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HomeMy WebLinkAboutC-3838 - Construction Management Services for Newport Coast Community Center and Santa Ana Heights Fire Station and Training Facility (see also C-3626 & C-3710)0 0 c - *4 AMENDMENT NO. 1 TO PROFESSIONAL SERVICES AGREEMENT WITH GKK WORKS FOR CONSTRUCTION MANAGEMENT SERVICES FOR NEWPORT COAST COMMUNITY CENTER AND SANTA ANA HEIGHTS FIRE STATION AND TRAINING TOWER THIS AMENDMENT NO. 1 T PROFESSIONAL SERVICES AGREEMEN�; entered into this 1M day of , 2007, by and between the CITY OF NEWPORT BEACH, a municipal corporation, (hereinafter referred to as "City ") and GKK Works, a California corporation, whose address is 2355 Main Street, Suite 220, Irvine, CA 92614, (hereinafter referred to as "Consultant"), and is made with reference to the following: RECITALS A. On May 9, 2006, , CITY and CONSULTANT entered into a Professional Services Agreement, hereinafter referred to as "Agreement ", for construction management services for Newport Coast Community Center and Santa Ana Heights Fire Station and Training Facility, hereinafter referred to as "Project ". This Agreement is scheduled to expire on December 31, 2007. B. Completion of Fire Station and Training Facility portions of Project is extending beyond their originally - scheduled dates of completion, thus necessitating the need for additional construction management services. C. City desires to enter into this Amendment No. 1 to extend construction management services for Fire Station and Training Facility portions of Project. D. City desires to compensate Consultant for additional construction management services needed to complete the Project. E. City and Consultant mutually desire to amend Agreement, hereinafter referred to as "Amendment No.1 ", as provided here below. NOW, THEREFORE, the parties hereto agree as follows: 1. Consultant shall be compensated for services performed pursuant Jo this Amendment No.1 according to "Exhibit A" dated July 26, 2007, attached hereto. 0 0 2.-- The term of the agreement shall be extended to October 5, 2007. 3. Total additional compensation to Consultant for services performed pursuant to this Amendment No. 1, for all work performed in accordance with this Amendment, including all reimbursable items and sub consultant fees, shall not exceed Forty Five Thousand Seven Hundred Eighty Dollars ($45,780.00). 4. Except as expressly modified herein, all other provisions, terms, and covenants set forth in Agreement shall remain unchanged and shall be in full force and effect. IN WITNESS WHEREOF, the parties hereto have executed this Amendment No. 1 on the date first above written. APPROVED AS TO FORM: A,,, C ,,-1 Aaron Harp Assistant City Attorney ATTEST: LaVonne Harkless, City Clerk CITY OF NEWPORT BEACH, A Municipal Corporation By: .w r�-- . UN � for the City of Newport Beach GKK Works: By. C,. 01 .vvi.16l (Co r rate Officer) Title: Print Name: By:A.AM4 " ( inanc al Officer) Title: «a Print Name: Attachments: Exhibit A — Scope of Services & Billing Rates 0 :Ikkwork.c. 2355 Main Street I Suite 220 1 IRVINE I CA 92614 949 250 1500 1949 9551662 FAX I www.gkkworks.com July 26, 2007 Lloyd Dalton, P.E. Design Engineer Public Works Department 3300 Newport Blvd. Newport Beach, CA 92658 Re: City of Newport Beach Santa Ana Heights Fire Station Dear Lloyd: 0 We hereby request that our contract be increased in the amount of t45.780.00 for the following change: Provide Construction Management Services for the completion of the Santa Ana Heights Fire Station and the construction of the new fire training tower. $15,260.00 required for completion of the fire station. $30,520.00 required for completion of the training tower. — �}� 0 Totals include construction management and administrative assis{ant services. Attached is a breakdown of costs for your review. We are also requesting that our contract completion date be changed to October 5, 2007. If you are in agreement, please sign below and return one (1) copy to us for our files and use. Should you have any questions, please feel free to contact us. Lloyd Dalton Date Very truly yours, gkkworks Eric Stones Assistant Project Manager Cc: Mark Brown — gkkworks File City of Newprt Fire Station Added Management Services - Training Tower 2007 Aug Set lOct INOV Scope of Work per Phase Constructibility Review Project Award Submittals 16 16 Job Site Meetings 16 16 4 Site Management 100 1100 32 Schedule 8 8 Construction Reports 4 4 4 Requests for Information 16 16 Change Orders Utilities Payment Requests (Payment Applications) Project Close-Out/Occupancy/Move In ADD SERVCIES Hourly Rate Total Hours Total Cost Position Individual Project Mana er Eric Stones $125.00 360 $45,000.00 160 160 40 0 Construction Manager 0 $0.00 0 0 0 0 Construction Manager 0 $0.00 0 0 0 0 General Superintendent 0 $0.00 0 0 0 0 Administrative Assistant Ale'andra Sam ablo $65.00 12 $780.00 4 4 4 0 ADD SERVICES SUBTOTAL $45,780.00 Comments Contract extension through October 5, 2007 0 I* W. • 0 C,V PROFESSIONAL SERVICES AGREEMENT WITH GKK WORKS FOR CONSTRUCTION MANAGEMENT SERVICES FOR THE NEWPORT COAST COMMUNITY CENTER AND SANTA ANA HEIGHTS FIRE STATION AND TRAINING FACILITY THIS AGREEMENT is made and entered into as of this day of May 2006, by and between the CITY OF NEWPORT BEACH, a Municipal Corporation ( "City "), and GKK Works, a California corporation whose address is 20411 SW Birch Street, Suite 300, Newport Beach, California, 92660 ( "Consultant"), and is made with reference to the following: RECITALS A. City is a municipal corporation duly organized and validly existing under the laws of the State of California with the power to carry on its business as it is now being conducted under the statutes of the State of California and the Charter of City. B. City desires to retain construction management services for Newport Coast Community Center and Santa Ana Heights Fire Station and Training Facility. C. City desires to engage Consultant to provide such construction management services ( "Project "). D. Consultant possesses the skill, experience, ability, background, certification and knowledge to provide the services described in this Agreement. E. The principal member of Consultant for purposes of Project, shall be Charles Merrick, Vice President. F. City has solicited and received a proposal from Consultant, has reviewed the previous experience and evaluated the expertise of Consultant, and desires to retain Consultant to render professional services under the terms and conditions set forth in this Agreement. NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows: 1. TERM The term of this Agreement shall commence on the above written date, and shall terminate on the 30th day of December, 2007, unless terminated earlier as set forth herein. 0 0 2. SERVICES TO BE PERFORMED Consultant shall diligently perform all the services described in the Scope of Services, dated April 14, 2006 and attached hereto as Exhibit A and incorporated herein by reference. The City may elect to delete certain tasks of the Scope of Services at its sole discretion. 3. TIME OF PERFORMANCE Time is of the essence in the performance of services under this Agreement and the services shall be performed to completion in a diligent and timely manner. The failure by Consultant to perform the services in a diligent and timely manner may result in termination of this Agreement by City. Notwithstanding the foregoing, Consultant shall not be responsible for delays due to causes beyond Consultant's reasonable control. However, in the case of any such delay in the services to be provided for the Project, each party hereby agrees to provide notice to the other party so that all delays can. be addressed. 3.1 Consultant shall submit all requests for extensions of time for performance in writing to the Project Administrator not later than ten (10) calendar days after the start of the condition that purportedly causes a delay. The Project Administrator shall review all such requests and may grant reasonable time extensions for unforeseeable delays that are beyond Consultant's control. 3.2 For all time periods not specifically set forth herein, Consultant shall respond in the most expedient and appropriate manner under the circumstances, by either telephone, fax, hand - delivery, or mail. 4. COMPENSATION TO CONSULTANT City shall pay Consultant for the services on a time and expense not -to- exceed basis in accordance with the provisions of this Section and the Schedule of Hourly rates attached hereto as Exhibit B and incorporated herein by reference. Consultant's compensation for all work performed in accordance with this Agreement, including all reimbursable items and subconsultant fees to complete Construction Management Services for the Newport Coast Community Center and the Santa Ana Heights Fire Station and Training Facility, shall not exceed Five Hundred Thirty -Nine Thousand, One Hundred Eleven and 001100 Dollars ($539,111.00) without additional prior written authorization from City. No hourly rate changes shall be made during the term of this Agreement without the prior written approval of City. Consultant understands and agrees that the City has not awarded the contract for the construction of the Santa Ana Heights Fire Station and Training Facility and that Consultant shall not perform any work related to the Santa Ana Heights Station and Training Facility 2 i • until Consultant receives written authorization from the City. The City shall have forty -five (45) calendar days from the date of this agreement to issue a notice to proceed regarding Construction Management Services related to the Santa Ana Heights Fire Station and Training Facility. If said Notice to Proceed is not issued within the forty -five (45) calendar day time period, the Construction Management Services to provided related to the Santa Ana Heights Fire Station and Training Facility shall be deleted from this Agreement and the total not to exceed amount for providing Construction Management Services under this agreement shall be reduced from Five Hundred Thirty -Nine Thousand, One Hundred Eleven and 00/100 Dollars ($539,111.00) to Three Hundred Seventy -Four Thousand, Three Hundred Thirty -Four and 001100 ($374,334.00). 4.1 Consultant shall submit monthly invoices to City describing the work performed the preceding month. Consultant's bills shall include the name of the person who performed the work, a brief description of the services performed and/or the specific task in the Scope of Services to which it relates, the date the services were performed, the number of hours spent on all work billed on an hourly basis, and a description of any reimbursable expenditures. City shall pay Consultant no later than thirty (30) days after approval of the monthly invoice by City staff. 4.2 City shall reimburse Consultant only for those costs or expenses specifically approved in this Agreement, or specifically approved in writing in advance by City. Unless otherwise approved, such costs shall be limited and include nothing more than the following costs incurred by Consultant: A. The actual costs of subconsultants for performance of any of the services that Consultant agrees to render pursuant to this Agreement, which have been approved in advance by City and awarded in accordance with this Agreement. B. Approved reproduction charges. C. Actual costs and /or other costs and/or payments specifically authorized in advance in writing and incurred by Consultant in the performance of this Agreement. 4.3 Consultant shall not receive any compensation for Extra Work performed without the prior written authorization of City. As used herein, "Extra Work" means any work that is determined by City to be necessary for the proper completion of the Project, but which is not included within the Scope of Services and which the parties did not reasonably anticipate would be necessary at the execution of this Agreement. Compensation 3 5. PROJECT MANAGER Consultant shall designate a Project Manager, who shall coordinate all phases of the Project. This Project Manager shall be available to City at all reasonable times during the Agreement term. Consultant has designated Jerry Fuentes to be its Project Manager. Consultant shall not remove or reassign the Project Manager or any personnel listed in Exhibit A or assign any new or replacement personnel to the Project without the prior written consent of City. City's approval shall not be unreasonably withheld with respect to the removal or assignment of non -key personnel. Consultant, at the sole discretion of City, shall remove from the Project any of its personnel assigned to the performance of services upon written request of City. Consultant warrants that it will continuously furnish the necessary personnel to complete the Project on a timely basis as contemplated by this Agreement. The Project Manager and any other assigned staff shall be equipped with a Nextel Plus type cellularldirect connect unit to communicate with City staff. Consultant's Nextel Direct Connect I.D. number will be provided to City to be programmed into City Nextel units, and vice versa. 