RPVCCA_CC_SR_2014_08_19_M_KOA_Contract_Amendment_San_Ramon_Flood_Reduction_ProjectCfTYOF RANCHO PALOS VERDES
MEMORANDUM
TO: HONORABLE MAYOR & CITY COUNCIL MEMBERS
FROM:
DATE:
£o( MICHAEL THRONE, DIRECTOR OF PUBLIC WORKS}'\~
AUGUST 19, 2014
SUBJECT: SECOND AMENDMENT TO THE CONTRACT WITH
KOA CORPORATION FOR CONSTRUCTION
MANAGEMENT SERVICES -SAN RAMON CANYON
FLOOD REDUCTION PROJECT
REVIEWED: CAROLYNN PETRU, ACTING CITY MANAGE~
Project Manager: Andy Winje, Associate Engineer~
RECOMMENDATION
Approve an increase to the contract awarded to KOA Corporation in the amount of
$61,000 for changes in scope for Construction Management services and extend the
contract expiration date to December 31, 2014 in relation to additional construction work
performed for the San Ramon Canyon Flood Reduction Project.
BACKGROUND
KOA employees function as the day to day on-site managers and inspectors on behalf
of the City for the San Ramon Canyon Stormwater Flood Reduction Project. City
Council awarded KOA Corporation a $640,840 professional services contract on March
5, 2013 to perform construction management (including inspection) project. On May 6,
2014 City Council authorized an increase of $110,000 to the amount of this contract to
accommodate unanticipated work. About 80% of that increase was required due to
contractor delays and work outside of regular hours and was therefore charged back to
the contractor. The net cost to the City was only $24,000, which was mostly attributable
to extra work during the value engineering process last summer and managing small
changes in scope. Now the City has authorized the contractor to do significant
additional work, not previously in the contract scope, and this work will require extra
effort from KOA to continue to serve as the City's on-site representation until the project
is complete.
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KOA Professional Services Agreement Increase
August19,2014
Page 2of3
DISCUSSION
The City has authorized the contractor to proceed with additional work to rehabilitate
drainage structures and pavement along the switchback portion of PVDE as part of this
contract. Doing so will make this work eligible for partial reimbursement through the
state grant. In order to manage the new work, KOA will need to provide extra time for
both construction management and inspection personnel. However, some of this time
can be charged back against the contractor as a portion of the KOA time is still required
to oversee certain awarded scope items that are not complete. The table below
summarizes the three allocations (including this proposed one) to KOA, the portion of
these that will be charged back to the contractor, and the resulting net cost to the City.
Original Award (3/5/2013) I $ 640,840.00 $ -l $ 640,840.00 I
!=frst lncrease{576714}-~-~r$~ 110,000.00 r-$ ~-(86,000.00)1 f--~-24,ooo.oo ! ______________________ .. ____ ----··-·---------·----t···--···----·········-. ------·---f---··---····'"····------··---------···
Second Increase (8/19/14) $ 61,000.00 1 $ (36,000.00)' $ 25,000.00 I
----···---···---··-------.. ---···--·----$ 811,840.00 I $ (122,ooo_:_Q.Ql _!___ __ 689,840.00.J
The City's purchasing ordinance requires an amendment to increase the KOA
agreement by $61,000 to a not to exceed value of $811,840. Of the $61,000, about
$36,000 is estimated to be recovered from chargebacks to the contractor. The
maximum new net cost of KOA's services ($689,840) represent a 7.6% increase over
their initially awarded contract value ($640,840). KOA will continue to be paid only for
work they actually perform in accordance with the existing contract terms.
Staff does not anticipate KOA's in-field activity extending past the current contract
expiration date of October 14, 2014. However, due to the extra time required by the
additional work and possibility of the need to do project closeout beyond this date, staff
is also recommending an extension of the contract expiration to December 31, 2014.
An contract amendment, documenting these two changes has been reviewed by the
City Attorney and is attached.
CONCLUSIONS
The San Ramon project has taken longer than schedule due to contractor delays and
scope increase. This extra time requires additional work to be performed by KOA as
the City's on-site construction manager. The City's purchasing policy requires KOA's
contract limit to be increased to cover this extra effort. A portion of these additional
costs to KOA will be borne by the contractor through chargebacks and a reciprocal
reduction in the contractor's contract value. Therefore, staff recommends an increase
of $61,000 to the "not-to-exceed" limit and an extension of the expiration date to
December 31, 2014 of the KOA professional services agreement awarded on March 5,
2013.
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KOA Professional Services Agreement Increase
August19,2014
Page 3of3
FISCAL IMPACT
The net cost to the City for services pertaining to this recommendation is estimated at
$25,000. Grant reimbursement may further reduce this obligation. The FY 2014-15
City Budget provides adequate funding in the Storm Water Quality Fund for this activity.
Attachment: KOA Contract Amendment
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CITY OF RANCHO PALOS VERDES
AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT
THIS AMENDMENT TO AGREEMENT ("Amendment") is made and entered into
this 19th day of August 2014, and amends the Agreement dated March 5, 2013
("Agreement"), by and between the City of Rancho Palos Verdes (hereinafter referred to
as the "CITY") and KOA Corporation (hereafter referred to as "CONSUL TANT") for
CONSUL TANT to provide additional services requested by CITY in connection with the
San Ramon Canyon Stormwater Flood Reduction Project.
IN CONSIDERATION of the covenants set forth herein, the parties hereto agree
as follows:
Section 1. Section 2.1 of the Agreement entitled Fee is hereby amended to read
as follows:
2.1. Fee
CITY agrees to compensate CONSULTANT an amount not to exceed eight
hundred eleven thousand, eight hundred forty dollars and no cents ($811,840.00) for
·services as described in Article 1.
Section 2. Section 2.5 of the Agreement entitled Term of Agreement is hereby
amended to read as follows:
2.5 Term of Agreement
This Agreement shall commence on March 6, 2013, and shall terminate
either thirty (30) days after filing of the Notice of Completion for the San Ramon Canyon
Stormwater Flood Reduction Project, or on December 31, 2014, whichever occurs first,
unless sooner terminated pursuant to Article 4 of this Agreement.
Section 3. Except as expressly amended by this Amendment, all of the
provisions of the Agreement shall remain in full force and effect.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the date and year first above written.
R6876-0001\1535197v2.doc
KOA CORPORATION
("CONSULTANT")
By:~~~~~~~~~~~~-
Printed Name:
~~~~~~~~-
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Dated: -----------
ATTEST: ·
By: ___________ _
City Clerk
R6876-0001\1535197v2. doc
Printed Name: --------
Title: -----------
CITY OF RANCHO PALOS VERDES
("CITY")
By: ___________ _
Mayor
APPROVED AS TO FORM:
By: ___________ _
City Attorney
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