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HomeMy WebLinkAboutContract 26092 CITY SECRETARY AMENDMENT NO. 2 CONTRACT NO. 2 f� STATE OF TEXAS S CITY SECRETARY CONTRACT NO. COUNTY OF TARRANT S WHEREAS, the City of Fort Worth (City) and Wade & Associate Inc. , (Engineer) made and entered into City Secretary Contract No. 21764, (the Contract) which was authorized by the City Council by M&C C-15355 on the 26th day of March, 1996 and subsequently revised by one previous amendment; and WHEREAS, the Contract involves engineering services for the following project: Engineering contract for the design of Sanitary Sewer Mains 42 and 54 Drainage Areas Rehabilitation and Sewer System Improvements (Group 4, Contract 1) Part 2 . WHEREAS, it has become necessary to execute Amendment No. 2 to said Contract to include an increased scope of work and revised maximum fee; NOW THEREFORE, City and Engineer, acting herein by and through their duly authorized representatives, enter into the following agreement which amends the Contract: 1. Article I, of the Contract is amended to include the addition- al engineering services specified in M&C C-18106, adopted by the City Council on the 11th day of July, 2000, and further amplified in a proposal letter dated March 13, 2000, copies of which are both attached hereto and incorporated herein. The cost to City for the additional services to be performed by Engineer total $80,138.40 . 2 . Article III, Section D, of the Contract is amended to provide for an increase in the maximum fee to be paid to Engineer for all work and services performed under the Contract, as amended, so that the total fee paid by the City for all work and services shall not exceed the sum of $527,822 .40. FT. p mx All other provisions of the Contract which are not expressly amended herein shall remain ^in full force and effect. 7 EXECUTED on this the U-M,day of ISU 2000, in Fort Worth, Tarrant County, Texas. ATTEST: a- 19 l o fp Contract Authorization 1-11-00 tCityGlox4a Pearson, City Secretary bat-* Secretary APPROVAL RECOb24ENDED: A. Douglas Rademaker, P.E. Mike Groomer Director, Department of Assistant City Manager Engineering WADE & ASSOCIATES, INC. Engineer 6X�L&By: Name: Mark G. Wade, P.E. President 213 South Jennings Avenue Fort Worth, TX 76104 APPROVED AS TO FORM AND LEGALITY: Gary Steinberger Assistant City Attorney 21764 C d RECORD -N,$S' My V WHUE 13 March 2000 Mr. John Boyer Project Manager Department of Engineering Integrated Wet Weather Program 811 Lamar Street, Suite 310 Fort Worth, Texas 76102 RE: Revised Contract Amendment No. 2 Sanitary Sewer Mains M-42 and M-54 Drainage Area Pipeline Rehabilitation and Sanitary Sewer Improvements. (Group 4, Contract 1), Parts 4, 6. 8, & 10; DOE Nos. 1436, 1741. 1742, & 1743. PS46-0704060.110180, City Contract Nos., 21764 and 23499 Dear John: This letter is in response to your request for Wade & Associates to reconsider its prior requests for a contract amendment under this project. Contract Amendment No. 2 was originally submitted to the City in October of 1998. Over that period of nearly one and one half years, we have revised our amendment request several times. The last time it was revised will be. one year ago this month, which reduced the amendment request by more than $13,000 to $86,659.21. As you are aware. it was not until this fall that we were able to actually sit down and discuss this situation with Mr. Rademaker, Mr. Trice, and Mr. Sholola. Clearly the sentiment at this meeting was that the request was large (perhaps too large). but that a substantive amendment was warranted on this project. For example, during this meeting Mr. Trice easily justified well over $20.000 in added fees, alone, due to the segmentation of this project into so many parts and units. Based on that and other comments made. we believed that the City would support our request to recover extensive budget overruns for our surveying and printing subcontractors at itspresent requested levels. Therefore, in my opinion, we are now discussing the validity of our labor and direct expense costs being requested. Again. as you are aware. Mr. Trice directed the detailed examination of the construction contract chane orders associated with these many projects. It was Mr. Trice's intent to develop new associated construction costs so that we could determine reasonable engineering fees using