City of Palo Alto (ID # 4369) City Council Staff Report

Transcription

1 City of Palo Alto (ID # 4369) City Council Staff Report Report Type: Consent Calendar Meeting Date: 1/13/2014 Summary Title: Seismic Upgrade Project Amendment #1 w/ URS Title: Approval of Amendment Number 1 to Contract #C in the Amount of $84,660 with URS Corporation to Provide Additional Services Associated With the Assessment, Design and Construction Management Services for Coating and Seismic Upgrades of Six Existing Reservoirs and Rehabilitation of Three Receiving Stations Project WS-07000, WS and WS-09000, for a Total Not to Exceed Amount of $567,052 From: City Manager Lead Department: Utilities Recommendation Staff recommends that Council approve Amendment Number 1 to Contract #C in the amount of $84,660 with URS Corporation to provide additional services associated with the Assessment, Design and Construction Management Services for Coating and Seismic Upgrades of Six Existing City Reservoirs and Rehabilitation of Three Receiving Stations Project WS-07000, WS and WS (CMR 139:10) for a total revised contract not to exceed amount of $567,052. Background On March 8, 2010, Council awarded a contract to URS Corporation for the Assessment, Design and Construction Management Services for Coating and Seismic Upgrades of Six Existing City Reservoirs and Rehabilitation of Three Receiving Stations Project (CMR 139:10). Council approved a total budget of $401,993 and a contingency amount of $80,399 for this project. To date, the entire contingency amount has been used for additional services. The request for proposals for this project was sent to twenty nine engineering consulting firms on November 2, URS Corporation was selected because of its professional qualifications, strength of the proposed project team, past successful experience designing similar complex projects, familiarity with the project design and construction issues and City procedures. The City of Palo Alto maintains a water system consisting of five receiving stations from the City of Palo Alto Page 1

2 SFPUC s Hetch Hetchy aqueduct system and seven reservoirs. Of the seven existing reservoirs, five of those were constructed in the 1960 s. Mayfield Reservoir, the City s oldest reservoir, was constructed in the late 1920 s and was retrofitted this past year for seismic upgrades. Four of the City s reservoirs are above ground circular steel tanks, two are above ground concrete tanks (Mayfield and Boronda Reservoirs) and one is a below grade concrete tank (El Camino Park Reservoir, completed in 2013). The City s existing receiving stations were constructed in the late 1950 s when the City connected to the Hetch Hetchy system. Each station is contained in an underground vault. Although the City s water system has been properly maintained over the years, the system is aging and needs extensive rehabilitation work in order to ensure that these critical components are functioning during a major seismic event. This project enhances the performance reliability of these existing facilities. Discussion After the original contract with URS Corporation was signed and accepted by the City (CMR 139:10), Engineering staff requested additional design and construction management services be provided to accommodate recently discovered operational requirements of the City s water system and ensure proper inspections and construction oversight during the construction period. Operational constraints of the City s water system prohibit taking all of the existing reservoirs and receiving stations out of service simultaneously for rehabilitation. In addition to this, Operations staff has been monitoring water use over the past year and have determined that the Boronda Reservoir cannot be taken out of service between the months of May and September. This reservoir is extremely critical during the summer months when demand is high. Therefore, in order to minimize operational exposure of low water supply, the rehabilitation of the reservoirs and receiving stations had to be staggered such that no two reservoirs and no two receiving stations are offline at the same time. As a result, the larger project, which is currently out to bid as a Request for Proposal (RFP) for design and construction management services, will need to be extended by approximately three years. This RFP requests design and construction management services for the remaining four steel reservoirs (Corte Madera, Park, Dahl and Montebello Reservoirs) and three receiving stations (Page Mill, Arastradero and California Receiving Stations). The RFP was issued on December 16, 2013 and will be awarded to the most qualified consultant in early Total completion of the Boronda Reservoir project is now anticipated to be December This, along with required design modifications that are needed to resolve pre-existing conditions that were not anticipated at the start of the project, have doubled the design and construction management efforts associated with this project. The Boronda Reservoir was originally bid for seismic retrofit work along with the Mayfield Reservoir back in Retrofit work at the Mayfield Reservoir was completed in October Once construction was completed and the reservoir filled, it was found that the reservoir was leaking at a rate higher than what is allowed by current standards, as referenced in the September 16, 2013 Council-approved staff report (ID# 4057). As a result, City staff determined City of Palo Alto Page 2

