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HomeMy WebLinkAbout1981-07-21; City Council; 6681; Encina Construction contract EWPCF-. V CITY OF CARLSBAD / * Initial: AGENDA BILL N0._ ^// : Dept> Hea(J_ DATE: July 21, 1981 C. Atty DEPARTMENT: DEVELOPMENTAL SERVICES ; C. Mgr. £ ^f^ SUBJECT: AMENDMENT TO CONSTRUCTION MANAGEMENT CONTRACT EWPCF PHASE III. CONSTRUCTION STATEMENT OF THE MATTER The Encina Joint Advisory Committee has recommended that the member agencies approve the THIRD AMENDMENT to the construction management contract. A number of issues, some expected, some unexpected, have created the need to modify the contract. The inclusion of Critical Path Management (CPM) services, inflation, and the length of the contract were issues that had been anticipated. The problems of Federal Grant Eund freezes, additional construction, and contractor problems were not anticipated. Additional work in the 3rd Amendment includes: .„•,..,„Additional Construction Item • • Management Costs Extension of Avenida Encinas . $ 335,000 Addition of Critical Path Services 100,000 Delay due to Federal freeze of funds 360,000 Additional work to offset contractor related problems 170,000 Additional detail on Operations Building^ 27,000 Inflation related salary hikes "'" . 129,000 Miscellaneous • 16,000 TOTAL $1,137,000 A detailed discussion of justification is contained in attachment to Amendment No. 3 tmarked Exhibit A. The Encina General Manager has stated that the additional work is grant eligible. ' FISCAL IMPACT The contract ceiling will be increased from $1,167,028 to $2,304,208, an increase of $1,137,000. Carlsbad's share of the cost is approximately $36,000.' Funds are available in the Sewer Construction Fund budget for the Encina Phase III project. Staff will return with an Agenda Bill modifying Council appropriations to include transferred necessary funds to Account No. 16-207-3059. ENVIRONMENTAL IMPACT Modification of a service contract is categorically exempt. RECOMMENDATION * > The Encina Joint Advisory Committee has recommended approval. It is therefore recommended that the City Council adopt Resolution No. ^^/^authorizing the THIRD AMENDMENT to the Agreement for Construction Management Services. ATTACHMENTS; 1. Resolution No. 2. Amendment No. 3 AEEROVED RESOLUTION MO. ...6614 A RESOLUTION OF THE CITY COUNCIL OF THE CITY 'OF CARLSBAD AUTHORIZING THE VISTA SANITATION DISTRICT TO EXECUTE THE THIRD AMENDMENT TO CONTRACT WITH LOWRY & ASSOCIATES REGARDING CONSTRUCTION CONTROL SERVICES FOR PHASE III ENLARGEMENT AND UPGRADING OF THE ENCINA WATER POLLUTION CONTROL FACILITY WHEREAS, the VISTA SANITATION DISTRICT, CITY OF CARLSBAD, LEUCADIA COUNTY WATER DISTRICT, SAN MARCOS COUNTY WATER DIS- TRICT, BUENA SANITATION DISTRICT, AND ENCINITAS SANITARY DISTRICT are parties to a Joint Powers Agreement which provides for the operation and maintenance of a joint sewer system commonly known as the ENCINA WATER POLLUTION CONTROL FACILITY; and WHEREAS, pursuant to the Seventh Supplement to the Basic Joint Powers Agreement, Phase III Enlargement and Upgrading of the joint sewer system is in progress; and WHEREAS, the VISTA SANITATION DISTRICT is the administrator of Phase III Enlargement and Upgrading, as required by Section 2 of the aforesaid Seventh Supplement to the Basic Agreement; and WHEREAS, pursuant to prior approval of all members of the Joint Powers, VISTA SANITATION DISTRICT has heretofore entered into a written contract with LOWRY & ASSOCIATES CONSTRUCTION CONTROL SERVICES dated February 7, 1979, for the latter's serv- ices as construction manager for the Phase III Enlargement and Upgrading; and