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03.11 Shaffer Construction Management Services 2nd AmendmentAGENDA ITEM February 12, 2019 TO: Honorable Mayor and Members of the City Council THRU: Rick Otto, City Manager \ FROM: Bonnie Hagan, Community Services Director v REVIEW: City Managey/',0 )Finance 1441- 1. SUBJECT Second Amendment to Agreement with GKK WORKS, Inc. for construction management services for the Shaffer Park Renovation Project. 2. SUMMARY This amendment provides additional ongoing construction management services for the Shaffer Park Renovation Project, which has experienced delays beyond the original completion date. The current projected completion date is March 2019, seven months beyond the original date of August 2018. An appropriation of park development fees is necessary to support the amendment. 3. RECOMMENDED ACTION 1. Authorize the appropriation of $75,000 from Fund 510 (Park Acquisition-Infill) unreserved fund balance to expenditure account number 510.7021.56020.30042 - Shaffer Park Renovation. 2. Approve the amendment and authorize the Mayor and City Clerk to execute on behalf of the City. 4. FISCAL IMPACT . The total expenditure for this amendment is $75,000 and will be funded in the Shaffer Park Renovation Project (30042) through Park Acquisition - Infill (510). 5. STRATEGIC PLAN GOALS Goal 3: Enhance and promote quality of life in the Community. a: Refurbish, maintain, develop and/or expand public use places and spaces. 6. DISCUSSION AND BACKGROUND In March 2016, the City Council approved an agreement with GKK Works, Inc., for construction management services in the amount of $276,511 for the Design/Build Shaffer Park Renovation Project. These services include overall project management and ITEM 3. 11 1 02/12/2019 documentation, design and permit oversight, construction oversight, labor compliance, as well as finalize punch items and closeout of the project. The original project completion date was August 2018. The project has been delayed and the new estimated completion date is March 2019. A number of factors have influenced the timeline for this project. As such, the need for construction management services are required beyond the original completion date. These services are critical to proper management of the project and must continue through completion. A first amendment was executed in October 2018 in the amount of $87,000 covering the months of August through December 2018. The proposed second amendment is for $75,000 and provides for continued construction management from January through March 2019. An estimated hours count is included as part of Attachment A to the proposed amendment. The proposed new total contract amount is $438,511. Funding An appropriation of $75,000 from unreserved Fund 510 Park Acquisition — Infill fees is necessary to support the amendment. This, combined with the current appropriation of $7,366,602, will bring the new total amount appropriated to the project to $7,441,602. The project has extended beyond the original timeline due to continued challenges the prime contractor has had in completing the work. Some of the incomplete work that remains includes communication fiber from the street to the buildings; painting, window and door work; access control systems; and repair and replacement of both asphalt and the ballfield outfield. Staff is continuing to work with the City Attorney's office to determine if there is any liability on the contractor's part for the City's additional costs. There are sufficient funds in the Fund 510 fund balance to cover the requested appropriation. Below is a funding summary outlining project components and funding status. Construction Management — GKK Works $ 363,511 Design/Construction — Morillo Construction Inc. MCI 6,300,000 Utilities and Testing — geotechnical, electrical support, materials and soils testing, environmental assessment, abatement --269,983 Shade Sails — Shade Structures Inc. 160,769 Equipment — drinking fountain, waste containers, litter receptacles, delta controls for HVAC 69,301 Furniture, Fixtures and Equipment FF&E 60,000 Surveillance Camera System 60,000 Painting of south property wall 10,000 Sub -total $7,293,564 ITEM FOR CONSIDERATION FEB. 1,2; 2019. GKK Works — Second amendment for construction management 75,000 PENDING ITEMS :City's Estimated Future Costs MCI change orders known as of 01/30/19 75,000 ,'ESTIMATED,PROJECT TOTAL $7 443 564, ITEM 2 02/12/2019 FUNDING -STATUS ., Funds previously appropriated to Shaffer Park Renovation Fund 510 Park Acquisition — Infill $7,362,602 Fund 500 — Women's Club Donation 4,000 Sub -total 7,366,602 ;Pro osed funds for allocation on:Feb 12, 2019 Fund 510 Park Acquisition — Infill 75,000 VROJECT_ALLOCATION.TOTAL AFTER.FEB 12;;.2019; 7;441,602 Estimated need,for,future allocation_, of` endin items: Fund 510 Park Acquisition — Infill 1,962 ESTIMATED TOTAL. $7443;564'; 7. ATTACHMENT • Draft Second Amendment to Professional Services Agreement with GKK Works ITEM 3 02/12/2019 AGMT No. SECOND AMENDMENT PROFESSIONAL SERVICES AGREEMENT This Second Amendment to Consultant Services Agreement (the "Second Amendment") is made and entered into as of , 2019, by and between the CITY OF ORANGE, a municipal corporation (the "City"), and GKK WORKS, a California corporation (herein referred to as the "Contractor"), with reference to the following: A. The City and the Consultant entered into that certain Professional Services Agreement (Agreement No. 6323) dated as of March 15, 2016 (the "Original Agreement"), which was later amended by that certain First Amendment to Professional Services Agreement, dated