HomeMy WebLinkAbout04/15/2008, C7 - CONSTRUCTION INSPECTION AND MANAGEMENT SERVICES, SPECIFICATION NO. 50410.7227.2007 Councit Apnl15, 2008
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CITY OF SAN LU I S O B 1 S P 0
FROM: Jay D. Walter, Director of Public Works
Prepared By: Michael J. McGuire, Engineer III M-M
SUBJECT: CONSTRUCTION INSPECTION AND MANAGEMENT SERVICES,
SPECIFICATION No. 50410.7227.2007
CAO RECOMMENDATION
1. Authorize the Mayor to execute agreements with the selected on-call consulting firms:
Wallace Group, Penfield & Smith, MNS Engineers, Advantage Technical Services and
MarWal Construction.
2. Authorize the Finance Director to execute Purchase Orders for individual projects to
consultants under agreement.
DISCUSSION
Largely a result of Measure Y generated revenues, the City is presently able to implement a very
aggressive Capital Improvement Plan (CIP). This influx of funding allowed the adoption of the
City's 2007-09 Financial Plan, which contains a significant number of construction projects.
The adopted Financial Plan presents a distinct management challenge for the Public Works
Engineering Section as it is a CIP load larger than any previously undertaken. In implementing
this undertaking it is clear, that in addition to the use of consultant services for design, consultant
services will be needed for construction inspection, too. The City has traditionally used
consultant inspection services for specialty work such as building construction or "coatings
projects". This is because City staff inspectors are largely generalists, experienced in inspection
of routine maintenance projects such as pipelines, street paving, and treatment plant repairs.
As part of the CIP Project Engineering Operating Program, staff advertised a Request for
Qualifications (RFQ) for construction inspection and management services in November, 2007.
This is a routine effort undertaken every few years to provide specialty inspectors on an on-call
basis. The RFQ contained a brief list of projects to give the proposers a good idea of the type of
work they would be involved in. Staff provided examples of heavy construction, utility, bridge,
and building projects. After reviewing sixteen submitted proposals, six were selected for
interviews. From those interviews in February, 2008, five firms were selected to engage in
agreements for construction inspection and management services. Those five firms are Wallace
Group, Penfield & Smith, MNS Engineers, Advantage Technical Services, and MarWal
Construction. These firms were selected based on their experience, personnel, and availability.
This on-call group is larger than historically retained, again, because of the increased workload.
The management of the consultants will be assigned to Public Works Construction Management
staff. The consultants will operate under the conditions of the agreement included in the RFQ
(see Reading File). Consultants will prepare proposals for individual projects based on the work
shown on the plans and outlined in the specifications. The specific project work will then be
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Request for Proposals for Construction Inspection and Management Services Page 2
authorized via a Purchase Order through the Finance Department, referencing the signed
agreement. Where consultants are used, they will have a staff contact to provide oversight,
authorize cost changes and payments, and generally monitor the consultant's work.
Unless a firm states it can not provide inspection for a project, staff intends to contract with a
firm based on specialty and/or project size, and the content of its proposal. There will be a
learning curve for consultants to familiarize themselves with City construction standards and
deliver the level of documentation the City requires to minimize construction claims. The goal is
to minimize the need for ongoing training through strong, consistent relationships with a select
number of consultants, thereby maximizing the ability to efficiently manage project construction.
Because of the need to have consultants who will provide quality service with a minimum of
oversight, staff will routinely evaluate the performance of the consultants—are the proposal costs
reasonable, are they meeting budget, are they familiar with applicable codes and regulations, are
they knowledgeable regarding construction issues? Answers to these questions will assist in
determining if additional work will be given to a particular consultant. If a performance is not
satisfactory, staff will discontinue using an individual consultant. Staff is looking for firms that
are interested in working closely with the City Construction Management Section. Without that
commitment, delivery of the CIP will be even more challenging.
FISCAL IMPACT
The RFQ, in and of itself, did not obligate any funds. Work will be billed to the individual CIP
project accounts, not to exceed the construction management funding authorized by Council
without additional approvals. If no funding was allocated for construction management, staff
will request funding when the project is ready to advertise for construction bids. Fees are
expected to be approximately 15% of the Engineer's Estimate for construction.