either (1) our existing contract percent of construction costs or (2) calculating it from the standard engineering curves. I recall Mr. Trice saying that we had received about 7.59% of construction costs in fees from the curves. However, my calculations indicate that we actually received approximately 8.1% of construction costs for design fees, after removing the investigative and post rehabilitation of the sewer system portions to this contract from consideration. Since you were the one who actually pulled the change order cost information, you were the Consulting Engineers first to discover that the ability to equate many of the amendment elements with firm "added 213 South Jennings Avenue 1�1i� ���a�p r���In,r1D For[ Worth, Texas 76104 u L� �j Uu` 8 1 7 3 3 5 2 8 7 9 (� Eli 9 FAX 817 .335 . 1 729 UUU lS UcL(Vii1 I( Page 2 of 3 R1r. John Boyer 3/13/00 cost" items in a change order was essentially impossible. We examined this data that we received from you and determined that S575,064 of new construction costs was added and 8274,110 in costs were deleted for a net change in contract value of 8300,954. We believe, however, that it would be unfair to use the net change in contract value since much of our work did actually help to reduce overall expenditures of City funds. Therefore. we used the total costs added and determined that we should receive 846,695 in engineering fees or 8.I% of the added construction costs of 8575,064. We have once again revisited the labor and direct costs for this project and have amended thein to try to match the crude analysis described above. Please see Attachment A for the details. Again, we must firmly note that we are not assuming that the approximately 847,000 in fees adequately covers the subcontractor expenses we incurred that nearly doubled the amounts originally budgeted for in this project, especially when considering the unusual circumstances surrounding this project. Those cost overruns in surveying and printing services are all directly related to the rapidly changing conditions associated with this project and they are justifiable. Therefore, we are still seeking to recover these overruns, including administrative fees. Therefore, reluctantly we have revised Contract Amendment No.2 again to reflect a further reduction in fees down to 880,138.40. For your convenience, the following table provides a quick summary of revised amendment request: Revised Amendment No. 2 Item Description Extra Project 109, Admin. Total Amount Expenses Fee Requested Surveying Overruns $21,761.50 $2,176.15 $23,937.65 Printincr Overruns *** $8,860.33 $886.03 $9,746.36 Subtotal Subcontract $33,684.01 Overruns: Labor Expenses $43,936.50 None at this time $43,936.50 Direct Costs $2,517.89 None at this time $2,517.89 Subtotal Labor & Expenses: $46,454.39 TOTAL REQUESTED: $80,138.40 *** Printing costs have been discounted 53,796.80 of printing expenses as was previously required by Mr. Sholola As you know, we have been extremely patient about this matter. But this situation, we believe, has become unacceptable to the point of being ridiculous. We are very disappointed that no progress has been made since the meeting last fall, at which time, Mr. Rademaker indicated a desire to go to Council with this item within a few weeks. Given all the time that has once again passed, quite frankly, we should be requesting interest on this money. At this time we decided not to pursue interest penalties in this amendment. However, if this matter continues to drag out, we will be forced into taking other measures in order to resolve this issue. rn n Wade & Associates, Inc. I �T��i N�f2��`�r ��► � Consulting Engineers r14�15^ !�IJn1U5 Page 3 of 3 Mr. John Boyer 3/13/00 Also, the other day, you inquired into our firm writing a letter to the Texas Water Development Board (SRF) certifying the Main 42/54 projects for the City. This deliverable was not included in our original contract for this project and, therefore, we believe a contract amendment would be warranted. You should also be aware that we have serious reservations about the liability associated with such a request since our firm was not able to inspect the construction of the sewers on this project. At this time, we will further consider whether such a request could be accepted and performed by our firm. We will not make any decisions regarding this issue until