ITEM 4. 17
CITY MANAGER' S REPORT
OCTOBER 14, 2024 CITY COUNCIL REGULAR MEETING
ITEM: APPROVE AMENDMENT NO. 4 WITH PACE, INC. AND
APPROVE BUDGET AMENDMENT FOR CTF PHASE 3
EXPANSION, CIP WW 22- 38
RECOMMENDATION: Adopt Resolution to Approve Amendment No. 4 with Pacific Advanced Civil Engineering, Inc. and Approve
Budget Amendment for CTF Phase 3 Expansion, CIP
WW 22- 38
SUMMARY:
On November 8, 2021, City Council approved a Professional Services Agreement PSA) with Pacific Advanced Civil Engineering ( PACE) for design of the Consolidated Treatment Facility ( CTF) Phase 3 Expansion, CIP WW 22- 38 (Project). City Council awarded a contract for the construction of the Project on August 12, 2024, and construction began on September 5, 2024.
Construction Administration Services ( Construction Services) from the design engineer, PACE, are needed to resolve issues encountered during construction that can only be determined by the design engineer. Construction Services on large or complex projects like the CTF Phase 3 Expansion are typical, and essential to successful, timely and cost- effective construction. Staff requested and received from PACE a proposal to provide the Construction Services on an hourly basis for a cost not to exceed $ 375, 000. Amendment 4 also includes emergency modifications to the dechlorination analyzers which were required to comply with the City' s Waste
Discharge Requirements ( WDRs) from the State Water Resources Control Boad.
PACE' ssubcontractor completed this work for $13, 495. PACE has provided an invoice for these services. Therefore, staff requests City Council approve Amendment No. 4 to PACE' sPSA ( Attachment B) for a cost of $388, 495to fund the Construction Support Services and the modifications to the dechlorination analyzers.
The requested budget amendment includes reimbursement for CTF Phase 1 oversizing to the Developer Sewer Consortium for a cost of $163,21, costs for rental equipment in support of the Project, the construction of the CTF service driveway Costs for rental equipment, the CTF Service Driveway construction and other expenses totaling $ 57, 949.
On August 12, 2024, City Council awarded the construction contract for the CTF Phase 3 Expansion pursuant to Resolution 24- 5620. The requested budget amendment to transfer $ 5,00, 000 from the Sewer Connection Fee Fund ( 6030) to the Project CIP fund ( 6090) was $ 1, 000,00 less than necessary to cover the 10% construction contingency approved by City Council. Therefore, staff request a corrective budget CITY MANAGER' S REPORT PAGE 2
OCTOBER 14, 2024 CITY COUNCIL REGULAR MEETING
APPROVE AMENDMENT NO. 4 WITH PACE, INC. AND APPROVE BUDGET AMENDMENT FOR CTF PHASE 3 EXPANSION, CIP WW 22- 38
amendment of $ 1, 000,00 to provide the correct funding for the Project' s construction contingency.
Sufficient funds for the above expenses were not included in the adopted Fiscal Year 24/5 budget for CTF Phase 3 Expansion, CIP WW 22- 38; therefore, staff requests a budget amendment of $ 1, 610, 000 to fund PACE' sAmendment No. 4 and other costs as described above.
BACKGROUND:
The dechlorination analyzers and samplers at the CTF were installed during the construction of the Dechlorination Facility, one of two components of the Surface Water Discharge Project, CIP WW 20- 17. During initial operation, staff encountered samples of insufficient clarity, owing to the insufficient pressure provided by the gravity flow to the samplers. PACE determined that booster pumps and other equipment would need to be installed on an emergency basis to boost the pressure into the samplers high enough to provide samples of adequate quality for the chlorine analyzers to properly chlorinate the effluent. PACE' scost for their subcontractor to perform this work was $ 13, 495.
REASON FOR RECOMMENDATION:
Construction Support Services from PACE are needed to resolve issues encountered during construction that can only be determined by the design engineer. Construction Support Services on large or complex projects like the CTF Phase 3 Expansion are typical, and essential to successful, timely and cost- effective construction.
