AMENDMENT NO. 3 TO
PROFESSIONAL SERVICES AGREEMENT
PROVISION OF ACCESSIBILITY DESIGN SERVICES SERVICES WITH NV5, INC.
This Amendment No. 1 ("Amendment") to Professional Services Agreement is made and entered into effective the 7d, day of February, 2023, by and between the CITY OF PLACENTIA, a Charter City and Municipal Corporation ("CITY"), and NV5, Inc a California corporation (hereinafter "CONSULTANT"). CITY and CONSULTANT are sometimes hereinafter individually referred to as "Party" and or collectively referred to as the "Parties." A. Recitals.
(i). CITY and CONSULTANT entered into a Professional Services Agreement ("Agreement") effective May 18th, 2021 through which CONSULTANT has been providing professional services as more fully explained in the Scope of Services attached to the Agreement as Exhibit "A."
(ii). The Parties now seek to amend the Agreement to increase compensation by an additional $77,540 for additional construction management and inspection services on two project, namely TOD Crowther Sanitary Sewer Pipeline and the Old City Hall Office Renovation Projects. (iii). All legal prerequisites to the making of this Amendment have occurred.
NOW, THEREFORE, in consideration of the mutual covenants and conditions set forth herein, the Parties agree as follows:
B. Amendment to Agreement.
1. Section 2.0, Paragraph 1 of the Agreement is hereby amended to read as follows:
2.0 Compensation. Consultant shall be paid in accordance with the fee schedule set forth in Exhibit "A". Consultant's total compensation shall not exceed Four Hundred Seventy Thousand and Two Hundered Forty Dollars ($613,510.00)
2. Except as specifically modified herein, all of the terms, conditions and provisions of the Agreement shall remain in full force and effect.
3. The Agreement, all amendments together with this Amendment No. 3 and all Exhibits attached thereto, constitutes the entire Agreement between the Parties and supersedes all prior negotiations, arrangements, representations, and understandings, if any, made by or between the Parties with respect to the subject matter hereof. No amendment or other modification of the Agreement, as modified by this Amendment No. 2 shall be binding unless executed in writing by both Parties hereto, or their respective successors, assigns, or grantees.
4. Each of the undersigned represents and warrants that he or she is duly authorized to execute and deliver this Amendment No. 3 and that such execution is binding upon the entity for which he or she is executing this document.
IN WITNESS WHEREOF, the Parties have caused Amendment No. 3 to the Consulting Services Agreement are to be executed as of the day and year first above written.
CONSULTANT CITY OF PLACENTIA
By: By:
Jeffrey M. Cooper, PE Damien R. Arrula
Sr. Vice President City Administrator
ATTEST:
By:
Robert S. McKinnell, City Clerk
APPROVED AS TO FORM:
By:
Christian L. Bettenhausen, City Attorney
5 May 23, 2023
City of Placentia
Attn: Masoud Sepahi, PE, LEED GA, City Engineer
401 E. Chapman Ave.
Placentia, CA 92870
SUBJECT: Crowther Sanitary Sewer Pipeline Replacement Project— Construction Support Services Dear Mr. Sepahi,
Thank you for speaking with me yesterday regarding NV5's continued support of the ongoing Crowther Sanitary Sewer Pipeline Replacement Project (project). As you know, NV5, Inc. (NV5) proposed on July 21, 2021 to provide Construction Management and Inspection Services to the City of Placentia (City) for its Crowther Sanitary Sewer Pipeline Replacement Project (project). At that time, it was expected that the project would commence right away with the City's awarded Construction Contractor, Kana Construction (Kana). Since that time, there was an initial delay and the City has provided Kana a time extension for a total of 208 working days that brings the project completion to March 31, 2022, along with NV5's timeline for construction support services.
Meanwhile, we understand that the City is having a change of leadership and that you will be joining Interwest Consulting Group and taking over the duties of Construction Manager for this project.
However, the City requires the continued Construction Support Services of India Woodruff as Assistant Construction Manager, Haykaz Aghajanian as Construction Inspector, and NV5's geotechnical and soils testing laboratory services. Therefore, NV5 requires an extension in our contract with the City in order to continue providing these services. Please consider the following:
Kana has their latest construction schedule dated 4/21/23 showing a start date of 6/13/22 and a finish date of 7/28/22 for a total duration of 295 working days. These additional days are beyond NV5's scope of work. Additionally, Kana's latest schedule dated 4/21/23 shows controlling activity Item 103, Connect Existing Sewer @ MH #9137, to finish by 5/4/23. However, Kana completed this on 5/12/23. This places the project an additional eight (8) calendar days behind. Item 102, Reconnect Sewer Laterals on Orangethorp, was estimated to be completed on 5/11/23, and as of 5/15/23, this activity has not been started by Kana and is not expected to be started for the next several weeks. For every three (3) weeks worked, it appears that Kana falls behind an additional week and is unable to remain on schedule. This is a ratio of approximately 27% in time. Therefore, NV5 can estimate at Kana's current rate, per the latest 4/21/23 construction schedule, the completion date would be extended from the stated completion date of 7/28/23 by 27% to approximately 8/24/23. This additional time is beyond NV5's current scope of work and NV5 needs additional fee for on-site Construction Inspection and Assistant Construction Management coverage to accommodate this additional out of scope effort.
