September 24, 2024
Economic Development
Port
DATE: September 24, 2024
TO: Mayor Martinez and Members of the City Council
FROM: Charles Gerard, Port Director
Lizeht Zepeda, Senior Business Assistance Officer
Kyle Lam, Management Analyst
Subject:
Resolution to Approve Final Payment to WR Forde
Associates, Inc. for Services Rendered for Leak Repair in 2020
FINANCIAL IMPACT: The proposed expenditure of $16,290.08 will be paid with funds approved for the Fiscal Year 2024-2025 (Account
String 40163080-400708-36009).
PREVIOUS COUNCIL
ACTION:
May 19, 2020
STATEMENT OF THE
ISSUE:
In early January 2020, the Port identified a significant leak in the water line at the Point Potrero Marine
Terminal (PPMT). Additional leaks were discovered,
necessitating emergency repairs and infrastructure
improvements. WR Forde Associates, Inc. was awarded
a Construction Agreement to address these issues.
Although the work was completed and additional
changes to the contract were made, the final payment of $16,290.08 remains pending due to a management
transition. The agreement expired in June 2021, and the Port now seeks to resolve this matter by processing the final payment and closing out the project.
AGENDA
REPORT
September 24, 2024
RECOMMENDED ACTION: ADOPT a resolution to approve the final payment of $16,290.08 to WR Forde Associates, Inc. for services
rendered for the Leak Repair Project in the year 2020;
and ACCEPT the completed project and formal close out
the project; and AUTHORIZE the city manager, or their
designee, to execute any necessary documentation to
process the final payment and close out the agreement – Economic Development Department (Charles Gerard
510-829-2253/Lizeht Zepeda 510-620-6653/Kyle Lam
510-620-6802).
DISCUSSION:
In early January 2020, the Port identified a leaking water line at the Point Potrero Marine Terminal (PPMT). While attempting to isolate the leak by closing valves, additional leaks were discovered in the underground mains and at the dock. Portions of the existing water system date back to the original 1940s shipyard infrastructure.
To address these issues, the Port initiated a request for proposals (RFP) for the necessary repairs. After evaluating the submissions, WR Forde Associates, Inc. (WR Forde), based in Richmond, was selected for having submitted the lowest, responsive, and responsible bid. Given the urgency of the situation, the work was authorized to proceed on an emergency basis.
At the City Council meeting on May 19, 2020, WR Forde Associates, Inc. was awarded a Construction Agreement. The agreement included an initial lump sum payment of $23,275 for the initial work to repair the water line. Additionally, a contingency amount of $131,725 was allocated to cover unforeseen conditions related to water line rehabilitation and pavement repairs, to be paid on a time and materials basis. The total value of the agreement was set at $155,000.
During the course of repairs, WR Forde encountered additional water leaks. The Port directed the contractor to address these leaks to prevent water loss and ensure the continued functionality of the fire water system. WR Forde also completed necessary pavement repairs as part of the finalization of improvements. Given that asphalt crews were already on-site, the Port seized a cost-effective opportunity to further expand the scope of work to include additional infrastructure improvements.
In May 2020, a first change order was issued, directing the contractor to complete extra work based on unforeseen conditions encountered during the original leak repair. The contract price was increased by $112,820.86, bringing the new total to $136,095.86.
In December 2020, a second change order increased the contract price by $9,485.28, resulting in a final contract price of $145,581.14. This increase was due to the Engineer's directive in November 2020 for WR Forde to investigate the source of
September 24, 2024
additional pressure loss in the fire water system located south of the AWC facility, near the General Warehouse and Riggers Loft.
WR Forde has been paid $129,291.06. On November 30, 2021, WR Forde submitted an invoice for the final payment of $16,290.08, bringing the total payment to $145,581.14—an amount below the original contract value.
Due to a management transition from the former Port Director, Jim Matzorkis, to the current staff, the final payment of $16,290.08 was delayed. WR Forde’s Construction Agreement with the Port expired in June 2021 before the Port could issue this payment.
The Port recommends that the City Council adopt a resolution approving the final payment of $16,290.08 to WR Forde Associates for the project. Additionally, the resolution should authorize the acceptance and closure of the project and grant the City Manager, or their designee, the authority to execute all necessary documentation to process the payment and close out the agreement.
DOCUMENTS ATTACHED:
Attachment 1 – WR Forde Associates Agreement – May 2020 Attachment 2 – Change Order Number 1 – May 2020
Attachment 3 – Change Order Number 2 – December 2020
Attachment 4 – After the Fact Form; Emergency Justification Form; and Contract Amendment
Attachment 5 - Resolution