6. ADMINISTRATION This Agreement will be administered by the Public Works Department. Lloyd Dalton, PE, shall be the Project Administrator and shall have the authority to act for City under this Agreement. The Project Administrator or his authorized representative shall represent City in all matters pertaining to the services to be rendered pursuant to this Agreement. 7. CITY'S RESPONSIBILITIES In order to assist Consultant in the execution of its responsibilities under this Agreement, City agrees to, where applicable: A. Provide access to, and upon request of Consultant, one copy of all existing relevant information on file at City. City will provide all such materials in a timely manner so as not to cause delays in Consultant's work schedule. B. Provide blueprinting and other services through City's reproduction company for bid documents. Consultant will be required to coordinate the required bid documents with City's reproduction company. All other reproduction will be the responsibility of Consultant and as defined above. C. Provide usable life of facilities criteria and information with regards to new facilities or facilities to be rehabilitated. M 0 0 8. STANDARD OF CARE 8.1 All of the services shall be performed by Consultant or under Consultant's supervision. Consultant represents that it possesses the professional and technical personnel required to perform the services required by this Agreement, and that it will perform all services in a manner commensurate with community professional standards. All services shall be performed by qualified and experienced personnel who are not employed by City, nor have any contractual relationship with City. 8.2 Consultant represents and warrants to City that it has or shall obtain all licenses, permits, qualifications, insurance and approvals of whatsoever nature that are legally required of Consultant to practice its profession. Consultant further represents and warrants to City that Consultant shall, at its sole cost and expense, keep in effect or obtain at all times during the term of this Agreement, any and all licenses, permits, insurance and other approvals that are legally required of Consultant to practice its profession. Consultant shall maintain a City of Newport Beach business license during the term of this Agreement. 8.3 Consultant shall not be responsible for delay, nor shall Consultant be responsible for damages or be in default or deemed to be in default by reason of strikes, lockouts, accidents, or acts of God, or the failure of City to furnish timely information or to approve or disapprove Consultant's work promptly, or delay or faulty performance by City, contractors, or governmental agencies. 8.4 The term Construction Management or Construction Manager does not imply that Consultant is engaged in any aspect of the physical work of construction contracting. Consultant shall not have control over or be in charge of and shall not be responsible for the project's design, City's project contractor ( "Contractor"), construction means, methods, techniques, sequences or procedures, or for any health or safety precautions and programs in connection with the work. These duties are and shall remain the sole responsibility of the Contractor. Consultant shall not be responsible for the Contractors' schedules or failure to carry out the work in accordance with the contract documents. Consultant shall not have control over or be responsible for acts or omissions of City, Design Engineer, Contractor, Subcontractors, or their Agents or employees, or of any other persons performing portions of the work. 9. HOLD HARMLESS To the fullest extent permitted by law, Consultant shall indemnify, defend and hold harmless City, its City Council, boards and commissions, officers, agents and employees (collectively, the "Indemnified Parties') from and against any and 5 0 0 all claims (including, without limitation, claims for bodily injury, death or damage to property), demands, obligations, damages, actions, causes of action, suits, losses, judgments, fines, penalties, liabilities, costs and expenses (including, without limitation, attorney's fees, disbursements and court costs) of every kind and nature whatsoever (individually, a Claim; collectively, "Claims "), which may arise from or in any manner relate (directly or indirectly) to any work performed or services provided under this Agreement (including, without limitation, defects in workmanship or materials and /or design defects [if the design originated with Consultant]) or Consultant's presence or activities conducted on the Project (including the negligent and /or willful acts, errors and /or omissions of Consultant, its principals, officers, agents, employees, vendors, suppliers, consultants, subcontractors, anyone employed directly or indirectly by any of them or for whose acts they may be liable or any or all of them). Notwithstanding the foregoing, nothing herein shall be construed to require Consultant to indemnify the Indemnified Parties from any Claim arising from the sole negligence or willful misconduct of the Indemnified Parties. Nothing in this indemnity shall be construed as authorizing any award of attorney's fees in any action on or to enforce the terms of this Agreement. This indemnity shall apply to all claims and liability regardless of whether any insurance policies are applicable. The policy limits do not act as a limitation upon the amount of indemnification to be provided by the Consultant. 10. INDEPENDENT CONTRACTOR It is understood that City retains Consultant on an independent contractor basis and Consultant is not an agent or employee of City. The manner and means of conducting the work are under the control of Consultant, except to the extent they are limited by statute, rule or regulation and the expressed terms of this Agreement. Nothing in this Agreement shall be deemed to constitute approval for Consultant or any of Consultant's employees or agents, to be the agents or employees of City. Consultant shall have the responsibility for and control over the means of performing the work, provided that Consultant is in compliance with the terms of this Agreement. Anything in this Agreement that may appear to give City the right to direct Consultant as to the details of the performance or to exercise a measure of control over Consultant shall mean only that Consultant shall follow the desires of City with respect to the results of the services. 11. COOPERATION Consultant agrees to work closely and cooperate fully with City's designated Project Administrator and any other agencies that may have jurisdiction or interest in the work to be performed. City agrees to cooperate with the Consultant on the Project. 0 0 0 12. CITY POLICY Consultant shall discuss and review all matters relating to policy and Project direction with City's Project Administrator in advance of all critical decision points in order to ensure the Project proceeds in a manner consistent with City goals and policies. 13. PROGRESS Consultant is responsible for keeping the Project Administrator and/or his /her duly authorized designee informed on a regular basis regarding the status and progress of the Project, activities performed and planned, and any meetings that have been scheduled or are desired. 14. INSURANCE Without limiting Consultant's. indemnification of City, and prior to commencement of work. Consultant shall obtain, provide and maintain at its own expense during the term of this Agreement, a policy or policies of liability insurance of the type and amounts described below and in a form satisfactory to City. A. Certificates of Insurance. Consultant shall provide certificates of insurance with original endorsements to City as evidence of the insurance coverage required herein. Insurance certificates must be approved by City's Risk Manager prior to commencement of performance or issuance of any pen-nit. Current certification of insurance shall be kept on file with City's at all times during the term of this Agreement. B. Signature. A person authorized by the insurer to bind coverage on its behalf shall sign certification of all required policies. C. Acceptable Insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance in the State of California, with an assigned policyholders' Rating of A (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best's Key Rating Guide, unless otherwise approved by the City's Risk Manager. D. Coverage Requirements. Workers' Compensation Coverage. Consultant shall maintain Workers' Compensation Insurance and Employer's Liability Insurance for his or her employees in accordance with the laws of the State of California. In addition, Consultant shall require each subcontractor to similarly maintain Workers' Compensation tl 0 0 Insurance and Employer's Liability Insurance in accordance with the laws of the State of California for all of the subcontractor's employees. Any notice of cancellation or non - renewal of all Workers' Compensation policies must be received by City at least thirty (30) calendar days prior to such change (10 day written notice for nonpayment of premium). The insurer shall agree to waive all rights of subrogation against City, its officers, agents, employees and volunteers for losses arising from work performed by Consultant for City. ii. General Liability Coverage. Consultant shall maintain commercial general liability insurance in an amount not less than one million dollars ($1,000,000) per occurrence for bodily injury, personal injury, and property damage, including without limitation, contractual liability. If commercial general liability insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the work to be performed under this Agreement, or the general aggregate limit shall be at least twice the required occurrence limit. iii. Automobile Liability Coveraae. Consultant shall maintain automobile insurance covering bodily injury and property damage for all activities of the Consultant arising out of or in connection with work to be performed under this Agreement, including coverage for any owned, hired, non -owned or rented vehicles, in an amount not less than one million dollars ($1,000,000) combined single limit for each occurrence. iv. Professional Errors and Omissions Insurance. Consultant shall maintain professional errors and omissions insurance, which covers the services to be performed in connection with this Agreement in the minimum amount of one million dollars ($1,000,000). E. Endorsements. Each general liability and automobile liability insurance policy shall be endorsed with the following specific language: i. The City, its elected or appointed officers, officials, employees, agents and volunteers are to be covered as additional insureds with respect to liability arising out of work performed by or on behalf of the Consultant. ii. This policy shall be considered primary insurance as respects to City, its elected or appointed officers, officials, employees, agents and volunteers as respects to all claims, losses, or liability arising directly or indirectly from the Consultant's operations or services L 0 0 provided to City. Any insurance maintained by City, including any self- insured retention City may have, shall be considered excess insurance only and not contributory with the insurance provided hereunder. iii. This insurance shall act for each insured and additional insured as though a separate policy had been written for each, except with respect to the limits of liability of the insuring company. iv. The insurer waives all rights of subrogation against City, its elected or appointed officers, officials, employees, agents and volunteers. V. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to City, its elected or appointed officers, officials, employees, agents or volunteers. vi. The insurance provided by this policy shall not be suspended, voided, canceled, or reduced in coverage or in limits, by either party except after thirty (30) calendar days written notice has been received by City (10 day written notice for nonpayment of premium). F. Timely Notice of Claims. Consultant shall give City prompt and timely notice of claim made or suit instituted arising out of or resulting from Consultant's performance under this Agreement. G. Additional Insurance. Consultant shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the work. 15. PROHIBITION AGAINST ASSIGNMENTS AND TRANSFERS Except as specifically authorized under this Agreement, the services to be provided under this Agreement shall not be assigned, transferred contracted or subcontracted out without the prior written approval of City. Any of the following shall be construed as an assignment: The sale, assignment, transfer or other disposition of any of the issued and outstanding capital stock of Consultant, or of the interest of any general partner or joint venturer or syndicate member or cotenant if Consultant is a partnership or joint- venture or syndicate or cotenancy, which shall result in changing the control of Consultant. Control means fifty percent (50 %) or more of the voting power, or twenty -five percent (25 %) or more of the assets of the corporation, partnership or joint- venture. 