BOARD AGENDA MEMORANDUM
SUBJECT:
Title
Approve Amendment No. 4 to Agreement No. A4242G with Cordoba Corporation for Executive Project Management Services for the Rinconada Water Treatment Plant Reliability Improvement Project, Project No. 93294057, CAS File No. 4953, Increasing the Not-to-Exceed Fee by $9,646,153, for a Total Not-to-Exceed Fee of $24,409,273 and extending the term to July 31, 2025 (Los Gatos, District 7).
End
RECOMMENDATION:
Recommendation
Approve Amendment No. 4 to Agreement No. A4242G with Cordoba Corporation for Executive Project Management Services for the Rinconada Water Treatment Plant Reliability Improvement Project, Project No. 93294057, to increase the not-to-exceed fee by $9,646,153, resulting in a revised total not-to-exceed fee of $24,409,273, and extend the Agreement term to July 31, 2025.
Body
SUMMARY:
The Rinconada Water Treatment Plant (RWTP) Reliability Improvement Project (Reliability Project) was initiated to increase plant reliability to meet peak summer demands, update technology and infrastructure, and implement process improvements. The Board awarded the original construction contract on May 26, 2015 to Balfour Beatty Infrastructure, Inc. (BBII) and BBII completed the first two of the six phases of the work. The remaining phases, Phases 3-6, are currently being repackaged in order to proceed with completing the remainder of the Reliability Project.
Cordoba Corporation (Consultant) has been performing executive project management and construction management services for the Reliability Project. Pending Amendment No. 4 approval by the Board, the Consultant will be performing executive project management and construction management services such as inspections, safety management, training, testing and start-up, public outreach, and as-needed dispute management during construction of the remaining phases.
Project Background
The RWTP was completed in 1967 and is Santa Clara Valley Water District’s (Valley Water) second largest plant. The RWTP currently has the capacity to deliver up to 80 million gallons of water each day (MGD) to retailers who then supply residential and commercial users. The RWTP draws water from the South Bay Aqueduct, the San Luis Reservoir, as well as the Anderson and Calero Reservoirs.
On May 26, 2015, the Board awarded a $179,850,000 construction contract (Construction Contract) to Balfour Beatty Infrastructure, Inc. (Contractor) for the RWTP Reliability Project. The original Construction Contract provided for the Reliability Project to be built in phases within a 5-year period, however, on March 10, 2020, Amendment 1 to the Contract reduced the scope of work, resulting in the Contractor completing Phases 1 and 2 and eliminating Phases 3, 4, 5, and 6 from their Contract.
On January 12, 2021, the Board approved the Notice of Completion for the Reliability Project, accepting the work performed through Phase 2 on the Rinconada Water Treatment Plant Reliability Improvement Project, Project No. 93294057, Contract No. C0601, as complete. The Reliability Project design has been repackaged to complete construction of the remaining phases.
The successful completion of Phases 3-6 will allow staff to efficiently and reliably treat 100 MGD, which will ultimately accomplish the objectives of the Reliability Project. Major scope items include the construction of the ozone generation building, liquid oxygen facility, fluoride facility, new filters, demolition of the existing clarifiers and filters, upgrades to the plant water system, construction of bioretention basins, modifications to existing chemical systems, and other miscellaneous site improvements.
Consultant Agreement History
On March 29, 2019, the Chief Executive Officer (CEO) approved the original Agreement A4242G for executive project management services between Cordoba Corporation and Valley Water with a not-to-exceed fee of $224,900. The Agreement had a retroactive date of February 11, 2019, commensurate with their start of work.
On August 13, 2019, the Board approved Amendment No. 1 for executive project management services and construction management services; increased the fee by $14,538,220 resulting in a revised total not-to-exceed fee of $14,763,120; and extended the Agreement term from November 1, 2019, to July 31, 2021.
On September 16, 2021, the Deputy Administrative Officer (DAO) approved Amendment No. 2 which retroactively extended the term of the Agreement from August 1, 2021, to July 31, 2022.
On July 14, 2022, the Chief Operating Officer (COO) approved Amendment No. 3 which extended the term of the Agreement from August 1, 2022, to July 31, 2023.
Amendment No. 4, currently recommended for approval in this Agenda Memorandum, provides for additional executive project management and construction management services; increasing the total not-to-exceed compensation by $9,646,153 to $24,409,27; and extending the Agreement term from August 1, 2023, to July 31, 2025.
Amendment No. 4 is scheduled to be presented at the November 14, 2022, Capital Improvement Program (CIP) board committee meeting, which has not yet occurred when this Agenda Memorandum was posted.
