Item 7
CITY CeUNCIl
REPORT
Meeting Date:
General Plan Element:
General Plan Goal:
March 5,2013
Community liability
Safely, effectively and efficiently move people, goods and
information
ACTION
Modification to Airport Engineering Services Contract. Adopt Resolution No. 9302 authorizing
airport engineering services contract modification 2012-131-COS-Al with Stantec Consulting
Services, Inc.
BACKGROUND
The purpose of this action is to authorize a modification to airport engineering services contract
2012-131-COS regarding the amount of professional liability insurance that subcontractors working
for Stantec Consulting Services, Inc. must maintain while working on design/engineering projects for
the airport. The City entered into this contract with Stantec Consulting Services, Inc. on August 27,
2012.
The current contract language requires that subcontractors maintain $3,000,000 worth of
professional liability insurance, but many subcontractors maintain onty $2,000,000. In many cases,
the subcontractors will have to pay much higher premiums to secure the additional insurance
coverage that is required. Those additional costs will end up being passed on to the City even ifthe
subcontractors are only performing small amounts of work for the main consultant. In order to
avoid these additional costs, this contract modification will allow Stantec Consulting Services, Inc. to
determine which of their subcontractors will be authorized to work on airport projects with only
$2,000,000 worth of insurance and which will have to maintain the higher $3,000,000 limit. This
determination will be based on the amount and scope ofthe work to be performed.
Stantec Consulting Services, Inc. will be required to maintain their professional liability limits of
$3,000,000 for the entire term of this contract and they are ultimately liable for the all of the work
that they and their subcontractors perform at the airport.
The City's Risk Management Director has reviewed this contract modification and has determined
that the new contract language will continue to provide adequate liability protection to the
City/Airport.
City Council Report | MODIFiCATiON TO AIRPORT ENGINEERING SERVICES CONTRACT
ANALYSIS & IMPACTS
Community Involvement
The public was provided with an opportunity to comment on the engineering services agreement modification at the Airport Advisory Commission on February 13, 2013. No negative comments were received and the Airport Advisory Commission approved a motion to recommend that City Council authorize the modification to the agreement with a 7-0 vote.
RESOURCE IMPACTS
Available funding
No additional funds will be necessary to administer this contract modification. Staffing, Workload Impact
No additional staffing will be necessary to administer this contract modification. Future Budget Implications
This contract modification has no future budget implications.
OPTIONS & STAFF RECOMMENDATION
Recommended Approach
Adopt Resolution No. 9302 approving airport engineering services contract modification 2012-131-COS-Al with Stantec Consulting Services, Inc.
Description of Option B
Do not Adopt Resolution No. 9302 approving airport engineering services contract modification 2012-131-COS-Al with Stantec Consulting Services, Inc. and absorb the costs o f t h e higher insurance premiums for their subcontractors.
Proposed Next Steps
If City Council approves the amendment to the contract, Stantec Consulting Services, Inc. will continue to provide airport engineering services in accordance with the contract modification.
RESPONSIBLE DEPARTMENT(S)
Community & Economic Development Division, Aviation Department
STAFF CONTACTS (S)
Chris Read, Airport Operations Manager, [email protected] 10664079V1
City Council Report | MODIFICATION TO AIRPORT ENGINEERING SERVICES CONTRACT
APPROVED BY
Gary P. Mascaro, CM., C.A.E., Aviation Director Date (480) 312-7735, [email protected]
Paul T. Katsenes, Date Executive Director, Community & Economic Development
(480) 312-2311, [email protected]
ATTACHMENTS
1. Resolution No. 9302
2. Contract Modification 2012-131-COS-Al
10664079V1
RESOLUTION NO. 9302
A RESOLUTION OF THE COUNCIL OF THE CITY OF SCOTTSDALE. I\/IAR1C0PA COUNTY, ARIZONA, APPROVING A MODIFICATION TO CONTRACT NO. 2012-131-COS-A1 WITH STANTEC CONSULTING SERVICES, INC. TO AMEND CERTAIN PROFESSIONAL LIABILITY INSURANCE PROVISIONS FOR SUBCONTRACTORS.
The City desires to amend certain professional liability insurance provisions for Subcontractors; and
The City and the Engineer mutually agree to the modification of this Contract. BE IT RESOLVED by the Council of the City of Scottsdale as follows:
Section 1. The Mayor is authorized and directed to execute Contract Modification No. 2012-131-COS-Al with Stantec Consulting Services, Inc.
PASSED AND ADOPTED by the Council of the City of Scottsdale this 5^ day of March, 2013.
ATTEST: CITY OF SCOTTSDALE. an Arizona Municipal Corporation By:
Carolyn Jagger, City Clerk
By:
W.J. "Jim" Lane, Mayor APPROVED AS TO FORM:
vJsTiburn, Cii^AttornevM Bruce W
By: Clifford J. Frey
Senior Assistant City Attorney
t0640456v1
Contract No. 2012-131-COS-Al
CITY OF SCOTTSDALE
MODIFICATION TO ENGINEERING SERVICES CONTRACT
THIS CONTRACT MODIFICATION made and entered into this 5*^ day of March, 2013, between the City of Scottsdale, an Arizona Municipal Corporation, "The City," and Stantec Consulting Services, Inc., a New York Corporation, "The Engineer", amending the Contract dated August 27, 2012, between the City and the Engineer.
RECITALS:
The Mayor of the City of Scottsdale is authorized and empowered by provisions of the City Charter to execute Contracts and Contract Modifications; and
The City desires to amend certain professional liability insurance provisions for Subcontractors; and
The City and the Engineer mutually agree to the modification of this Contract.
IN CONSIDERATION of the mutual promises and obligations of the Contract, the parties agree as follows:
1.0 MODIFICATIONS:
1.1 Article 4.1(F), Use of Subcontractors is amended to read as follows:
If any work is subcontracted in any way, the Engineer must execute a written agreement with Subcontractor containing the same Indemnification Clause and Insurance Requirements as the City requires of the Engineer in this Contract. The Engineer is responsible for executing the Contract with Subcontractor and obtaining Certificates of Insurance and verifying the insurance requirements. Depending on the Subcontractor's Scope of Work, and upon the recommendation ofthe Engineer, and the approval ofthe Contract Administrator, the Subcontractor's Professional Liability limits may be reduced to $1,000,000 each claim and $2,000,000 all claims.
OTHER CONTRACT PROVISIONS:
All provisions of the original Contract not modified above shall remain in full force and effect as previously stated.
END OF CONTRACT-signatures on next page.
ATTACHMENT 2
Contract No. 2012-131-COS-Al THE CITY OF SCOTTSDALE, by its Mayor and City Clerk have subscribed their names this 5^ day of March, 2013. AUTHORIZATION ENGINEER Services, Inc. CITY OF SCOTTSDALE By:
W.J. "Jim"* Lane, Mayor RECOMMENDED:
By:
Gary Mascaro, Aviation Director RECOMMENDED:
By:
Derek Earle, Acting Executive Director Public Works
ATTEST: By:
Carolyn Jagger, City Clerk
APPROVED AS TO FORM: Office of the City Attorney
Bruce ^
By: Clifford J. Frey ^ Senior Assistant City Attorney
