HomeMy WebLinkAbout11 - Newport Boulevard / Pacific Coast Highway "Arches" Interchange Improvements - Contract No. 2886September 28,1998
CITY COUNCIL AGENDA
ITEM NO. 11
TO: MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: PUBLIC WORKS DEPARTMENT
SUBJECT: NEWPORT BOULEVARD / PACIFIC COAST HIGHWAY "ARCHES"
INTERCHANGE IMPROVEMENTS — CONTRACT NO. 2886
RECOMMENDATIONS:
1. Authorize Amendment No. .2 to the Professional Services Agreement with MK
Centennial (MK) for construction management services.
2. Authorize a budget amendment to appropriate $56,653.37 from the Circulation and
Transportation Fund, unappropriated surplus fund balance to Account No. 7261 -
05100199.
DISCUSSION:
On June 23, 1997, the City Council approved a professional services agreement with
MK to provide contract management services for the Arches Interchange construction
project. MK is doing a very good job of managing the construction activities, and it is
anticipated that the project will be completed on schedule by April 1, 1999. Surveying
is a part of the construction management services provided by MK, and MK has
requested that their contract surveying allocation be increased by $56,653.37.
As this complicated project has progressed through its various stages, the contracted
surveying and call -back surveying has exceeded projections. In order to complete the
contract, the allocation for surveying needs to be increased. Additional surveying has
been required because 1) the project site is unusually confined, such that the work
must be performed in phases instead of a single operation; 2) the site is laden with
utilities (water, gas, PacBell, Edison, Comcast, and Sanitation District transmission
mains and telemetry) that must be replaced, relocated, undergrounded and /or protected
to accommodate each phase of constructing the improvements; 3) provisions are being
made along Newport Boulevard to underground utility feeds to homes along Clubhouse
Avenue; and 4) traffic flow must be routed around wherever the utility companies are
working.
Most of the utilities are underground, and many have been found to be in locations
different than shown on record plans. This causes certain elements of work to be
surveyed more than once, and other work to be surveyed in bits and pieces. As a
consequence, MK's survey subcontractor has been called out many extra times to
SUBJECT: Newport Boulevard And Coast Highway "Arches" Interchange Improvements - Contract No. 2886
September 28, 1998
Page 2
layout and to re- establish surveys for the Contractor and for utility companies. This is
"unforeseen" work that is not included in the City's contract with MK. The City and its
representatives were responsible for coordination of these efforts in order to make all
planned improvements and have had to request extra surveying on many occasions.
MK has requested an amendment to their construction management contract to cover
the increased surveying costs. A copy of MK's August 13, 1998, proposal is attached,
with the amount needed as follows:
Surveying Subcontract Items
Authorized
Projected
Amount Needed
In scope services
$89,294.00
$99,852.06
$10,558.06
Out of scope services
0
46,095.31
46,095.31
Totals
$89,294.00
$145,947.37
$56,653.37
If authorized, a budget amendment to cover the net amount needed, $56,653.37, will
increase MK's construction management fee by 5.4% from $1,047,722.00 to
$1,104,375.37.
The attached draft Amendment No. 2 provides for compensation to MK Centennial for
these additional services. Staff recommends that the amendment be approved and a
budget amendment be approved to appropriate funds from the Transportation and
Circulation Fund, unappropriated surplus fund balance to Account No. 7261- C5100199.
Res pect sub mitt
PUBLIC ORKS DEPARTMENT
Don Webb, Director
Lloy,dR. Dalton,
Project
Attachments: Current Professional Services Agreement with MK Centennial
MK Centennial proposal of August 13, 1998
Proposed Amendment No. 2 to Professional Services Agreement
Budget Amendment
f:\groups\pubworks\ council \fy98- 99\sept -28 \M K -Cenle
PROFESSIONAL SERVICES AGREEMENT
NEWPORT BOULEVARD / PACIFIC COAST HIGHWAY
"ARCHES"
INTERCHANGEIMPROVEMENTS
THIS AGREEMENT, entered into thisZ74day of
1997 by and between the CITY OF NEWPORT BEACH , a Municipal Corporation
(hereinafter referred to as "City "), and MK Centennial, whose address is 17300 Red Hill
Avenue, Suite 150, Irvine, CA 92614 (hereinafter referred to as "Consultant "), is made
with reference to the following:
RECITALS
A. City is a Municipal Corporation duly organized and validly existing under the
laws of the State of California with the power to carry on its business as it is now being
conducted under the statutes of the State of California and the Charter of City.
