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SR-111108-1G~_ City Council Report City of Santa Moniea~ City Council Meeting: November 11, 2008 Agenda Item: ~°""~°~ To: Mayor and City Council From: Lee E: Swain, Director of Public Works Subject: Annenberg Community Beach House Recommended Action Staff recommends that the City Council 1. authorize the City Manager to amend construction contract No. 8652 (CCS) with Midwest Environmental Control, Inc., for remediation of soil fill material in the amount of $390,000-plus a contingency amount of $39,000 (10%), in the event unforeseen conditions should arise, for a new not to exceed amount of $2,360,513; 2. authorize the City Manager to amend professional services agreement No. 8701. (CCS) with Smith-Emery. Company, for deputy inspection and materials testing services in the amount of $49,500 including contingency (10%), for a new not to exceed amount of $197,570; and 3. authorize the Director of Public Works to issue any necessary change orders to complete additional work within budget authority. Executive Summary The site at 415 Pacific Coast Highway is owned by the State of California. Pursuant to along-term operating agreement with the State, the City of Santa Monica is responsible for all site improvements, maintenance, and operations. The City has contracted Midwest Environmental Control, Inc., (MEC) to perform abatement of asbestos and lead containing materials for the rehabilitation and adaptive reuse of the Annenberg Community Beach Club. Recent excavation activities have revealed asbestos encapsulated pipe and soil fill material requiring remediation by MEC. The pipe and minute level of asbestos containing soil fill could not be determined prior to each. phase of excavation work. A modification to the current contract is necessary. The City has retained Smith-Emery Company to perform independent deputy inspection and material inspection services as required by California Building Standards Code. Refinement to 1 design build construction means and methods necessitate additional deputy inspection and material testing services and .modification to the current professional services agreement. Funds. for the amendment to the construction contract and professional services agreement are available from the project budget. Background Construction Contract -Soil FiII Remediation Construction of the Annenberg Community Beach Club is currently underway. The City has contracted Midwest Environmental Control, Inc., (MEC) to perform abatement of asbestos and lead containing materials and selective demolition of the former Locker Building, historic North House, and bulkhead and abatement of hazardous materials discovered during site excavation. Recent rehabilitation activities including excavation for the installation of permanent utilities and site drainage have revealed asbestos encapsulated pipe and contaminated soil fill materials that require remediation prior to continued rehabilitation. On November 14, 2006, Council awarded Contract No. 8652 (CCS) with MEC for selective demolition and the abatement of asbestos and lead containing materials for an amount not to exceed $747,046, including a 10% contingency. Under three separate Council actions (September 11, 2007, February 26, 2008 and March 25, 2008) the contract was modified which resulted in a not to exceed contract value of $1,931,513, including 10% contingency and the one-time $7,822 addition for off site hazardous abatement services at City Hall. Professional Services Agreement -Deputy Inspection and Materials Testing Services California Building Standards Code requires independent testing and inspection of concrete, steel and masonry materials and methods of installation during construction to ensure that potential problems with construction materials ahd installations are immediately identified and corrected. The City has entered into an agreement with Smith-Emery Company to perform deputy inspections and materials testing for the rehabilitation and adaptive reuse of the Annenberg Community Beach Club. On A ril 10, 2007, Council approved the award of Professional Services Agreement No. 8701 2 (CCS) with Smith-Emery for deputy inspection and materials testing services for an amount not to exceed $148,070. Construction means and methods require additional deputy inspection and materials testing. Discussion Construction Contract -Soil Fill Remediation Recent. rehabilitation activities including excavation for installation of permanent utilities at the north and southeast side of the property revealed additional unforeseen sub- surface asbestos encapsulated pipe and asbestos containing soil fill material necessitating remediation: Project excavation activities are nearing completion. The sub-surface pipe and asbestos containing fill materials could not be determined prior to excavation activities. This modification with MEC will require an increase in the contract in an amount of $390,000, plus a 10% contingency ($39,000), in the event .additional unforeseen conditions should arise, for a total of $429,000. This modification will result in a not to exceed contract value of $2,360,513, which includes a 10% contingency and aone-time $7,822 addition for off-site hazardous abatement services at City Hall. MEC has performed abatement of contaminated materials including removal and disposal of asbestos, lead, and creosote containing materials and soil located at the Locker Building, bulkhead, historic North House, and at the southerly parking lot. Their services performed have been professional, within budget and timely. Their previous work on the project makes them highly familiar with site specific removal and disposal procedural requirements. Professional Services Agreement -Deputy Inspection and Materials Testing Services The nature of design build projects necessitate the design builder to refine construction means and methods during progression of construction. These refinements have 3 resulted in the need for additional deputy inspection and material testing services as required by California Building Standards Code. This modification will require an increase in the contract in an amount of $49,500 including .contingency (10%). This modification will result in a not to exceed contract value of $197,570. Smith-Emery Company has performed all deputy inspection and materials testing services to date professionally,. within budget and timely. Their previous services on the project makes them highly familiar with the development of the construction means and methods and deputy inspection and materials testing requirements. .Financial Impacts & Budget Actions Funds for the amendment to the construction contract with MEC in the amount of $429,000 including contingency (10%) are available in account 0010520.589000, "415 PCH". Funds for the amendment to the professional services agreement with Smith- Emery in the amount of $49,500 including contingency (10%) are available in account 0240520:589000, "415 PCH". Prepared by: Voneelya Simmons, Project Manager Approved: ~'~~ ~t Lee E. Swain, Director Department of Public Works Forwarded to Council: ~~Y ont Ewell Manager 4 Reference Amended Contract Nos. 8652 (CCS) and 8701 (CCS).