Subject: TUERS-CAPITOL GOLF COURSE PROJECT –
CONSULTANT AGREEMENT AMENDMENT
COUNCIL DISTRICT: 7
The
agreement amendment is necessary so that construction management services for
the golf course project may continue without interruption. Funding for this amendment was included in
the additional appropriation authorized by the City Council on June 5, 2001.
Approval of an amendment to the agreement
for consultant services with Heinbuch Golf, LLC to continue providing
construction management services for the Tuers-Capitol Golf Course Project,
increasing compensation by $200,000 for a total maximum compensation of
$725,000.
The Tuers-Capitol Golf Course Project is
currently under construction and when completed, will consist of an 18-hole
golf course, clubhouse and pro shop, driving range, parking area and
maintenance facility. The project site
is adjacent to Coyote Creek and is bounded by Tuers Road to the east, Capitol
Expressway to the south, Lone Bluff Way to the west, and Stonegate Park and
PG&E property to the north (map attached).
The estimated completion date of construction is September, 2001.
On September 7, 2000, the City entered into
an agreement with Gary Heinbuch, doing business as Heinbuch Golf Construction,
to provide construction management services for the golf course project. The scope of services includes providing
full-time, on-site staff to manage the construction of the project. The total compensation of the agreement is
$525,000. Some of the tasks the
consultant performs include coordinating responses to correspondence,
monitoring the construction progress, documenting construction meetings, and
working with City staff and the contractor to ensure that the project is
constructed in accordance with the approved construction documents.
On June 5, 2001, the City Council approved
additional funding for additional costs to construct the golf course facilities
and to initiate its operation. Included
among the additional costs that were funded is a cost for additional consultant
fees.
ANALYSIS
The
proposed amendment provides additional compensation to the consultant for the
following additional services:
|
Description |
Additional
Compensation |
|
1.
Extension of construction management services due to expansion of
construction contract schedule |
$112,750 |
|
2.
Increase in reimbursable budget due to expansion of schedule. |
$ 35,000 |
|
3.
Addition of subconsultants for archaeological services and welding
inspection. |
$ 25,000 |
|
4.
Additional services for unforeseen needs. |
$ 27,250 |
|
Subtotal |
$200,000 |
When
the original scope of services was negotiated, the construction contract
completion date was projected to be June 1, 2001, and the cost of services
reflected this date. Since the payment
terms of the original agreement are based on the construction progress and not
on an hourly fee schedule, the completion date is an essential factor in
determining compensation. The base
budget was sufficient to cover the services through the original completion
date of June 1, 2001, and additional compensation is recommended to extend the
services to the actual construction completion date. The current anticipated completion date is late September 2001.
Since
the reimbursable expenses incurred by the consultant are also dependent on the
timeframe for performance of the services, an increase in this budget is
recommended to cover the additional reimbursable expenses due to the expansion
of the schedule.
After
commencement of construction, additional services were identified for specialty
inspection firms in order to monitor the construction activities. The services consist of archaeological
monitoring and structural steel inspection.
The scope of these services is greater than the additional services
budget of the original agreement.
It
is recommended that an additional services budget be retained in the amount of
$27,250 to cover any unforeseen needs that may arise prior to the completion of
construction.
In
summary, staff recommends approval of the amendment to the agreement with
Heinbuch Golf, LLC and to increase compensation by $200,000 in order to
continue providing construction management services for the Tuers-Capitol Golf
Course Project. Approval of the
recommendation will not increase the cost of the project since funds for this
item were included in the additional funds authorized by City Council on June
5, 2001.
The
City of San José advertised in the San
José Post Record and sent Requests for Qualifications to a standard list of
various contractor organizations, builder’s exchanges, and disadvantaged
business organizations, including United Minority Business Enterprises and the
San José Minority Business Development Center.
This proposed project has been
coordinated with the Departments of Conventions, Arts and Entertainment, Parks,
Recreation and Neighborhood Services, Planning, Building and Code Enforcement,
Finance, Environmental Services, Fire, and Streets and Traffic; and the Offices
of the City Manager and the City Attorney.
1. COST
OF RECOMMENDATION: $200,000
2. COST OF CONSULTANT SERVICES:
Contract Management 50,000
3. SOURCE
OF FUNDING: 518- Municipal Golf Course
Fund
4. START DATE OF AGREEMENT: September, 2000
5. ESTIMATED
COMPLETION DATE OF AGREEMENT: June,
2002