0 0 0 16. SUBCONTRACTING The parties recognize that a substantial inducement to City for entering into this Agreement is the professional reputation, experience and competence of Consultant. Assignments of any or all rights, duties or obligations of the Consultant under this Agreement will be permitted only with the express written consent of City. Consultant shall not subcontract any portion of the work to be performed under this Agreement without the prior written authorization of City. 17. OWNERSHIP OF DOCUMENTS Each and every report, draft, map, record, plan, document and other writing produced (hereinafter "Documents "), prepared or caused to be prepared by Consultant, its officers, employees, agents and subcontractors, in the course of implementing this Agreement, shall become the exclusive property of City, and City shall have the sole right to use such materials in its discretion without further compensation to Consultant or any other party. Consultant shall, at Consultant's expense, provide such Documents to City upon prior written request. Documents, including drawings and specifications, prepared by Consultant pursuant to this Agreement are not intended or represented to be suitable for reuse by City or others on any other project. Any use of completed Documents for other projects and any use of incomplete Documents without specific written authorization from Consultant will be at City's sole risk and without liability to Consultant. Further, any and all liability arising out of changes made to Consultant's deliverables under this Agreement by City or persons other than Consultant is waived against Consultant and City assumes full responsibility for such changes unless City has given Consultant prior notice and has received from Consultant written consent for such changes. 18. COMPUTER DELIVERABLES CADD data delivered to City shall include the professional stamp of the engineer or architect in charge of or responsible for the work. City agrees that Consultant shall not be liable for claims, liabilities or losses arising out of, or connected with (a) the modification or misuse by City, or anyone authorized by City, of CADD data; (b) the decline of accuracy or readability of CADD data due to inappropriate storage conditions or duration; or (c) any use by City, or anyone authorized by City, of CADD data for additions to this Project, for the completion of this Project by others, or for any other Project, excepting only such use as is authorized, in writing, by Consultant. By acceptance of CADD data, City agrees to indemnify Consultant for damages and liability resulting from the modification or misuse of such CADD data. All original drawings shall be submitted to City in the version of AutoCAD used by CITY in ".dwg" file format on a CD, and should comply with the City's digital submission requirements for Improvement Plans. The City will provide AutoCAD file of City Title Sheets. All written documents shall be 10 • • transmitted to City in the City's latest adopted version of Microsoft Word and Excel. 19. CONFIDENTIALITY All Documents, including drafts, preliminary drawings or plans, notes and communications that result from the services in this Agreement, shall be kept confidential unless City authorizes in writing the release of information. 20. OPINION OF COST Any opinion of the construction cost prepared by Consultant represents his /her judgment as a design professional and is supplied for the general guidance of City. Since Consultant has no control over the cost of labor and material, or over competitive bidding or market conditions, Consultant does not guarantee the accuracy of such opinions as compared to contractor bids or actual cost to City. 21. INTELLECTUAL PROPERTY INDEMNITY The Consultant shall defend and indemnify City, its agents, officers, representatives and employees against any and all liability, including costs, for infringement of any United States' letters patent, trademark, or copyright infringement, including costs, contained in Consultant's drawings and specifications provided under this Agreement. 22. RECORDS Consultant shall keep records and invoices in connection with the work to be performed under this Agreement. Consultant shall maintain complete and accurate records with respect to the costs incurred under this Agreement and any services, expenditures and disbursements charged to City, for a minimum period of three (3) years, or for any longer period required by law, from the date of final payment to Consultant under this Agreement. All such records and invoices shall be clearly identifiable. Consultant shall allow a representative of City to examine, audit and make transcripts or copies of such records and invoices during regular business hours. Consultant shall allow inspection of all work, data, Documents, proceedings and activities related to the Agreement for a period of three (3) years from the date of final payment to Consultant under this Agreement. 23. WITHHOLDINGS City may withhold payment to Consultant of any disputed sums until satisfaction of the dispute with respect to such payment. Such withholding shall not be deemed to constitute a failure to pay according to the terms of this Agreement. Consultant shall not discontinue work as a result of such withholding. Consultant 11 0 shall have an immediate right to appeal to the City Manager or his /her designee with respect to such disputed sums. Consultant shall be entitled to receive interest on any withheld sums at the rate of return that City earned on its investments during the time period, from the date of withholding of any amounts found to have been improperly withheld. 24. ERRORS AND OMISSIONS In the event of errors or omissions that are due to the negligence or professional inexperience of Consultant which result in expense to City greater than what would have resulted if there were not errors or omissions in the work accomplished by Consultant, the additional design, construction and/or restoration expense shall be borne by Consultant. Nothing in this paragraph is intended to limit City's rights under any other sections of this Agreement. 25. CITY'S RIGHT TO EMPLOY OTHER CONSULTANTS City reserves the right to employ other Consultants in connection with the Project. 26. CONFLICTS OF INTEREST The Consultant or its employees may be subject to the provisions of the California Political Reform Act of 1974 (the "Act "), which (1) requires such persons to disclose any financial interest that may foreseeably be materially affected by the work performed under this Agreement, and (2) prohibits such persons from making, or participating in making, decisions that will foreseeably financially affect such interest. If subject to the Act, Consultant shall conform to all requirements of the Act. Failure to do so constitutes a material breach and is grounds for immediate termination of this Agreement by City. Consultant shall indemnify and hold harmless City for any and all claims for damages resulting from Consultant's violation of this Section. 27. NOTICES All notices, demands, requests or approvals to be given under the terms of this Agreement shall be given in writing, to City by Consultant and conclusively shall be deemed served when delivered personally, or on the third business day after the deposit thereof in the United States mail, postage prepaid, first -class mail, addressed as hereinafter provided. All notices, demands, requests or approvals from Consultant to City shall be addressed to City at: 12 • • Attn: Lloyd Dalton, PE Public Works Department City of Newport Beach 3300 Newport Boulevard Newport Beach, CA, 92663 Phone: 949 - 644 -3328 Fax: 949 - 644 -3308 All notices, demands, requests or approvals from CITY to Consultant shall be addressed to Consultant at: Attention: Jody Harris GKK Works 20411 SW Birch Street, Suite 300 Newport Beach, CA 92660 Phone: 949 - 250 -1500 Fax: 949 - 955 -2708 28. TERMINATION In the event that either party fails or refuses to perform any of the provisions of this Agreement at the time and in the manner required, that party shall be deemed in default in the performance of this Agreement. If such default is not cured within a period of two (2) calendar days, or if more than two (2) calendar days are reasonably required to cure the default and the defaulting party fails to give adequate assurance of due performance within two (2) calendar days after receipt of written notice of default, specifying the nature of such default and the steps necessary to cure such default, the non - defaulting party may terminate the Agreement forthwith by giving to the defaulting party written notice thereof. Notwithstanding the above provisions, City shall have the right, at its sole discretion and without cause, of terminating this Agreement at any time by giving seven (7) calendar days prior written notice to Consultant. In the event of termination under this Section, City shall pay Consultant for services satisfactorily performed and costs incurred up to the effective date of termination for which Consultant has not been previously paid. On the effective date of termination, Consultant shall deliver to City all reports, Documents and other information developed or accumulated in the performance of this Agreement, whether in draft or final form. 29. COMPLIANCE WITH ALL LAWS Consultant shall at its own cost and expense comply with all statutes, ordinances, regulations and requirements of all governmental entities, including federal, state, county or municipal, whether now in force or hereinafter enacted. In addition, all work prepared by Consultant shall conform to applicable City, 13 0 0 county, state and federal laws, rules, regulations and permit requirements and be subject to approval of the Project Administrator and City. 30. WAIVER A waiver by either party of any breach, of any term, covenant or condition contained herein shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant or condition contained herein, whether of the same or a different character. 31. INTEGRATED CONTRACT This Agreement represents the full and complete understanding of every kind or nature whatsoever between the parties hereto, and all preliminary negotiations and agreements of whatsoever kind or nature are merged herein. No verbal agreement or implied covenant shall be held to vary the provisions herein. 32. CONFLICTS OR INCONSISTENCIES In the event there are any conflicts or inconsistencies between this Agreement and the Scope of Services or any other attachments attached hereto, the terms of this Agreement shall govern. 33. AMENDMENTS This Agreement may be modified or amended only by a written document executed by both Consultant and City and approved as to form by the City Attorney. 34. SEVERABILITY If any term or portion of this Agreement is held to be invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions of this Agreement shall continue in full force and effect. 35. CONTROLLING LAW AND VENUE The laws of the State of California shall govern this Agreement and all matters relating to it and any action brought relating to this Agreement shall be adjudicated in a court of competent jurisdiction in the County of Orange. 