ALTERNATIVES
1. Traditional Approach
The City Council could direct staff to proceed in a more traditional fashion, issuing Request for
Proposals (RFP) for individual projects. On the plus side, a company with greater experience in
the specific work might be attracted. On the minus side, this involves considerable work by the
engineering staff, who will have their own projects to manage in addition to managing consultant.
work. Certain projects can still be pulled out for a project specific RFP if it is determined the
selected consultant pool will be unable to provide the expertise needed.
2. In-house Approach
Another alternative is to have the City Council direct staff to complete more of the work in-
house. At this time, Public Works Construction Management is not staffed to deliver the
proposed volume of work. Currently, the department is advertising for a qualified Field
Engineer Assistant to work as a contract employee. This will give staff some additional
resources for smaller projects but there will still be a significant need for consultant resources.
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ATTACHMENT
Sample contract (Note: To save paper .staff has provided a sample contract, the originals are
available in the Council Reading File.)
COUNCIL READING FILE
1. Consultant's contracts: Wallace Group, Penfield & Smith, MNS Engineers, Advantage
Technical Services and MarWal Construction.
2. Request for Qualifications for Construction Inspection and Management Service,
Specification No. 50410.7227.2007.
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AGREEMENT
THIS AGREEMENT is made and entered into in the City of San Luis Obispo on 2008
by and between the CITY OF SAN LUIS OBISPO, a municipal corporation, hereinafter referred to as City, and
I 1, hereinafter referred to as Consultant.
WITNESSETH
WHEREAS, on January 17, 2008, City requested proposals for Construction Inspection and Management
Services: Public Works Department—Engineering Division per Specification No. 50410.7227.2007.
WHEREAS, pursuant to said request, Consultant submitted a proposal that was accepted by City for said
services.
NOW THEREFORE, in consideration of their mutual promises, obligations and covenants hereinafter
contained, the parties hereto agree as follows:
1. Term. The term of this Agreement shall be from the date this Agreement is made and entered, as first written
above, until acceptance or completion of said services.
2. Contract Tenn for On-Call Service Contracts. The services identified in this specification will be used by the
City between May 2008 and May 2010.
3. Contract Extension and Cost Increases for On-call Service Contracts. The term of the contract may be
extended by mutual consent for an additional year. During this extended period, labor rates may be increased
to reflect increased labor costs and overhead at each 1 year contract anniversary, provided the City is notified
of the increases in advance.
4. Termination. If, during the term of the contract, the City determines that the Consultant is not faithfully abiding
by any term or condition contained herein, the City may notify the Consultant in writing of such defect or failure
to perform. This notice must give the Consultant a 10 (ten) calendar day notice of time thereafter in which to
perform said work or cure the deficiency.
If the Consultant has not performed the work or cured the deficiency within the ten days specified in the notice,
such shall constitute a breach of the contract and the City may terminate the contract immediately by written
notice to the Consultant to said effect. Thereafter, neither party shall have any further duties, obligations,
responsibilities, or rights under the contract except, however, any and all obligations of the Consultant's surety
shall remain in full force and effect, and shall not be extinguished, reduced, or in any manner waived by the
termination thereof.
In said event, the Consultant shall be entitled to the reasonable value of its services performed from the
beginning date in which the breach occurs up to the day it received the City's Notice of Termination, minus any
offset from such payment representing the City's damages from such breach. "Reasonable value" includes
fees or charges for goods or services as of the last milestone or task satisfactorily delivered or completed by
the Consultant as may be set forth in the Agreement payment schedule; compensation for any other work,
services or goods performed or provided by the Consultant shall be based solely on the City's assessment of
the value of the work-in-progress in completing the overall workscope.
The City reserves the right to delay any such payment until completion or confirmed abandonment of the
project, as may be determined in the City's sole discretion, so as to permit a full and complete accounting of
costs. In no event, however, shall the Consultant be entitled to receive in excess of the compensation quoted
in its proposal.
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If, at any time during the term of the contract, the City determines that the project is not feasible due to funding
shortages or unforeseen circumstances, the City reserves the right to terminate the contract. Consultant will be
paid compensation due and payable to the date of termination.
