SR-505-001-03 (7)
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Council Meeting: July 11, 2000 Santa Monica, California
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Recommendation to Authorize the City Manager to Negotiate and Execute
Contract Amendments with KEC Engineering Inc.; Black and Veatch, Inc.;
Montgomery Watson Americas; Arthur D. Little, Inc.; and Harris Company
for Construction Management Services, Engineer of Record Services,
Environmental Services, and for Community Outreach Services, respectively
for the Ocean Avenue and Neilson Way Relief Sewer Project; Appropriate
$4,060,500 from the Wastewater Fund to pay for these changes; and Waive
Competitive Bidding Associated with These Contract Amendments.
Introduction
This report recommends that the City Council authorize the City Manager to negotiate an
increase in the base contract amount to Contract 7602 (CCS) with KEC Engineering, Inc.
in the amount of $2,442,000 for construction of sewer mains on Ocean Avenue and
Neilson Way from Seaside Terrace to the southerly City limits. This report also requests
that the City Council authorize the City Manager to approve a Modification to Agreement
Number 7476 (CCS) with Black & Veatch, Inc. in the amount of $510,000 for construction
management services; approve a Modification to Agreement Number 7216 (CCS) with
Montgomery Watson Americas in the amount of $260,000 for Engineer of Record services
during construction; approve a Modification to Agreement Number 7695 (Administrative)
with Arthur D. Little, Inc., in the amount of $40,000 for environmental services; and
approve a Modification to Agreement Number 7355 (CCS) with Harris Company in the
amount of $50,000 for community outreach services for the Ocean Avenue and Neilson
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Way Relief Sewer Project of the Coastal Interceptor Sewer System. Staff also recommends
that $4,060,500 be appropriated from the Wastewater Fund to pay for the contract and
agreement modifications.
Background
The Ocean Avenue and Neilson Way Relief Sewer is an integral part of the Coastal
Interceptor Sewer (CIS) which collects sewage from the City of Los Angeles, north of the
Santa Monica boundary and, with additional flows from the City of Santa Monica, carries it
to the City of Los Angeles? Hyperion Plant for treatment. Projects are currently underway
to repair many sections of the CIS damaged by the 1994 Northridge earthquake. The cities
of Santa Monica and Los Angeles are jointly working on this rehabilitation effort, with Santa
Monica serving as the lead agency. In addition to the Ocean Avenue and Neilson Way
Relief Sewer, the CIS Project includes the Pacific Coast Highway (PCH) sewer
replacement, the Appian Way project, the Ocean Avenue to Pico Boulevard to Main Street
sewer rehabilitation, and the Moss Avenue Pumping Station. The CIS Project also
includes the replacement of two flow-monitoring stations that monitor flow in and out of the
City at the northern and southern City limits. Construction is near completion for the Moss
Avenue Pumping Station Phase 2 project. Construction for the PCH Replacement Sewer
and the Ocean Avenue and Neilson Way Relief Sewer projects are currently underway.
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Discussion
The Ocean Avenue and Neilson Way Relief Sewer project includes the installation of
6,600 feet of 54-inch diameter pipe and various junction structures under Ocean Avenue,
Neilson Way, Pier Street, and Main Street, from Seaside Terrace to the southerly City
limits. Construction of the Ocean Avenue and Neilson Way Relief Sewer allows the City to
permanently divert flows away from the overburdened Ocean Avenue and Main Street
portions of the CIS. Costs of the additional work required to complete the project are as
follows:
Construction
During construction, unforeseen field conditions such as the close proximately of a county
30? water main, large phone duct bank in Marine Street, removal of abandoned railroad
ties and contaminated soil, replacement of existing water main on Neilson Way, and
unsuitable soils on Ocean Avenue have added both costs and delays to the construction
contract with KEC Engineering, Inc. The total added cost is $1,963,999.
In addition, the City has requested that KEC Engineering add a 36-inch sewer to replace
existing monitoring station SM-2 and provide capacity in the southeast portion of the City.
The cost of this additional construction is $479,000.
Total Additional Construction: $2,442,000
Contingency: $600,000
Total: $3,042,000
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Because the cost of the proposed additional construction work by KEC Engineering
exceeds 25% of the original construction contract, it is required that Council make a finding
that it is not necessary to solicit bids for additional work. Pursuant to Santa Monica
Municipal Code Section 2.24.071(e) competitive bidding should be waived by Council for
the following reasons:
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(e)(1) the goods or services can be purchased more economically on the open
market in that additional mobilization and demobilization costs would be incurred by
a second contractor;
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(e) (3) due to the urgent necessity, the public health, welfare or safety would be
jeopardized if the bidding procedures were followed because it would be potentially
hazardous to have a second contractor working simultaneously in the same work
area as KEC Engineering. A second contractor performing additional work would
result in considerable public inconvenience and additional project delay.
