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Reso 0596-06/1981 105 RESOLUTION NO. 596 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SAN MARCOS COUNTY WATER DISTRICT AUTHORIZING THE VISTA SANITATION DISTRICT TO EXECUTE THE THIRD AMENDMENT TO CONTRACT WITH LOWRY & ASSOCIATES REGARDING CONSTRUCTION CONTROL SERVICES FOR PHASE III ENLARGEMENT AND UPGRADING OF THE ENCINA WATER POLLUTION CONTROL FACILITY WHEREAS, the VISTA SANITATION DISTRICT, CITY OF CARLSBAD, LEUCADIA COUNTY WATER DISTRICT, SAN MARCOS COUNTY WATER DISTRICT, BUENA SANITATION DIS- TRICT, AND ENCINITAS SANITARY DISTRICT are parties to a Joint Powers Agreement which provides for the operation and maintenance of a joint sewer system commonly known as the ENCINA WATER POLLUTION CONTROL FACILITY: and WHEREAS, pursuant to the Seventh Supplementto the Basic Joint Powers Agreement, Phase III Enlargement and Upgradin9 of the joint sewer system is in progress; and WHEREAS, the VISTA SANITATION DISTRICT is the administrator of Phase III Enlargement and Upgrading, as required by Section 2 of the aforesaid Seventh Supplement to the Basic Agreement; and WHEREAS, pursuant to prior approval of all members of the Joint Powers, VISTA SANITATION DISTRICT has heretofore entered into a written contract with LOWRY & ASSOCIATES CONSTRUCTION CONTROL SERVICES dated February 7, 1979, for the latter's servi.ces as construction manager for the Phase III Enlargement and Upgrading; and WHEREAS, pursuant to prior approval of all members of the Joint Powers, the said contract has been heretofore amended twice, namely, on February 13, 1980, and November 20, 1980; and WHEREAS, it has become necessary to effectuate a Third Amendment to said contract with LOWRY & ASSOCIATES by reason of the necessity to increase the scope of services heretofore agreed by said firm to be performed, and by reason of delays resulting from a freeze of EPA grant funds from March 20, 1981, to mid- September 1981; and by increased cost to LOWRY & ASSOCIATES resulting from the freeze of EQP funds; and WHEREAS, on May 27, 1981, the proposed Third Amendment to the con- tract with LOWRY & ASSOCIATES was considered by the Joint Advisory Committee to -1- AMENDMENT NO. 3 TO THE AGREEMENT FOR CONSTRUCTION MANAGEMENT SERVICES BETWEEN VISTA SANITATION DISTRICT AND LOWRY AND ASSOCIATES/CONSTRUCTION CONTROL SERVICES FOR PHASE III ENLARGEMENT AND UPGRADING FOR THE ENCINA WATER POLLUTION CONTROL FACILITY I. REFERENCE Agreement for Construction Management Services between Vista Sanitation District and Lowry & Associates/Construction Control Services for Phase III Enlargement and Upgrading of the Encina Water Pollution Control Facility executed February 7, 1979, Amendment No. 1 executed February 13, 1980 and Amendment No. 2 executed November 20, 1980. II. REASON FOR AMENDMENT Whereas the Owner and Construction Manager recognize that certain significant changes in: (1) Construction Manager's services as originally planned; (2) time factors affecting the scheduled activities and (3) contract- or's performance, has resulted in a "change of scope of work" from that mutually contemplated at the time of negotiations of the Master Agreement, Whereas Amendment No. 1 to the Master Agreement provides for scope changes within the Task Order procedure and for the