If approved by the Board, the Agreement will extend the expiration date from August 1, 2023, to July 31, 2025, increase the not-to-exceed fee; incorporate administrative updates; and correct a typographical error in Amendment No. 2 and Amendment No. 3 regarding the effective date of Amendment No. 1. The additional time is necessary for the Consultant to continue providing executive project management services for construction of the remaining phases of the Reliability Project.
Relevant Prior Board Actions
On January 27, 2015, the Board certified the Final Environmental Impact Report (EIR); adopted the Mitigation; Monitoring and Reporting Program, Findings of Fact, and Statement of Overriding Considerations; held a Public Hearing on the Engineer’s Report; adopted a Resolution approving the Engineer’s Report; and approved the Project.
On May 26, 2015, the Board approved the construction contract award to Balfour Beatty Infrastructure, Inc. as the responsible bidder submitting the lowest responsive bid.
On March 10, 2020, the Board approved the amendment to the Reliability Project’s Construction Contract with Balfour Beatty Infrastructure, Inc., reducing their scope of work.
On January 12, 2021, the Board approved the Notice of Completion for the Reliability Project, thus accepting the work performed through Phase 2 on the RWTP Reliability Project, Project No. 93294057, Contract No. C0601, as complete.
On April 13, 2021, the Board adopted plans and specifications and authorized advertisement for bids for the RWTP Interim Site Restoration Project, Project No. 93294057, Contract No. C0670.
On June 22, 2021, the Board approved the construction contract award to NTK Construction, Inc. as the responsible bidder submitting the lowest responsive bid, for the RWTP Interim Site Restoration Project, Project No. 93294057.
On May 10, 2022, the Board approved the Notice of Completion for the RWTP Interim Site Restoration Project, Project No. 93294057.
Consultant Agreement Scope of Services
Amendment No. 4 to the Agreement with Cordoba Corporation will expand on the originally listed tasks along with the tasks outlined in Amendment No. 1 and extend the term of the Agreement. A summary of the tasks and fees for the recommended Amendment No. 4 is presented in Table 1.
NOTES:
1. Amendments No. 2 and 3 are no-cost amendments.
2. Remaining funds from completed Task 2 are reallocated to remaining tasks not yet fully performed.
3. The scope of services and correlating budgets for Tasks 6, 8, and 9, have been reduced pursuant to this Amendment No. 4. Remaining funds from reduced budgets for Tasks 6, 8, and 9 are reallocated to remaining tasks not yet fully performed.
Next Steps
After the Board approves staff’s recommendations, the Consultant will perform their duties as outlined in each task in the Agreement.
ENVIRONMENTAL JUSTICE IMPACT:
There are no Environmental Justice impacts associated with this item. However, environmental justice impacts will be assessed and reported as part of Project implementation action items brought to the Board. As part of executed Project components, community input was solicited for consideration through public meetings, which helped inform Project design.
FINANCIAL IMPACT:
The Rinconada Water Treatment Plant Reliability Improvement Project, Project No. 93294057, is included in the Capital Improvement Program (CIP) Fiscal Year (FY) 2023-27 Five-Year Plan and in the FY 2022-23 Adopted Budget. The not-to-exceed (NTE) fee for Amendment No. 4 to Agreement A4242G is $9,646,153, resulting in a total NTE fee of $24,409,273. There are adequate funds in the Project’s FY 2022-23 Adopted Budget to encumber the anticipated expenditures for the Consultant’s services during this fiscal year. Funds to cover subsequent fiscal year Consultant construction management services will be included in the biennial budget process and recommended by staff during the annual fiscal year budget process, or through budget adjustment(s).
Approval of this Amendment No. 4 to Agreement A4242G would increase the total Project cost reflected in the CIP’s Adopted FY 2023-27 Five-Year Plan. The increase in the total Project cost will be incorporated into the CIP’s Draft FY 2024-28 Five-Year Plan. The Project is funded by the Water Utility Enterprise Fund (Fund 61) with 100% of the costs allocated to Zone W-2 (North County).
CEQA:
On January 27, 2015, the Board approved the Rinconada Water Treatment Plant Reliability Project after making CEQA findings and certifying an Environmental Impact Report (EIR) for the Project. Approval of the recommended action would allow the Consultant to continue providing construction management services for the Project activities which were already evaluated in the EIR. No further CEQA review is required to support approval of the recommended action.
ATTACHMENTS:
Attachment 1: Amendment No. 4
UNCLASSIFIED MANAGER:
Manager
Emmanuel Aryee, 408-630-3074