DATE: December 17, 2024
TO: Board of Supervisors
SUBMITTED BY: Steven E. White, Director
Department of Public Works and Planning
SUBJECT: Amendment No. 5 to Agreement with Kitchell Capital Expenditure Managers, Inc. Construction Management
RECOMMENDED ACTION(S):
TITLE
Approve and authorize Chairman to execute Amendment No. 5 to an Agreement with Kitchell CEM, Inc., for construction management services for the West Annex Jail, currently under construction, effective upon execution with no change in term of January 1, 2024 through December 31, 2024, and increasing the maximum extra services allocation by an additional $505,000 to $3,813,923, which will increase the total maximum compensation amount to $7,537,775.
REPORT
The recommended action will increase the maximum amount of extra services compensation to $3,813,923 in order to accommodate an extension to the currently estimated schedule for completion of the West Annex Jail (WAJ) construction, and provide adequate compensation for constructability reviews, inspection services, and construction management through project completion, and project retention. The WAJ is located in District 3, and the impact is countywide.
ALTERNATIVE ACTION(S):
If the recommended action is not approved, the contract will lack sufficient funding to pay for construction management consultant services throughout the remainder of the construction and post-construction phases, and the BSCC audit of the WAJ project.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended action. Sufficient appropriations are included in Department of Public Works and Planning West Annex Jail Orgs 8845 (State SB 1022), 8846 (Leasehold Improvements), FY 2024-25 Adopted Budget. The approval of the recommended action will increase the Kitchell contract by $505,000, bringing the total of the contract to $7,537,775. Construction management services are eligible for State Reimbursement SB 1022 grant funds at a rate of ninety percent (90%), and are matched with a portion from County funding, at a rate of ten percent (10%).
DISCUSSION:
On December 16, 2014, the Board approved consultant agreement #14-736 with Kitchell CEM, Inc. (Kitchell), to provide construction and project management services for the WAJ project, from conceptual design through project completion and post-construction phases.
Ongoing construction of the WAJ has extended past the originally scheduled completion date. Agreement #14-736 was amended on August 4, 2020, increasing the extra services allocation by $579,739, in order to provide construction management staff for an additional 29-week extension of the construction schedule, through January 18, 2021. Agreement #14-736 was again amended on May 25, 2021, due to additional delays in project construction, increasing the extra services allocation by $1,039,532 for an additional 52-week extension of the construction schedule. On April 19, 2022, the Agreement was amended a third time (Agmt. No. A-22-160) for an additional 28 weeks to the construction schedule, increasing the extra services by $539,757, bringing the total contract amount to $6,959,275. On May 5, 2024, the Agreement was amended a fourth time (Agmt. No. A-24-237) for an additional 17.5 weeks to the construction schedule, increasing the extra services by $73,500, bringing the total contract amount to $7,032,775.
The recommended action would increase the maximum extra services compensation of $505,000, which is the amount needed to cover an additional 13 weeks of construction management services (from October 1, 2024 through December 31, 2024), based upon the “average per week fee” listed in Exhibit F-1 to the proposed Amendment No. 5. The actual amount of compensation paid, however, will continue to be governed by the invoices submitted by Kitchell based on the rates listed in Exhibit A (and subject to any adjustments in the interim pursuant to Paragraph V.A.2) of the original Agreement.
As of the date of preparation of this Agenda Item, project completion currently stands at approximately 99% and while the Certificate of Occupancy (COO) was issued by the Office of State Fire Marshal (OSFM) on November 14, 2024, thus allowing Sheriff personnel to occupy and ultimately fully operate the facility, there are some remaining items that need to be completed in order for the County to issue a Notice of Completion.
Kitchell will continue to provide quality project management communication and responsiveness to the County. The construction management services provided by Kitchell on the project to date have minimized the construction delays to the extent reasonably possible, and those services will continue to be needed until Bernards has fully performed its construction contract and the Notice of Completion has been filed.
REFERENCE MATERIAL:
BAI #51, May 5, 2024
BAI #44, April 19, 2022
BAI #56, May 25, 2021
BAI #50, August 4, 2020
BAI #48, December 16, 2014
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with Clerk - Amendment No. 5 to Agreement with Kitchell CEM, Inc.
CAO ANALYST:
Salvador Espino