B. The principal member of Consultant's Irvine office is Michael B. Harrington.
C. City desires to engage Consultant to provide construction management
services for NEWPORT BOULEVARD / PACIFIC COAST HIGHWAY "ARCHES
INTERCHANGE IMPROVEMENTS (hereinafter referred to as "Project "), upon the terms
and conditions contained in this Agreement.
NOW, THEREFORE, it is mutually agreed by and between the undersigned parties
as follows:
1. TERM
The Term of this Agreement shall commence on the—day of .1997,
and shall terminate on the day of 19_, unless terminated earlier as
set forth herein.
2. SERVICES TO BE PERFORMED
Consultant shall perform the tasks set forth in Exhibit "A ", attached hereto and
incorporated herein by this reference.
3. COMPENSATION TO CONSULTANT
Consultant shall be compensated for services performed pursuant to this
Agreement in the amount and manner set forth in Exhibit "B ", attached hereto and
incorporated herein by this reference. The maximum fee shall not exceed $928,014.00.
4. STANDARD OF CARE
All of the work shall be performed by Consultant or under Consultant's supervision.
Consultant represents that it possesses the professional and technical personnel required
to perform the services required by this Agreement and that it will perform all services in a
manner commensurate with the community professional standards. All services shall be
performed by qualified and experienced personnel who are not employed by City nor have
any contractual relationship with City. The Consultant shall be responsible to City for any
errors or omissions in the execution of this Agreement. Consultant represents and
warrants to City that it has or shall obtain all licenses, permits, qualifications and approvals
required of its profession. Consultant further represents and warrants that it shall keep in
effect all such licenses, permits and other approvals during the term of this Agreement.
5. INDEPENDENT PARTIES
City retains Consultant on an independent contractor basis and Consultant is not an
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
express terms of this Agreement. No civil service status or other right of employment with
City will be acquired by virtue of Consultant's services. None of the benefits provided by
City to its employees, including, but not limited to, unemployment insurance, worker's
compensation plans, vacation and sick leave, are available from City to Consultant, its
employees or agent. Deductions shall not be made for any state or federal taxes, FICA
payments, PERS payments or other purposes normally associated with an employer-
employee relationship from any fees due Consultant. Payments of the above items, if
required, are the responsibility of Consultant.
6. COOPERATION
Consultant agrees to work closely and cooperate fully with City's designated Project
Administrator, and any other agencies which may have jurisdiction or interest in the work
to be performed. City agrees to cooperate with Consultant on Project.
7. PROJECT MANAGER
The Consultant shall assign the project to a Project Manager, who shall coordinate
all phases of Project. This Project Manager shall be available to the City at all times. The
Consultant has designated J. David Wanderling, P.E. to be its Project Manager.
8. TIME OF PERFORMANCE
The tasks to be performed by Consultant shall be in accordance with the schedule
specified in Exhibit "A". &.*W
. Each party hereby agrees
to provide timely notice to the other of any violation occurring under this Section and the
cause thereof.
9. CITY POLICY
Consultant will discuss and review all matters relating to policy and project direction
with the Project Administrator in advance of all critical decision points in order to ensure
that Project proceeds in a manner consistent with City goals and policies.
10. CONFORMANCE TO APPLICABLE REQUIREMENT
All work prepared by Consultant shall conform to applicable city, county, state and
federal requirements and be subject to approval of the Project Administrator and City
Council.
11. PROGRESS
Consultant is responsible to keep the Project Administrator and /or his /her duly
authorized designee informed on a regular basis regarding the status and progress of the
work, activities performed and planned, and any meetings that have been scheduled or
are desired.
12. HOLD HARMLESS
n
Consultant agrees to indemnify, defend, save and hold harmless City, its City
Council, boards and commissions, officers and employees from and against any and all
loss, damages, liability, claims, suites, costs and expenses for damages of any nature
whatsoever, including, but not limited to, bodily injury, death, personal injury, property
damages, attorneys fees and court costs arising from any and all negligent actions of
Consultant, its employees, agents or subcontracts in the performance of services or work
conducted or performed pursuant to this Agreement.
Consultant shall indemnify and hold harmless City, its City Council, boards and
commissions, officers and employees from and against any and all loss, damages, liability,
claims, suits, costs and expenses whatsoever, including reasonable attorneys' fees,
accruing or resulting to any and all persons, firms or corporations furnishing or supplying
work, services, materials, equipment or supplies arising from or in any manner connected
to Consultant's negligent performance of services or work conducted or performed
pursuant to this Agreement.