WHEREAS, pursuant to prior approval of all members of the Joint Powers, the said contract has been heretofore amended twice, namely, on February 13, 1980, and November 20, 1980; and WHEREAS, it has become necessary to effectuate a Third Amendment to said contract with LOWRY & ASSOCIATES by reason of the necessity to increase the scope of services heretofore agreed by said firm to be performed, and by reason of delays resulting from a freeze of EPA grant funds from March 20, 1981, to mid-September 1981; and by increased cost to LOWRY & ASSOCI- ATES resulting from the freeze of EPA funds; and WHEREAS, on May 27, 1981, the proposed Third Amendment to the contract with LOWRY & ASSOCIATES was considered by the Joint Advisory Committee to the Joint- Powers at a regular meeting thereof, and was unanimously approved by said committee; and WHEREAS, it is in the best interest of this City that the VISTA SANITATION DISTRICT be authorized to execute the Third Amendment to the contract between said District and LOV3RY & ASSOCIATES, a copy of which is attached hereto, marked Exhibit "A", and is incorporated herein. NOW THEREFORE, BE IT RESOLVED by the City Council of the CITY OF CARLSBAD as follows: Section 1. That the City Council of this City hereby auth- orize the VISTA SANITATION DISTRICT, as administrator of Phase III Enlargement and Upgrading of the ENCINA WATER POLLUTION CONTROL FACILITY to execute, in the form shown in Exhib- it "A" hereto, the Third Amendment to the Agreement for Construction Management Services between VISTA SANITATION DISTRICT and LOWRY & ASSOCIATES. PASSED, APPROVED AND ADOPTED, at a regular meeting of the City Council on the 21st day of July , 1981, by the following votes, to wit: AYES: 5 NOES: 0 ABSENT: 0 RONALD C. PACKARD, Mayor ATTEST: . A1ETHA L. RAUTENKRANZ, City Clerk \ A to Resolution No. 6614 AMENDMENT NO. 3 TO THE AGREEMENT FOR CONSTRUCTION MANAGEMENT SERVICES BETWEEN VISTA SANITATION DISTRICT AND LOWRY AND ASSOCIATES/CONSTRUCTION CONTROL SERVICES FOR PHASE III ENLARGEMENT AND UPGRADING FOR THE ENCINA WATER POLLUTION CONTROL FACILITY I. REFERENCE Agreement for Construction Management Services between Vista Sanitation District and Lowry & Associates/Construction Control Services for Phase III Enlargement and Upgrading of the Encina Water Pollution Control Facility executed February 7, 1979, Amendment No. 1 executed February 13, 1980 and Amendment No. 2 executed November 20, 1980. II. REASON FOR AMENDMENT Whereas the Owner and Construction Manager recognize that certain significant changes in: (1) Construction Manager's services as originally planned; (2) time factors affecting the scheduled activities and (3) contract- or's performance, has resulted in a "change of scope of work" from that mutually contemplated at the time of negotiations of the Master Agreement, Whereas Amendment No. 1 to the Master Agreement provides for scope changes within the Task Order procedure and for the change of the originally negotiated fixed fee and cost ceiling to "Budget" amounts which can not be exceeded except by formal amendment to the Master Agreement, Whereas all changes in the scope of work authorized by amendment to the Master Agreement, or by Task Orders, or their amendments, has not revised the "Budget" amounts in the Master Agreement as originally negotiated. Whereas the next Task Order authorization, Amendment No. 4 to Task Order No. 2, will cause the budget amount of $1,167,027.85 to be exceeded, Whereas, the Owner and Construction Manager have negotiated a mutually acceptable revised scope of work to establish a revised fixed fee and cost ceiling budget