HomeMy WebLinkAboutStaff Report 2309-20904.Approval of Contract Amendment No. 3 with Carollo Engineers, Inc., adding $388,538 to
the Total Contract Amount for Construction Management Services through June 30, 2024
for the Regional Water Quality Control Plant Primary Sedimentation Tank Rehabilitation
Project. CEQA status – Exempt under CEQA Guidelines Section 15301 (repairs to existing
facilities).
City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Public Works
Meeting Date: October 23, 2023
Report #:2309-2090
TITLE
Approval of Contract Amendment No. 3 with Carollo Engineers, Inc., adding $388,538 to the
Total Contract Amount for Construction Management Services through June 30, 2024 for the
Regional Water Quality Control Plant Primary Sedimentation Tank Rehabilitation Project. CEQA
status – Exempt under CEQA Guidelines Section 15301 (repairs to existing facilities).
RECOMMENDATION
Staff recommends that Council approve and authorize the City Manager or their designee to
execute Amendment No. 3 to Contract No. C21179265C with Carollo Engineers, Inc. to increase
the contract amount by $388,538 to provide construction management and inspection services
during the remaining estimated nine months of construction on the Primary Sedimentation
Tank Rehabilitation Project (WQ-14003), through June 2024. The revised total contract amount
is not to exceed $9,229,806 including $8,284,216 for basic services and $945,590 for additional
services, for this project as well as other projects that will continue through March 2028.
EXECUTIVE SUMMARY
The Regional Water Quality Control Plant is currently being rebuilt. One of the major projects,
the Primary Sedimentation Tank Rehabilitation Project, has been delayed predominantly due to
supply chain issues. To ensure sufficient funding for the remainder of this project, address
resource constraints within the current construction management team, and ease coordination
with the Secondary Treatment Upgrades Project that commenced earlier this year, staff
recommends consolidating the construction management services for both projects through
the approval of Contract Amendment No. 3 with Carollo Engineers, Inc.
BACKGROUND
The Regional Water Quality Control Plant (RWQCP) was originally constructed in 1934 and
has undergone several expansions and upgrades, including the construction of the primary
sedimentation tanks in 1972. The design of the Primary Sedimentation Tank Rehabilitation
Project (PST Project) was completed in August 2019. Construction of the PST Project was
awarded to C. Overaa & Co. (C21179134A) on May 17, 2021 with an initial contract
completion date of December 31, 20231. Due to delayed electrical equipment procurement
by the contractor and long lead time for fabrication, critical electrical work is projected to be
completed by March 2024 with final project completion by June 30, 2024. Staff will continue
to monitor the construction schedule and extend the end date, if warranted.
As of September 2023, construction of the project has progressed to 80 percent. Remaining
construction activities include finalization of coating of Primary Sedimentation Tank No. 1;
installation of a cathodic protection system for the primary sludge line in the Equipment
Room; testing, startup, and commissioning of the sludge raking mechanism; installation of
the guardrail around the scum skimming troughs; installation of new access door and
handrail at the Equipment Room; power connection to new electrical building and testing
and startup of the associated power distribution equipment; human-machine interface
programming; fire alarm installation at the new electrical building; and demolition of old
equipment and associated conduits.
On June 21, 2021, Council approved five separate five-and-a-half-year contracts (Contract
Nos. C21179265A through C21179265E) with MNS Engineers, Inc.; CDM Smith; Carollo
Engineers, Inc.; MCK Americas, Inc., and Tanner Pacific, Inc., for Regional Water Quality
Control Plant (RWQCP) On-Call Construction Management and Inspection Services with a
total not-to-exceed amount of $1 for each contract2. For construction of each capital
improvement project at the RWQCP, staff issued a request for work order proposals to all
five aforementioned construction management consultants, evaluated the proposals
received, and selected one consultant that best met the project needs. Staff then sought
Council’s approval on a project-specific amendment (Task Order) to the selected
construction management consultant’s contract as part of the staff report for the approval of
the construction contract for that project.
For construction management of the PST Project, Staff initially awarded this work to MNS
Engineers, Inc. (MNS) through a contract amendment (Amendment No. 1 to Contract
C21179265A) on September 30, 2021 following City Council approval3 for compensation not
to exceed $1,560,213. The associated Task Order No. 1 services were funded by the Primary
Sedimentation Tank Rehabilitation Project (WQ-14003).
1 City Council, May 17, 2021; Agenda Item #10; SR #11735.
https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes-reports/reports/city-manager-reports-
cmrs/year-archive/2021/id-11735.pdf
2 City Council, June 21, 2021; Agenda Item #21; SR #12324.
https://www.cityofpaloalto.org/files/assets/public/v/2/agendas-minutes-reports/reports/city-manager-reports-
cmrs/year-archive/2021/id-12324.pdf
3 City Council, June 21, 2021; Agenda Item #21; SR #12324.
https://www.cityofpaloalto.org/files/assets/public/v/2/agendas-minutes-reports/reports/city-manager-reports-
cmrs/year-archive/2021/id-12324.pdf
ANALYSIS
Due to resource constraints within the MNS construction management team, the extended
construction completion date, and the need to control the project budget, staff issued a
Notice of Termination for Amendment No. 1 to Contract C21179265A to MNS on September
27, 2023 and requested a fee proposal from Carollo Engineers Inc. (Carollo) who is currently
onsite and managing the Secondary Treatment Project. Carollo’s fee proposal will use the
remaining project budget for construction management to complete the work at no
additional cost to the City. Staff determined that it would be efficient and cost effective to
utilize a construction management firm who is already onsite, familiar with the RWQCP’s
process and electrical systems, and whose resources are not constrained. Staff recommends
that the City Council approve Amendment No. 3 (Attachment A) to Contract No. C21179265C
with Carollo, with consideration of the following factors:
1) Carollo was previously ranked No. 2 during the Work Order No. 1 proposal evaluation;
2) Carollo has staff onsite managing the construction of the Secondary Treatment
Upgrades and Plant Repair, Retrofit, and Equipment Replacement which includes
12,470-volt (a.k.a. 12kV) Electrical Power Distribution Loop Rehabilitation projects and
is familiar with the RWQCP’s equipment systems;
3) Staff are satisfied with Carollo’s performance and responsiveness at resolving
construction issues for the aforementioned projects. Timely resolution is needed to
mitigate potential schedule delay faced by the PST Project; and
4) Carollo’s proposed fee ($246,700) to carry the PST Project to completion is less than
the remaining funds in MNS Contract Amendment No.1 (estimated at around $270,000
plus $141,838 contingency for additional services). The proposed Amendment No. 3 to
Carollo’s contract will include $246,700 for basic services and $141,838 for additional
services for a total not-to-exceed amount of $388,538 for this project.