3 that the reservoir needed to be taken offline and repaired immediately. Because the Mayfield and Boronda Reservoirs cannot be taken out of service at the same time due to emergency fire protection storage requirements, the Boronda portion of the work was terminated from the construction contract in order to avoid any delay claims by the contractor. At this time, Mayfield leak repairs have been completed and work can now proceed on Boronda. Retrofit work on a reinforced concrete tank is highly specialized and requires construction inspection by a qualified contractor. Due to the specialized requirements for inspection and the timing of getting the work completed at Boronda before the high water demand summer months, it is recommended that URS Corporation remain as the engineer of record for this portion of the project. In order to ensure cost-effectiveness, the design will need to be repackaged through this amendment (Amendment #1) in order to allow for a separate construction contract for the Boronda Reservoir work. Amendment #1 covers the City s consultant efforts to repackage and rebid the design for Boronda, a change in timing scope for construction sequencing purposes, additional services that were needed to perform a thorough leak investigation and assessment at the newly rehabilitated Mayfield Reservoir (which has already been completed), and dispute resolution with the contractor (which has already been completed as well). The following describes the additional work for the expanded scope in the proposed contract amendment: Exhibit A Scope of Services for Additional Professional Services Exhibit A includes additional scope that will be needed to see the Boronda Reservoir construction through to completion. The work in Exhibit A increases the budget for these services by $84,600 and incorporates additional design items as requested by City staff, preparation of a separate bid package for the Boronda Reservoir work, consultations with the City regarding current contractor disputes on the Mayfield Reservoir portion of the project, assessment, design and construction management efforts associated with the Mayfield Reservoir emergency leak repair, bid and construction management assistance associated with the project time extension and project management associated with the project time extension. The items list in Exhibit A will be paid through Amendment Number 1 and increases the budget for these services by $84,660. Resource Impact The attached Amendment Number 1, Exhibit A, requests an additional appropriation of $84,660 City of Palo Alto Page 3

4 for the contract titled Assessment, Design and Construction Management Services for Coating and Seismic Upgrades of Six Existing City Reservoirs and Rehabilitation of Three Receiving Stations Project. There is sufficient budget in WS-07000, WS and WS (CMR 139:10) to fund the additional work under this contract. Current staffing levels and the level of expertise needed to see the Boronda Reservoir work through to completion prevent City staff from being able to perform this additional work. Amendment Number 1 will allow for additional design, inspection and construction management work needed to finish the project. The incremental cost increase by project task is summarized in the following table: Task Description Budget 5 Changes to Task 2 Design Scope $15,188 6 Consulting Regarding Contractor Dispute $8,664 7 Mayfield Reservoir Emergency Leak Repair $9,924 8 Bid and Construction Management $32,548 9 Project Management $18,336 Amendment 1: $84,660 Original Contract Amount: $482,392 New Project Total $567,052 Policy Implications Amendment Number 1 does not represent a change to existing policy. This recommendation is consistent with the Council-approved Utilities Strategic Plan (Staff Report 1880), especially Key Strategy No. 1, Ensure a high level of system reliability in a cost effective and timely manner. Environmental Review This project has a categorical exemption from CEQA per Section (Existing Structures) of the CEQA Guidelines. Attachments: Attachment 1: URS Contract (PDF) Attachment 2: Summary Justification of Consultant Agreement (PDF) City of Palo Alto Page 4

