AgdaPkt 2010-03-08 - Laserfiche WebLink

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REPORT 6.18 age 1 To the Honorable Mayor and City Council From the Ci Mana er March 8, 2010 SUBJECT Professional services agreement for construction management of the Redwood City Recycled Water Project - Distribution Pump Station Capacity Increase. RECOMMENDATION Approve, by motion, a professional services agreement with The Covello Group, Inc. of Walnut Creek to provide construction management services for the Redwood City Recycled Water Project - Distribution Pump Station Capacity Increase for an amount not to exceed $130,000.00 and authorize the City Manager to increase the contract amount up to 100/0 if necessary. BACKGROUND Council awarded the construction contract for the Distribution Pump Station Capacity Increase to Spiess Construction Co., Inc. in the amount of $1,329,446.17 on February 22, 2010. Staff has previously selected two firms to provide construction management and inspection services for the Redwood City Recycled Water Project - Phase 1. Those two firms, The Covello Group, Inc. ("Covello") and CSG Consultants, Inc. ("CSG"), have provided construction management and inspection services to the city's recycled water projects over the past four years. Both firms are equally qualified and selection of one of these firms for any phase of the recycled water project to date has been largely a matter of availability and specialization. Council has previously approved agreements with CSG for Bid Packages 1,2,3,4 and 9. Council has previously approved an agreement with Covello for Bid Package 5, 5A, 6, 7, and 8. For the Distribution Pump Station Capacity Increase project (Council awarded on February 22, 2010), Staff recommends Covello provide construction management and inspection services because of the greater availability of key personnel during construction. ALTERNATIVES . Council may choose not to approve the proposed agreement with Covello, and direct staff to seek other construction management services. . Council may give direction to increase existing "Blr Department staffing. Adding staff has short term and long term ramifications. a. Advantages include short term cost savings, and gained/retained experience from the direct management of this type of work. b. Disadvantages include the uncertainty of finding a qualified professional for a project of this size/complexity, and the need to sustain the permanent budget requirement after project completion. FISCAL IMPACT Funds for the proposed professional services agreement are available from the Water Revenue Bond proceeds. The city has issued a series of Water Revenue Bonds totaling $72 million to finance Phase 1 of the Recycled Water Project. Available project funds, less unattributed interest, total $5,454,714.00 as of January 31, 2010.