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HomeMy WebLinkAboutContract 1649 AGREEMENT BETWEEN THE CITY OF COLUMBIA HEIGHTS AND URS CORPORATION FOR PROFESSIONAL ENGINEERING SERVICES THIS IS AN AGREEMENT made as of March I ~', 2002, between the City of Columbia Heights, a municipal corporation of the State of Minnesota ("CITY") with an office at 637 - 38th Avenue N.E. Columbia Heights, MN 55421, and URS Corporation, a Nevada corporation ("ENGINEER") with an office at 700 Third Street South, Minneapolis, MN, 55415. CITY intends to secure professional consulting engineering and/or land survey services for the Central Avenue (TH 65) Improvement Project and University Avenue Internally Lit Signs Project (City Project Nos. 99-12, 99-12A and 99-20) (referred to herein as the "Project"), subject to and according to the terms of this Agreement. Services shall commence upon ENGINEER's receipt of an executed copy of this Agreement from the CITY. CITY and ENGINEER in consideration of their mutual covenants herein agree in respect of the performance or furnishing of professional engineering services by ENGINEER with respect to the Project and the payment for those services by CITY as set forth below. This Agreement will become effective on the date first above written. SECTION 1 - SERVICES OF ENGINEER 1.1 GENERAL ENGINEER shall provide for CITY professional services, either as Basic or Additional Services, in the Construction phase of the Project to which this Agreement applies as hereinafter provided. The services will include serving as CITY's professional engineering representative for the Project, providing engineering consultation and advice and furnishing customary general municipal engineering, land surveying, wetlands and drainage, geotechnical, and traffic and transportation engineering and other engineering services thereto. ENGINEER is an independent provider of professional engineering and/or land surveying services, responsible for the means and methods used in performing ENGINEER's services pursuant to this Agreement. A detailed scope of work, estimated cost and schedule for the .,i services to be performed under this~eement are detailed in the attached letter proposal dated February 8, 2002! ~ SECTION 2 - BASIC SERVICES OF ENGINEER 2.1 PROFESSIONAL SURVEY SERVICES 2.1.1 When providing construction staking services, ENGINEER shall set one set of stakes only for each task. Any re-staking or staking for tasks or areas not identified in the Agreement shall be performed as an Additional Service. Re-staking or additional staking will only commence when requested by CITY. 2.1.2 ENGINEER assumes no liability or responsibility for the disturbance of any stakes subsequent to the survey crew leaving the work site or where insufficient original stakes remain to be used in verifying the staking. 2.2 CONSTRUCTION PHASE During the Construction Phase, CITY may authorize ENGINEER to perform one or more of the following services: 2.2.1 General Administr_ation of Construction Contract. ENGINEER shall consult with and advise CITY and act as CITY's representative. All of CITY's instructions to Contractor(s) will be issued through ENGINEER who will have authority to act on behalf of CITY to the extent provided in URS's General Conditions to the Construction Contract except as otherwise provided in writing. URS's General Conditions to the Construction CONSTRUCTION_COLUMBIA HEIGHTS. DOC 1 March 1, 2002 Contract shall not be modified except to the extent provided in any Supplemental Agreement without the written agreement of the ENGINEER. 2.2.2 Visits to Site and Obsera,ation of Construction. In connection with observations of the work of Contractor(s) while it is in progress: 2.2.2.1 ENGINEER shall make visits to the site at intervals appropriate to the various stages of construction as ENGINEER deems necessary in order to observe as an experienced and qualified design professional the progress and quality of the various aspects of Contractor(s)' work. In addition, if requested by CITY, ENGINEER shall provide the services of a Resident Project Representative (and assistants as agreed) at the site to assist ENGINEER and to provide more continuous observation of such work. Based on information obtained during such visits and on such observations, ENGINEER shall endeavor to determine in general if such work is proceeding in accordance with the Contract Documents and ENGINEER shall keep CITY informed of the progress of the work. 2.2.2.2. The Resident Project Representative (and any assistants) will be ENGINEER's agent or employee and under ENGINEER's supervision. The duties and responsibilities of the Resident Project Representative (and assistants) are set forth in Exhibit A, "Duties, Responsibilities and Limitations of Authority of the Resident Project Representative". 2.2.2.3 The purpose of ENGINEER's visits to the site and representation by the Resident Project Representative (and assistants, if any) at the site will be to enable ENGINEER to better carry out the duties and responsibilities assigned to and undertaken by ENGINEER during the Construction Phase, and, in addition, by the exercise of ENGINEER's efforts as an experienced and qualified design professional, to provide for CITY a greater degree of confidence that the completed work of Contractor(s) will conform in general to the Contract Documents and that the integrity of the design concept of the completed Project as reflected in the Contract Documents has been implemented and preserved by Contractor(s). On the other hand, ENGINEER shall not, during such visits or as a result of such observations of Contractor(s)' work in progress, supervise, direct or have control over Contractor(s)' work nor shall ENGINEER have authority over or responsibility for the means, methods, techniques, sequences or procedures of construction selected by Contractor(s), for safety precautions and programs incident to the work of Contractor(s) or for any failure of Contractor(s) to comply with laws, rules, regulations, ordinances, codes or orders applicable to Contractor(s)' furnishing and performing the work. Accordingly, ENGINEER neither guarantees the performance of any Contractor(s) nor assumes responsibility for any Contractor(s)' failure to furnish and perform its work in accordance with the Contract Documents. 2.2.3 If ENGINEER observes or otherwise becomes aware of defects or deficiencies in the work, or nonconformance to the Contract Documents, ENGINEER shall promptly give written notice thereof to CITY. 2.2.4 Defective Work. During such visits and on the basis of such observations, ENGINEER may disapprove of or reject Contractor(s)' work while it is in progress if ENGINEER believes that such work will not produce a completed Project that conforms generally to the Contract Documents or that it will prejudice the integrity of the design concept of the completed Project as indicated in the Contract Documents. 2.2.5 Clarifications and b~terpretations ENGINEER shall issue necessary clarifications and interpretations of the Contract Documents and in connection therewith prepare work directive changes and change orders as required for CITY's approval. 2.2.6 Shop Drawings. ENGINEER shall review and approve (or take other appropriate action in respect of) Shop Drawings, samples and other data which Contractor(s) is required to submit, but only for conformance with the design concept of the Project and compliance with the information given in the Contract Documents. Such reviews and approvals or other action will not extend to means, methods, techniques, sequences or procedures of construction or to safety precautions and programs incident thereto. CONSTRUCTION_COLUMBIA HEIGHTS. DOC 2 March 1, 2002 2.2.7 Substitutes. ENGINEER shall evaluate and determine the acceptability of substitute or "or-equal" materials and equipment proposed by Contractor(s), but subject to the provisions of paragraph 2.2.8 bzspections and Tests. ENGINEER shall have the authority, as CITY's representative, to require special inspection or testing of the work, and shall receive and review all certificates of inspections, testings and approvals required by laws, rules, regulations, ordinances, codes, orders or the Contract Document (but only to determine generally that their content complies with the requirements of, and the results certified indicate compliance with, the Contract Documents). ENGINEER shall be entitled to rely on the results of such tests. 