REPORT TO COUNCIL
SUBJECT
Title
Amend an Existing Agreement for Design and Construction Support Services (F16-140) and Approve an Increase to Construction Contract Contingency (UW-16-01) and Finding of California Environmental Quality Act (CEQA) Categorical Exemption for Citywide Waterline Replacement 2017 (PW18-01)
Report
REPORT IN BRIEF
Approval is requested to amend an existing agreement with Bellecci & Associates, Inc. (Bellecci) to provide additional design services in the amount of $21,990, increasing the not to exceed amount from $222,415 to $244,405. Approval is also requested for a 10% contingency in the amount of $2,199 which will increase the current contingency amount from $22,242 to $24,441. Total expenses for the contract term, including contingencies, will not exceed $268,846.
Approval is also requested to increase the construction contract contingency an additional 9.9% with Northern Underground Construction, Inc. in an amount of $363,000 to provide additional scope of work. This will increase the current contingency amount from $366,061 to $729,061.
EXISTING POLICY
Pursuant to Section 2.09.040 of the Sunnyvale Municipal Code, City Council approval is required for public works contracts exceeding $100,000 in any one transaction.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) determination for the project is a categorical exemption pursuant to CEQA Guidelines Section 15302 (c) for replacement or reconstruction of an existing utility system and/or facility involving negligible or no expansion of capacity.
BACKGROUND AND DISCUSSION
The Environmental Service Department (ESD) has become aware of water quality and water supply issues on Lincoln Ave between S. Bayview Ave and Central Ave. The 800 feet long, 4-inch diameter cast iron water main at Lincoln Avenue was built in the 1950s and serves 30 homes. Recently, ESD received water quality complaints from residents in this area, after which it launched an investigation into the source of the water quality problems. During the investigation, the 4-inch main was discovered to have severe sediment formation and encrustation known as tuberculation. This tuberculation is discoloring residents’ drinking water and reducing available flow to the adjacent fire hydrants.
Due to the water quality and fire flow concerns, it is critical that this main line is replaced as soon as possible, rather than waiting until the next construction contract for these services scheduled in FY 2019/20. Currently, Northern Underground Construction, Inc. is the contractor for the Waterline Replacement 2017 Project (RTC No.18-0282) that is performing similar scope of services on adjacent streets. Bellecci is the design consultant for this project (RTC No. 16-0981). Both the consultant and the contractor are familiar with the necessary scope of work, are well positioned to quickly perform the work because they are actively performing similar services for the City, and are available to assist in plan and specification development and construction for the urgent work.
Based on an initial scope of work and in alignment with the current bid prices for the Citywide Waterline Replacement Project, Northern Underground Inc. has proposed a construction cost of $330,000. The Department of Public Works is requesting $363,000 which includes additional funds for street surface restoration and to cover unforeseen events or circumstances. This additional construction scope of work can be addressed as a change order to the current construction contract and performed within the increased contract contingency for the Citywide Waterline Replacement 2017 project.
After negotiating the scope of work with Bellecci, a design proposal was provided in the amount not to exceed $21,990. To account for any potential changes to this design, the City is requesting an additional contingency as is typical. The design by Bellecci will take 6 to 8 weeks, and it will be completed prior to the contractor’s overall completion date for the Citywide Waterline Replacement 2017 project. Northern Underground Construction will be able to accommodate this extra work on Lincoln Avenue without having to remobilize.
FISCAL IMPACT
Funding for both the design and construction work is available in Project 825451 - Citywide Waterline Replacement.
Funding Source
The funding source is the Water Supply and Distribution Fund.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City's official-notice bulletin board outside City Hall, at the Sunnyvale Senior Center, Community Center and Department of Public Safety; and by making the agenda and report available at the Sunnyvale Public Library, the Office of the City Clerk and on the City's website.
RECOMMENDATION
Recommendation
1) Authorize the City Manager to execute a First Amendment to the agreement with Bellecci & Associates, Inc. in substantially the same form as Attachment 1 to the report, increasing the not-to-exceed contract amount from $222,415 to $244,405, and increasing the contingency amount from $22,242 to $24,441; 2) Approve an increase to the contingency amount for Northern Underground Construction, Inc. in an amount of $363,000, increasing the construction contingency from $366,061 to $729,061; and 3) Find that this action is exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15302 (c).
Staff
Prepared by: Gregory S. Card, Purchasing Officer
Reviewed by: Timothy J. Kirby, Director of Finance
Reviewed by: Chip Taylor Director of Public Works
Reviewed by: Teri Silva, Assistant City Manager
Approved by: Kent Steffens, City Manager
ATTACHMENTS
1. First Amendment to Consultant Services Agreement