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Home My WebLink About04/03/2007, C3 - NEW BISHOP WATER STORAGE TANK SPECIFICATION NO. 90232B o • council o ro3i2007 j ac En as REpoRt ".�b. 63 CITY OF SAN LUIS OBISPO FROM: Jay D. Walter,Director of Public Works Prepared By: Matt Horn, Supervising Civil Engineer SUBJECT: NEW BISHOP WATER STORAGE TANK SPECIFICATION NO. 90232B CAO RECOMMENDATION Approve an amendment to an Agreement with Advantage Technical Services, Inc in the amount of$15,400 for additional construction inspection services associated with the New Bishop Water Storage Tank, Specification Number 90232B and authorize the Mayor to execute the Amendment. DISCUSSION Background The existing Bishop water storage tank was identified in the Water System Master Plan as a system deficiency. The Water System Master Plan recommended upgrading the existing water storage tank. Increased storage capacity at this site provides increased fire protection and enhanced operational reliability and flexibility. On October 7, 2003, the City Council authorized an agreement with Black and Veatch Corporation to prepare plans and specifications for a new 750,000 gallon water storage tank. Because new tank required a larger site, staff pursued and obtained from the County of San Luis Obispo a larger easement for construction of the new tank construction. On December 6, 2005 the City Council authorized the purchase of the easement. On December 23, 2005 the easement closed escrow and was recorded. On January 17, 2006, the City Council approved the plans and specifications for the New Bishop Water Storage Tank and authorized staff to advertise for bids. The project was advertised and on March 10, 2006 the CAO awarded the construction contract to Wysong Construction. Due to the nature of this construction, specialized construction inspection services were solicited and obtained from Advantage Technical Services, Inc (ATS). ATS furnished a proposal for welding and coating inspection services and on March 14, 2006 a purchase order was awarded to ATS for these construction inspection services. On April 26, 2006, a pre-construction conference was held with Wysong Construction and on May 8, 2006 construction began. The Bishop Water Storage Tank Contract required maximum construction duration of 240 calendar days unless modified by amendment or change order. If the contract was unmodified by amendment, the anticipated construction completion date was January 3, 2007. C3 -/ Council Agenda Report—New Bishop Water Storage Tank Page 2 Reason for Contract Amendment The New Bishop Water Storage Tank is still under construction. Amendments or change orders have added 16 calendar days to the contract bringing the contractual time for construction to 256 calendar days. At the time of this report, the anticipated project completion date is April 6, 2007, far past the contractual completion date of January 16,2007. Liquidated damages are contract clauses that allow a contractor to compensate an owner, in this case the City, for additional time and expense the owner incurs due to increased construction duration. The Bishop Water Storage Tank contract has provisions for liquidated damages in the amount of$1,500 per calendar day. Staff is anticipating, and the contractor is aware, at the actual completion date of this project liquidated damages will be in excess of$100,000. Due to the increased construction duration,Advantage Technical Services,Inc. (ATS)has requested additional funding. ATS has provided a proposal based on the Contractor's current construction schedule and anticipated project completion date in April. If the Contractor performs as proposed by the current construction schedule, this amendment will allow ATS to complete the remaining specialized areas of inspection required by the new bishop tank's construction. FISCAL IMPACT The new bishop water storage tank project account currently has an unencumbered balance of $331,922 to support this request. Project's Construction Funding Project's Current Construction Costs Construction $1,500,000 Construction Contract Amount $1,312,800 Construction Contingencies $150,000 Construction Contingencies Used $7,941 Construction Inspection $24,000 Construction Inspection $24,000 Materials Testing $15,000 Materials Testing $12,337 Total $1,689,000 Total $1,357,078 Funds Available Prior to Contract Amendment $331,922 Contract Amendment Amount $15,400 Remaining Funds After Amendment $316,522 Note: Fiscal impacts do not include any liquidated damages that will be assessed to the contractor. ATTACHMENT Contract Amendment G:\Staff-Reports-Agendas-Minute\_CAR\2007\C[P\90232 Bishop WaterTank\90232 Bishop Water Tank Ammend ATS.doc e,.5 -z OATTACHMENT AMENDMENT 1 TO AGREEMENT THIS AMENDMENT TO AGREEMENT is made and entered into in the City of San Luis Obispo on April 3, 2007, by and between the CITY OF SAN LUIS OBISPO, a municipal corporation, herein after referred to as City,and Advantage Technical Services,Inc,hereinafter referred to as Consultant. WITNESSETH: WHEREAS, on March 14, 2006 the City entered into an Agreement with Consultant for construction inspection services for the New Bishop Water Storage Tank Project Specification No.9023213;and WHEREAS, the City desires to amend the scope of services due to an increase project construction duration and Consultant 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: CONSULTANT By: t Att ey ADVANTAGQTECHNICAL SERVICES, A SPECIALTY GINEERING AND INSPECTION COMPANY' ACHMENTIXHIBIT March 3,2007 Mr.Matt Horn Project Manager City of San Luis Obispo 955 Morro St. San Luis Obispo,CA 93401 RE:Budget Increase Request for Construction Inspection on the New Bishop Street Welded Water Storage Tank Dear Matt: I am writing to request an increase in our budget for the construction observation services for the Bishop Street Reservoir. As per our conversations and recent E-mail,ATS is finding that the coating phase of the project is requiring significantly more inspection time than estimated. The construction observation hours are higher than what we estimated due to two main factors. First,our percent of coverage is higher than normal because the subcontractor's quality control is less than what we assumed when estimating. Quality problems also require additional time for observation of rework. The project schedule is the other factor that is causing increased time on the project. The painting contractor's manpower,procedures and scheduling have,and continue to,create situations where our quality assurance presence is less efficient than what we perceive as industry standard. These inefficiencies include overtime,lost time on site when contractor is late starting,or dealing with problems. The additional budget required is based on the following: • Approximate current cost overage for inspection/mileage:$6,400 • Additional days estimated by Painting Subcontractor: 10 plus 2 contingency days • Coverage per day: 10 hours(allowance for overtime included) • Budget for Additional days:$9,000 • Total additional cost for inspection:$15,400 Advantage Technical Services understands that you would like us to continue our work to assure that the contractor is in compliance with the contract specification. Please contact me if you need additional information regarding the issues involved with this request. Thank you. Sincerely, Advantage Technical Services,Inc. :i A4/� exe_- William D.Bellis,P.E. Principal I I 8681 FERN CANYON RD. SAN LUIS OBISPO, CA 93401 PH. 805-595-2282 II � 3 -y