change of the originally negotiated fixed fee and cost ceiling to "Budget" amounts which can not be exceeded except by formal amendment to the Master Agreement, Whereas all changes in the scope of work authorized by amendment to the Master Agreement, or by Task Orders, or their amendments, has not revised the "Budget" amounts in the Master Agreement as originally negotiated. Whereas the next Task Order authorization, Amendment No. 4 to Task Order No. 2, will cause the budget amount of $1,167,027.85 to be exceeded, Whereas, the Owner and Construction Manager have negotiated a mutually acceptable revised scope of work to establish a revised fixed fee and cost ceiling budget amount, Now, therefore, the referenced documents shall be amended. III. AMENDMENT Exhibit A of the Master Agreement is hereby amended as follows: Section I. GENERAL Replace the first sentence of the paragraph with the words, "The services to be rendered by the Construction Manager shall include those services as generally required to facilitate the timely construction of the Encina Sewage Treatment Plant Phase III upgrading and Expansion Project as described in the Contract Documents for Contract Nos. l, 2, 3/4, 5, 6, 7, 8, 9 and lO/ll prepared by the firm of Brown and Caldwell." Exhibit B of the Master Agreement is hereby amended as follows: Section D. COMPENSATION SCHEDULE: Replace the entire section with the words, "For Construction Management services authorized under this agreement, compensation shall be in accordance with the Task Order Authorizations, the applicable portions of this agreement and the following schedule: -2- Basis of Compensation: Cost of Reimbursement Estimated Cost Ceiling, per attached Exhibit A, Inclusive of All Subcontracts and Fixed Professional Fee: $2,304,127 Fixed Professional Fee: $ 300,538 Portion of Fixed Professional Fee Payable Monthly: An Amount Equal to 15% of the Billing, but in No Event to Exceed the Fixed Professional Fee Stated Above Unless there is an agreed upon increase in the scope of work from that outlined in Exhibit "A", paragraph A, Construction Manager agrees that the maximum cost ceiling allowed shall be $2,304,127. In the event any amount of the Fixed Professional Fee remains unpaid upon completion of the project, said amount shall be paid in a lump sum within thirty-five (35) days after the project is completed. The aforesaid estimated cost ceiling shall not be increased without an amendment to this agreement that has been approved by all the member agencies of the Encina Joint Powers." -3- IV. EFFECTIVE DATE OF THIS AUTHORIZATION This amendment is effective on and from the day, month and year it is signed by an authorized signatory of the Vista Sanitation District. CONSTRUCTION MANAGER LOWRY & ASSOCIATES By: Date: CONSTRUCTION CONTROL SERVICES By: Date: OWNER: VISTA SANITATION DISTRICT By: Date: -4- EXHIBIT A AMENDMENT 3 to the MASTER AGREEMENT EXHIBIT A to AMENDMENT 3 to the MASTER AGREEMENT ENCINA PHASE III PROJECT ESTIMATED TOTAL COST OF CONSTRUCTION MANAGEMENT SERVICES Projected Costs to Finish 1981 8 months at $60,000/mo. = $480,000 1982 7 months at $60,000/mo. = 420,000 5 months at $55,000/mo. = 275,000 1983 6 months at $35,000/mo. : 210,000 $1,385,000 Actual Cost to Date (4/22/81 billing) Step 2 Services $361,556 Step 3 Services 