The modifications to the dechlorination samplers were essential to the accurate performance of the analyzers, and hence the chlorine injection system.
FISCAL IMPACT:
Sufficient funds for the above costs were not included in the adopted Fiscal Year 24/5 budget for CTF Phase 3 Expansion, CIP WW 22- 38; therefore, staff request a budget amendment as detailed below:
Increase Transfer Out
6030- 9900-90- 9010 $ 1, 610, 000
Increase Transfer In
6090- 900- 393- 0000 WW 22- 38 $ 1, 610, 000
Increase Appropriation
6090- 8000- 420- 10 WW 22- 38 $ 1, 610, 000
CITY MANAGER' S REPORT PAGE 3
OCTOBER 14, 2024 CITY COUNCIL REGULAR MEETING
APPROVE AMENDMENT NO. 4 WITH PACE, INC. AND APPROVE BUDGET AMENDMENT FOR CTF PHASE 3 EXPANSION, CIP WW 22- 38
ATTACHMENTS:
A. Resolution Approving Amendment No. 4 with Pacific Advanced Civil Engineering, Inc. for Construction Administrative Services and Emergency Dechlorination Modifications for CTF Phase 3 Expansion - CIP WW 22- 38 B. Amendment No. 4 to the Professional Services Agreement with Pacific Advanced Civil Engineering, Inc. for Construction Administrative Services and Emergency Dechlorination Modifications for CTF Phase 3 Expansion - CIP WW 22- 38
C. City of Lathrop Resolution 24- 5680
CITY MANAGER' S REPORT PAGE 4
OCTOBER 14, 2024 CITY COUNCIL REGULAR MEETING
APPROVE AMENDMENT NO. 4 WITH PACE, INC. AND APPROVE BUDGET AMENDMENT FOR CTF PHASE 3 EXPANSION, CIP WW 22- 38
APPROVALS:
6/. ge.. weizz/( 2,_4
Steven Hollenbeak Date
Assistant Engineer
io
Ken Reed Date
Senior Construction Manager
Brad ylor
City Engineer
Cari James
Finance Director
Michael King
Assistant City Manager
I o / g/ - 02v- 1
Date
Ioi thozy
Date
0 • 8 • ZoZY
Date
Salvador Navarrete Date
City Attorney
Stephen J. Salvatore Date
City Manager
RESOLUTION NO. 24-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP TO APPROVE AMENDMENT NO. 4 WITH PACE, INC. AND APPROVE BUDGET AMENDMENT FOR CTF PHASE 3 EXPANSION, CIP WW 22- 38
WHEREAS, on November 8, 2021, City Council approved a Professional Services Agreement ( PSA) with Pacific Advanced Civil Engineering ( PACE) for design of the Consolidated Treatment Facility ( CTF) Phase 3 Expansion, CIP WW 22- 38 Project); and
WHEREAS, pursuant to Resolution 24- 5620, City Council awarded a contract for the construction of the Project to GSE Construction, Inc. (GSE) and approved a requested budget amendment to transfer $ 5,00, 000from the Sewer Connection Fee Fund ( 6030) to the Project CIP fund ( 6090) that was $ 1, 000,00 Tess than necessary to cover the 10% construction contingency approved by City Council; and WHEREAS, the City will soon need additional construction support services from PACE for the Project; and
WHEREAS, City staff requested and received from PACE a scope of work to provide Construction Administrative Services and an invoice for completed emergency modifications to the dechlorination analyzers for a total cost of $ 388, 495; and
WHEREAS, staff requests City Council approve Amendment No. 4 with PACE in the amount of $ 388, 495; and
WHEREAS, staff requests City Council approve a budget amendment for CIP WW 22- 38 in the amount of $ 1, 610, 000 as detailed below to provide sufficient funds to pay for the expenses identified in the City Manager' sReport that accompanied this Resolution
Increase Transfer Out
6030- 9900-90- 9010 $ 1, 610, 000
Increase Transfer In
6090- 900- 393- 0000 WW 22- 38 $ 1, 610, 000
Increase Appropriation
6090- 8000- 420- 10 WW 22- 38 $ 1, 610, 000
and
WHEREAS, staff requests City Council approve a corrective budget amendment of $ 1, 000,00 to provide the correct
construction
funding for the Project' s
contingency.