2.2.9 Disputes between CITY and Contractor(s). ENGINEER shall act as initial interpreter of the requirements of the Contract Documents and judge of the acceptability of the work thereunder and make decisions on all claims of CITY and Contractor(s) relating to the acceptability of the work or the interpretation of the requirements of the Contract Documents pertaining to the execution and progress of the work. ENGINEER shall respond to all written claims submitted by Contractor(s) in a timely fashion. ENGINEER shall not be liable for the results of any such interpretations or decisions rendered in good faith. 2.2.10 Applications for Payment. Based on ENGINEER's on-site observations as an experienced and qualified design professional, on information provided by the Resident Project Representative and on review of applications for payment and the accompanying data and schedules: 2.2.11 Contractor(s)' Completion Documents. ENGINEER shall receive and review maintenance and operating instructions, schedules, guarantees, bonds and certificates of inspection, test and approvals which are to be assembled by Contractor(s) in accordance with the Contract Documents (but such review will only be to determine that their content complies with the requirements of, and in the case of certificates of inspection, tests and approvals the results certified indicate compliance with, the Contract Documents); and shall transmit them to CITY with written comments. 2.2.12 IJ~spections. ENGINEER shall conduct an inspection to determine if the work is substantially complete and a final inspection to determine if the completed work is acceptable so that ENGINEER may recommend, in writing, final payment to Contractor(s) and give written notice to CITY and the Contractor(s) that the work is acceptable (subject to any conditions therein expressed), but any such recommendation and notice will be subject to the limitations expressed in paragraph 3.4.10. 2.2.13 As-Built Drawings. Upon completion of the Construction Phase, ENGINEER shall prepare a set of reproducible record prints of Drawings showing those changes made during the construction process, based on the marked-up prints, drawings and other data furnished by Contractor(s) and such records maintained by ENGINEER during the Construction Phase. ENGINEER will not be responsible for any errors or omissions in the information provided by Contractor(s) that is incorporated in the record drawings and record documents. Final payment to ENGINEER will be made only after record drawings are received by CITY. 2.2.14 Limitation of Responsibilities. ENGINEER shall not be responsible for the acts or omissions of any Contractor(s), or of any subcontractor or supplier, or an of the Contractor(s)' or subcontractors' or suppliers' agents or employees of any other persons (except ENGINEER's own employees and agents) at the site or otherwise furnishing or performing any of the Contractor(s)' work; however, nothing contained in paragraphs 3.4.1 through 3.4.7 inclusive, shall be construed to release ENGINEER from liability for failure to properly perform duties and responsibilities assumed by ENGINEER in the Contract Documents. 2.3 REQUIRED ADDITIONAL SERVICES As circumstances may require during the Construction Phase, and when required by the Contract Documents in circumstances beyond ENGINEER's control, ENGINEER shall furnish or obtain from others without waiting for specific authorization for CITY, Additional Services of the types listed in paragraphs 2.3.1 through 2.3.6, inclusive. These services are not included as part of Basic Services except to the extent provided otherwise by the CONSTRUCTION_COLUMBIA HEIGHTS. DOC 3 March 1, 2002 Agreement. ENGINEER shall advise CITY promptly after starting any such Additional Services which will be paid for by CITY as indicated in Section 5. 2.3.1 Services in connection with work directive changes and change orders to reflect changes requested by CITY if the resulting change in compensation for Basic Services is not commensurate with the Additional Services rendered. 2.3.2 Services in making revisions to Drawings and Specifications occasioned by the acceptance of substitutions proposed by Contractor(s); and services after the award to each contract in evaluating and determining the acceptability of an unreasonable or excessive number of substitutions proposed by Contractor(s). 2.3.3 Services resulting from significant delays, changes or price increases occurring as a direct or indirect result of material, equipment or energy shortages. 2.3.4 Additional or extended services during construction made necessary by (1) work damaged by fire or other cause during construction, (2) a significant amount of defective or neglected work of any Contractor(s), (3) acceleration of the progress schedule involving services beyond normal working hours, and (4) default by any Contractor(s). 2.3.5 Services in connection with any partial use of any part of the Project by CITY prior to Substantial Completion. 2.3.6 Evaluating an unreasonable or extensive number of claims submitted by Contractor(s) or others in connection with the work. SECTION 3 - CITY'S RESPONSIBILITIES CITY shall do the following in a timely manner so as not to delay the services of ENGINEER: 3.1 Designate in writing a person to act as CITY's representative with respect to the services to be rendered under this Agreement. Such person will have complete authority to transmit instructions, receive information, interpret and define CITY's policies and decisions with respect to ENGINEER's services for the Project. 3.2 Provide criteria and information as to CITY's requirements for the Project, including design objectives and constraints, space, capacity and performance requirements, flexibility and expendability, and any budgetary limitations; and furnish copies of all design and construction standards which CITY will require to be included in the Drawings and Specifications. 3.3 Assist ENGINEER by placing at ENGINEER's disposal all available information pertinent to the Project including previous reports and any other data relative to design or construction of the Project. 3.4 Furnish to ENGINEER, as required for performance of ENGINEER's Basic Services except to the extent provided otherwise as indicated in the Agreement, the following: 3.4.1 Data prepared by or services of others, including without limitation, borings, probings and subsurface explorations, hydrographic surveys, laboratory tests and inspection of samples, materials and equipment; 3.4.2 Appropriate professional interpretations of all of the foregoing; 3.4.3 Environmental assessments and impact statements; CONSTRUCTION_COLUMBIA HEIGHTS. DOC 4 March 1, 2002 3.4.4 Property, boundary, easement, right-of-way, topographic and utility surveys; 3.4.5 Property descriptions; 3.4.6 Zoning, deed and other land use restrictions; and 3.4.7 Other special data or consultations not covered in Section 2. CITY shall be responsible for, and ENGINEER may rely upon, the accuracy and completeness of all reports, data and other information furnished pursuant to this paragraph. ENGINEER may use such reports, data and information in performing or furnishing services under this Agreement. 3.5 Provide engineering surveys, or authorize ENGINEER to establish reference points for construction to enable Contractor(s) to proceed with the layout of the work. 3.6 Arrange for access to and make all provisions for ENGINEER to enter upon public and private property as required for ENGINEER to perform services under this Agreement. 