SR-505-001-04 (3)
Council Meeting: August 8, 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 Modern Continental Construction Company, Inc.;
Black and Veatch, Inc.; Montgomery Watson Americas; and Harris and
Company for Construction Services, Construction Management and
Inspection Services, Design and Engineer of Record Services and for
Community Outreach Services, respectively, for the Pacific Coast Highway
Sewer Replacement Project; Appropriate $5,485,487 from the Wastewater
Fund to pay for these changes.
Introduction
This report recommends modifications to various contracts pertaining to the construction of
sewer mains in Pacific Coast Highway from the northerly City limit to Appian Way. First,
this report recommends that the City Council authorize the City Manager to negotiate a
Modification to Contract 7490 (CCS) with Modern Continental Construction Company to
delete a portion of the construction work and to resolve various compensation issues. 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. up to the amount
of $1,368,037 for construction management services; approve a Modification to Agreement
Number 7216 (CCS) with Montgomery Watson Americas up to the amount of $404,000 for
design and Engineer of Record services during construction; and approve a Modification to
Agreement Number 7355 (CCS) with Harris and Company up to the amount of $259,000
for community outreach services for the Pacific Coast Highway Sewer Project of the
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Coastal Interceptor Sewer System. Staff also recommends that $5,485,487 be
appropriated from the Wastewater Fund to pay for the agreement modifications.
Background
The Pacific Coast Highway (PCH) Sewer Replacement Project 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 PCH Replacement
Sewer, the CIS Project includes the Ocean Avenue and Neilson Way Relief Sewer, 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.
Discussion
The PCH Sewer replacement project includes the installation of 9,000 feet of 60-inch
sewer main, rehabilitation of the local sewer main and the installation of various junction
structures under PCH from the northerly City limit to Appian Way. Construction of the PCH
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sewer replacement project also allows the City to collect and treat dry weather runoff from
the City of Los Angeles, which is currently being discharged into Santa Monica Bay. The
new sewer line is being installed by microtunneling, a highly specialized construction
method. To date, approximately 1000 feet of sewer main south of the California Incline
have been installed. While the project was scheduled to be completed by May 2000,
several circumstances have caused delays, including issues relating to permits, apparent
field conditions, machinery failures, contractor staffing issues, neighborhood concerns and
contractor efficiency. Because of these delays and because of Caltrans? stated preference
to bifurcate the project in order to lessen the impact of the construction upon traffic, it is
anticipated that the entire project will take an additional two years to complete. Phase 1,
which includes all work south of the California Incline, will be completed by May 25, 2001
by Modern Continental Construction Company, Inc., under their present Contract 7490
(CCS). Phase 2, which will include all work north of the California Incline, will be
completed by May 24, 2002. Given this schedule change and anticipated increased
construction prices, Staff recommends that the City delete all construction work north of
the incline from Contract 7490 (CCS) with Modern Continental Construction Company,
Inc., and re-bid the remaining work north of the California Incline (Phase 2).
Costs associated with these time extensions are described below.
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Construction Phase 1
The additional construction costs for the extension of this phase of the project to May 1,
2001 include a compromise settlement with Modern Continental of previous payment
disputes, as well as compensation for additional work not in the original scope of the
project. These costs are within the budget authority previously awarded with Contract
7490 (CCS). The requested contingency is slightly more than similar contracts, primarily
because it includes funds for the rehabilitation of approximately 2,700 feet of existing 24
and 30-inch local sewer mains which likely will be added to this contract. Funds required
are as follows:
Contingency $ 3,150,000
Funds Required for Contract 7476 (CCS): $3,150,000
Construction Phase 2
No action is required at this time. Council will be requested to award Phase 2 as a
separate construction contract later in the fiscal year.
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, soils testing and noise and vibration monitoring. If the current project
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completion date is extended one year to May 24, 2001, the following additional services
are required:
Construction Management and Inspection Services: $1,368,037
Contingency: $205,000
Funds Required for Contract 7476 (CCS): $1,573,037
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 will be required to complete Phase 1, due to the complexity of the project,
and to prepare an additional bid package for Phase 2. Additional Engineer of Record
services will be required as Phase 1 progresses.
Additional Design & Engineer of Record Services: $404,000
Contingency: $ 60,600
Funds Required for Contract 7216 (CCS): $464,600
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
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community. All print material, project mailings, and signage are included in the contract.
The following additional services are required:
Community Outreach Services: $259,000
Contingency: $ 38,850
Funds Required for Contract 7355: $297,850
Budget/Financial Impact
Funds Required
Construction Contract 7490: $3,150,000
Consultant Contract 7476: $1,573,037
Consultant Contract 7216: $ 464,600
Consultant Contract 7355: $ 297,850
Total Funds Required: $5,485,487
Funds in the amount of $5,485,487 are available for appropriation from the Wastewater
Fund to Account Number C31094101.589000 (PCH Sewer Replacement). Approximately
98% of all capital improvement costs for the Pacific Coast Highway Sewer Replacement
project are passed through to the City of Los Angeles and the Hyperion System contract
agencies on a reimbursement basis, as stipulated under the Wastewater Services
Agreement between Santa Monica and Los Angeles.
Recommendation
Staff recommends that the City Council:
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1. Authorize the City Manager to negotiate and execute a Modification to Agreement
7490 (CCS) with Modern Continental Construction Company, Inc., to delete the
construction work north of the California Incline and to resolve various
compensation issues, plus $3,150,000 contingency;
2. Authorize the City Manager to negotiate and execute a Modification to Agreement
7476 with Black & Veatch, Inc. up to the amount of $1,368,037 plus $205,000
contingency;
3. Authorize the City Manager to negotiate and execute a Modification to Agreement
7216 with Montgomery Watson, up to the amount of $404,000 plus $60,600
contingency;
4. Authorize the City Manager to negotiate and execute a Modification to Agreement
7355 with Harris and Company up to the amount of $259,000 plus $38,850
contingency;
5. Appropriate an additional $5,485,487 from Wastewater Fund 31 to Account
C31094101.589000.
6. 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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