NOW THEREFORE, BE IT RESOLVED, that the City Council of the City of Lathrop does hereby approve Amendment No. 4 to PACE' s PSA dated November 8, 2021 for a cost not to exceed $ 388, 495 to provide Construction Services and pay for emergency modifications to the dechlorination system; and BE IT FURTHER RESOLVED, that the City Council of the City of Lathrop does hereby approve a budget amendment in the amount of $ 1, 610, 000 to have enough funds to pay for Amendment No. 4 to PACE' s PSA and the expenses identified in the City Manager' sReport that accompanied this resolution; and BE IT FURTHER RESOLVED, that the City Council of the City of Lathrop does hereby approve the transfer of $ 1, 000,00 of the requested budget amendment to the Project' sconstruction contingency.
PASSED AND ADOPTED by the City Council of the City of Lathrop this 14th day of October 2024, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Sonny Dhaliwal, Mayor
ATTEST: APPROVED AS TO FORM:
Teresa Vargas, City Clerk Salvador Navarrete, City Attorney ATTACHMENT " \ "
AMENDMENT NO. 4
TO THE PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF LATHROP AND PACIFIC ADVANCED CIVIL ENGINEERING, INC. DATED NOVEMBER 8, 2021
TO PROVIDE CONSTRUCTION ADMINISTRATIVE SERVICES AND
MODIFICATIONS TO DECHLORINATION SYSTEM FOR THE
CTF PHASE 3 EXPANSION — CIP WW 22- 38
THIS CONTRACT AMENDMENT ( hereinafter " AMENDMENT NO. 4") to the agreement between Pacific Advanced Civil Engineering, Inc. and the City of Lathrop dated November 8, 2021, (hereinafter " AGREEMENT") dated for convenience this day of October 2024, is by and between the City of Lathrop, a California municipal corporation (" CITY") and Pacific Advanced Civil Engineering, Inc. ("CONSULTANT");
RECITALS:
WHEREAS, CONSULTANT is specially trained, experienced, and competent to perform Construction Administrative Services, which are required by this agreement; and WHEREAS, CITY selected the CONSULTANT pursuant to said qualifications; and WHEREAS, on November 8, 2021, by Resolution 21- 4978, CONSULTANT and CITY entered into an AGREEMENT to provide Professional Engineering Consulting Services for the Lathrop Consolidated Treatment Facility Phase 3 Expansion — CIP WW 22- 38, in the amount not to exceed $ 1, 047, 280; and
WHEREAS, on July 10, 2023, CONSULTANT and CITY entered into Amendment No. 1 to provide Additional CTF Phasing Master Planning to the Lathrop CTF Phase 3 Expansion, CIP WW 22- 38; and
WHEREAS, on June 20, 2024, CONSULTANT and CITY entered into Amendment No. 2 to provide Final Design Updates Based on Changes to Field Conditions for the Lathrop CTF Phase 3 Expansion, CIP WW 22- 38; and
WHEREAS, on August 8, 2024, CONSULTANT and CITY entered into Amendment No. 3 to provide On -Call Technical Assistance for Operations for the Lathrop CTF Phase 3 Expansion, CIP WW 22- 38; and
WHEREAS, CONSULTANT has provided CITY with a scope of work attached hereto to provide Construction Administrative Services and an invoice for completed emergency modifications to the dechlorination analyzers as Exhibit " A" for Amendment No. 4 in support to the Lathrop CTF Phase 3 Expansion, CIP WW 22- 38; and
WHEREAS, CONSULTANT is willing to render such Construction Administrative Services, as hereinafter defined, on the following terms and conditions.
NOW, THEREFORE, CONSULTANT and the CITY agree as follows:
CITY OF LATHROP - PACIFIC ADVANCED CIVIL ENGINEERING, INC.