3.7 Examine all studies, reports, sketches, Drawings, Specifications, proposals and other documents presented by ENGINEER. Obtain advice of an attorney, insurance counselor and other consultants as CITY deems appropriate for such examination and render in writing decisions pertaining thereto within a reasonable time so as not to delay the services of ENGINEER. 3.8 Furnish approvals and permits from all governmental authorities having jurisdiction over the Project and such approvals and consents from others as may be necessary for completion of the Project. 3.9 Provide such accounting, independent cost estimating and insurance counseling services as may be required for the Project, such legal services as CITY may require or ENGINEER may reasonably request with regard to legal issues pertaining to the Project including any that may be raised by Contractor(s), such auditing service as CITY may require to ascertain how and for what purpose any Contractor(s) has used the monies paid under the construction contract, and such inspection services as CITY may require to ascertain that Contractor(s) are complying with any law, rule, regulations, ordinance, code or order applicable to their furnishing and performing the work. 3.10 If CITY designates a person to represent CITY at the site who is not ENGINEER or ENGINEER's agent or employee, the duties, responsibilities and limitations of authority of such other person and the affect thereof on the duties and responsibilities of ENGINEER and the Resident Project Representative (and any assistants) will be set forth in an exhibit that is to be identified, attached to and made a part of this Agreement before such services begin. 3.11 If more than one prime contract is to be awarded for construction, materials, equipment and services for the entire Project, designate a person or organization to have authority and responsibility for coordinating the activities among the various prime contractors. 3.12 Furnish to ENGINEER data or estimated figures as to CITY's anticipated costs for services to be provided by others for CITY (such as services pursuant to paragraphs 3.7 through 3.11, inclusive) so that ENGINEER may make the necessary findings to support opinions of probable Total Project Costs. 3.13 Attend the pre-bid conference, bid opening, pre-construction conferences, construction progress and other job-related meetings and Substantial Completion and final payment inspections. CONSTRUCTION_COLUMBIA HEIGHTS. DOC 5 March 1, 2002 3.14 Give prompt written notice to ENGINEER whenever CITY observes or otherwise becomes aware of any development that affects the scope or timing of ENGINEER's services, or any defect or nonconformance in the work of any Contractor(s). 3.15 Furnish, or direct ENGINEER to provide, Additional Services as stipulated in paragraph 2.3 of this Agreement or other services as required. 3.16 Bear all costs incident to compliance with the requirements of this Section 3. SECTION 4 - PERIODS OF SERVICES The provisions of this Section 4 and the various rates of compensation for ENGINEER's services provided for elsewhere in this Agreement have been agreed to in anticipation of the orderly and continuous progress of the Project through completion of the Construction Phase. ENGINEER's obligation to render services hereunder will extend for a period which may reasonably be required for the design, award of contracts, construction and initial operation of the Project including extra work and required extensions thereto. 4.1 ENGINEER's Basic Services for each phase, shall each be considered complete at the earlier of (1) the date when the submissions for that phase have been accepted by CITY, or (2) thirty (30) days after the date when such submissions are delivered to CITY for final acceptance, plus in each case such additional time as may be considered reasonable for obtaining approval of governmental authorities having jurisdiction to approve the design of the Project. 4.2. If CITY has request for significant modifications or changes in the general scope, extent or character of the Project, the time of performance of ENGINEER's services shall be adjusted accordingly. 4.3. If ENGINEER's services during construction of the Project are delayed or suspended in whole or in part by CITY for more than three (3) months for reasons beyond ENGINEER's control, ENGINEER shall on written demand to CITY (but without termination of this Agreement) be paid as provided in paragraph 5.2. If such delay or suspension extends for more than one year for reasons beyond ENGINEER's control, or if ENGINEER for any reason is required to render Construction Phase services in respect of any prime contract for construction, materials or equipment more than one year after Substantial Completion is achieved under that Project, the various rates of compensation provided for elsewhere in this Agreement shall be subject to equitable adjustment. SECTION 5 - PAYMENTS TO ENGINEER 5.1 GENERAL 5.1.1 For Basic and Additional Services provided by independent professional associates and consultants retained by ENGINEER, CITY shall pay ENGINEER the amount billed to ENGINEER therefor times a factor of 1.0, unless otherwise agreed in this Agreement. 5.1.2 For reimbursable expenses, CITY shall pay ENGINEER the amount billed to ENGINEER therefor times a factor of 1.0, unless otherwise agreed in this Agreement. 5.2 METHODS OF PAYMENT FOR BASIC SERVICES OF ENGINEER 5.2.1 For Basic Services CITY shall pay ENGINEER on the basis of Engineer's Hourly Costs, attached hereto as Exhibit B, "URS's Hourly Costs" plus reimbursable expenses. CONSTRUCTION_COLUMBIA HEIGHTS. DOC 6 March 1, 2002 5.3 METHODS OF PAYMENT FOR ADDITIONAL SERVICES OF ENGINEER For Additional Services City shall pay ENGINEER on the basis of ENGINEER's Hourly Costs, attached hereto as Exhibit B, "URS's Hourly Costs" plus reimbursable expenses. 5.4 TIMES OF PAYMENTS 5.4.1 ENGINEER shall submit monthly statements for Basic and Additional Services rendered and for Reimbursable Expenses incurred. The statements will be based upon ENGINEER's estimate of the proportion of the total services actually completed at the time of billing. CITY shall make prompt monthly payments in response to ENGINEER's monthly statements. 5.5 OTHER PROVISIONS CONCERNING PAYMENTS 5.5.1 If CITY fails to make any payment due ENGINEER for services and expenses within thirty (30) days after receipt of ENGINEER's statement therefor, the amounts due ENGINEER will be increased at the rate of one percent (1%) per month from said thirtieth day, and in addition, ENGINEER may, after giving seven (7) days' written notice to CITY, suspend services under this Agreement until ENGINEER has been paid in full all amounts due for services, expenses and charges. 5.5.2 In the event of termination by CITY under paragraph 8.1 upon the completion of any phase of Basic Services, progress payments due ENGINEER for services rendered through such phase shall constitute total payment for such services. In the event of such termination by CITY during any phase of the Basic Services, ENGINEER will be paid for services actually and necessarily rendered during that phase by ENGINEER's employees and principals directly engaged on the Project, on the basis of ENGINEER's Hourly Costs stated in Exhibit B to the date of termination. 5.5.3 In the event of any such termination, ENGINEER will also be reimbursed for the reasonable charges of independent professional associates and consultants retained by ENGINEER to render such services, and paid for all unpaid Basic and Additional Services, Reimbursable Expenses, plus reasonable termination expenses. Termination expenses are additional Reimbursable Expenses directly attributable to termination, which if termination is at CITY's convenience, shall include an amount computed as a percentage of total compensation for Basic Services earned by ENGINEER to the date of termination, as follows: 5.5.4 Records of ENGINEER's Hourly Costs pertinent to ENGINEER's compensation under this Agreement will be kept in accordance with generally accepted accounting principles. Copies will be made available to CITY at cost on request prior to final payment for ENGINEER's services. 