S. Ability to Perform. The Consultant warrants that it possesses, or has arranged through subcontracts, all
capital and other equipment, labor, materials, and licenses necessary to carry out and complete the work
hereunder in compliance with any and all applicable federal, state, county, city, and special district laws,
ordinances, and regulations.
6. Sub-contract Provisions. No portion of the work pertinent to this contract shall be subcontracted without
written authorization by the City, except that which is expressly identified in the Consultant's proposal. Any
substitution of sub-consultants must be approved in writing by the City. For any sub-contract for services in
excess of$25,000,the subcontract shall contain all provisions of this agreement.
7. Contract Assignment. The Consultant shall not assign, transfer, convey or otherwise dispose of the contract,
or its right, title or interest, or its power to execute such a contract to any individual or business entity of any
kind without the previous written consent of the City.
8. Inspection. The Consultant shall furnish City with every reasonable opportunity for City to ascertain that the
services of the Consultant are being performed in accordance with the requirements and intentions of this
contract. All work done and all materials furnished, if any, shall be subject to the City's inspection and
approval. The inspection of such work shall not relieve Consultant of any of its obligations to fulfill its contract
requirements.
9. Record Retention and Audit. For the purpose of determining compliance with various laws and regulations
as well as performance of the contract, the Consultant and sub-consultants shall maintain all books,
documents, papers, accounting records and other evidence pertaining to the performance of the contract,
including but not limited to the cost of administering the contract. Materials shall be made available at their
respective offices at all reasonable times during the contract period and for three years from the date of final
payment under the contract. Authorized representatives of the City shall have the option of inspecting and/or
auditing all records. For Federally funded projects, access to records shall also include authorized
representatives of the State and Federal government. Copies shall be furnished if requested.
10. Conflict of Interest. The Consultant shall disclose any financial, business, or other relationship with the City
that may have an impact upon the outcome of this contract, or any ensuing City construction project. The
Consultant shall also list current clients who may have a financial interest in the outcome of this contract,or any
ensuing City construction project which will follow.
The Consultant covenants that it presently has no interest, and shall not acquire any interest—direct, indirect or
otherwise—that would conflict in any manner or degree with the performance of the work hereunder. The
Consultant further covenants that, in the perforrimance of this work, no sub-consultant or person having such an
interest shall be employed. The Consultant certifies that no one who has or will have any financial interest in
performing this work is an officer or employee of the City. It is hereby expressly agreed that, in the
performance of the work hereunder, the Consultant shall at all times be deemed an independent Consultant
and not an agent or employee of the City.
11. Rebates, Kickbacks or Other Unlawful Consideration. The Consultant warrants that this contract was not
obtained or secured through rebates, kickbacks or other unlawful consideration, either promised or paid to any
City employee. For breach or violation of the warranty, the City shall have the right in its discretion; to
terminate the contract without liability; to pay only for the value of the work actually performed; to deduct from
the contract price;or otherwise recover the full amount of such rebate, kickback or other unlawful consideration.
12. Covenant Against Contingent Fees. The Consultant warrants by execution of this contract that no person or
selling agency has been employed, or retained, to solicit or secure this contract upon an agreement or
understanding, for a commission, percentage, brokerage, or contingent fee, excepting bona fide employees or
bona fide established commercial or selling agencies maintained by the Consultant for the purpose of securing
business. For breach or violation of this warranty, the City has the right to annul this contract without liability;
pay only for the value of the work actually performed, or in its discretion, to deduct from the contract price or
consideration, or otherwise recover the full amount of such commission, percentage, brokerage, or contingent
fee.
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13. Compliance with Laws and Wage Rates. The Consultant shall keep itself fully informed of and shall observe
and comply with all applicable state and federal laws and county and City of San Luis Obispo ordinances,
regulations and adopted codes during its performance of the work. This includes compliance with prevailing
wage rates and their payment in accordance with California Labor Code. For purposed of this paragraph,
.construction" includes work performed during the design and preconstruction phases of construction, including
but not limited to, inspection and land surveying work.
14. Payment of Taxes. The contract prices shall include full compensation for all taxes that the Consultant is
required to pay.
15. Safety Provisions. The Consultant shall conform to the rules and regulations pertaining to safety established
by OSHA and the California Division of Industrial Safety.
