HomeMy WebLinkAbout03-01-2016 Item 08 Amendment to Construction Management Services agreement with MNS Engineers for LOVR at US 101 Interchange Improvement Project Spec 99821
Meeting Date: 3/1/2016
FROM: Daryl R. Grigsby, Public Works Director
Prepared By: Barbara Lynch, Deputy Director of Public Works
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. 2 to the Construction Management
Services Agreement with MNS Engineers, dated July 1, 2014, increasing their contract by
$297,354, bringing the total contract allowable monthly cumulative payments from $2,352,870
to $2,650,224 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.
On July 1, 2014, the City Manager awarded a contract to MNS Engineers to provide construction
management services for the project. The initial agreement language limited the cumulative
payments to $418,835 as a preventive measure to control spending until additional funding was
available. Additional funding became available on September 16, 2014, when Council approved
the bond financing required to fund the remaining project costs. At that time Amendment 1 to
the Agreement in the amount of $1,934,035, was executed to bring allowable billing to the full
estimated costs for the construction management team, through the project closeout. Amendment
1 to the contract was executed on October 29, 2014.
Amendment
The original MNS budget proposal anticipated the construction phase to finish in February 2016;
however, continued work by the Construction Management firm is needed to complete the
project. This Amendment covers the extended work period as well as additional services
provided. The additional services resulted primarily from three large Contract Change Orders
(CCO’s), covering earthwork quantity errors, large pile driving increases, and the waterline
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relocation, that accounted for approximately half of the project construction contingency
balance. When large unanticipated construction changes occur, construction management also
incurs additional expenses. MNS has accumulated more than $140,000 in additional inspection,
surveying, and administration costs related to the CCOs. Amendment No. 2 will also provide
construction oversight for the additional paving work on Calle Joaquin authorized by the Council
at their January 5, 2016 meeting. Therefore, to account for additional months of construction
and additional services needed for CCOs, a contract amendment is recommended. As the
construction phase approaches completion, the consultant construction management team is
being reduced as the workload decreases.
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 most
project expenses covered by a $16,000,000 STIP RIP Grant, with 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. Funding for increased
Construction Management services will come from the remaining project management funding.
Contract Project Management savings totaling $570,000 are available to support this request, and
are the result of a reduced contract length for the contract Project Manager. At this time
approximately $2,000,000 remains unallocated in the project budget. This will reduce that to
$1,700,000.
Construction Management Services
Original Agreement $ 418,835
Amendment 1 $ 1,934,035
Amendment 2 (Proposed) $ 297,354
Total Construction Management Budget: $ 2,650,224
ALTERNATIVE
Do not approve Amendment 2. Council could choose not to approve Amendment 2. 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 2
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AMENDMENT NO. TWO
TO AGREEMENT
THIS AMENDMENT NO. 2 TO AGREEMENT is made and entered in the City of San Luis Obispo on
Tuesday, March 1, 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, the City desires to amend the monthly cumulative payment amount limit from
$2,352,840 to $2,650,224 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:
Monthly cumulative payment amount is limited to $2,650,224 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.
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