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