16. Public and Employee Safety. Whenever the Consultant's operations create a condition hazardous to the
public or City employees, it shall, at its expense and without cost to the City, furnish, erect and maintain such
fences, temporary railings, barricades, lights, signs and other devices and take such other protective measures
as are necessary to prevent accidents or damage or injury to the public and employees.
17. Preservation of City Property. The Consultant shall provide and install suitable safeguards, approved by the
City, to protect City property from injury or damage. If City property is injured or damaged resulfing from the
Consultant's operations, it shall be replaced or restored at the Consultant's expense. The facilities shall be
replaced or restored to a condition as good as when the Consultant began work.
18. Immigration Act of 1986. The Consultant warrants on behalf of itself and all sub-consultants engaged for the
performance of this work that only persons authorized to work in the United States pursuant to the Immigration
Reform and Control Act of 1986 and other applicable laws shall be employed in the performance of the work
hereunder.
19. Consultant Non-Discrimination. In the award of subcontracts or in performance of this work, the Consultant
agrees that it will not engage in, nor permit such sub-consultants as it may employ, to engage in discrimination
in employment of persons on any basis prohibited by State or Federal law.
20. Indemnification for Professional Liability. To the fullest.extent permitted by law, the Consultant shall
indemnify, protect, defend and hold harmless the City and any and all of its officials, employees and
agents ('Indemnified Parties'q from and against any and all losses, liabilities, damages, costs and
expenses, including reasonable attorney's fees and cost which arise out of, pertain to, or relate to the
negligence, recklessness, or willful misconduct of the Consultant.
21. Non-Exclusive Contract. The City reserves the right to contract for the services listed in this proposal from
other consultants during the contract term.
22. Standards. Documents shall conform to City Standards and City furnished templates shall be used.
23. Required Deliverable Products and Revisions. The Consultant will be required to provide documents
addressing all elements of the workscope. As-built plans shall be prepared using City's standardized title
blocks and coversheets. As-built plans may be submitted for review using the full D(24x36)format.
City staff will review any documents or materials provided by the Consultant and, where necessary, the
Consultant will respond to staff comments and make such changes as deemed appropriate. Changes shall be
made as requested or a notation made as to why the change is not appropriate.
As-built documents shall be submitted as camera-ready original, unbound, each page printed on only one side,
including any original graphics in place and scaled to size, ready for reproduction AND one electronic copy
submitted in Adobe Acrobat format including all original stamps and signatures
Electronic files shall be submitted on CD and all files must be compatible with the Microsoft operating system.
Each CD must be clearly labeled and have a printed copy of the directory. Files may be emailed to the City in
lieu of putting them on CD.
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24. Ownership of Materials. Upon completion of all work under this contract, ownership and title to all reports,
documents, plans, specifications; and estimates produced as part of this contract will automatically be vested in
the city and no further agreement will be necessary to transfer ownership to the City. The Consultant shall
fumish the City all necessary copies of data needed to complete the review and approval process.
It is understood and agreed that all calculations, drawings andspecifications, whether in hard copy or machine
readable form, are intended for one-time use in the construction of the project for which this contract has been
entered into.
The Consultant is not liable for claims, liabilities, or losses arising out of, or connected with the modification, or
misuse by the City of the machine-readable information and data provided by the Consultant under this
agreement. Further, the Consultant is not liable for claims, liabilities, or losses arising out of, or connected with
any use by City of the project documentation on other projects, except such use as may be authorized in writing
by the Consultant.
25. Release of Reports and Information. Any reports, information, data, or other material given to, prepared by
or assembled by the Consultant as part of the work or services under these specifications shall be the property
of City and shall not be made available to any individual or organization by the Consultant without the prior
written approval of the City.
The Consultant shall not issue any news release or public relations item of any nature, whatsoever, regarding
work performed or to be performed under this contract without prior review of the contents thereof by the City
and receipt of the City's written permission.
26. Copies of Reports and Information. If the City requests additional copies of reports, drawings,
specifications, or any other material in addition to what the Consultant is required to furnish in limited quantities
as part of the work or services under these specifications, the Consultant shall provide such additional copies
as are requested, and City shall compensate the Consultant for the costs of duplicating of such copies at the
Consultant's direct expense.
27. Attendance at Meetings and Hearings. As part of the workscope and included in the contract price is
attendance by the Consultant at pre-construction and construction close-out meetings. Consultant shall attend
as many"working"meetings with staff as necessary in performing workscope tasks.
