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Placentia City Council
AGENDA REPORT
CITY COUNCIL
CITY ADMINISTRATOR
DEPUTY CITY ADMINISTRATOR/ PUBLIC SERVICES & INFRASTRUCTURE OCTOBER 3, 2023
SUBJECT: AMENDMENT NO. 3 TO PROFESSIONAL SERVICES AGREEMENT WITH TRANSTECH ENGINEERS INC. FOR ON-CALL CONSTRUCTION
MANAGEMENT AND INSPECTION SERVICES
FISCAL
IMPACT: EXPENSE: $ 8,000.00 AMENDMENT AMOUNT
AVAILABLE: $ 631,501.30 FISCAL YEAR 2023-24 CIP BUDGET (332908-6741) BUDGET
SUMMARY:
On May 18th, 2021, the City Council approved a contract in the amount of $250,000 with Transtech Engineers Inc. (Transtech) for On-call Construction Management (CM) and inspection services.
Staff utilized this contract to provide these services on the Fiscal Year (FY) 20-21 Arterial Roadway Resurfacing Project and the Highway Safety Improvement Program (HSIP), traffic safety improvement project.
On October 4th, 2022, Amendment No. 1, was approved by the City Administrator under his approval authority for increasing the spending limits on the Transtech contract by an additional amount of $25,000. The contract limit was increased to provide the additional funding necessary to cover the inspection services on both street and traffic improvement projects, bringing their maximum contract amount to $275,000. The CM services provided by Transtech included a part- time construction manager and a full-time inspector on the FY 20-21 Arterial Roadway Rehabilitation Project and the HSIP project.
Due to numerous unforeseen conditions, both projects experienced delays and as such, additional spending cap authority is needed to cover the additional hours needed to complete the projects.
On February 7, 2023, Amendment No. 2 was approved by the City Council for providing additional spending limits on Transtech's contract amount by another $50,000. However, a final invoice in the amount of $7,560 for the CM work performed for the HSIP project was not captured as part of Amendment No. 2. Therefore, Staff seeks approval by the City Council to increase Transtech' s contract by $8,000 to a not -to -exceed amount of $333,000 to closeout the final project. It should be noted that the aforementioned additional cost for CM and inspection services provided to the HSIP project is covered by the liquidated damages that the City has collected from the construction contractor.
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Oct. 3, 2023
City Council Agenda
October 3, 2023
RECOMMENDATION:
It is recommended that the City Council take the following actions:
1. Approve Amendment No. 3 to the Professional Services Agreement with Transtech for an additional $8,000, for a cumulative contract not -to -exceed amount of $333,000; and
2. 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 for a 3 -year term with an option for a two-year term extension based upon 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. As one of the top- ranking firms on the list, Transtech was selected based upon their experience and qualifications to provide the City with CM and inspection services on the FY 20-21 Arterial Rehabilitation and the Highway Safety Improvement Program (HSIP) projects.
Transtech provided the City with an initial proposal in the amount of $137,965 for performing CM and inspection services on the FY 20-21 Arterial Paving Project and $88,996 for the HSIP, respectively. In addition, Transtech provided the City with a proposal in the amount of $9,990 for materials testing services to provide quality assurance on the City's paving projects. Due to several unforeseen conditions encountered during construction, both projects experienced extensive delays, some of which was attributed to conflicts with unforeseen field conditions which were not anticipated during the design phase of the projects. To provide adequate spending authority under the contract cap, Amendment No. 1 in the amount of $25,000 was approved by the City Administrator under his approval authority limit and Amendment No. 2 in the amount of $50,000 was approved by the City Council which increased the contract not -to -exceed amount to $325,000.
The FY 20-21 Arterial Rehabilitation Project was completed in 2022 and the HSIP project was completed in July 2023. However, the CM work performed by Transtech in October 2022 for the HSIP project has not been fully paid because the invoice exceeded the contract cumulative amount by $7,560. Staff seeks Council approval to increase Transtech's contract by $8,000 to a not -to -exceed amount of $333,000 to pay for the remaining invoice and closeout the project with Transtech. The HSIP project was delayed by 28 working days due to construction inefficiency caused by the contractor. The additional cost for CM and inspection services provided to the HSIP
City Council Agenda
October 3, 2023
project is covered by the liquidated damages that the City has collected from the construction contractor.
FISCAL IMPACT:
The recommended action will approve an amendment to the Professional Services Agreement with Transtech for an additional $8,000 for a cumulative not -to -exceed amount of $333,000.
Sufficient funds are budgeted and available in the amended Fiscal Year 2023-24 Capital Improvement Program Budget to cover this expense. As such, sufficient funds exist for the recommended actions.
Prepared by: Reviewed and approved:
Kyra Tao, P.E.
Transportation Manager
Jennifer L'ampman
Director of Finance
Reviewed a d approved Reviewed and approved:
Luis Estevez
Deputy City Administrator
Damen R. AYrula
City Administrator
Attachment:
Amendment No. 3 to PSA with Transtech, Inc.