5.5.5 Whenever a factor is applied to Hourly Costs in determining compensation payable to ENGINEER that factor will be adjusted annually and equitably to reflect changes in the various elements that comprise such factor. All such adjustments will be in accordance with generally accepted accounting practices as applied on a consistent basis by ENGINEER and consistent with ENGINEER's overall compensation practices and procedures. 5.6 DEFINITIONS 5.6.1 The Hourly Costs used as a basis for payment means salaries and wages (basic and incentive) paid to all ENGINEER's personnel engaged directly on the Project, including, but not limited to, engineers, surveyors, designers, draftsmen, specification writers, estimators, other technical and business personnel; ?!us the zest ef group bcac. fits. For the purposes of this Agreement, ENGINEER's Hourly Costs are as shown on Exhibit B. CONSTRUCTION_COLUMBIA HEIGHTS. DOC 7 March 1, 2002 5.6.2 Reimbursable Expenses means the actual reasonable expenses incurred by ENGINEER or ENGINEER's independent professional associates or consultants, directly or indirectly in connection with the Project, such as expenses for: transportation and subsistence incidental thereto; obtaining bids or proposals from Contractor(s); providing and maintaining field office facilities including furnishings and utilities; subsistence and transportation of Resident Project Representatives and their assistants; toll telephone calls and telegrams; reproduction of reports, Drawings, Specifications, Bidding Documents, and similar Project-related items in addition to those required under Section 1; and, if authorized in advance by CITY, overtime work requiring higher than regular rates. SECTION 6 - CONSTRUCTION COST AND OPINIONS OF COST 6.1 CONSTRUCTION COST The construction cost of the entire Project (herein referred to as "Construction Cost") means the total cost to CITY of those portions of the entire Project designed and specified by ENGINEER, but it will not include indirect costs such as ENGINEER's compensation and expenses, the cost of land, rights-of-way, or compensation for or damages to properties unless so specified in this Agreement, nor will it include CITY's legal, accounting, insurance counseling or auditing services, or interest and financing charges incurred in connection with the Project or the cost of other services to be provided by others to CITY pursuant to paragraphs 3.7 through 3.11, inclusive. 6.2 OPINIONS OF COST 6.2.1 Since ENGINEER has no control over the cost of labor, materials, equipment or services furnished by others, or over the Contractor(s) methods of determining prices, or over competitive bidding or market conditions, ENGINEER's opinions of probable Total Project Costs and Construction Cost provided for herein are to be made on the basis of ENGINEER's experience and qualifications and represent ENGINEER's best judgement as an experienced and qualified professional engineer, familiar with the construction industry; but ENGINEER cannot and does not guarantee that proposals, bids or actual Total Project or Construction Costs will not vary from opinions of probable cost prepared by ENGINEER. If prior to the Bidding or Negotiating Phase, CITY wishes greater assurance as to Total Project or Construction Costs, CITY shall employ an independent cost estimator. 6.2.2 If a Construction Cost limit is established in this Agreement between CITY and ENGINEER, the following will apply: 6.2.2.1 The acceptance by CITY at any time during the Basic Services or Additional Services of a revised opinion of probable Total Project or Construction Costs in excess of the then established cost limit will constitute a corresponding revision in the Construction Cost limit to the extent indicated in such revised opinion. 6.2.2.2 Any Construction Cost so established will include a contingency of ten percent (10%) unless another amount is agreed upon in writing. 6.2.2.3 ENGINEER will be permitted to determine what types of materials, equipment and component systems are to be included in the Drawings and Specifications and to make reasonable adjustments in the general scope, extent and character of the Project to bring it within the cost limit. 6.2.2.4 If the Bidding or Negotiating Phase has not commenced within six (6) months after completion of the Final Design Phase, the established Construction Cost limit will not be binding on ENGINEER, and CITY shall consent to an adjustment in such cost limit commensurate with an applicable change in the general level of prices in the construction industry between the date of completion of the Final Design Phase and the date on which proposals or bids are sought. CONSTRUCTION_COLUMBIA HEIGHTS. DOC 8 March 1, 2002 6.2.2.5 If the lowest bona fide proposal or bid exceeds the established Construction Cost limit, CITY shall (1) give written approval to increase the cost limit, (2) authorize negotiating or rebidding the Project within a reasonable time, or (3) cooperate in revising the Project's general scope, extent or character to the extent consistent with the Project's requirements and with sound engineering practices. In the case of (3), ENGINEER shall modify the Contract Documents as necessary to bring the Construction Cost within the cost limits. In lieu of other compensation for services in making such modifications, CITY shall pay ENGINEER, ENGINEER's cost of such services, all overhead expenses reasonably related thereto and Reimbursable Expenses, but without profit to ENGINEER on account of such services. The providing of such services will be the limit of ENGINEER's responsibility in this regard and, having done so, ENGINEER shall be entitled to payment for services in accordance with this Agreement and will not otherwise be liable to damages attributable to the lowest bona fide proposal or bid exceeding the established Construction Cost. SECTION 7 - STANDARD OF CARE The standard of care for all professional engineering and related services performed or furnished by ENGINEER under this Agreement will be the care and skill ordinarily used by members of ENGINEER's profession practicing under similar conditions at the same time and in the same locality. ENGINEER makes no warranties, express or implied, under this Agreement or otherwise, in connection with ENGINEER's services. SECTION 8 - GENERAL CONDITIONS 8.1 TERMINATION The obligation to provide further services under this Agreement may be terminated by either party upon two days written notice in the event of substantial failure by the other party to perform in accordance with the terms hereof through no fault of the terminating party. 