On November 14, 2022, Council approved Amendment No. 1 to Contract C21179265C with
Carollo to add Task 2: construction management and inspection services for the 12kV Electrical
Power Distribution Loop Rehabilitation Bid Package 1 Project, and to increase compensation for
basic and additional services by $604,246, from $1 to $604,247. Task 2 Services were funded by
the Plant Repair, Retrofit, and Equipment Replacement Project (WQ-19002)4.
On December 5, 2022, Council approved Amendment No. 2 to Contract C21179265C with
Carollo to: 1) add Task 3: construction management and inspection services for the Secondary
Treatment Upgrades Project; 2) extend the contract term through March 31, 2028; and 3)
increase compensation for basic and additional services by $8,237,021, from $604,247 to
4 City Council, November 14, 2022; Agenda Item #5; SR #14602.
https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes-reports/reports/city-manager-reports-
cmrs/2022/id.-14602.pdf
$8,841,268. Task 3 Services were funded by the Secondary Treatment Upgrades Project (WQ-
19001)5.
This Amendment No. 3 to Carollo Contract C21179265C will increase compensation for basic
and additional services by $388,538, from $8,841,268 to $9,229,806. Task 1A Services will be
funded by the Primary Sedimentation Tank Rehabilitation Project (WQ-14003).
The PST Project final completion date is expected to be June 30, 2024. Amendment No. 3 to the
Carollo Contract C21179265C will not change the current contract end date of March 31, 2028.
FISCAL/RESOURCE IMPACT
Once the termination of Amendment No. 1 to the MNS Contract C21179265A (Task 1 services)
is finalized, the remaining funds from Task 1, estimated at $411,838, will become available in
the Primary Sedimentation Tank Rehabilitation Project (WQ-14003) for Amendment No. 3 to
Carollo Contract C21179265C (Task 1A Services). Therefore, no additional funds are required for
the amendment amount of $388,538.
STAKEHOLDER ENGAGEMENT
This project is part of the RWQCP’s major capital improvement program funded by the City of
Palo Alto and its 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 and
associated rate impacts.
ENVIRONMENTAL REVIEW
Approval of the proposed contract amendment is within the scope of the Primary
Sedimentation Tank Rehabilitation Project. On October 15, 2018, the City Council determined
that the project is categorically exempt from CEQA review under CEQA Guidelines section
15301 because the project involves repairs to existing facilities with a negligible expansion in
use. A Notice of Exemption was submitted to Santa Clara County Clerk-Recorder’s office and
was recorded on October 31, 2018 (File No. ENV21843).
5 City Council, December 5, 2022; Action Item #8; SR #14918.
https://www.cityofpaloalto.org/files/assets/public/v/1/agendas-minutes-reports/reports/city-manager-reports-
cmrs/2022/id.-14918.pdf
ATTACHMENTS
Attachment A: Amendment No. 3 to Contract C21176592C for Construction Management and
Inspection Services
APPROVED BY:
Brad Eggleston, Director Public Works/City Engineer
Page 1 of 19 Vers.: Aug. 5, 2019
AMENDMENT NO. 3 TO CONTRACT NO. C21179265C
BETWEEN THE CITY OF PALO ALTO
AND CAROLLO ENGINEERS, INC.
This Amendment No. 3 (this “Amendment”) to Contract No. C21179265C (the “Contract” as
defined below) is entered into as of October 16, 2023, by and between the CITY OF PALO ALTO, a
California chartered municipal corporation (“CITY”), and CAROLLO ENGINEERS, INC., a California
corporation, located at 2795 Mitchell Drive, Walnut Creek, CA 94598 (“CONSULTANT”). CITY and
CONSULTANT are referred to collectively as the “Parties” in this Amendment.
R E C I T A L S
A. The Contract (as defined below) was entered into by and between the Parties to
provide construction management and inspection services on an on-call, as-needed,
time-limited basis in connection with individual projects or inspection tasks at the
Regional Water Quality Control Plant (RWQCP), as detailed therein.
B. The Parties entered into Amendment No. 1 to add Task 2 services (referred to as Work
Order No. 2) for Construction Management and Inspection Services for the 12kV
Electrical Power Distribution Loop Rehabilitation Bid Package 1 Project, and to increase
compensation by Six Hundred Four Thousand Two Hundred Forty-Six Dollars
($604,246.00), from One Dollar ($1.00) to Six Hundred Four Thousand Two Hundred
Forty-Seven Dollars ($604,247.00), as detailed therein.
C. The Parties entered into Amendment No. 2 to (1) extend the contract term through
March 31, 2028; (2) add Task 3 services (referred to as Work Order No. 3) for
Construction Management Services for the Secondary Treatment Upgrades Project;
and (3) increase compensation by Eight Million Two Hundred Thirty-Seven Thousand
Twenty-One Dollars ($8,237,021.00), from Six Hundred Four Thousand Two Hundred
Forty-Seven Dollars ($604,247.00) to Eight Million Eight Hundred Forty-One Thousand
Two Hundred Sixty-Eight Dollars ($8,841,268.00), as detailed therein.