5 AMENDMENT NO. 1 TO CONTRACT NO. C BETWEEN URS CORPORATION AND THE CITY OF PALO ALTO This agreement ( Amendment No: 1 ) is made and entered into on this day of, ( Effective Date ) by and between URS Corporation, dba URS Corporation Americas, a Nevada Corporation, with its principal place of business located at 1333 Broadway, Suite 800, Oakland CA ("CONSULTANT"), and City of Palo Alto, a chartered California municipal corporation, with its principal place of business located at 250 Hamilton Avenue, Palo Alto, California ("CITY"). CONSULTANT and CITY may be referred to herein individually as a Party or collectively as the Parties or the Parties to this Amendment No. 1. RECITALS WHEREAS, on or about March 8, 2010, CONSULTANT and CITY entered into an Agreement (Contract No. C ) for Professional Consulting Services for Assessment, Design and Construction Management Services for Coating and Seismic Upgrades of Six Existing City Reservoirs and Rehabilitation of Three Receiving Stations Project (the Agreement"): WHEREAS, the Parties desire to amend the scope of services of the Agreement to increase the CONSULTANT s, time periods of performance and payment, services and/or responsibilities to be provided to the CITY; and WHEREAS, the Agreement provides that any amendments shall be valid only when expressed in writing and signed by the Parties. NOW THEREFORE, in consideration of the mutual understandings and agreements contained herein, the Parties agree to amend the Agreement as follows: AMENDMENT NO. 1 PROVISIONS 1. The Basic Services of CONSULTANT as described in the Agreement are amended and supplemented as follows: Additional services to be performed by CONSULTANT and its representatives as described in Exhibit A, attached and incorporated by this reference, related to rehabilitation of existing water storage facilities. 2. The responsibilities of CITY as described in the Agreement are amended and supplemented as follows: This Amendment does not change the responsibilities of CITY as described in the Agreement, other than the obligation to pay for the CONSULTANT s additional services as set forth herein and in Exhibit A attached hereto. 3. The time periods for the performance of CONSULTANT's services as set forth in the Agreement are amended and supplemented as follows: The time periods for the performance as described in Section 2 of the Agreement are changed as described in Exhibit A. The time period in the Agreement was set to end on 2/27/12 and is herein changed to end on 12/31/14. 1

6 4. The payment for services rendered by CONSULTANT shall be as set forth below: This Amendment No. 1 increases the Not-to-Exceed amount of the Agreement by $84,660 from $482,392 to $567,052. CITY and CONSULTANT expressly acknowledge the Not-to- Exceed nature of this Agreement: The CONSULTANT will be paid for progress on the Tasks on a time and materials basis, but if the total amount for payment of a task is exhausted and work remains to be completed within the scope of the task, and within the assumptions noted, then the CONSULTANT will continue to perform the task until completed without any additional compensation. 5. Except as herein modified, all terms and conditions of the Agreement shall remain in full force and effect. In the event of a conflict in the terms of the Agreement and this Amendment No. 1, the provisions of this Amendment No. 1 shall control. The Parties acknowledge and accept the terms and conditions of this Amendment No. 1 as evidenced by the following signatures of their duly authorized representatives. It is the intent of the Parties that this Amendment No. 1 shall become operative on the Effective Date first set forth above. APPROVED AS TO FORM: CITY OF PALO ALTO, CALIFORNIA, City Attorney City Manager ATTEST: City Clerk CITY URS CORPORATION dba URS CORPORATION AMERICAS By: Name: Title: CONSULATANT 2

7 EXHIBIT A TO AMENDMENT NO. 1 TO CONTRACT NO. C BETWEEN URS CORPORATION AND THE CITY OF PALO ALTO Scope of Services for Additional Professional Services Assessment, Design and Construction Management Services for Coating and Seismic Upgrades of Six Existing City Reservoirs and Rehabilitation of Three Receiving Stations This Amendment No. 1 amends the scope of professional services initiated in the Agreement between the City of Palo Alto (CITY) and URS Corp. (CONSULTANT or URS) dated March 8, This amendment was prepared at the request of the City to provide additional engineering professional services, the extent of which could not be fully anticipated in the generation of previous agreements. BACKGROUND Original Scope of Services and Budget The original scope of services and authorized budgets included in the Agreement are listed below. The full description of services is found in Exhibit A of the Agreement. The scope covers seismic upgrades at six reservoirs (Mayfield, Boronda, Monte Bello, Dahl, Park, and Corte Madera) and three SFPUC turnouts (Page Mill, California and Arastradero). Description of Service Authorized Budget Task 1 Assessment $88,972 Task 2 Design $152,909 Task 3 Construction Management and Support $128,153 Task 4 Additional Services $31,959 Contingency Release $80,399 Total $482,392 The contingency was previously released to cover the following out of scope tasks: Emergency leak repairs at Mayfield Reservoir, Consulting regarding contractor disputes, Preparing a Design Memorandum Update to the existing design for the seismic upgrade to the Boronda Reservoir to reflect changes to the 30% design documents created approximately three years ago, and Preparation of a new separate bid package for the four steel tanks and three turnouts. Need for this Contract Amendment In 2013, the project scope has changed so that the City would like to rebid construction of the Boronda Reservoir Upgrades. In addition, construction of the upgrades of the steel tanks and turnouts has been stretched out over 3 years, causing a projected dramatic increase in construction management costs, which they would like to rebid. Therefore this contract amendment includes revisions to the original scope plus some new tasks, such as some minor design changes, repackaging the Boronda Reservoir plans and specifications into its own construction bid package, work to close out the Emergency Leak Repair at Mayfield Reservoir project, additional consulting regarding contractor disputes, and additional Project Management services related to the project time extension. 3

