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    6.    
Finance Committee
Meeting Date: 11/10/2020  
FROM: Bill Gallardo

Subject:
Amendment No. 3 to Professional Services Agreement with Parsons Transportation Group, Inc. for Construction Support Services for the SR-57 & Lambert Road Interchange Improvements, CIP 7251
RECOMMENDATION
Approve Amendment No. 3 to Professional Services Agreement with Parsons Transportation Group, Inc. in the amount of $368,150
BACKGROUND/DISCUSSION
The SR-57 and Lambert Road Interchange Improvement, Project 7251 (“Project”) has been programmed within the Capital Improvement Program ("CIP") for over 10 years.  The Project is adding a northbound loop on-ramp and realigning the northbound off-ramp; providing a separate bridge structure for the northbound loop on-ramp, widening the southbound on-ramp and bridge adjacent to the old railroad undercrossing; converting the southbound off-ramp to a two (2) lane exit and widening eastbound Lambert Road from State College to the southbound on-ramp; widening the existing SR-57 bridge; and widening westbound Lambert Road near Point Drive to the northbound on-ramp.
 
Original Contract ($3.42M)
On June 16, 2015, the City Council approved a Professional Services Agreement ("PSA") with Parsons Transportation Group, Inc. ("Parsons") to complete the Plans, Specifications, and Estimate Phase ("PS&E Phase") for the Project in the amount of $3,320,000, with a $100,000 contingency, for a total PSA amount of $3,420,000. The original scope of work for this PSA included completing the PS&E for the preferred project alternative. In December 2016, the 65% PS&E was completed for the preferred project alternative with some modifications to the design, which included additional widening of the existing Lambert Road bridge to accommodate a future Caltrans truck climbing lane. Soon thereafter, the Project was separated into four (4) phases due to construction funding constraints, with the focus on completing the PS&E Phase for the Phase 1 Project. Phase 1 Project construction would add the northbound loop on-ramp, realign northbound off-ramp, and modify the existing northbound on-ramp north of Lambert Road (East of SR-57). The PS&E for the Phase 1 Project was completed to 90% in late 2017.
 
Amendment No.1 ($2.15M)
In early 2018, with the award of SB1 funds for project construction, staff recommended completing the final PS&E for the entire project under an accelerated schedule to avoid the possibility of losing SB1 funding if a voter referendum was passed in November 2018. This required considerable additional work with very tight deadlines, and required additional resources. At the March 20, 2018 City Council meeting, Council approved Amendment No. 1 to the Parsons PSA for an additional not-to-exceed fee of $2.15 million. This amended fee would bring the total PSA for the Project to $5.57 million. In August of 2018, Parsons delivered the final PS&E for the entire project to Caltrans on time in order to request the allocation of funding from the California Transportation Commission (CTC) at their October 2018 meeting. At this meeting, the CTC allocated $65.7M to the City of Brea and Caltrans, whereby the Project was considered fully funded.
 
Amendment No.2 ($507,920)
The Project was advertised for bids in late November 2018. However, prior to advertisement, there were two outstanding design elements that required additional design services from Parsons.  The first involved the re-design of the soundwall along the southbound on-ramp to increase the height from 12 foot - 4 inches to 16 foot.  The second design change required the transparent glass within the soundwall at the El Torito Restaurant to be reduced by three feet, pursuant to the property owner’s request.  Both of these re-design items required an additional scope of work, which required a second Amendment to the PSA.  Furthermore, as part of the construction oversight requirements from Caltrans, Parsons, as the Engineer of Record, was required to be retained during this Phase to provide construction engineering support.  On November 26, 2018, Parsons provided a proposal for the soundwall re-design work ($207,920) and construction engineering support ($300,000) totaling to $507,920, which was reviewed by staff and incorporated as Amendment No. 2 to the PSA. 

Parsons estimated the construction support cost based on a 500-working day contract that was anticipated to start in April of 2019 with anticipated completion in March of 2021 without taking into consideration possible weather or construction delays.  City staff then conservatively estimated said delays and shared a completion date of December 2021 with the public at that time.  The City Council approved Amendment No. 2 on December 4, 2018.     
 
Amendment No.3 (368,150)
Caltrans awarded the construction contract to Security Paving, Inc. in April 2019 and actual construction started in August 2019.  As of November 2020, construction is considered 48% complete.  However, during the first year, there were several construction schedule impacts, including weather and COVID-19 delays that have now officially pushed the anticipated construction completion of the interchange improvements to December 31, 2021 as conceptually expected.    
 
All the aforementioned construction schedule impacts require extensions to the City and Caltrans construction inspection and design oversight responsibilities associated with the Project.  Therefore, in a proactive effort, the City staff coordinated with Parsons to request a proposal for the additional scope required to cover the extended construction duration.  Based on the request, Parsons responded with a proposal to cover the City-directed scope changes that were integral to the delivery of the Project (see Attachment A – Parsons Proposal).  Parsons’ proposal, in the amount of $368,150 (additional scope), was reviewed by staff and was considered reasonable to cover the remaining construction engineering support services as well as the City added scope to the anticipated completion of the Project.  This proposed scope change also includes the amended completion date for Parsons services to April of 2022, which allows them to complete the contract close-out responsibilities after the construction is completed in December 2021.
 
Therefore, attached is Amendment No. 3 to the PSA that amends the scope of work related to the construction engineering support services during construction pursuant to Parsons' proposal (see Attachment B - Amendment No. 3).  The City Attorney has reviewed Amendment No. 3 and approves as to form.  All work associated with the design scope within the original PSA, Amendment No. 1, and Amendment No. 2 has been completed.  Therefore, the only remaining task within this PSA is the construction engineering support services during construction.
SUMMARY/FISCAL IMPACT
The Project is currently in the second year of the construction phase and 48% complete as of November 2020.  However, due to various schedule impacts during the first year of construction, the project completion for the interchange improvements has been pushed out to December 31, 2021.  This extension of the construction duration, coupled with several City requests for added work associated with the Project, required the construction engineering support services with Parsons to be amended.  Parsons provided staff with a proposal to capture the additional services required.  Staff, with City Attorney’s consultation, prepared Amendment No. 3 to the Parsons PSA to reflect the proposed scope changes.  The Project is fully funded, and there are sufficient competitive Measure M2 funds and Traffic Impact Fees available for the proposed Amendment No. 3.  Therefore, there will be no impact to the General Fund and staff recommends the City Council consider approving Amendment No. 3.
RESPECTFULLY SUBMITTED
William Gallardo, City Manager
Prepared by:   Michael Ho, P.E., Deputy Director of Public Works / City Engineer
Concurrence:  Tony Olmos, P.E., Public Works Director
Attachments
Parsons Proposal
Amendment No. 3

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