HomeMy WebLinkAbout04 - Amendment to PSA for On -Call Public Works InspectionCITY OF
Ok O
NEWPORT BEACH
<F'P City Council Staff Report
November 7, 2016
Agenda Item No. 4
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: David A. Webb, Public Works Director - 949-644-3311,
dawebb@newportbeachca.gov
PREPARED BY: Mark Vukojevic, Deputy Public Works Director/City Engineer,
mvukoievic(c)-newportbeachca.gov
PHONE: 949-644-3319
TITLE: Approval of Amendment No. 1 to the Professional Services
Agreement with Interwest Consulting Group, Inc. for On -Call Public
Works Inspection
ABSTRACT:
On March 1, 2016 the City entered into a Professional Services Agreement with
Interwest Consulting Group, Inc. for on-call Public Works Inspection services. On-going
capital projects and private developments necessitate an extension and increase in the
agreement limits.
RECOMMENDATION:
a) Determine that the action is exempt from the California Environmental Quality Act
(CEQA);
b) Approve Amendment No. 1 to the current Professional Services Agreement with
Interwest Consulting Group, Inc. for on-call as needed Public Works Inspection
services increasing the original contract by $180,000; and
c) Authorize the Mayor and City Clerk to execute Amendment No. 1 of the Agreement.
FUNDING REQUIREMENTS:
Sufficient funds are available in the annual operations budget for Public Works
Department Engineering Services Division (Account 01080801-811008) and respective
Capital Improvement Program budget accounts for this agreement amendment for the
current fiscal year. Funds for services to be performed in subsequent fiscal years will be
appropriated annually as needed through the normal budget process.
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Approval of Amendment No. 1 to the Professional Services Agreement with Interwest
Consulting Group, Inc. for On -Call Public Works Inspection
November 7, 2016
Page 2
DISCUSSION:
The City entered into a Professional Services Agreement with Interwest Consulting
Group, Inc. on March 1, 2016 to provide on-call as needed Public Works Inspection
services for various City Capital Projects, utility projects, and private development
projects. Interwest was one of several firms chosen in the winter 2016 through a
competitive selection and evaluation process to provide on-call as needed services.
Interwest specializes in providing contract staff to augment City staff in the delivery of
these projects. Their services include construction inspection, project and utility
coordination, material testing, and contract administration duties.
Public Works will soon reach the contractual compensation limits of the current
agreement and desires to extend the agreement for additional work. The City's Capital
Improvement Program remains historically large and private related
permitting/development continues to remain strong, which in turn necessitates the
continued need for additional contract assistance. Over the past year, the contract
inspectors with Interwest have proven their experience and have developed a familiarity
with various projects, procedures and stakeholders in the City. In order to continue to
be efficient, the Public Works Department recommends using this firm for approximately
one additional year and increasing the agreement contractual limits. The scope of work
by Interwest would remain the same. Services are provided on an hourly basis and
remain very competitive and favorable to the City. The billing rates will be slightly
adjusted per the upcoming Consumer Price Index values.
Generally, the Public Works Department uses a variety of on-call professional services
to accomplish its workload. For this reason, staff recommends that the not -to -exceed
agreement amount be increased by an additional $180,000, bringing the new total
agreement cap to $300,000. The annual budget allocations are sufficient and no
budget amendment is requested. The term of the agreement extends through 2019 and
is sufficient for the Department's immediate needs.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action is not subject to the California
Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not
result in a direct or reasonably foreseeable indirect physical change in the environment)
and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA
Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no
potential for resulting in physical change to the environment, directly or indirectly.
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Approval of Amendment No. 1 to the Professional Services Agreement with lnterwest
Consulting Group, Inc. for On -Call Public Works Inspection
November 7, 2016
Page 3
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
ATTACHMENTS:
Attachment A - Amendment No. 1 with Interwest
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ATTACHMENT A
AMENDMENT NO. ONE TO
ON-CALL PROFESSIONAL SERVICES AGREEMENT
WITH INTERWEST CONSULTING GROUP, INC. FOR
STAFF AUGMENTATION
THIS AMENDMENT NO. ONE TO ON-CALL PROFESSIONAL SERVICES
AGREEMENT ("Amendment No. One") is made and entered into as of this 7th day of
November, 2016 ("Effective Date"), by and between the CITY OF NEWPORT BEACH, a
California municipal corporation and charter city ("City"), and INTERWEST
CONSULTING GROUP, INC., a California corporation ("Consultant"), whose address is
15140 Transistor Lane, Huntington Beach, CA 92649, and is made with reference to the
following:
RECITALS
A. On March 1, 2016, City and Consultant entered into a Professional Services
Agreement ("Agreement") to provide on-call staff augmentation for public works
inspection services ("Project").