8.2 REUSE OF DOCUMENTS 8.2.1 All documents including Drawings and Specifications prepared or furnished by ENGINEER (and ENGINEER's independent professional associates and consultants) pursuant to this Agreement are instruments of service in respect of the Project, and the CITY will be provided with original record drawing copies for information and reference in connection with the use and occupancy of the by CITY and others; however, such documents are not intended or represented to be suitable for reuse by CITY or others on extensions of the Project or on any other project. Any reuse without written verification or adaptation by ENGINEER for the specific purpose intended will be at CITY's sole risk and without liability or legal exposure to ENGINEER, or to ENGINEER's independent professional associates or consultants, and CITY shall indemnify and hold harmless ENGINEER and ENGINEER's independent professional associates or consultants from all claims, damages, losses and expenses including attorney's fees arising out of or resulting therefrom. Any such verification or adaptation will entitle ENGINEER to further compensation at rates to be agreed upon by CITY and ENGINEER. CITY understands that any Work Products prepared or provided on electronic media have a limited duration and require use of compatible software and hardware, which may become unavailable over time. 8.2.2 When requested by CITY, ENGINEER shall provide relevant analyses, findings, reports and construction documents (plans, specifications and estimates) in "hard" copy, and in electronic form, where the Project necessitates the use of CADD materials. The parties agree that the "hard" copy shall govern in the case of a discrepancy between the two versions, and shall be held as the official set of drawings, as signed and sealed. 8.2.2.1 The CITY shall be afforded a period of thirty (30) days in which to check the hard copy against the electronic media. In the event that an error or inconsistency is found as a result of this process, the ENGINEER shall be advised and the inconsistency shall be corrected at no additional cost to the CITY. Following the expiration of this thirty-day period, the CITY shall bear all responsibility for the care, CONSTRUCTION_COLUMBIA HEIGHTS. DOC 9 March 1, 2002 custody and control of the electronic media. In addition, the CITY represents that it shall retain the necessary mechanisms to read the electronic media, which the CITY acknowledges to be of only limited duration. All title blocks and the engineer's seal, if applicable, shall be removed if and when the CITY provides the subject CADD drawings/electronic media to any other entity. The CITY agrees not to alter any such information provided by ENGINEER, nor shall it use such information for any purpose or project other than that intended by this Agreement. 8.3 INSURANCE 8.3.1 ENGINEER shall procure and maintain such insurance as will protect ENGINEER from claims under the Workers' Compensation Act. 8.3.2 ENGINEER shall secure and maintain a Professional Liability insurance policy. Said policy shall insure payment of damages for legal liability arising out of the performance of professional services for the CITY, in the insured's capacity as ENGINEER, if such legal liability is caused by an error, omission or negligent act of the insured or any person or organization for whom the insured is legally liable. Said policy shall provide minimum limits of $1,000,000 with a deductible maximum of $250,000; and shall state that such insurance cannot be canceled until thirty (30) days after the CITY has received written notice (upon request) of the insurer's intention to cancel this insurance. 8.3.3 ENGINEER shall procure and maintain General Liability insurance as will protect ENGINEER from claims for bodily injury, death and property damage in an annual aggregate of $1,000,000 with coverage for each occurrence of $1,000,000. CITY shall be named as an additional insured on such policy. 8.3.4 Before commencing its services, ENGINEER shall provide CITY certificates of insurance evidencing the required insurance coverage in a form acceptable to CITY. 8.3.5 At any time CITY may request that ENGINEER, at CITY's sole expense, provide additional insurance coverage, different limits or revised deductibles in excess of those specified above. If so requested by CITY, and if commercially available, ENGINEER shall obtain and shall require ENGINEER's independent professional associates and consultants to obtain such additional insurance coverage, different limits or revised deductibles, for such periods of time as requested by CITY, and this Agreement will be supplemented to incorporate these requirements. 8.4 INDEMNIFICATION 8.4.1 ENGINEER agrees, to the fullest extent permitted by law, to indemnify and hold harmless CITY, its officers, employees and agents from any claims, costs, losses and damages (including but not limited to all fees and charges of engineers, architects, attorneys and other professionals and all court or arbitration or other dispute resolution costs) to the extent caused by the negligent acts, errors or omissions of ENGINEER or ENGINEER's officers, directors, partners, employees, agents and ENGINEER's independent professional associates and consultants in the performance and furnishing of ENGINEER's services under this Agreement. 8.4.2 To the fullest extent permitted by law, CITY shall indemnify and hold harmless ENGINEER, ENGINEER's officers, directors, partners, employees and agents and ENGINEER's independent professional associates and consultants from and against any and all claims, costs, losses and damages (including but not limited to all fees and charges of engineers, architects, attorneys and other professionals and all court or arbitration or other dispute resolution costs) to the extent caused by the negligent acts or omissions of CITY or CITY's officers, employees, agents and CITY's consultants with respect to this Agreement. 8.5 CONTROLLING LAW This Agreement is to be governed by the laws of the State of Minnesota. CONSTRUCTION_COLUMBIA HEIGHTS. DOC 10 March 1, 2002 8.6 SUCCESSORS AND ASSIGNS 8.6.1 CITY and ENGINEER each is hereby bound and the partners, successors, executors, administrators and legal representatives of CITY and ENGINEER (and to the extent permitted by paragraph 8.6.2 the assigns of CITY and ENGINEER) are hereby bound to the other party to this Agreement and to the partners, successors, executors, administrators and legal representatives (and said assigns) of such other party, in respect of all covenants, agreements and obligations of this Agreement. 8.6.2 Neither CITY nor ENGINEER may assign, sublet or transfer any rights under or interest (including, but without limitation, moneys that may become due or moneys that are due) in this Agreement without the written consent of the other, except to the extent that any assignment, subletting or transfer is mandated by law or the effect of this limitation may be restricted by law. Unless specifically stated to the contrary in any written consent to an assignment, no assignment will release or discharge the assignor from any duty or responsibility under this Agreement. Nothing contained in this paragraph shall prevent ENGINEER from employing such independent professional associates and consultants as ENGINEER may deem appropriate to assist in the performance of services hereunder. 8.6.3 Nothing in this Agreement shall be construed to give any rights or benefits in this Agreement to anyone other than CITY and ENGINEER, and all duties and responsibilities undertaken pursuant to this Agreement will be for the sole and exclusive benefit of CITY and ENGINEER and not for the benefit of any other party. 8.7 COPYRIGHT ENGINEER shall defend actions or claims charging infringement of any copyright or patent by reason of the use or adoption of any designs, Drawings or Specifications supplied by it, and it shall hold harmless the CITY from losses or damages resulting therefrom. 8.8 DISPUTE RESOLUTION 8.8.1 CITY and ENGINEER agree to negotiate in good faith for a period of thirty days from the date of notice of all disputes between them prior to exercising their rights under other provisions of this Agreement, or under law. The parties agree that all disputes remaining unresolved after thirty days will be submitted to a mutually agreeable neutral mediator, as a condition precedent to litigation or other remedies provided by law. The fee and costs of the mediator shall be apportioned equally between the parties. CITY and ENGINEER further agree to consider including a similar mediation provision in all agreements with independent contractors and consultants regained for the Project and to require all independent contractors and consultants also to include a similar provision in all agreements with subcontractors, subconsultants, suppliers, or fabricators so retained. 