D. The Parties now wish to amend the Contract in order to (1) add Task 1A services
(referred to as Work Order No. 1A) for Construction Management Services for the
Primary Sedimentation Tank Rehabilitation and Equipment Room Electrical Upgrade
Project; and (2) increase compensation by Three Hundred Eighty-Eight Thousand Five
Hundred Thirty-Eight Dollars ($388,538.00), from $8,841,268.00 to Nine Million Two
Hundred Twenty-Nine Thousand Eight Hundred Six Dollars ($9,229,806.00), as detailed
herein.
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NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this
Amendment, the Parties agree:
SECTION 1. Definitions. The following definitions shall apply to this Amendment:
a. Contract. The term “Contract” shall mean Contract No. C21179265C between
CONSULTANT and CITY, dated June 14, 2021, as amended by:
Amendment No. 1, dated November 7, 2022
Amendment No. 2, dated December 5, 2022
b. Other Terms. Capitalized terms used and not defined in this Amendment shall
have the meanings assigned to such terms in the Contract.
SECTION 2. Section 4 “NOT TO EXCEED COMPENSATION” of the Contract is hereby amended to
read as follows:
“The CITY is engaging multiple consultants, including CONSULTANT, that are eligible to respond with
proposals to the CITY’s project-specific Task Orders under the process described in Exhibit A. The
compensation to be paid to CONSULTANT for performance of the Services shall be based on the
compensation structure detailed in Exhibit C, entitled “COMPENSATION,” including any reimbursable
expenses specified therein, and the maximum total compensation shall not exceed One Dollar ($1),
unless CITY selects CONSULTANT, according to the process in Exhibit A, to perform services under one
or more Task Orders not to exceed Nine Million Two Hundred Twenty-Nine Thousand Eight Hundred
Six Dollars ($9,229,806.00) over the term of the Agreement. No pre-qualified consultant, including the
CONSULTANT under this Agreement, is guaranteed selection or assured of any minimum quantity of
work to be performed. In the event CONSULTANT is not selected to provide Services under a Task
Order, no payment is due from CITY.
The hourly schedule of rates, if applicable, is set out in Exhibit C-1, entitled “SCHEDULE OF RATES.”
Any work performed, or expenses incurred for which payment would result in a total exceeding
the maximum compensation set forth in this Section 4 shall be at no cost to the CITY.
A. The City has selected CONSULTANT to perform Work Order #2, for Construction
Management and Inspection Services for the Medium Voltage Electrical Network (12kV
Elec. Loop) Rehabilitation Bid Package 1 Project, in the amount not to exceed Five
Hundred Forty-Nine Thousand Three Hundred Fifteen Dollars ($549,315.00).
CONSULTANT agrees to complete all Basic Services, including reimbursable expenses,
within this amount. In the event Additional Services (as defined below) are authorized, the
total compensation for Basic Services, Additional Services and reimbursable expenses for
Work Order #2 shall not exceed Six Hundred Four Thousand Two Hundred Forty-Seven
Dollars ($604,247.00).
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B. The City has selected CONSULTANT to perform Work Order #3, for Construction
Management Services for the Secondary Treatment Upgrades Project, in the amount not
to exceed Seven Million Four Hundred Eighty-Eight Thousand Two Hundred One Dollars
($7,488,201.00). CONSULTANT agrees to complete all Basic Services, including
reimbursable expenses, within this amount. In the event Additional Services (as defined
below) are authorized, the total compensation for Basic Services, Additional Services and
reimbursable expenses for Work Order #3 shall not exceed Eight Million Two Hundred
Thirty-Seven Thousand Twenty-One Dollars ($8,237,021.00).
C. The City has selected CONSULTANT to perform Work Order #1A, for Construction
Management Services for the Primary Sedimentation Tank Rehabilitation and Equipment
Room Electrical Upgrade Project, in the amount not to exceed Two Hundred Forty-Six
Thousand Seven Hundred Dollars ($246,700.00). CONSULTANT agrees to complete all
Basic Services, including reimbursable expenses, within this amount. In the event
Additional Services (as defined below) are authorized, the total compensation for Basic
Services, Additional Services and reimbursable expenses for Work Order #1A shall not
exceed Three Hundred Eighty-Eight Thousand Five Hundred Thirty-Eight Dollars
($388,538.00).
Optional Additional Services Provision (This provision applies only if checked and a not-to-
exceed compensation amount for Additional Services is allocated below under this Section 4.)
In addition to the not-to-exceed compensation specified above, CITY has set aside the not-to-
exceed compensation amount of Fifty-Four Thousand Nine Hundred Thirty-Two Dollars
($54,932.00) for the performance of Additional Services for Work Order #2; Seven Hundred
Forty-Eight Thousand Eight Hundred Twenty Dollars ($748,820.00) for Work Order #3; and
One Hundred Forty-One Thousand Eight Hundred Thirty-Eight Dollars ($141,838.00) for Work
Order #1A. The total compensation for performance of the Services, Additional Services and
any reimbursable expenses specified in Exhibit C, shall not exceed Nine Million Two Hundred
Twenty-Nine Thousand Eight Hundred Six Dollars ($9,229,806.00), as detailed in Exhibit C.
“Additional Services” means any work that is determined by CITY to be necessary for the
proper completion of the Project, but which is not included within the Scope of Services
described in a Task Order issued under Exhibit A. CITY may elect to, but is not required to,
authorize Additional Services up to the maximum amount of compensation set forth for
Additional Services in this Section 4. CONSULTANT shall provide Additional Services only by
advanced, written authorization from CITY as detailed in this Section. Additional Services, if
any, shall be authorized by CITY with a Task Order assigned and authorized by CITY’s Project
Manager, as identified in Section 13 (Project Management). Each Task Order shall be in
substantially the same form as Exhibit A-1, entitled “PROFESSIONAL SERVICES TASK ORDER”.
