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SR-912-000 (2) F:\DATA\SPFILES\Sp1681-Public Safety Bldg\cc1681.doc Council Meeting: January 11, 2000 Santa Monica, CA TO: Mayor and City Council FROM: City Staff SUBJECT: Recommendation to Authorize the City Manager to Negotiate and Execute an Amendment to Contract 7648 (CCS) with Law Engineering and Environmental Services, Inc. for Additional Geotechnical Inspection Services and Amend Contract 7499 (CCS) with Ford E.C., Inc. for Additional Excavation Costs for Phase One of the Public Safety Facility Construction Introduction This report recommends that City Council authorize the City Manager to negotiate and execute an amendment to Contract 7648 (CCS) with Law Engineering and Environmental Services, Inc. in an amount not to exceed $75,000 and approval of $7,500 in contingency for additional environmental and geotechnical inspection services. The report also recommends an amendment to Contract 7499 (CCS) with Ford E.C. Inc. in an amount not to exceed $925,000 and approval of $92,500 in contingency for additional costs related to the removal of debris and contaminated soil for Phase One of the Public Safety Facility Construction. Background In order to expedite the construction of the Public Safety Facility, the construction project was divided into two phases. On June 8, 1999, the City Council awarded a contract to Ford E.C., Inc. for phase one, excavation and utility relocation, for the Public Safety Facility. As a part of that action the City Council approved a $500,000 1 contingency for environmental mitigation of known hydrocarbon-related contaminants including creosote, arsenic and other heavy metals in the building excavation area. On November 18, 1999, a professional services agreement was issued to Law Engineering and Environmental Services, Inc. for environmental and geotechnical inspection services. Their scope of work was determined through initial boring samples. Visual observation during construction revealed that the contamination was greater than anticipated. In addition, a high volume of debris containing bricks has been discovered in the area surrounding the Kenter Canyon Storm Drain that is centrally located within the project limits. The entire contingency has been expended for unanticipated disposal of debris and contaminated material. Discussion The discovery of the extensive contaminated soil requires additional environmental and geotechnical inspection and testing to identify and document the type and extent of contamination, resulting in higher costs to deploy trucks to appropriate treatment centers and landfills. The contaminated soil excavated to date has been removed from the site and recycled using a thermal treatment. The debris-ridden soil excavated to date has been removed and transported to appropriate dumpsites. Although the actual extent of the contamination will not be known until the excavation is complete, staff and the consultants from Law Engineering and Environmental Services estimate that twenty percent of the remaining volume of soil to be excavated is contaminated, sixty percent is debris-ridden and the remaining twenty percent is clean. 2 The Construction Manager is monitoring actual quantities on a daily basis. The additional estimated costs for environmental mitigation is $925,000 plus contingency and $75,000 for environmental monitoring services plus contingency. Budget/Financial Impact It is anticipated that an additional $1,100,000 will be required to recover and mitigate the remaining contaminated soils. Funds for the additional excavation costs are available in CIP Account Number C01005800.589000. Bids for the building construction contract are due in February. Based on these bids, additional appropriation to cover the added excavation costs may be necessary. Recommendation Staff recommends that the City Council: 1. Authorize the City Manager to negotiate and execute an amendment to Agreement 7648 (CCS) with Law Engineering and Environmental Services, Inc. for additional geotechnical and inspection services in an amount not to exceed $75,000 and approve $7,500 in contingency; 2. Authorize the City Manager to negotiate and execute an amendment to Contract 7499 (CCS) with Ford E.C., Inc. for additional excavation costs in an amount not to exceed $925,000 and approve $92,500 in contingency; and 3. Authorize the City Engineer to issue any necessary Change Orders to complete additional work in conformance with the Administrative Instructions on Change Orders. 3 Prepared by: Craig Perkins, Director, Environmental and Public Works Management Anthony Antich, PE, City Engineer Suzanne Frick, Director, Planning and Community Development Andy Agle, Deputy Director, Planning and Community Development 4