B. Since entering into the Agreement, Consultant was asked to perform a higher
volume of Work than was originally anticipated. Such Work includes providing
on-call staff for public works projects.
C. The parties desire to enter into this Amendment No. One to reflect these
additional Services or Work not anticipated in the Agreement, to update Section
10 and to increase the total compensation.
NOW, THEREFORE, it is mutually agreed by and between the undersigned
parties as follows:
1. SERVICES TO BE PERFORMED
Exhibit A to the Agreement is amended in its entirety and replaced with the
Scope of Services, attached hereto as Exhibit A-1 and incorporated herein by reference
("Services" or "Work"). The City may elect to delete certain Services within the Scope of
Services at its sole discretion. Any reference to Exhibit A in the Agreement shall
hereafter refer to Exhibit A-1 attached hereto.
2. COMPENSATION TO CONSULTANT
Section 4.1 of the Agreement is amended in its entirety and replaced with the
following: "City shall pay Consultant for the Services on a time and expense not -to -
exceed basis in accordance with the provisions of this Section and the Schedule of
Billing Rates attached hereto as Exhibit B and incorporated herein by reference.
Consultant's compensation for all Work performed in accordance with this Agreement,
including all reimbursable items and subconsultant fees, shall not exceed Three
Hundred Thousand Dollars and 00/100 ($300,000.00), without prior written
authorization from City. No billing rate changes shall be made during the term of this
Agreement without the prior written approval of City."
Interwest Consulting Group, Inc. Page 1
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The total amended compensation reflects Consultant's additional compensation
for additional Services to be performed in accordance with this Amendment No. One,
including all reimbursable items and subconsultant fees, in an amount not to exceed
One Hundred Eighty Thousand Dollars and 00/100 ($180,000.00).
3. INDEPENDENT CONTRACTOR
Section 10 of the Agreement is amended in its entirety and replaced with the
following:
"10.1 It is understood that City retains Consultant on an independent contractor
basis and Consultant is not an agent or employee of City. The manner and means of
conducting the Work are under the control of Consultant, except to the extent they are
limited by statute, rule or regulation and the expressed terms of this Agreement. No
civil service status or other right of employment shall accrue to Consultant or its
employees. Nothing in this Agreement shall be deemed to constitute approval for
Consultant or any of Consultant's employees or agents, to be the agents or employees
of City. Consultant shall have the responsibility for and control over the means of
performing the Work, provided that Consultant is in compliance with the terms of this
Agreement. Anything in this Agreement that may appear to give City the right to direct
Consultant as to the details of the performance of the Work or to exercise a measure of
control over Consultant shall mean only that Consultant shall follow the desires of City
with respect to the results of the Services.
10.2 Consultant agrees and acknowledges that no individual performing
Services pursuant to this Agreement shall: work full-time for more than six (6) months;
work regular part-time service of at least twenty (20) hours per week for one year or
longer; work nine hundred sixty (960) hours in any fiscal year; or already be a CalPERS
member."
4. INTEGRATED CONTRACT
Except as expressly modified herein, all other provisions, terms, and covenants
set forth in the Agreement shall remain unchanged and shall be in full force and effect.
[SIGNATURES ON NEXT PAGE]
Interwest Consulting Group, Inc. Page 2
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IN WITNESS WHEREOF, the parties have caused this Amendment No. One to
be executed on the dates written below.
APPROVED AS TO FORM:
CITY ATTORNEYS OFFICE
Date: IV
Z21ZI
By:
-for
Aaron C. Harp
City Attorney
ATTEST:
Date:
MM
Leilani 1. Brown
City Clerk
CITY OF NEWPORT BEACH,
a California municipal corporation
Date:
By:
Diane B. Dixon
Mayor
CONSULTANT: Interwest Consulting
Group, Inc., a California corporation
Date:
By:
Terry Rodrigue
President
Date:
By:
Debbie Thorson
Chief Financial Officer
[END OF SIGNATURES]
Interwest Consulting Group, Inc. Page 3
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SCOPE OF SERVICES
Interwest Consulting Group, Inc. Page A-1
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SCOPE OF SERVICES
Interwest has prepared our approach to the Scope of Services in response to the City's request for
inspection services on property owned by City. What follows is an overview of the services to be provided.
