PISMO BEACH COUNCIL AGENDA REPORT
Agenda Item #9.H
SUBJECT/TITLE:
AMENDMENT #1 TO THE AGREEMENT WITH ENGEO INCORPORATED FOR
ENGINEERING SERVICES DURING CONSTRUCTION OF THE OCEAN BOULEVARD
IMPROVEMENTS PROJECT
RECOMMENDATION:
Adopt a Resolution authorizing the City Manager to execute Amendment #1 to the existing Professional Services Agreement with ENGEO Incorporated in the amount of $160,000 for Engineering Services During Construction (ESDC) for the Ocean Boulevard Improvements Project.
BACKGROUND:
On December 21, 2021, a Professional Services Agreement with TerraCosta Consulting Group (TerraCosta) was approved by City Council in the amount of $192,000 for Engineering Services During Construction (ESDC) for the Ocean Boulevard Improvements Project. In May 2022 a Novation was executed due to a corporate reorganization, changing TerraCosta to ENGEO Incorporated (ENGEO).
Construction of the project is approximately 70% complete, and over the course of the project several issues arose that have resulted in an increased scope of work for ENGEO to address as the Engineer of Record. These issues include but are not limited to:
Low compressive strength in portions of the structural shotcrete (section of vertical face) for the bluff stabilization
Inaccurate locations for a portion of tiebacks (horizontal reinforcement) for bluff stabilization
Anomalies (voids or pockets) in concrete cast-in-drilled-hole (CIDH) pile foundations (vertical reinforcement) for bluff stabilization
The issues have generated ten construction change orders to the contractor’s construction contract, consisting of charges and credits, resulting in a net increase in construction cost of $60,024. The project budget includes a $631,704 contingency.
Considering the construction change orders, there are $571,680 of remaining contingency funds available to support the increased consultant costs. While the cost of this amendment is significant, investment with the engineering consultant has resulted in nearly $100,000 in construction costs savings.
ENGEO has provided a cost proposal to cover the increased work that has been required to date. The total contract cost including the proposed Amendment #1 is $352,000.
9.H-1Council Agenda 12-20-2022
Conclusion and Recommendation
Staff recommends the Council adopt a Resolution (Attachment 1) authorizing the City Manager to execute Amendment #1 (Attachment 1.A) to the existing ENGEO contract to cover the additional work that has been performed.
FISCAL IMPACT:
The fiscal impact of adopting the attached Resolution approving Amendment #1 to the original Professional Services Agreement with ENGEO is $160,000 from the Capital Projects Fund. There is sufficient budget available in the project’s contingency budget to support this additional work and related costs. The table below illustrates the available budget and project costs.
Contingency Budget $631,704
Construction Change Orders 1-10 $60,024
Proposed ENGEO Amendment #1 $160,000
Total increased project cost $220,024
Contingency Budget Remaining $411,680
ALTERNATIVES:
1. Decline approval of Amendment #1 and provide staff with direction on how to proceed.
ATTACHMENTS:
1. Resolution
1.A Exhibit A to Resolution: Proposed ENGEO Contract Amendment #1 Prepared by: Meeting Date: December 20, 2022
Erin Olsen, Management Analyst
Submitted by: Benjamin A. Fine, P.E., Director of Public Works/City Engineer City Manager Approval:
9.H-2Council Agenda 12-20-2022
RESOLUTION NO. R-2022-XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH, CALIFORNIA AUTHORIZING THE CITY MANAGER TO EXECUTE AMENDMENT #1
TO THE EXISTING PROFESSIONAL SERVICES AGREEMENT WITH ENGEO INCORPORATED IN THE AMOUNT OF $160,000 FOR ENGINEERING SERVICES
DURING CONSTRUCTION (ESDC) FOR THE OCEAN BOULEVARD
IMPROVEMENTS PROJECT
WHEREAS, on December 21, 2021, a Professional Services Agreement with ENGEO Incorporated (formerly TerraCosta Consulting Group) was approved by City Council in the amount of $192,000 for Engineering Services During Construction (ESDC) for the Ocean Boulevard Improvements Project; and
WHEREAS, construction of the project is approximately 70% complete; and WHEREAS, over the course of the project several issues arose that have resulted in an increased scope of work for ENGEO to address as the Engineer of Record; and WHEREAS, ENGEO has provided a cost proposal to cover the increased work that has been required to date which would bring the total contract cost to $352,000; and WHEREAS, the project budget includes $571,680 of remaining contingency funds available to support the increased consultant costs.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Pismo Beach hereby authorizes the City Manager to execute Amendment #1 (Exhibit A) to the existing Professional Services Agreement with ENGEO Incorporated in the amount of $160,000 for Engineering Services During Construction for the Ocean Boulevard Improvements Project.