28. Requests for Review. The Consultant shall respond to all requests for submittal review or contractor RFI's
within two weeks of receipt of the information from the City.
29. Consultant Invoices. The Consultant shall deliver a monthly invoice to the City, itemized by project work
phase or, in the case of on-call contracts, by project title. Invoice must include a breakdown of hours billed and
miscellaneous charges and any sub-consultant invoices; similarly broken down, as supporting detail.
Payment. For on-call services, the City will pay and the Consultant shall receive compensation as agreed to
on a project by project basis.
The Consultant shall be reimbursed for hours worked at the hourly rates attached to this agreement. Hourly
rates include direct salary costs, employee benefits, overhead and fee. In addition, the Consultant shall be
reimbursed for direct costs other than salary and vehicle cost that have been identified and are attached to this
agreement. The Consultant's personnel shall be reimbursed for per diem expenses at a rate not to exceed that
currently authorized for State employees under State Department of Personnel Administration rules.
30. Payment Terms. The City's payment terms are 30 days from the receipt of an original invoice and acceptance
by the City of the materials, supplies, equipment or services provided by the Consultant(Net 30)..
31. Resolution of Disputes. Any dispute, other than audit, concerning a question of fact arising under this
contract that is not disposed of by agreement shall be decided by a committee consisting of the City's Project
Manager and the City Director of Public Works, who may consider written or verbal information submitted by
the Consultant. Not later than thirty days after completion of all deliverables necessary to complete the plans,
specifications and estimate, the Consultant may request review by the City Council of unresolved claims or
disputes, other than audit, in accordance with Chapter 1.20 Appeals Procedure of the Municipal Code.
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Any dispute concerning a question of fact arising under an audit of this contract that is not disposed of by
agreement, shall be reviewed by the City's Chief Fiscal Officer. Not later than 30 days after issuance of the
final audit report, the Consultant may request a review by the City's Chief Fiscal Officer of unresolved audit
issues. The request for review must be submitted in writing.
Neither the pendency of a dispute, nor its consideration by the City will excuse the consultant from full and
timely performance in accordance with the terms of this contract.
32. Agreement Parties.
City: Richard Fisher Consultant: X
City of San Luis Obispo
919 Palm Street
San Luis Obispo, CA 93401
All written notices to the parties hereto shall be sent by United States mail, postage prepaid by registered or
certified mail addressed as shown above.
33. Incorporation by Reference. City Request for Qualifications Specification No. 50410.7227.2007 and
Consultant's proposal dated 2007, are hereby incorporated in and made a part of this
Agreement.
34. Amendments. Any amendment, modification or variation from the terms of this Agreement shall be in writing
and shall be effective only upon approval by the City Engineer. If, at any time during the project, the consultant
is directed to do work by persons other than the City Project Manager and the Consultant believes that the work
is outside of the scope of the original contract, the Consultant shall inform the Project Manager immediately. If
the Project Manager and Consultant both agree that the work is outside of the project scope and is necessary
to the successful completion of the project; then a fee will be established for such work based on Consultant's
hourly billing rates or a lump sum price agreed upon between the City and the Consultant. Any extra work
performed by Consultant without prior written approval from the City Project Manager shall be at Consultant's
own expense.
35. Complete Agreement. This written agreement, including all writings specifically incorporated herein by
reference, shall constitute the complete agreement between the parties hereto. No oral agreement,
understanding or representation not reduced to writing and specifically incorporated herein shall be of any force
or effect, nor shall any such oral agreement, understanding or representation be binding upon the parties
hereto. For and in consideration of the payments and agreements hereinbefore mentioned to be made and
performed by City, Consultant agrees with City to do everything required by this Agreement, the said
specification and incorporated documents.
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Authority to Execute Agreement. Both City and Consultant do covenant that each individual executing this
agreement on behalf of each party is a person duly authorized and empowered to execute Agreements for such
party.
IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day and year first
above written.
ATTEST: CITY OF SAN LUIS OBISPO:
Audrey Hooper, City Clerk David Romero, Mayor
APPROVED AS TO FORM: CONSULTANT:
Jonathan Lowell, City Attorney By: Consultant
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