PISMO BEACH CITY COUNCIL STAFF REPORT
Agenda Item #12.A
Meeting Date: April 16, 2024
TITLE:
Paving Project Update and Amendment #1 to the Agreement with Cannon Corporation for Construction Management, Inspection, Materials Testing and Administrative Services for the Paving Project
RECOMMENDATION:
1. Receive an update on the current status of the 2022 Paving Project;
2. Adopt a Resolution authorizing the City Manager to execute Amendment #1 to the existing Professional Services Agreement with Cannon Corporation in the amount of $148,617.50 for Construction Management, Inspection, Materials Testing and Administrative Services for the 2022 Paving Project.
DISCUSSION:
On April 19, 2022, a Professional Services Agreement with Cannon Corporation (Cannon) was approved by the City Council in the amount of $1,291,907.30 for Construction Management, Inspection, Materials Testing and Administrative Services for the 2022 Paving Project.
Construction of the project is ongoing, and staff will present an update on the current status of the project. Over the course of the project significant work items outside of the initial scope were added to the project including:
Modifications on Mattie Road to accommodate roadway widening; Installation of storm drain infrastructure on Wadsworth Ave. between Bello Street and Price Street;
Additional “Extra Work at Direction of the City Engineer” resulting in additional field inspection work.
The items all arose from betterments made to the project after the contract was awarded that have had a positive impact to the project, and to local neighborhoods; however there is an increase of 45 working days associated with the additional work.
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 Cannon contract to cover the additional work.
FISCAL IMPACT:
The fiscal impact of adopting the attached Resolution approving Amendment #1 to the Cannon agreement is $148,617.50 from the Capital Projects Fund 2022 Paving Project.
This will increase the agreement with Cannon to a total of $1,440,524.80. The project Council Agenda 4-16-2024 12.A-1
budget included $2,426,452 in contingency funds. There is sufficient budget available in the project’s contingency budget to support this additional work and related costs.
ATTACHMENTS:
1. Resolution
1.A Exhibit A to Resolution: Proposed Cannon Amendment #1 Prepared by:
Erin Olsen, Senior Management Analyst
Submitted by: Benjamin A. Fine, P.E., Director of Public Works/City Engineer City Manager Approval:
Council Agenda 4-16-2024 12.A-2
RESOLUTION NO. R-2024-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 CANNON CORPORATION IN THE AMOUNT OF $148,617.50 FOR CONSTRUCTION
MANAGEMENT, INSPECTION, MATERIALS TESTING AND ADMINISTRATIVE SERVICES FOR THE 2022 PAVING PROJECT
WHEREAS, on April 19, 2022 a Professional Services Agreement with Cannon Corporation was approved by the City Council in the amount of $1,291,907.30 for Construction Management, Inspection, Materials Testing and Administrative Services for the 2022 Paving Project; and
WHEREAS, over the course of the project significant work items outside of the initial scope were added to the project; and
WHEREAS, the items all arose from betterments made to the project after the contract was awarded; and
WHEREAS, there is an increase of 45 working days associated with the additional work; WHEREAS, there is sufficient budget available in the project’s contingency budget to support this additional work and related 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 Cannon Corporation in the amount of $148,617.50 for Construction Management, Inspection, Materials Testing and Administrative Services for the 2022 Paving 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 16th day of April 2024, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSED:
Approved: Attest:
________________________ ________________________
Ed Waage, Mayor Erica Inderlied, City Clerk
Council Agenda 4-16-2024 12.A-3
Attachment 1
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Pismo Beach, California, on _______________________. ________________________
Erica Inderlied, City Clerk
Council Agenda 4-16-2024 12.A-4
Attachment 1
AMENDMENT # 1
to the
APRIL 21, 2022 AGREEMENT BETWEEN THE CITY OF PISMO BEACH
AND CANNON CORPORATION
Pursuant to the April 21, 2022 Agreement for Professional Services between the City of Pismo Beach, hereinafter referred to as “City,” and Cannon Corporation, 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 March 13, 2024, 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 forty-eight thousand six hundred seventeen dollars and fifty cents ($148,617.50), without prior written approval of the City.
3.The revised fee under the April 21, 2022 contract, plus this addendum, is one million four hundred forty thousand five hundred twenty-four dollars and eighty cents ($1,440,524.80).
4.All other provisions of the Construction Management, Inspection, Materials Testing and Administrative Services for the 2022 Paving 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: Jorge E. Garcia
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:
Cannon Corporation
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
Council Agenda 4-16-2024 12.A-5
Attachment 1.A
Request for Additional Services
CM Services Agreement
City of Pismo Beach 2022-2023 Pavement Rehabilitation Project (Sent via email)
March 13, 2024
Mr. Daniel Contreras – Capital Projects Manager
City of Pismo Beach
130 Cremona Drive, Suite B
Goleta, CA 93117
Subject: CONSTRUCTION MANAGEMENT & INSPECTION SERVICES FOR CITY OF PISMO BEACH 2022-2023 PAVEMENT REHAB PROJECT REQUEST FOR ADDITIONAL SERVICE AGREEMENT NO.1
Dear Mr. Contreras,
Cannon has reviewed the labor and administrative costs associated with management and inspection activities directly related to the additional work added to the contract since the beginning of construction. These items were not included in our original scope of work and have resulted in extra effort on Cannon’s part to ensure thorough contract administration and effective construction management and inspection.
The nature and substance of this increased management, inspection and materials testing is based on additions or changes requested by the City. Our work associated with these changes has resulted in additional review and coordination of modifications to contract plans, additional meetings, field coordination, onsite inspection, materials testing, and preparation of change orders. The requested changes and specific unforeseen issues are detailed below:
Change Order 01 – Widening Mattie Road
o Increased Cost - $ 234,776.00 and an increase of 7 working days. Change Order 02 – Wadsworth Storm Drain Installation
o Increased Cost - $ 550,000.00 and an increase of 15 working days. Bid Item No.87 – “Extra Work at Direction of the City Engineer” (Not included in CCO #1 & #2) o Increased Cost - $ 612,000.00 and an increase of approximately 23 days of field inspection work.
The original contract completion date of August 14, 2024, has been extended to September 13, 2024, due to these additional 22 working days added by Change Order No.01 and No.02. In addition, “Extra Work as Directed by the City Engineer” has taken approximately 23 working days to accomplish. With the new date of completion scheduled for September 2023, and additional time expended on directed work items, we have roughly 2.3 additional months of Construction Management and Inspection work not included in our original scope of work.
Cannon has provided construction management and administrative services for the 2022-2023 Pavement Rehabilitation Project since the start of construction in August of 2023. Over the course of the project, we have been able to maintain our staffing efforts to adequately cover this additional work.
Considering this, we request that the City provide an additional construction management budget of $148,617.50 to cover the additional working days on this project. We remain committed to providing the City with high quality service to meet your needs throughout the final completion of this project. If you have any questions, or wish to discuss this matter further, please contact me at (805) 503-4562 or [email protected].
Sincerely,
Todd Bartolome, PE
Sr. Resident Engineer
Construction Management Division
Council Agenda 4-16-2024 12.A-6
Attachment 1.A
Request for Additional Services
CM Services Agreement
City of Pismo Beach 2022-2023 Pavement Rehabilitation Project (Sent via email)
Council Agenda 4-16-2024 12.A-7
Attachment 1.A