Each Task Order shall contain a specific scope of services, schedule of performance and
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maximum compensation amount, in accordance with the provisions of this Agreement.
Compensation for Additional Services shall be specified by CITY in the Task Order, based on
whichever is lowest: the compensation structure set forth in Exhibit C, the hourly rates set
forth in Exhibit C-1, or a negotiated lump sum.
To accept a Task Order, CONSULTANT shall sign the Task Order and return it to CITY’s Project
Manager within the time specified by the Project Manager, and upon authorization by CITY
(defined as counter-signature by the CITY Project Manager), the fully executed Task Order
shall become part of this Agreement. The cumulative total compensation to CONSULTANT for
all Task Orders authorized under this Agreement shall not exceed the amount of
compensation set forth for Additional Services in this Section 4. CONSULTANT shall only be
compensated for Additional Services performed under an authorized Task Order and only up
to the maximum amount of compensation set forth for Additional Services in this Section 4.
Performance of and payment for any Additional Services are subject to all requirements and
restrictions in this Agreement.”
SECTION 3. The following exhibit(s) to the Contract are hereby amended, as indicated below,
to read as set forth in the attachment(s) to this Amendment, which are hereby incorporated in full into
this Amendment and into the Contract by this reference:
a. Exhibit “A-3” entitled “PROFESSIONAL SERVICES TASK ORDER NO. 1A, AMENDMENT
NO. 3” (ADDED).
b. Exhibit “B” entitled “SCHEDULE OF PERFORMANCE, AMENDMENT NO. 3” (AMENDED,
REPLACES PREVIOUS)
c. Exhibit “C” entitled “COMPENSATION, AMENDMENT NO. 3,” (AMENDED, REPLACES
PREVIOUS).
SECTION 4. Legal Effect. Except as modified by this Amendment, all other provisions of the
Contract, including any exhibits thereto, shall remain in full force and effect.
SECTION 5. Incorporation of Recitals. The recitals set forth above are terms of this
Amendment and are fully incorporated herein by this reference.
(SIGNATURE BLOCK FOLLOWS ON THE NEXT PAGE.)
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SIGNATURES OF THE PARTIES
IN WITNESS WHEREOF, the Parties have by their duly authorized representatives executed this
Amendment effective as of the date first above written.
CITY OF PALO ALTO
______________________________
City Manager or Designee
APPROVED AS TO FORM:
______________________________
City Attorney or Designee
CAROLLO ENGINEERS, INC.
Officer 1
By:_____________________________
Name:__________________________
Title:____________________________
Officer 2
By:_____________________________
Name:__________________________
Title:____________________________
Attachments:
Exhibit “A-3”: PROFESSIONAL SERVICES TASK ORDER NO. 1A, AMENDMENT NO. 3 (ADDED)
Exhibit “B”: SCHEDULE OF PERFORMANCE, AMENDMENT NO. 3 (AMENDED, REPLACES PREVIOUS)
Exhibit “C”: COMPENSATION, AMENDMENT NO. 3 (AMENDED, REPLACES PREVIOUS)
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Senior Vice President
Rick Chan, Senior Vice President
Senior Vice President
Anne E. Prudhel
Page 6 of 19 Vers.: Aug. 5, 2019
EXHIBIT “A-3”
PROFESSIONAL SERVICES TASK ORDER NO. 1A, AMENDMENT NO. 3
(ADDED)
CONSULTANT shall perform the Services detailed below in accordance with all the terms and
conditions of the Agreement referenced in Item 1A below. All exhibits referenced in Item 8 are
incorporated into this Task Order by this reference. CONSULTANT shall furnish the necessary facilities,
professional, technical and supporting personnel required by this Task Order as described below.
CONTRACT NO. C21179265C
1A. MASTER AGREEMENT NO.: C21179265C
1B. TASK ORDER NO 1A: Work Order No. 1A for Construction Management Services for the
Primary Sedimentation Tank Rehabilitation and Equipment Room Electrical Upgrade Project
2. CONSULTANT NAME: CAROLLO ENGINEERS, INC.
3. PERIOD OF PERFORMANCE:
START: Immediately Once Notice to Proceed (NTP) is Issued;
COMPLETION: 6/30/2024
4 TOTAL TASK ORDER NO. 1A PRICE: $246,700.00
BALANCE REMAINING IN MASTER AGREEMENT/CONTRACT: $0
5. WBS/CIP: WQ-14003
6. CITY PROJECT MANAGER: Siew Ching Chin, Public Works Department, Environmental
Services Division, RWQCP
7. DESCRIPTION OF SCOPE OF SERVICES MUST INCLUDE:
Services and Deliverables to Be Provided
Schedule of Performance
Maximum Compensation Amount and Rate Schedule (As Applicable)
Reimbursable Expenses, If Any (With “Not to Exceed” Amount)
8. ATTACHMENTS: Task Order No. 1A Scope of Services, including Schedule of Performance
and Compensation Schedule
TASK ORDER #1A SCOPE OF SERVICES
WORK ORDER NO. 1A: CONSTRUCTION MANAGEMENT SERVICES FOR THE PRIMARY
SEDIMENTATION TANK REHABILITATION AND EQUIPMENT ROOM ELECTRICAL UPGRADE PROJECT
Background:
Construction of this Project was awarded to C. Overaa & Co. (C21179134A) on May 17, 2021 with a
final completion date of December 31, 2023. As of August 31, 2023, the construction of this project
has progressed to 77%. Remaining construction activities include coating of Primary Sedimentation
Tank (PST) No. 1; installation of a cathodic protection system for PST sludge line in the Equipment
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Room; PST flight and chain monitoring system startup and commissioning; guardrail installation at top
deck scum skimmer and PST electrical building; landing and handrail installation for a new door at
Equipment Room; new MCC-F connection to Load Center No.4; PLC and SCADA programming; MCCs F
and G testing (in progress); fire alarm installation at PST electrical building (near completion);
equipment cutover to new MCCs F and G; and demolition of old MCCs and associated conduits. The
construction substantial completion date is currently projected for March 31, 2024 with a final
completion date June 30, 2024.