8 WORK SCOPE Description of Changes to Original Work Scope Task 2: Design URS has prepared 70% drawings and specifications for the four steel tanks and three turnouts project. Finalizing the design and specifications for this project is deleted from URS work scope. Task 3: Construction Management and Support The original construction management budget assumed one bid, one contractor, and upgrade work on the six reservoirs and three turnouts. Construction work on the Mayfield Reservoir upgrades only has been completed. The upgrades at Boronda were deleted from the contractor s scope of work and will be rebid. Construction management and support for five reservoirs (the 4 steel tanks and Boronda) and three turnouts are deleted from URS work scope. Description of Additional Services to be added to the Agreement The City has requested that URS perform the following additional work: Task 5: Changes to the Scope for Task 2, Design of the Tank Upgrade Project. URS will prepare a separate bid package (design plans and specifications) for the Boronda Reservoir Upgrades and update the design. Deliverables: Bid-ready plans and specifications for upgrades at Boronda Reservoir. Assumptions: Deliverables shall be in electronic format. Task 6: Consulting Regarding Contractor Disputes. URS will provide consultation and services as requested regarding disputes with and termination of the portion of the Mayfield and Boronda Reservoirs Seismic Upgrade contract with Anderson Pacific Engineering Company, including conference calls, attending meetings, reviewing schedules and other project documents, and assisting with letting of a contract for performance of the upgrades to the Boronda Reservoir. Deliverables: Preparation of a draft and final memorandum relating to Anderson Pacific s deficient work at the Mayfield Reservoir. Preparation of a plan and associated specifications to repair the landscaping and repaving at Mayfield Reservoir. Other deliverables as requested by the City. Assumptions: A total of 3 site visits of 1 URS staff are assumed. Task 7: Mayfield Reservoir Emergency Leak Repair. At the request of the City, URS has assisted in investigation, evaluation, planning and leak repair execution to address water leaking from Mayfield Reservoir. Most of URS s effort has been covered by the original project contingency but some minor additional tasks are required. URS will continue to provide engineering services relating to the project, including but not limited to the following: Review of contractors billing statements. Project closeout. 4

9 Consultation regarding the safe operation of Mayfield Reservoir Deliverables: Contractor billing statement with URS review comments Disk with URS leak repair photos and inspection reports with recommendations on the safe operation of Mayfield Reservoir to avoid overfilling Assumptions: The project is nearly complete with only the listed minor tasks to perform. See level of effort assumptions in cost table. This task includes one field visit by the design team of 3 of URS technical staff. Task 8: Bid-and Construction-Phase Services for Boronda Reservoir Upgrades Project URS will provide bid and award assistance on the Boronda Reservoir Upgrade project. Deliverables: Respond to questions from bidders Addenda (if required) Bid review and recommendations. Assumptions: The project will be competitively bid. One addenda cycle (if required). Attendance at 1 (prebid) meeting in Palo Alto. URS will provide submittal reviews and special inspections during construction for the Boronda Reservoir Upgrade project. URS will prepare a change order with 2 items requested by the City that were not able to get in the bid package: a new aluminum vault cover and a tank isolation valve. Deliverables: Review comments on 10 submittals and 6 resubmittals. Daily Inspection Reports 2 Change order drawings and 2 specs to add aluminum vault cover and isolation valve Assumptions: City staff will be responsible for construction management and daily inspections. City staff will track submittals and RFIs. City will review most of the submittals including nontechnical submittals. URS will review 10 primarily structural submittals. Attendance at 1 (kickoff) meeting. A URS structural engineer will provide inspections on 10 6-hour days, plus 2 hours of travel each day and 1 hour of preparation. Task 9: Project Management associated with the Project Time Extension. The original construction management budget assumed the project originally described in the Agreement would be complete by February 27, URS will provide project management for the additional work described in this Amendment, through December 2014, or for an additional 12 months. URS will review, evaluate, and report to the City monthly on project progress, anticipated project duration, cost and duration trends, provide monthly invoices with a progress report, maintain project correspondence, information, QAQC, and all other project-related documentation, and maintain continuous and ongoing communications with the City. Deliverables: 5

