SR-505-001-04 (8)
EPWM: CP: AA: JS: SL;F:\DATA\SPFILES\SP1763\cc1763KEC_6_12.DOC
City Council Meeting: June 12, 2001 Santa Monica, California
TO: Mayor and City Council
FROM: City Staff
SUBJECT:Contract Amendments for the Ocean Avenue and Neilson Way Relief Sewer
Project; Appropriation of $4,293,596 from the Wastewater Fund and Waiver
of Competitive Bidding Associated with these Contract Amendments.
Introduction
This report recommends that the City Council waive competitive bidding and authorize the
City Manager to negotiate and execute an increase in the base contract amount for
Contract 7602 (CCS) with KEC Engineering, Inc., in an amount not to exceed $3,072,916
for the construction of sewer mains on Ocean Avenue, Neilson Way and Main Street from
Seaside Terrace to the southerly City limits; authorize the City Manager to approve a
Modification to Agreement 7476 (CCS) with Black and Veatch, Inc., in an amount not to
exceed $400,000 for construction management services; approve a Modification to
Agreement 7216 with Montgomery Watson Americas in an amount not to exceed $135,680
for Engineer of Record services during construction; and approve a Modification to
Agreement 7355 (CCS) with Harris and Company in an amount not to exceed $85,000 for
community outreach services for the Ocean Avenue and Neilson Way Relief Sewer
Project. Staff also recommends that $4,293,596 be appropriated from the Wastewater
Fund to pay for these contract and agreement modifications. The City of Los Angeles
reimburses the City of Santa Monica one hundred percent of the cost of the project. In
turn, the City of Los Angeles bills Santa Monica?s share (which is approximately two
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percent of the cost) in the annual invoice for Hyperion capital costs.
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 earthquake. The cities of Santa
Monica and Los Angeles are jointly working on this rehabilitation effort, with the City of
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 project, the Appian Way sewer project, the Ocean Avenue to Pico Boulevard
to Main Street sewer rehabilitation project, the Moss Avenue Pumping Station project and
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 complete on the Appian Way project
and the Moss Avenue Pump Station. Construction of the PCH Replacement Sewer and
the Ocean Avenue and Neilson Way Relief Sewer projects are currently underway.
Discussion
The Ocean Avenue and Neilson Way Relief Sewer project includes the installation of
approximately 6,600 feet of pipe and various junction structures under Ocean Avenue,
Neilson Way, Pico Boulevard, Pier Street, and Main Street from Seaside Terrace to the
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southerly City limits. Construction of the Ocean Avenue and Neilson Way Relief Sewer
allows the City to permanently divert flows away from the Ocean Avenue and Main Street
sewers. On October 12, 1999 a contract in the amount of $6,766,440 was awarded to KEC
Engineering for construction of the project.
During construction, changes driven by increased public outreach and coordination with
other projects, enhancements to the project by both cities, changes imposed by other
agencies, unforeseen utility conflicts and contaminated soils, as described in Attachment
A, have added both costs and delays to the construction contract with KEC Engineering,
Inc. The total added cost is as follows:
Total Additional Construction: $3,072,916
Contingency: $600,000
Total Additional Funds Required for Contract 7602 $3,672,916
(CCS)
Because the cost of the 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 the additional work. Pursuant to Santa Monica Municipal Code
Section 2.24.071(e) competitive bidding can be waived by Council for the following
reasons:
(e)(1) the goods or services can be purchased more economically on the open
market.
(e) (3) due to the urgent necessity, the public health, welfare or safety would be
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jeopardized.
Staff believes that additional mobilization and demobilization costs would be incurred by a
second contractor. In addition, 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 and the delays encountered, a five-month time
extension is also required that will extend the contract end date from May 31, 2001 to
October 31, 2001.
Construction Management Services
The construction management and inspection contract with Black and Veatch, Inc., is
dependent upon the length of the construction period and also includes complete materials
testing and noise and vibration management. The project completion date has been
extended five months from May 31, 2001 to October 31, 2001. Additional construction
management and inspection service are therefore required for contract 7476 (CCS) in the
amount of $400,000.
Engineer of Record Services
Engineer of Record services are necessary during the extended construction period for
the review of shop drawings, requests for information and preparation of small changes in
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design. Additional design services are also required due to unforeseen utility conflicts.
Additional engineer of record services are therefore required for contract 7216 (CCS) in
the amount of $135,680.
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. Additional community outreach services are therefore required for contract
7355 (CCS) in the amount of $85,000.
Budget/Financial Impact
FUNDS REQUIRED:
Construction Contract 7602 $3,072,916
Contingency Contract 7602 $600,000
Consultant Contract 7476 $400,000
Consultant Contract 7216 $135,680
Consultant Contract 7355 $85,000
Total Funds Required: $4,293,596
It is requested that funds in the amount of $3,686,096 be appropriated from the
Wastewater Fund to account C31094300.589002 for the following contracts:
7602 Ocean Avenue/Neilson Way/Main $2,570,416
7602 Contingency Ocean/Neilson/Main $600,000
7476 Ocean Avenue/Neilson Way/Main $360,000
7216 Ocean Avenue/Neilson Way/Main $85,680
7355 Ocean Avenue/Neilson Way/Main $70,000
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Wastewater Funds Required: $3,686,096
The City of Los Angeles reimburses the City of Santa Monica one hundred percent of the
cost of the project, which will be recorded in revenue account 31661.400890 in FY2001-
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. In addition, it is
requested that funds in the amount of $607,500 be appropriated from the Wastewater
Fund account C31094300.589001 for the following contracts:
nd
7602 2 Street/Hampton Ave. $502,500
nd
7476 2 Street/Hampton Ave. $40,000
nd
7216 2 Street/Hampton Ave. $50,000
nd
7355 2 Street/Hampton Ave. $15,000
AB1600 Funds Required: $607,500
These costs are eligible for reimbursement from the City?s AB 1600 Funds.
Recommendation
Staff recommends that the City Council:
1. Waive competitive bidding and authorize the City Manager to negotiate and
execute an increase in the base contract amount of Contract 7602 (CCS) with KEC
Engineering in the amount of $3,072,916, plus $600,000 contingency;
2. Authorize the City Manager to negotiate and execute a Modification to Agreement
7476 with Black and Veatch, Inc., in an amount not to exceed $400,000;
3. Authorize the City Manager to negotiate and execute a Modification to Agreement
7216 with Montgomery Watson Americas, in amount not to exceed $135,680;
4. Authorize the City Manager to negotiate and execute a Modification to Agreement
7355 with the Harris Company, in an amount not to exceed $85,000;
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5. Appropriate $3,686,096 from Wastewater Fund 31 to Account C31094300.589002;
6. Appropriate $607,500 from Wastewater Fund 31 to Account Number
C31094300.589001, and
7. 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
Attachment A: Construction Cost Overruns
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ATTACHMENT A
CONSTRUCTION COST OVERRUNS
Item Unforeseen Enhancement Cost
Condition By
1 Changes driven by coordination with City of Santa $457,250
other projects and mitigation of impacts Monica
to the public.
2 Enhancements and additions to project City of Santa $837,116
scope. Monica
3 Changes imposed by other agencies. City of Los $972,000
Angeles
4 Changes resulting from unforeseen $506,550
conditions and utility conflicts. Yes
5 Changes resulting from contaminated $300,000
soils Yes
Total Increase in Base Contract $3,072,916
Amount:
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