SR-700-009 (2)
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City Council Meeting: May 13, 2003 Santa Monica, California
TO: Mayor and City Council
FROM: City Staff
SUBJECT:Modification to Contract 8031 (CCS) with Amelco Construction for the
Fire Station No. 2 Reconstruction
Introduction
This report recommends that the City Council authorize the City Manager to negotiate and
execute a modification to Contract 8031(CCS) with Amelco Construction, a division of
Amelco Industries (Amelco) in the amount of $84,000 for construction services at Santa
Monica Fire Station No. 2.
Background
On May 23, 2000, the City Council awarded Contract Number 7722 (CCS) for Fire Station
No. 2 reconstruction to Vahdani Construction Co., Inc. in the amount of $1,844,000 with an
approved contingency fund of $276,600 following a competitive bid process. Work
commenced on June 5, 2000 and was scheduled for completion by June 23, 2001.
In July 2001, the City began to receive stop notice claims from subcontractors who had
provided labor and materials on the project but asserted Vahdani had not paid them. On
August 27, 2001, the City served a Notice of Default on Vahdani, who failed to cure any of
the defaults within the cure period allowed under the construction contract resulting in the
default of its contract.
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On November 13, 2001, the City Council awarded contract 8031 (CCS) to Amelco in the
amount of $1,147,901.48, with no contingency, to complete construction of the Fire Station
from proceeds provided by the surety bond company and the remainder of Vahdani?s
contract. Amelco substantially completed the project in January 2003.
Discussion
During construction, Amelco was required to furnish and install various construction
related items required to complete the project, such as security lighting, soils compaction
and miscellaneous finishing work, that were not in the original scope of work and no
contingency had been provided for such purposes. The necessity of the work and the
reasonableness of the cost were assessed by staff and were authorized to ensure timely
project completion.
Budget/Financial Impact
Funds in the amount of $84,000 are available in account C01048597.589000, ?Design
Study-Replace Fire Station 2.?
Recommendation
Staff recommends that the City Council authorize the City Manager to negotiate and
execute a modification to Contract 8031(CCS) with Amelco Construction in the amount
of $84,000.
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Prepared by: Craig Perkins, Director of Environmental and Public Works Management
Ettore Berardinelli, Fire Chief
Anthony Antich, P.E., City Engineer
Bill Zein, P.E., Principal Civil Engineer
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