AMENDMENT NO. 4 TO THE AGREEMENT DATED NOVEMBER 8, 2021 FOR CONSTRUCTION ADMINISTRATIVE SERVICES FOR THE CTF PHASE 3 EXPANSION - CIP WW 22- 38 AMENDMENT NO. 4 TO AGREEMENT
1) Scope of Service. Section (1) of the AGREEMENT is hereby amended to add the following:
CONSULTANT agrees to perform Construction Administrative Services in accordance with the scope of work and fee proposal provided by CONSULTANT, attached hereto as Exhibit " A" in addition to the scope of work in the original AGREEMENT dated November 8, 2021 and Amendment No. 1 dated July 10, 2023, and Amendment No. 2 dated June 20, 2024, and Amendment No. 3 dated August 8, 2024. CONSULTANT agrees to diligently perform these services in accordance with the upmost standards of its profession and to CITY' Ssatisfaction.
2) Compensation. Section ( 2) of the AGREEMENT for Consulting Services is hereby amended as follows:
City hereby agrees to pay CONSULTANT an additional cost of $ 388, 495. 00 for the services set forth in Exhibit "A" of this AMENDMENT NO. 4, with a total sum not to exceed of $ 1, 602,85. 00 ($1, 047, 280. 0 for the original AGREEMENT, $ 72, 020 for AMENDMENT NO. 1, $62, 340 for AMENDMENT NO. 2, and $ 32, 550 for AMENDMENT NO. 3, and $ 388, 494. 55 for AMENDMENT NO. 4). CONSULTANT shall be paid within thirty ( 30) days of receipt of billings containing all information contained in Paragraph 5 of the original AGREEMENT. Compensation for any task must be equal to or less than the percentage of task complete. In no event shall CONSULTANT be entitled to compensation for work not included in the original scope of work and this AMENDMENT unless a written change order or authorization describing the extra work and payment terms has been executed by CITY' SAuthorized Representative prior to the commencement of the work. 3) Effective Date and Term
The effective date of AMENDMENT NO. 4 is October , 2024, and it shall terminate no later than June 30, 2026. All other terms of the original AGREEMENT shall remain in full force and effect.
4) Applicability to Original Consultant AGREEMENT
All terms and conditions set forth in the AGREEMENT dated November 8, 2021 are still in effect and are incorporated by reference herein and said AGREEMENT is incorporated by reference herein.
5) Signatures
The individuals executing this AMENDMENT NO. 4 represent and warrant that they have the right, power, legal capacity, and authority to enter into and to execute this AMENDMENT NO. 4 on behalf of the respective legal entities of the CONSULTANT and the CITY. This agreement shall inure to the benefit of and be binding upon the parties hereto and their respective successors and assigns.
CITY OF LATHROP — PACIFIC ADVANCED CIVIL ENGINEERING, INC.
AMENDMENT NO. 4 TO THE AGREEMENT DATED NOVEMBER 8, 2021 FOR CONSTRUCTION ADMINISTRATIVE SERVICES FOR THE CTF PHASE 3 EXPANSION — CIP WW 22- 38 Approved as to Form:
Recommended for Approval:
Approved by:
Consultant:
City of Lathrop
City Attorney
v - 7 -?o2 -
Salvador Navarrete Date
City of Lathrop
Assistant City Manager
Michael King Date
City of Lathrop
390 Towne Centre Drive
Lathrop, CA 95330
Stephen J. Salvatore Date
City Manager
Pacific Advanced Civil Engineering, Inc.
17520 Newhope Street, Suite 200
Fountain Valley, CA 92708
Federal ID # 33- 0265538
Lathrop Business License # 20319
Signature Date
Print Name and Title
CITY OF LATHROP - PACIFIC ADVANCED CIVIL ENGINEERING, INC.
AMENDMENT NO. 4 TO THE AGREEMENT DATED NOVEMBER 8, 2021 FOR CONSTRUCTION ADMINISTRATIVE SERVICES FOR THE CTF PHASE 3 EXPANSION - CIP WW 22- 38 Approved as to Form:
Recommended for Approval:
Approved by:
Consultant:
City of Lathrop
City Attorney
Salvador Navarrete
City of Lathrop
Assistant City Manager
Date
Michael King
City of Lathrop
390 Towne Centre Drive
Lathrop, CA 95330
Date
Stephen J. Salvatore Date
City Manager
Pacific Advanced Civil Engineering, Inc.
