HomeMy WebLinkAbout10/19/2004, C13 - WATER REUSE PROJECT - CONSTRUCTION MANAGEMENT SERVICES council �+ 19,Zooy
j acEnba Repout �I"n
CITY O F SAN LUIS OBISPO
FROM: John E. Moss,Utilities Director
SUBJECT: WATER REUSE PROJEC — ONSTRUCTION MANAGEMENT SERVICES
CAO RECOMMENDATION
1. Approve Amendment #1 to the agreement with Tetra Tech, increasing compensation for
extended construction management services for the Water Reuse Project in an amount not
to exceed$489,411.
2. Approve the transfer of $489,400 from the project contingencies account to the
construction management account to fund the extended services.
DISCUSSION
Background
The City began construction of the Water Reuse project in August of 2003. The project
construction consists of two separate construction contracts. A contract for construction of the
water reuse distribution pipeline ($5.0 million) was awarded to J. Fletcher Creamer. A second
contract for construction of improvements to the Water Reclamation Facility ($5.4 million) was
awarded to Pacific Mechanical Corporation (PMC). Engineering and design of the
improvements for both projects was completed by Brown and Caldwell Consultants, and
construction management services for both construction contracts is being completed by Tetra
Tech.
The current contract agreement with Tetra Tech was for construction management services
through September 15, 2004 (estimated time to complete construction) with roughly an
additional 30 days for project closeout. Construction management services included services
beginning in October 2002 with Design Review/Bid/Award phase services and transitioning to
Construction Management phase services beginning in August of 2003. The total contract
agreement with Tetra Tech for these services was $768,582.
Project History and Status
The construction of the water reuse distribution system pipeline contract is nearly complete and
only project closeout and punch list work retrains. This project has had relatively few issues of
any significance. Considering change orders and increased/decreased quantities, the project was
completed for $4.9 million. There remains one outstanding issue, a claim for extra work related
to the finish paving of the trenches. This claim is currently proceeding through our construction
claims resolution process and staff anticipates final resolution favorable to the City. Overall the
City was pleased with the performance of the contractor,J. Fletcher Creamer, on this project.
A variety of difficulties have been encountered on the Water Reclamation Facility Improvements
portion of the project that have delayed the project and result in increased costs. These reasons
Water Reuse Project—Construction Management Services Page 2
are explained in greater detail in a confidential attorney client memorandum from the City
Attorney to the City Council.
Contract Schedule and Additional Construction Management Services
The construction contractor has recently submitted a revised construction schedule that shows
project completion by June of 2005. This will require an additional 9 months of construction
management services from Tetra Tech. Based on discussions and negotiations with Tetra Tech,
staff is requesting Council approval of Amendment #1 to the agreement with Tetra Tech,
increasing the contract funding by $489,411 to cover both the existing deficit of $19,029 for
services beyond the original scope of work through September 17, 2004 and $470,382 for
construction management services for an additional 9.5 months through project completion based
on the contractor's most recent schedule update.
Staff has worked closely with Tetra Tech in defining and limiting the services to be provided, in
an effort to minimize future construction management services costs while still providing full
construction management services. Additionally, we have identified opportunities for staff to
play an expanded role in assisting the construction manager in the administration of this project.
This will result in increased time and effort on the part of City Utilities staff and a reprioritization
of duties for our Water Projects Manager until this project is completed.
With the extended construction schedule, staff anticipates that additional funding will also be
required for our office engineering services contract with Brown and Caldwell. Staff will return
to Council with a separate item when additional costs associated with that contract are identified.
CONCURRENCES
The City Engineer has been involved in discussion of the issues associated with this project and
concurs with the recommended action.
FISCAL IMPACT
The current agreement for construction management services with Tetra Tech was for an amount
not to exceed $768,410. The estimated additional funding required for construction management
services through project completion is estimated at $489,411, bringing the total cost of the
construction management services agreement with Tetra Tech to $1,257,821. There is currently
$1,058,075 available in the Water Reuse project budget as project contingency funding. Staff
recommends that the additional funding to support this request ($489,411) come from that
project contingency funding. This will leave $568,664 as available contingency funding for
project completion.
Staff will, consistent with our policies, return to Council with additional information as the
project proceeds, and at a minimum, will return with a full project status report and projection at
the point our contingency expenditures exceed 75%of available funding.
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Water Reuse Project—Construction Management Services Page 3
ALTERNATIVES
Staff has reviewed various alternatives to the recommended action including seeking
construction management services from another firm and completing the construction
management services with our own in-house resources, or a combination of the two. These
alternatives were found not feasible given the complexity of the project and project issues, and
the limited availability of staff resources with the skills and time to complete such an assignment.
Hiring a new construction management firm would not likely result in any savings and would
require time to complete a new agreement that we just don't have. Additionally, interjecting new
construction management personnel into an already contested and strained project relationship
with the construction contractor would not be advisable.
