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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 1 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 2 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. 3 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 4 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 5 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: 6 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 7