amount, Now, therefore, the referenced documents shall be amended. III. AMENDMENT Exhibit A of the Master Agreement is hereby emended as follows: Section I. GENERAL Replace the first sentence of the paragraph with the words, "The services to be rendered by the Construction Manager shall include those services as generally required to facilitate the timely construction of the Encina Sewage Treatment Plant Phase III upgrading and Expansion Project as described in the Contract Documents for Contract Nos. 1,2, 3/4, 5, 6, 7, 8, 9 and 10/11 prepared by the firm of Brown and Caldwell." Exhibit B of the Master Agreement is hereby amended as follows: Section D. COMPENSATION SCHEDULE: Replace the entire section with the words, "For Construction Management services authorized under this agreement, compensation shall be in accordance with the Task Order Authorizations, the applicable portions of this agreement and the following schedule: -2- <***»»> Basis of Compensation: Cost of Reimbursement Estimated Cost Ceilinq, per attached Exhibit A, Inclusive of All Subcontracts and Fixed • Professional Fee: $2,304,127 Fixed Professional Fee: $ 300,538 Portion of Fixed Professional Fee Payable Monthly: An Amount Equal to 15% of the Billing, but in No Event to Exceed the Fixed Professional Fee Stated Above Unless there is an agreed upon increase in the scope of work from that outlined in Exhibit "A", paragraph A, Construction Manager agrees that the maximum cost ceiling allowed shall be $2,304,127. In the event any amount of the Fixed Professional Fee remains unpaid upon completion of the project, said amount shall be paid in a lump sum within thirty-five (35) days after the project is completed. The aforesaid estimated cost ceiling shall not be increased without an amendment to this agreement that has been approved by all the member agencies of the Encina Joint Powers." . -3- ,.«**» IV. EFFECTIVE DATE OF THIS AUTHORIZATION This amendment is effective on and from the day, month and year it is signed by an authorized signatory of the Vista Sanitation District. CONSTRUCTION MANAGER LOWRY & ASSOCIATES By: Date: CONSTRUCTION CONTROL SERVICES By: Date: OWNER: VISTA SANITATION DISTRICT By:__ Date: -4- £XHIBIT A AMENDMENT 3 to the MASTER AGREEMENT ,/*•» EXHIBIT A to AMENDMENT 3 to the MASTER AGREEMENT ENCINA PHASE III PROJECT ESTIMATED TOTAL COST OF-CONSTRUCTION MANAGEMENT SERVICES Projected Costs to Finish 1981 8 months at $60,OQO/mo. = $480,000 1982 7 months at $60,000/mo. ' = 420,000 5 months at $55,000/mo. = 275,000 1983 6 months at $35,000/mo. = 210,000 $1,385,000 Actual Cost to Date (4/22/81 billing). Step 2 Services $361,556 Step 3 Services 557,571 $ 919,127 TOTAL ESTIMATED COST: $2,304,127 EXHIBIT A - Page 1 ENCINA PHASE III PROJECT JUSTIFICATION STATEMENTS AND SUMMARY OF COST INCREASES FOR CONSTRUCTION MANAGEMENT SERVICES A. Construction Management Service Scope Changes 1. Extension of Avenida Encinas Originally planned services were based on Brown and Caldwell's plant and facilities described in Brown and Caldwell's Ten Percent design report. Actual services are based on plant and facilities as described in Brown and Caldwell's Contract Documents for Contracts 1, 2, 3/4, 5, 6, 7, 8, 9 and 10/11. The significant difference is the additional grading, offsite utilities relocation, and sewer relocation required by the extension of Avenida Encinas per the City of Carlsbad use permit. Estimated Cost $335,000 2. Addition of CPM Services to Construction Management Services Contract Estimated Cost $100,000 B. Time Factors Affecting the Scheduled Activities On March 20, 1980 President Carter froze the EPA funds for