Title
Adopt a Resolution to Increase the Consulting Services Agreement Amendment Cap Authorization from 15% to 40% (from $54,300 to $144,795; an Increase of $90,495) of the Original Total Not to Exceed Amount of $361,998 with Lee & Ro, Inc., for the Design of the Secondary Effluent Line Replacement and Davis Street Manhole Replacement, Project No. 2018.6000
Staffreport
COUNCIL PRIORITY
• Public Safety
• Infrastructure
SUMMARY
This resolution provides for an amendment to the current consulting services agreement for the engineering design and construction period support for the replacement of Sanitary Sewer Manhole in front of the entrance to the City of San Leandro’s Wastewater Pollution Control Plant, as well as the replacement of the associated influent piping, and the Secondary Effluent Line Replacement. The increased agreement amendment authorization will allow for payment for additional design services and consultant support services during the construction phase.
RECOMMENDATIONS
Staff recommends the following action:
• Authorize an increase to the consulting agreement amendment cap from 15% to 40% (from $54,300 to $145,795; an agreement amendment cap Increase of $90,495) to the original total not to exceed amount of $361,998 with Lee & Ro, Inc., for the subject project.
BACKGROUND
The Wastewater Pollution Control Plant (WPCP) at the end of Davis Street plays a crucial role in processing 2/3rd of the total wastewater in the City of San Leandro. The manhole at this location facilitates the transportation of wastewater flows to the plant headworks. From there, the wastewater will undergo treatment by various facilities within the WPCP.
In 2011, the City successfully completed the WPCP Rehabilitation project, a comprehensive initiative that brought the plant to current regulatory requirements. However, to meet compliance schedules set by regulatory agencies, the resolution of the deficiencies related to this integral manhole was deferred. These repairs, along with the rehabilitation of the Secondary Effluent Pipeline (SE Line) that discharges treated wastewater were postponed and are now addressed through this contract.
The required efforts to collaborate with sister agencies owning utilities within the project vicinity led to the decision to divide the project into two phases. Phase 1 focused on the design and construction of the SE Line, a project that was completed in January 2023. Instead of replacing the SE Line, it was rehabilitated using a PVC lining of the pipe’s interior, a strategic measure that eliminated the need for excavating potentially contaminated soil that minimized any harmful or negative environmental effects from disturbing potentially contaminated soil and mitigating significant disposal costs related to the same.
Moving forward, Phase 2 will concentrate on the Davis Street Manhole Replacement. This phase involves replacing the sanitary sewer manhole on Davis Street situated adjacent to the WPCP. This phase also includes the realignment of a 30-inch by 33-inch diameter sewer pipe entering the plant from the manhole. These sewer lines are essential for transporting influent to the plant headworks for treatment prior to discharge.
Analysis
On April 20, 2020, by Resolution No. 2020-035, the City Council approved a consulting services agreement with Lee & Ro for the design of the Secondary Effluent Line Replacement and Davis Street Manhole Replacement project. The agreement also granted the authority for amendments, with a maximum limit of 15% of the original agreement amount.
However, various challenges, including disruptions caused by the COVID-19 pandemic, significant staff turnover and less-than-optimal collaboration from sister agencies with facilities within the project site led to extensive extensions of the contract term. This extension has resulted in increased costs to both the City and the consultant.
Initially intended for the rehabilitation of the Davis Street Manhole, a detailed analysis during the design phase revealed that replacement was necessary due to severe deterioration, bringing the manhole to the brink of failure. This shift in the repair strategy required collaboration with sister agencies that owned utilities in the vicinity.
To bring this project phase to successful completion, staff recommends that the City Council authorize an increase to the change order cap from 15% to 40%, which is approximately $90,495.
Upon City Council approval of the increase, Lee & Ro will be able to sustain its engagement on the project, successfully conclude the design phase and offer construction support for the Davis Street Manhole Replacement. Lee & Ro’s expertise and in-depth understanding of the project’s challenges uniquely position it to navigate the complexities efficiently and bring the project to its successful conclusion. Failure to approve the increase to the amendment cap may impede the expeditious completion of the project, posing a risk to its timely completion and consequent failure of the manhole structure.
Current Agency Policies
• Maintain and enhance San Leandro’s infrastructure.
Previous Actions
• On April 20, 2020, by Resolution No. 2020-035, the City Council awarded a consulting services agreement to Lee & Ro, Inc., for $361,998 for the subject project and authorized the City Manager to approve contract change orders up to 15% of the total contract amount.
Applicable General Plan Policies
Policy CSF-6.8 Maintenance:
Ensure that sufficient funding is provided for the ongoing maintenance of City-owned facilities, including streets, streetlights, traffic signals, landscaping, street trees, storm drains, public buildings, and other infrastructure.
Environmental Review
This project is categorically exempt from the California Environmental Quality Act (CEQA) per Section 15301(c) of the CEQA guidelines. The Notice of Exemption was filed with the Alameda County Recorder on March 23, 2021.
Summary of Public Outreach Efforts
• Local utility stakeholders have continually been informed the project’s progress, and the City has received word of their coordination policies during the design phase.
Fiscal Impacts
The estimated total project costs are as follows:
Original design contract $361,998
CSA Amendments 1 & 2 $21,946
Design & Constr. Support Contingencies $122,863
SE Line Construction - completed $872,068
Manhole Construction (est.) $1,425,300
Manhole Construction Contingencies $213,795
Staff costs - Design, Insp.& Constr. Admin $249,200
Total Project Costs $3,267,170
Contract Change Order Summary
Change Order limit authorized at contract award was 15% (or $54,300)
CCO No. Description Amount %
1 Locating additional field utilities in support $3,046 0.8%
of sister utility agencies - Requested by City.
2 Additional design effort requested by owner $18,900 5.2%
For new hypo injection point and concrete
vault for SE Line
3 Anticipated additional design costs related $122,849 34%
to project delay, and Bid Support Services
Construction requested by owner_____________________________
Estimate Change Order Total $144,795 40%
Budget Authority
The projects are funded as follows:
Account No. Reso & Source Amount
593-52-261-5240 WPCP Enterprise Fund $520,000
593-52-267-5240 WPCP Enterprise Fund $630,000
593-52-267-5240 Res. No. 2022-015 $784,454
Sub Total $1,934,454
Additional funding will be requested at the time of construction contract award.
ATTACHMENT
Attachment A: Resolution for CCO Cap Increase
PREPARED BY: Bennett Sanderson, Assistant Engineer, Public Works - Engineering and Transportation Division