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Agenda Item 24.
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| City Council Meeting |
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| Subject: |
| Amendment to Professional Services Agreement with Onward Engineering for Additional Construction Management and Inspection Services on Capital Improvement Projects |
| RECOMMENDATION |
| Approve Amendment to Professional Services Agreement. |
| BACKGROUND/DISCUSSION |
On March 17, 2015, the City Council approved a Professional Services Agreement (PSA) with Onward Engineering (OE) to provide Construction Management and Inspection services for various capital improvement and private development projects on an “as-needed (on-call)” basis. The PSA includes a not-to-exceed amount of $250,000 per year with an initial one-year term and provisions for three-one year extensions making the total possible term four (4) years. To date, the PSA term has been extended two times with the current term from April 1, 2017 to April 1, 2018 without the need to amend the annual amount.
During the current term, OE has provided Construction Management and Inspection (CM&I) services on several high-priority projects including the Brea Parking Structure Project (CIP 7903), The Tracks at Brea Segments 2 and 3 (CIP 7873), Glenbrook Waterline and Pavement Rehabilitation Project (7452), and Laurel Elementary Magnet School/Lagos De Moreno Park Upgrades Project (CIP 7929) totaling up to approximately $235,000. Additionally, since OE is one of the most qualified companies currently within the City's on-call program, staff also intends on utilizing OE for inspection services on the recently awarded construction contract for the Randolph Avenue/Imperial Highway Sewer Main Replacement Project (CIP 7621), which will replace approximately 1,500 linear feet of undersized sewer mains through the Randolph Creek section of town. These additional inspection services are expected to cost $27,840 through the remainder of the current term.
As stated previously, OE is currently providing Inspection Services for CIP 7873, which has been delayed by several unforeseen conditions. This led to extending the number of construction working days, which then also required extending the inspection services in the amount of $44,000. Additionally, OE is providing CM&I services for CIP 7929, which has also encountered several unforeseen conditions such as the need to replace the six inch sewer lateral serving the school.
This project has also experienced contractor construction delays that could push the completion of the project into March of 2018. Although, the proposed changes to the current purchase order are in the amount of $163,522 for CIP 7929, staff will submit an invoice to the School District for reimbursement of costs associated with the sewer line work, subject to their Board approval, and will assess the appropriate Liquidated Damages to the contractor for the added costs associated with his delays.
Therefore, due to various construction delays and unforeseen conditions on several projects, the CM&I services will need to be extended to cover these extra construction days and also cover for the cost of inspection services for CIP 7621. Since the current PSA amount is not sufficient to complete their assigned project tasks before the next term is extended, a PSA Amendment (Amendment) to increase the annual not-to-exceed second term amount from $250,000 to $475,000 is necessary. See Amendment #1. |
| COMMISSION/COMMITTEE RECOMMENDATION |
| The Finance Committee reviewed staff's recommendation at their January 9, 2018 meeting and approved the proposed recommendation for City Council to consider; and, directed staff to change the sentence related to the cost increases incurred for Project CIP 7929 in the amount of $163,522 from: "...these costs are anticipated to be reimbursed.." to: "staff will invoice the School District for reimbursement...". Staff has updated the Staff Report accordingly with this change to reflect the Finance Committee's direction. |
| FISCAL IMPACT/SUMMARY |
This Amendment will allow staff to extend the purchase orders for two active projects (7929 and 7873) and issue a purchase order for one upcoming project (7621) for OE to perform CM&I services up to the third term extension on April 1, 2018. Additionally, this will allow continuity of services, avoid further time delays, and added costs that would be associated with bringing in another firm to provide CM&I services. The change orders for the two active projects and new purchase order total $235,362, which when added to the current encumbered PO amounts within this PSA come to over $470,000. Therefore, staff recommends amending the PSA with OE to increase the not-to-exceed amount from $250,000 to $475,000 for the second term.
All costs related to CM&I services are included in the approved budget for the aforementioned projects. As indicated by the table below, there are sufficient funds within the projects to cover the cost of purchase order changes and new purchase order work within the Amendment. Therefore there will be no impact to the General Fund.
| CIP # |
Project Name |
Budget |
Expenditures To Date |
Balance |
| 7929 |
Lagos de Moreno Park |
$ 2,546,545 |
$ 1,403,114 |
$1,143,431 |
| 7873 |
Tracks At Brea |
$ 3,964,093 |
$ 3,547,169 |
$ 416,924 |
| 7621 |
Randolph Sewer |
$ 1,249,641 |
$ 110,300 |
$1,139,341 |
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| RESPECTFULLY SUBMITTED: |
William Gallardo, City Manager
Prepared by: Steve Kooyman, City Engineer
Concurrence: Tony Olmos, Public Works Director |
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