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Home My WebLink About18 AMEND AGMNT WASHINGTON GR. 06-05-07MEETING DATE: JUNE 5, 2007 T0: WILLIAM A. HUSTON, CITY MANAGER FROM: PUBLIC WORKS DEPARTMENT/ENGINEERING DIVISION SUBJECT: AMENDMENT N0.1 TO CONSULTANT SERVICES AGREEMENT WITH WASHINGTON GROUP INTERNATIONAL INC., FOR ADDITIONAL CONSTRUCTION MANAGEMENT SERVICES FOR THE PHASE I TUSTIN LEGACY BACKBONE INFRASTRUCTURE PROJECT VALENCIA AVENUE, FORMERLY VALENCIA NORTH LOOP ROAD; ARMSTRONG AVENUE; LANSDOWNE ROAD; SEVERYNS ROAD; AND KENSINGTON PARK DRIVE, FORMERLY WEST CONNECTOR) (CIP N0.7139) SUMMARY Amendment No. 1 to the Consultant Services Agreement (CSA) between the City and Washington Group International Inc. (WGI), will provide additional Construction Management Services for the Phase I Tustin Legacy Backbone Infrastructure Project (Valencia Avenue, formerly Valencia North Loop Road; Armstrong Avenue; Lansdowne Road; Severyns Road; and Kensington Park Drive, formerly West Connector) (CIP No. 7139). RECOMMENDATION It is recommended that the City Council approve Amendment No. 1 to the Consultant Services Agreement with Washington Group International Inc. to provide additional Construction Management Services for the Phase I Tustin Legacy Backbone Infrastructure Project (Valencia Avenue, formerly Valencia North Loop Road; Armstrong Avenue; Lansdowne Road; Severyns Road; and Kensington Park Drive, formerly West Connector) (CIP No. 7139), and authorize the Mayor and City Clerk to execute the Amendment on behalf of the City. FISCAL IMPACT The FY 2006-2007 Capital Improvement Program Budget provides project funding of $17,774,418 for the Phase I Tustin Legacy Backbone Infrastructure Project Valencia Avenue, formerly Valencia North Loop Road; Armstrong Avenue; Lansdowne Road; Severyns Road; and Kensington Park Drive, formerly West Connector) (CIP No. 7139}. Amendment No. 1 is in the amount of $382,763 and there is sufficient funding to cover this amendment. Amendment No. 1 to Consultant Services Agreement with Washington Group International Inc. June 5, 2007 Page 2 BACKGROUND On November 1 2004, the Cit Council approved a CSA in the not to exceed amount of Y 2 055 967 with WGI for the Phase I Tustin Legacy Backbone- Infrastructure Project $, Valencia Avenue, formerly Valencia North Loop Road; Armstrong Avenue; Lansdowne ( Road Seve ns Road; and Kensington Park Drive, formerly West Connector) (CIP No. ry 7139. Several full-time personnel including a Resident Engineer, two Roadway ) Ins ectors and an Administrative Assistant were or~g~nally assigned to staff the project. p . A Utilities Ins ector was also used to supplement the Roadway Inspectors during periods p ., when new utilities were installed underground. Additionally, the above construction mana ement team was supplemented with other staff to .perform materials testing, 9 construction surve support, cost analyst functions, scheduling, quality control, and Y safety activities. Construction started in May 2005 and all contract items are now complete. There have been several unforeseen construction issues, including very poor soil conditions attributed to lar a quantities of groundwater at the depths of the sanitary sewer line 9 . installation, and extensive coordination with other developments at Tustin Legacy includin Lennart the Village of Hope; Rancho Santiago Community College District (the 9 . Sheriff's Academy); South Coast Community College D~str~ct (ATEP}; and the Department of the Navy (Navy). Washin ton Grou International was given a Notice to Proceed by the City for their 9 p . Construction Management services on September 3, 2004 with a planned contract duration of 22 months. It is now anticipated that the actual duration of their contract will be throu h June 2007, a total of 34 months. The construction extended an additional 12 g months due to the following circumstances: • After the construction bid opening, a bid protest was received from the second low bidder. The review of the bid protest delayed the construction contract award by two months. • After the construction contract was awarded the contractor requested a delay in the issuance of the Notice to Proceed in order to obtain their environmental insurance and to complete their Environmental Work Plan. • Construction delays occurred as a result of IRWD requesting a deviation from the a roved plans and specifications in the Areas of Institutional Control and the pp issuance of a dewatering permit from the Orange County Sanitation District. The contractor has filed a Notice of Potential Claim as a result of these delays. If it is determined that the contractor has a valid claim, IRWD will be responsible for a share of these costs. Amendment No. 1 to Consultant Services Agreement with Washington Group International Inc. ' June 5, 2007 Page 3 • Additionally, difficult soil conditions, coupled with large quantities of water encountered in the construction of a 27-inch sewer line in Armstrong Avenue