13. INSURANCE
Without limiting consultant's indemnification of City, Consultant shall obtain and
provide and maintain at its own expense during the term of this Agreement policy or
policies of liability insurance of the type and amounts described below and satisfactory to
City. Such policies shall be signed by a person authorized by that insurer to bind coverage
on its behalf and must be filed with City prior to exercising any right or performing any work
pursuant to this Agreement. Consultant's insurance policies, with the exception of
Professional Errors and Omissions, shall add as additional insured City, its elected
officials, officers and employees for all liability arising from Consultant's services as
described herein.
Prior to the commencement of any services hereunder, Consultant shall provide to
City certificates of insurance from an insurance company certified to do business in the
State of California, with original endorsements, and portions of Consultant's policies, if
requested by City, for the following insurance, with Best's Class A7 or better carriers;
unless otherwise approved by City:
A. Worker's compensation insurance covering all employees and principals of
Consultant, per the laws of the State of California;
B. Commercial general liability insurance covering third party liability risks,
including without limitation, contractual liability, in a minimum amount of $1 million
combined single limit per occurrence for bodily injury, personal injury and property damage.
If commercial general liability insurance or other form with a general aggregate is used,
either the general aggregate shall apply separately to this project, or the general aggregate
limit shall be twice the occurrence limit;
C. Commercial auto liability and property insurance covering any owned and
rented vehicles of Consultant in a minimum amount of $1 million combined single limit per
accident for bodily injury and property damage.
D. Professional errors and omissions insurance which covers the services to be
performed in connection with this Agreement in the minimum amount of $1 Million.
Said policy or policies shall be endorsed to state that coverage shall not be
suspended, voided nor canceled by either party, or reduced in coverage or in limits except
after thirty (30) days' prior notice has been given in writing to City. Consultant shall give to
City prompt and timely notice of claim made or suit instituted arising out of Consultant's
operation hereunder. Consultant shall also procure and maintain, at its own cost and
expense, any additional kinds of insurance, which in its own judgment may be necessary
for its proper protection and prosecution of the work.
Consultant agrees that in the event of loss due to any of the perils for which it has
agreed to provide comprehensive general and automotive liability insurance, that
Consultant shall look solely to its insurance for recovery. Consultant hereby grants to City,
on behalf of any insurer providing comprehensive general and automotive liability
insurance to either Consultant or City with respect to the services of Consultant herein, a
waiver of any right of subrogation which any such insurer of said Consultant may acquire
against City by virtue of the payment of any loss under such insurance.
14. PROHIBITION AGAINST TRANSFERS
Consultant shall not assign, sublease, hypothecate or transfer this Agreement or
any interest in this Agreement, directly or indirectly, by operation of law or otherwise
without prior written consent of City. Any attempt to do so without consent of City shall be
null and void, and any assignee, sublessee, hypothecate or transferee shall acquire no
right or interest by reason of an attempted assignment, hypothecation or transfer.
The sale, assignment, transfer or other disposition of any of the issued and
outstanding capital stock of Consultant, or of the interest of any general partner or joint
venturer or syndicate member or cotenant if Consultant is a partnership or joint venture or
syndicate or cotenancy, which shall result in changing the control of Consultant, shall be
construed as an assignment of this Agreement. Control means fifty percent (50 %) or more
of the voting power, or twenty -five percent (25 %) or more of the assets of the corporation,
partnership or joint venture.
15. REPORTS
Each and every report, draft, work product, map, record and other document
reproduced, prepared or caused to be prepared by Consultant pursuant to or in connection
with this Agreement shall be the exclusive property of City.
No report, information or other data given to or prepared or assembled by
Consultant pursuant to this Agreement shall be made available to any individual or
organization by Consultant without prior approval by City.
Consultant shall, at such time and in such forms as City may require, furnish reports
concerning the status of services required under this Agreement.
16. CONFIDENTIALITY
The information which results from the services in this Agreement is to be kept
confidential unless the release of information is authorized by City.
17. CITY'S RESPONSIBILITIES
City shall furnish to Consultant base maps, existing studies, ordinances, data and
other existing information as shall be requested by Consultant and materials in City's
possession necessary for Consultant to complete the work contemplated by this
Agreement. City further agrees to provide all such materials in a timely manner so as not
to cause delays in Consultant's work schedule.
18. ADMINISTRATION
This Agreement will be administered by City's Public Works Department. City's
Public Works Director or his /her designees shall be considered the Project Administrator
and shall have the authority act for City under this Agreement. The Project Administrator
or his /her authorized representative shall represent the City in all matters pertaining to the
services to be rendered pursuant to this Agreement.
