Title
Staff Report for a City of San Leandro City Council Resolution to Approve Amendment No. 1 to a Consulting Services Agreement with Testing Engineers for Special Inspection and Materials Testing to Increase the Amount of Compensation by $51,000 for a Total not to Exceed Amount of $85,000 on the Farrelly Pool Replacement, Project No. 2018.3420; and to Authorize the Extension of the Contract Term from June 30, 2021 to December 31, 2021.
Staffreport
SUMMARY AND RECOMMENDATIONS
Inspection cost increases are anticipated for the project that are primarily attributed to construction scheduling inefficiencies as a result of safety protocols for the COVID-19 epidemic. This contract amendment provides for the additional cost resulting from the extended time needed for material testing and special inspection services required for the construction of the new Farrelly Pool Replacement project.
Staff recommends the following actions:
• Approval of Amendment No. 1 to the CSA with Testing Engineers in an amount of $51,000, resulting in a total contract amount of $85,000, an increase of 150% above the original contract amount of $34,000; and
• Authorization for the City Manager to execute Amendment No. 1; and
• Authorization of the extension of the contract term from June 30, 2021 to December 31, 2021.
BACKGROUND
On November 4, 2019, by Resolution No. 2019-184, the City Council awarded a $6,222,450 contract to TriCon Construction for the construction of the new Farrelly Pool aquatic facility. Quality assurance of the construction work (with special inspection and material testing) is required by the Building Code, permit conditions, and City standards. These services are typically not included in the construction contract to avoid conflicts of interest.
Testing Engineers was hired to provide materials testing and special inspection services for this project because the firm has successfully completed other City projects, is a local business, can be readily available to provide services with a minimum of travel time to the project site, and the firm provided the City a 10% discount for its services. On September 30, 2019, a Consulting Services Agreement (CSA) with Testing Engineers was approved for the Farrelly Pool Replacement project for $34,000. Because the estimated value of this contract was less than $50,000, this action did not require City Council approval.
The City also has other minor construction contracts with several vendors on this project: Denalect Alarm Company for the installation of security and fire alarm systems, Ojo Technology for the installation of security cameras, Smartwave Technology for the installation of a microwave dish for internet connectivity, and JL McComb Coating Services for the installation of anti-graffiti coating on the exterior masonry block walls. Except for the contract with Denalect Alarm Company, none of these other construction contracts have a value large enough to require City Council approval.
Analysis
Testing Engineers has been working on this project since the start of construction in February 2020. Based on the remaining construction to be done, the cost of inspections needed by Testing Engineers is expected to exceed the remaining contract balance. Amendment No. 1 is proposed to cover the cost to complete all the remaining special inspection and materials testing tasks needed. The consultant has evaluated the remaining work items and developed an estimate of $51,000 for this work. Adding this amount to the original contract amount of $34,000 results in a total contract amount of $85,000, an increase of 150% above the original contract. The new contract total requested with Amendment 1 requires approval by the City Council.
Construction is expected to be complete in Spring 2021 and closeout paperwork may take an additional two months. The amendment extends the contract to the end of the calendar year to ensure there is sufficient time for project closeout.
The original contract balance is expected to be exceeded because of the following unforeseen conditions:
• Work on this contract is performed on a Time and Materials basis and is therefore highly dependent on the actual field construction activities and timetable. The original level of effort was based only on building elements alone and not the contactor schedule resulting from COVID-19 safety protocols, which was unknown at the start of construction. Additionally, many of these tasks such as structural field welding and masonry work lasted longer than expected as a result of the pandemic and subsequently required additional site visits by Testing Engineers.
• The impacts of the Covid-19 pandemic affected the scheduling of work crews and impacted the efficiency of these inspections, resulting in extension of the overall project schedule and reduction of crews’ overlap of field activities.
• The original scope of work did not include compaction testing, which is often performed by Alameda County for the City. However, the County was not available due to Covid-19. Testing Engineers was tasked to provide the compaction testing because the firm already had a City contract with the necessary insurance coverages.
Current Agency Policies
• Maintain and enhance San Leandro’s infrastructure
• Support and implement programs, activities and strengthen communication that enhances the quality of life and wellness, celebrates the arts and diversity and promotes civic pride
Previous Actions
• On November 4, 2019, by Resolution No. 2019-184, the City Council awarded a construction contract to Tricon Construction, Inc. for the Farrelly Pool Replacement project.
Committee Review and Actions
On February 7, 2018, staff presented to the City Council Facilities and Transportation Committee information on the Farrelly Pool Replacement project, the Boys and Girls Club Pool Resurfacing, and the Family Aquatics Center Competition Pool projects.
Applicable General Plan Policies
• Policy OSC-1.2 Park Maintenance. Provide for the regular, systematic maintenance of San Leandro’s parks and recreational facilities to prevent deterioration, ensure public safety, and permit continued public use and enjoyment.
• Policy OSC-4.1 Joint Use Agreements. Promote joint use agreements between the City and the San Leandro Unified School District and San Lorenzo School District to maximize public access to school recreational facilities and grounds during non-school hours.
Permits and/or Variances Granted
City Building Permit B19-0925 and Alameda County Health Department Permit SR 0038325 have been issued for this project.
Code Compliance Review
Installed equipment shall comply with all applicable codes and will be inspected for code compliance as part of the required building permits.
Summary of Public Outreach Efforts
• An open house for the public was held at Roosevelt Elementary School on March 27, 2019 between 6:30pm and 8:30pm to present the new facility design. Four information stations were set up at the meeting with Engineering and Recreation staff personnel available to answer inquiries and provide comment cards for their opinions.
• Notices regarding the start of construction were distributed to the neighborhood the week of January 20, 2020 with City staff contact information.
Fiscal Impacts
The cost of the proposed Consulting Services Agreement with Testing Engineers for materials testing and special inspection is $85,000 and is included in the amount listed below for Utilities, Permits, and Specialty construction contracts. No additional appropriation is needed at this time.
The total estimated project cost is as follows:
Design, Permit, and Bid: $621,357
Demolition Contract: $158,000
Original Construction Contract: $6,222,450
Allowance for current construction contract changes: $250,000
Utilities, Permits, and Specialty construction contracts: $320,500
Construction Management and Inspection (Staff and Consultants): $702,613
Allowance for Fixtures, Furnishings and Equipment Allowance $75,000
Construction Contingency Allowance for future changes: $200,000
Project Total $8,549,920
Budget Authority
This project is funded as follows:
Account No. Resolution. Appropriation Date Amount
210-62-123 Res. 2017-072, June 5, 2017 $2,300,000
Res. 2019-094, June 3, 2019 $1,100,000
210-62-131 Res. 2018-152, December 3, 2018 $1,200,000
Res. 2019 -184, November 4, 2019 $3,455,000
122-62-131 Res. 2019 -184, November 4, 2019 $495,000
Total Project Funding: $8,550,000
Attachment to Staff Report
• CSA - Signed Testing Engineers
Attachment to Related Legislative File/Resolution
• Farrelly Pool Amend 1 Testing Engineers
PREPARED BY: Mark Goralka, Associate Engineer, Engineering and Transportation Department