CONSULTANT shall provide construction management and inspection services for the remainder of
this Project.
Task 1: General Requirements
1. For any work which requires licensing, the Proposers shall be appropriately licensed
in accordance with the laws of the State of California. The cost for any required
licenses or permits shall be the responsibility of the successful Proposers.
2. CONSULTANT shall provide all necessary administration, project controls, quality
assurance and professional oversight of the project to keep the project on schedule,
within budget, provide continuity of information, and satisfy the requirements of the
CONTRACT. CONSULTANT shall prepare and distribute a Project Management Plan
to include schedule, budget, roles, contracts and procedures.
3. At the beginning of each month, CONSULTANT shall submit to the CITY monthly
invoices for the cost incurred during previous month; including subconsultant and
expenses. If CITY chooses to seek reimbursement for some or all of CONSULTANT’s
costs from SRF, CONSULTANT shall provide SRF required documentation with the
invoices and clearly indicate the SRF eligible reimbursement amount.
4. CONSULTANT shall prepare and submit monthly invoice packages to the City. The
City prefers processing CONSULTANT pay requests that cover one calendar month.
Monthly invoice packages are to include a progress report documenting progress.
The report shall include the progress by each task, the budget status (authorized
amount, current billing, billed to date, previously billed, amount remaining, and
percent spent), outstanding issues, potential changes, project schedule and schedule
impacts. CONSULTANT shall identify and mitigate potential budget overruns; and
notify CITY Project Manager as soon as the potential overrun is identified. If SRF
funding is used, progress reports shall include a summary of SRF eligible costs per
month.
Task 2: Construction Phase
1. Construction Administration
a. Project Coordination
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i. CONSULTANT shall act as the project coordinator and the point of
contact for all communications with the CONTRACTOR. The
CONSULTANT shall coordinate construction activities of the CITY,
ENGINEER, and CONTRACTOR. CONSULTANT responsibilities
include: Conduct team meetings within the consulting firm to
review progress, coordinate evaluations and identify information
needs; Disseminate information to the design team; Manage the
project budget; Manage the project schedule; Manage sub-
consultants; Manage QA / QC team; Coordinate communications
with other ongoing project’s construction managers to facilitate the
construction of ongoing projects and continuous Plant operations.
ii. CONSULTANT shall provide a contact phone number to respond to
issues related to construction activity or coordination, 24 hours a
day, 7 days a week.
b. Document Tracking System: CONSULTANT shall use web based construction
management platform (CMIS) already established for the PST Project.
c. Construction Administration Services: CONSULTANT shall provide
administrative and management services. The CONSULTANT shall receive all
correspondence from the CONTRACTOR and address all inquiries from the
CONTRACTOR and construction related correspondence. The ENGINEER will
be responsible for providing design input.
2. Meetings
a. CONSULTANT shall prepare agenda for progress meetings and other
construction meetings required during the Project, which includes weekly
meetings with the CONTRACTOR and CITY.
b. CONSULTANT shall facilitate and prepare records of discussions for the
progress meetings and other construction related meetings.
c. CONSULTANT shall have all pending decisions detailed for the meetings as
well as project statistics (schedule updates, approximate percent project
complete, near-term milestones).
d. Anticipated Meetings
i. Weekly progress meeting
ii. Project close-out Meeting
iii. Attend coordination meetings with other ongoing projects, as-
needed.
3. Submittals
a. CONSULTANT shall use the online document tracking system to log and
coordinate the submittal process.
b. CONSULTANT shall receive the submittals, including CONTRACTOR’s red-line
drawings, from the CONTRACTOR and check the submittals for general
conformity with the Construction Contract requirements and American Iron
and Steel (AIS) requirements. If obvious deficiencies are apparent in the
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submittal, the CONSULTANT shall reject and send the submittal back to the
CONTRACTOR for correction.
c. CONSULTANT shall route the submittals to the ENGINEER for review and shall
route the reviewed submittal back to the CONTRACTOR. The CONSULTANT
shall review comments on the submittals to determine if additional follow-up
with the CONTRACTOR and/or ENGINEER is warranted and to identify any
scope changes.
d. CONSULTANT shall coordinate the ENGINEER’s submittal review and the
track the status of shop drawing resubmittals with the CONTRACTOR.
e. In addition to the CONSULTANT, ENGINEER to review all design related
submittals and all submittals for temporary facilities.
f. CONSULTANT shall review temporary facilities submittals for conflicts with
other ongoing projects’ active and/or proposed construction. The City may
request CONSULTANT review other ongoing projects’ temporary facilities
submittals for constructability issues.
g. CONSULTANT shall review temporary facilities submittals for operability.
4. Request for Information/Clarification Process
a. CONSULTANT shall utilize the online document tracking system for processing
requests for design clarifications.
b. CONSULTANT shall receive all requests for information (RFIs) from the
CONTRACTOR and determine if the request is a valid RFI;
i. If valid, ENGINEER will review the RFIs and provide design response.
CONSULTANT shall review the ENGINEER’s response, verify
acceptability of response and transmit the Clarification Response to
the CONTRACTOR.
ii. If not, CONSULTANT shall return the RFI to the CONTRACTOR with
justifications.
c. CONSULTANT shall provide a response within 7 calendar days to the
CONTRACTOR for any administrative, field condition specific and general RFI.
d. ENGINEER shall prepare Design Clarifications where design issues are
identified by the CONSULTANT, ENGINEER, or CITY. CONSULTANT shall
prepare the Clarification Letter for transmittal to the CONTRACTOR of the
ENGINEER’s Design Clarification and other clarifications.
e. CONSULTANT shall work with the CITY Project Manager to maintain an Error
and Omission Log for remaining work to document change orders, RFIs and
RFCs that are a result of ENGINEER and CONTRACTOR errors in design and
construction, respectively. The log shall record the hours spent by the
ENGINEER to respond to the RFIs/ RFCs and associated cost impact to the
construction. CITY may seek reimbursement from the ENGINEER and/or
CONTRACTOR.
