To: MAYOR AND CITY COUNCIL
From: TED SEMAAN, PUBLIC WORKS DIRECTOR
TITLE
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APPROVE A FOURTH AMENDMENT TO THE AGREEMENT WITH ARDURRA GROUP, INC. FOR CONSTRUCTION MANAGEMENT SERVICES FOR THE REDONDO BEACH TRANSIT CENTER PROJECT, JOB NO. 20120 FOR AN ADDITIONAL AMOUNT OF $60,000 FOR THE EXISTING TERM
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EXECUTIVE SUMMARY
Ardurra Group, Inc. (Ardurra) provides services to manage construction efforts to complete the Redondo Beach Transit Center Project. These services include contractor management, construction inspection, contractor and subcontractor payroll review, and geotechnical and materials testing services. As construction has progressed, the demand for support services provided by Ardurra has increased due to necessary plan revisions, changes to contractor scope and unforeseen circumstances. The original Agreement was amended in May 2021. A second amendment was approved in February 2022 and a third amendment in June 2022. Additional project delays and extensions have occurred, requiring more time (hours) for the service provided by Ardurra. Staff is now recommending the fourth amendment to increase the contract value by $60,000 for a total not to exceed amount of $1,395,000. Funding for this Agreement and the Redondo Beach Transit Center Project is composed entirely of restricted transportation and grant funds. No additional funding is needed to award the fourth amendment.
BACKGROUND
On December 17, 2019, the City Council approved a time and materials Construction Management agreement with Ardurra in the amount of $600,000 to provide Construction Management services during construction of the Redondo Beach Transit Center Project. At the time, the City had negotiated the total price downward from Ardurra’s proposal due to some uncertainty of timing regarding additional funding for the project. Ardurra was willing to lower the contract value as long as there was some reduction in the expected number of hours, with the understanding that if the project required additional time and effort, the City would consider an amendment for the additional work. After the original award, the City secured additional funding from Metro (in the amount of $2.75 M) for the project.
The City approved the First Amendment to provide necessary funding to increase contract value from the spartan estimate provided at the time the contract was awarded and before the additional funding was available. A Second Amendment was approved in February 2022 to account for project delays related unforeseen field conditions and design deficiencies. A Third Amendment was approved on June 21, 2022 to continue to provide services for the project. A copy of the original Agreement, and previous amendments can be viewed at:
<http://laserweb.redondo.org/weblink/0/doc/332745/Page1.aspx>.
The project continues to be impacted by unforeseen conditions, design deficiencies and small changes to scope that require an increase services from Ardurra. The contractor now estimates the transit center portion of the project to be in service in November 2022 and some of this time is justified due to conditions beyond his control. Ardurra, working as an extension of staff to oversee and inspect the onsite activities requires additional contract hours to continue to provide that service.
Ardurra has performed well and is providing important services to ensure the project is implemented as efficiently and economically as possible. Therefore, staff recommends the fourth amendment to the Agreement be awarded, increasing the contract value by $60,000 to a new not to exceed amount of $1,395,000.
COORDINATION
The Fourth Amendment was prepared by and approved as to form by the City Attorney’s Office.
FISCAL IMPACT
Funding for this Agreement and the Redondo Beach Transit Center Project is composed entirely of restricted transportation and grant funds. The funds for this amendment are available in the overall project budget and require no additional appropriation.
APPROVED BY:
Mike Witzansky, City Manager
ATTACHMENTS
• Agmt - Fourth Amendment to Ardurra Group, Inc.