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CITY COUNCIL AGENDA REPORT
City of Anaheim
PUBLIC UTILITIES DEPARTMENT
DATE: FEBRUARY 27, 2024
FROM: PUBLIC UTILITIES DEPARTMENT
SUBJECT: FIRST AMENDMENT TO CONSTRUCTION MANAGEMENT
SERVICES AGREEMENT
ATTACHMENT (Y/N): YES ITEM # 17
GOVERNMENT CODE § 84308 APPLIES: YES
RECOMMENDATION:
That the City Council, by Motion:
1. Approve a first amendment (First Amendment) to the Construction Management Services Agreement between the City of Anaheim (City) and MWH Constructors, Inc. (Consultant Agreement) to provide for additional construction management and inspection services for the Groundwater Treatment Program (Program) in the amount of $2,275,863, with a 15% contingency for extra services to be applied to the total Contract Amount, as so amended; and
2. Authorize and direct the Public Utilities General Manager or designee to execute the First Amendment and other related documents and to take such actions as are necessary, required, or advisable to implement and administer the Consultant Agreement, as amended.
DISCUSSION:
On April 27, 2021, the Consultant Agreement was approved by City Council to provide construction management and inspection services for 14 groundwater treatment plants at nine (9) locations. Groundwater treatment is needed to remove synthetic chemicals known as per- and polyfluoroalkyl substances (PFAS) to meet water quality standards.
The Program was split into two separate design-build awards (Phase A and Phase B), totaling $125 million. Due to the extensive and technically complex nature of the projects, a professional consulting firm was selected in accordance with Council Policy
4.1, and MWH Constructors, Inc. was awarded the Consultant Agreement in the amount of $9.7 million.
Phase A is nearing completion, and Phase B is under construction, restoring half the groundwater capacity in Anaheim. This project is an important part of how Anaheim Public Utilities (APU) is able to keep rates affordable by accessing lower cost groundwater rather than relying heavily on imported water from the Colorado River.
The First Amendment is needed to address national supply chain issues that impacted manufacturers and caused delays in the delivery of key equipment. In particular, First Amendment to Construction Management Services Agreement February 27, 2024
electrical control systems that are used to operate the treatment plants were delayed beyond the control of the design-builder. Work has continued at the sites and the design-builder prioritized other activities. The original schedule was to complete the projects in Fall 2023, and the revised schedule is to complete the projects in Summer 2024, such that the wells and treatment systems are fully operational and have been accepted by APU. MWH has been instrumental in working closely with the design- builder, APU, and the Public Works Department to keep the multi-site project moving forward while also helping to address community needs of nearby residents and businesses.
The First Amendment is in the amount of $2,275,863, which increases the not-to- exceed amount to $12,006,663. A 15% contingency is included in the event of unforeseen issues, additional technical services, or other site considerations that require the consultant’s participation to help resolve on behalf of the City.
IMPACT ON BUDGET:
Sufficient funds are budgeted in APU’s Fiscal Year 2023/24 Water Capital Improvement Program budget from restricted Water Utility Enterprise funds.
Respectfully submitted,
Dukku Lee
Public Utilities General Manager
Attachments:
1. First Amendment to Construction Management Services Agreement
2. Construction Management Services Agreement