Kana appears to be in trouble, partly due to the above, leaving funds on the table at bid time, and partly due to the exceedingly slow production rate, and Kana is developing extensive Change Order Requests, with a to -date number totaling 100, which NV5 is thoroughly reviewing with the City. While many change orders are legitimate for items that are truly unforeseen such as unknown utilities not originally shown on the Contract Drawings, many of these contractor driven Change Order Requests are outrageous and extravagant and beyond any amount which would ordinarily be anticipated with Construction of this nature, likely due to Kana being behind schedule, coupled with leaving money on 163 Technology Drive, Suite 100 1 Irvine, CA 92618 1 www.NV5.com 1 Office 949.585.0477
TASK
NO.
the table at bid time. Therefore, the City is relying heavily on NV5 to analyze and recommend to the City if these change orders are legitimate, and, if not, then what are the required specification, plans, or GreenBook sections upon which a defendable basis of denial can be placed. Furthermore, Kana has requested bi-monthly change order meetings with the City which NV5 is managing. This level of effort for change orders is beyond our original scope. NV5 has included this additional out of scope effort for change orders in our new request for additional fees with the support of our Assistant Construction Manager.
Finally, Kana has stated that they had left a significant amount of funds on the table at bid time, including the pricing to fuse the pipeline, as well as anticipated efforts for dealing with the as -bid loose sandy soils in the ground known at bid time through the Geotechnical Report. Therefore, the City has requested from NV5 additional materials testing to not only provide continued compaction verification, but to also provide verification that the existing on-site soils match the as -bid conditions.
Therefore, NV5 has included this additional out of scope effort for continued geotechnical testing in our new fee request.
Our new fee request considers the above and adds funding into our original scope of work as follows:
WORK DESCRIPTION (May 15,
2023 through Approximately
August 24, 2023)
Additional Change Order Review 8 Meetings
Weekly Construction Meetings (75 WD )
Part Time CM Outies (75 WD @ 6 hr/wk)
20 CONSTRUCTION INSPECTION
Task 1 Subtotal
Construction Inspection (Additional 75 WD FT PW)
PRINCIPAL -IN -
CHARGE
HOUR $ 225
ASSISTANT
CONSTRUCTION
MANAGER
HOUR $ 190
50 $9,500
40 $7,600
6 $1,350 90 $17,100
INSPECTOR, PW
HOUR $ 155
6 t 51,350 180 534,200 0
$0
$93,000
AOMINISTRATI
ON
HOUR $ 90
0 $0
$1,800
ODCs"
$200
$200
MATERIAL
S TESTING
$0
TOTAL
FEE
$9,500
$7,600
$18,650
$35.750
$95,900
Task 2 Subtotal
93.000
$1,800
$95.800
3.0 MATERIALS TESTING
Continued Materials Testing
Task 3 Subtotal
New Contract Foe Old City Hall project of $65,730)
0 00
0 $0
SO
$0
SO
$15,000 $15,000
S15.000
515,000
Due to these various extended circumstances outside of our current scope of work that the City has provided its independent Construction Contractor (Kana), NV5 has exhausted our current Construction Management and Inspection services budget which includes construction management, full time on-site daily construction inspection, and soils compaction testing. Moving forward, we understand that the City, through your new services with Interwest Consulting Group, will be taking over the services of Construction Manager. Therefore, the services of Construction Manager are removed from our Scope of Services. In accordance with our conversations for the services of Assistant Construction Manager, Construction Inspector, and geotechnical materials testing, NV5 is requesting $146,550 in additional funding, as noted in the above fee table, in order to continue our services with the City.
N
V5
Our total additional scope of work fee, including the various elements above, is $146,550 for the Crowther project only. This additional fee of $146,550 plus the original fee and past amendments totaling $401,230 for Crowther and $65,730 for the Old City Hall project, brings the new total contract total to $613,510. NV5 looks forward to the opportunity to work with the City and help you achieve your goals and objectives. If you need further information, we may be reached by phone at (949) 585-0477, or electronically [email protected] and [email protected]. Thank you for your time and consideration.
Sincerely,
NV
Je rey M. Cooper, PE
S:nior Vice President
Luanne Bean, PE
Director of Water/
Wastewater Operations
NV''5