36. EQUAL OPPORTUNITY EMPLOYMENT Consultant represents that it is an equal opportunity employer and it shall not discriminate against any subcontractor, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex or age. [SIGNATURES ON FOLLOWING PAGE] 14 0 0 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on the day and year first written above. APPROVED AS TO FORM: By: Aaron C. Harp Assistant City Attorney ATTEST: CITY OF A Munich for the City of Newport Beach GKK Works: Mr� of Authorized Print Name: Charlie Merrick Attachments: Exhibit A — Scope of Services Exhibit B — Schedule of Billing Rates FAUsersSPBMShared\Agreements\FY 0"MGKK Works- NptCoastCommCtr.doc 15 0 gkkwork.s April 14, 2006 Mr. Uoyd R. Dalton, PE Design Engineer City of Newport Beach 3380 Newport Blvd. Newport Beach, CA 92663 0 Exhibit A Re: CM Services Proposal - Revised I Newport Coast Community Center and the Santa Ana Heights Fire Station and Training Facility Dear Uoyd: Per your request, gkkworks is pleased to submit our proposal to provide Construction Management Consulting Services for the Newport Coast Community Center and the Santa Ana Heights Fire Station and Training Facility. This is an exciting opportunity and we thank you in advance for your consideration. The following is a breakdown of the services we are proposing to provide: Construction Phase • Manage the Contractors' monthly updates for logic, work item timeframes, and contract compliance, and negotiate necessary changes in order to maintain schedule and performance • Review contractor's Requests for information (BFI's), shop drawings, samples and submittals, and prior to submitting to the Architect, will comment on their constructability, cost, effects on budget and schedule, clarity, consistency and completeness • Review change order requests for completeness, accuracy, and justifiability, negotiate final cost and process any contractor change orders • Develop and update a change order report for the use of the City and the Architect • Insure that the contractor understands the City's construction policies and procedures • Manage the contractor and other consultants and take the lead role in solving field problems • Maintain jobsite records, including photographs and videos to document the contractors progress, quality and conformance with the contract documents • Review, verify and approve the contractor's monthly pay requests • Review as -built drawings on a monthly basis, insuring the contractor inserts necessary updated information 204n SW BIrCh Street I Suite 3001 NE ORT BEACH I CA 92660 949.250.1500 1 949.955.2708 fax I ww .gkkworks.0 0 gkkwork.s. 0 • Develop and monitor the quality of construction, insuring against defects and deficiency in the contractor's work. Any nonconforming work will be documented and issued to the city and to the contractor • Develop a project punch list and insure that all punch list items are completed within a timely manner • Monitor the contractor's mandated jobsite safety program • Act as the City's site quality control representative • Review the work in place for conformance with the contract documents (review materials delivered to site to insure they match with approved shop drawings and submittals) • Manage field testing on materials in place to insure compliance with the contract documents (i.e. flood testing of roof, water testing of window wall systems) • Manage testing and inspection company as they test construction materials to verify compliance with the contract documents. This includes building pad compaction testing, footing inspections, reviewing the utility trench backfill and testing, parking area subgrade testing, asphalt testing, retaining wall backfill compaction testing, street improvements subgrade testing, street improvements utility trench backfill and testing, concrete testing and inspections, structural steel testing and Inspections, and masonry testing and inspections. • Provide site construction surveys to verify lines and grades with the contract documents Close -Out Phase • Obtain final as -built drawings, review and cause any corrections to be made prior to submittal to the city • Prepare a final project report, which will include a financial report, summary of change orders, final schedule analysis, and a report on the general contractor, subcontractors and suppliers. • Manage the assembly of the General Contractor's Operations and Maintenance manuals, review for completeness, cause any necessary corrections, approve and submit to the city The following is gkkworks breakdown of costs not to exceed: 1. The cost to complete Construction Management Services for the Santa Ana Fire Station and Training Facility is $273,077. 2. The cost to complete Construction Management Services for the Newport Coast Community Center is $374,334. 3. Should we be awarded both contracts and they run concurrently, the cost to complete Construction Management Services is $539,111. The savings realized under this option comes from the sharing of administrative services and management oversight. In all cases, each project will be managed by the Project Manager, or the Sr. Project Manager with appropriate support staff (scheduling, cost estimating, etc) as needed (please refer 204115W Birch Street I suite 3001 NEWPORT BEACH I CA 92660 949$50.1500 1 949.955.2708 fax I W WY6gkkwark com E g kkwork <_ to our previously proposed Staffing Approach). We recommend that any staggering of the pre - construction /kick -off meetings be limited to a time -frame of 25 working days. This will minimize the overlap time, and alleviate additional oversight, administrative, and support services time and costs added to the projects. 4. Attached is an hourly rate chart for additional services outside our scope of work (i.e. installation of FF &E, furniture purchase, telephone system purchase, move management). gkkworks will provide management and coordinate of testing and surveys on behalf of the City. gkkworks is being hired to manage the general contractor to complete construction by stipulated contract dates. Should the city extend the general contractor additional days to the contract (i.e. rain delays), gkkworks would then expect the same extension of time to our contract. However, should an extension of time occur due to the fault of the general contractor, gkkworks would then look to the general contractor for compensation, through a deductive change order. Due to changes in the initial scheduling of these two projects, we have had to reassign two of the team members previously presented. However, Charlie Merrick remains as Principal - In- Charge, and we propose Mr. Steve Dunn as our Sr. Project Manager, and Mr. Jerry Fuentes as our Project Manager, both of whom bring outstanding management skills and construction knowledge to the project. Please see their attached resumes for your review and approval. Mr. Dunn has also previously served as Chairman of the Police and Fire Commissions for the City of Oceanside, and is well suited for this endeavor. You have my personal commitment that the gkkworks team will meet your needs and exceed your expectations. If you have any questions or require additional information, please contact me and I'll be happy to accommodate you! Most Sincerely, gkkworks Jody Harris Director of Business Development Cc: Mark Brown - Director of Operations file 20411 5W Birch Street I Suite 3001 NEWPORT BEACH I CA 92660 949.2501500 1949.955270B fax I www.gkkworks.mm 0 SCHEDULE OF HOURLY RATES Exhibit B PR03ECT MANAGEMENT SERVICES Principal.......................................................................................... ............................... $165 OperationsManager ............................................... ............................... ...........................$160 Sr. Project Manager .......................................................................... ............................... $150 ProjectManager .................................................... ............................... ...........................$125 ProjectEngineer .................................................... ............................... ...........................$100 General Superintendent .......................................... ............................... ...........................$150 Superintendent... ............................................................................................................ $135 SeniorEstimator .............................................................................. ............................... $140 Estimator........................................................................................ ............................... $115 Scheduler........................................................................................ ............................... $115 Safety............................................................................................. ............................... $100 Administrative.................................................................................... ............................... $65 HOURLY RATE INCLUSIONS REIMBURSABLES Items included in our hourly rates: The following are reimbursable items: • Wages Room and board costs for overnight stays • Fringe benefits and payroll taxes Permits and fees • Workers compensation insurance • Plan check fees • Cell phone costs • Architecture or engineering costs • Computers and computer software ! • Hazardous materials inspection, testing or • Main office overhead costs i abatement • Profit • Payment and performance bonds • Business license • Office supplies • Progress photographs • Mileage • Office Trailer • Postage • Copier Expense These rates are good thru the end of the contract for the Newport Coast Community Center and the Santa Ana Heights Fire Station and Training Facility projects. M. April 26, Charles Merrick, Vice President GKK Works 20411 SW Birch Street, Suite 300 Newport Beach, CA 92660 0 CITY OF NEWPORT BEACH PUBLIC WORKS DEPARTMENT Stephen G. Badum, Director APR 2 8 20M NEWPORT PF n, CH. CA Subject: Professional Services Agreement for Construction Management Services for the Newport Coast Community Center and Santa Ana Heights Fire Station and Training Facility Dear Mr. Merrick, Enclosed are two copies of the Professional Services Agreement for the design of the above referenced subject. The Agreement provisions require you to furnish original certificates of insurance and original endorsements in strict compliance with all of the requirements outlined in Section 14. INSURANCE. An individual authorized by the insurer to bind coverage on its behalf must execute these documents. Also, the Cancellation Clause shall read: "Should any of the above described policies be cancelled before the expiration date thereof, the issuing company will mail 10 days written notice to the certificate holder named to the left." All certificates and endorsements must be received and approved by the City prior to the commencement of the work. We suggest that you fax a complete copy of Section 14. INSURANCE of the Agreement to your insurance carrier to expedite the process. There are no exceptions to our insurance requirements. The insurance company may e-mail PDF certificates and endorsements to soyler Co?citv.newgort- beach.ca.us. Please sign both copies of the Agreement and return to me along with your certificates of insurance and endorsements within 10 working days of receipt of this agreement. Upon approval of your insurance documents, the City of Newport Beach will execute the agreement and a copy will be returned to you for your files. Work should not be started until your firm receives the fully executed Agreement. We look forward to working with you on this project. If you have any questions, please contact me at (949) 644 -3311 . ere i. auna Oyler C Public Works Specialist Enclosures f:luserslpbyB"@d*gwposbt34dibe%Q�Sd: Newport Beach, California 92658 -8915 Telephone: (949) 644 -3311 , Fax: (949) 644 -3318 • www.city.newport- beach.ca.us CIIPM$I- RSA r &ORPnR ACORD,e CERTIFICATE OF LIABILITY MD)D YYI INSURANCE MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH s/191os 05/191 PRODUCER THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION Dealey, Renton & Associates P. O. Box 10550 Santa Ana, CA 92711 -0550 ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. POLICY EXPIRATION DATE MM D 714 427 -6810 INSURERS AFFORDING COVERAGE INSURED GKK Corporation 20411 SW Birch St. Ste 300 INSURER A. United States Fidelity & Guaranty INSURER & New Hampshire Ins. Co. 02/15/06 Newport Beach, CA 92660 NSURER C: INSURER D: INSURER E: X COMMERCIAL GENERAL LIABILITY CLAIMS MADE ❑X OCCUR COVERAGES THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. NSR TYPE OF INSURANCE POLICYNUMSER POLICY EFFECTIVE M DIYY POLICY EXPIRATION DATE MM D LIMITS A GENERALLIASILRY BKO1307260 02/15/06 02/15107 EACH OCCURRENCE $1000000 X COMMERCIAL GENERAL LIABILITY CLAIMS MADE ❑X OCCUR Gen. Liab.policy excludes claims FIRE DAMAGE (AM fire) $300000 MEDEXP(Ar,.w"..) $16000 PERSONAL S ADV INJURY s1 000 060 arising out of the GENERAL AGGREGATE s2 000 000 performance of GEM AGGREGATE LIMIT AP : PRODUCTS - COMP[OPAGG $2000660 prof. services 7PER POLICY PRO- LOG A AUTOMOBILE LIABILITY ANY AUTO BKO1307260 02115106 02115107 COMBINED SINGLE LIMIT (EaecddeM) $1,000,000 BODILY INJURY (PerPersoal S ALL OWNED AUTOS SCHEDULEDAUTOS X BODILY INJURY {Per acvdenl) HIREDAUTOS NON-OWNED AUTOS X PROPERTY DAMAGE (Per acddeN) $ GARAGE LIABILITY AUTO ONLY - EA ACCIDENT $ OTHER IRAN EA ACC $ ANY AUTO S AUTO ONLY: AGG A Excess LIABILITY OCCUR F-1 CLAIMS MADE BKO1307260 02115/06 02/15107 EACH OCCURRENCE $9,000,000 AGGREGATE $a 000 000 s $ DEDUCTIBLE 6 RETENTION $ WORKERS COMPENSATION AND WC STATU- I OTH- ER EMPLOYERS- LIABILM E.L. EACH ACCIDENT $ E.L. DISEASE -EA EMPLOYEE S EL DISEASE - POLICY LIMIT 5 $ OTHER professional 0441736 02/15106 02/15/07 $5,000,000 per claim lability $5,000,000 annl aggr. /alms Made DESCRIPTION OF OPERATIONVLOCATIONSNEHMLESIEXCLUSIONS ADDED BY EN9OR$EMENTI6PEcm PROVISIONS RE: Professional Services Agreement City of Newport Beach, its elected or appointed ofOcers,ofNcials,empioyees and volunteers are additional