Construction Management Overview
Interwest is experienced and highly skilled at providing services in the three main phases of capital projects (1) Pre -
Construction, Bidding & Award, (2) Construction and (3) Project Close-out. Successful integration of the roles -
project manager, construction manager and construction inspector — throughout these phases is critical to the
success of any project. As such we have provided an integrated scope of work below detailing the key areas of
responsibility for a typical project (Specific responsibility is designated CM —Construction Manager and Cl —
Construction Inspector):
✓ Provide field inspection for compliance with the approved construction documents e.g. plans, green book -
CI
✓ Verify all material amounts - Cl
✓ Verify implementation of storm water regulation requirements - CM
✓ Review all invoices for accuracy of work performed - Cl
✓ Assist designer in resolving problems arising from field conditions - Cl
✓ Attend field meetings - Cl
✓ Facilitate coordination with utility companies . Cf
✓ Provide coordination with the design consultant and inspector - CM
✓ Process all invoices - CM
✓ Provide monthly project funding reports — CM
✓ Provide weekly project monitoring reports — CM
✓ Process change orders - CM
✓ Coordinate final inspection - CM
✓ Process labor compliance review and acceptance - CM
✓ Coordinate project As Built drawings - CM
✓ Coordinate processing of project changes with stakeholders and other City departments - CM
✓ Coordinate project closeout activities such as staff report, notice of completion, release of retention,
document archiving, GASB 34 reporting, etc. — CM & PM
Interwest Consulting Group 1 www.interwestgrp.com
R
Detailed Pian for Public Works Construction N anagernent & inspection
PRE -CONSTRUCTION 1 BIDDING i AWARD PHASE
Constructability I Contract Document Review I Bid. Support: Review of the construction plans and contract
documents prior to bidding and report to the City any areas where there may be an opportunity to save money or find
areas that can be corrected prior to the bid, resulting in more competitive bids and fewer construction change orders.
This assistance is provided during the bidding process.
Pre -Project Photographs I Video: The Construction inspector will
document the condition of the project as well as the adjacent areas prior to
the contractor mobilizing, thus minimizing any dispute that may arise
regarding existing vs. construction damage.
Pre -Construction Meeting: We will organize or attend the pre -construction
meetings prior to the Notice to Proceed being issued. Meeting notes and a
list of invitees and attendees will be distributed.
Plans, Specification & Estimate (PS&E): The PS&E package is essentially the contract document from which the
contractor will bid and build the project. The project engineer, in consultation with the construction manager, takes
the approved project and begins the formal design process. Every effort must be made to stay within the scope of the
approved project, and adhere to the environmental document constraints. Any changes to the scope must be
approved by the PDT; changes to the scope during the PS&E phase will likely increase construction costs, may
require additional environmental studies, and possibly delay the schedule. As the PS&E package develops, a bigger
emphasis is made on constructability, traffic handling and staging. All can significantly impact construction costs.
Potential Pitfalls:
Poorly prepared plans, specifications and
estimate (inconsistency in plan sheets,
unclear plans, incomplete or incorrect
5 information)
- Poorly written specifications that are
inconsistent with the plans or missing
items
- Having plans/specifications that do not
adhere to the Environmental Document
- Having poor staging and traffic control
Bidding and Construction Support:
Resulting in:
• Extended review period
Delays in the permitting process
High contractor bids
- Contract change orders (CCOs)
and/or claims
Extended construction period
Traffic delays
Potential for right of way delays
Interwest Solutions:
Review the PR and Environmental
Document at the beginning of the
PS&E phase
Implement Quality
Assurance/Quality Control Plan
Perform Constructability and
Hidability Reviews
• During the bidding process, if so directed, the Interwest Team will be available to answer bidders' questions,
prepare drafts of addenda or clarifications to the PS&E and assist in reviewing bids and recommending a
contract award.
✓ During construction, we will provide supplemental support to the City and construction management section
for construction inquiries. This supplemental construction support includes:
v/ Reviewing and preparing responses to RFI's
V Reviewing Contractor submittals and shop drawings for compatibility with design
Reviewing and providing recommendations of change order proposals
Performing final reviewi evaluation and assisting with the preparation of punch list for work deficiencies
Preparing record drawings of the completed projects based upon the redlined set of as -built plans provided
by the Contractor
Interwest Consulting croup I wvvw.interw st rp.co
Potential Pitfalls:
- Having Kidding documents which
are not consistent with City
standards
Inadequate time allotted for PS&E
f approvals by City Engineer and City
Attorney's office
Slow response time to Contractor
RFI's and other requests
Resulting in:
• Delays in bidding and construction
which can lead to higher costs
Misinterpreted contract documents
which ran lead to CCO's and delay
claims
Interwest Solutions:
Utilize experience to build realistic
project schedules that properly
account for all reviews and approvals
- Respond expeditiously to Contractor
RFPs and other requests to minimize
CCA's and delay claims
Utilize constructability and
specification reviews by experienced
staff to identify the most efficient
construction methods and to minimize
CCO's
Project Schedule j Submittal Review: A realistic schedule that meets the
requirements of the contract documents is critical to the success of the project. Our
team will constantly monitor the schedule, noting and making the City aware of any
critical path slips, as well as any opportunities to compress the schedule that may
arise. Further, timely and thorough submittal review is critical to a project.
