Placentia City Council
AGENDA REPORT
TO: CITY COUNCIL
VIA: CITY ADMINISTRATOR
FROM: DEPUTY CITY ADMINISTRATOR/ PUBLIC SERVICES & INFRASTRUCTURE DATE: JUNE 20, 2023
SUBJECT: AMENDMENT NO. 3 TO PROFESSIONAL SERVICES AGREEMENT WITH NV5 INC., FOR ON-CALL CONSTRUCTION MANAGEMENT AND INSPECTION
SERVICES
FISCAL
IMPACT: EXPENSE: $ 143,270 AMENDMENT AMOUNT
AVAILABLE: $ 228,000 FISCAL YEAR 2022-23 CIP BUDGET
BUDGET $ 110,000 SEWER IMPACT FEES (713101-6750)
$ 118,000 CITYWIDE SEWER IMPACT FEE (643101-6750)
SUMMARY:
In May 2021, the City Council awarded a Professional Services Agreement to NV5 Inc.("NV5") for on-call construction management ("CM") and construction inspection services. The agreement is for a three (3) year term for a not -to -exceed amount of $250,000, with the option to extend the term of the agreement for one (1) additional two-year term.
Staff utilized NV5 to provide construction management and inspection services on two projects, namely the TOD/Crowther Sewer Line Replacement and Old City Hall Office Renovation projects.
On February 15, 2022, the City Council approved Amendment No. 1 to the agreement with NV5 increasing the contract amount by $50,000 to provide inspection services for the Old City Hall Office Renovation Project for a revised cumulative not -to -exceed contract amount of $300,000.
Subsequently, Addendum No. 2 in the amount of $170,240 was awarded to NV5 by City Council to extend construction management services, as both projects continued to experience multiple unforeseen conditions and delays. Addendum No.2 in the amount of $170,240 increased the contract amount to $470,240 in support of both TOD Crowther Sewer and Old City Hall office remodeling projects. The costs for these services are charged against each respective budget.
The Old City Hall Office Renovation Project is complete and construction management and inspection services for this project are no longer needed. However, extended construction inspection services for the Crowther Sewer Project are still needed due to many unforeseen conditions and circumstances experienced throughout the duration of the project which have delayed completion of this project and resulted in higher than anticipated CM and inspection costs.
The projected completion date for the TOD/Crowther Sewer Line Replacement Project is now early August 2023 and as a result, additional funding is needed to cover construction management inspection costs previously incurred and to carry the project to completion and all related activities needed to close out the project.
1.o.
June 20, 2023
City Council Agenda
June 20, 2023
Staff is presenting Amendment No. 3 for City Council's consideration to increase the cumulative contract not -to -exceed amount by $143,270 for a revised cumulative contract not -to -exceed amount of $613,510. Funds to cover the added inspection costs are included in the respective CIP project budget funded by ARPA and TOD Sewer Development Impact Fees.
RECOMMENDATION:
It is recommended that the City Council take the following actions:
1. Approve Amendment No. 3 to the Professional Services Agreement with NV5 Inc., for an additional $143,270 to provide additional professional services to complete the TOD/Crowther Sewer Line Replacement Project for a cumulative contract not -to -exceed amount of $613,510; and
2. Adopt Resolution No. R-2023-51, A Resolution of the City Council of the City of Placentia, California authorizing a budget amendment in Fiscal Year 2022-23 in compliance with City Charter of the City of Placentia §§1206 and §§1209 pertaining to appropriations for actual expenditures; and
3. Authorize the City Administrator and/or his designee to execute the necessary documents, in a form approved by the City Attorney.
STRATEGIC PLAN STATEMENT
There is no specific City Council adopted 5 -Year Strategic Goal or Objective related to this agenda item.
DISCUSSION:
On February 4, 2021, Staff solicited proposals from qualified firms to create a bench list of professional consultants to provide on-call construction management and inspection services for the City's Capital Improvement Program (CIP). Staff selected the top four (4) ranked firms and the City Council awarded the firms professional services agreements for 3 -year terms with an option for a two-year term extension based on performance and at the discretion of the City. Each consultant serves on an on-call basis and with a contract not -to -exceed amount of $250,000, the cost of which is charged to individual project budgets. The purpose of having multiple firms on a bench list is to ensure efficient delivery of multiple capital improvement projects many of which may run concurrently.
NV5 was the top-ranking firm on the list and based on their qualifications, they were selected by the staff to provide CM and inspection services on the TOD/Crowther Sewer Line Replacement Project. Under the same contract and by the addition of Addendum No. 1 in the amount of $50,000, NV5 was tasked by staff to provide construction management and inspection services for the Old City Hall Office Renovation as well. Addendum No. 1, to pay for construction management services on the Old City Hall project, was approved by the City Council on February 15, 2022, and that project has since been completed. However, NV5 continues to provide CM and inspection services for the TOD Crowther Sewer project and due to many unforeseen conditions encountered during construction extended inspection services are required
City Council Agenda
June 20, 2023
to complete the project, which is now projected to be in August for major construction activities to be followed by completion of all punch -list work. The services provided by NV5 on this Project include a part-time assistant construction manager and a full-time inspector. Some of the major delays that have caused extended delays include conflicts with City of Fullerton contractors working within the same work area, underground conflicts, and elevation issues regarding the connection of the new sewer pipeline into the Orange County Sanitation District's trunkline in addition to conflicts with many unknown utilities found along the alignment of the new sewer line.
As such, the completion of the project has been delayed thus keeping the construction management and inspection team on the job longer than was originally anticipated. Extended inspection and administrative support are needed to complete the remainder of the project through August 2023, including major construction activities, punch -list work and post close-out inspection and administrative services.
Additional funding in the amount of $143,270 will be needed to cover construction support services already provided as well as additional support needed to complete the project which is now projected to be early August 2023. Staff seeks approval by the City Council to increase the NV5 contract by $143,270 to a not -to -exceed amount of $613,510. A budget amendment allocating additional TOD Sewer Development Impact Fees towards the cost of this project is also presented to the City Council for its consideration to provide the additional project funding needed to cover the cost of these services. Existing funds exist within the respective project budget to cover the added costs.
FISCAL IMPACT:
The recommended action will approve Amendment No. 3 to the Professional Services Agreement with NV5, Inc., for an additional not -to -exceed amount of $143,270 for a cumulative not -to -exceed amount of $613,510. Resolution No. R-2023-51 (Attachment 2) is recommended for approval to appropriate additional TOD Sewer Development Impact Fee and Citywide Sewer Impact Fee Funds towards the cost of the project. As such, sufficient funds exist for the recommended actions.
Prepared by:
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Masoud Sepahi
City Engineer
Reviewed and approved:
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Luis Estevez
Deputy City Administrator
Reviewed and approved:
Jennifer Lampman
Director of Finance
Reviewed and approved:
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Damien R. Arrula
City Administrator
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Attachments:
1. Amendment No. 3 to the Professional Services Agreement with NV5 Inc.
2. CIP Budget Resolution R-2023-51