insured on general & auto liability for services provided by and on behalf of the above named insured. City of Newport Beach Attn: Shauna Oyler 3300 Newport Blvd. Newport Beach, CA 92650-8915 SHOULD ANYOFTHEABOVE DESCRIBED POl IESSE CANCELLED BEFORE THE EXPRATON DATE THEREOF, THE ISSUING INSURER WILL ENDEAVOR TOMA{L3D— DAYSWRInEN NOMCETOTHE CERTIFICATE HOLDERNAMED TOTHELEFT, BUTFALURE TODOSOMALL IMPOSE NOOBLIGATION OR LIABILITY OF ANY KIND UPON THE INSURER,RS AGENTS OR ACORO 255 (7197)1 of 1 #S160450/M160449 JMC m ACORD CORPORATION 1998 0 0 Policy Number: BKO1307260 Owners Lessees or Contractors (Form B) ADDIT16NAL INSURED Change(s) Effective: 05/19/06 THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY. This endorsement modifies insurance policy under the following: LIABILITY COVERAGE PART: Schedule Name of Person or Organization: City of Newport Beach Attn: Shauna Oyler 3300 Newport Blvd. Newport Beach, CA 92658 -8915 SECTION II - WHO IS AN INSURED is amended to include as an insured the person or organization shown in the Schedule, but only with respect to liability arising out of "your work' for that insured by or for you. City of Newport Beach, its elected or appointed officers,officials,employees and volunteers PRIMARY INSURANCE: IT IS UNDERSTOOD AND AGREED THAT THIS INSURANCE IS PRIMARY AND ANY OTHER INSURANCE MAINTAINED BY THE ADDITIONAL INSURED SHALL BE EXCESS ONLY AND NOT CONTRIBUTING WITH THIS INSURANCE. WAIVER OF SUBROGATION: IT IS UNDERSTOOD AND AGREED THAT THE COMPANY WAIVES THE RIGHT OF SUBROGATION AGAINST THE ABOVE ADDITIONAL INSURED(S), BUT ONLY AS RESPECTS THE JOB OR PREMISES DESCRIBED IN THE CERTIFICATE ATTACHED HERETO. CL/BF 22 40 03 95 STATE COMPENSATION INSURANCE FUND • CERTHOLDER COPY P.O. BOX 420807, SAN FRANCISCO,CA 94142 =0807 CERTIFICATE OF WORKERS' COMPENSATION INSURANCE ISSUE DATE: 05 -25 -2006 CITY OF NEWPORT BEACH SG 3300 NEWPORT BLVD NEWPORT BEACH CA 92663 -3816 GROUP. POLICY NUMBER 1750022 -2005 CERTIFICATE ID: 80 CERTIFICATE EXPIRES: 07 -01 -2006 07 -01- 2005/07 -01 -2006 THIS CERTIFICATE SUPERSEDES AND CORRECTS CERTIFICATE # 78 DATED 05 -18 -2008 JOB:SANTA ANA HEIGHTS FIRE STATION 8 TRAINING FACILITY This is to certify that we have issued a valid Workers' Compensation insurance policy in a form approved by the California Insurance Commissioner to the employer named below for the policy period that will expire or did expire as indicated above. This certificate of insurance is not an insurance policy and does not amend, extend or alter the coverage afforded by the policy listed herein. Notwithstanding any requirement, term or condition of any contract or other document with respect to which this certificate of insurance may be issued or to which it may pertain, the insurance afforded by the policy described herein is subject to all the terms, exclusions, and conditions, of such policy. THORIZED REPRESENTATI PRESIDENT EMPLOYER'S LIABILITY LIMIT INCLUDING DEFENSE COSTS: $1,000,000 PER OCCURRENCE. ENDORSEMENT #'1600 - PRAFUL M. KULKARNI PRES - EXCLUDED. ENDORSEMENT #1600 - DAVID N. HUNT SEC - EXCLUDED. ENDORSEMENT #1600 - LEN METCALF TRES - EXCLUDED. ENDORSEMENT #2065 ENTITLED CERTIFICATE HOLDERS' NOTICE EFFECTIVE 07 -01 -2004 IS ATTACHED TO AND FORMS A PART OF THIS POLICY. ENDORSEMENT #2570 ENTITLED WAIVER OF SUBROGATION EFFECTIVE 2006 -05 -25 IS ATTACHED TO AND FORMS A PART OF THIS POLICY. THIRD PARTY NAME: CITY OF NEWPORT BEACH EMPLOYER GKK CORPORATION 20411 SW BIRCH ST STE 300 NEWPORT BEACH CA 92660 SG [VMG,CNI WEV.2 -115) PRINTED : 05 -25 -2006 0 0 WAIVER OF SUBROGATION NOTICE Enclosed is your copy of a certificate of insurance on which the certificate holder required a waiver of subrogation: 1. Please be advised that a waiver of subrogation requires that a 3% surcharge will be applied by State Fund ONLY to the premium assessed on the payroll of your employees earned while engaged in work for that certificate holder who requested the waiver. (Note: if you have no employee payroll on that job, then there is no charge.) 2. To apply the 3% surcharge, you must also agree to maintain accurately segregated payroll records for employees engaged in work on job /s for the certificate holder who has the waiver. The payroll records are subject to verification by an auditor. Example: Payroll for job: Sample Rate: Regular Premium equals: Surcharge: Additional Waiver charge: Total premium equals $5,000.00 13.30% $ 665.00 3.00% $ - 19.95 $ 684.95 (665.00 + 19.95) MAY -f8 -2006 15:25 FROM: a T0i9496443318 P.1 /1 Fax* (Qgg) (OYy'�� CERTIFICATE OF INSURANCE CHECKLIST City of Newport Beach This checklist is comprised of requirements as outlined by the City of Newport Beach. Date Received: '-//I A Dept /Contact Received From: y rlau„C� Q Date Completed: k- !t /a (0 Sent to: 4Uf4szq B otin1 Company /Person required to have certificate/: A /KKK Word r I. A. INSURANCE COMPANY: Uk >c LC B. AM BEST RATING (A: VII or greater): AW C. ADMITTED Company (Must be California Admitted): Is Company admitted in California? Yes ❑ No D. LIMITS (Must be $11M or greater): What is limit provided? Y M14 I tuil pfc E. PRODUCTS AND COMPLETED OPERATIONS (Must include): Is it included? :]Yes No F. ADDITIONAL INSURED WORDING TO INCLUDE (The City its officers, officials, employees and volunteers): Is it included? �J Y s y ..,10 G. PRIMARY & NON - CONTRIBUTORY WORDING (Must be included): Is it included? Yes .110 H. CAUTIONI (Confirm that loss or liability of the named insured is not limited solely by their negligence) Does endorsement include "solely by negligence" wording? ❑ Yes No 1. NOTIFICATION OF CANCELLATION: Although there is a provision that requires notification of cancellation by certified mail; per Lauren Farley, the City will accept the endeavor wording. U. AUTOMOBILE LIABILITY � rr A. INSURANCE COMPANY: aVq i t 1 B. AM BEST RATING (A: VII or greater): C. ADMITTED COMPANY (Must be California Admitted): Is Company admitted in California? Yes ❑ No D. LIMITS (Must be $iM min. BI & PD and $500,000 UM): What is limits provided? k1 n..a'ran E. ADDITIONAL INSURED WORDING TO INCLUDE (The City its officers, officials, employees and volunteers): Is it included? dyes , .+lo F. PRIMARY & NON - CONTRIBUTORY WORDING (For Waste Haulers only): Is it included? Yes ❑ No G. NOTIFICATION OF CANCELLATION: Although there is a provision that requires notification of cancellation by certified mail; per Lauren Farley. the City will accept the endeavor wording. III. WORKERS' COMPENSATION n� --// /r -{ A. INSURANCE COMPANY: ' 407 j t?u.r� G nt • 1ptc. A^z B. AM BEST RATING (A: VII or greater): C. LIMITS: Statutory / D. WAIVER OF SUBROGATION (To include): Is it included? ❑ es No HAVE ALL ABOVE REQUIREMENTS BEEN MET? No C es jj 10 NO WHICH ITFPAq NFFr1 m cc r -nruor =T=no 1A) C ^ r. Op-z5? �s LD C -34938 S • ( / /loo uv0 ) CITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 12 Date: April 25, 2006 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Public Works Department Lloyd Dalton, Design Engineer 949 - 644 -3328 Idalton@cfty.newport-beach.ca.us SUBJECT: NEWPORT COAST COMMUNITY CENTER AND SANTA ANA HEIGHTS FIRE STATION AND TRAINING FACILITY - APPROVAL OF A PROFESSIONAL SERVICES AGREEMENT WITH GKK WORKS RECOMMENDATION: Approve a Professional Services Agreement for construction management services with GKK Works, and authorize the Mayor and City Clerk to execute the Agreement in the amount of $539,111. DISCUSSION: In May of 2004, City staff published a call for construction management (CM) fines to submit qualifications to provide CM services for two of the City's building projects. The submittals were independently reviewed to evaluate each firm's qualifications, past experience on similar projects, availability, etc. Of the six firms that responded, the review team evaluated GKK Works as the most qualified CM services firm. Construction management services are needed for the Newport Coast Community Center and the Santa Ana Heights Fire Station and Training Facility construction projects. Anticipating the possibility that one contractor could be the low bidder on both projects, staff structured each construction contract such that the City may stagger the start dates on the projects in order to accommodate a single contract for CM services and a single contract for construction for both projects, if desired. Upon opening bids and seeing that the same firm was in fact the low bidder on both projects, staff requested that GKK propose to provide CM services for the two projects. Staff felt that joint CM services will be desirable since the two sites are within 4 miles of each other and since CM costs would be reduced if one firm could handle both projects. Title of Project - Approval of Profesz Services Agreement with GKK Works Date - April 25, 2006 Page 2 GKK's proposal is attached for City Council review. GKK's scope of services and fees are shown therein. Survey, geotechnical and testing services will be provided by outside consultants pursuant to the On -Call Professional Services Agreement approved by City Council on June 28, 2005. GKK's not -to- exceed total fees shown on Page 2 of its proposal indicate how GKK can provide CM services at both sites and reduce project costs by more than $108,000. A draft Professional Services Agreement to provide CM services for both projects is attached. In the event the Newport Coast Community Center construction contract is not awarded, staff will revise the proposed agreement with GKK to apply only to the Santa Ana Heights' Fire Station and Training Facility project. Or vice versa. Funding Availability: If contracts are awarded to construct both projects, sufficient funds are available in the following two accounts to cover the cost of construction management: Account Description Account Number Amount Newport Coast Community Center 7298- C5100705 $311,714 Santa Ana Heights Fire Station and Training Facility 7256- C2320669 $227,397 Total CM cost for concurrent management: $539,111 If a contract is awarded to construct just one of the projects, sufficient funds are available in the following accounts to cover the respective cost for construction management: Account Description Newport Coast Community Center Account Number Amount 7298- C5100705 $374,334 Santa Ana Heights Fire Station and Training Facility 7256- C2320669 $273,077 Prepared by: fyyLloyd Dalton, P.E. Design Engineer Submitted by: St . Badum, P.E. ublic Works Director Attachment: Proposal from GKK Works Professional Services Agreement 9 0 PROFESSIONAL SERVICES AGREEMENT WITH GKK WORKS FOR CONSTRUCTION MANAGEMENT SERVICES FOR THE NEWPORT COAST COMMUNITY CENTER AND SANTA ANA HEIGHTS FIRE STATION AND TRAINING FACILITY THIS AGREEMENT is made and entered into as of this _ day of , 2006, by and between the CITY OF NEWPORT BEACH, a Municipal Corporation ( "City "), and GKK Works, a corporation whose address is 20411 SW Birch Street, Suite 300, Newport Beach, California, 92660 ( "Consultant'), and is made with reference to the following: RECITALS A. City is a municipal corporation duly organized and validly existing under the laws of the State of California with the power to cant' on its business as it is now being conducted under the statutes of the State of California and the Charter of City. B. City desires to retain construction management services for Newport Coast Community Center and Santa Ana Heights Fire Station and Training Facility. C. City desires to engage Consultant to provide such construction management services ( "Project'). D. Consultant possesses the skill, experience, ability, background, certification and knowledge to provide the services described in this Agreement. E. The principal member of Consultant for purposes of Project, shall be Charles Merrick, Vice President. F. City has solicited and received a proposal from Consultant, has reviewed the previous experience and evaluated the expertise of Consultant, and desires to retain Consultant to render professional services under the terms and conditions set forth in this Agreement. NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows: 1. TERM The term of this Agreement shall commence on the above written date, and shall terminate on the 30th day of December, 2007, unless terminated earlier as set forth herein. 2. SERVICES TO BE PERFORMED Consultant shall diligently perform all the services described in the Scope of Services attached hereto as Exhibit A and incorporated herein by reference. The City may elect to delete certain tasks of the Scope of Services at its sole discretion. 3. TIME OF PERFORMANCE Time is of the essence in the performance of services under this Agreement and the services shall be performed to completion in a diligent and timely manner. The failure by Consultant to perform the services in a diligent and timely manner may result in termination of this Agreement by City. Notwithstanding the foregoing, Consultant shall not be responsible for delays due to causes beyond Consultant's reasonable control. However, in the case of any such delay in the services to be provided for the Project, each party hereby agrees to provide notice to the other party so that all delays can be addressed. 