Grants to wastewater projects. Funds were not released until mid September 1981. This resulted in a six months delay in the advertizing for bids on Contract 10/11. Estimated Cost $360,000 C.' Contractor Performance 1. Brinderson Corporation, the Contractor for Contract 10/11, had a.backlog in construction contracts of 60 million at the time they did the Encina work. By the time they were awarded the contract, their backlog increased to 120 million. Field personnel to be assigned to Contract 10/11 EXHIBIT A - Page 2 D. were diverted to other projects. Brinderson hired new personnel for the Encina project. The contractor's , problems in personnel orientation, coordination and shifting of assignments has caused an estimated two months delay in the start of construction. Estimated Cost Brinderson's field superintendent, a new employee, has demonstrated in his communication skills and style, a need for us to tape record and transcribe weekly progress meetings. This effort requires a full time secretary. If this practice continues for the duration of the job, the estimated cost is E. V. Harris, Contractor for the operations building, is taking a claims oriented approach to his contract. This requires additional documentation and numerous long meetings to prevent an adversary relationship and potential litigation. $100,000 $ 60,000 Estimated Cost $ 10,000 Other Cost Factors 1. Extra time and effort associated with coordinating and resolving conflicting details on the operation building has been necessary. Estimated Cost 2. Inflation of the economy since 1979 has increased actual salaries of personnel over what was anticipated. The increased hourly rates would apply for a 12 month extension to the originally planned work. Estimated Cost $ 27,000 $129,000 TOTAL ESTIMATED CHANGE OF SCOPE COST INCREASE (Total of A through D) $1,137,000 EXHIBIT A - Page 3 2. Comparison of salary increases and increases due to extended time of project longer than originally contemplated (3.5 years vs. 2.5 years) Comparison of hourly rates for the years shown Principal-in-Charge Project Manager Resident Engineer Field Engineer Field Inspector Secretary Draftsman .1979 34.50 22.50 15.50 12.50 6.00 11.00 1981 42.00 28.00 21.00 16.50 16.00 9.50 19.00 Dollar/Mr. Increase 7.50 5.50 —1.00 3.50 3.50 8.00 Principal-in-Charge Project/Manager/R.E. Field Engineer Inspector Secretary 420 x £.0 7.50 5,313 x ~ x 5.50 4,911 x x 1.00 10,121 x ~ x 3.50~| 5,490 x ™| x 3.50 4,410 40,910 6,875 49,593 26,901 128,689 Say $129,000 EXHIBIT A - Page 5 •*>. ESTIMATED TOTAL COSTS FROM PAGE 1 ' $2,304,127 ORIGINAL NEGOTIATED COST CEILING (1,167,028) $1,137,099 NOTE: Estimated Scope Changes when added to original contract amount are within one hundred dollars ($100.00) of the. actual costs to date added to the estimated costs to complete Construction Management Services. Estimated Scope Changes • $1,137,000 Original Contract Amount $1,167,028 $2,304,028 Actual Costs to Date $ 919,127 Estimated Costs to Complete $1,385,000 $2,304,127 EXHIBIT A - Page 6 'E<IS ~^S !l? !?I O Sl^u" 58III -i*III gig U.I5- ~>| j 4-MO. I SLUOGC DCWATEftINC ANO THICKENERS ^r^sr"/.«M,"' an F M A 3 M 3_ 3 J is 3 J 3 A S O © < N "I 0 S (DUt Tftft 1980 J G <D Tl 1 F S CD •' M e » 0 A c WTR; cD.ji,.ta ii UNEXPECTED DELAYS ON CONTRACT 10/11 'g M ? ern D a j j ® A 1® S rm 0 N ® ® ? D SX»i © isei j F i ^u 6 MONTHS 2 i« !Z 0 «. 1=> o'sU. eoi 03 =1 z 2Ja: S| M © A M SMO.^ N g n J |J| J A S 0 © N D 1982 J F M A M J J A S 0 N D 1963 3 3 n =i 3 * S 0 c N ) 0 UJ | . ; mX OT 2j o OJ8Nluj T-l LUXI Q:0|lz <id 5JUJ SEPTEMBERtr SI < uj3lo _i (>\ / tan> FIGURE 1 ACTI'Al. 1111 1.IMCS ! OR rO'-'STBUCTigS HANAr.KMLNT SKKV1CE_5 EHOM Ai'RIL 1979 THROUGH JANUARY 1981 . 