as of October 9, 2018 (Agreement No. 6323.1) (the "First Amendment"). The Original Agreement and the First Amendment are incorporated herein by this reference; and B. The City and the Contractor desire to further amend the Original Agreement to modify, amend and supplement certain portions of the Original Agreement. NOW, THEREFORE, the parties hereby agree as follows: Section 1. Defined Terms. Except as otherwise defined herein, all capitalized terms used herein shall have the meanings set forth for such terms in the Original Agreement. Section 2. Cross -References. The City and Contractor hereby agree that all references in the Agreement or this Second Amendment to the "Agreement" are deemed and construed to refer to the Agreement, as implemented by this Second Amendment. Section 3. Revised Scone of Services. The Scope of Services, Exhibit A to the Original Agreement, is hereby amended, modified and supplemented to include the services described on Exhibit A attached hereto and incorporated herein by this reference. Section 4. Compensation. The total not -to -exceed compensation (exclusive of reimbursables) set forth in Section 2 of the Original Agreement for the services to be rendered thereunder was the sum of TWO HUNDRED SEVENTY SIX THOUSAND FIVE HUNDRED ELEVEN DOLLARS and 00/100 DOLLARS ($276,511.00). Section 2 of the Original Agreement was amended by the First Amendment to provide for an increase of EIGHTY SEVEN THOUSAND DOLLARS and 00/100 ($87,000.00) in the total not -to -exceed compensation such that the Consultant's total compensation under the Original Agreement, as amended by the First Amendment, would not exceed the sum of THREE HUNDRED SIXTY THREE THOUSAND FIVE HUNDRED ELEVEN DOLLARS and 00/100 ($363,511.00). Section 2 of the Original Agreement is hereby amended to provide for an increase of SEVENTY FIVE THOUSAND DOLLARS and 00/100 ($75,000.00) in the total not -to -exceed compensation such that the Consultant's total compensation under the Original Agreement, as amended by this First and Second Amendment shall not exceed FOUR HUNDRED THIRTY EIGHT THOUSAND FIVE HUNDRED ELEVEN DOLLARS and 00/100 DOLLARS ($438,511.00) without the prior authorization of the City. Section 5. Integration. This Second Amendment, the agreements specifically referred to herein, and all attachments hereto (if any) integrate all of the terms and conditions mentioned herein, and supersede all negotiations with respect to the subject matter hereof. This Second Amendment amends, as set forth herein, the Original Agreement and the First Amendment and, except as specifically amended hereby, the Original Agreement and the First Amendment shall remain in full force and effect. To the extent that there is any conflict or inconsistency between the terms and provisions of this Second Amendment and the terms and provisions of the Original Agreement and/or the First Amendment, the terms and provisions of this Second Amendment shall control and govern the rights and obligations of the parties. [Remainder of page intentionally left blank, signatures on next page) 2 M- DRAFT IN WITNESS of this Agreement, the parties enter into this Agreement on the year and day first above written. "CONTRACTOR" GKK WORKS, a California corporation *By: Printed Name: Title: *By: Printed Name: Title: CITY" CITY OF ORANGE, a municipal corporation Mark A. Murphy, Mayor ATTEST: Pamela Coleman, City Clerk APPROVED AS TO FORM: Gary A. Sheatz Senior Assistant City Attorney *NOTE. The City requires the following signature(s) on behalf of the Consultant. -- (1) the Chairman of the Board, the President or a Vice -President, AND (2) the Secretary, the Chief Financial Officer, the Treasurer, an Assistant Secretary or an Assistant Treasurer. If only one corporate officer exists or one corporate officer holds more than one corporate office, please so indicate. OR -- The corporate officer named in a corporate resolution as authorized to enter into this Agreement. A copy of the corporate resolution, certified by the Secretary close in time to the execution of the Agreement, must be provided to the City. 3[---�� ®RAFT EXHIBIT "A" SUPPLEMENTAL SCOPE OF SERVICES [Behind this page.] SHAFFER PARK PROJECT kkwok TITLE: AMENDMENT No. 2 PROJECT: SHAFFER PARK RENOVATION TO: Dana Robertson Parks and Facilities Manager 230 E. Chapman Ave Orange, CA 92866 AMENDMENT REQUEST DATE: 1.28.19 PROJECT NO: 50093 AGREEMENT NO: 1 REFERENCE: Amend. #2 DESCRIPTION OF WORK Contract Amendment #2 - Because of delays caused by Morillo Construction, in completeing the project, which are out of the control of GKK. GKK will need additional hours to manage construction, continue labor compliance program (Casamar), review and negotiate CO's, finalize punch items and closeout project. Amendment #2 is a Not to Exceed amount of $75,000, to provide construction management oversite as needed. SUMMARY OF COSTS Not to Exceed amount: SUBTOTAL DIRECT COSTS: ORIGINAL NTE CONTRACT AMOUNT OF NTE AMENDMENT#1: REVISED NTE CONTRACT AMOUNT: By: Rocky Borton Gkkworks $ 75,000 $ 75,000 $ 276.611.00 $ 87,000.00 $ 438,511.00 Date: 1.29.19 APPROVAL Date: Exhibit A - Page 1 of 2 Shaffer Park Projections January 30, 2019 GKK Estimated Hours January to March 2019 Position Hourly Rate Number of Hours Cost Per Position Project Executive $ 170.00 80 $ 13,600.00 Construction Manager $ 135.00 118 $ 15,930.00 Project Engineer $ 115.00 336 $ 38,640.00 Labor Compliance Principal $ 136.00 3 $ 408.00 Labor Compliance Officer $ 111.00 20 $ 2,220.00 Labor Compliance Analyst $ 71.00 50 $ 3,550.00 Administrator $ 40.50 5 $ 202.50 Estimated Total, 612 $ 74,550.50 Exhibit A - Page 2 of 2