10 Monthly progress reports and invoices Phone conferences as needed to communicate project progress, schedule and budget. Meeting agendas and minutes. Assumptions: There will be bi-monthly meetings with the City for a total of 6. 6

11 Amendment 1 Budget The amounts to be paid for each of the tasks described above, is as follows. In the event that work to complete the tasks described above, within the assumptions identified above, exceed the following amounts, URS will continue to provide the services provided within each task without any further compensation: Task Description Budget 5 Changes to Task 2 Design Scope $15,188 6 Consulting Regarding Contractor Dispute $8,664 7 Mayfield Reservoir Emergency Leak Repair $9,924 8 Boronda Bid and Construction-Phase Services $32,548 9 Project Management $18,336 Amendment 1: $84,660 Original Contract Amount: $482,392 New Project Total : $567,052 Note: See budget spreadsheet for detailed hourly breakdown. The anticipated project milestones are: Amendment 1 Project Schedule January 2014 Submit Revised Final Design of Boronda Upgrades February 2014 Bid and Award Project March May 2014 Construction Period June July 2014 Project Closeout 7

12 The original contract included assessment, design and construction management services for seismic upgrades of six existing reservoirs (Mayfield, Corte Madera, Boronda, Park, Dahl and Montebello Reservoirs), recoating of four steel tank reservoirs (Corte Madera, Park, Dahl and Montebello Reservoirs) and rehabilitation of three receiving stations (Page Mill, Arastradero and California Receiving Stations). All assessment activities have been completed by the consultant (URS Corporation). In addition, the consultant has provided design and construction management services for the Mayfield Reservoir work. Due to recently identified operation constraints, City staff has requested that URS finish their design and construction management services for the Boronda Reservoir only. All design and construction management services for the remaining four steel tanks and three receiving stations are currently being solicited to other consultants through the Request for Proposal (RFP) process. City staff anticipates a new contract for this remaining work to be signed in early 2014, with construction starting in late The consultant has provided assessment services for six existing reservoirs and three existing receiving stations and design services for seismic upgrades of two existing reservoirs and construction management services for one existing reservoir. As part of this Amendment, URS Corporation will: 1) prepare a bid package for the Boronda Reservoir work, 2) consult with City staff regarding contractor disputes, 3) assess, design and manage work associated with the Mayfield Reservoir emergency leak repair (Staff Report ID# 4057) and 4) provide project management, bid and construction management assistance for the Boronda Reservoir work. Consultant services were planned, and funds for this work were approved by Council in March Current staffing levels and the level of expertise needed for the assessment, design and construction management prevented City staff from being able to perform this work themselves. The work associated with this staff report is not part of a new project, but part of an existing contract that was approved by Council in March In 2009, a Request for Proposal (RFP) was issued by the Purchasing Department for this work. Out of the seven companies that provided a proposal, URS Corporation was selected because of their professional qualifications, strength of the proposed project team, past successful experiences with similar projects and familiarity with the project design, construction issues and City procedures. URS Corporation is not a small or local business. They have offices located all over the world. However, the engineers working on this project are located in their Oakland and San Francisco offices. In addition, all subcontractors to URS are located in the San Francisco Bay Area.

13 URS Corporation is currently working on two projects (Well Rehabilitation Project & Seismic Upgrade Project) with the City of Palo Alto Utilities Department. The work associated with this staff report is not part of a new project, but part of an existing contract that was approved by Council in March The City of Palo Alto s Utility Department has been pleased with the performance of URS Corporation on the two current projects (Well Rehabilitation Project & Seismic Upgrade Project). The term of the original agreement was approximately two years. Amendment #1 extends the term of the agreement to December 31, Costs were determined based on assessment hours, design hours, project management and construction management efforts needed to see the project through to completion. The current Amendment (Amendment #1) is the only amendment that will be needed for this project. None.