City Council Memorandum
TO: HONORABLE MAYOR AND CITY COUNCIL DATE: DECEMBER 19, 2023 FROM: PUBLIC WORKS DEPARTMENT WARDS: ALL
SUBJECT: APPROVE A FIRST AMENDMENT TO THE DESIGN-BUILD AGREEMENT WITH RHOME CONSTRUCTION CORPORATION, OF BELLFLOWER, CALIFORNIA, TO COMPLETE THE DESIGN-BUILD OF A PERMANENT 24’ X 60’ MODULAR STRUCTURE TO BE LOCATED AT RIVERSIDE’S REGIONAL WATER QUALITY CONTROL PLANT, EXTENDING THE TERM THROUGH DECEMBER 31, 2024 ISSUE:
Approve a First Amendment to the Design-Build Agreement with Rhome Construction Corporation, of Bellflower, California, to complete the Design-Build of a permanent 24’ x 60’ modular structure to be located at Riverside’s Regional Water Quality Control Plant (RWQCP), extending the term through December 31, 2024.
RECOMMENDATIONS:
That the City Council:
Approve a First Amendment to the Design-Build Agreement with Rhome Construction Corporation, of Bellflower, California, to complete the Design-Build of a permanent 24’ x 60’ modular structure to be located at Riverside’s Regional Water Quality Control Plant (RWQCP), extending the term through December 31, 2024; and Authorize the City Manager, or designee, to execute the Amendment to the Design-Build Agreement, including making minor and non-substantive changes.
BACKGROUND:
The City of Riverside Public Works Department maintains a storm drain system consisting of over 5,000 catch basins and 190 miles of pipe. In October 2020, the team responsible for this maintenance relocated to Riverside’s Regional Water Quality Control Plant (RWQCP), located at 5950 Acorn Street, Riverside, CA 92504. The team temporarily operates out of the unoccupied Backup Power - Cogeneration Facility. The RWQCP has plans to use this building in the future, therefore the maintenance team cannot occupy this space permanently. The RWQCP is the only City facility with the space to house the Storm Drain Maintenance staff, fleet, equipment, and tools. After much consideration, a permanent 24’ x 60’ modular building is proposed for field crews to meet, plan, and coordinate maintenance activities. The Design-Build Entity of the project shall furnish all engineering design, labor, equipment, and materials for, and perform the work of Design-Build of Storm Drain Maintenance Building. This project was also briefly discussed during the Mobility and Infrastructure Committee meeting on May 12, 2022. A vote was not held on the matter.
On May 20, 2022, the City issued Request for Proposal (RFP) 2175 for the design-build of a Storm Drain Maintenance Building. The due date for the proposals was June 23, 2022, and the City received two responses. Proposals were received from Rhome Construction and David Bird Inc. There were a total of three City staff on the evaluation committee team. Both submittals were deemed responsive and were evaluated based on criteria stated in the RFP. The proposal from Rhome Construction scored the highest.
On March 7, 2023, the City Council approved a Design-Build Agreement with Rhome Construction Corporation, of Bellflower, California in the amount of $561,863.00 plus a 15% contingency of $84,279.45, for a not to exceed amount of $646,142.45. The approved agreement has a completion date of December 31, 2023.
DISCUSSION:
Following the City Council’s approval of the Design-Build Agreement there have been delays with finalizing the contract and commencing the design. Rhome Construction is currently in the process of designing the modular structure and it is not anticipated that the project will be completed by the contract end date of December 31, 2023. Based on the current progress of the design-build, it is now estimated that the modular structure will be completed by March or April of 2024. While City staff is optimistic that this can be achieved, there are still reviews and approvals from other agencies that could cause unforeseen delays in the process. As a safeguard, this first amendment extends the contract term to December 31, 2024.
This First Amendment complies with Purchasing Resolution 23914, Article Eleven: Purchase Order and Purchase Requisition Procedures, Section 1104 “Change Orders”, which states: “Modification to a Purchase Order shall be made only by Change Order. Subject to the availability of funds, Change Orders may be utilized for purposes of (5) modifying contract completion time or the term of a Contract…(d) A Contract amendment which extends the term of the agreement beyond one year of the original expiration date.” The Purchasing Manager concurs that the actions are in compliance with Purchasing Resolution No. 23914.
STRATEGIC PLAN ALIGNMENT:
This item contributes to Strategic Priority 4 – Environmental Stewardship and Goal 4.2 – Sustainably manage local water resources to maximize reliability and advance water reuse to ensure safe, reliable, and affordable water to our community. It also contributes to Strategic Priority 6 – Infrastructure, Mobility and Connectivity and Goal 6.2 – Maintain, protect, and improve assets and infrastructure within the City’s built environment to ensure and enhance reliability, resiliency, sustainability, and facilitate connectivity.
This action aligns with each of the five Cross-Cutting Threads as follows:
Community Trust – Maintaining the storm drain system serves the public interest and supports clean water in the community and proper flow of water during significant rain events. The proposed building will provide a permanent space for the Storm Drain Maintenance staff to meet, conduct safety briefings, carry out administrative duties, store equipment, plan, and coordinate maintenance activities.
Equity –This program supports clean water throughout the City ensuring that all residents can enjoy the benefits of local waterways.
Fiscal Responsibility – The City managed an open procurement process through RFP No. 2175 ensuring the City received competitive pricing for this project.
Innovation –The proposed building will provide the storm drain maintenance team with an up-to-date permanent space that will improve the group’s ability to plan and coordinate maintenance activities that pertain to the storm drain system. It will also allow for the storm drain maintenance staff to have a space to collaborate and work with other departments to problem solve and create innovative ways to make improvements to storm drain infrastructure throughout the City.
Sustainability & Resiliency – Proper maintenance of the storm drain system contributes to the health of the City’s and region’s waterways.
FISCAL IMPACT:
There is no fiscal impact associated with this report. The agreement amendment will not require additional compensation beyond what was approved by the City Council on March 7, 2023. This action only extends the contract term to complete the project.
Prepared by: Michael Roberts, Environmental Services Coordinator Approved by: Gilbert Hernandez, Public Works Director
Certified as to
availability of funds: Kristie Thomas, Finance Director/Assistant Chief Financial Officer Approved by: Kris Martinez, Assistant City Manager
Approved as to form: Phaedra A. Norton, City Attorney
Attachment: Agreement Amendment
Amendment to Design-Build Agreement with Rhome Construction ● Page 2