Consent 1.I.
Regular City Council Meeting
- Meeting Date:
- 02/27/2012
- TITLE
- WO 11-05; 2011 Chapple Area Water Main Improvements; Contract for Professional Services, Amendment No. 1
- PRESENTED BY:
- David Mumford
- Department:
- Public Works
Presentation:
Information
PROBLEM/ISSUE STATEMENT
Proposed Amendment No. 1 to the City’s Professional Services Agreement with Morrison Maierle, Inc. (MMI) for Work Order 11-05 would increase the $272,188.00 contract amount by $61,467.75. The new contract amount would increase to $333,655.75, which is 22.6% higher than the original contract value.
Authorizing this contract increase would add design and construction administration services which have been determined to be outside the original contract scope. These items include:
1. MDEQ Review Fees: In order to avoid delays in design review and approval from MDEQ, the City requested that MMI pay the review fees. ($1,807.75 increase)
2. Geotechnical Testing: Due to the Contractor’s (Ahanu Construction) means and methods, more materials testing was necessary than originally budgeted. Use of multiple borrow sources for backfill, varying source mixing strategies and non-customary compaction sequencing and scheduling led to a testing budget overrun of $5,130.00; however, because budget for potential geotechnical and pavement issues in the Arnold Palmer and Mickey Wright street areas was not used, there is also a $6,000 geotechnical testing credit due. ($870.00 decrease)
3. Extra Resident Project Representative (RPR) Time: Contractor inefficiency throughout the project caused MMI’s RPR hours to exceed budget by 562 hours ($53,390.00). At the time the subject amendment was requested, MMI informed City staff that based on previous work done for the City on similar projects, time for one full-time RPR was budgeted for the project duration. MMI remained optimistic early-on in construction that Ahanu's methods and efficiency would improve over time and enable MMI to ultimately recover a significant amount of RPR hours; however, Ahanu's work continued to require uncharacteristically strong oversight and MMI was forced to continue with two full-time RPRs throughout the project. Unfortunately, MMI did not realize the extent to which they would exceed their staff budget until the last month of the project.
Of the $53,390.00 in extra RPR costs, the City has already recovered $4,905.00 of RPR overtime through previous Contractor Pay Estimate deductions and plans to recover from the Contractor’s Final Pay Estimate an additional $7,500.00 in RPR time for work occurring beyond the Contract Time. ($53,390.00 increase)
4. Extra Project Engineer Time: Due to the ongoing Contractor work inefficiency, the need to address ongoing Contractor work quality issues, and the handling of other non-standard administrative issues during the course of the project, an additional 60 hours of Senior Engineer I time is requested. ($7,140.00 increase)
The City requires that a contract amendment be requested before funds are spent. Unfortunately, the unconventional approaches taken by the construction contractor throughout the project and the large amount of engineering resources that were required late in the construction contract contributed to MMI realizing in the final month that the engineering budget was overspent.
Authorizing this contract increase would add design and construction administration services which have been determined to be outside the original contract scope. These items include:
1. MDEQ Review Fees: In order to avoid delays in design review and approval from MDEQ, the City requested that MMI pay the review fees. ($1,807.75 increase)
2. Geotechnical Testing: Due to the Contractor’s (Ahanu Construction) means and methods, more materials testing was necessary than originally budgeted. Use of multiple borrow sources for backfill, varying source mixing strategies and non-customary compaction sequencing and scheduling led to a testing budget overrun of $5,130.00; however, because budget for potential geotechnical and pavement issues in the Arnold Palmer and Mickey Wright street areas was not used, there is also a $6,000 geotechnical testing credit due. ($870.00 decrease)
3. Extra Resident Project Representative (RPR) Time: Contractor inefficiency throughout the project caused MMI’s RPR hours to exceed budget by 562 hours ($53,390.00). At the time the subject amendment was requested, MMI informed City staff that based on previous work done for the City on similar projects, time for one full-time RPR was budgeted for the project duration. MMI remained optimistic early-on in construction that Ahanu's methods and efficiency would improve over time and enable MMI to ultimately recover a significant amount of RPR hours; however, Ahanu's work continued to require uncharacteristically strong oversight and MMI was forced to continue with two full-time RPRs throughout the project. Unfortunately, MMI did not realize the extent to which they would exceed their staff budget until the last month of the project.
Of the $53,390.00 in extra RPR costs, the City has already recovered $4,905.00 of RPR overtime through previous Contractor Pay Estimate deductions and plans to recover from the Contractor’s Final Pay Estimate an additional $7,500.00 in RPR time for work occurring beyond the Contract Time. ($53,390.00 increase)
4. Extra Project Engineer Time: Due to the ongoing Contractor work inefficiency, the need to address ongoing Contractor work quality issues, and the handling of other non-standard administrative issues during the course of the project, an additional 60 hours of Senior Engineer I time is requested. ($7,140.00 increase)
The City requires that a contract amendment be requested before funds are spent. Unfortunately, the unconventional approaches taken by the construction contractor throughout the project and the large amount of engineering resources that were required late in the construction contract contributed to MMI realizing in the final month that the engineering budget was overspent.
ALTERNATIVES ANALYZED
The City Council may:
• Authorize an amendment increasing MMI's engineering contract value by $61,467.75; or
• Do not authorize the contract amendment.
• Authorize an amendment increasing MMI's engineering contract value by $61,467.75; or
• Do not authorize the contract amendment.
FINANCIAL IMPACT
The contract amendment is requested in the amount of $61,467.75. The City will be recovering approximately $12,000 from the contractor for items allowed by the contract documents. The net increase in City funding is therefore $49,000. Sufficient water funds are available to pay for this contract increase.
RECOMMENDATION
Staff recommends that Council authorize proposed Amendment No. 1 to the City's Professional Services Agreement with MMI for Work Order 11-05 which would increase the contract amount by $61,467.75.