3.1 Consultant shall submit all requests for extensions of time for performance in writing to the Project Administrator not later than ten (10) calendar days after the start of the condition that purportedly causes a delay. The Project Administrator shall review all such requests and may grant reasonable time extensions for unforeseeable delays that are beyond Consultant's control. 3.2 For all time periods not specifically set forth herein, Consultant shall respond in the most expedient and appropriate manner under the circumstances, by either telephone, fax, hand - delivery, or mail. 4. COMPENSATION TO CONSULTANT City shall pay Consultant for the services on a time and expense not -to- exceed basis in accordance with the provisions of this Section and the Schedule of Billing Rates attached hereto as Exhibit B and incorporated herein by reference. Consultant's compensation for all work performed in accordance with this Agreement, including all reimbursable items and subconsultant fees, shall not exceed Five Hundred Thirty Nine Thousand, One Hundred Eleven and 00/100 Dollars ($539,111.00) without additional authorization from City. No billing rate changes shall be made during the term of this Agreement without the prior written approval of City. 4.1 Consultant shall submit monthly invoices to City describing the work performed the preceding month. Consultant's bills shall include the name of the person who performed the work, a brief description of the services performed and /or the specific task in the Scope of Services to which it relates, the date the services were performed, the number of hours spent 2 on all work billed on an hourly basis, and a description of any reimbursable expenditures. City shall pay Consultant no later than thirty (30) days after approval of the monthly invoice by City staff. 4.2 City shall reimburse Consultant only for those costs or expenses specifically approved in this Agreement, or specifically approved in advance by City. Unless otherwise approved, such costs shall be limited and include nothing more than the following costs incurred by Consultant: A. The actual costs of subconsultants for performance of any of the services that Consultant agrees to render pursuant to this Agreement, which have been approved in advance by City and awarded in accordance with this Agreement. B. Approved reproduction charges. C. Actual costs and /or other costs and /or payments specifically authorized in advance in writing and incurred by Consultant in the performance of this Agreement. 4.3 Consultant shall not receive any compensation for Extra Work performed without the prior written authorization of City. As used herein, "Extra Work" means any work that is determined by City to be necessary for the proper completion of the Project, but which is not included within the Scope of Services and which the parties did not reasonably anticipate would be necessary at the execution of this Agreement. Compensation for any authorized Extra Work shall be paid in accordance with the Schedule of Billing Rates as set forth in Exhibit B. 5. PROJECT MANAGER Consultant shall designate a Project Manager, who shall coordinate all phases of the Project. This Project Manager shall be available to City at all reasonable times during the Agreement term. Consultant has designated Jerry Fuentes to be its Project Manager. Consultant shall not remove or reassign the Project Manager or any personnel listed in Exhibit A or assign any new or replacement personnel to the Project without the prior written consent of City. City's approval shall not be unreasonably withheld with respect to the removal or assignment of non -key personnel. Consultant, at the sole discretion of City, shall remove from the Project any of its personnel assigned to the performance of services upon written request of City. Consultant warrants that it will continuously furnish the necessary personnel to complete the Project on a timely basis as contemplated by this Agreement. The Project Manager and any other assigned staff shall be equipped with a Nextel Plus type cellular /direct connect unit to communicate with City staff. 3 E 0 Consultant's Nextel Direct Connect I.D. number will be provided to City to be programmed into City Nextel units, and vice versa. 6. ADMINISTRATION This Agreement will be administered by the Public Works Department. Lloyd Dalton, PE, shall be the Project Administrator and shall have the authority to act for City under this Agreement: The Project Administrator or his authorized representative shall represent City in all matters pertaining to the services to be rendered pursuant to this Agreement. 7. CITY'S RESPONSIBILITIES In order to assist Consultant in the execution of its responsibilities under this Agreement, City agrees to, where applicable: A. Provide access to, and upon request of Consultant, one copy of all existing relevant information on file at City. City will provide all such materials in a timely manner so as not to cause delays in Consultant's work schedule. B. Provide blueprinting and other services through City's reproduction company for bid documents. Consultant will be required to coordinate the required bid documents with City's reproduction company. All other reproduction will be the responsibility of Consultant and as defined above. C. Provide usable life of facilities criteria and information with regards to new facilities or facilities to be rehabilitated. 8. STANDARD OF CARE 8.1 All of the services shall be performed by Consultant or under Consultant's supervision. Consultant represents that it possesses the professional and technical personnel required to perform the services required by this Agreement, and that it will perform all services in a manner commensurate with community professional standards. All services shall be performed by qualified and experienced personnel who are not employed by City, nor have any contractual relationship with City. 8.2 Consultant represents and warrants to City that it has or shall obtain all licenses, permits, qualifications, insurance and approvals of whatsoever nature that are legally required of Consultant to practice its profession. Consultant further represents and warrants to City that Consultant shall, at its sole cost and expense, keep in effect or obtain at all times during the term of this Agreement, any and all licenses, permits, insurance and other approvals that are legally required of Consultant to practice its profession. n • i Consultant shall maintain a City of Newport Beach business license during the term of this Agreement. 8.3 Consultant shall not be responsible for delay, nor shall Consultant be responsible for damages or be in default or deemed to be in default by reason of strikes, lockouts, accidents, or acts of God, or the failure of City to fumish timely information or to approve or disapprove Consultant's work promptly, or delay or faulty performance by City, contractors, or governmental agencies. 8.4 The term Construction Management or Construction Manager does not imply that Consultant is engaged in any aspect of the physical work of construction contracting. Consultant shall not have control over or be in charge of and shall not be responsible for the project's design, City's project contractor ( "Contractor"), construction means, methods, techniques, sequences or procedures, or for any health or safety precautions and programs in connection with the work. These duties are and shall remain the sole responsibility of the Contractor. Consultant shall not be responsible for the Contractors' schedules or failure to carry out the work in accordance with the contract documents. Consultant shall not have control over or be responsible for acts or omissions of City, Design Engineer, Contractor, Subcontractors, or their Agents or employees, or of any other persons performing portions of the work. 9. HOLD HARMLESS To the fullest extent permitted by law, Consultant shall indemnify, defend and hold harmless City, its City Council, boards and commissions, officers, agents and employees (collectively, the "Indemnified Parties ") from and against any and all claims (including, without limitation, claims for bodily injury, death or damage to property), demands, obligations, damages, actions, causes of action, suits, losses, judgments, fines, penalties, liabilities, costs and expenses (including, without limitation, attorney's fees, disbursements and court costs) of every kind and nature whatsoever (individually, a Claim; collectively, "Claims "), which may arise from or in any manner relate (directly or indirectly) to any work performed or services provided under this Agreement (including, without limitation, defects in workmanship or materials and /or design defects [if the design originated with Consultant]) or Consultant's presence or activities conducted on the Project (including the negligent and /or willful acts, errors and /or omissions of Consultant, its principals, officers, agents, employees, vendors, suppliers, consultants, subcontractors, anyone employed directly or indirectly by any of them or for whose acts they may be liable or any or all of them). Notwithstanding the foregoing, nothing herein shall be construed to require Consultant to indemnify the Indemnified Parties from any Claim arising from the sole negligence or willful misconduct of the Indemnified Parties. Nothing in this indemnity shall be construed as authorizing any award of attorney's fees in any 5 0 0 action on or to enforce the terms of this Agreement. This indemnity shall apply to all claims and liability regardless of whether any insurance policies are applicable. The policy limits do not act as a limitation upon the amount of indemnification to be provided by the Consultant. 10. INDEPENDENT CONTRACTOR It is understood that City retains Consultant on an independent contractor basis and Consultant is not an agent or employee of City. The manner and means of conducting the work are under the control of Consultant, except to the extent they are limited by statute, rule or regulation and the expressed terms of this Agreement. Nothing in this Agreement shall be deemed to constitute approval for Consultant or any of Consultant's employees or agents, to be the agents or employees of City. Consultant shall have the responsibility for and control over the means of performing the work, provided that Consultant is in compliance with the terms of this Agreement. Anything in this Agreement that may appear to give City the right to direct Consultant as to the details of the performance or to exercise a measure of control over Consultant shall mean only that Consultant shall follow the desires of City with respect to the results of the services. 11. COOPERATION Consultant agrees to work closely and cooperate fully with City's designated Project Administrator and any other agencies that may have jurisdiction or interest in the work to be performed. City agrees to cooperate with the Consultant on the Project. 12. CITY POLICY Consultant shall discuss and review all matters relating to policy and Project direction with City's Project Administrator in advance of all critical decision points in order to ensure the Project proceeds in a manner consistent with City goals and policies. 13. PROGRESS Consultant is responsible for keeping the Project Administrator and /or his /her duly authorized designee informed on a regular basis regarding the status and progress of the Project, activities performed and planned, and any meetings that have been scheduled or are desired. 14. INSURANCE Without limiting Consultant's indemnification of City, and prior to commencement of work. Consultant shall obtain, provide and maintain at its own expense during the term of this Agreement, a policy or policies of liability insurance of the type and,amounts described below and in a form satisfactory to City. i • A. Certificates of Insurance. Consultant shall provide certificates of insurance with original endorsements to City as evidence of the insurance coverage required herein. Insurance certificates must be approved by City's Risk Manager prior to commencement of performance or issuance of any permit. Current certification of insurance shall be kept on file with City's at all times during the term of this Agreement. B. Signature. A person authorized by the insurer to bind coverage on its behalf shall sign certification of all required policies. C. Acceptable Insurers. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance in the State of California, with an assigned policyholders' Rating of A (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best's Key Rating Guide, unless otherwise approved by the City's Risk Manager. D. Coverage Requirements. i. Workers' Compensation Coverage. Consultant shall maintain Workers' Compensation Insurance and Employer's Liability Insurance for his or her employees in accordance with the laws of the State of California. In addition, Consultant shall require each subcontractor to similarly maintain Workers' Compensation Insurance and Employer's Liability Insurance in accordance with the laws of the State of California for all of the subcontractor's employees. Any notice of cancellation or non - renewal of all Workers' Compensation policies must be received by City at least thirty (30) calendar days prior to such change (10 day written notice for nonpayment of premium). The insurer shall agree to waive all rights of subrogation against City, its officers, agents, employees and volunteers for losses arising from work performed by Consultant for City. ii. General Liability Coverage. Consultant shall maintain commercial general liability insurance in an amount not less than one million dollars ($1,000,000) per occurrence for bodily injury, personal injury, and property damage, including without limitation, contractual liability. If commercial general liability insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the work to be performed under this Agreement, or the general aggregate limit shall be at least twice the required occurrence limit. 7 0 0 iii. Automobile Liability Coverage. Consultant shall maintain automobile insurance covering bodily injury and property damage for all activities of the Consultant arising out of or in connection with work to be performed under this Agreement, including coverage for any owned, hired, non -owned or rented vehicles, in an amount not less than one million dollars ($1,000,000) combined single limit for each occurrence. iv. Professional Errors and Omissions Insurance. Consultant shall maintain professional errors and omissions insurance, which covers the services to be performed in connection with this Agreement in the minimum amount of one million dollars ($1,000,000). E. Endorsements. Each general liability and automobile liability insurance policy shall be endorsed with the following specific language: The City, its elected or appointed officers, officials, employees, agents and volunteers are to be covered as additional insureds with respect to liability arising out of work performed by or on behalf of the Consultant. This policy shall be considered primary insurance as respects to City, its elected or appointed officers, officials, employees, agents and volunteers as respects to all claims, losses, or liability arising directly or indirectly from the Consultant's operations or services provided to City. Any insurance maintained by City, including any self- insured retention City may have, shall be considered excess insurance only and not contributory with the insurance provided hereunder. iii. This insurance shall act for each insured and additional insured as though a separate policy had been written for each, except with respect to the limits of liability of the insuring company. iv. The insurer waives all rights of subrogation against City, its elected or appointed officers, officials, employees, agents and volunteers. V. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to City, its elected or appointed officers, officials, employees, agents or volunteers. vi. The insurance provided by this policy shall not be suspended, voided, canceled, or reduced in coverage or in limits, by either party except after thirty (30) calendar days written notice has been received by City (10 day written notice for nonpayment of premium). E: 0 0 F. Timely Notice of Claims. Consultant shall give City prompt and timely notice of claim made or suit instituted arising out of or resulting from Consultant's performance under this Agreement. G. Additional Insurance. Consultant shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the work. 15. PROHIBITION AGAINST ASSIGNMENTS AND TRANSFERS Except as specifically authorized under this Agreement, the services to be provided under this Agreement shall not be assigned, transferred contracted or subcontracted out without the prior written approval of City. Any of the following shall be construed as an assignment: The sale, assignment, transfer or other disposition of any of the issued and outstanding capital stock of Consultant, or of the interest of any general partner or joint venturer or syndicate member or cotenant if Consultant is a partnership or joint- venture or syndicate or cotenancy, which shall result in changing the control of Consultant. Control means fifty percent (50 %) or more of the voting power, or twenty -five percent (25 %) or more of the assets of the corporation, partnership or joint- venture. 16. SUBCONTRACTING The parties recognize that a substantial inducement to City for entering into this Agreement is the professional reputation, experience and competence of Consultant. Assignments of any or all rights, duties or obligations of the Consultant under this Agreement will be permitted only with the express written consent of City. Consultant shall not subcontract any portion of the work to be performed under this Agreement without the prior written authorization of City. 17. OWNERSHIP OF DOCUMENTS Each and every report, draft, map, record, plan, document and other writing produced (hereinafter "Documents "), prepared or caused to be prepared by Consultant, its officers, employees, agents and subcontractors, in the course of implementing this Agreement, shall become the exclusive property of City, and City shall have the sole right to use such materials in its discretion without further compensation to Consultant or any other party. Consultant shall, at Consultant's expense, provide such Documents to City upon prior written request. Documents, including drawings and specifications, prepared by Consultant pursuant to this Agreement are not intended or represented to be suitable for reuse by City or others on any other project. Any use of completed Documents for other projects and any use of incomplete Documents without specific written authorization from Consultant will be at City's sole risk and without liability to 0 0 Consultant. Further, any and all liability arising out of changes made to Consultant's deliverables under this Agreement by City or persons other than Consultant is waived against Consultant and City assumes full responsibility for such changes unless City has given Consultant prior notice and has received from Consultant written consent for such changes. 18. COMPUTER DELIVERABLES CADD data delivered to City shall include the professional stamp of the engineer or architect in charge of or responsible for the work. City agrees that Consultant shall not be liable for claims, liabilities or losses arising out of, or connected with (a) the modification or misuse by City, or anyone authorized by City, of CADD data; (b) the decline of accuracy or readability of CADD data due to inappropriate storage conditions or duration; or (c) any use by City, or anyone authorized by City, of CADD data for additions to this Project, for the completion of this Project by others, or for any other Project, excepting only such use as is authorized, in writing, by Consultant. By acceptance of CADD data, City agrees to indemnify Consultant for damages and liability resulting from the modification or misuse of such CADD data. All original drawings shall be submitted to City in the version of AutoCAD used by CITY in ".dwg" file format on a CD, and should comply with the City's digital submission requirements for Improvement Plans. The City will provide AutoCAD file of City Title Sheets. All written documents shall be transmitted to City in the City's latest adopted version of Microsoft Word and Excel.. 19. CONFIDENTIALITY All Documents, including drafts, preliminary drawings or plans, notes and communications that result from the services in this Agreement, shall be kept confidential unless City authorizes in writing the release of information. 20. OPINION OF COST Any opinion of the construction cost prepared by Consultant represents his /her judgment as a design professional and is supplied for the general guidance of City. Since Consultant has no control over the cost of labor and material, or over competitive bidding or market conditions, Consultant does not guarantee the accuracy of such opinions as compared to contractor bids or actual cost to City. 21. INTELLECTUAL PROPERTY INDEMNITY The Consultant shall defend and indemnify City, its agents, officers, representatives and employees against any and all liability, including costs, for infringement of any United States' letters patent, trademark, or copyright infringement, including costs, contained in Consultant's drawings and specifications provided under this Agreement. 10 0 0 22. RECORDS Consultant shall keep records and invoices in connection with the work to be performed under this Agreement. Consultant shall maintain complete and accurate records with respect to the costs incurred under this Agreement and any services, expenditures and disbursements charged to City, for a minimum period of three (3) years, or for any longer period required by law, from the date of final payment to Consultant under this Agreement. All such records and invoices shall be clearly identifiable. Consultant shall allow a representative of City to examine, audit and make transcripts or copies of such records and invoices during regular business hours. Consultant shall allow inspection of all work, data, Documents, proceedings and activities related to the Agreement for a period of three (3) years from the date of final payment to Consultant under this Agreement. 23. WITHHOLDINGS City may withhold payment to Consultant of any disputed sums until satisfaction of the dispute with respect to such payment. Such withholding shall not be deemed to constitute a failure to pay according to the terms of this Agreement. Consultant shall not discontinue work as a result of such withholding. Consultant shall have an immediate right to appeal to the City Manager or his /her designee with respect to such disputed sums. Consultant shall be entitled to receive interest on any withheld sums at the rate of return that City earned on its investments during the time period, from the date of withholding of any amounts found to have been improperly withheld. 24. ERRORS AND OMISSIONS In the event of errors or omissions that are due to the negligence or professional inexperience of Consultant which result in expense to City greater than what would have resulted if there were not errors or omissions in the work accomplished by Consultant, the additional design, construction and /or restoration expense shall be borne by Consultant. Nothing in this paragraph is intended to limit City's rights under any other sections of this Agreement. 25. CITY'S RIGHT TO EMPLOY OTHER CONSULTANTS City reserves the right to employ other Consultants in connection with the Project. 26. CONFLICTS OF INTEREST The Consultant or its employees may be subject to the provisions of the California Political Reform Act of 1974 (the "Act "), which (1) requires such persons to disclose any financial interest that may foreseeably be materially affected by the work performed under this Agreement, and (2) prohibits such 11 0 0 persons from making, or participating in making, decisions that will foreseeably financially affect such interest. If subject to the Act, Consultant shall conform to all requirements of the Act. Failure to do so constitutes a material breach and is grounds for immediate termination of this Agreement by City. Consultant shall indemnify and hold harmless City for any and all claims for damages resulting from Consultant's violation of this Section.. 27. NOTICES All notices, demands, requests or approvals to be given under the terms of this Agreement shall be given in writing, to City by Consultant and conclusively shall be deemed served when delivered personally, or on the third business day after the deposit thereof in the United States mail, postage prepaid, first -class mail, addressed as hereinafter provided. All notices, demands, requests or approvals from Consultant to City shall be addressed to City at: Attn: Lloyd Dalton, PE Public Works Department City of Newport Beach 3300 Newport Boulevard Newport Beach, CA, 92663 Phone: 949 - 644 -3328 Fax: 949 - 644 -3308 All notices, demands, requests or approvals from CITY to Consultant shall be addressed to Consultant at: Attention: Jody Harris GKK Works 20411 SW Birch Street, Suite 300 Newport Beach, CA 92660 Phone: 949 - 250 -1500 Fax: 949 - 955 -2708 28. TERMINATION In the event that either party fails or refuses to perform any of the provisions of this Agreement at the time and in the manner required, that party shall be deemed in default in the performance of this Agreement. If such default is not cured within a period of two (2) calendar days, or if more than two (2) calendar days are reasonably required to cure the default and the defaulting party fails to give adequate assurance of due performance within two (2) calendar days after receipt of written notice of default, specifying the nature of such default and the steps necessary to cure such default, the non - defaulting party may terminate the Agreement forthwith by giving to the defaulting party written notice thereof. 