8.8.2 Claims not resolved by nonbinding mediation or another form of alternative dispute resolution, counterclaims, disputes and other matters in question between the parties hereto arising out of or relating to this Agreement or the breach thereof will be decided by arbitration in accordance with Construction Industry Arbitration Rules of the American Arbitration Association then obtaining, subject to the limitations and restrictions stated in paragraphs 8.8.3 and 8.8.4 below. This agreement to arbitrate and any other agreement or consent to arbitrate entered into in accordance herewith as provided in this paragraph 8.8 will be specifically enforceable under the laws of the State of Minnesota. 8.8.3 Notice of demand for arbitration must be filed in writing with the other party to this Agreement and with the American Arbitration Association. The demand must be made within a reasonable time after the claim, dispute or other matter in question has arisen and mediation as set forth in 8.8.1 has failed. In no event may the demand for arbitration be made after the date when institution of legal or equitable proceedings based on such claim, dispute or other matter in question would be barred by the applicable statute of limitations. CONSTRUCTION_COLUMBIA HEIGHTS. DOC 11 March 1, 2002 8.8.4 All demands for arbitration and all answering statements thereto which include any monetary claim must contain a statement that the total sum or value in controversy alleged by the party making such demand or answering statement is not more than $50,000 (exclusive of interest and costs) and the arbitrators will not have jurisdiction, power or authority to render a monetary award in response thereto against any party which totals more than $50,000 (exclusive of interest and costs). The arbitrators will not have jurisdiction, power or authority to consider, or make findings (except in denial or their own jurisdiction) concerning any claim, counterclaim, dispute or other matter in question where the amount in controversy of any such claim, counterclaim, dispute or other matter is more than $50,000 (exclusive of interest and costs). 8.8.5 No arbitration arising out of, or relating to, this Agreement may include, by consolidation, joinder or in any other manner, any person or entity who is not a party to this Agreement. 8.8.6 By written consent signed by all the parties to this Agreement and containing a specific reference thereto, the limitations and restrictions contained in paragraphs 8.8.4 and 8.8.5 may be waived in whole or in part as to any claim, counterclaim, dispute or other matter specifically described in such consent. No consent to arbitration in respect to a specifically described claim, counterclaim, dispute or other matter in question will constitute consent to arbitrate any other claim, counterclaim, dispute or other matter in question which is not specifically described in such consent or in which the sum or value in controversy exceeds $50,000 (exclusive of interest and costs) or which is with any party not specifically described therein. 8.8.7 The award rendered by the arbitrators will be final, judgment may be entered upon it in any court having jurisdiction thereof, and will not be subject to modification or appeal except to the extent permitted by Sections 10 and 11 of the Federal Arbitration Act (9 U.S.C. **10, 11). 8.9 NOTICES Any notice required under this Agreement will be in writing, addressed to the appropriate party at the address which appears on the first page of this Agreement (as modified in writing from time to time by such party) and given personally, by registered or certified mail, return receipt requested, by facsimile, or by a nationally recognized overnight courier service. All notices shall be effective upon the date of receipt. 8.10 SURVIVAL All express representations, indemnifications or limitations of liability made in or given in this Agreement will survive the completion of all services of ENGINEER under this Agreement or the termination of this Agreement for any reason. 8.11 ENFORCEABILITY Any provision or part of the Agreement held to be void or unenforceable under any law or regulation shall be deemed stricken, and all remaining provisions shall continue to be valid and binding upon CITY and ENGINEER, who agree that the Agreement shall be reformed to replace such stricken provision or part thereof with a valid and enforceable provision that comes as close as possible to expressing the intention of the stricken provision. 8.12 EXHIBITS 8.12.1 The following exhibits are attached to and made a part of this Agreement: 8.12.1.1 Exhibit A, "Duties, Responsibilities and Limitations of Authority of the Resident Project Representative". 8.12.1.2 Exhibit B, "URS's Hourly Costs" CONSTRUCTION_COLUMBIA HEIGHTS. DOC 12 March 1, 2002 8.12.1.3 February 8, 2002 Letter Proposal ~_,~,j~ 8.12.2 This Agreement (consisting, ofpa~,es 1 to 13 inclusive and~he Exhibits identified above) constitutes the entire agreement between CITY and ENGINEER and supersedes all prior written or oral understandings. This Agreement may only be amended, supplemented, modified or canceled by a duly executed written instrument. IN WITNESS WHEREOF, the parties hereto have executed this Agreement to be effective as of the date first above written. Title: Mayor Date: URS C O~ON/ By: -- x,~ ~..~~ By: /v ~ Title: City Manager Date: CONSTRUCTION_COLUMBIA HEIGHTS. DOC 13 March 1, 2002 EXHIBIT A DUTIES, RESPONSIBILITIES AND LIMITATIONS OF AUTHORITY OF RESIDENT PROJECT REPRESENTATIVE If so directed by an executed Work Order, ENGINEER shall furnish a Resident'Project Representative (RPR), assistants and other field staff to assist ENGINEER in observing progress and quality of the work of Contractor(s). Through more extensive on-site observations of the work in pro~ess and field checks of materials and equipment by the RPR and assistants, ENGINEER shall endeavor to provide further protection for CITY against defects and deficiencies in the work of Contractor(s). However, ENGINEER shall not, during such visits or as a result of such observations of Contractor(s)' work in progress, supervise, direct, or have control over Contractor(s)' work nor shall ENGINEER have authority over or responsibility for the means, methods, techniques, sequences or procedure selected by Contractor(s), for safety precautions and programs incident to the work of Contractor(s), for any failure of Contractor(s) to comply with laws, rules, regulations, ordinances, codes or orders applicable to Contractor(s)' performing and furnishing the work, or responsibility of construction for Contractor(s)' failure to furnish and perform the Work in accordance with the Contract Documents. The duties and responsibilities of the RPR are limited to those of ENGINEER in ENGINEER's agreement with the CITY and in the construction Contract Documents, and are further limited and described as follows: A. General RPR is ENGINEER's agent at the site, will act as directed by and under the supervision of ENGINEER, and will confer with ENGINEER regarding RPR's actions. RPR's dealings in matters pertaining to the on- site work shall in general be with ENGINEER and Contractor(s), keeping CITY advised as necessary. RPR's dealings with subcontractors shall only be through or with the full knowledge and approval of Contractor(s). RPR shall generally communicate with CITY with the knowledge of and under the direction of ENGINEER. B. Duties and Responsibilities of RPR Schedules: Review the progress schedule, schedule of Shop Drawing submittals and schedule of values prepared by Contractor(s) and consult with ENGINEER concerning acceptability. ° Conferences and Meetings: Attend meetings with Contractor(s), such as preconstruction conferences, progress meetings, job conferences an other Project-related meetings, and prepare and circulate copies of minutes thereof. 