required over-excavation and additional pipe bedding material placement, taking an additional 2.5 months to complete. In addition, Hurricane Katrina in late August 2005 caused a 3-month delay in acquiring PVC pipe needed for the project. • As a result of on-going construction of the various developments adjacent to SEMA's work area, twenty-three (23) design plan revisions affecting 140 of the 165 plan sheets were issued. These revisions were required in order to facilitate utility services and access requirements for the adjacent developments. This resulted in significant effort on the part of WGI to review and process these changes. The on final contract amount was expended in November 2006. At that time, WGI 9 requested a contract amendment and agreed to continue to provide construction management services in good faith to give City staff time to negotiate a fair and reasonable compensation for the additional construction management services. Based on the additional time needed to complete the project, WGI has submitted a request for additional compensation in the amount of $382,763. Their request includes a modest increase in average hourly rates of less than 1 %. Staff has reviewed WGI's request and found it to be fair and reasonable based on the significant amount of work they have erformed to date and are expected to perform until project close-out. It is, therefore, p recommended that the City Council approve Amendment No. 1 to the CSA with WGI for the Phase I Tustin Legacy Backbone Infrastructure. Project (Valencia Avenue, formerly Valencia North Loop Road; Armstrong Avenue; Lansdowne Road; Severyns Road; and Kensington Park Drive, formerly West Connector) (CI P No. 7139). The City Attorney has reviewed the amendment and has signed it "Approved as to Form". ,~ Tim D. Serlet Director of Public Works/City Engineer ~~~ ~/~ Dana R. Kasdan Engineering Services Manager Attachment: Amendment No.1 S:1City Council Items12007 Council ItemslAmend #1 to CSA WG12.doc AMENDMENT N0.1 TO CONSULTANT SERVICES AGREEMENT THIS AMENDMENT N0. 1 TO CONSULTANT SERVICES AGREEMENT ("Amendment No. 1 "} is made and entered into this day of , 2007, by and between the CITY OF TUSTIN, a municipal corporation, hereinafter referred to as "City", and WASHINGTON GROUP INTERNATIONAL INC., an Ohio corporation, hereinafter referred to as "Consultant." RECITALS WHEREAS, City and Consultant entered into the Consultant Services Agreement dated November 1, 2004, (the "Agreement"~ for professional construction management services for the Phase I Tustin Legacy Backbone Infrastructure Project (Valencia Avenue, formerly Valencia North Loop Road; Armstrong Avenue; Lansdowne Road; Severyns Road; and Kensington Park Drive, formerly West Connector) (CIP No. 7139); and WHEREAS, City and Consultant desire to amend Section 4 of the Agreement to include additional professional construction management services for the Phase I Tustin Legacy Backbone Infrastructure Project (Valencia Avenue, formerly Valencia North Loo Road; Armstron Avenue; Lansdowne Raad; Severyns Road; and Kensington p g Park Drive, formerly West Connectors (CIP No. 7139). NOW, THEREFORE, in consideration of the mutual promises, covenants, and conditions contained herein, and upon the terms and conditions hereinafter set forth, the parties agree as follows: AGREEMENT 1. Section 4, Compensation, of the Agreement is hereby amended in its entirety to read as follows; A. The compensation to be paid under this Agreement shall be as set forth in Exhibit "A" to the Agreement dated November 1, 2004 and the letter from Washington Group International Inc., dated March 28, 2007, attached hereto, which shall not exceed a total cost of $2,438,730.00. B. Consultant shall submit detailed invoices, based upon the actual work performed, accompanied by backup documentation as requested by the City. C. Progress payments for work completed shall be paid by the City as the work progresses, within thirty X30}days of receipt of Consultant's invoice. D. Consultant shall provide City with a monthly itemization of all work performed, and the fees accrued thereon, in complete and sufficient detail to fully apprise City thereof. E. City shall notify Consultant within ten (10} business days after receipt of an invoice if it disputes all or some element of the invoice. City and Consultant shall promptly attempt to effect a resolution of any dispute. Not withstanding the foregoing, City shall pay the undisputed portion of any invoice. 2. Exce t as expressly amended herein, all other provisions of the Agreement P remain in full force and effect. IN WITNESS WHEREOF, this .Amendment No.1 was executed by the parties on the day and year written above. "CITY" CITY OF TUSTIN Lou Bone, Mayor ATTEST: Pamela Stoker, City Clerk APPROVED AS T4 FORM: ~..~. ~~~ ~nw.M!.`" ~~,wSe R. Douglas C. Holland, Cit ~ A orney "CONSULTANT" WASHINGTON GROUP INTERNATIONAL ~, ~/ys Doug S wyer, Area Manager S:ICSA & RFP12007tAmend #1 CSA 7139 - WGl.dac 2