HomeMy WebLinkAbout08/01/2006, C10 - WATER REUSE PROJECT - TETRA TECH CONTRACT AMENDMENT council app
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CITY O F SAN LUIS O 1 S P 0
FROM: John E. Moss, Utilities Directo
Prepared by: Katie DiSimone, Water Projec ger YLm
SUBJECT: WATER REUSE PROJECT—TETRA TECH CONTRACT AMENDMENT
CAO RECOMMENDATION
1. Approve Amendment #3 to the agreement with Tetra Tech, providing retroactive
compensation for extended construction management services for the Water Reuse
Project in an amount not to exceed$35,247.
2. Approve the transfer of $35,247 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 2003. The project
construction consisted of two separate construction contracts; one for the pipelines and one for
the Water Reclamation Facility(WRF) improvements. The recycled water pipelines construction
was completed on-time in September .2004. The WRF improvements were only recently
completed in May 2006, nearly 20 months later than the original contract allowed time.
Tetra Tech provided construction management services for both portions of the construction.
Tetra Tech staff performed inspections; coordinated and participated in submittal reviews, and
assisted the project engineers (Brown and Caldwell) with the response to informational requests.
Tetra Tech provided daily records of the construction activities and coordinated weekly
construction meetings with the Contractor and City.
Contract Schedule and Additional.Construction Management Services
The original total contract agreement with Tetra Tech for construction management services was
$768,582 for services through September 2004. 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). Amendment #2 took the construction management services contract out to a projected
completion date of January 2006. City staff and Tetra Tech were able to stretch those contract
funds an additional 4 months, through April 2006. However, the project took an additional
month for completion, and therefore this proposed Amendment #3 covers the work through
project close-out in May 2006. No additional amendments will be necessary for Construction
Management services, as construction has been completed.
Water Reuse Project—Construction Management Services Page 2
Specification No.99124-90554
Liquidated damages in the amount of $2,000 per day were assessed for the delayed project
completion of the WRF improvements. 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, including $200 per
day for failure to submit monthly schedules, was $1,279,800. These funds have been used to
fund contract extensions, such as the one proposed herein.
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
$1,622,180, including both the original contract and Amendments #1 and 2. There is
$456,605.47 available in the Water Reuse project budget as project contingency funding. Staff
recommends that the additional funding to support this request come from that project
contingency funding.
ALTERNATIVES
Few alternatives were available to staff in the completion of the project's construction
management services. 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 full construction management services. Additionally, we 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.
ATTACHMENT
Amendment#3
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Attachment 1
AMENDMENT TO AGREEMENT
(Amendment#3)
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 and 2 to extend the term of said services by 15
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 1 additional month through completion of construction, 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$35,247 is hereby amended
as set forth in Exhibit A attached hereto.
2. All other terms and conditions of the Agreement and Amendments #1 and 2 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:
City Attorney Tetra Tech
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