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SR-505-001-04 (2) EPWM: CC: AA: RDB: SG; F:\DATA\SPFILES\Sp1767\cc1767 Change Order 12.DOC City Council Meeting: September 11, 2001 Santa Monica, California TO: Mayor and City Council FROM: City Staff SUBJECT:Authorize the City Manager to Increase the Contingency to Contract 7519 (CCS) with Pacific Mechanical Corporation for the Moss Avenue Pumping Station, Phase 2 Project Introduction This report recommends that the City Council approve an increase in the contingency for Contract 7519 (CCS) in the amount of $58,554.14 for the construction of the Moss Avenue Pumping Station, Phase 2. Background The Coastal Interceptor Sewer (CIS) collects sewage from the City of Los Angeles north of the City limits and, with additional flows from the City of Santa Monica, carries it to the City of Los Angeles? Hyperion Plant for treatment. The 1994 Northridge earthquake damaged many sections of the CIS and projects are underway to repair the damage. The cities of Santa Monica and Los Angeles are working jointly on this rehabilitation effort, with Santa Monica serving as the lead agency for that portion of the CIS within the City of Santa Monica. The entire CIS project includes the Pacific Coast Highway sewer replacement, the Ocean Avenue and Neilson Way relief sewer and the Moss Avenue pumping station. Construction has been completed for Phases 1 and 2 of the Moss Avenue pumping station, 1 the Appian Way project and Phases 1A and 1B of the Pacific Coast Highway sewer replacement project. Construction for the Ocean Avenue/Neilson Way relief sewer, Phase 2 of the Pacific Coast Highway sewer replacement and Phase 3 of the Moss Avenue pumping station projects are currently underway. Discussion On July 13, 1999, City Council awarded a construction contract to Pacific Mechanical Corporation in the amount of $2,546,000 and approved a construction contingency of $350,000 for the construction of Phase 2 of the Moss Avenue Pumping Station. During the course of construction an additional pump was added at the request of the City of Los Angeles to accommodate future flows. The cost of this addition to the contract was $228,866.83, leaving $121,133.17 remaining in the project contingency for completion of construction. Other essential changes have lowered the project contingency to $29,530.82. Negotiations over project closeout items resulted in a final amount of $88,084.96. Thus, $58,554.14 must be added to the project contingency in order to pay Pacific Mechanical Corporation for work performed. Budget/Financial Impact Funds in the amount of $58,554.14 are available in Account C31034500.589000, ?Moss Avenue Pumping Station?. The City of Los Angeles reimburses the City of Santa Monica 100 percent of the wastewater costs of the Moss Avenue Pumping Station project, which 2 will be recorded in revenue account 31661.400890 in FY 2001-02. In turn, the City of Los Angeles bills Santa Monica?s share (which is approximately two percent of the cost) in the annual invoice for Hyperion capital costs. Recommendation Staff recommends that the City Council: 1. Approve an increase in the contingency to Contract 7519 (CCS) with Pacific Mechanical Corporation in the amount of $58,554.14; and 2. Authorize the City Engineer to issue any necessary change orders to complete additional work in conformance with the Administrative Instructions on change orders. Prepared by: Craig Perkins, Director of Environmental and Public Works Management Anthony Antich, P.E., City Engineer Jack Schroeder, P.E., Disaster Recovery Program Manager Susan Lowell, P.E., Civil Engineer. 3