1 9 7 9 1 9 8 0 1 9 8 1 TOTAL - Step 2 %»f AL - Step 3 TOTAL JAN FEB HAR APR KAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR KAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC LOWRY CCS LOWRY CCS $11.065 $11.065 18.974 $558 19.532 7.772 4.030 11.802 2.263 -0- 2,263 4,897 1,388 6,285 2,683 -0- 2,683 17,367 2.172 19,539 14,825 -0- 14,825 18,767 -0- 18,767 27,765 3,734 31,499 29,205 4,776 33,981 27.182 5,119 32,301 20,550 2,241 22,791 28,459 2,292 30,751 29,880 10,486 40,366 13,277 -0- $ 7..550 $4,166 24,993 20.057 12,680 32.737 25,693 19,189 44,882 32,503 17,352 49,855 29,748 3,938 36,248 21,010 90.944 3,697 1,449 32,930 18,856 56.932 4.302 213 31.692 12,512 48,719 $2,942 -0- $68,869 $23,099 $94,910 37.023 19.465 56.488 2.960 580 34,178 16,921 54,639 37.728 8.732 46,460 . TOTAL $318.580 $42.976 $364,471 $173,982 $900.009 LOWRY '$11,065 18.974 7,772 , 2,263 4.897 2.683 17,367 14.825 18.767 27.765 29,205 27,182 20,550 28,459 29,880 20,827 20,057 25,693 32,503 65.996 36,627 35.994 $71,811 37,023 37.138 37,728 - $683,051 ccsw1 — $558 4,030 -0- 1.388 -0- 2,172 -0- 3,734 4,776 5,119 2,241 2,292 10.486 4,166 12.680 19.189 17.352 24.948 20.305 12.725 $23,099 19.465 17.501 8.732 - $216.958 ccs: , . — 3 34 22 11 — 12 14 16 10 7 26 17 39 43 35 27 36 26 24 34 19 19 24 • ' ' 1 2 JAN FEB MAR \ APR 9 MAT e JUN 0 JUl, AUC SEP OCT NOV DEC JAN $1,407 FEB $ 391 191 HAR 1 AFX 550 9 KAT 8 JUK 1 JUt . AUC SEP OCT NOV DEC JAN ' FEB „.. I APR 9 KAY B JVN a JTJL ADC SEP OCT MOV DEC TOTAL S 391 $2.1*8 Hav 20 . 1981 ENCINA JOINT POWERS • ACTUAL ^*MNCS FOR CONSTRUCTION MANAGEMENT SERVICP^Wn^STEP 3) ~~1^ * FROM JUNE I960 'THROUGH MARCH 188L «. J-— -___ ^faay CONTRACTS 3/456 7 0 9 10/11 TOTAL * S 9,400 $ 2,316 5 11,716 22,240 10,497 32,737 29,830 15,052 44,882 33,167 $ 1,240 15.448 49,855 36.004 5,305 15,949 57,258 29.717 7,414 14,655 51,786 18.173 7,340 18.691 44,204 53,719 $1,432 $1,270 33,171 24,229 25,427 M.313 91,968 537 182 458 ' 17,824 13,445 34,023 " 8,552 75,603 334 101 270 9.756 14.130 17,958 8,552 51,101 1.016 295 6,450 13.110 7.909 17.131 46.461 • • - • • EXHIBIT A - Page 9 $5,606 $1,715 52.293 $245.732 586.213 $177.925 $35,5*8 $557.571 J-rcp.irod by 1.0--KY 1, ASSOCIATE January 27. 1981 ENCINA JOINT POWERS 1 9 8 1 I 9 e 2 1 9 8 3 JAN FEE MAR APR KAY JUK JUL AUC SEF OCI MOV DEC JAK FEE HAP. APR MAY JUK JUL AUC SEf oc: KOV DEC JA.'. FEB HAF. APR KAY JUN PROJECTED BILLINGS FOR CONSTRUCTION MANAGEMENT SERVICES FROM JANUARY 1931 THROUGH JUNE 1983 Contracts 1 2 3/45 6 7 8 ' «, 10/11 S 600 SI, 000 $ 2,700 5 BOO 5 1.100 512,000 5 9,000 S 16,000 S 9,300 600 1,000 2,400 800 1,100 12.000 9,000 16,000 9,600 600 1,000 2,200 800 1,100 11,000 9,000 16.000 10,800 1,300 1,000 2,100 1.800 1,100 10.000 9,000 16,000 15.000 1,300 1,900 2.000 1.900 1,100 9.000 9,000 16,000 15.100 1,500 2,000 2,100 1,900 2,300 9,000 B.500 15,000 15,000 1.500 2.000 2,000 8,000 8,000 15,000 20.800 1,300 2.000 2.000 5.000 7.000 14,000 26,000 1.300 2.000 2.000 4.000 5.000 12.000 31.000 1.000 2.000 1.000 2.000 4,000 10,000 37,300 2.000 1. 000 2.000 5.000 47.300 2.000 1,000 " 3.000 51.300 2.000 • 54.900 2.000 54,900 56;900 56.900 56.900 56.900 56,400 51,100 51.100 51.100 «6,000 46.000 43.300 43.300 43,300 24,400 24,400 24.400 TOTAL $ 52,500 52,500 52,500 57,300 57.300 57.300 57.300 57,300 57.300 57.300 57.300 57.300 56.900 56.900 56.900 56.900 56,900 56.900 56.400 51.100 51.100 51.100 46,000 46,000 43.300 43.300 43.300 24,400 24,400 24,400 TOTAL $ $11,000 $7.900 $29.500 58.00o $16.BOO $82.000 $79.500 $154.000 51.130.700 |I.Slf.«00 EXHIBIT A - Page 10