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HomeMy WebLinkAboutStaff Report 13716 City of Palo Alto (ID # 13716) City Council Staff Report Meeting Date: 3/14/2022 Report Type: Consent Calendar City of Palo Alto Page 1 Title: Approval of Amendment Number 2 to Contract Number C18168129 with Kennedy / Jenks Consultants for Professional Design Services for the Primary Sedimentation Tanks Rehabilitation and Equipment Room Electrical Upgrade Project at the Regional Water Quality Control Plant to Increase Compensation by $166,747 for a New Maximum Compensation Not to Exceed $1,131,747, and to Extend the Contract Term Through June 30, 2024 - Capital Improvement Program Project WQ-14003 From: City Manager Lead Department: Public Works Recommendation Staff recommends that Council approve and authorize the City Manager or their designee to execute Amendment No. 2 to Contract No. C18168129 with Kennedy/Jenks Consultants to increase the contract amount by $166,747 to continue to provide engineering services during construction for the Primary Sedimentation Tanks Rehabilitation and Equipment Room Electrical Upgrade project (CIP WQ-14003), and to extend the term through June 30, 2024. The revised total contract amount is not to exceed $1,131,747 including $717,082 for basic services and $414,665 for additional services. Background On January 29, 2018, Council approved a professional services contract (SR 8729) for design services with Kennedy/Jenks Consultants (K/J) for the Primary Sedimentation Tanks Rehabilitation and Equipment Room Electrical Upgrade Project at the Palo Alto Regional Water Quality Control Plant (RWQCP). The original contract amount was $715,369 including $650,335 for basic services and $65,034 for additional services. On December 3, 2018, Council approved Amendment No.1 (SR 9756) to this contract to increase the contract amount by $249,631 to allow K/J to provide additional services (i.e., perform detailed design of a new electrical building to accommodate a new electrical power distribution center) and to extend the term through March 31, 2022. The project design was completed in June 2019 with anticipation that the construction would begin in October 2019 and be completed by December 2021. Due to the longer than expected time to obtain signed partner agreement amendments from partner agencies and to collaborate with the State Water Resources Control Board on finalizing City of Palo Alto Page 2 the Clean Water State Revolving Fund (CWSRF) Installment Sale Agreement, the invitation for bid for the construction project was delayed to August 2020. The project was rebid in January 2021 and a construction contract was awarded to C. Overaa & Co. (SR 11735) on May 17, 2021 with a new completion date of December 31, 2023. Construction of this project began on June 24, 2021 upon issuance of the Notice to Proceed to the contractor, C. Overaa & Co. As part of the scope of the basic and additional services included in the Contract and Amendment No. 1, K/J is required to provide engineering services during construction. The services include periodic site visits, as-needed attendance at weekly progress meetings, construction document review, startup and commissioning support, and final record drawing preparation. Discussion There was a 20-month delay of the anticipated construction start date from October 2019 to June 2021. The new projected completion date is December 31, 2023. Amendment No. 2 is needed to add funds in the amount of $166,747 to the project to address the delay and account for: 1) updated costs, accounting for increases in hourly billing rates, for providing engineering services during construction 2) additional efforts to provide services during construction associated with a larger volume of construction documents and resubmittals; 3) additional efforts associated with an extended project management period; and 4) as-needed additional engineering services for unforeseen site conditions and coordination with other ongoing major capital projects at the RWQCP. At the start of the construction phase, approximately 20% of K/J’s total budget was reserved for engineering services during construction and associated project management. Because of additional efforts associated with rebidding the construction project, design of the new electrical building, revision of the design to coordinate with other ongoing major capital projects, and other small miscellaneous design elements that are not in the scope of the basic services, the additional services budget has been depleted. The small miscellaneous design elements include adding three electrical car charging stations (to be powered from the new electrical building) for charging of City vehicles; designing a fire sprinkler system for the new electrical building to meet the more stringent requirements of the Palo Alto Municipal Code; optimizing the primary sedimentation tank scum skimming process by adding a computerized program that will be monitored by plant operators; and revising the electrical drawings and specifications to include additional power needs of other ongoing CIP projects at the plant. The original contract amount was $715,369. Amendment No. 1 to the contract increased the contract amount by $249,631. Amendment No. 2 adds $166,747 to the contract. The revised total contract amount is a not to exceed $1,131,747 including $717,082 for basic services and $414,665 for additional services. City of Palo Alto Page 3 Timeline Amendment No. 2 will extend the contract term with K/J from March 31, 2022 to June 30, 2024. Since July 2021, K/J has provided engineering services during construction. K/J’s services will continue through construction completion in about December 2023 and allow until June 30, 2024 for K/J to prepare and submit final record drawings. Resource Impact Palo Alto RWQCP treats the combined wastewater from Palo Alto, Los Altos, Los Altos Hills, Mountain View, Stanford University, and the East Palo Alto Sanitary District. Palo Alto’s share of this project is 38.16% and the other five agencies’ share is 61.84%, based on the fixed capacity established in partners’ agreements. As the lead agency, the City of Palo Alto has appropriated the funding for this Project, including additional funding required for this contract Amendment No. 2, in the Fiscal Year 2022 Wastewater Treatment Enterprise Fund Capital Improvement Program Budget (Project WQ-14003). The design and construction of this project, including associated construction management and administrative costs, is being financed through the CWSRF loan, which is disbursed on a reimbursement basis. Policy Implications This recommendation does not represent any change to existing City policies and supports the Comprehensive Plan Policy N.4-16. Stakeholder Engagement This project is part of the RWQCP’s major capital improvement program funded by Palo Alto and the five partner agencies who use the RWQCP for wastewater treatment. The five partner agencies are regularly updated on both the need for and the progress of wastewater treatment capital work. Updates are provided each year at an annual meeting and at other periodic meetings established to inform partner agency staff about the major capital improvement program. With respect to Palo Alto itself, the open meetings on the budget process serve as the main vehicle for engaging the community on both new projects such as this and associated rate impacts. Environmental Review Approval of Amendment No. 2 to Contract C18168129 is a part of administrative governmental activities that will not cause a direct or indirect physical change in the environment and therefore, does not require a CEQA review. The construction of this project has been determined to be exempt from CEQA under CEQA Guidelines Section 15301, subsections (b) and (e)(1), Existing Facilities, as it involves the repair and maintenance of an existing publicly- owned utility used to provide sewerage treatment services with a minor addition to an existing building. On October 15, 2018, Council approved the determination that the construction of the Primary Sedimentation Tanks Rehabilitation and Electrical Upgrade Project to be exempt from the California Environmental Quality Act and approved the preliminary design (SR 9581).