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CR 97-130 Engineering Change Order 11th Ave SCouncil Report 97 -130 Proposed Action. Staff recommends adoption of the following motion: Move that Council authorize an additional $25,169 in fees for engineering services provided by Short, Elliott, Hendrickson. Inc. (SEH) on the 11 Avenue South Reconstruction, Project #96 -16. Overview. Additional engineering fees are required due to the increase in project scope and to allow for increased construction inspection. The originally proposed engineering services fee of $45,000 was submitted by SEH based on a smaller, less complex project than was actually designed and is now being constructed. State Aid requirements led to the addition of a storm sewer system, revised street grades just north of 5 Street South to meet vertical curve standards and more extensive asphalt pavement design to meet strength requirements. As a result, the project length expanded to encompass a portion of 5 Street South and further south on 11 Avenue South. What was originally thought to be a fairly straight - forward street widening, milling and overlay project became a much more complex improvement to design and construct. Also, the length of construction time necessary to complete the work increased significantly. Accordingly, additional inspection time must be budgeted. Primary Issues to Consider. Justification for Increased Fees Staff Recommendation Supporting Information S .s Letter 1 Y Steven J. Stadler, Public Works Director 0 Consider Engineering Services Fee Change Order 1 1th Avenue South Reconstruction June 25, 1997 Council Report 97 -130 Page 2 Justification for Increased Fees The design/construction services contract requires the consultant to perform design and construction services at a not -to- exceed cost of $45,000 provided the project scope is not increased. On the 11t Avenue project, we felt that the scope of the project was pretty straightforward so we solicited design proposals to include not -to- exceed total engineering services fees. This is in contrast to the process used on the 1s Street North reconstruction project. On the 1 Street North project we were unsure of the final scope of the project, so we solicited proposals to include preliminary engineering fees only. The final design and construction fees were then negotiated after completion and acceptance of the feasibility report. The final design for 11 Avenue results in a better project in many respects. However, the project scope did change significantly from the scope envisioned when we solicited design proposals. Typically, if a project scope increases, the consultant's level of effort must also increase in at least two areas. First, additional design time is needed for the new project features. Secondly, the amount of construction inspection time is increased as the project is under construction for a longer period of time. On this project, several new items were added resulting in a need for additional design time and construction field staking effort. These items included a storm sewer system (construction cost = $73,097), new vertical curve alignment, new horizontal alignment (to eliminate the need for retaining wall and allow room for the multi - purpose trail under the railroad bridge) and work on easements for Reuter Manufacturing and Dealer Automotive Services. The design and construction staking fees for this additional work are $12,413. The original construction inspection budget was 127 hours - $8,157. The increased storm sewer and pavement work necessitates an increase to 300 hours of construction inspection - $20,116. The City will only pay for the actual amount of inspection service performed, but the $20,116 is a more realistic figure based on the anticipated construction time. The Public Works Director has reviewed the current design as compared to the original project scope. The additional work and complexity of the project warrant the increased fees. Council Report 97 -130 Page 3 If approved, the new engineering services fees amount to 19% of the construction cost. This is reasonable and well below the maximum 25% allowed by State Aid. Staff Recommendation The additional $25,169 fee request is fair and reasonable. Half of this additional fee is to ensure sufficient budget for construction inspection services. Staff recommends City Council authorize increasing the design and construction services budget from $45,000 to $70,169. June 26, 1997 Steve Stadler Director of Public Works City of Hopkins 11100 Excelsior Boulevard Hopkins, Minnesota 55343 Dear Steve: 5909 BAKER ROAD, SUITE 590, MINNETONKA, MN 55345 612 912 -2600 FAX 612 931-1188 ARCHITECTURE • ENGINEERING • ENVIRONMENTAL • TRANSPORTATION RE: Hopkins, Minnesota 1 lth Avenue South Reconstruction Engineering Fee City Project No. 96 -16 SAP No. 132 - 346 -15 SEH No. A- HOPKN9703.00 14.00 You and I have had several discussions regarding additional engineering fees for this project. The purpose of this letter is to document the extra fees for the extra services with which you concur. During preparation of our proposal, we reviewed with you your intent for this project. Information you had available basically came from your capital improvements program because a feasibility study for the project had not yet been completed. Information available to you indicated: • The existing pavement structure would be adequate. • The street would need to be widened to approximately 52 feet and then overlaid for rideability reasons. ✓ The limits of the project were generally from the Hennepin County Regional Rail Authority trail southerly to 5th Street South. Hennepin County had already designed improvements to 11 th Avenue South that extended southerly of the trail, so that the total length of improvement from the southerly end of their project to the north curb of 5th Street South was approximately 575 feet. • The additional width of improvements should occur mostly on the east side of the street due to the agreement with R.L. Johnson for acquisition of the property. ✓ Only minor adjustments would be necessary to the city -owned utilities. ✓ A key component of the project was to work toward coordination of the project schedule with Hennepin County's reconstruction of 1 lth Avenue South from the trail northerly to County Road 3. During preliminary design the actual scope of the construction project was determined. ✓ The initial alignment arrived at during preliminary design was consistent with the intent of the project. It tied in to the east curb on the north side of the intersection of 5th Street South. Due to the estimated costs of a retaining wall and the future expense to extend the recreational trail under the railroad, it was decided to shift the alignment of 11th Avenue South farther to the west. ✓ This new alignment resulted in an easement impact on a third property. SHORT ELLIOTT HENDRICKSON INC. ST PAUL, MN ST. CLOUD, MN CHIPPEWA FALLS, WI EQUAL OPPORTUNITY EMPLOYER MADISON, WI LAKE COUNTY, IN Steve Stadler June 26, 1997 Page 2 ♦ Reconstruction of 11 t Avenue South was extended southerly through the intersection of 5th Street South and under the railroad bridge to accommodate a trail under the bridge with this project. The project length increased from 575 feet to 900 feet. ♦ The alignment shift at 5th Street South created the need to remove and replace all of the existing storm sewer structures in the intersection. The existing storm sewer on the east side of the street southerly under the railroad bridge to the creek is corrugated metal pipe. Staff made the decision to replace that pipe within the project limits with concrete pipe as that corrugated metal pipe is already 30 years old. It was found to be necessary to extend the storm sewer much farther to the north than originally constructed in this street to keep the outside lanes driveable during a design storm. Additional engineering fees associated with the changes in the final design effort total $9,173. During construction, our costs will also increase for some of the same reasons: ♦ The total length of the project has increased. ♦ Instead of a two -step paving operation, there will be a four -step paving operation — widening/patching, complete width leveling course, complete width binder course, and wearing course. ♦ A complete new storm sewer system will need to be staked and inspected. Storm sewer structure shop drawings will be much more extensive than initially anticipated. Based on the project as bid and the contractor's construction schedule, we propose a new budget for construction services which is $15,996 greater than the original budget. It is based upon the contractor completing all but the traffic signal pole and arm installation within the 60 -day substantial completion period. Should the contractor exceed the substantial completion date, the number of hours for the senior technician would likely rise. The remainder of the hours in the construction services budget remain largely unchanged. We propose that the engineering fee limit for work on this project be increased by $25,169. We would be happy to review this proposal with you further at your convenience. Sincerely, amiel R. Box d, P. Project Manager ymb E:\WORDPROC\HOPKN703 \BOXRUD\ENGRFEE. WPD