3. Liaison: A. Service as ENGINEER's liaison with Contractor(s), working principally through Contractor(s)' superintendent and assist in understanding the intent of Contract Documents; and assist ENGINEER in serving as CITY's liaison with Contractor(s) when Contractor(s)' operations affect CITY's on-site operations. CONSTRUCTION_COLUMBIA HEIGHTS. DOC Exhibit A - 1 March 1, 2002 B. Assist in obtaining from CITY additional details or information, when required for proper execution of the Work. Shop Drawh~gs and Samples: A. Record date of receipt of Shop Drawings and Samples. B. Receive Samples which are furnished at the site by Contractor(s), and notify ENGINEER of availability of Samples for examination. C. Advise ENGINEER and .Contractor(s) of the commencement of any Work requiting a Shop Drawing or Sample if the submittal has not been approved by ENGINEER. Review of Work, Rejection of Defective Work, Inspections and Tests: A. Conduct on-site observations of the Work in progress to assist ENGINEER in determining if the Work is in general proceeding in accordance with the Contract Documents. B. Report to ENGINEER whenever RPR believes that any Work will not produce a completed Project that conforms generally to the Contract Documents or will prejudice the integrity of the design concept of the completed Project as a functioning whole as indicated in the Contract Documents, or has been damaged, or does not meet the requirements of any inspection, test or approval required to be made; and advise ENGINEER of Work that RPR believes should be corrected or rejected or should be uncovered for observation, or requires special testing, inspection or approval. C. Verify that tests, equipment and systems start-ups and operating and maintenance training are conducted in the presence of appropriate personnel, and that Contractor(s) maintains adequate records thereof; and observe, record and report to ENGINEER appropriate details relative to the test procedures and start-ups. D. Accompany visiting inspectors representing public or other agencies having jurisdiction over the Project, record the results of these inspections and report to ENGINEER. Interpretation of Contract Documents: Report to ENGINEER when clarifications and interpretations of the Contract Documents are needed and transmit to Contractor(s) clarifications and interpretations as issued by ENGINEER. Modifications: Consider and evaluate Contractor(s)' suggestions for modifications in Drawings or Specifications and report with RPR's recommendations to ENGINEER. Transmit to Contractor(s) in writing decisions as issued by ENGINEER. CONSTRUCTION_COLUMBIA HEIGHTS. DOC Exhibit A - 2 March 1, 2002 8. Records: A. Maintain at the job site orderly files for correspondence, reports of job conferences, Shop Drawings and Samples, reproductions of original Contract Documents including all Work Change Directives, Addenda, Change Orders, Field Orders, additional Drawings issued subsequent to the execution of the Contract, ENGINEER's clarifications and interpretations of the Contract Documents, progress reports, Shop Drawing submittals received from and delivered to Contractor(s) and other Project related documents. B. Prepare a daily report or keep a diary or log book, recording Contractor(s)' hours on the job site, weather conditions, data relative to questions of Work Change Directives, Change Orders or changed conditions, list of job site visitors, daily activities, decisions, observations in general, and specific observations in more detail as in the case of observing test procedures; and send copies to ENGINEER. C. Record names, addresses and telephone numbers of all Contractor(s)s, subcontractors and major suppliers of materials and equipment. 9. Reports: A. Furnish to ENGINEER periodic reports as required of progress of the Work and of Contractor(s)' compliance with the progress schedule and schedule of Shop Drawing and Sample submittals. B. Consult with ENGINEER in advance of scheduled major tests, inspections or start of important phases of the Work. C. Draft proposed Change Orders and Work Change Directives, obtaining backup material from Contractor(s) and recommend to ENGINEER Change Orders, Work Change Directives, and Field Orders. D. Report immediately to ENGINEER and CITY the occurrence of any accident. 10. Payment Requests: Review Applications for Payment with Contractor(s) for compliance with the established procedure for their submission and forward with recommendations to ENGINEER, noting particularly the relationship of the payment requested to the schedule of values, Work completed and materials and equipment delivered at the site but not incorporated in the Work. 11. Certificates, Maintenance and Operatio~ Manuals: During the course of the Work, verify that certificates, maintenance and operation manuals and other data required to be assembled and furnished by Contractor(s) are applicable to the items actually installed and in accordance with the Contract Documents, and have this material delivered to ENGINEER for review and forwarding to CITY prior to final payment for the Work. ' CONSTRUCTION_COLUMBIA HEIGHTS. DOC Exhibit A - 3 March 1, 2002 12. Completion: A. Before ENGINEER issues a Certificate of Substantial Completion, submit to Contractor(s) a list of observed items requiting completion or correction. B. Observe whether Contractor(s) has had performed inspections required by laws, rules, regulations, ordinances, codes, or orders applicable to the Work, including but not limited to those to be performed by public agencies having jurisdiction over the Work. C. Conduct a final inspection in the company of ENGINEER, CITY and Contractor(s) and prepare a final list of items to be completed or corrected. D. Observe whether all items on final list have been completed or corrected and make recommendations to ENGINEER concerning acceptance an issuance of the Notice of Acceptability of the Work. Limitations of Authority by RPR Resident Project Representative: 1. Shall not authorize any deviation from the Contract Documents or substitution of materials or equipment (including "or-equal" items), unless authorized by ENGINEER. 2. Shall not exceed limitations of ENGINEER's authority as set forth in the Agreement or the Contract Documents. 3. Shall not undertake any of the responsibilities of Contractor(s), Subcontractors, Suppliers, or Contractor(s)' superintendent. 4. Shall not advise on, issue directions relative to or assume control over any aspect of the means, methods, techniques, sequences or procedures of construction unless such advise or directions are specifically required by the Contract Documents. 5. Shall not advise on, issue directions regarding or assume control over safety precautions and programs in connection with the Work. 6. Shall not accept Shop Drawing or Sample submittals from anyone other than Contractor(s). 7. Shall not authorize CITY to occupy the Project in whole or in part.