REPORT TO THE CITY COUNCIL
January 14, 2016
FROM: SCOTT L. MOZIER, PE, Director
Public Works Department
SUBJECT
Title
Approve an agreement with Tutor Perini/Zachary/Parsons for City Plan Review and Construction Management Services as related to the High Speed Rail Project for a lump sum of $1,900,000, in substantially the form presented (Council Districts 1, 2 and 3).
Body
RECOMMENDATION
Staff recommends the City Council approve an agreement with Tutor Perini/Zachary/Parsons (TPZP) for City Plan Review and Construction Management Services as related to the High Speed Rail Project for a lump sum compensation of $1,900,000, in substantially the form presented, subject to approval as to form by the City Attorney’s Office; and authorize the City Manager or his designee to sign the agreement on behalf of the City of Fresno.
EXECUTIVE SUMMARY
The California High Speed Rail Authority (CHSRA) selected TPZP, a joint venture, to be the Design-Build Contractor for Contract Package One (CP1) within the City of Fresno. CP1 encompasses all of the structures, grade separations and relocation of City infrastructure that is required for construction of the high-speed rail corridor through Fresno, including streets, traffic signals, lighting, sewer, water and fiber optic facilities. TPZP is responsible for the engineering and construction of these new or modified City facilities. The City’s role is to review and approve the construction drawings for City infrastructure, issue permits and ensure the facilities are properly inspected prior to City acceptance of the new or modified infrastructure.
Staff has negotiated a lump sum compensation with TPZP for the amount of $1,900,000, which staff anticipates will cover the cost of the engineering plan reviews for Public Works and Public Utilities staff, as well as the cost of providing construction oversight. Rather than utilize the City’s Master Fee Schedule, which provides cost recovery for services provided to new private developments, TPZP has negotiated a lump sum agreement with City staff which both recognizes the unique nature of the project and streamlines the permitting and construction process within the City of Fresno. The proposed lump sum includes funding for two City senior engineering inspectors.
BACKGROUND
The CHSRA has awarded TPZP the Design-Build CP1 contract in Fresno, which extends from north of the San Joaquin River to beyond American Avenue in the south. Under the Design-Build delivery method, the Contractor is responsible for both the engineering design and the actual construction. The CHSRA has also made TPZP responsible for day-to-day construction inspections and a self-certification that all of the improvements have been constructed in accordance with the approved plans and specifications. Within the City of Fresno, the CP1 high speed rail contract includes a dozen railroad grade separation projects where the street will be rebuilt as either an overpass or underpass, several miles of a relocated Golden State Boulevard, miles of rerouted sewer and water mains, more than 30 traffic signal installations or modifications and all associated facilities such as street lighting, curbs, gutters, sidewalks and landscaping.
To date, TPZP has been paying for City plan review and inspection services under the City’s Master Fee Schedule (MFS) as adopted by the Council. Due to the large number of construction packages, this creates a considerable administrative effort for both parties. In that the City of Fresno, like the vast majority of California cities, utilizes a percentage of the construction cost as the basis for the plan review and inspection fees, this has also resulted in continual discussions concerning the calculation of the permit fees. The MFS is also based upon City inspection of all infrastructure being constructed, not recognizing the role of TPZP’s day-to-day inspection and certification.
The proposed lump sum agreement strives to provide a proper balance, including full City engineering plan review and approval, as well as a construction oversight role for two City senior engineering inspectors. Electrical inspections and traffic signal controller testing will follow the traditional process under the agreement due to the sensitive nature of these facilities. Not covered under the lump sum agreement are wet ties to the City water system and review of traffic control plans which will be handled separately. The agreement also provides for an ongoing monitoring on a quarterly basis of actual versus projected costs and a reopener of the agreement in the event that the level of City staff effort is projected to exceed the amount of the lump sum compensation.
The Plan Review and Construction Management Services Agreement will be reviewed as to form by the City Attorney’s Office prior to execution by the City Manager.
ENVIRONMENTAL FINDINGS
The plan review and construction management services for this agreement fall under the environmental clearance of the CHSRA projects from Merced to Fresno and from Fresno to Bakersfield. No new environmental findings are required for this agreement.
LOCAL PREFERENCE
Not applicable because this is not a competitive bid award.
FISCAL IMPACT
There will be no impact to the General Fund or any City operating funds associated with the recommended action. The agreement intends for the lump sum of $1,900,000, to be deposited with the City by TPZP, to cover all reasonable City costs associated with the plan review and construction management for the CP1 contract.
Attachment:
Agreement