17520 Newhope Street, Suite 200
Fountain Valley, CA 92708
Federal ID # 33- 0265538
Lathrop Business License # 20319
Signature Date
Print Name and Title
PACE Advanced Water Engineering
AUTHORIZATION FOR CHANGE ORDER
TO: City of Lathrop— Public Works Dept. ATTN: Ken Reed
390 Towne Centre Drive DATE: August 14, 2024
Lathrop, CA 95330 PROJECT: A713 - Lathrop CTF WRF
209) 941- 7499 C. O. AUTH #: 27B — Const Admin Services — Rev. 1 The following was not included in the original contract. We are requesting authorization for additional budget.
Description of Services:
This scope of work describes the services to be rendered by PACE for construction phase support and startup services associated for the City of Lathrop Phase 3 Expansion of the Lathrop Consolidated Treatment Facility. Each task below describes the work to be completed for the City of Lathrop. PACE will provide services to assist the City and their construction manager in administering the contract for construction and responding to design and technical submittals.
Task 75. 1- Project Management for Construction Phase
Project Management: PACE shall provide project management services throughout the Project, including management of the work, monthly status reporting, document control, record keeping, and project budget and schedule tracking. PACE' sbilling statements will be submitted to the City on a monthly basis, and shall be based upon PACE' s standard invoicing format.
Document Management System and Procedures: At the request of the City, PACE will utilize ProCore software management system or will maintain hard copy records, suitably organized, of all relevant documentation.
Communications: PACE will implement and maintain regular communications with the City and their construction manager during the construction. PACE will receive and maintain documentation for all communications from the City and their construction manager. PACE will not communicate directly with the Contractor.
Construction Contract Administration: PACE is not responsible for administration of the construction contract including permits, bonds, insurance, and payments to the contractor, logging submittals and other correspondence, preparing or responding to change orders. PACE will assist the City with interpretations of the construction contract documents as requested. 17520 Newhope Street, Suite 200 1 Fountain Valley. CA 92708 P: (714) 481- 7300 F: (714) 481. 7299 1 www. pacewater. com Ken Reed - City of Lathrop — Public Works Dept August 14, 2024 Phase 3 Expansion of the Lathrop CTF/ A713
Task 75. 2 - Meetings, Inspections, Calls for Construction Phase Pre -Construction Conference: Two representatives of PACE shall attend one pre -construction conference with the Contractor and construction manager.
Project Site Meetings: PACE will attend up to 20 meetings with the City and their construction manager.
Progress Conference Calls: PACE will attend by conference call minimum of monthly meetings with the City in addition to in person meetings as described herein.
Design Team Visits: PACE will coordinate up to 12 site visits by design team members to review progress and quality of the work. The visits shall observe the general quality of the work at the time of the visit and review any specific items of work that are brought to the attention of the design team members by the Authority.
Inspections and Witness Testing: PACE is not responsible for inspections or witness testing of equipment or general construction activities.
Task 75. 3 - Shop Drawings, Submittals, RFIs for Construction Phase Shop Drawings and Submittals: PACE' s design team will review up to 150 shop drawings and submittals for general conformance with the design concept and general compliance with the requirements of the contract for construction. It is not assumed that PACE will review every submittal, but instead will review only shop drawings and submittals that require technical design team review. Shop drawings and submittal review shall not relieve the Contractor from its responsibility for performance in accordance with the contract for construction, nor is such review a guarantee that the work covered by the shop drawings and submittals is free of errors, inconsistencies or omissions.
Contractor Clarifications and Requests for Information ( RFIs): PACE will review up to 150 of the Contractor' srequests for information or clarification of the contract for construction.
Task 75. 4 - Post Construction Checkout, Startup, Training Services Construction Checkout: PACE will provide a site visit for system checkout, site walk and punch list, followed by letter for substantial completion to the contractor.