12 0 i Notwithstanding the above provisions, City shall have the right, at its sole discretion and without cause, of terminating this Agreement at any time by giving seven (7) calendar days prior written notice to Consultant. In the event of termination under this Section, City shall pay Consultant for. services satisfactorily performed and costs incurred up to the effective date of termination for which Consultant has not been previously paid. On the effective date of termination, Consultant shall deliver to City all reports, Documents and other information developed or accumulated in the performance of this Agreement, whether in draft or final form. 29. COMPLIANCE WITH ALL LAWS Consultant shall at its own cost and expense comply with all statutes, ordinances, regulations and requirements of all governmental entities, including federal, state, county or municipal, whether now in force or hereinafter enacted. In addition, all work prepared by Consultant shall conform to applicable City, county, state and federal laws, rules, regulations and permit requirements and be subject to approval of the Project Administrator and City. 30. WAIVER A waiver by either party of any breach, of any term, covenant or condition contained herein shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant or condition contained herein, whether of the same or a different character. 31. INTEGRATED CONTRACT This Agreement represents the full and complete understanding of every kind or nature whatsoever between the parties hereto, and all preliminary negotiations and agreements of whatsoever kind or nature are merged herein. No verbal agreement or implied covenant shall be held to vary the provisions herein. 32. CONFLICTS OR INCONSISTENCIES In the event there are any conflicts or inconsistencies between this Agreement and the Scope of Services or any other attachments attached hereto, the terms of this Agreement shall govern. 33. AMENDMENTS This Agreement may be modified or amended only by a written document executed by both Consultant and City and approved as to form by the City Attorney. 13 0 • 34. SEVERABILITY If any term or portion of this Agreement is held to be invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions of this Agreement shall continue in full force and effect. 35. CONTROLLING LAW AND VENUE The laws of the State of California shall govern this Agreement and all matters relating to it and any action brought relating to this Agreement shall be adjudicated in a court of competent jurisdiction in the County of Orange. 36. EQUAL OPPORTUNITY EMPLOYMENT Consultant represents that it is an equal opportunity employer and it shall not discriminate against any subcontractor, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex or age. IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on the day and year first written above. APPROVED AS TO FORM: By: Aaron C. Harp Assistant City Attorney ATTEST: LaVonne Harkless, City Clerk CITY OF NEWPORT BEACH, A Municipal Corporation By: Mayor for the City of Newport Beach GKK WORKS: By: (Corporate Officer) Title: Print Name: By: Title: (Financial Officer) Print Name: Attachments: Exhibit A — Scope of Services Exhibit B — Schedule of Billing Rates F: 1Users\PBW\Shared\AgreementslFY 05- 061GKK Works- Np(CoastCommCtr.doc 14 0 0 Exhibit A gkkwork.s. April 14, 2006 Mr. Lloyd R. Dalton, PE Design Engineer City of Newport Beach 3380 Newport Blvd. Newport Beach, CA 92663 Re: CM Services Proposal - Revised I Newport Coast Community Center and the Santa Ana Heights Fire Station and Training Facility Dear Lloyd: Per your request, gkkworks is pleased to submit our proposal to provide Construction Management Consulting Services for the Newport Coast Community Center and the Santa Ana Heights Fire Station and Training Facility. This is an exciting opportunity and we thank you in advance for your consideration. The following is a breakdown of the services we are proposing to provide: Construction Phase • Manage the Contractors' monthly updates for logic, work item timeframes, and contract compliance, and negotiate necessary changes in order to maintain schedule and performance • Review contractor's Requests for information (RFI's), shop drawings, samples and submittals, and prior to submitting to the Architect, will comment on their constructability, cost, effects on budget and schedule, clarity, consistency and completeness • Review change order requests for completeness, accuracy, and justifiability, negotiate final cost and process any contractor change orders • Develop and update a change order report for the use of the City and the Architect • Insure that the contractor understands the City's construction policies and procedures • Manage the contractor and other consultants and take the lead role in solving field problems • Maintain jobsite records, including photographs and videos to document the contractor's progress, quality and conformance with the contract documents • Review, verify and approve the contractor's monthly pay requests • Review as -built drawings on a monthly basis, insuring the contractor inserts necessary updated information 20411 SW Birch Street I SUite 3001 NEWPOkr BEACH I CA 92660 949.250.1500 1949.9552708 fa. I www.akkwarks.com 0 0 gkkwork.s. • Develop and monitor the, quality of construction, insuring against defects and deficiency in the contractor's work. Any nonconforming work will be documented and issued to the city and to the contractor • Develop a. project punch list and insure that all punch list items are completed within a timely manner • Monitor the contractor's mandated jobsite safety program • Act as the City's site quality control representative • Review the work in place for conformance with the contract documents (review materials delivered to site to insure they match with approved shop drawings and submittals) • Manage field testing on materials in place to insure compliance with the contract documents (i.e. flood testing of roof, water testing of window wall systems) • Manage testing and inspection company as they test construction materials to verify compliance with the contract documents. This includes building pad compaction testing, footing inspections, reviewing the utility trench backfill and testing, parking area subgrade testing, asphalt testing, retaining wall backfill compaction testing, street improvements subgrade testing, street improvements utility trench backfill and testing, concrete testing and inspections, structural steel testing and inspections, and masonry testing and Inspections. • Provide site construction surveys to verify lines and grades with the contract documents Close -Out Phase • Obtain final as -built drawings, review and cause any corrections to be made prior to submittal to the city • Prepare 'a final project report, which will include a financial report, summary of change orders, final schedule analysis, and a report on the general contractor, subcontractors and suppliers. • Manage the assembly of the General Contractor's Operations and Maintenance manuals, review for completeness, cause any necessary corrections, approve and submit to the city The following is gkkworks breakdown of costs not to exceed: 1. The cost to complete Construction Management Services for the Santa Ana Fire Station and Training Facility is $273,077. 2. The cost to complete Construction Management Services for the Newport Coast Community Center is $374,334. 3. Should we be awarded both contracts and they run concurrently, the cost to complete Construction Management Services is $539,111. The savings realized under this option comes from the sharing of administrative services and management oversight. In all cases, each project will be managed by the Project Manager, or the Sr. Project Manager with appropriate support staff (scheduling, cost estimating, etc) as needed (please refer 20411 SW Birch Street I Suite 3001 NEWPORT BEACH I CA 92660 949.250.1500 1949.9552708 Fax I M'W W.qkkWqft.cOrr, 0 0 gkkwork.s. to our previously proposed Staffing Approach). We recommend that any staggering of the pre- construction /kick -off meetings be limited to a time -frame of 25 working days. This will minimize the overlap time, and alleviate additional oversight, administrative, and support services time and costs added to the projects. 4. Attached is an hourly rate chart for additional services outside our scope of work (i.e. installation of FF&E, furniture purchase, telephone system purchase, move management). gkkworks will provide management and coordinate of testing and surveys on behalf of the City. gkkworks is being hired to manage the general contractor to complete construction by stipulated contract dates. Should the city extend the general contractor additional days to the contract (i.e. rain delays), gkkworks would then expect the same extension of time to our contract. However, should an extension of time occur due to the fault of the general contractor, gkkworks would then look to the general contractor for compensation, through a deductive change order. Due to changes in the initial scheduling of these two projects, we have had to reassign two of the team members previously presented. However, Charlie Merrick remains as Principal - In- Charge, and we propose Mr. Steve Dunn as our Sr. Project Manager, and Mr. Jerry Fuentes as our Project Manager, both of whom bring outstanding management skills and construction knowledge to the project. Please see their attached resumes for your review and approval. Mr. Dunn has also previously served as Chairman of the Police and Fire Commissions for the City of Oceanside, and is well suited for this endeavor. You have my personal commitment that the gkkworks team will meet your needs and exceed your expectations. If you have any questions or require additional information, please contact me and I'll be happy to accommodate you! Most Sincerely, gkkworks Jody Harris Director of Business Development Cc: Mark Brown - Director of Operations file 20411 SW Birch Street I Suite 3001 NEWPOm BEACH I CA 92660 949.250.1500 1949.9552708 fax I www.gkkworksxom 0 0 SCHEDULE OF HOURLY RATES Exhibit B PR03ECT MANAGEMENT SERVICES Principal.......................................................................................... ............................... $165 OperationsManager .......................................................................... ............................... $160 Sr. Project Manager .......................................................................... ............................... $150 ProjectManager .................................................... ............................... ...........................$125 ProjectEngineer .................................................... ............................... ...........................$100 General Superintendent .......................................... ............................... ...........................$150 Superintendent................................................................................ ............................... $135 SeniorEstimator .............................................................................. ............................... $140 Estimator........................................................................................ ............................... $115 Scheduler........................................................................................ ............................... $115 Safety............................................................................................. ............................... $100 Administrative.................................................................................... ............................... $65 HOURLY RATE INCLUSIONS REIMBURSABLES Items Included in our hourly rates: The following are reimbursable items • Wages • Room and board costs for overnight stays • Fringe benefits and payroll taxes Permits and fees • Workers compensation insurance Plan check fees • Cell phone costs • Architecture or engineering costs • Computers and computer software • Hazardous materials inspection, testing or • Main office overhead costs abatement • Profit Payment and performance bonds • Business license i • Office supplies • Progress photographs • Mileage • Office Trailer • Postage • Copier Expense These rates are good thru the end of the contract for the Newport Coast Community Center and the Santa Ana Heights Fire Station and Training Facility projects. m