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SR-506-004-04 (2) EPWM/RM: CP:JM City Council Meeting: February 28, 2006 Santa Monica, California TO: Mayor and City Council FROM: City Staff SUBJECT:Authorization to Negotiate Terms and Conditions for Possible Purchase of a Sewer Easement at 120 Colorado Avenue, and Approval of Professional Services Agreement for Design of the Colorado/Ocean Avenue Relief Sewer Introduction This report requests that the Council authorize staff to explore and negotiate the possible acquisition of a sewer easement at 120 Colorado Avenue for the purpose of completing improvements to the Colorado/Ocean Avenue relief sewer project. This report also recommends that the City Council authorize the City Manager to negotiate and execute a professional services contract in an amount not to exceed $800,000 with Black & Veatch Corporation for engineering the Colorado/Ocean Avenue Relief Sewer Project. There is a need to both increase the capacity of the sewer system to accommodate current and anticipated future flows as well as provide redundancy in this critical section of the sewer system. Background An existing 30? diameter sewer main serves as the backbone to the City?s northern sewage collection system, handling two-thirds of all wastewater flows from that section of the community. The sewer line originates at Colorado Avenue, runs under the 1 western portion of the Holiday Inn site and under the I-10 Freeway, crosses beneath the old Rand Corporation property and connects to a recently lined 39? diameter main in Ocean Avenue. This sewer line was damaged during the Northridge earthquake in 1994 and as a result, rehabilitation is needed. Black & Veatch Corporation previously performed a feasibility study and a preliminary design for the proposed new Colorado/Ocean Avenue relief sewer with remaining contract authority from the FEMA City-wide sewer repair program. The preliminary design was approved in November 2005 and included a review of all available record information, calculation of future flow in the affected area of the City, verification of the capacity of the existing and proposed sewer, alternate alignments including the pros and cons for each route, feedback from affected agencies, and final plan changes incorporating comments and recommendations on the preferred design alternative. Contract authority for Black & Veatch?s feasibility study and preliminary design under the existing FEMA program is exhausted and a new contract for engineering services is necessary. Discussion The best approach to meet these important needs from both an engineering feasibility and cost-effectiveness standpoint is to construct a new sewer main from Colorado Avenue, under the eastern portion of the Holiday Inn site, under the I-10 Freeway and under the former Rand property ultimately connecting to the sewer main in Ocean Avenue. Once the new line is operational, the existing main will be rehabilitated so that 2 both sections can work in tandem with each other. The proposed location of the new project requires the acquisition of an easement at 120 Colorado Avenue, the Holiday Inn site. If an easement cannot be obtained through negotiations, staff will request the City Council authorize an eminent domain proceeding to acquire the easement. A Request for Proposal (RFP) for design of the Colorado/Ocean Avenue Relief Sewer Project was posted on the City?s web site and sent to eleven public plan rooms. The RFP packet was requested by thirty-three firms. On November 16, 2005, a pre- proposal meeting was held and eight firms attended. On December 14, 2005, the City received one proposal from Black & Veatch Corporation. Staff contacted the firms that attended the pre-proposal meeting as to why they chose not to submit on the project. The reasons given ranged from being too busy at this time to having difficulty in getting subconsultants for their project team. The City organized a review committee consisting of staff from the Water Resources and Civil Engineering and Architecture Divisions of the Environmental and Public Works Management Department to evaluate the Black & Veatch proposal. The selection criteria included the firm?s understanding of the project?s scope; direct experience on similar projects and approach to work; technical competence and qualifications of the proposed staff; and the ability to meet the desired time frames and cost of services. Black & Veatch Corporation has experience with design of similar projects, including the City of Los Angeles Department of Water and Power?s design and construction phase services for the Stone Canyon pumping and filtration plant; the Ventura County 3 Calleguas Municipal Water District?s Water Resources Master Plan; and the City of Santa Monica?s PCH Replacement Sewer, Moss Avenue Pump Station, and Ocean Avenue/Main Street/Neilson Way sewer projects. All members of the committee concur that Black & Veatch Corporation is highly qualified to perform this work and has the experience and qualified staff to handle this project. Staff recommends Black & Veatch Corporation for the design of the Colorado/Ocean Avenue Relief Sewer Project. Budget/Financial Impact The Federal Emergency Management Agency provided funds for various upgrade projects throughout the City as a result of the 1994 Northridge Earthquake. These projects are 95% complete with balances remaining. Authorization was received from FEMA to utilize a portion of the remaining balance for the Colorado/Ocean Avenue Relief Sewer Project. The cost of the feasibility study was $20,000, and the cost of the preliminary design was $74,000. Total cost of the recommended professional services agreement is not to exceed $800,000, and sufficient budgeted funds are available at account E130873.555060. The acquisition cost of the sewer easement will be reported when Council is asked to take an action regarding the acquisition of the easement. Funds are available in budget account E130873.555010 for acquisition of the easement. Estimated construction costs range between six and eight million dollars. Sufficient budget authority for construction costs exist in eligible FEMA/OES reimbursement 4 accounts and in City AB 1600 wastewater capital project accounts. Staff will return to Council at a later date for construction contract approval and final budget adjustments. Recommendation Staff recommends that the City Council: 1. Authorize staff to explore the possible acquisition of a sewer easement at 120 Colorado Avenue; 2. Authorize the City Manager to negotiate and execute a professional services agreement with the Black & Veatch Corporation in an amount not to exceed $800,000 for design services for the Colorado/Ocean Relief Sewer project; and 3. Authorize the City Engineer to issue any necessary change orders to complete additional work within budget authority. Prepared by: Craig Perkins, Director, Environmental and Public Works Management Jeff Mathieu, Director, Resource Management Reference Contract No. 8565 (CCS) 5