5. Change Order Preparation, Negotiation & Processing
a. The CITY will review and process all change order requests submitted by the
CONTRACTOR before September 18, 2023 and may request CONSULTANT’s
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assistance when negotiation with the CONTRACTOR is needed.
b. CONSULTANT shall review all change order requests (either initiated by the
CITY or by the CONTRACTOR) received on or after September 18, 2023.
i. CONSULTANT shall utilize the online document tracking system to log,
track, and process changes.
ii. CONSULTANT shall maintain Change Event files. These files shall
compile all data related to specific items that arise that may have cost
or time impacts or neither.
c. CONSULTANT shall judge the validity and/or merits of all CONTRACTOR
initiated change order requests. CONTRACTOR initiated change orders
deemed unnecessary, or not substantiated by a deficiency in the construction
documents shall be returned to CONTRACTOR unapproved with an
explanation.
d. CONSULTANT shall negotiate change orders with the CONTRACTOR,
considering impact to the schedule, as well as, reasonableness of cost, and
impact to total project budget. CONSULTANT shall provide updates regarding
potential cost and schedule changes to CITY.
e. CONSULTANT shall prepare an independent cost estimate and/or verify the
acceptability of the CONTRACTOR’s cost proposal for each approved change
request. At CITY’s discretion, ENGINEER’s opinion may be requested for
specific equipment and material costs.
f. CONSULTANT shall prepare change orders using CITY’s procedure for
execution by the CITY and CONTRACTOR.
i. CONSULTANT shall prepare a Change Order Memorandum, if
requested by the CITY, to provide additional background discussion for
need of the change and reasonableness of cost and schedule impact.
ii. ENGINEER shall prepare design details for change requests as needed.
CONSULTANT to coordinate schedule and distribution of design
details.
iii. CONSULTANT shall prepare, and issue approved change order
requests to the CONTRACTOR with the appropriate design documents
as directed by the CITY.
g. In the event the CONTRACTOR encounters a time sensitive problem where
time is not available to negotiate a settlement, CONSULTANT shall issue a
written field order.
i. All work done under a field order will be completed on a time and
material basis. CONSULTANT to collect extra work daily reports from
the Contractor each day and track actual time and material expended
for the field order work.
ii. Field orders shall be reviewed and approved with the CITY prior to
issuance.
6. Documentation of Environmental Compliance
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a. CONSULTANT shall document compliance with environmental permitting and
mitigation measures in accordance with the requirements of the
environmental documents and regulatory permits.
7. Progress Payment
a. CONSULTANT shall review the progress payment requests and determine
whether the amount requested reflects the actual status of the Contractor’s
work in place, materials on site and other contract requirements.
b. CONSULTANT shall perform the appropriate administration, preparation and
processing of the monthly progress payments so the CITY can respond in
accordance with the time periods set forth in the Public Contract Code.
c. CONSULTANT shall prepare the summary cover sheet for the progress
payments which will be executed by CONSULTANT, CONTRACTOR and CITY.
d. CONSULTANT shall not recommend final payment to the CONTRACTOR until
the CONSULTANT has determined CONTRACTOR has complied with the
project closeout requirements, including submittals of record documents,
warranties, and operations and maintenance manuals. CITY will release the
retention only after a Notice of Completion has been recorded with the Santa
Clara County Clerk’s Recorder Office.
8. CONTRACTOR’s Certified Payroll
a. On a bi-weekly basis, or when otherwise requested by the CITY, State, or
other agency or public inquiry, the CONSULTANT shall collect certified payrolls
from the CONTRACTOR. Apart from the regular, bi-weekly collection, the
CONSULTANT shall obtain payroll records within 10 days of the CITY’s request.
b. CONTRACTOR is responsible for submitting electronically their certified payroll
records to the State Department of Industrial Relations.
c. CONSULTANT shall be responsible for documenting and conducting interviews
of the CONTRACTOR’s field staff/crew for compliance with CITY prevailing
wage ordinance and SRF requirements (SF-1445) for Davis-Bacon Act
compliance.
9. Schedule
a. CONSULTANT shall review the CONTRACTOR’s schedule updates and provide
written comments to the submitted update.
b. CONSULTANT shall review and evaluate the CONTRACTOR’s requests for
Contract Time extension and make written recommendations to the CITY
regarding entitlement and the number of days, if any, to be added to the
Contract Time(s). If requested by the CITY, CONSULTANT shall provide a written
assessment of the time request. CONSULTANT shall negotiate schedule
adjustments with the CONTRACTOR.
10. Field Quality Control (Inspectional Services)
a. CONSULTANT shall provide field observation services to monitor compliance
with the Contract Documents.
i. CONSULTANT staff shall have sufficient training and experience
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regarding the specific construction activities being performed by
CONTRACTOR.
1) CONSULTANT shall provide staff proportional as what is
required to observe CONTRACTOR’s activities.
2) CONSULTANT shall provide subconsultant(s) as needed to
observe specialty work or increase staffing levels (see Special
Inspections).
