CITY OF POMONA
COUNCIL REPORT
March 18, 2024
To: Honorable Mayor and Members of the City Council
From: Anita D. Gutierrez, City Manager
Submitted By: Chris Diggs, Water Resources Director
SUBJECT: ADOPT A RESOLUTION AMENDING THE FY 2023-24 CIP BUDGET FOR “WATER RESOURCES BUILDING,” PROJECT NO. 575-8125-XXXXX-93135; AND, APPROVE A SECOND AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT WITH GRIFFIN STRUCTURES, INC.
RECOMMENDATION:
It is recommended that the City Council take the following actions:
Adopt the following resolution:
RESOLUTION NO. 2024-40 – A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF POMONA, CALIFORNIA AMENDING THE FY 2023-24 CAPITAL IMPROVEMENT PROGRAM (CIP) BUDGET BY APPROPRIATING $325,000 FROM WATER FUND RESERVES AND $325,000 FROM SEWER FUND RESERVES (TOTALING $650,000) TO THE “WATER RESOURCES BUILDING,” PROJECT NO. 575-8125-XXXXX-93135 Approve the second amendment to the professional services agreement with Griffin Structures, Inc. (Griffin) for the “Water Resources Building” project increasing the contract amount by $140,000 from $550,832 to $690,832; and, Authorize the City Manager, or designee, to execute the agreement amendment with Griffin, contingent upon City Attorney review.
EXECUTIVE SUMMARY:
Amend the professional services agreement with Griffin a second time to include funding for construction warranty completion, and systems commissioning. Additional funding for the WRD Building is requested to accommodate construction change orders (CCO) for Kemp Brothers (the contractor) and will be used for unknown additional expenses that arise through the construction processes, as needed. At this point, CCOs have been minimal and staff anticipates this trend to continue.
SB1439/GOVERNMENT CODE §84308 APPLICABILITY:
☒ When this box is checked, it indicates the agenda item is subject to the Levine Act SB1439 requirements. Councilmembers are reminded to check their campaign contributions and determine whether they have received a campaign contribution of $250 or more that would require disclosure and/or recusal from discussing or acting on this agenda item. Campaign contributions of $250 or more made 1) by any person or entity who is identified in the agenda report as the applicant or proposer or 2) on behalf of the applicant or participant, including a parent, subsidiary or otherwise related business entity, or 3) by any person who has a financial interest in the agenda item requires a councilmember to comply with SB1439.
FISCAL IMPACT:
The total fiscal impact for the recommended actions are an appropriation of additional funding of $650,000 (Attachment No. 1) and an amendment to the Griffin agreement (Attachment No. 2) in the amount of $140,000. The original agreement with Griffin was approved for $340,500 and first amended by $210,332. This second amendment will increase the existing $550,832 agreement to $690,832. Funds are available in the approved Fiscal Year 2023-24 CIP Budget for “Water Resources Building”, Project No. 575-8125-XXXXX-93135. The funds available and appropriation for this project are detailed in Table 1 below:
Table 1
Category
“Water Resources Building”
Project No. 575-8125-XXXXX-93135
Initial Budget
$39,838,183
Appropriation of Sewer Fund Reserves
$325,000
Appropriation of Water Fund Reserves
$325,000
Revised Budget
$40,488,183
Expenditures/Encumbrances (as of February 28, 2024) ($39,567,875)
Amendment to Griffin
($140,000)
Balance available for construction mgmt., contingencies, inspection costs, and other expenses $780,308
PREVIOUS RELATED ACTION:
On September 17, 2018, City Council approved a professional services agreement with Griffin to perform construction management services. On February 6, 2023, City Council approved an amendment to the original professional services agreement. On November 6, 2023, Council approved a resolution amending the CIP budget in the amount of $700,000 for the “Water Resources Building” Project No. 575-8125-XXXXX-93135.
DISCUSSION:
On September 17, 2018, City Council approved a contract with Griffin in the amount of $340,500 to perform oversight assistance during the design and construction of the Water Resources building. On February 6, 2023, City Council approved an amendment to the original professional services agreement in the amount of $210,332. This effort included design review, cost estimating, inspections, payment verification and review. Construction of the project buildings and associated onsite improvements is almost complete. Tentatively, the site completion will happen in the spring of 2024.
Staff is seeking approval for a second contract amendment to include special inspection, testing, systems commissioning, and project closure. City Code 2-1003(1) (l) requires City Council approval for cumulative contract increases that exceed twenty-five percent of the original CIP professional services contracts. Upon completion of the agreement amendment, staff will seek approval as to form for the City Attorney prior to execution by the City Manager.
Prepared by:
_____________________________
Nichole Horton
Principal Water Engineer
ATTACHMENTS:
Attachment 1 – Resolution No. 2024-40
Attachment 2 – Griffin Agreement Amendment No. 2
Water Resources Building CIP Budget Appropriation and Griffin Structures, Inc. Second Agreement Amendment