24 - CONSTRUCTION INSPECTIONS - Laserfiche WebLink

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Item No. 24 memorandum TO: Mayor & City Council FROM: John Godwin, City Manager SUBJECT: CONSTRUCTION INSPECTIONS DATE: November 9, 2015 BACKGROUND: In July the city council instructed staff to create an RFP for inspection services. On August 31 four firms were interviewed by the council, and Lochner was selected as the preferred vendor. Following the receipt of a proposed scope of work and pricing, we began negotiating a final contract. STATUS OF ISSUE: The initial proposal from Lochner was for $1,730,592, which we thought was significantly too high, and included some project management tasks. Although we understood Lochner's desire to provide more management over a project for which they would be responsible for all inspections, we could not justify the added expense and duplication of effort. After a couple of rounds of meetings, Lochner reduced their proposal to $1,477,320. More recently, we succeeded in reducing their price a bit more, down to an amount not to exceed $1,353,934. The "amount not to exceed" is especially important in this case since we fully expect to manage the project tightly enough that they will not need to use all the hours projected. At this point, the cost to review B -1 is $15,878, the cost for B -2 (which is underway) is $127,695, and the cost for Package 4 (the bid for which opens on November 17) is $968,378. Reimbursable expenses, such as lodging meals, mileage, etc. total another $242,058. Another issue over which we have expressed concern is the specific Lochner personnel proposed to do the actual work. We requested and reviewed their resumes, and although they are highly qualified inspectors, almost all of their work has been on roads and bridges, with utilities as only a tangential part of their work. We have agreed to use them initially, but have advised Lochner that we reserve the right to require the replacement of one or the other, or both. BUDGET: Will be paid from 2013 bond proceeds. RECOMMENDATION: Approve agreement for inspection services with H. W. Lochner, Inc. in an amount not to exceed $1,353,934.45.