Due to the additional work required, a seven-month time extension is required that will
extend the contract time to May 31, 2001. The original completion date was October 31,
2000.
Construction Management Services
The construction management and inspection contract with Black & Veatch, Inc., is
dependent on the length of the construction period and also includes complete materials
testing and noise and vibration monitoring. The project completion date has been
extended seven months, to May 31, 2001 from October 31, 2000, and together with
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additional noise and vibration monitoring and soils testing requirements, the following
additional services are requested:
Additional construction management and inspection
services: $510,000
Contingency: $60,000
Funds Required for Contract 7476 (CCS): $570,000
Engineer of Record Services
The design contract with Montgomery Watson Americas was amended previously to
include engineer of record services during construction, including the review of shop
drawings, requests for information and preparation of small changes in design. Additional
design services have been required due to conflicting utility information and will be
required as the project progresses.
Additional Engineer of Record Services: $260,000
Contingency: $ 30,000
Funds Required for Contract 7126 (CCS): $290,000
Environmental Services
During construction of the Ocean Avenue portion of the project, contaminated soils and
railroad ties were encountered that required the services of Arthur D. Little, Inc., an
environmental services firm. Arthur D. Little, Inc. assessed the scope and type of
contamination and guided the contractor in the appropriate methods of removal.
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Continuation of construction requires additional services of Arthur D. Little, Inc. for the
following amounts:
Environmental Services: $48,500
Modification Number 1 to Contract 7695: $40,000
Contingency: $10,000
Funds Required for Contract 7695: $98,500
Community Outreach Services
The community outreach services contract with Harris and Company is also time-
dependent and must closely follow the schedule of the construction contract. Harris and
Company is in constant contact with the community affected by the construction and
provides a single source contact for staff, the contractor, public agencies, and the
community. The following additional services are required:
Community Outreach Services: $50,000
Contingency: $10,000
Funds Required for Contract 7355: $60,000
Budget/Financial Impact
Funds Required
Construction Contract 7602 $3,042,000
Consultant Contract 7476 $570,000
Consultant Contract 7216 $290,000
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Consultant Contract 7695 $98,500
Consultant Contract 7355 $60,000
Total Funds Required: $4,060,500
Funds in the amount of $4,060,500 are available for appropriation from the Wastewater
Fund to Account Number C31094300.589000 (Ocean/Neilson Relief Sewer). The City of
Los Angeles and the Hyperion System contract agencies other than Santa Monica are
responsible for approximately 98% of all capital improvement costs for the Ocean Avenue
and Neilson Way Relief Sewer on a reimbursement basis, as stipulated under the
Wastewater Services Agreement between Santa Monica and Los Angeles.
Recommendation
Staff recommends that the City Council:
1. Make the finding that it is not necessary to solicit bids for additional construction
work described herein.
2. Authorize the City Manager to negotiate an increase in the base contract amount to
Contract 7602 (CCS) with KEC Engineering in the amount of $2,442,000 plus
$600,000 contingency;
3. Authorize the City Manager to negotiate and execute a Modification to Agreement
7476 with Black & Veatch, Inc. in the amount of $510,000 plus $60,000
contingency;
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4. Authorize the City Manager to negotiate and execute a Modification to Agreement
7216 with Montgomery Watson, in the amount of $260,000 plus $30,000
contingency;
5. Authorize the City Manager to negotiate and execute a Modification to Agreement
Number 7695 with Arthur D. Little, Inc., in the amount of $40,000 plus $10,000
contingency;
6. Authorize the City Manager to negotiate and execute a Modification to Agreement
7355 with Harris and Company in the amount of $50,000 plus $10,000 contingency;
7. Appropriate an additional $4,060,500 from Wastewater Fund 31 to account
C31094300.589000.
8. Authorize the City Engineer to issue any necessary change orders to complete
additional work within budget authority and in accordance with the Administrative
Instructions on Change Orders.
Prepared by: Craig Perkins, Environmental and Public Works Management Director
Anthony Antich, P.E., City Engineer
Gil Borboa, P.E., Utilities Manager
Jack Schroeder, P.E. Disaster Recovery Program Manager
Susan Lowell, P.E., Civil Engineer
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