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sr-062811-3fCity Council Meeting: June 28, 2011 Agenda Item: 3'F To: Mayor and City Council From: Martin Pastucha, Director of Public Works Subject: Contract Modification with Morley Construction Company for the Resource Recovery Center (RRC) Recommended Action Staff recommends that the City Council authorize the City Manager to negotiate and execute a first and. final modification to Contract No. 9125 (CCS) with Morley Construction Company, aCalifornia-based company, in an amount not to exceed $35,504, for a total contract amount of $100,504, for additional scope of work for the Resource Recovery Center. Executive Summary The City has been working with Southern California Disposal, Allan Company, design consultant J.R. Miller & Associates, and Morley Construction Company on preliminary plans for the proposed Resource Recovery Center. In order to ascertain the costs associated with the project, staff contracted with Morley Construction Company for preconstruction services for $65,000 (including a 10% contingency). The first agreement confirmed the baseline cost estimate from the conceptual plans and established project goals. Based on the project estimate and potential rate impacts, prior to coming back to Council with the Guaranteed Maximum Price (GMP) for completing the design and preconstruction document services, a reevaluation of the project has been undertaken by the Resource Recovery and Recycling Division and Finance Department staff. Morley Construction Company completed additional site investigations in the service of this reassessment. This $35,504 modification will serve to close out their contract for the design-build of the Resource Recovery Center. Background Over the past three years, the City has been engaged in a review of the City's solid waste operations. On October 30, 2007; Council reviewed the results of an extensive Request for Proposals process to provide transfer and recycling services for municipal solid waste. At that time, Council directed staff to explore the possibility of having either 1 the City or a private company provide transfer services. In both options, Allan Company would provide recycling services.. On May 22, 2008, Council approved a public/private partnership with Southern California Disposal to provide transfer services and Allan Company to provide recycling services. On November 25, 2008, Council approved a professional services agreement with J.R. Miller & Associates for the design of the Resource Recovery Center, formerly known as the Recycling Drop-Off Center. On November 17. 2009, Council reviewed and approved the concept design for the Resource Recovery Center. On May 25, 2010, Council authorized the City Manager to execute a Professional Services .Agreement No. 9125 for preconstruction services with Morley Construction Company. The first phase of work, authorized for $65,000, included the confirmation of the architect's schedule, developing a baseline cost estimate from the conceptual plans, determining potential cost savings, and establishing overall project goals. Since then, the Resource Recovery and Recycling Division has been reevaluating the RRC. Discussion In order to ascertain the costs associated with the Resource Recovery Center project and integrate cost control measures early in the design process, Morley Construction Company was contracted as the design-builder at the same time a rate study was being conducted by City staff. Morley Construction Company was asked to provide services in this interim period including additional meetings, presentations, engineering assessments of existing sub-grade site conditions, and value engineering. This modification to their existing Professional Services Agreement is to cover the additional time and work .not covered by the initial agreement and closes out the firm's contract with the City. Public Works staff will bring the results of the financial analysis of alternative solid waste operation options to Council separately. 2 Financial Impacts & Budget Actions The contract modification to be awarded to Morley Construction Company is $35,504, for a total contract amount of $100,504, for additional scope of work for the Resource Recovery Center. Funds are available in account number 0274055.589000, Resource Recovery Center. Prepared by: Miriam Mulder, Architecture Services Manager Approved: ~ . Martin Pastu ha Director of Public Works Forwarded to Council: Rod Gould City Manager 3 Reference Amended Contract No. 9215 (CCS)