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HomeMy WebLinkAbout05-17-2016 Item 16 LOVR Interchange CM Services Contract Amendment Meeting Date: 5/17/2016 FROM: Daryl R. Grigsby, Public Works Director Prepared By: Kyle Rowland, Project Manager SUBJECT: AMENDMENT TO CONSTRUCTION MANAGEMENT SERVICES AGREEMENT WITH MNS ENGINEERS FOR LOS OSOS VALLEY ROAD AT US 101 INTERCHANGE IMPROVEMENT PROJECT, SPECIFICATION NO. 99821 RECOMMENDATION Authorize the City Manager to execute Amendment No. 3 to the Construction Management Services Agreement with MNS Engineers, dated July 1, 2014, increasing the contract by $175,806, bringing the total contract allowable monthly cumulative payments from $2,650,224 to $2,826,030 for the remainder of the contract. DISCUSSION Background On April 1, 2014, the City Council authorized inviting proposals for Construction Management (CM) Services for the Los Osos Valley Road - Highway 101 Interchange Project, Specification No. 99821, and authorizing the City Manager to award a contract up to $2,408,315. After evaluation of all applicant proposals and interviews, MNS Engineers Inc. ranked the highest. The anticipated total cost for the multi-year contract (pre-construction, construction, and post- construction) was $2,352,870. Since contract award, two previous amendments to the original agreement have been executed. Amendment No. 1, on October 29, 2014, released the remainder of the contract value when the Council approved bond financing became available to fund the consultant contracts for the project. Amendment No. 2, on March 1, 2015, increased the total contract value by $297,354 due to unforeseen circumstances resulting in an increased construction timeframe and required extra services encountered during construction. Amendment The proposed Amendment No. 3 will cover all anticipated Construction Management tasks that are remaining to close out the project. These tasks have increased due to the additional construction oversight that is required as the contractor finalizes construction of the project. Some of the additional and unexpected construction work that has recently come up is: (1) additional paving to repair failing rubberized asphalt concrete on U.S. 101; (2) additional San Luis Obispo Creek rock slope protection required by the Central Coast Regional Water Quality Control Board; and (3) curb ramp reconfiguration and repair. All three of those items were 16 Packet Pg. 356 unexpected construction changes which require additional construction management expenses. FISCAL IMPACT The Interchange project is identified in the 2013-15 Financial Plan, Appendix B – Capital Improvement Plan, page 3-252 through 3-255. Council approved the project financing at the June 10, 2014 Council meeting. The project is partially grant funded, with 88.53% of eligible expenses covered by a $16,000,000 STIP RIP Grant and bonds funding the remaining 11.47%. The bond payments are secured by the General Fund but will ultimately be reimbursed by the City’s Traffic Impact Fees and the LOVR Sub Area Impact Fee programs. The utilization of the project grant will be maximized during the construction. At this time, approximately $1,700,000 remains unallocated in the project budget, of which $175,806 will fund the proposed Amendment No. 3. The remaining account balance will be approximately $1,525,000. Construction Management Services Original Agreement $ 418,835 Amendment 1 $ 1,934,035 Amendment 2 $297,354 Amendment 3 (Proposed) $ 175,806 Total Construction Management Budget: $2,826,030 ALTERNATIVE Do not approve Amendment 3. Council could choose not to approve Amendment 3. The Interchange project is significant not only in the regional impact of its construction but in the high cost and grant obligations associated with the funding. It is critical to keep the construction team on the job to ensure complete and accurate records for the job, in its entirety. In that way, clear and uniform information will be available for auditing. The contract services also supplements City resources on labor intensive specialized set of duties. This allows City resources to maintain the service levels for typical daily duties. For these reasons, this alternative is not recommended. Attachments: a - 99821 CM Amendment 3 16 Packet Pg. 357 AMENDMENT NO. THREE TO AGREEMENT THIS AMENDMENT NO. 3 TO AGREEMENT is made and entered in the City of San Luis Obispo on Tuesday, May 17, 2016, by and between the CITY OF SAN LUIS OBISPO, a municipal corporation, herein after referred to as City, and MNS ENGINEERS INC., hereinafter referred to as Contractor. WITNESSETH WHEREAS, on Tuesday, July 1, 2014 the City entered into an Agreement with Contractor for Construction Management Services for Los Osos Valley Road-Highway 101 Interchange Project per Specification No. 99821; and WHEREAS, on Wednesday, October 29, 2014 the City amended the monthly cumulative payment amount limit from $418,835 prior to November 1, 2014 to $2,352,870 for the remainder of the contract; and WHEREAS, on Tuesday, March 1, 2016 the City amended the monthly cumulative payment amount limit from $2,352,870 to $2,650,224 for the remainder of the contract; and WHEREAS, the City desires to amend the monthly cumulative payment amount limit from $2,650,224 to $2,826,030 for the remainder of the contract 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 below: Monthly cumulative payment amount is limited to $2,826,030 for the remainder of the contract unless adjusted by addendum. 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. CITY OF SAN LUIS OBISPO By: ____________________________ Katie Lichtig, City Manager APPROVED AS TO FORM: CONTRACTOR _____________________________ By: ____________________________ City Attorney MNS Engineers, Inc. 16.a Packet Pg. 358 At t a c h m e n t : a - 9 9 8 2 1 C M A m e n d m e n t 3 ( 1 3 3 6 : A m e n d m e n t t o C M S e r v i c e s f o r L O V R I n t e r c h a n g e , S p e c . 9 9 8 2 1 ) Page intentionally left blank.