SR-505-001-04 (6)
EPMW:CP:AA:DP:FJS:EC: F:\DATA\SPFILES\Sp1733 Project 15B\CC1733co1.wpd
Council Meeting: April 10, 2001 Santa Monica, California
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Recommendation to Authorize the City Manager to Increase the Contingency
to Contract 7592 (CCS) with Preussag Pipe Rehabilitation for Work on
Sewer Project 15B
Introduction
This report recommends that the City Council approve an increase in the contingency to
Contract 7592 (CCS) with Preussag Pipe Rehabilitation, for work on Sewer Project 15B,
Sewer Repair Project at Various Locations in the Southwest Portion of the City Bounded
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by Pico Boulevard, 16 Street, Ocean Avenue/Barnard Way and the southerly city limits.
Background
On September 28, 1999, the City Council awarded a construction contract to Preussag
Pipe Rehabilitation in the amount of $1,900,329, and approved a construction contingency
amount of $285,049 for work on Sewer Project 15B. Contract 7592 (CCS) between the
City and Preussag Pipe Rehabilitation was executed on November 10, 1999.
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During the course of the sewer construction, a number of unforeseen conditions arose,
resulting in the issuance of change orders to Preussag Pipe Rehabilitation. This included
discovering unmapped utilities, and the need to substitute lining operations with open cut,
as well as other unforeseen conditions. Previously approved Change Orders 1 and 2 have
depleted most of the contingency reserve, making it necessary to appropriate additional
funds for Change Order 3.
Discussion
Sewer construction, under this contract, includes the removal and replacement of 1,100
feet of sewer pipe and the lining of 42,864 feet of sewers at various locations in the
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southwest portion of the City bounded by Pico Boulevard, 16 Street, Ocean
Avenue/Barnard Way and the South City Limits. In order to minimize the impact of this
construction project on the public, the contractor used trenchless methods for a major
portion of the job. However, after pre-construction video inspection was done and
reviewed by the engineer, some sewer pipes that were specified as lining, needed to be
removed and replaced by open cut. The open cut operation required an extensive field
investigation. During the excavation, the Contractor encountered numerous existing and
abandoned utilities that were in the path of the new installations. The Contractor had to
provide a different type of equipment and materials to remove the existing sewer pipe and
install the new sewer pipe.
During the pre-construction video inspection of the work that was scheduled for lining at
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Marine Place North - Lincoln Court and 11 Street, Ocean Park Blvd. - Neilson Way to
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Main Street; 4 Street - Hill Street to Raymond Avenue, Ashland Avenue to Dewey Street;
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4 Court - Marine Street to Dewey Street; 7th Street - Ozone Street to South City Limits;
Bentley Ct., Ruskin St. and Goldsmith St. - Marine Street to Dead End it was discovered
that the existing sewer pipe developed additional sags and was surcharging. Since lining
will not eliminate deep sags or surcharging, the open cut method was the only reasonable
solution. The City negotiated with the Contractor and agreed on the unit cost for each
location. The added cost for this work is $41,800.
Budget/Financial Impact
The following shows the status of the original project contingency and the effect of Change
Orders 1, 2 and 3:
Date Action Amount Remaining
Balance
September 28, 1999 Original Contingency $285,049.00 $285,049.00
February 12, 2001 Change Order 1 $ 27,519.14 $257,528.86
March 2, 2001 Change Order 2 $257,449.60 $ 79.26
Pending Change Order 3 $ 41,800.00 ($41,800)
Funds in the amount of $41,800 are available in account No.
E13315B00.555010.40000.
Recommendation
Staff recommends that the City Council:
1. Approve an increase in the contingency to construction contract 7592 (CCS) with
Preussag Pipe Rehabilitationin the amount of $41,800.
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2. Authorize the City Engineer to issue any necessary additional change orders to
complete Sewer Project 15B in conformance with City Administrative Instructions on
change orders.
Prepared by: Craig Perkins, Director, Environmental and Public Works Management
Anthony Antich, City Engineer
F.J. Schroeder, Disaster Recovery Program Manager
Eugenia Chusid, Project Manager
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