REPORT TO THE CITY COUNCIL
February 15, 2018
FROM: THOMAS C. ESQUEDA, Director
Department of Public Utilities
THROUGH: MICHAEL CARBAJAL, Planning Manager
Department of Public Utilities - Utilities Planning & Engineering
BY: GLENN A. KNAPP, PE, Professional Engineer
Department of Public Utilities - Utilities Planning & Engineering
SUBJECT
Title
Approve Sixth Amendment to the Professional Engineering Consulting Services Agreement with Carollo Engineers, Inc., in the amount of $76,500 to provide additional design services for the City of Fresno’s Kings River Pipeline project (Council District 5 & Fresno County)
Body
RECOMMENDATIONS
Staff recommends that City Council approve the Sixth Amendment to the Professional Engineering Consultant Services Agreement with Carollo Engineers, Inc., in the amount by $76,500 to provide additional design services for the City of Fresno’s Kings River Pipeline project and authorize the Director of Public Utilities, or designee, to sign the Amendment on behalf of the City of Fresno.
EXECUTIVE SUMMARY
This Sixth Amendment to the Professional Engineering Consultant Services Agreement with Carollo Engineers, Inc. (Carollo) provides for additional design services related to development and construction of a cathodic control system for long-term corrosion control of the Kings River Pipeline. Amendment design services will also provide for installation of an electrical panel enclosure at the Kings River Pipeline diversion structure for protection of system controls and water quality monitoring equipment from vandalism and environmental degradation. Costs associated with design efforts for installation of the corrosion control system will be reimbursed to the City of Fresno (City) by the project general contractor (Garney Pacific Inc.). The total value of the Sixth Amendment is $76,500 for a total fee amount of $19,620,727. Design efforts related to installation of the electrical panel enclosure will be funded through a State Revolving Fund (SRF) Low Interest Loan from the State Water Resources Control Board (SWRCB) previously accepted by the City Council as part of the Kings River Pipeline construction project.
BACKGROUND
On July 23, 2012, the Department of Public Utilities (DPU) initiated a consultant selection process in accordance with Fresno Municipal Code Chapter 4, Article 1, and Administrative Order 6-19, to select a professional engineering consulting firm to provide planning, permitting, design, and construction phase services for the Southeast Surface Water Treatment Facility (SESWTF) and Raw Water Conveyance System. To initiate the selection process, DPU notified 12 consulting firms directly, and advertised in The Business Journal on July 23, 2012, that the City was soliciting Consultant Statement of Qualifications for the SESWTF Project. DPU received four Statements of Qualifications in response to the solicitation. After reviewing the Statements of Qualifications, DPU short-listed three firms for interviews and upon completion of the interview process, Carollo was selected as being the most qualified to meet the City's needs for the Project. On June 13, 2013, the Council approved a Consultant Services Agreement with Carollo for a total fee of $9,991,000, which included a Base Fee of $9,149,600 and Design Contingency Fund of $841,400.
Thereafter, three additional Amendments were approved by Council on July 21, 2014, August 24, 2014, and August 20, 2015, respectively, for additional electrical substation design, additional consultant services for design of the Kings River Pipeline, and for additional agency coordination and surveying to complete the project design portion of the project. Associated costs for these three amendments were funded utilizing project contingencies resulting in a total Consultant fee of $9,445,637 and a remaining design contingency of $545,363.
On November 19, 2015, Council approved the Fourth Amendment to the Professional Engineering Consultant Services Agreement with Carollo which provided project Construction Management (CM) services during construction for $9,442,415. Application of remaining design contingencies ($545,363) reduced the value of the Fourth Amendment to $8,897,052 for a total fee amount of $18,888,052 and a remaining contingency of $0.
The Fifth Amendment with Carollo was approved by Council on May 12, 2016 and provided compensation in the amount of $656,175 for additional design services associated with Value Engineering of the Treated Water Reservoir, Supplemental Services Tasks for the Facility, Services During Construction, and Supplemental Services Tasks for the Kings River Pipeline portion of the Project. This resulted in an adjusted total Consultant maximum fee of $19,544,227 consisting of $19,284,227 in lump sum fee and $260,000 in cost reimbursable not to exceed budget.
This Sixth Amendment to the Consultant Services Agreement includes additional design services related to development and construction of a cathodic control system for long-term corrosion control of the Kings River Pipeline ($63,000), and installation of an electrical panel enclosure at the Kings River Pipeline diversion structure for protection of system controls and water quality monitoring equipment from vandalism and environmental degradation ($13,500). Amendment design costs for installation of a pipeline corrosion control system are related to pipeline material coating issues with the general contractors pipeline manufacture, and will be reimbursed to the City by the general contractor. The value of this Sixth Amendment is $76,500 and will result in an adjusted total Consultant maximum fee of $19,620,727.
This Sixth Amendment has been approved as to form by the City Attorney's Office, including Consultant maintenance of valid Certificates of Insurance for the project.
ENVIRONMENTAL FINDINGS
Adoption of this Sixth Amendment is not a “project” for the purposes of California Environmental Quality Act (CEQA), as it is a funding mechanism or other government fiscal activity, and does not involve commitment to any specific project which may result in a potentially significant physical impact on the environment as contemplated by CEQA Guidelines Section 15378(b).
LOCAL PREFERENCE
Local preference was not implemented because this action pertains to an amendment of an existing service contract.
FISCAL IMPACT
There is no impact to the General Fund. This Sixth Amendment will utilize funding through the SWRCB State Revolving Fund Low Interest Loan Program. Appropriations are available in the Water Division’s Fiscal Year 2018 Capital Improvement Program amended budget within the State Low Interest Loan Kings River Pipeline Fund (40161). The loan repayments were included in the water rate model used to create the five-year utility rate plan that was adopted by the City Council on February 26, 2015.
Attachment:
Sixth Amendment to Professional Engineering Consultant Services Agreement