Examples of activities include:
Coordinate, review and approve the Contractor's proposed CPM
schedule for completion of project.
Review contractor's schedule, update submittals for conformance to master schedule and contract
documents.
Document Control: We use the proven method of controlling documents through the system developed and used by
Caltrans. We will apply consistent procedures to track all documentation, regardless of project size and location.
Doing so will result in a standard documentation and filing system across the board for capital projects. As a result,
records retrieval will be quick and efficient. Work activities include:
V Maintain all project documents, drawings, contract change orders; contractor submittals, shop drawing and
correspondence in electronic form and hard copy.
Maintain at the project site in an "as current' basis, a record copy of all contracts, drawings, specifications,
addenda, change orders and other modifications, in good order and marked to record all changes made
during construction. We track documents, including all correspondence.
✓ Ensure an office engineer is available for projects with significant document control needs, and all files will
be set up by our office engineer, regardless of size
Maintain a digital photographic library & significant activities.
✓ Maintain RFI, submittal and change order logs. Ensure consultants and engineers respond within contract
time frames. We track the number of days submittals are outstanding and with a particular party on a
weekly basis and report this information to the appropriate staff.
v/ Monitor Contractor and the sub -contractors regarding compliance with prevailing wage rates and
affirmative action requirements applicable to the project including a Labor Compliance Program in
accordance with AB ; 506 and the Davis -Bacon Act. Our inspectors and office engineers are trained on the
appropriate forms and techniques necessary to conduct these compliance activities.
V Collect and review, for compliance with all State and Federal regulations, certified payroll records
requirements.
Interwest Consulting Group l wwwAnterwestgrip.corn
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Weekly I Monthly Construction Meetings: We would attend and chair weekly or monthly project meetings with the
contactors and stakeholders. We can prepare the agenda and discuss schedule, budget, changes, safety issues etc.
This has proven to be an important step to getting the project on schedule early.
Construction Inspections (including SWPP Compliance): Our Inspector, as well as any other field personnel
performing services will document all work, quantities, contractor and subcontractor personnel and equipment,
visitors, and field orders on a daily basis.
Some specific duties include:
V Oversee Quality Assurance of the construction activities to conform to
plans and specifications.
Monitor contractor work performance for deficiencies and recommend any
special testing needed.
Perform all special inspection required for project.
' Maintain daily onsite project log and as -built schedule report. Prepare
daily reports of observations and activities. Secure the general
contractor's daily log reports. Our reports will be based on the Caltrans daily report forms.
V Perform periodic digital video and still photography of the progress of the project. Said photography will
show date of the events and conditions being recorded. All non-compliance issues as well as any other site
condition requested by the City shall be photographed. Our inspectors will take photographs of work on a
daily basis as part of our inspection protocol.
Maintain a daily log containing a record of weather, contractors, work onsite, number of workers, work
accomplished, problems encountered, solutions agreed upon, and other similar relevant data as the City
may require.
V' Monitor and endeavor to ensure the establishment and implementation of appropriate safety programs by
the Contractor.
V Ensure compliance to reporting requirements of the State Water Resources Control Board as it relates to
SWPP reporting.
Change Order Review/Dispute Resolution: Our team will review any requests for contract change orders to verify
the work is necessary, outside of the contract, and we will negotiate the best way from the City perspective to pay for
the work, whether that is time and materials, unit prices, or a negotiated amount. We will advise City as to their effect
on the contract time and cost. We can perform independent estimates of proposed change order work when
necessary or when directed by the City. The Construction Manager will then make a recommendation for approval,
which according to the City policy, will ultimately need approval by the Public Works Director.
Materials Testing Management: We will coordinate and schedule the materials testing services to acquire the
necessary services, and reports, in the most efficient manner.
Compaction Control: We will coordinate compaction testing with the soil engineering firm to verify all compaction
conducted meets all requirements and specifications.
Progress Payment Processing: We will review progress payments and verify quantitieslunit prices, amount due,
certified payroll, appropriate rates, etc. If the review shows the progress payment is accurate, vie will then
recommend payment and circulate it to Project Manager for additional review, signature and approval.
Agency Coordination: We will coordinate any work with other agencies to maximize contractor efficiency and keep
the project on schedule.
interwest Consulting Group I vvwvv.interwa t rr .co
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