Loading...
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 8 Packet Pg. 131 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 8 Packet Pg. 132 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. 8.a Packet Pg. 133 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 2 ( 1 2 6 2 : L O V R C M A m e n d m e n t 2 ) Page intentionally left blank.