EAST PALO ALTO
CITY COUNCIL
STAFF REPORT
DATE: April 19, 2022
TO: Honorable Mayor and Members of the City Council
VIA: Jaime M. Fontes, City Manager
BY: Humza Javed, City Engineer
Kamal Fallaha, Public Works Director
SUBJECT: Contract Amendment No. 1 with Zoon Engineering, Inc. for the Bay Road Phase II and III Improvements
Recommendation
Adopt a Resolution authorizing the City Manager to execute a First Amendment to the Contract with Zoon Engineering to increase the budget by $49,830 for a new not-to-exceed total of $1,035,925 for construction management and project close-out services pertaining to the Bay Road project Phase II and III Improvements project.
Alignment with City Council Strategic Plan
This recommendation is primarily aligned with:
Priority No. 1: Enhance Public Safety and Emergency Preparedness Priority No. 2: Enhance Economic Vitality
Priority No. 4: Improve Public Facilities and Infrastructure Priority No. 6: Create a Healthy and Safe Community
Background
The Bay Road Phase II and III Improvements project began construction in the Summer of 2020. Resolution No. 10-2020 authorized a contract with Teichert & Son, Inc. (Teichert) for construction services, and a contract with Zoon Engineering for construction management and inspection services. The construction work was completed in February 2022.
On December 21, 2021, the Council adopted a Resolution authorizing a contract amendment with Teichert & Son, Inc., the construction contractor, to increase the budget by $2,345,638 in order to complete additional work related to the project. The additional work required additional time, which was approximately six months.
The City’s construction management consultant, Zoon Engineering, who has been overseeing the contractor and construction activities on behalf of the City on-site on a daily basis, has been managing its budget over the course of the last six months for the additional work. As of March 2022, the construction management contract has been depleted. Although, the project is complete, there are number of services still needed from Zoon Engineering for project closeout. This work includes oversight of PG&E work along Bay Road for electrical service that needs to be relocated, review and approval of project As-Builts (construction drawings), support with Caltrans grant closeout documentation, execution of change orders, and support with claim settlement.
Analysis
The additional work pertaining to the construction management contract will continue through the summer 2022 and is identified in the Zoon Engineering proposal, included as Attachment
2. The additional amount is $49,830.
This amount includes review and approval of project As-Builts (construction drawings) based on field changes that will be prepared and finalized by the designer, city inspector as well as construction manager; support with Caltrans grant closeout documentation for federal funds which includes various forms for inspection, close out, labor compliance, disadvantaged business enterprise, etc., and execution of change orders based on the December 2021 contract amendment with Teichert.
This amount also includes support for a claim settlement report if a global settlement is reached between the City and Teichert on the notice of potential claims (NOPCs) for the project. The budget forecast for this item does not cover extensive efforts needed to provide for claims and dispute resolution support. If the City Council chooses to go through dispute resolution, then additional support services may be required in the future.
Fiscal Impact
Funds are available in the EDA grant for this additional cost. The amount needed from the EDA grant will be $39,864. A 20% city match in the amount of $9,966 will be needed from the CIP fund 301 (local portion of the EDA grant) and is budgeted.
Public Notice
The public was provided notice of this agenda item by posting the City Council agenda on the City’s official bulletin board outside City Hall and making the agenda and report available at the City’s website and at the San Mateo Co. Library located at 2415 University Avenue, East Palo Alto.
Environmental
The action being considered does not constitute a “Project” within the meaning of the California Environmental Quality Act (CEQA), pursuant to CEQA Guideline section 15378 (b)(5), in that it is a government administrative activity that will not result in direct or indirect changes in the environment.
Attachments
1. Resolution
2. Proposal