ATTACHMENT: Amendment#1
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Attachment
AMENDMENT TO AGREEMENT
(Amendment#1)
THIS AMENDMENT TO AGREEMENT is made and entered in the City of San Luis Obispo on this
day of ,by and between the CITY OF SAN LUIS OBISPO,a municipal
corporation,herein after referred to as City,and TETRA TECH,INC.,hereinafter referred to as Contractor.
WITNESSETH:
WHEREAS, on September 19, 2002 the City entered into an Agreement with Contractor for Construction
Management Services for the Water Reuse Project Construction;and
WHEREAS, the City desires to amend the scope of services to include an extension of the term of said
services 9.5 months through completion of construction which has fallen behind schedule, and Contractor has
submitted a proposal for this purpose that is acceptable to the City.
NOW THEREFORE, in consideration of their mutual promises, obligations and covenants hereinafter
contained,the parties hereto agree as follows:
1. The scope of services and related compensation is hereby amended as set forth in Exhibit A
attached hereto.
2. All other terms and conditions of the Agreement remain in full force and effect.
IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day and year
first written above.
ATTEST: CITY OF SAN LUIS OBISPO
By:
City Clerk Mayor
APPROVED AS TO FORM: CONTRACTOR
By:
it orney
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Exhibit A
TETRA TECH, INC.
October 6,2004
Mr. John Moss
Utilities Director
City of San Luis Obispo
879 Morro Street
San Luis Obispo,CA 93401
Reference: City of San Luis Obispo
Water Reuse Project Construction Management
Proposal for Continuation of Services
Dear Mr. Moss:
Per your request,Tetra Tech proposes to continue performance of construction management services
as defined in our original proposal dated May 30, 2002 and per the attached tables. We have strived
to perform this assignment in a cost effective and efficient approach,however unforeseen issues have
arisen that prompt this proposal for the continuation of our construction management services. Also
attached is our Standard Hourly Rate Schedule for your use. Please note on the attached table that we
have included credits to the City for the Recycled Water Pipeline construction observation which was
completed 2 months ahead of scheduled, for Contract Administrator services that were not required,
and budget that is remaining as of September,2004.
Please feel free to contact me if you have any questions or need additional information.
Sincerely,
4-1
Robert J. Ohlund,P.E.
Divisional Vice President
RJO/tic
J:\02929\0001.90\L-01lpo_Variance IE Letter.doc(100)
Attachment
811 Palm Street,San Luis Obispo,CA 93401
Tel:805.542.9052 Fax:805.542.9254
www.tetratech.com
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TETRATECH, INC.
EXHIBIT"A"
2005
HOURLY CHARGE RATE AND
EXPENSE REIMBURSEMENT SCHEDULE
Professional Survey/Manning
Engineering Intcm/rechnician/Assistant...$ 50.00 Survey Technician I...................................$ 92.00
Designer/CAD Operator/Engineer I...........$ 92.00 Survey Technician II/Field Supervisor......$ 105.00
Engineer II and III/Senior Designer ..........$ 105.00 Senior Surveyor.........................................$ 120.00
Biologist.....................................................$ 105.00 Project Surveyor........................................$ 140.00
Planner.......................................................$ 105.00 Two-Person Survey Party..........................$ 190.00
Senior Engineer/Landscape Architect........$ 120.00 Two-Person Survey Party with GPS..........$230.00
Project Engineer/Project Coordinator........$ 135.00 Three-Person Survey Party........................$272.00
Senior Planner............................................$ 145.00 Survey Travel Time(Two-person).............$ 90.00
Senior Scientist..........................................$ 145.00 Survey Travel Time(Three-person)...........$ 127.00
Project Manager/Sr.Project Coordinator...$ 150.00
Senior Project Manager...............................$ 165.00
Program Director/Project Director.............$200.00
Administrative Construction Management
Administrative Clerk...................................$ 49.00 Construction Observer...............................$ 80.00
Word Processor/Admin.Support...............$ 60.00 Senior Construction Observer....................$ 89.00
Graphic Designer.......................................$ 98.00 Resident Engineer.......................................$ 125.00
Construction Manager................................$ 150.00
Reproduction,special photography,postage,delivery services,express mail,out-of-area telephone calls,printing
and any other services performed by subcontractor,will be billed at cost plus 15%.
Reimbursable In-House Costs
Photo Copies(B&W 8.5"xI I")......$ 0.10/Each Large Format Copies .....................$0.30/S.F.