19. EXTRA WORK
Consultant shall receive compensation for extra work authorized by City in
accordance with the schedule of billing rates set forth in Exhibit "B." All extra work must
be authorized in writing by City and Consultant shall not be entitled to extra compensation
without authorization.
20. RECORDS
Consultant shall keep records and invoices in connection with its work to be
performed under this Agreement. Consultant shall maintain complete and accurate
records with respect to the costs incurred under this Agreement. All such records shall be
clearly identifiable. Consultant shall allow a representative of City during normal business
hours to examine, audit and make transcripts or copies of such records. Consultant shall
allow inspection of all work, data, documents, proceedings and activities related to the
Agreement for a period of three (3) years from the date of final payment under this
Agreement.
21. REIMBURSEMENT FOR EXPENSES
Consultant shall not be reimbursed for expenses unless the expenses were
previously authorized in writing by City.
22. MONTHLY INVOICES
Consultant shall submit invoices to City on a monthly basis in accordance with
Consultant's schedule of fees contained in Exhibit "B" hereof. Each invoice will be
itemized. Each invoice shall show the number of hours worked per person /consultant and
the nature of the work performed.
23. PAYMENT OF COMPENSATION
City shall make payments to Consultant within thirty (30) days of receiving a
monthly invoice, unless City disputes the amount Consultant claims is owned under this
Agreement.
24. WITHHOLDINGS
City may withhold payment of any disputed sums until satisfaction of the dispute
with respect to such payment. Such withholding shall not be deemed to constitute a failure
to pay according to the terms of this Agreement. Consultant shall not discontinue its work
for a period of thirty (30) days from the date of withholding as a result of such withholding.
Consultant shall have an immediate right to appeal to the City Manager or his designee
with respect to such disputed sums. The determination of the City Manager with respect
to such matter shall be final. Consultant shall be entitled to receive interest on any
withheld sums at the rate of seven percent (7 %) per annum from the date of withholding of
any amounts found to have been improperly withheld.
25. ERRORS AND OMISSIONS
In the event that City determines that Consultant's negligence, errors or omissions
in the performance of work under this Agreement has resulted in expense to City greater
in
than would have resulted if there were no such negligence, errors or omissions in
Consultant's services, Consultant shall reimburse City for the additional expenses incurred
by City including engineering, construction and /or restoration expense. Nothing herein is
intended to limit City's rights under any other sections of this Agreement.
26. FIVE PERCENT (5 %) WITHHOLDING
City may withhold an amount equivalent to five percent (5 %) of the total
compensation provided herein, to be released to Consultant upon acceptance of all
construction work by the Mayor and City Council. City reserves the right to refuse to pay
all billings requesting amounts in excess of ninety -five percent (95 %) of the total
compensation provided herein until Project is completed and accepted as specified above.
27. NONDISCRIMINATION BY CONSULTANT
Consultant represents and agrees that Consultant, its affiliates, subsidiaries or
holding companies do not and will not discriminate against any subcontractor, consultant,
employee or applicable for employment because of race, religion, color, sex, handicap or
national origin. Such nondiscrimination shall include, but not be limited to, the following:
employment, upgrading, demotion, transfers, recruitment, recruitment advertising, layoff,
termination, rates of pay or other forms of compensation and selection for training,
including apprenticeship.
28. CITY'S RIGHT TO EMPLOY OTHER CONSULTANTS
City reserves the right to employ other consultants in connection with Project.
29. CONFLICTS OF INTEREST
31
A. Consultant or its employees may be subject to the provisions of the
California Political Reform Act of 1974 (the "Act "), which (1) requires such persons to
disclose financial interest that may foreseeable be materially affected by the work
performed under this Agreement, and (2) prohibits such persons from making, or
participating in making, decisions that will foreseeable financially affect such interest.
B. If subject to the Act, Consultant shall conform to all requirements of the Act.
Failure to do so constitutes a material breach and is grounds for termination of this
Agreement by City. Consultant shall indemnify and hold harmless City for any claims for
damages resulting from Consultant's violation of this Section.
30. SUBCONTRACTING
A. Consultant shall not subcontract any portion of the work required by this
Agreement, except as expressly stated herein, without prior approval of City.
B. Subcontracts, if any, shall contain a provision making them subject to all
provisions stipulated in this Agreement.
31. NOTICES
All notices, demands, requests or approvals to be given under this Agreement shall
be given in writing and conclusively shall be deemed served when delivered personally or
on the second business day after the deposit thereof in the United States mail, postage
prepaid, registered or certified, addressed as hereinafter provided.