- 8. Shall not participate in specialized field or laboratory tests or inspections conducted by others except as specifically authorized by ENGINEER. CONSTRUCTION_COLUMBIA HEIGHTS. DOC Exhibit A - 4 March 1, 2002 EXHIBIT B URS'S HOURLY COSTS The following schedule of Hourly Costs illustrates the ranges of costs per typical employee classification. The actual hourly rate that the City will pay is dependent upon the actual employees performing services on the Project. Actual hourly rates shall be determined based upon the hourly salary rate for each employee times 2002 Hourly Rate Range Employee Classification Low High Principal $150.00 $175.00 Vice President $110.00 $165.00 Senior Associate $95.00 $140.00 Associate $80.00 $120.00 Senior Consultant $70.00 $110.00 Consultant II $60.00 $85.00 Consultant I $50.00 $70.00 StaffLevel 5 $70.00 $100.00 Staff Level 4 $60.00 $80.00 Staff Level 3 $50.00 $65.00 Staff Level 2 $30.00 $50.00 Staff Level 1 $25.00 $40.00 a factor CONSTRUCTION_COLUMBIA HEIGHTS. DOC Exhibit B - 1 March 1, 2002 March 6, 2002 Mr. Kevin Hansen, PE Director of Public Works City of Columbia Heights 637 38t~ Avenus NE Columbia Heights, MN 55421 Re: Central Avenue (T.H. 65) Improvement Project City Project 99-12 Dear Kevin: Several issues were raised at the March 4, 2002 workshop regarding Construction Services fees for the above referenced project. We have reviewed these issues and are providing the following additional information for consideration. Fees as a Percentage of Estimated Construction Cost The Central Avenue project is a complex project with coordination required with several different agencies. MnDOT coordination required a significant effort for plan review and revision work. The coordination effort is expected to result in a MnDOT cost sharing of approximately $1,300,000. This is above the standard contribution of $540,000 that MnDOT typically caps projects of this nature at. We have also coordinated the project with the City of Minneapolis and Anoka County to ensure that approval for the project was received from these agencies. Public involvement was also a significant portion of the project. Numerous meetings to inform the public of the project were held throughout the last four years. Both the agency involvement and the public involvement will be critical through the construction phase to ensure a successful project. URS has provided engineering services on numerous project of this scope and magnitude. Design fees have ranged from 8 percent to 15 percent, depending upon a number of variables including design issues and the amount of public and agency involvement. Construction services have ranged between 10 and 15 percent, depending on construction complexity. The average costs for design and construction services for these projects has consistently ranged from 2 ! to 25 percent, with some fees totaling as much as 29 percent. The projects were all located in the Metropolitan area and required a similar degree of agency and public involvement as the Central Avenue project. Our proposed fees for this project include design services of appi'oximately 10 percent and proposed construction services of approximately 12 percent for a total fee of approximately 22 percent. The proposed fees appear to be about average when compared to similar projects of this nature. Thresher Square 700 Third Street South Minneapolis, MN 55415-1199 612.370.0700 Tel 612.370.1378 Fax Mr. Kevin Hansen, PE March 6, 2002 Page 2 URS Salary Multiplier The rates proposed for this project are based on a multiplier of 2.9 times the direct hourly salary rate of the employees performing services for the project. This is consistent with many of our continuing services agreements with other Metropolitan area communities. MnDOT audits our overhead each year for work on state contracts. The most recent audited overhead rate for URS was approximately 1.5 times the employee salary rate. This means a multiplier of 2.5 (1.5 factor plus direct salary rate) is required for us to break even on a project. The consulting industry typically expects profits of between 10 and 15 percent for the services provided. Consistent with this range, we had previously proposed to use a multiplier of 2.9 for the project. Recognizing that the City is concerned with overall costs for the project, we would be willing to reduce the multiplier to 2.8 for the construction services for the project. City Staff Inspector The City raised the potential for employing a staff inspector for the project. Our estimate includes a senior inspector for 2360 hours, including 600 overtime hours. We also included a junior inspector for 976 hours. The senior inspector that we propose to use for the project has over twenty years of experience in working on reconstruction projects of this nature. He has also been involved in the preparation of the project plans and has a familiarity of the work required. We would be willing to work with the City if they were able to obtain the services of an inspector of this caliber. Our administration fees may increase slightly as a result of having to familiarize the inspector with the project plans and project scope. If the City pursues this option URS recommends that the inspector should be employed immediately, as we are preparing to advertise the project within the next few weeks and will begin having construction meetings with utilities shortly thereafter. We recommend that the City only consider inspectors with a depth of experience in reconstruction projects within business districts. Our fees would be revised after meeting with the inspector in an attempt to determine the extent of our role on the project. If there are any questions or concerns, please call me at (612) 373-6506 or Jon Horn at (612) 373- 6396. Sincerely, BRW, Inc. Kevin P. Kielb, P.E. Project Engineer Enclosures CC: Jon Horn/BRW File 33943 016 2001 O,R GINAL February 8, 2002 Mr. Kevin Hansen, PE Public Works Director\ City Engineer City of Columbia Heights 637 - 38th Avenue N.E. Columbia Heights, MN 55421 Proposal for Project Construction Phase Services Central Avenue (TH 65) Improvement Project and University Avenue Internally Lit Signs (City Project Nos. 99-12, 99-12A and 99-20) Dear Mr. Hansen: The following supplemental proposal is offered for your consideration for Construction Phase services for the above-referenced project. The Construction Phase services include construction administration, construction staking and full-time construction observation during construction of the project. A description of the proposed services is presented below: CONSTRUCTION PHASE SERVICES URS will provide construction administration, construction staking and full time construction observation during the construction phase of the project. URS will coordinate construction testing for the project. URS will prepare and provide the City with as-built drawings of the improvements after completion of construction. We assume that all construction testing will be performed by others and coordinated by URS. Testing fees will be invoiced directly to the City by the consultant performing the work. We propose to perform all construction services for the project on an hourly basis. We have estimated that the construction services portion of the project will cost $460,680. The construction phase fees have been estimated at approximately 12% of the current estimated construction cost for the project of approximately $3,839,000. Consistent with our Professional Services Agreement, labor will be billed on an hourly basis and reimbursable expenses will be billed to the City at cost with no URS markup. SUMMARY URS has previously provided preliminary and final design phase services for this project. The following is a summary of the fee estimates for previous phases of the project along with the estimated fees for the construction phase of the project. Thresher Square 700 Third Street South Minneapolis, MN 55415-1199 612.370.0700 Tel 612.370.1378 Fax Mr. Kevin Hansen February 8, 2002 Page 2 Preliminary Design Services Current Not-to-Exceed Amount Final Design Services Current Not-to-Exceed Amount Construction Phase Services Estimated Not-to-Exceed Amount Total Estimated Cost - All Services SCHEDULE $ 31,000 $348,050 $460,680 $839,730 We understand that project construction will begin in May or June of 2002 and be a one year construction project. Our estimated costs do not include additional time required to complete a two year project. Two original copies of a Professional Services Agreement for these services are attached for your review and approval. If this proposal is acceptable, please execute both copies of the Agreement and return one copy to us for our records. Please let me know if you have any questions or you need any additional information. Sincerely, URS Corporation Kevin P. Kielb, PE Associate ~. H~ pelvic~ President Copy: Kim Schaffer/URS File 33910-004-1001