CITY OF PACIFICA
COUNCIL AGENDA SUMMARY REPORT
4/24/2023
1 SUBJECT:
Approval of Amendment No. 2 to the Construction Management and Inspection Agreement between the City of Pacifica and GHD, Inc. and Notice of Completion for the Milagra Creek Outfall Repair Project.
RECOMMENDED ACTION:
Adopt the Resolution entitled “A Resolution of the City Council of the City of Pacifica Approving Amendment No. 2 to the Construction Management and Inspection Agreement between the City of Pacifica and GHD, Inc. in the amount of $44,000.00; Accepting completion and directing the City Manager to file the Notice of Completion for the Milagra Creek Outfall Repair Project; and Authorize the City Manager to execute all documents and release the retention funds to the contractor.”
STAFF CONTACT:
Raymund Donguines, P.E., Senior Civil Engineer
(650) 738-3768
[email protected]
Roland Yip, P.E., DPW Deputy Director
(650) 738-3771
[email protected]
Lisa Petersen, P.E., DPW Director
(650) 738-3770
[email protected]
BACKGROUND/DISCUSSION:
The Milagra Creek Outfall serves as the ultimate discharge point of stormwater to the Pacific Ocean from the Milagra Drainage Basin as well as a large section of Highway 1. Exceptionally high tides and swells combined with powerful waves, brought about by the 2016 El Niño storms, caused failure of the bluff supporting the Milagra Creek Outfall and washed out the rock revetment protecting it. The loss of support and protection caused severe damage to the large concrete headwall and destabilized the associated 8-foot diameter reinforced concrete pipe.
On April 27, 2020, City Council awarded the construction contract to the low bidder Michael Roberts Construction, Inc. (MRC). Ultimately, MRC declined the project award due to issues related to the COVID-19 epidemic and the project was therefore awarded to the second lowest responsible project bidder, Northwest Demolition, Inc.
Construction began in August 2020 to install micropiles through the Milagra Creek outfall pipe into the adjacent soil to stabilize the pipe. The project encountered several delays due to the difficult working conditions inside the pipe, Covid shutdowns, and environmental permitting winter storm season working restrictions.
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During the course of the construction work in 2020, Northwest Demolition encountered rock within the soil that made drilling for the micropiles very difficult. Also, the project was shut down at the end of October 2020 due to the contractor’s staff contracting Covid-19. This effectively stopped the project until the spring of 2021, as environmental permitting required work to stop during the winter storm season.
The Covid work stoppage had a huge adverse economic impact on Northwest Demolition, on top of other financial losses it had already incurred due to Covid. Northwest Demolition is a small business, and with its only job suspended, they had to find other work to try to keep the business in operation. Northwest Demolition landed an emergency slide repair job with the County of Santa Cruz which they completed in the fall of 2021. Consequently, the Milagra Outfall project was suspended again until the spring of 2022, as environmental permitting required work to stop once more during the winter storm season.
The Milagra Creek project resumed work in March 2022. Again, during the course of the construction work, Northwest Demolition encountered difficult conditions that made drilling for the micropiles very difficult. Finally on July 22, 2022, the project was completed. As a result of the prolonged project duration, which was beyond GHD’s control, additional administration, field and management time was required. Amendment #2 with GHD is to cover the additional construction management and inspection services.
On July 12, 2021, City Council approved Change Order # 1 with Northwest Demolition in the amount of $53,950 for the unforeseen condition regarding drilling through the rock and approved Amendment #1 with GHD in the amount of $59,423 to cover the additional construction management and inspection services.
There were two construction change orders issued to the contractor Northwest Demolition, Inc. during construction. Change Order #1, as noted above, and a deductive Change Order #2 for ($4,659) for reducing the project pile scope. The total change amount for the project was $49,291. The change orders included additional working days to cover work stoppage during Covid and the winter seasons. With these change orders, the final contractor construction cost for the project was $545,291.
As the project is now complete and staff is satisfied with the contractor’s work on the project, it is appropriate to record the formal Notice of Completion with the San Mateo County Recorder's Office. This recorded document is the legal notice that the City considers the project complete and intends to pay the contractor for the full and complete contract price. This also puts all subcontractors and suppliers on notice that if they have any claims for payment from the contractor, they have 30 days to file claims for payment against the City. This provision of contract law protects subcontractors from contractors who may not pay them properly. It also protects the City from claims against the City for any nonpayment on the part of the contractor.