All notices, demands, requests or approvals from Consultant to City shall be
addressed to City at:
City of Newport Beach
3300 Newport Boulevard
P. O. Box 1768
12
Newport Beach, CA 92658 -8915
Attn: Lloyd R. Dalton, P.E.
All notices, demands, requests or approvals from City to Consultant shall be
addressed to Consultant at:
MK Centennial
17300 Red Hill Avenue, Suite 150
Irvine, CA 92614
Attn: Michael B. Harrington, Vice President
32. TERMINATION
In the event Consultant hereto fails or refuses to perform any of the provisions
hereof at the time and in the manner required hereunder, Consultant shall be deemed in
default in the performance of this Agreement. If such default is not cured within a period of
two (2) days, or if more than two (2) days are reasonably required to cure the default and
Consultant fails to give adequate assurance of due performance within two (2) days after
receipt by Consultant from City of written notice of default, specifying the nature of such
default and the steps necessary to cure such default, City may terminate the Agreement
forthwith by giving written notice thereof to Consultant.
City shall have the option, at its sole discretion and without cause, of terminating
this Agreement without cause by giving seven (7) days' prior written notice to Consultant
as provided herein. Upon termination of this Agreement, each party shall pay to the other
party that portion of compensation specified in this Agreement that is earned and unpaid
prior to the effective date of termination.
1 1
33. COST OF LITIGATION
If any legal action is necessary to enforce any provision hereof or for damages by
reason for an alleged breach of any provisions of this Agreement, the prevailing party shall
be entitled to receive from the losing party all costs and expenses in such amount as the
court may adjudge to be reasonable attorneys' fees.
34. COMPLIANCES
Consultant shall comply with all laws, state or federal and all ordinances, rules and
regulations enacted or issued by City.
35. WAIVER
A waiver by City of any breach of any term, covenant or condition contained herein
shall not be deemed to be a waiver of any subsequent breach of the same or any other
term, covenant or condition contained herein whether of the same or a different character.
36. INTEGRATED CONTRACT
This Agreement represents the full and complete understanding of every kind or
nature whatsoever between the parties hereto and all preliminary negotiations and
agreements of whatsoever kind or nature are merged herein. No verbal agreement or
implied covenant shall be held to vary the provisions hereon. Any modification of this
Agreement will be effective only by written execution signed by both City and Consultant.
14
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed
on the day and year first written above.
CITY OF NEWPORT BEACH
A Municipal Corporation
By:
j MAYOR
ATTEST:
CONSULTANT
�2
CITY CLERK
AP7 TO FORM:
CITY ATTORNEY
i�;
MK CENTENNIA
fAusers \pbw \Idalton\agreemts Wt K- Ce nt. doc
5/21/97
Consultant's construction management (CM) services shall include, but not be limited to,
providing the following items of work:
1. Furnishing the CM team shown on attached sheet ORGANIZATION to provide full -
time inspection, including daily log of activities, during the construction period
(anticipated to be 18 months).
2. (Not used)
3. Providing a constructability review of PS &E for the project, to be completed and
submitted in writing to City staff no later than May 9, 1997.
4. Attending the pre -bid meeting.
5. Recording by video and phototography all exterior privately- and publicly -owned
improvements in the field, and collecting other field data (specify in your proposal)
as required to adequately document before -, during -, and after - construction
conditions.
6. (Not used)
7. Arranging for and conducting a preconstruction meeting and attending a partnering
conference; attending repartnering conferences as needed to avoid or resolve
disputes; preparing and distributing minutes for the preconstruction meeting.
8. Implementing a system for tracking and managing paper and electronic files,
including letters, requests for information, submittals, contracts, reports, manuals,
progress payments, change orders, etc.
9. Monitoring and reviewing the Contractor's construction schedule, and notifying the
City and the Contractor of actual or potential deviations from the most recently -
approved schedule. Pro - actively work with the Contractor and City to identify
possible schedule set - backs.
10. Accepting and reviewing the Contractor's shop drawings and submittals, and
returning them for non - compliance, if necessary; recommending approval, and
tracking and prompting timely City and design engineer approval of shop drawings
and submittals.
11. Conducting periodic reviews and written notifications to the Contractor and the City
concerning jobsite safety.
12. Furnishing special inspections, testing and surveying services, and identifing those
services that are traditionally provided by the Contractor. Materials testing to
include laboratory work.
13. Observing and documenting that the work complies with the bid documents and
with permits issued by other agencies; providing notifications to the Contractor and
to the appropriate agencies when work does not comply; and preparing periodic
inspection reports.