UPON MOTION OF Council Member , seconded by Council Member , the foregoing resolution was adopted by the City Council of the City of Pismo Beach this 20th day of December 2022, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSED:
Approved: Attest:
________________________ ________________________
Ed Waage, Mayor Erica Inderlied, City Clerk
9.H-3Council Agenda 12-20-2022
Attachment 1
AMENDMENT # 1
to the
January 24, 2022 AGREEMENT BETWEEN THE CITY OF PISMO BEACH
AND ENGEO INCORPORATED
Pursuant to the January 24, 2022 Agreement for Professional Services between the City of Pismo Beach, hereinafter referred to as “City,” and ENGEO Incorporated, hereinafter referred to as “Vendor,” City and Vendor hereby agree as follows:
1. Additional services shall be performed as set forth in the proposal dated October 24, 2022, which is attached hereto and by this reference made a part hereof.
2. Compensation for and timing of the additional services shall be as set forth in the referenced proposal. Compensation for the additional services shall not exceed the amount of one hundred sixty thousand dollars ($160,000), without prior written approval of the City.
3. The revised fee under the January 24, 2022 contract, plus this addendum, is three hundred fifty-two thousand dollars ($352,000).
4. All other provisions of the Engineering Services During Construction of the Ocean Boulevard Improvements Project agreement between City and Vendor shall remain in full force and effect.
CITY:
City of Pismo Beach, a Municipal Corporation
Signed:
Name: Benjamin A. Fine, P.E.
Title: Director of Public Works/City Engineer
Dated: ________________________________
Signed:
Name: James R. Lewis
Title: City Manager
Dated: ________________________________
ATTEST:
Signed:
Name: Erica Inderlied
Title: City Clerk
APPROVED AS TO FORM:
Signed:
Name: David M. Fleishman
Title: City Attorney
VENDOR:
ENGEO Incorporated
Signed:
Name: ________________________________
Title: _________________________________
Dated: ________________________________
Address for giving notice:
(if changed from prior agreement)
______________________________________
______________________________________
Email address for official communications:
(if changed from prior agreement)
______________________________________
Vendor Representative:
(if changed from prior agreement)
Name/Title: ____________________________
Attachment: Scope/Cost Proposal
9.H-4Council Agenda 12-20-2022
Attachment 1.A
GEOTECHNICAL
ENVIRONMENTAL
WATER RESOURCES
CONSTRUCTION SERVICES
COASTAL/MARINE GEOTECHNICS
3890 Murphy Canyon Road, Suite 200 y San Diego, CA 92123 y (858) 573-6900 y Fax (888) 279-2698 www.engeo.com
Project No.
T3051.000.000
Phase 002
October 24, 2022
Mr. Chad Stoehr
City of Pismo Beach
760 Mattie Road
Pismo Beach, California 93449
Subject: Ocean Boulevard Improvement Project
City of Pismo Beach Purchase Order 0000001229
AMENDMENT REQUEST - ENGINEERING SERVICES DURING CONSTRUCTION
Dear Mr. Stoehr:
ENGEO Incorporated is providing engineering services to the City of Pismo Beach during construction of the Ocean Boulevard Improvement Project. Our engineering services have exceeded the effort estimated in our revised proposal dated December 6, 2021. The originally approved budget estimate is insufficient for the effort we are expending, and we request an amendment to our contract.
BACKGROUND INFORMATION
Following is a summary of the more salient issues that have arisen from the contractors’ performance that have contributed to our increased role during the construction period:
1. Numerous meetings with the contractor and their subcontractors were held because the subcontractors wanted to prefabricate all project reinforcing steel. ENGEO’s design engineer who is the Engineer-of-Record (EOR) suggested that field conditions would make this approach difficult. To accommodate the contractor’s approach, ENGEO prepared and transmitted additional project CAD files and a 3D model of the proposed improvements. This effort was not part our contracted services.
2. Granite Construction and their concrete supplier, CalPortland, requested that alternative “green” concrete mix designs be used for the project. These concrete mix designs did not meet the project specifications. Additional research and review of these proposed alternative “green” concrete mix designs resulted in multiple meetings, including meetings with Mr.
Nathan Forrest, the Technical Director for the California Nevada Cement Association. Mr.
Forrest attempted to persuade the EOR to approve the use of the alternative mix. Mr. Forrest eventually reversed his opinion about the alternative mix’ applicability to this project.
