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
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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.
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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:
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Martin Pastu ha
Director of Public Works
Forwarded to Council:
Rod Gould
City Manager
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Reference Amended
Contract
No. 9215 (CCS)