557,571 $ 919,127 TOTAL ESTIMATED COST: $2,304,127 EXHIBIT A - Page I ENCINA PHASE III PROJECT JUSTIFICATION STATEMENTS'AND SUMMARY OF COST INCREASES FOR CONSTRUCTION MANAGEMENT SERVICES A. Construction Management Service Scope Changes 1. Extension of Avenida Encinas Originally planned services were based on Brown and Caldwell's plant and facilities described in Brown and Caldwell's Ten Percent design report. Actual services are based on plant and facilities as described in Brown and Caldwell's Contract Documents for Contracts l, 2, 3/4, 5, 6, 7, 8, 9 and lO/ll. The significant difference is the additional grading, offsite utilities relocation, and sewer relocation required by the extension of Avenida Encinas per the City of Carlsbad use permit. - Estimated Cost $335,000 2.Addition of CPM Services to Construction Management Services Contract Estimated Cost $100,000 B.Time Factors Affecting the Scheduled Activities On March 20, 1980 President Carter froze the EPA funds for Grants to wastewater projects. Funds were not released until mid September 1981. This resulted in a six months delay in the advertizing for bids on Contract lO/ll. Estimated Cost $360,000 C. -Contractor Performance 1. Brinderson Corporation, the Contractor for Contract lO}ll, had a. backlog in construction contracts of 60 million at the time they did the Encina work. By the time they were awarded the contract, their backlog increased to 120 million. Field personnel to be assigned to Contract lO/ll EXHIBIT A - Page 2 were diverted to other projects. Brinderson hired new personnel for the Encina project. The contractor's problems in personnel orientation, coordination and shifting of assignments has caused an estimated two months delay in the start of construction. Estimated Cost $100,000 2. Brinderson's field superintendent, a new employee, has demonstrated in his communication skills and style, a need for us to tape record and transcribe weekly progress meetings. This effort requires a full time secretary. If this practice continues for the duration of the job, the estimated cost is $ 60,000 3. E. V. Harris, Contractor for the operations building, is taking a claims oriented approach to his contract. This requires additional documentation and numerous long meetings to prevent an adversary relationship and potential litigation. Estimated Cost $ 10,000 D. Other Cost Factors 1. Extra time and effort associated with coordinating and resolving conflicting details on the operation building has been necessary. Estimated Cost $ 27,000 2. Inflation of the economy since 1979 has increased actual salaries of personnel over what was anticipated. The increased hourly rates would apply for a 12 month extension to the originally planned work. Estimated Cost $129,000 TOTAL ESTIMATED CHANGE OF SCOPE COST INCREASE $1,137,000 (Tdtal of A through D) EXHIBIT A - Page 3 ENCINA PHASE III PROJECT NOTES AND CALCULATIONS A. Construction Management Services Scope Changes 1. Extension of Avenida Encinas Step 2 Services About two thirds of the total effort can be attributed to the additional work due to the extension of Avenida Encinas Estimated Cost = 318,580 x 2/3 = $212,000 Step 3 Services About one half of the total Contract 7 effort can be attributed to the extension of Avertida Encinas Estimated Cost = 245,732 x 1/2 = $123,000 2.Addition of CPM Services to Construction Management Services Contract Negotiated Amount = $100,000 B. Time Factors Affecting the Scheduled Activities See Figure I 4 months @ 15,000/me. = $ 60,000 6 months @ 50,O00/mo. : $300,000 C. Contractor Performance 1. See Figure I 2 months @ 50,O00/mo. = $100,000 2. One secretary full time for 24 months and increased time for Resident Engineer 24 x 2,500/mo. = $ 60,000 24 x 667/mo. = $ 16,000 3. 