COUNTY OF SAN MATEO

Inter-Departmental Correspondence

Department of Public Works

DATE:

June 10, 2008

BOARD MEETING DATE:

June 17, 2008

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

Majority

TO:

Honorable Board of Supervisors

FROM:

James C. Porter, Director of Public Works

SUBJECT:

AMENDMENT TO THE AGREEMENT WITH ENGINEERING ECONOMICS, INC. TO INCREASE THE AMOUNT BY $40,000

RECOMMENDATION:

Adopt a resolution:

1.

Authorizing a third Amendment to the Agreement with Engineering Economics, Inc. to provide continuing commissioning services for the Youth Services Center (YSC), increasing the not to exceed fee by $40,000 from $270,831 to $310,831 and extending the term of the contract from June 30, 2007 to December 31, 2008; and

2.

Making a finding that it is in the best interest of the County to waive the Request for Proposal process for this extension.

VISION ALIGNMENT:

Commitment: Ensure basic health and safety for all.

Goal 8: Help vulnerable people – the aged, disabled, mentally ill, at-risk youth and others – achieve a better quality of life.

This project contributes to the commitment and goal by completing a project that has consolidated youth services in one location in a new state of the art facility to benefit youth, families, staff, and the community.

BACKGROUND:

On November 12, 2002 the Board adopted Resolution 065673 authorizing an agreement with Engineering Economics, Inc. (EEI) for $191,739, to conduct Fundamental Building Systems Commissioning as required for LEED (Leadership in Energy and Environmental Design) certification, act as a third party commissioning agent, and represent the County during the design and construction of the YSC.

On August 15, 2006 the Board adopted Resolution 068206 authorizing Amendment One which increased the contract amount by $42,372.

On February 13, 2007 the Board adopted Resolution 068542 authorizing Amendment Two which increased the contract amount by $36,720 and extended the time period to June 30, 2007.

DISCUSSION:

The estimate for commissioning was established in September 2002 based on the operational program. As the design progressed, it became apparent that revisions to the initial commissioning estimate would be needed because of the additional equipment specified. The final design included many freestanding buildings, an absorption chiller, cogeneration, and more individual units of mechanical equipment than what was initially envisioned. Additional funds have been included in the Amendment as a contingency if needed to confirm all building systems are properly functioning and to resolve any additional issues that may be identified. Funding to pay for this amendment is available in the amount reserved for contingencies that was part of the overall budget for the construction of the YSC.

This Agreement extension has not been developed until this time because Turner Construction, which was the contractor that constructed the facility, is still working on the punch list items. EEI has therefore not been able to complete the commissioning process. The additional extension of time can now be processed because it is anticipated that sufficient progress will be made on these issues shortly, and there is more known about the work that is needed for completion of the project.

This amendment will extend the total length of the agreement beyond three years. Therefore it is also recommended that the Board make a finding that it is in the best interest of the County to waive the Request for Proposal process for this extension. EEI was involved with the construction project from its inception and is therefore extremely familiar with the items that were not completed. Public Works has determined that it would be more cost effective to continue to work with EEI to resolve these issues instead of conducting another RFP process. Such a process would create additional delays that we cannot afford given that the Center is already occupied. Furthermore, any new contractor would require significant time and expense to get up to speed on the problems associated with this project.

FISCAL IMPACT:

This Amendment will increase the total contract amount with Engineering Economics, Inc. by $40,000 for a new grand total of $310,831. The entire budget for the construction of the Youth Services Center is $148,203,000. This project is funded by the sale of lease revenue bonds and a Federal grant. This action does not affect the project budget. There are sufficient funds in the project budget to pay for the added cost under this amendment.