Administrative
Report
H.14., File # 22-3739 Meeting Date: 2/15/2022
To: MAYOR AND CITY COUNCIL
From: TED SEMAAN, PUBLIC WORKS DIRECTOR
TITLE
APPROVE THE SECOND AMENDMENT TO THE AGREEMENT WITH ARDURRA GROUP INC
FOR CONSTRUCTION MANAGEMENT SERVICES FOR THE REDONDO BEACH TRANSIT CENTER PROJECT, JOB NO. 20120 FOR AN ADDITIONAL AMOUNT OF $292,246.22 AND A TOTAL NOT TO EXCEED AMOUNT OF $1,210,000 FOR THE EXISTING TERM
EXECUTIVE SUMMARY
Ardurra Group Inc. (Ardurra) provides services to manage the construction of the Redondo Beach Transit Center Project. These services include contractor management, construction inspection, contractor and subcontractor payroll review, and geotechnical and materials testing services.
As construction has progressed, the demand for support services provided by Ardurra has increased due to necessary plan revisions, changes to contractor scope and unforeseen circumstances. The original agreement was amended in May 2021. Additional project delays and extensions have occurred, requiring more time (hours) for the services provided by Ardurra. Staff is now recommending a Second Amendment to increase the contract value by $292,246.22, to $1,210,000.
Funding for this agreement and the Redondo Beach Transit Center Project is composed entirely of restricted transportation and grant funds. No additional funding for the Project is needed to approve the Second Amendment.
BACKGROUND
On December 17, 2019 the City Council approved a Construction Management agreement with Ardurra Group Inc., based on actual time and materials, in the amount of $600,000 to provide Construction Management services during construction of the Redondo Beach Transit Center Project.
At the time, the City had negotiated the total price down from Ardurra’s proposal due to some uncertainty of timing regarding additional funding for the project. Ardurra was willing to lower the contract value as long as there was some reduction in the expected number of hours, with the understanding that if the project required additional time and effort, the City would consider an amendment for the additional work.
After the original award, the City secured additional funding from Metro, in the amount of $2,750,000, for the project. The City then approved the First Amendment with Ardurra to provide the necessary
H.14., File # 22-3739 Meeting Date: 2/15/2022
funding to increase the contract to the corresponding value.
A copy of the Agreement and First Amendment
<http://laserweb.redondo.org/weblink/0/doc/332745/Page1.aspx> can be viewed at (http://laserweb.redondo.org/weblink/0/doc/332745/Page1.aspx).
The project continues to be impacted by unforeseen conditions, design deficiencies and small changes to scope that require increased services from Ardurra. The construction contractor now estimates the transit center portion of the project will not be complete until May 2022 and, it should be noted that, some of the delay is justified due to conditions beyond the contractor’s control.
Ardurra, working as an extension of staff to oversee and inspect the onsite activities requires additional contract hours to continue to provide the construction management service. Ardurra has performed well and is providing important services to ensure the project is implemented as efficiently and economically as possible. Therefore, staff recommends approval of the Second Amendment to the agreement, increasing the contract value by $292,246.22 for a new not to exceed amount of $1,210,000.
COORDINATION
The Second Amendment was prepared by and approved as to form by the City Attorney’s office.
FISCAL IMPACT
Funding for the Redondo Beach Transit Center Project is composed entirely of restricted transportation and grant funds. The funds for this amendment are available in the overall project budget and require no additional appropriation.
APPROVED BY:
Mike Witzansky, City Manager
ATTACHMENTS
1. Second Amendment to Ardurra Group, Inc.
2. Signature Page for Second Amendment
3. Certificate of Insurance for Ardurra Group, Inc.