18% of Resident Engineer time for six months 6 x 1,667/me. = $10,000 D. Other Cost Factors 1. 50% of Field Engineer time for six months 25% of Inspectors time for six months 6 (.5 x 6,500 + .25 x 5,000) = $ 27,000 EXHIBIT A - 2. Comparison of salary increases and increases due to extended time of project longer than originally contemplated (3.5 years vs. 2.5 years) Comparison of hourly rates for the years shown Dollar/Hr. 1979 1981 Increase Principal-in-Charge 34.50 42.00 7.50 Project Manager 22.50 28.00 5.50 Resident Engineer 21.00 -- Field Engineer 15.50 16.50 1.00 Field Inspector 12.50 16.00 3.50 Secretary 6.00 9.50 3.50 Draftsman 11.00 19.00 8.00 3.5 Principal-in-Gharge 420 x ~ x 7.50 = 4,410 3.5 Project/Manager/R.E. 5,313 x ~ x 5.50 :. 40,910 3.5 Field Engineer 4,911 x ~ x 1.00 = 6,875 3.5 Inspector 10,121 x ~ x 3.50 : 49,593 3.5 Secretary 5,490 x ~ x 3.50 : 26,901 128,689 Say $129,000 EXHIBIT A - Page 5 ESTIMATED TOTAL COSTS FROM PAGE I $2,304,127 ORIGINAL NEGOTIATED COST CEILING (1,167,028) $1,137,099 NOTE: Estimated Scope Changes when added to original contract amount are within one hundred dollars {$100.00) of the. actual costs to date added to the estimated costs to complete Construction Management Services. Estimated Scope Changes $1,137,000 Original Contract Amount $1,167,028 $2,304,028 Actual Costs to Date $ 919,127 Estimated Costs to Complete $1,385,000 $2,304,127 EXHIBIT A - Page 6 · ,, n- LU · "' FI U_ ' m ~3'al'=X)Bd ~ .L~IV, Lg IVFU. C)V · Oi s: ¢333301:id 01 3311ON "' ~ Ig61 *O~ Al:WRtJe]=l o e So Ig )-IOJ 9ZlmldgAOY 0 · ,,. m u.mn,. ,m U~;Z ~.LI:JV.L~ NOLO30 'IVI"LLC)V '* " -T1 m n I u.m ~T ~i 9NAt · n' · n m Z Z d ~ ' DO 0861 ~ FROM APRZL 1979 TIIROHCH JANUARY 1981 LOI4Ry CCS LO~RY CCS JAN HA.R APR $ 11,065 $11,065 '$11,065 -- HAY 18,974 $558 19,532 18,974 $558 3 JUN Y,772 4,030 11,802 7,7Y2 4,030 3UL 2°263 -0- 2,263 2,263 -O- AUG 4,89Y 1,388 6,285 4,897 1o388 22 8EP 2,683 -0- 2,683 2,683 -O- OCT 17~36Y 2,172 19,539 1Y,357 2,172 11 NOV 14,825 -0- 14,825 14,825 -O- DEC 18,767 -O- 18,767 18,767 2YoY65 3,734 31,499 27,Y65 3,Y34 12 JAN 29,205 4,7Y5 33,981 29,205 4,Y76 146 FEB 27,182 5,119 32,301 2Y.182 5,119 16 ~ 20,550 2,241 22,791 20,550 2,2461 10 Almi 28,~59 2.292 30,751 28,459 2,292 7 HAY 29,880 10,485 40.366 29,880 I0,486 26 JUN 13,277 -O- $ 7.,550 $4,166 24,993 20,827 4,166 17 JUT.. 20.057 12.580 32.737 20.057 12.580 39 AUG 25,693 19,189 44,882 25.693 19,189 43 SF.!' 32.503 17,352 49,855 32.503 17.352 35 OCT 29,748 3,938 36.248 21,010 90.944 65,996 24,948 · 27 NOV 3,697 1.449 32.930 18.856 56,932 36.627 20.305 36 DEC 4.302 213 31,692 12,512 48,719 35,994 12,725 26 JAN 92,942 -O- $68,869 $23,099 $94,910 971,811 923,099 F~ . 