SR-800-008 (2)
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Council Meeting: August 11, 1987
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Santa Monica, California
TO:
Mayor and City Council
FROM:
City Staff
SUBJECT:
Recommendation to Increase the Amount of Contingencies
on the Airport Development Project
Introduction
This report recommends that the City Council increase the amount
authorized for contingencies for Calfon Construction, Inc. by
$150,000 from funds already budgeted in the account for the
Airport Development Project. These funds would be encumbered to
Calfon to increase the total amount available for contingencies
from $200,000 to $350,000, or from the current less than four
percent to seven percent of the total contract amount.
Background
In September, 1986, the City Council awarded a contract to CalFon
Construction for Phase I of the Airport Development Program. It
is necessary to increase the current contingency amount of
$200,000 previously set aside by Council for the contract by
$150,000 to provide funding for some unforeseen costs which are
anticipated on certain bid items. These costs are related to the
need to relocate navigation aids and a retaining wall and other
items, as well as the discovery that utilities installed in the
forties and fifties were not in the locations shown on available
plans. The contract contingency amount is about seven percent,
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AUG 1 1 1987
which is well below the accepted standards for construction
projects of this nature.
Budget/Fiscal Impact
No budgetary impact is anticipated as sufficient funds are
budgeted for the project in Account No. 33-710-631-000-903.
Recommendation
staff respectfully recommends that the City council increase the
appropriation authority by $150,000 to $350,000 to cover
contingencies and that this total amount be encumbered under the
Calfon Contract No. 4807 (c.c.s.).
It is further recommended
that the city Engineer be authorized to issue any change orders
necessary to complete additional work to the extent of available
funds, consistent with the Administrative Instructions on Change
Orders.
Prepared by: Hank Dittmar, Airport Director
Frank Barnes, Superintendent of
Operations and Facilities
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