CalPortland’s implied inability to meet the specifications forced us to consult with another supplier, Lehigh Hanson/Martin Marietta (LHMM) about concrete mix designs. LHMM had supplied a mix design that was used on prior projects that also met this project’s specifications.
CalPortland then stated that they had the ability to meet the concrete specifications for the Ocean Boulevard Improvement Project.
9.H-5Council Agenda 12-20-2022
Attachment 1.A
Ocean Boulevard Improvement Project T3051.000.000 Phase 002 AMENDMENT REQUEST - ENGINEERING SERVICES Page 2
October 24, 2022
3. Due to poor QA/QC by the contractors with the construction of the drilled piers, ENGEO had to perform review and evaluation of the excessive number of anomalies revealed by the non- destructive testing methods (GGL/CSL tests). This evaluation included ENGEO retaining Mr.
David Wilson, PE, with Wood Environmental and Infrastructure Solutions, to assist in evaluating the GGL/CSL test data and to coordinate with ENGEO to develop appropriate acceptance/repair criteria for each of the drilled-pier anomalies.
4. The contractor installed nine tiebacks in the incorrect locations along the wall. ENGEO had to perform additional reviews and analyses to address potential impacts to a sewer line. In addition, analyses were performed to address the as-built wall loading (with the incorrect tieback locations) and to determine if replacement tiebacks would be necessary.
5. The contractor, without approval, used a revised alignment for storm drain construction. This realignment resulted in tieback conflicts. During tieback installation, the new storm drain was pierced. In addition, the revised alignment conflicted with proposed Wall 5. Review and evaluation by ENGEO of the contractor’s unapproved as-built storm drain alignment necessitated storm drain hydraulic engineering, the revision of tieback locations to reduce interferences, and the development of an alternative storm drain outlet.
6. Quality control testing indicated that the shotcrete had low compressive strengths relative to the approved trial batch testing. Additional review and evaluation of non-conforming low shotcrete compressive strength test results and mix design review were performed.
Development by ENGEO of an alternative acceptable approach was necessitated that would allow the contractor to continue work, avoiding stoppage. Shotcrete samples continued to cure and eventually achieved the revised, target compressive strength (4,250 psi).
7. The contractor removed more formational soils than planned along the bottoms of Walls 4 and 5 and at the intersection of Wall 4 with Wall 5. ENGEO had to provide additional review and coordination to address the overexcavation (unplanned void). The contractor was previously provided with review guidance, supplemental drawings, and 3D modeling to assist them with evaluating and reducing the extent of their excavation for the proposed temporary shoring for Wall 4. The contractor acknowledged the issue and revised/reduced the extent of the proposed temporary shoring (via shop drawing submittal); however, the contractor proceeded to overexcavate the area anyway and construct the original extent of temporary shoring.
8. Evaluation of the voids and pockets in the concrete on the inside face of the parapet wall.
The listed items are just a few of the unforeseen issues that have arisen during construction. Based on our interactions with the contractor and the progress of construction to date, we anticipate continued and ongoing issues requiring our further involvement on this project.
ESTIMATE OF ADDITIONAL FEES
We anticipate continued and ongoing issues requiring our further involvement on this project during construction. Based on our review of monthly invoicing, current schedules, and discussions with the Construction Manager, Mr. Charlie Gray of Cannon Corporation, we are requesting an additional budget of $160,000 with this contract amendment.
9.H-6Council Agenda 12-20-2022
Attachment 1.A
Ocean Boulevard Improvement Project T3051.000.000 Phase 002 AMENDMENT REQUEST - ENGINEERING SERVICES Page 3
October 24, 2022
ITEMS NOT INCLUDED IN OUR SCOPE OF SERVICES
The following tasks are not included in our scope of services during construction:
1. Additional survey work or construction-period staking.
2. Construction-period testing, observation, and reporting (performed by others).
3. Participation at on-site meetings.
4. Biological and cultural resource monitoring.
SCHEDULE
The schedule is dependent upon the contractor’s selected means and methods approach to completing the work. The schedule is also dependent on weather and project site conditions, which include a fluctuating marine, tidally influenced environment prone to wave impacts and storms. The extent and duration of our services are subject to change. Our services will continue to be performed on an as-needed basis, and in close coordination with the City of Pismo Beach and the construction management consultant.
We appreciate the opportunity to submit this amendment request and look forward to successful project completion. Please contact us if you have any questions or require additional information.
Sincerely,
ENGEO Incorporated
Gene D. Spineto
Senior Project Manager
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9.H-7Council Agenda 12-20-2022
Attachment 1.A