase 4b construction contract ; and, WHEREAS, BCB Construction Services, by reason of their current agreement and expertise for performing the type of services requested, is qualified to perform the additional required consulting services ; and, WHEREAS, funds need to be appropriated from the Water Operating Fund (Fund 520) and Water Capital Fund (Fund 521) ; and, WHEREAS, the agreement will be in a form acceptable to the City Attorney : NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Folsom authorizes the City Manager to execute amendment No. 1 to the agreement with BCB Construction Services for additional construction management/inspection services for the Folsom Water Treatment Plant Expansion Phase 4 Project in the amount of $670,000. BE IT FURTHER RESOLVED that the Finance Department is authorized to appropriate $670,000 from Funds 520 and 521. PASSED AND ADOPTED on this 12th day of July 2005, by the following roll call vote : AYES : NOES : ABSENT : ABSTAIN : ATTEST : Stephen E. Miklos, MAYOR Christa Schmidt, CITY CLERK

6 RESOLUTION NO A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AMENDMENT NO. 2 TO THE AGREEMENT WITH MALCOLM PIRNIE, INC. FOR ADDITIONAL CONSTRUCTION ADMINISTRATION SERVICES FOR THE FOLSOM WATER TREATMENT PLANT EXPANSION PHASE 4 PROJECT AND APPROPRIATION OF FUNDS WHEREAS, the City of Folsom is expanding the Water Treatment Plant capacity to 50 million gallons per day (mgd) from its current capacity of 40 mgd as part of the City's overall Water Master Plan; and, WHEREAS, the City of Folsom has an agreement with Malcolm Pirnie, Inc. for construction administration services for the Water Treatment Plant Drinking Water Improvement Project ; and, WHEREAS, the City of Folsom needs additional construction administration services due to disputes arising from performance and schedule with the Phase 4a contractor which resulted in 335 additional contract days and the transferring of work from the Phase 4a construction contract to the Phase 4b construction contract; and, WHEREAS, Malcolm Pirnie, Inc., by reason of their current agreement and expertise for performing the type of services requested, is qualified to perform the additional required consulting services ; and, WHEREAS, funds need to be appropriated from the Water Operating Fund (Fund 520) and Water Capital Fund (Fund 521) ; and, WHEREAS, the agreement will be in a form acceptable to the City Attorney : NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Folsom authorizes the City Manager to execute amendment No. 2 to the agreement with Malcolm Pirnie Inc. for additional construction administration services for the Folsom Water Treatment Plant Expansion Phase 4 Project in the amount of $315,000 ; and, BE IT FURTHER RESOLVED that the Finance Department is authorized to appropriate $315,000 from Funds 520 and 521. AYES : NOES : ABSENT : ABSTAIN : PASSED AND ADOPTED on this 12th day of July 2005, by the following roll call vote : ATTEST : Stephen E. Miklos, MAYOR Christa Schmidt, CITY CLERK