Photo Copies(B&W II"xl7")........$ 0.35/Each Computer Time ...$10.00/Hour
Color Copies(up to 8.5"xI l")........$ 1.50/Each Mileage...........................................$0.40/Mile
Color Copies(to l l"x 17")..............$ 2.50/Each
Compact Disks................................$10.00/Each
NOTE: All rates are effective to October 1,2005.There will be a negotiated increase in rates,5%minimum per
year,for contracts extending beyond October 1,2005
J:\02929\0001.90\L-01Ido_ExhibitACAAAM.2005dw.doc n ,
WATER REUSE PROJECT
Construction Management Variance No. 1 Estimated Breakdown
Labor Hours by Staff Clasiflcation Fees
Task Task Description Sr.PM I Cont.Adm RE I Inca Adm Sup Total Labor Reimb Totals
Hours
Task Construction Phase Services
a. RWrSump Settlement
1. Documentation of initial oondition/actions 24.0 i 24.0 $3,720 ,(No charge)
2. Coordination w/City/Designer/Geo 1 32.01 65.01 i 1 97.01 $12,760 1 ; $12,760
3. Coordination w/Contractor 40.0 40.01 $4,800 I $4,800
b. WRF Design Revisions requestedbyCity - - .0 $0 ! 80
1. Coordination w/City 8 Designer 28.0 4.0 32.0 $3,584 $3,584
2. PCO Negotiation assistance 16.0 4.0. 20.0 $2,144 $2,144
c. RFI/RFC/FM Coordination&Response .0 $0 $0
1. Sodium Hypochloride Feed Facility2.0 18.0 4.0; 24.0 $2,694 .$2,694
2. CCT channel connections to existing structure 2.0 8.0 4.01 14.0 $1,494 $1,494
3. CCT slab channel steel reinf bars sizing and placmn '2.08.0 - 4.0� 14.0 $1,494 $1,494
4 CCT West channel added detailstredesign 13.0 4.01 17.0 $1,784 $1,784
5 CCT Gate CCV 413 opening size/elev of CCT walls 8.01 1 4.0 12.0 $1,184 $1,184
6 8 in Tank Drain Over excavation 8.01 1 4.0 12.0 $1,184 $1,184
7 RWT steel reinforcing configurations 4.01 24.01 1 4.01 32.0 $3,724 $3,724
8 RWT pump/gate placement/brackets,9ate operator 8.01 4.01 12.0 $1,184 $1,184
9 CCT walkway conflict with valve. 2.0 8.0 4.01 14.0 $1,494 $1,494
10 CCT safety hand railing alignment,transitions 8.0 4.01 12.01 $1,184 1 1 $1,184
11 Plain Concrete spec,related steel rebar requinnnts 1 4.0 4 $704 $704
12 Site Bev.site improvements _ 2.01 24.0 4.0 i 30.0 $3,414 r- $3,414
13 Aqua Ammonia storage structure rebar detailing. 4.0 8.01 12.0 $928 i $928
14 10"1 W Pipeline alignment and quantities _ _ 4.0L__ 16.0 4.0 24.01 $2,764 I $2,764
15 Chemical supply and feed area detailing 2.01 36.0 4.01 42.01 $4,854 i $4,854
16 Site drainage catch basin el.,drain sizingfmaterial 2.0 4.0 4.0 10.0 $1,014 , $1,014
17 Misc.Issues/Coordination/Design Revisions 12.01 96.0. 98.01 206.01 $18,868 r $18.868
d. PCO Coordination,negotiation assistance 28.0 120.0 62.0 210.Oj $22,212 $22,212
e. Broad/Madonna Night Work 24.0 35:0 4.0 63.0 $5,904 $5,904
f. Pavement Inventory 30.0. 48.0 4.0 82.0 $7,664 $582 1 $8,246
g Prado Bridge Redesign 24.0 4.0 28.0j $3,104 1 $3,104
h Broad St Rubble/Voids/Caltran Relations 48.0 4.0 52.0 $5,984 I $5,984
i. CM services-Constrext 9/18/04 to 6/24/0: 328.0 2147.0 1280.0 3427.0 $396,735 $73,647 $470,382.
Credits to City
a. Construction Observation.(pipeline completed early) 360) (360) ($28.800) (528.800)
b. Contract Administration(performed byResident Engineer),,,._,_.._...__...._....... (42)......._..........__ ...
c. Remaining contract amount as of 9/15/04 ($62,211) ($3,834)1 ($66,045)
f
Totall 4461 (42) 2937 (277)1 15321 4168- $422,7361 $70,395 $489,411
Assumptions-
1. This proposal is an extension of Tetra Tech's May 20,2002 Water Reuse Proposal.
2. Construction completion assumed to extend from 9/18/04 to 5/24/05 including punchlist,startup testing,etc.+1 mo dose out.
3. Construction effort to be monitored monthly versus estimated monthly breakdown provided on other spreadsheet.
J:t0292910001.901-011do-SLO Water Reuse Variance l E TETRA TECH INr - -
11:03 AM on 10/6@004
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