CITY COUNCIL STAFF REPORT
May 7, 2024 {{section.number}}j
AUTHORIZE THE CITY MANAGER TO EXECUTE A CONTRACT MODIFICATION WITH HARRIS AND ASSOCIATES IN THE AMOUNT OF $650,434 FOR CONSTRUCTION
MANAGEMENT SERVICES FOR THE PARKER PUMP STATION REPLACEMENT PROJECT
AND PROVIDE AUTHORITY TO THE CITY MANAGER TO EXECUTE FUTURE CONTRACT
MODIFICATIONS AND CHANGE ORDERS RELATED TO THE PROJECT WITHIN THE
COUNCIL APPROVED PROJECT BUDGET
RECOMMENDATION:
Authorize the City Manager to execute a contract modification with Harris and Associates in the amount of $650,434 for construction management services for the Parker Pump Station Replacement Project and provide authority to the City Manager to execute future contract modifications and change orders related to the project within the Council approved project budget.
BACKGROUND:
The Parker Pump Station Replacement Project includes the construction of a new sanitary sewer and storm water pump station and an above ground control building at 800 Coronado Avenue.
Once the new stations are commissioned, the existing Parker Pump Station will be demolished and a permanent emergency generator and a small, passive green space will be constructed.
On August 16, 2022, the City Council awarded a construction contract to J.R. Filanc Construction Company and several construction support contracts, including one to Harris and Associates for construction management services for $1,423,772. Construction commenced on January 17, 2023, and is ongoing. On August 15, 2023, the City Council appropriated additional funds which fully funded anticipated construction costs for the project.
ANALYSIS:
Over the course of construction to date, the project has experienced several challenges requiring unanticipated levels of construction management services and delays to construction activities.
These challenges have included issues with the shoring installation for the deep excavation and resulting settlement within and adjacent to the project site, significant weather impacts (including Tropical Storm Hilary) requiring extensive coordination between contractor and City staff and delays to the project, and other miscellaneous construction activities due to the complex nature of the work requiring unanticipated levels of oversight.
In addition to the challenges described above, and perhaps most notable due to impact on the critical path of the project schedule, is a significant delay in the procurement of certain electrical components for the new pump stations including the motor control center (MCC). Supply chain challenges with vendors for electrical components have continued into the construction phase.
Fabrication and delivery of the MCC has been estimated at 60 weeks. The contractor has explored several avenues to lessen the delay with no success in improving the lead times, including contacting other suppliers, inquiring if other similar equipment would have a lesser lead time and if the MCC could be expedited with a cost incentive. Installation of the MCC and other electrical components is a critical path item in the schedule and must be completed in order to commission the new station and decommission and demolish the existing station. Current estimates for the delivery of the MCC result in a four to five month period when no work will be able to occur on the project; during this time period the contractor has indicated they will likely demobilize from the site and return once the MCC has been delivered to complete the installation, commission the new pump stations and complete the project. As a result, the current schedule anticipates project completion in Summer 2025.
As previously stated, all the challenges described have resulted in unanticipated levels of construction management services. In addition, Harris and Associates has experienced some staffing changes in the project team with the current team consisting of additional personnel of differing classifications relative to the original management team. The recommended contract modification accounts for additional consulting staff necessary for the level of oversight required consisting of a Senior Construction Manager and a Construction Manager to support the project on a part time basis. Hours for overtime have also been included for the Construction Inspector to be used as needed based on construction activities. Additional hours have also been included to extend construction management services from August 2024 to November 2024 when the contractor anticipates they will demobilize from the site to wait for delivery of the MCC. An additional contract modification will likely be required to continue construction management services beyond this point in time; it is anticipated this contract modification will be considered once the project is closer to this phase in the schedule, the delivery dates and remaining project timeline is better defined, and the remaining effort needed for construction management can be more accurately determined.
The construction schedule extension along with the issues related to the shoring for the deep excavation will impact the budgets for other consultants providing construction support for this project. For example, the schedule extension will require the sampling and monitoring for the San Diego Regional Water Quality Control Board to continue until the project is completed; the shoring issues increased the site inspections and observations from the geotechnical consultant beyond what was originally anticipated. Therefore, staff is recommending the City Council grant authority for the City Manager to execute future contract modifications and/or change orders (potentially in excess of current signing authority) related to the project so long as the modifications/change orders remain within the allocated project budget.
FISCAL IMPACT:
The allocated construction budget of $26,842,249 includes a contingency of $2,236,000. A total of $682,900 has been expended on construction change orders, leaving an available balance of $1,553,100 of contingency funds. Therefore, no additional allocation is being requested at this time as contingency funds are available to fund the recommended contract modification. The total amount in the attached contract modification is $650,434 which also includes $129,434 in contingency funds which were authorized at the time of contract award.
ALTERNATIVE:
The City Council may elect to reject the contract modification, although this would result in a lack of construction management support to complete the project.
CALIFORNIA ENVIRONMENTAL QUALITY ACT:
The Parker Pump Station Replacement project was found categorically exempt per California Environmental Quality Act (CEQA) Guidelines; Sections: 15301, 15302 (Class 2), 15316 (Class 16) and 15378(a)(1).
PUBLIC NOTICE:
No notice required.
ATTACHMENTS:
1. Harris and Associates Contract Modification No. 1
Submitted By: Public Services and Engineering Department / Katie Odiorne