14. Coordinating the Traffic Management Plan, inspection and testing work provided by
the Contractor and /or City.
15. Meeting with others to coordinate the Arches construction with their construction;
that is,
a) The City will most likely landscape the vacant lot at Via Lido between
Newport Boulevard & Central Avenue before the end of 1997;
b) Within a year, the Sanitation Districts of Orange County intends to begin
constructing a new "Lido" pump station on the vacant lot at 3531 Newport
Boulevard to replace their existing pump station at Newport Boulevard &
Short Street, whereupon their existing pump station will be demolished and
park improvements built upon the existing and new pump station sites.
c) Within a year, Hoag Memorial Hospital intends to construct a parking garage
and an administration building along the northerly side of PCH adjacent to
the Arches interchange;
d) Proximate to the completion of the Arches project, Caltrans intends tojoin"
the Newport Boulevard roadway construction of the Arches contract and
rehabilitate s/b Newport Boulevard northerly of Hospital Road and n/b
Newport Boulevard northerly of the Old Newport Boulevard hook ramps;
e) Southern California Edison, Pacific Bell, and Comcast Cablevision lines will
be undergrounded along Newport Boulevard south of Pacific Coast Highway
prior to the end of 1997; and
f) Southern California Gas Company, Southern California Edison, Pacific Bell,
and Comcast Cablevision lines will be relocated along Newport Boulevard
and Pacific Coast Highway during construction.
16. Interpreting the contract documents or requesting the design engineer to interpret
the contact documents, and if necessary, requesting clarifications, details, field
meetings, etc. from the design engineer.
17. Providing a telephone "hot line" and a broad scope of public relation activities with
surrounding property owners, residential and business associations, Hoag
Memorial Hospital, Caltrans, the City Council, and the local news media.
18. Conducting regularly - scheduled (at least weekly) construction meetings with the
Contractor, and preparing and distributing detailed minutes.
19. Coordinating inspections by Caltrans oversight personnel, and providing Caltrans
required progress reports to the City and Caltrans.
20. Issuing plan revisions and assuring that the Contractor maintains accurate records
of "as- built' changes.
21. Reviewing change order requests for merit; preparing independent cost estimates;
negotiating and preparing change orders for City review and approval; apprising the
City of the cumulative effect of change orders.
22. Reviewing payment requests and verifying pay items. Recommending payments
and preparing payment documentation for processing by the City.
23. Meeting with City officials and conducting public meetings as needed.
24. Providing other items of work that you view as beneficial to the project.
25. Providing cost saving measures for the City's consideration.
26. Developing a "punch list" at the conclusion of construction.
EXHIBIT B
i`MKiCENT,EN"' -' `18'MONTH SCHEDULE)
'
r CITY OF NEWPO T BEACH
.= CONSTRUCTION MANAGEMENT SERVICES ._
�'�'' �,.
�`� �F
'�F •i � f. ; �"'N,�.. ';i \cGEluk,.a.n -1Fr ...'N::�a .��'-�1"'<:�r: i
#4'
_,, i-_',r M"�.i4rl
I. DIRECT SALARY COSTS
Persohnel�Cate"
Rate #;tgj?e�?Hgu,�sf+
f To tal Y
Resident Engineer
$ 93.00
3,130
$
291 .090.00
Asst R.E. / O.E. / Inspector
$ 70.00
2,880
$
201,600.00
Bridge Senior Engineer
$ 110.00
48
$
5.280.00
Structures Engineer
$ 75.00
2.330
$
174.750.00
Bridge 1 Roadway Inspector
$ 70.00
2,248
$
157.360.00
Subtotal 10,636
$
830,080.00 (1)
II OTHER DIRECT COSTS
.;'ri'..•:Item "..:._ :.. .:
Amount
REPRODUCTION COST. POSTAGE, AND OFFICE SUPPLY
$
5,000.00
Subtotal
$
5,000.00 (2)
III. SUBCONTRACTOR'S COSTS
-_ Subconsultant `.
Amount.". .
