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 City of Hermosa Beach --- 02-09-99
HERMOSA BEACH PIER RENOVATION PROJECT - PROJECT NO. CIP 95-620, APPROVE SUPPLEMENTAL AGREEMENT BETWEEN CITY AND CONTRACTOR
Recommendation:
It is recommended that the City Council:
Background:
On September 10, 1998, Council awarded a construction contract to John S. Meek Company, Inc.; (Contractor) for the structural repairs of the pier while the architectural design was being completed. The base contract for the project included unit quantities for repairs to the piles, caps and surface of the pier deck, along with composite pile wrapping at specific pile locations. Demolition of the existing structure at the end of the pier and re-installation of the foghorn were also included in the original contract for the renovation. The repair information presented on the contract drawings was based on surveys performed at beginning of the design phase development of the work and confirmed in early 1998.
Prior to the award of the construction contract, Council awarded a contract to Concept Marine, Inc. to provide for the construction management of the construction work. In effect, Concept Marine, Inc. is serving as an extension of staff.
Analysis:
The construction of the project began in October 1998, with the contractor performing the work as the approved general contractor for the project. As the structure repair work progressed, staff began to notice that the original scope of repair work appeared to be underestimated due to the discovery of many cracks in the concrete structure requiring repairs that were not identified in the original scope of work. In addition, staff found damage to the underside of the deck planks that was not previously identified.
As a result, staff requested that the Engineer of Record, HLA Infrasture, Inc., travel to the site and in conjunction with the contractor, perform a physical survey of the pier structure portion that had yet to be repaired, to achieve a definitive scope of total repair work. This survey occurred on January 12 and 13, 1999, with the quantities of repairs increasing by a large margin. This work was done under the approval of Contract Change Order No. 3, dated January 7, 1999.
Staff requested that the contractor submit a quote for doing the additional work. The quote will include the anticipated costs and time required for the additional work related to repairs for the pier structure and additional costs for the pier deck surface repairs that staff believes will exceed the original bid scope of work. The contractor quoted $585,298.95 for doing the additional work.
In addition to the above mentioned additional work, there are other potential cost changes that must be funded. The potential cost changes are listed below.
1. Installation of light fixture at the end of the pier $1,000.00 2. Increase in footing width to match existing footings $5,000.00 3. Seismic ties at top of storage room wall $10,000.00 Estimated total for other potential cost changes $16,000.00
Assuming that Council is committed to maintaining the structural integrity of the pier structure, coupled with the need to avoid costly delay charges, staff has directed the contractor to continue to work. Consequently, as of this date, work has exceeded the contract amount for spall repair by 64.136 cubic feet and epoxy crack injection by 172.92 lineal feet. This amounts to approximately $75,000 that we will have to cover by a change order or in deletion of contract work that has not been done as of this date. Therefore, it is imperative that the attached supplemental agreement be approved.
The 1998/99 Fiscal Year Budget for the project is $903,000. The contract price is $643,743.50. The assumed contingency for construction is $64,374, therefore, leaving $194,883 for program administration and other program needs.
Project Budget for Construction $708,117.00
Original Contract amount $643,743.50
Sub-total $685,133.89
Supplemental Agreement Number 1 $585,298.95
1. Installation of light fixture at the end of the pier $1,000.00 2. Increase in footing width to match existing footings 5,000.00 3. Seismic ties at top of storage room wall 10,000.00 Sub-total for other potential cost changes $16,000.00
Total projected costs $1,286,432.84 ($578,306.84)
Estimate of funds available
Alternative No. 1: Increase the current project budget amount to include the cost proposal from the contractor to complete the entire scope of repairs noted by the engineer. This action will effectively double the original contract amount to approximately $1,350,000 and allow for project completion within the original time frame of 270 days. The pier could be opened for daytime public use after completion of the structural upgrades, prior to launching the next phase of architectural upgrades.
Alternative No. 2: Direct the contractor to perform required repairs on a specific number of bents, including the pile, cap and deck repairs at the location noted for pile encasement, stopping the ongoing bent repair work at the specific location. The remaining work could be deferred to the next phase of construction and bid as a component of the total construction work. In addition, defer all the work related to the deck surface treatments on the pier, accepting a credit of approximately $78,000 for the deletion of this scope. These added funds could then be applied to offset the current additional work being performed and result in an approximate maximum contract total cost of $1,000,000. The remaining repairs to the non-encased pile bents could be included in the next phase of architectural upgrades.
Comments: This option does have a risk factor in that construction costs are subject to extraneous factors that may result in equal to or higher costs than currently presented rather than a cost savings. In addition, all of the remaining repairs will be over the water, requiring more expensive protection measures, staging and material removal costs. The time for the project completion should not be affected by this option, however the engineer has indicated that repairs must be completed soon to avoid further deterioration of the unrepaired structural components of the pier. The anticipated time between phases of construction must be considered when reviewing this option.
Alternative No. 3: Direct the additional work be performed on a T & M basis, verifying the actual time and material expended for the work. This option may lower the final cost of the work and will allow for markup and payment for actual work performed rather than relying on the unit price forwarded by the contractor.
Comments: This method of performing work may afford a cost savings, although production rates must be closely monitored to ensure worker productively remains consistent with previous progress. Again, this option should include a credit for the deck surface treatments applied to offset the additional work costs, and the deck treatment work deferred to the next phase of construction. The completion duration of 270 days should remain unchanged.
Current Proposal: The current proposal from the contractor reflects a combination of option number 1 and number 2. The price is for the complete repair of the structural components of the pier and excludes the deck treatments. A credit for deck treatments is noted in the proposal as a deduction from the total price. This proposal reflects a unit cost that is commensurate with the actual units costs expensed to date and is being forwarded for approval. The current contractor is fully mobilized for the project and can complete the work in an expeditious manner. Staff recommends approval of this proposal as a supplemental agreement to the contract.
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