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SR-417-007 (36)EPWM: CC: AA: BZ: SL; F:\DATA\SPFILES\SP1832\STAFF REPORTS\CC1832B1(DP).doc City Council Meeting: October 14, 2003 Santa Monica, California TO: Mayor and City Council Chairperson and Redevelopment Agency FROM: City Staff SUBJECT: Approve an Increase of $97,725 for Contract No. 8080 (CCS) with Black & Veatch, Inc., for the Seismic Retrofit of Parking Structure 8 In4rnr~li ir4inn This report recommends that the City Council and the Redevelopment Agency approve an increase in Contract No. 8080 (CCS) with Black & Veatch, Inc., in an amount not to exceed $97,725 to cover additional construction management costs for the seismic retrofit construction in Parking Structure 8._ Redevel ent funds will be used to finance these chanqes. Backqround Construction of the seismic retrofit improvements for Parking Structure 8 began in April 2002 and work was to be completed by March 2003. In January 2003, Council approved a modification to Black & Veatch's contract due to a number of unforeseen conditions experienced up to that point and additional work related to American with Disabilities Act compliance. Construction of this additional work ultimately resulted in an extended contract completion date to June 30, 2003. This necessitated three months of additional construction management services, which is the subject of this report. 1 Discussion Performance of the additional construction work, including the replacement of the two exterior stairway towers to comply with ADA standards, has made it necessary to extend the construction management contract by a period of over three months, with resulting cost increases. Foundation inspections, special inspections of steel post-tensioning reinforcement, material testing, noise and vibration monitoring, and payroll compliance documentation monitoring comprise the majority of the increased construction management costs. Staff recommends that Contract No. 8080 (CCS) for construction management services be increased by an amount not to exceed $97,725, for a total of $753,573 for Black & Veatch's work on Parking Structure 8. Redevelopment Considerations The Redevelopment Agency, as the owner of Parking Structure 8, is authorized by Health and Safety Code Section 33400 to maintain, manage, and repair the structure. A Cooperation Agreement executed between the City and the Redevelopment Agency on April 16, 2002, delegates to the City the Agency's authority to carry out the seismic retrofit of Parking Structure 8 and provides for the Agency's funding of those costs that will not be paid for with FEMA funds. The City Council and Redevelopment Agency have previously made the appropriate findings as required by Health and Safety Code Section 33445 to use redevelopment funds for the seismic retrofit of Parking Structure 8. Resolutions adopted by the City 3 Council and Redevelopment Agency on March 5, 2002 determined that the use of these funds is of benefit to the Earthquake Recovery Redevelopment Project Area, no other reasonable means of financing the improvements are available, the project will assist in earthquake recovery efforts and eliminate one or more blighted conditions in the Earthquake Recovery Redevelopment Project Area, and the project is consistent with the Agency's Five-Year Implementation Plan. Budqet/Financial Impact Funds in the amount of $97,725 are available in Earthquake Recovery Redevelopment Account C17062102.589002. Recommendation Staff recommends that the City Council and the Agency: 1. Approve an increase for Contract No. 8080 (CCS) with Black & Veatch Corporation in the amount not to exceed $97,725; and 2. Authorize the City Engineer to issue any necessary change orders to complete additional work within budget authority. Prepared by: Craig Perkins, Director of Environmental and Public Works Management Anthony Antich, P.E., City Engineer Jeff Mathieu, Director of Resource Management Tina Rodriguez, Redevelopment Administrator Bill Zein, P.E., Principal Civil Engineer Susan Lowell, P.E., Civil Engineer 4