TO:
Honorable Mayor and Members of the City Council
THROUGH:
Bruce Moe, City Manager
FROM:
Erick Lee, Public Works Director
Katherine Doherty, City Engineer
Gilbert Gamboa, Principal Civil Engineer
SUBJECT:Title
Consideration of a Resolution Approving Amendment No. 2 to the Professional Services Agreement with Butier Engineering, Inc. for Additional Construction Management and Inspection Services in the Amount of $435,537 for the Peck Reservoir Replacement Project (Public Works Director Lee).
ADOPT RESOLUTION NO. 23-0006
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Recommended Action
RECOMMENDATION:
Staff recommends that City Council adopt Resolution No. 23-0006 approving Amendment No. 2 to the professional services agreement with Butier Engineering, Inc. for additional construction management and inspection services in the amount of $435,537 for the Peck Reservoir Replacement Project (Project).
Body
FISCAL IMPLICATIONS:
On August 18, 2020, City Council adopted a resolution awarding and approving a $2,555,229 agreement to Butier Engineering, Inc. for construction management and inspection services for the Project in the Water Fund. On August 16, 2022, City Council adopted a resolution approving Amendment No. 1 for additional services in the amount of $321,301. The additional services to be rendered under Amendment No. 2 will increase the agreement amount by $435,537 for a total not to exceed amount of $3,312,067. In order to provide the funding for this amendment, $435,537 of the contingency from the Project’s construction contract with Pacific Hydrotech Corporation will be disencumbered. There are no additional fiscal implications at this time.
BACKGROUND:
Peck Reservoir is situated at 1800 N. Peck Avenue, at the southeast corner of Peck Avenue and 19th Street. The current replacement project includes completely removing the degraded 60-year-old concrete reservoir, pumps, and ancillary facilities, and replacing the existing structure and equipment with a new 8-million gallon (MG) concrete reservoir, a pump station, operations, and electrical buildings, a groundwater filtration treatment system, and related ancillary facilities and site restoration. While the majority of the work occurs on the Peck Reservoir site, some work was required on adjacent streets, including the construction of new accessible sidewalks along 19th Street and Peck Avenue; new sewer and electrical connections on Peck Avenue; and new water and sewer pipeline trench work east on 18th Street, north on Herrin Avenue and east on 19th Street.
The City issued a Request for Proposal (RFP) in May 2020 for construction management and inspection services for the Project. In August 2020, City Council awarded a contract to Butier Engineering, Inc. (Butier) for these services. Ongoing key services provided by Butier on this project include:
• Full-time inspection of construction activities,
• Ongoing review and oversight of the construction schedule and budget,
• Responding to contractor questions, requests for information, and issues that arise in the field during construction,
• Coordinating between the contractor, City staff, and the Manhattan Beach Unified School District (MBUSD), and
• Ongoing public outreach during the construction duration.
DISCUSSION:
Construction of the Project began in October 2020 and is anticipated to reach substantial completion in February 2023, followed by completion of startup and commissioning activities at the end of March 2023. While the originally targeted construction completion date was the end of May 2022, various construction material procurement-related delays have negatively impacted this project. In addition, change order work in the normal course of construction also accounts for the extended project timeline. The primary supply chain delays were due to the procurement of the following major items:
• Three stainless steel knife gate valves
• Groundwater filtration treatment steel pressure vessel horizontal tanks
• Glass-fused steel bolted 30-foot tall vertical storage tank
• Programmable Logic Controller for Groundwater Treatment Facility
• Electrical Control Automation Variable Frequency Drives (VFD)
• Electrical switchgear
• Pre-cast concrete underground box vaults
• Ready mix concrete
Completed phases of the Project include:
• Demolition of the entire water reservoir, booster pump station, and site features
• Earthwork excavation and shoring
• Stockpiling and staging of excavated soil on the MBUSD Begg Sports Field
• Construction of a new reservoir concrete tank structure, testing, and filling
• Construction of a new booster pump station and electrical building
• Earthwork backfilling, final grading, and a new retaining wall around the reservoir
• Electrical control conduit duct bank substructures
• Onsite mainline yard piping and valve vaults
• Offsite pipeline replacements on Herrin Ave
• Chemical disinfection tanks and storage block wall building structure
• Operations control block wall building structure
• Ancillary equipment installation (emergency backup generator, ground level transformer, groundwater filtration pressure vessels, etc.)
• Onsite stormwater dry well capture devices
• Construction of a large vertical steel backwash reclamation storage tank
• Stockpile soil removal from MBUSD Begg Sports Field
• Replacement of half of MBUSD Begg Sports Field lighting with new LED fixtures
Remaining elements include, but are not limited to, MBUSD Begg Sports Field grass sod restoration and remaining lighting improvements; final inlet pipeline connections to the reservoir; reconnection of the outsource water supply provider, Metropolitan Water District (MWD) main pipeline; main electrical (power) service to the site; automation controls; onsite hardscape; offsite street pavement restoration, perimeter walls, fencing, and landscaping; perimeter sidewalk improvements; startup, testing, and commissioning; and punch list items. The priority is to bring the new booster pump station online first in order to commission the new reservoir into service with water supplied by MWD. Following that, the well water filtration treatment facility will be brought online to allow the City’s well water supply to offset the use of MWD water.
All work performed by the contractor is independently inspected by Butier to ensure quality work and compliance with the project plans and specifications. Butier’s original contract awarded in 2020 was developed based on a contract duration of 18 months. Butier has managed its resources to extend the construction management services through January 2023.
Butier’s Amendment No. 1 budgeted for additional construction management, geotechnical and testing services including special inspections required by the Division of State Architect (DSA) for the new sod grass turf installation and lighting improvements at the MBUSD Begg Sports Field per Project Contract Change Order No. 1. Change Order No. 1 negotiated the use of Begg Sports Field to stockpile and store the excavated soil from the Reservoir site in exchange for enhancements to the sports field.
Based on the most recent baseline schedule update, Amendment No. 2 is required to continue to provide field construction management, inspection, and associated project startup and close-out activities during the extended duration of the project. Lastly, Amendment No. 2 will provide post-construction operational support services in order to optimize the new groundwater filtration treatment process. These services were not contemplated under the original construction management budget.
PUBLIC OUTREACH:
Public community meetings and a public outreach meeting with MBUSD were previously held in 2019. Public meetings were held with the City’s Planning Commission and City Council during the design and environmental approval phases. The Project was also discussed at previous Capital Improvement Program budget meetings.
During the construction phase, public outreach includes construction notices, public information meeting(s), media coordination, traffic alerts, and updates on the City website.
ENVIRONMENTAL REVIEW:
Environmental review regarding the overall project (CEQA Mitigated Negative Declaration) was approved by Planning Commission on June 12, 2019.
LEGAL REVIEW:
The City Attorney has approved the amendment as to form and has reviewed this report and determined that no additional legal analysis is necessary.
ATTACHMENTS:
1. Resolution No. 23-0006
2. Amendment No. 2 - Butier Engineering, Inc.
3. Agreement and Amendment No. 1 - Butier Engineering, Inc.
4. Location Map