PSOMAS & ASSOCIATES (SURVEYS)
$
66,934.00
GEOBASE, INC. (MATERIALS TESTING)
$
26,000.00
Subtotal
$
92.934.00 (3)
V. TOTAL AMOUNT
Total
$
928.014.00 (Total 1-3)
ASSUMPTIONS:
1 Partnering is included in construction contract.
2 Field trailer is included in construction contract.
3 Construction staking is Included in the C.M. contract.
4 ROW, control staking and check survey included in C.M. contract.
5 Photo survey and vibration /noise monitoring is included in construction contract.
6 Eighteen months construction, fourteen months bridge construction.
7 Minimal overtime required by staggering shifts.
8 Materials testing includes lab work only.
AMENDMENT NO. 2
TO
PROFESSIONAL SERVICES AGREEMENT
CONSTRUCTION MANAGEMENT SERVICES
NEWPORT BOULEVARD AND PACIFIC COAST HIGHWAY (SR 5511)
"ARCHES" INTERCHANGE IMPROVEMENTS
This AMENDMENT NO. 2, made and entered into this day of
September, 1998, by and between the City of Newport Beach, a municipal corporation
(hereinafter referred to as "CITY "), and MK Centennial, whose address is 17300 Red
Hill Avenue, Suite 150, Irvine, California 92614, (hereinafter referred to as
"CONSULTANT'), is made with reference to the following:
RECITALS:
A. On June 23, 1997, a Professional Services Agreement for
Construction Management Services related to the Newport Boulevard and Pacific Coast
Highway (SR 55/1) "Arches" Interchange Improvements was entered into by and
between CITY and CONSULTANT, (hereinafter referred to as "AGREEMENT').
B. CITY and CONSULTANT desire to increase the scope of
construction management services heretofore provided by AGREEMENT.
C. Section 36 of AGREEMENT authorizes CITY and CONSULTANT
to modify AGREEMENT by entering into written amendments signed by both parties.
D. CITY and CONSULTANT have heretofore amended AGREEMENT
by executing AMENDMENT NO. 1.
E. CITY and CONSULTANT mutually desire to further amend
AGREEMENT (hereinafter referred to as "AMENDMENT NO. 2 ") as provided herein.
NOW, THEREFORE, the parties hereto agree as follows:
1. CONSULTANT shall provide additional surveying services as set
forth in Exhibit "A ", attached hereto and incorporated herein by reference.
2. Compensation to be paid to CONSULTANT for such additional
surveying services shall not exceed $56,653.37.
3. CONSULTANT's not -to- exceed compensation to be paid under
AGREEMENT is hereby increased from $1,047,722 to $1,104,375.37.
4. Except as expressly modified herein, all other provisions, terms,
and covenants set forth in AGREEMENT and AMENDMENT NO. 1 shall remain the
same and continue to be in full force and effect.
IN WITNESS WHEREOF, the parties hereto have executed this AMENDMENT
NO. 2 on the date first above written.
APPROVED AS TO FORM:
City Attorney
ATTEST:
City Clerk
fAgrou ps\pu bwork s\agmt\99\M KCamnd2.doc
CITY OF NEWPORT BEACH,
a municipal corporation
M
Mayor
CONSULTANT
W
MK Centennial
2
MK CENTENNIALI
G ENTENNIAL ENGINEEFIING. INC.
August 13, 1998
Mr. Bill Patapoff, City Engineer
City of Newport Beach
3300 Newport Boulevard.
Newport Beach, CA 92658 -8915
17300 REDHILL AVENUE, SUITE 150
IRVINE, CALIFORNIA 92614
TEL: 714- 756 -6006
FAX: 714- 756 -6116
Subject: Newport Arches Interchange - Contract C -2886
Construction Engineering, Inspection, Material Testing, and Survey Contract
Survey Subcontract
At our last meeting you requested an assessment of the restaking, cost to complete, and explanation for
the overrun for our survey subcontract.
We reviewed the restaking back -up information by Psomas and determined that the restakes to date total
$5694.00. This information has been forwarded to Brutoco.
Our estimated projection for the total cost of survey to complete is $150,590.43. This figure is based on
survey being 75% complete. Construction is 60% complete. Historically, survey tapers off in the later
stages of construction. To date, we have been authorized $66,934.00 for survey per our original contract.
Additionally, the City Council has authorized staff to execute an amendment to our contract in the
amount of $22,360.00 for the staking for the RCB and utility relocations. We are now requesting an
additional amendment of $56,653.37.
The reasons for the overrun are as follows. Since the beginning of the contract, Psonhas has been
tracking in and out of scope survey charges based on their proposal which referenced the Caltrans staking
manual. To date, Psomas has incurred $34,571.48 in out of scope costs. Based on the City's criteria
these responsibilities have been allocated for potential third party back-charges as follows: Brutoco
$8,250.16, City $8,135.54, MKC $4,643.06, and Moffatt $13,542.72. Based on percent complete, we
have projected an additional $11,523.83 of out of scope services for which the responsibilities can be
determined as these costs are incurred. Finally, we have projected an additional cost to complete for the
in scope services of $15,201.12 (above and beyond the current authorization). This can be attributed to
the aggressive schedule and complexity of the job which have resulted in the contractor requesting
survey in small areas at a time. This has resulted in additional survey costs.
