PREPARED BY: RONALYN NONATO DATE OF MEETING: 04/17/17
SUBJECT:
TITLE
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN PABLO AUTHORIZING THE CITY MANAGER TO AMEND AN EXISTING AGREEMENT WITH BELLECCI & ASSOCIATES FOR THE EL PORTAL WEST RULE 20A UNDERGROUND DISTRICT PROJECT (POR-20A) TO ADD $24,800 FOR ADDITIONAL CONSTRUCTION SUPPORT FOR A TOTAL CONTRACT AWARD OF $124,310
Label
CITY MANAGER RECOMMENDATION
Recommendation
Adopt Resolution
Body
Compliance statements
CIP 2015-2017
El Portal West Utility Underground Project PW 384 (POR-20A), is an adopted policy item under the Infrastructure policy area, Capital Improvement Projects section, Public Works category of the FY 2015-17 City Council Priority Workplan, effective October 1, 2016.
CEQA Compliance Statement
The project is categorically exempt under the California Environmental Quality Act, Section 15302 of the CEQA Regulations, Replacement or Reconstruction. A Notice of Exemption was filed with the Contra Costa County Clerk on September 27, 2010.
BACKGROUND
PG&E allocates “credits” to cities for underground utility conversion under their Rule 20A program, as established through the California Public Utilities Commission. The costs for undergrounding existing overhead electrical lines under Rule 20A are funded through electric rate surcharges paid by all electric customers. Allocations by PG&E are made yearly to the City’s account. When the account balance is sufficient to fund a project, the City works with PG&E, as well as other utility companies (AT&T-telephone and Comcast-cable), to create an undergrounding district and relocate utilities from above ground poles to underground. The telephone and cable company costs in Rule 20A projects are paid with allocated credits, and not passed through to the cities. The majority of the El Portal Rule 20A project will be paid for by PG&E since it owns most of the above ground poles and facilities. The accumulated PG&E Rule 20A balance for City of San Pablo as of June 30, 2016 is estimated to be $1,637,108. The El Portal West Utility Underground (POR-20A) project was selected to use approximately $872,296 credits.
The El Portal West Underground Utility project consists of trenching and installation of conduit, underground vaults, and boxes. After this infrastructure is installed, the utility companies will pull wire and cable through the conduits and install equipment in the vaults and boxes. The City has included a separate trench for a separate City project with street lights and fiber optic conduits. After the construction work is completed, and the underground facilities are energized, the aerial wires and wood poles will be removed.
Bellecci and Associates (“Bellecci”) prepared the joint trench layout drawings, design plans, specifications and cost estimates and initial construction support for this project under the original Agreement dated March 26, 2014 and Amended Agreement dated May 12, 2014, amounting to $99,510. However, the City’s contract with Bellecci must be increased to accommodate the needed Construction Support Services as stated in their request letter (attached). The latest PG&E Rule 20A Form B will be adjusted to reflect the change. The Form B details costs of the facility components, including engineering, and ownership percentages (between PG&E, other utility companies, and the City street lighting). The Form B is submitted to PG&E for approval and then used as the basis for reimbursement of costs under Rule 20A. A portion of the design fees can be claimed for reimbursement on Form B, and the intent is to claim the majority of such fees to be eligible for Rule 20A reimbursement; PG&E determines the amount only after reviewing Form B for approval.
The increase in contract cost of $24,800 was proposed to cover all construction support costs for the duration of the project. As is customary for this type of work, services will be billed on a time and materials basis. The subject resolution authorizes amending the Bellecci agreement in substantial conformance to the attached draft Amendment #2, for a not to exceed value of $124,310.
FISCAL IMPACT
Staff has received a letter from Bellecci & Associates to increase the construction support amount from $25,000 to $40,000 due to unforeseen tasks related to: a) utility conflicts, b) utility coordination, and c) submittal reviews. However, staff is recommending to increase the construction support amount to only $33,500 since the labor support on the project will be tracked, and budget amount will only be spent if required to complete the project. Hence, $24,800 will be added to their contract for additional construction support for the duration of the entire project. The additional work will modify Bellecci’s Engineering Services agreement with the City as follows:
|
Bellecci & Associates |
Amount |
|
Original Contract |
$10,250 |
|
Contract Amendment #1 |
$89,260 |
|
Contract Amendment #2 |
$24,800 |
|
Total Contract Amount |
$124,310 |
The contract second amendment amount is $24,800 and the total Bellecci contract amount will be $124,310. Funding in the amount of $24,800 is already available under the Capital Improvements Project (320-3200-43600-POR-20A).
ATTACHMENTS
A. Bellecci’s Request for Contract Amendment for additional Construction Support dated March 7, 2017.
B. Second Amendment to Agreement for the City of San Pablo El Portal West Rule 20A Underground District (POR-20A) project between the City of San Pablo and Bellecci & Associates signed by Bellecci and Associates.
C. Form B - El Portal “West” Rule 20A Undergrounding Utility Project signed by PG&E and Comcast.