3) CITY may set an allowance on a task order specific basis for the
increased cost only of inspectional services if required during
off hours and on weekends. Consultant to provide sufficient
hours to cover all inspectional services anticipated at standard
rates.
b. Reporting
i. CONSULTANT shall prepare daily inspection reports documenting
observed field activities, field crews, CONTRACTOR equipment, and
field problems. CONSULTANT shall collect and compile CONTRACTOR
daily reports each week.
ii. CONSULTANT shall provide and maintain photographs of field activities
for status monitoring of the project.
iii. CONSULTANT shall monitor record documents (redline drawings) on a
bi-weekly basis to determine if they are being maintained by the
CONTRACTOR and are in substantial conformance with the
CONSULTANT’s information/observations.
iv. CONSULATNT shall prepare a monthly report to include major work
performed, outstanding issues, project photographs, schedule status,
pending and executed change orders summary, and quality issues. This
report shall also be part of CONSULTANT’s monthly progress payment
report.
c. Special Inspections
i. CONSULTANT shall furnish the materials testing and special inspections
required to be performed for the Project. Special Inspection and
materials testing includes, but not limited to:
1) Coating inspection
2) Special inspections as listed in the project specific design
drawings and specs.
ii. CONSULTANT shall schedule and coordinate the material testing
services and have responsibility for the specialty inspections and
testing services.
11. System Outages
a. CONSULTANT shall review and evaluate the CONTRACTOR’s system outage
requests (SOR) in conjunction with the CITY. CONSULTANT shall assess the
reasonableness of the duration of the requested shutdown.
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b. The SORs shall be reviewed and approved at least two weeks ahead of the
actual outage/shutdown.
c. CONSULTANT shall facilitate/coordinate shutdowns with the CONTRACTOR,
CITY and ENGINEER.
i. CITY is responsible for reviewing and approving system outage request
and duration, confirming the outage is properly planned,
implementing the outage, and bringing services back online after the
outage.
12. Means and Methods of Construction
a. CONSULTANT shall not direct the means and methods of construction.
CONTRACTOR shall be solely responsible for the means and methods of
construction. Concerns or suggestions regarding the CONTRACTOR’s means
and methods shall be communicated to CITY and ENGINEER.
13. Safety
a. CONSULTANT shall comply with appropriate regulatory, project and CITY
codes in addition to CONSULTANT’s Health and Safety Plan regarding
necessary safety equipment and procedures used during performance of the
CONSULTANT’s work and shall take necessary precautions for safe operation
of the CONSULTANT’s work, and the protection of the CONSULTANT’s
personnel from injury and damage from such work.
b. Neither the professional activities of the CONSULTANT, nor the presence of
the CONSULTANT’s employees or sub-consultants at the construction/project
site, shall relieve the CONTRACTOR and any other entity of their obligations,
duties and responsibilities including, but not limited to, construction means,
methods, sequence, techniques or procedures necessary for performing,
superintending, or coordinating their work in accordance with the Contract
Documents, City codes, and any health or safety precautions required by
pertinent regulatory agencies. CONSULTANT and its personnel have no
authority to exercise any control over any CONTRACTOR or other entity or
their employees in connection with their work or any health or safety
precautions.
14. Spare Parts
a. CONSULTANT shall prepare a list of required spare parts from the
specifications and vendor O&M Manuals or recommended spare parts lists.
b. CONSULTANT shall inventory spare parts as they are delivered by the
CONTRACTOR and transfer spare parts to the CITY. The transfer of part shall
be documented via material transmittal, signed by Contractor, CONSULTANT
and CITY.
15. Operation and Maintenance (O&M) Manuals
a. CONSULTANT shall prepare a list of anticipated O&M Manuals and track the
submittal and review process in the online document tracking system.
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b. CONSULTANT shall verify that the submitted O&M manuals are the correct
and latest version, and that the ‘lessons learned’ and notes taken during
startup and commissioning are included in the O&M manuals. CONSULTANT
shall coordinate delivery of final hardcopies from CONTRACT to CITY.
16. Testing and Training
a. CONSULTANT shall coordinate training requirements and activities.
b. ENGINEER shall provide design assistance during testing operations.
c. CONSULTANT shall work with CONTRACTOR, ENGINEER and CITY on the
development of the Testing and Startup Plan.
d. CONSULTANT shall provide oversight and administration of training and
testing.
e. CONSULTANT shall coordinate the training with the CONTRACTOR, vendor
and CITY staff. Some equipment may need training for third party personnel
with whom the CITY may be contracting with. CITY will provide the vendor
contact information for CONSULTANT to coordinate with. Trainings shall be
coordinated so that key CITY staff can attend; schedule shall accommodate
key CITY staff/ Plant operations shifts. Multiple training sessions for day shift
and night shift operators may be required.
f. CONSULTANT shall observe start-up and testing as the CITY’s representative
and maintain copies of start-up documentation in an organized binder that
shall be turned over at the end of the project.
g. CONSULTANT shall attend training sessions and collect attendance sheets
and copies of training material.
h. If required by CITY, CONSULTANT shall coordinate production quality audio
and video recording and editing of training sessions to be used for future
training sessions. The final digital copy shall be labeled and have an
introduction that indicates the type of training, the process area, the
equipment name, the vendor(s) / manufacturer(s) if applicable, the date,
and the CONTRACTOR.
i. Refer CITY’s Demonstration and Training Standards for more details.
17. Corrective Work Item List
a. The CONSULTANT shall prepare and maintain a Corrective Work Item list
(CWL) with the input from the CITY and ENGINEER.
b. CONSULTANT shall confirm that the items identified in the CWL are
completed in preparation for issuance of Substantial Completion Certificate
(SCC).
c. CONSULTANT shall prepare the SCC for execution by the CITY and the
CONTRACTOR when the Corrective Work Items are completed to the CITY’s,
ENGINEER’s and The CONSULTANT’s satisfaction.
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Task 3: Project Closeout Phase
1. Punch List and Final Inspection
a. Punch List
i. CONSULTANT shall in conjunction with the CITY prepare the list of
outstanding deficiencies.
ii. CONSULTANT shall prepare and issue the Punch List(s) from the list of
deficiencies.
iii. CONSULTANT shall have primary responsibility for verifying that the
Punch List work is complete.
b. Final Inspection
iv. CONSULTANT shall have primary responsibility for conducting the
final inspection.
