Department of Utilities
Reference: Carollo Water Treatment Plant Owner’s Representative Service- Amendment #1
To: Mayor Gregory Mills and Members of City Council
Through: Michael P. Martinez, City Manager
Prepared By: Scott Olsen, Director of Utilities
Date Prepared: December 22, 2025
PURPOSE
Requesting City Council’s approval for the amendment of 22-007662 Owner's Representative for Water Treatment Plant by amending the contract to Carollo Engineers, Inc, and approving the resolution giving the City Manager, or designee, authority to sign the contract amendment. Per City Code Section 3-8-170, “All change orders or amendments shall be processed through the Finance Department. Department directors shall have authority to approve individual amendments or change orders up to the department director’s aggregate signing authority for the total contract price. The City Manager shall have the authority to approve individual amendments or change orders, in the aggregate, up to the City Manager’s signing authority or up to ten percent (10%) of the original contract amount, whichever is higher. All other amendments or change orders shall be approved by the City Council, as appropriate, based on the signing authority established in this Article.”
BACKGROUND
This item was originally presented to City Council at the January 13, 2026 City Council Study Session.
The original contract for Owner’s Representative Services for the Water Treatment Plant between the City and Carollo Engineering, Inc., was entered into on October 12, 2022 in the amount of $6,300,482.
At the time of contract execution, the project construction timeline given to prospective proposers was December 2025. Subsequent to accepting Carollo’s proposal, the Water Treatment Plant Project was redesigned and the construction timeline extended.
At this time, the entire original contract amount has not been spent, but not all tasks have sufficient budget left to get through project completion. More specifically, the Project Management, Administrative Support, and Resident Engineering tasks have sufficient funding left to get through project completion, even with an increase in average Resident Engineer time per week dedicated to this project.
The original contact included funding for treatment plant Start-up and Commissioning Support, however, that budget was reallocated to design and cost estimate reviews, risk register and value engineering workshops, and additional design and construction meetings. Amendment #1 again allocates funding for Start-up and Commissioning Support.
The Field Engineering task has remaining budget, but will get additional funding through Amendment #1. The Inspections task budget has been exhausted and needs additional funding through Amendment #1. Lastly, some direct costs, such as milage reimbursement, will receive additional funding via Amendment #1.
FINANCIAL IMPACT
Sufficient appropriation exists in the Water Treatment Plant Project budget and the amount of Amendment #1 has been accounted for in the overall project contingency.
STAFF RECOMMENDATION
Accept the proposed changes to the Contract submitted by Carollo Engineers, Inc in the amount of $1,989,202.00, further described in Amendment #1 to the Contract.
OPTIONS FOR COUNCIL CONSIDERATION
• Approve resolution as drafted, accepting the proposed changes to the contract
• Approve a modified resolution
• Deny resolution
• Provide further direction to staff
ATTACHMENTS
• Resolution
• PowerPoint presentation