Startup Services: PACE will provide 120 man hours of on -site startup support services during clean water testing and transfer of process water to the system.
Operator Training: PACE will provide a
training to the operations staff for the general sequence of operation for a period of two days.
PACE
Ken Reed - City of Lathrop — Public Works Dept August 14, 2024 Phase 3 Expansion of the Lathrop CTF/ A713
Project Assumptions:
The following assumptions were used when determining the compensation. These assumptions are in addition to the scope and additional services set forth in the foregoing scope of work.
1. The construction period will last less than or equal to 18 months.
2. The project will be constructed under one general contract for construction.
3. PACE will not be onsite with the exception of meetings and site visits assumed in this scope of work.
4. It is not assumed that PACE will attend regular construction progress meetings with the contractor, with the exception of conference calls and meetings assumed in this scope of work.
5. The assumed number of shop drawings and submittal reviews is presented herein.
6. Any labor and expenses required to address unforeseen considerations or additional construction requested by the Contractor would be additional costs.
7. The City will give prompt notice to PACE whenever City observes or becomes aware of any development that affects the scope or timing of PACE' s services, or of any defect in the work of PACE or the Contractor.
8. The City shall cause all agreements with the Contractor to be consistent with PACE' s Agreement.
Amount of Compensation:
This Request - Change Order # 27B: $ 375, 000
Estimated By: c ,
Andy Kom r MS, PE — PACE
AGREED TO AND ACCEPTED BY:
8/ 14/ 2024
Date
By
City of Lathrop Date
PACE
PACE Advanced Water Engineering
AUTHORIZATION FOR CHANGE ORDER
TO: City of Lathrop— Public Works Dept. ATTN: Ken Reed
390 Towne Centre Drive DATE: July 24, 2024
Lathrop, CA 95330 PROJECT: A713 - Lathrop CTF WRF
209) 941- 7499 C. O. AUTH #: 29 — Arnaudo Emergency Repair Svcs The following was not included in the original contract. We are requesting authorization for additional budget.
Task 78: Arnaudo Emergency Repair Services
PACE required emergency services from Arnaudo Construction to extend the section lines in each of the dechlorination chambers. Repairs were performed on a broken mixer, analyzers that were not flowing/ reading, new sample pumps which had failed, and mixed sample which required re -plumbing.
Amount of Compensation:
Arnaudo has completed the work outlined herein for the time and expense (T&E) amount of $ 13, 494. 55.
This Request - Change Order # 29: S 13, 494. 55
Estimated By: / 7/ 24/024
Andy mor, M , PE — PACE Date
AGREED TO AND ACCEPTED BY:
By
City of Lathrop Date
17520 Newhope Street, Suite 200 ! Fountain Valley. CA 92708 P: (714) 481. 7300 F: (714) 481- 7299 1 www. pacewater. com ATTACHMENT" CJ "
RESOLUTION NO. 24- 5620
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP AWARDING A CONSTRUCTION CONTRACT TO GSE CONSTRUCTION COMPANY, INC. FOR CTF PHASE 3 EXPANSION, CIP WW 22- 38, APPROVING BUDGET AMENDMENT
AND APPROVING UPDATED FUNDING AGREEMENT WITH RIVER ISLANDS
DEVELOPMENT, LLC
WHEREAS, on November 8, 2021, City Council approved the creation of Consolidated Treatment Facility ( CTF) Phase 3 Expansion, Capital Improvement Project ( CIP) WW 22- 38 (Project) to expand the treatment capacity of the existing wastewater treatment plant from 2. 5 Million Gallons per Day ( MGD) to 5. 0 MGD; and WHEREAS, on June 10, 2024, the City solicited bids for the construction of the Project pursuant to PCC 20160 and LMC 2. 36. 060; and WHEREAS, a total of seven ( 7) bids were received and opened by the City Clerk on August 6, 2024; and