we receive this request in writing from the City and that we are provided other background and reference materials as we have already requested. Ho�kever, one thing is clear. We will not perform ani, additional work without an approved contract amendment in hand. We believe this is a reasonable request, and one that any qualified consultant would request. At this time. we will not entertain any further contract amendments for this project until Amendment No. ? is satisfactorily resolved. Be believe it is imperative that we work together to move this amendment through the approval process, immediately. This is a valid and justified contract amendment for extra work performed under this contract. We remain puzzled why an amendment has yet to be processed. Being a small firm, absorbing excessive project expenses such as these has been very difficult and has adversely impacted our company. Please contact me so we can meet to discuss this matter at your earliest convenience. I will rearrange my schedule to accommodate yours in order to resolve this matter. Thank you for your time and consideration. 4E. AS CIAT S, Pt C. Bro -s, P. Project Manager cc: Peter Fu. P.E.. Wet Weather Program. FW«'D Mr. Rick Trice, Contracting Manager, DOE Mark G. Wade. P.E., Project Director, WADE G0QD CNS'*?eIP� f°Ry Wade & Associates, Inc. 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FOR SANITARY SEWER MAINS 42 AND 54 DRAINAGE AREA REHABILITATION AND SANITARY SYSTEM IMPROVEMENTS GROUP 4, CONTRACT 1 PART 2 RECOMMENDATION: It is recommended that the City Council authorize the City Manager to execute Amendment No. 2 to City Secretary Contract (No. 21764) with Wade & Associates, Inc. in the amount of $80,138.40 to provide for additional design and survey services, thereby increasing the contract amount to $527,822.40. DISCUSSION: On March 26, 1996 (M&C C-15355), the City Council authorized the City Manager to execute an engineering agreement with Wade & Associates, Inc. in the amount of $432,869.00 for the preparation of plans and specifications for Sanitary Sewer Mains 42 and 54 Drainage Area Rehabilitation and Sanitary System Improvements (Group 4, Contract 1) Part 2. The contract was subsequently revised by one previous amendment in the amount of$14,815.00. The original contract provided for the project to be divided into four parts to expedite construction. However, in order to further expedite the construction of this project (which is required by an administrative order of the Environmental Protection Agency), staff directed Wade & Associates, Inc. to create two additional parts consisting of two units each. In addition, during construction, numerous conflicts with existing and abandoned utility lines in the southwest quadrant of downtown necessitated the redesign of several project sewer lines. There were no records available to indicate the existence of some of the majority of the conflicting utilities. Furthermore, some of the utilities were encountered at different locations and elevations than indicated on existing City records. The redesign required additional survey work and the preparation of additional permanent easements. Wade & Associates, Inc. has submitted a proposal in the amount of $80,138.40 for all the additional services that are to be provided on this amendment. Staff considers the fee to be fair and reasonable for the additional service. Wade & Associates, Inc. is in compliance with the City's M/WBE Ordinance by committing to an additional 38% M/WBE participation on this amendment. City of Fort Worth, Texas "affor and Council Communication DATE REFERENCE NUMBER LOG NAME PAGE 7/11/00 **C-18106 30DT 2 of 2 SUBJECT AMENDMENT NO. 2 TO ENGINEERING AGREEMENT WITH WADE & ASSOCIATES, INC. FOR SANITARY SEWER MAINS 42 AND 54'DRAINAGE AREA REHABILITATION AND SANITARY SYSTEM IMPROVEMENTS GROUP 4, CONTRACT 1 PART 2 FISCAL INFORMATION/CERTIFICATION: The Finance Director certifies that funds are available in the current capital budget, as appropriated, of the Commercial Paper-Sewer Fund. MG:k Submitted for City Manager's F1JND ACCOUNT CENTER AMOUNT CITY SECRETARY Office by: (to) APPROVED Mike Groomer 6140 CITY COUNCIL Originating Department Head: A.Douglas Rademaker 6157 (from) JUL. 11 2000 PS46 531200 070460410180 $80,138.40 Additional Information Contact: City Secretary of the city of Fort Worth.Texas A.Douglas Rademaker 6157