It should also be noted that at proposal time, Psomas was instructed to base the scope of their work and
proposal on Section 13 "Staking Information" of the Caltrans Surveys Manual and their historical costs.
Psomas indicated that historically on projects built according to Caltrans standards, 1 -2% of the
construction amount (Engineer's Estimate $ 10 trillion) would be required ($100- $200K). We believed
Psomas' estimate to be reasonable. On a similarly sized contract for the Port of Long Beach we had
recently completed, the Port spent approximately $480K using their own crews. However, during the
negotiations, the City had indicated that their resources were limited and imposed a total cap on CM fees
of $1 million (apx. 10% of the Engineer's Estimate). As a result, we were required to reduce our total
CM budget. As such, Psomas reduced their proposal to the "bare minimum ". Their revised proposal was
$66,934.00 which may have been considered optimistic. However, we believed that MKC could perform
(which we have) the surveys typically provided by the Caltrans Bridge Department in accordance with
the Bridge Construction Manuals for grading bridge structures. Our historical costs indicate that
typically 15% is spent on construction engineering for federal funded contracts including construction
engineering, inspection, survey, and testing. This is consistent with federal guidelines and staffing for
Caltrans contracts. Currently, we are budgeted only 7.5% of the construction amount.
(a A MORRISO" K"UIDSEN COMPANY
Finally, the original cost proposal and CM contract including survey is based on estimated hours and a
rate schedule. The cost proposal was not intended for a lump sum or guaranteed maximum amount. In
order to provide a quote for a guaranteed maximum or lump sum contract, the scope of work should be
precise with proper allocations for risks and reward. Psomas provided a proposal based on lowest
possible cost without any contingency for unknown risk (e.g. dependency on Contractors operations) or
additional scope (e.g. survey outside of the Caltrans Staking Manual). Thus, it is unfair to expect Psomas
to absorb heavy losses against a modest profit (typically 10 %, or about $6K) without a proper allocation
for risk involved. The Contract states a not to exceed figure in accordance with exhibits (our proposals)
rather than a guaranteed maximum. Extra work requires authorization from the City. These clauses are
standard to ensure consultants do not exceed owners internal (e.g. City Council) authorizations and
budgets. We intend to honor these provisions and we will not exceed out total contract authorization
prior to amending our contract. However, these should not be construed as guaranteed maximums
without the proper allocations for risk.
I will arrange a meeting with you at your earliest convenience to review this proposal. If you have any
questions or need additional information, please call me at (714) 756 -6006.
Sincerely,
ne Pottinger, P.E.
t Director of Construction Services
J P/J DW:
Attachments
cc: Robert Close, Vice President
Dave Wanderling, Project Manager
Kari Lounan, Project Manager ( Psomas)
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City of Newport Beach
BUDGET AMENDMENT
1998 -99
EFFECT ON BUDGETARY FUND BALANCE:
Increase Revenue Estimates
�X Increase Budget Appropriations ANQ X
Transfer Budget Appropriations
from existing budget appropriations
from additional estimated revenues
X from unappropriated fund balance
EXPLANATION:
NO. BA- 013
AMOUNT: 55s,s53.3T
Increase in Budgetary Fund Balance
Decrease in Budgetary Fund Balance
No effect on Budgetary Fund Balance
This budget amendment is requested to provide for the following:
To appropriate $56,653.37 from the Circulation and Transportation Fund, unappropriated surplus fund balance to
the PCH /Newport Boulevard capital project.
ACCOUNTING ENTRY:
BUDGETARY FUND BALANCE
Fund Account
3605
REVENUE APPROPRIATIONS (3601)
Fund /Division Account
EXPENDITURE APPROPRIATIONS (3603)
Amount
Debit Credit
Description
Fund Balance Control $56,653.37
Description
Signed: 9—/8
ial pr val: finance Director Date
Signed:
Ad finis a[ ve Approval: —City Manager Date
Signed:
City Council Approval: City Clerk Date
Description
Division
Number
7261 Circulation & Transportation Fund
Account
Number
C5100199 PCH /Newport Blvd Project $56,653.37
Division
Number
Account
Number
Division
Number
Account
Number
Division
Number
Account
Number
Division
Number
Account
Number
Signed: 9—/8
ial pr val: finance Director Date
Signed:
Ad finis a[ ve Approval: —City Manager Date
Signed:
City Council Approval: City Clerk Date