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AGENDA ITEM REVIEW FORM |
7.B.
Special City Council Meeting
- Meeting Date:
- 06/18/2025
- Department Head:
- Eulogio Vera
- Submitted By:
- Jorge Perez, Assistant Director of Public Works, Public Works Department
Action Requested:
Motion
ITEM:
Discussion and possible action on any and all matters regarding the acceptance and award of a construction manager at risk (CMAR) pre-construction services contract to PCL Construction, Inc. for the pre-construction/design phase of the West Wastewater Treatment Plant Expansion project. (Jorge Perez, Assistant Director of Public Works)
SUMMARY:
Background
The City of San Luis is in need of expanding its West Wastewater Treatment Plant facility to increase its treatment capacity from 1.5 million gallons per day to 3.0 million gallons per day. Additional items that will be included in the scope are a new force main that directly discharges to the plant and an additional building for more operational space. Due to the project's complexity, it was identified in the early planning stage that it was a great candidate to be delivered utilizing the Construction Manager at Risk (CMAR) method.
The City of San Luis previously conducted a request for qualifications process to hire a design consultant, from which Pacific Advanced Civil Engineers (PACE) was awarded the contract. At this time, the City of San Luis conducted a request for qualifications process to select a construction manager at risk (CMAR/Contractor). Four interested firms submitted a statement of qualifications. Only three firms were shortlisted and given an interview based on said statement of qualifications. A selection committee conducted interviews back in January, resulting MGC Contractors, Inc. being the recommended firm for this contract. The City and MGC were not able to come to an agreement on the pre-construction services contract. On April 14, 2025, City Council gave staff direction to initiate negotiations with PCL Construction, Inc., the second-ranked firm during the qualification process.
Staff is seeking Council approval to award the pre-construction services agreement to PCL Construction, Inc. for the amount of $339,214.96.
The City of San Luis is in need of expanding its West Wastewater Treatment Plant facility to increase its treatment capacity from 1.5 million gallons per day to 3.0 million gallons per day. Additional items that will be included in the scope are a new force main that directly discharges to the plant and an additional building for more operational space. Due to the project's complexity, it was identified in the early planning stage that it was a great candidate to be delivered utilizing the Construction Manager at Risk (CMAR) method.
The City of San Luis previously conducted a request for qualifications process to hire a design consultant, from which Pacific Advanced Civil Engineers (PACE) was awarded the contract. At this time, the City of San Luis conducted a request for qualifications process to select a construction manager at risk (CMAR/Contractor). Four interested firms submitted a statement of qualifications. Only three firms were shortlisted and given an interview based on said statement of qualifications. A selection committee conducted interviews back in January, resulting MGC Contractors, Inc. being the recommended firm for this contract. The City and MGC were not able to come to an agreement on the pre-construction services contract. On April 14, 2025, City Council gave staff direction to initiate negotiations with PCL Construction, Inc., the second-ranked firm during the qualification process.
Staff is seeking Council approval to award the pre-construction services agreement to PCL Construction, Inc. for the amount of $339,214.96.
RECOMMENDATION / SUGGESTED MOTION:
I MOVE TO ACCEPT AND AWARD THE PRE-CONSTRUCTION SERVICES AGREEMENT TO PCL CONSTRUCTION, INC. IN THE AMOUNT OF $339,214.96 FOR THE WEST WASTEWATER TREATMENT PLANT EXPANSION PROJECT.
Fiscal Impact
- IS THERE FISCAL IMPACT ASSOCIATED WITH THIS ITEM:
- Yes
- CITY/STATE/FEDERAL FUNDS:
- City
- TOTAL:
- $339,214.96
- BUDGETED AMOUNT:
- $6,000,000.00
- AVAILABLE AMOUNT TO TRANSFER:
- N/A
- ACCT NAME & GL#/REMAINING BALANCE BEFORE PURCHASE:
- Capital Outlay - CIP / 310-311-90015 / $1,619,070.78
FISCAL IMPACT STATEMENT (IF THIS IS A BUDGET TRANSFER, YOU MUST ATTACH THE BUDGET ADJUSTMENT FORM):
Pre-Construction Services are to be provided by a contractor during the design phase of the CMAR delivery method. During this process, PCL Construction, Inc. will produce a Guaranteed Maximum Price (GMP), which, if agreed by the City of San Luis, will then become the final cost of the project. A construction services agreement must be signed for the construction phase of the project.
The engineer's cost estimate (at 30% design) for the construction of the project is $26M.
The engineer's cost estimate (at 30% design) for the construction of the project is $26M.