WHEREAS, upon review and evaluation of the bids, the responsible bidder with the lowest responsive Base Bid for the Project was determined to be GSE Construction Company, Inc. (GSE Construction) with a Base Bid of $39,48, 400; and WHEREAS, staff requests City Council award a construction contract to GSE Construction in the amount of $ 39,48, 400 for the construction of the Project contemplated by the Base Bid; and
WHEREAS, staff also requests Council authorize a 10% construction contingency in the amount of $ 3, 934, 840 and authorize staff to spend the contingency as necessary to achieve the goals of the Project for a total construction cost not to exceed $ 42, 283,40; and
WHEREAS, pursuant to the Design and Construction Funding Agreement By and Between the City of Lathrop and River Islands Development, LLC ( River Islands) Related to the Phase 3 Expansion of the Existing Lathrop Consolidated Treatment Facility executed on February 12, 2024 ( Funding Agreement), River Islands will pay for 80% of the total project construction and construction contingency cost, which amounts to $ 34, 626, 592 based on the Project' stotal construction cost; and WHEREAS, the Funding Agreement' s payment terms for River Islands' 80% share of the construction contract plus 10% contingency cost were based upon an estimated value of $27, 500, 000; and
WHEREAS, the lowest bid for the construction of the Project submitted by GSE plus 10% contingency amounts to $ 42, 283,40, which is over 50% higher than the Funding Agreement' sestimated construction cost; and
Resolution No. 24- 5620
WHEREAS, staff request City Council approve an updated Funding Agreement changing the payment terms for River Islands to include an increase in the total contribution from $ 22, 000,00 to $ 34, 626, 592, and adjustment of the initial payment to $ 11, 773, 100, the six quarterly payments to $ 3, 809, 000, and the payment guarantee value to $ 10, 226, 900; and
WHEREAS, sufficient funds were not allocated to CIP WW 22- 38 in the adopted Fiscal Year 2024/5 budget for the City' s20% share of the construction cost of the Project; therefore, a budget amendment transferring $ 5,00, 000 from the Sewer Connection Fee Fund ( 6030) and $ 13, 733, 240 from the Developer Fund 2710) to the CIP Project Fund is requested as detailed below:
Increase Revenue
2710- 8000- 372- 0100 $ 13, 733, 240
Increase Transfer Out
6030- 9900-90- 9010 $ 5,00, 000
2710- 9900-90- 9010 $ 13, 733, 240
Increase Transfer In
6090- 900- 393- 0000 WW 22- 38 $ 19, 233,40
Increase Appropriation
6090- 8000- 420- 10 WW 22- 38 $ 19, 233,40
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Lathrop hereby awards a construction contract for $39,48, 400 to GSE Construction Company, Inc. for the construction of CTF Phase 3 Expansion, CIP WW 22- 38; and BE IT FURTHER RESOLVED, that the City Council of the City of Lathrop does hereby approve a 10% construction contingency of $ 3, 934, 840 for the construction of the Project and authorizes staff to spend up to this amount as necessary to accomplish the goals of the Project; and
BE IT FURTHER RESOLVED, that the City Council of the City of Lathrop does hereby approve a budget amendment transferring $ 5,00, 000 from the Sewer Connection Fee Fund ( 6030) and $ 13, 733, 240 from the Developer Fund ( 2710) to the CIP Project Fund; and
BE IT FURTHER RESOLVED, that the City Council of the City of Lathrop does hereby approve the updated Design and Construction Funding Agreement By and Between the City of Lathrop and River Islands Development, LLC ( River Islands) Related to the Phase 3 Expansion of the Existing Lathrop Consolidated Treatment Facility to replace the original Funding Agreement executed on February 12, 2024.
Resolution No. 24- 5620
The foregoing resolution was passed and adopted this 12th day of August 2024, by the following vote of the City Council, to wit:
AYES: Akinjo, Torres - O' Callaghan, and Dhaliwal
NOES: None
ABSENT: None
ABSTAIN: Dialio and Lazard
ATTEST:
Tere argas, City Clerk
Sonny Dhaliwal, Mayor
APPROVED AS TO FORM:
Salvador Navarrete, City Attorney
Resolution No. 24- 5620