The City withheld 5% of the contract amount, $27,264.55, as retention to make sure that all subcontractors and suppliers have been paid. The City will release the retention if no claims are received.
The City Manager recommends approval of the attached resolution approving amendment #2 with GHD, Inc. (Attachment 1) and accepting completion of the project and the filing of the Notice of Completion (Attachment 2) with the San Mateo County Recorder's Office.
ALTERNATIVE ACTION:
Council may choose not to adopt the resolution and not approve the contract amendment and not accept completion of the project, but as the work has been satisfactorily completed, the Pacifica City Council 3
April 24, 2023
contractor may file a claim against the City for non-payment of retention if there are no claims.
Staff does not recommend this alternate action.
RELATION TO CITY COUNCIL GOALS AND WORK PLAN:
Approval of the amendment and Notice of Completion for the Milagra Creek Outfall Repair Project, is consistent with the following Council adopted Goals:
• Stewardship of City Infrastructure: includes repairing/replacing outdated city facilities such as city hall, the libraries, fire stations, etc., improving streets, and responding to impacts of sea level rise.
This construction project improved existing public drainage infrastructure.
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FISCAL IMPACT:
There is no fiscal impact associated with Amendment #2 and the filing of the Notice of Completion. The total project Source and Use of Funds table is shown below with funds coming from a CalOES grant and Fund 38, ERAF.
Previous Council Approved Use of Funds
CDAA/CalOES $508,632.75
Fund 38 - ERAF $269,244.25
Total $777,877.00
Current Expected Use of Funds
Construction Cost $496,000.00
Construction Change Order #1 $53,950.00
Construction Change Order #2 -$4,659.00
Construction Management $128,504.00
Construction Management Amendment #1 $59,423.00
Construction Management Amendment #2 $44,000.00
Total $777,218.00
Project End Balance $659.00
ORIGINATED BY:
Public Works
ATTACHMENT LIST:
Attachment 1-Amendment No. 2 to the Construction Management and Inspection Agreement between the City of Pacifica and GHD, Inc. (PDF)
Attachment 2-Notice of Completion for the Milagra Creek Outfall Repair Project (PDF) Pacifica City Council 5
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RESOLUTION NO. _______
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PACIFICA APPROVING AMENDMENT NO. 2 TO THE CONSTRUCTION MANAGEMENT AND INSPECTION AGREEMENT BETWEEN THE CITY OF PACIFICA AND GHD, INC. IN THE AMOUNT OF $44,000.00; ACCEPTING COMPLETION AND DIRECTING THE CITY MANAGER TO FILE THE NOTICE OF COMPLETION FOR THE MILAGRA CREEK OUTFALL REPAIR PROJECT;
AND AUTHORIZE THE CITY MANAGER TO EXECUTE ALL DOCUMENTS AND RELEASE
THE RETENTION FUNDS TO THE CONTRACTOR
RESOLVED by the City Council of the City of Pacifica, California, that WHEREAS, the City requested additional Construction Management and Inspection services from GHD, Inc.; and
WHEREAS, the City Engineer of the said City has filed with the City Clerk of said City, his Certificate as to the completion of all the work provided to be done under and pursuant to the contract between said City and Northwest Demolition, Inc., on March 23, 2020, and WHEREAS, it appears to the satisfaction of this Council that said work under said contract has been fully completed as provided in said contract and the plans and specifications therein referred to,
NOW, THEREFORE, it is ordered as follows:
1. That acceptance of completion of said work be, and it is hereby, made and ordered.
2. That the City Manager is authorized to sign the project amendment documents for the Governing Board.
3. That the City Manager is directed to file for record with the County Recorder of the County of San Mateo, Notice of Completion thereof, pursuant to Section 3093 of the Civil Code of the State of California
• • • • •
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Pacifica, California, held on the 24th day of April, 2023, by the following vote:
AYES, Councilmembers:
NOES, Councilmembers:
ABSENT, Councilmembers:
ABSTAIN, Councilmembers:
CITY OF PACIFICA
_________________________________
Tygarjas Twyrls Bigstyck, Mayor
ATTEST: APPROVED AS TO FORM:
______________________________ _________________________________ Pacifica City Council 6
April 24, 2023
Sarah Coffey, City Clerk Michelle Kenyon, City Attorney