1) CITY will participate and provide input on the final inspection.
2) ENGINEER will provide design input on final inspection items if
determined necessary by the CITY.
3) CONSULTANT shall be responsible for oversight and review of
the final inspection.
2. Warranty Coordination
a. CONSULTANT shall maintain a warranty file in the online document tracking
system. All warranty documentation shall be handed off to the CITY at
conclusion of the contract.
3. Project Closeout
a. CONTRACTOR shall furnish record documents, which the CONSULTANT shall
review and transmit to ENGINEER for conforming and final issuance to CITY.
b. CONSULTANT shall prepare necessary CITY documentation recommending
acceptance of the completed work by the CITY.
c. CONSULTANT shall turnover project documentation to the CITY in an orderly
manner and in a timely manner after completion of the project and all Punch-
list activities. The CONSULTANT shall retain all change event files at the end of
the project. The CITY shall have the right to request review and/or copies of
the change events files.
Work Order No. 1A: Milestone Schedule of Performance
TASK # MILESTONES
NUMBER OF WEEKS TO
COMPLETION FROM WORK
ORDER #1A NOTICE TO
PROCEED (NTP)
NO LATER THAN
DATE
Task 1 General Requirements 37 Weeks 6/30/2024
Task 2 Construction Phase 24 Weeks 3/31/2024
Task 3 Project Closeout 37 Weeks 6/30/2024
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Work Order No. 1A: Milestone Compensation Schedule
TASK # MILESTONES NOT TO EXCEED
AMOUNT
Task 1 General Requirements $8,000
Task 2 Construction Phase $186,600
Task 3 Project Closeout $52,100
Sub-total Basic Services $246,700
Reimbursable Expenses $0
Total Basic Services and Reimbursable Expenses $246,700
Additional Services (per Section 4) (Not to Exceed) $141,838
Maximum Total Compensation $388,538
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EXHIBIT “B”
SCHEDULE OF PERFORMANCE, AMENDMENT NO. 3
(AMENDED, REPLACES PREVIOUS)
Optional Schedule of Performance Provision for On-Call or Additional Services Agreements.
(This provision only applies if checked and only applies to on-call agreements per Section 1 or
agreements with Additional Services per Section 4.)
The schedule of performance shall be as provided in the approved Task Order, as detailed in Section 1
(Scope of Services) in the case of on-call Services, or as detailed in Section 4 in the case of Additional
Services, provided in all cases that the schedule of performance shall fall within the term as provided in
Section 2 (Term) of this Agreement.
WORK ORDER #2
Tasks 1-5 completed within 125 Weeks from the Notice to Proceed for Work Order 2, as detailed in the
Milestone Schedule of Performance attached to Work Order #2 (Amendment No.1).
WORK ORDER #3
Tasks 1-5 completed within 276 Weeks from the Notice to Proceed for Work Order 3, as detailed in
the Milestone Schedule of Performance attached to Work Order #3 (Amendment No.2).
WORK ORDER #1A
Tasks 1-3 completed within 37 Weeks from the Notice to Proceed for Work Order 1A, as detailed in
the Milestone Schedule of Performance attached to Work Order #1A (Amendment No.3).
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EXHIBIT “C”
COMPENSATION, AMENDMENT #3
(AMENDED, REPLACES PREVIOUS)
CITY agrees to compensate CONSULTANT for on-call, as-needed, time-limited project
support services performed in accordance with the terms and conditions of this Agreement,
and as set forth in a specific Task Order budget schedule. Compensation shall be calculated
based on the rate schedule attached as Exhibit C-1 up to the not to exceed budget amount
for each task set forth in a specific Task Order.
CITY’s Project Manager may approve in writing the transfer of budget amounts between any
of the tasks or categories within a specific Task Order, provided that the total compensation
for the Services, including any specified reimbursable expenses, and the total compensation
for Additional Services (if any, per Section 4 of the Agreement) do not exceed the amounts
set forth in Section 4 of this Agreement.
CONSULTANT agrees to complete all Services, any specified reimbursable expenses, and
Additional Services (if any, per Section 4), within this/these amount(s). Any work performed
or expenses incurred for which payment would result in a total exceeding the maximum
amount of compensation set forth in this Agreement shall be at no cost to the CITY.
REIMBURSABLE EXPENSES
CONSULTANT’S ordinary business expenses, such as administrative, overhead, administrative
support time/overtime, information systems, software and hardware, photocopying,
telecommunications (telephone, internet), in-house printing, insurance and other ordinary
business expenses, are included within the scope of payment for Services and are not
reimbursable expenses hereunder.
Reimbursable expenses, if any are specified as reimbursable under this section, will be
reimbursed at actual cost. The expenses (by type, e.g. travel) for which CONSULTANT will be
reimbursed are: NONE up to the not-to-exceed amount of $0.00.
WORK ORDER #2
Compensation as detailed in the Milestone Compensation Schedule attached to Work
Order #2., Not to Exceed:
Total Basic Services and Reimbursable Expenses $549,315
Additional Services (per Section 4) (Not to Exceed) $54,932
Maximum Total Compensation $604,247
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WORK ORDER #3
Compensation as detailed in the Milestone Compensation Schedule attached to Work
Order #3., Not to Exceed:
Total Basic Services and Reimbursable Expenses $7,488,201
Additional Services (per Section 4) (Not to Exceed) $748,820
Maximum Total Compensation $8,237,021
WORK ORDER #1A
Compensation as detailed in the Milestone Compensation Schedule attached to Work
Order #1A., Not to Exceed:
Total Basic Services and Reimbursable Expenses $246,700
Additional Services (per Section 4) (Not to Exceed) $141,838
Maximum Total Compensation $388,538
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