37,O23 19,465 56.488 37,023 19,455 346 HAlt 2,960 580 34,178 16,921 54.539 37,138 17,501 19 APR 37,728 8,732 46,460 37,728 8,732 19 HAY JUN JUL AUG 8E3' OCT NOV TOI'AL 9318,580 $42,976 93646,471 9173,982 $900,009 9683o051 ~216,958 PatX 20, 1981 ENCINA JOINT POUER8 ACTUAL BILLINGS FOR CONSTRUCTION HANAG~ENT SERVICES (STEP 39 ~OM J~E 1980 THROUGH HARCH 1081 CONTRACTS 1 2 3/~ 5 6 7 8 9 I0/11 TOTAL MAT ~ $ 9,~00 $ 20316 ~ 11,716 ~ 22,2~0 10.~97 32,737 A~ 29,830 15.052 ~,882 ~ 26,004 5,30~ 15,949 ~70258 NOV 29,717 7,~14 14,655 510786 DEC 180173 7,3~0 18,691 ~4020~ J~ ~1.40~ S30719 ~1.~32 ~1.270 33.171 2~.229 2~0127 01.313 91,968 ~ ~ 391 191 537 182 4~8 17082~ 13,4~ 3~.023 8.~2 7~,603 I 33~ 101 270 9,756 1~,130 17.958 8,5~2 ~1,101 ~ S~O 1,016 295 6,450 13.110 7.9~ 17.131 ~6,~61 J~ S~ D~ JAN I APt 9HA! e. JUN 2 JUt. SEP OCt mac EXHIBIT A - Page 9 TOTAL S 391 $2,1&8 $5,606 $1,715 $2,293 $245,732 $86,213 $177,92s $35,SA8 $557,57T ENCINA JOINT PO~ER~ PROJECTED BILLINGS FOR CONSTRUCTION P~J~AGDtENT SERVICES FRON JAnUARy 1981 THROUGH JU~E 1983 Contracts I 2 31k 5 6 7 6 ' 9 !O/ll TOTAl. JA~ $ 600 $1,000 $ 2,700 $ 800 $ 1,100 $12,000 $ 9.000 $ 16,000 S 9°300 S 52,500 FEE 600 l,OO0 2.400 800 1,100 12,000 9.000 )6,000 9,600 52,500 ~ 600 1,000 2,200 800 1,100 11,O00 9,000 16,000 10,800 52,500 I APR 1,300 1,0OO 2.100 1,800 1,100 10,000 9,000 16.000 IS.O00 57,300 9 PAT 1,300 1,900 2,000 1,900 1,100 9,000 9,OO0 16,000 15,100 57,300 8 I JU~ 1,500 2,000 2,100 1,900 2,300 9,000 8,500 15,000 15,000 57,300 JUL 1,500 2.000 2,000 8,000 8,000 15,000 20,800 57,300 AUG 1,300 2,000 2,000 5,000 7,000 14,000 26,000 57,300 SEF 1,300 2,000 2.000 4,000 5,000 12,000 31,000 57,300 OC"~ l,OOO 2,000 1.000 2,000 4.000 lO.O00 37,300 57,300 NOV 2.000 1.000 2,000 5,000 47,300 57,300 DEC 2,000 1.000 3,000 51,300 57.300 JA!,; 2.000 .~. 900 56.900 ~ 2.000 54.900 56.900 H/~ 56;900 56.900 I APR 56.900 56.900 9 PAy 56.900 56,900 ,JUt; 2 56,900 56,900 JUI. 56,600 56°400 AUG 51,100 51,100 SEF 51,100 51,100 O~ 51,100 51,100 NOV 46,000 4 b, 000 DEC 46,000 46,000 JA:; 43.300 ~3.300 FF.B 43.300 63.300 ~,,E 43.300 43.300 APR 24,400 2~,,400 PAY 26,400 26,400 JUX 24,400 24,400 · OiAL $ $11,000 $7°900 $29,500 $8.000 $16.800 $82,000 $79.500 $154,000 $1,130,7G0 $1,519,400 EXHIBIT A - Page 10 107 Resolution No. 596 The Joint Powers at a regular meeting thereof, and was unanimously approved by said committee; and WHEREAS, it is in the best interest of this District that the VISTA SANITATION DISTRICT be authorized to execute the Third Amendment to the contract between said District and LOWRY & ASSOCIATES, a copy of which is attached hereto, marked Exhibit "A", and is incorporated herein. NOW THEREFORE, BE IT RESOLVED by the Board of Directors of the SAN MARCOS COUNTY WATER DISTRICT as follows: Section 1. That the Board of Directors of this District hereby authorize the VISTA SANITATION DISTRICT, as administrator of Phase III Enlargement and Upgrading of the ENCINA WATER POLLUTION CONTROL FACILITY to execute, in the form shown in Exhibit "A" hereto, the Third Amendment to the Agreement for Construction Management Services between VISTA SANITATION DISTRICT and LOWRY & ASSOCIATES. PASSED, APPROVED AND ADOPTED, at a regular meeting of the Board of Directors on the 15th day of June, 1981, by the following roll call votes: AYES: Directors: Holm, Waller, Mason, Mahr, Ferguson NOES: Directors: None ABSTAIN: Directors: None ABSENT: Directors: None - ATTEST: retary o n Marcos ter ri ct :