HomeMy WebLinkAbout06/07/2005, C6 - WATER REUSE PROJECT- CONSTRUCTION MANAGEMENT SERVICES council Meefi°D�
ac,Enaa Report �K
CITY OF SAN LUIS OBISPO
FROM: John E. Moss, Utilities Director
Prepared by: Katie DiSimone, Water Projects Manager
SUBJECT: WATER REUSE PROJECT—CONSTRUCTION MANAGEMENT SERVICES
CAO RECOMMENDATION
1. Approve Amendment.#2 to the agreement with Tetra Tech, increasing compensation for
extended construction management services for the Water Reuse Project in an amount not
to exceed$364,359.
2. Approve the transfer of $364,359 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 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 Water Reuse Project recycled water pipelines construction was completed on-time in
September 2004. Considering change orders and increased/decreased quantities, the project was
completed for $4.9 million. Overall, the City was pleased with the performance of the
contractor, J. Fletcher Creamer, on this project.
PMC's contract completion date was originally September 15, 2004. PMC's current schedule
shows a projected completion date of November 30, 2005. A variety of difficulties have been
encountered on the Water Reclamation Facility Improvements portion of the project that have
delayed the project and resulted in increased costs. These difficulties and increased costs have
been discussed with the City Attorney and shared with the City Council.
Contract Schedule and Additional Construction Management Services
The original total contract agreement with Tetra Tech for construction management services was
$768,582. Amendment #1 in the amount of $489,411 was signed November 3, 2004 to extend
services to June 2005 (the estimated completion date at that time). This proposed Amendment
#2_would take the construction management services contract out to the new completion date of
November 2005, plus an additional month for project close-out work.
Staff 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 fully o^ I
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Water Reuse Project—Construction Management Services Page 2
construction management services. Additionally, we have already implemented opportunities for
staff to play an expanded role in assisting the construction manager in the administration of this
project. This resulted in increased time and effort on the part of City Utilities staff and a
reprioritization of duties for our Water Projects Manager.
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.
Liquidated damages in the amount of $2,000 per day are being assessed for the delayed project
completion. Liquidated damages are intended to offset the cost to the City for extended services
(such as construction management and engineering) due to contractor-caused delays. The final
total of liquidated damages assessed for this project will be determined at the completion of the
claims process.
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 total for construction management services with Tetra Tech was for an amount not to exceed
$1,257,821, including both the original contract and Amendment #1. There is currently
$765,288.12 available in the Water Reuse project budget as project contingency funding. Staff
recommends that the additional funding to support this request ($364,559) come from that
project contingency funding.
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.
ALTERNATIVES
Staff has reviewed various altematives 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 unfeasible 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
cause further delay to the project. Additionally, interjecting new construction management
personnel into an already contested and strained project relationship with the construction
contractor would not be advisable.
ATTACHMENT
Amendment#2
Attachment
AMENDMENT TO AGREEMENT
(Amendment#2)
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,Specification No.99124.90554A;and
WHEREAS,the City has entered into an Amendment#1 to extend the term of said services by 9.5 months
due to project delays,and
WHEREAS, the City desires to amend the scope of services to include an extension of the term of said
services 7 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 increase not to exceed $364,359 is hereby
amended as set forth in Exhibit A attached hereto.
2. All other terms and conditions of the Agreement and Amendment #1 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:
Ci Atto r 3
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