SR-309-000 (15)
EPWM: CP: AA: LF: MM; F:\DATA\SPFILES\SP1662\cc1662Pool4.DOC
City Council Meeting: February 12, 2002 Santa Monica, California
TO: Mayor and City Council
FROM: City Staff
SUBJECT:Modification to Contract Number 7978 (CCS) with Swinerton Builders for
the Municipal Pool Project
Introduction
This report recommends that the City Council authorize the City Manager to execute a
modification to Contract No. 7978 (CCS) with Swinerton Builders in the amount of
$842,585 to incorporate the retainage funds from the defaulting contractor, Vahdani
Construction Company, and approve the reallocation of Federal Emergency Management
Agency (FEMA) Grant Acceleration Program (GAP) Project savings in the Disaster
Recovery Fund to this project for project contingency.
Discussion
Vahdani Construction Co., Inc. (Vahdani), contractor for Phase II construction of the
Municipal Pool Complex located on the Santa Monica College Campus, defaulted on April
3, 2001. The City invoked the performance bond issued on the project and the bonding
company selected Swinerton Builders to complete the project using the remaining City
funds and performance bond proceeds. On July 10, 2001, Council approved Contract
Number 7978 (CCS) with Swinerton for $6.85 Million, with completion scheduled for this
spring. As a result of these actions, various technical financial adjustments need to be
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approved by Council:
Vahdani set up an escrow account for retention that was not previously allocated to
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Swinerton for this project. The escrow account retention amount of $234,595.21
was returned by the bank to the City on January 2, 2002 and is now available for
reallocation.
The FEMA GAP project savings approved for use on this project by FEMA have not
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been allocated to this project. The remaining FEMA GAP Project savings are
$607,990.
The additional funding is requested to be added to the contingency to allow for payment to
Swinerton for addressing latent defects with the original work. The City will seek
reimbursement from the bonding company for this work. In addition, the City has added a
passenger drop-off area and fiber-optic capacity to the project that was not part of the
original contract.
Budget/Financial Impact
Swinerton Builders, Contractor – Contract No. 7978 (CCS)
Original Contract Amount including contingency: $6,850,000
Funds available from escrow account refund: $ 234,595
Additional Funds from GAP Project savings: $ 607,990
Contract Modification $ 842,585
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Total Funds for Contract No. 7978 (CCS): $7,692,585
The escrow and GAP funds will be transferred to the following accounts:
C01066499.589000 “Municipal Pool Replacement” $158,752
C01066402.589000 “Municipal Pool” $ 75,843
E13106001 “Municipal Pool” $607,990
Total Available: $842,585
Recommendation
Staff recommends that the City Council:
1. Authorize the City Manager to execute a contract modification to Contract No. 7978
(CCS) with Swinerton Builders for contingency in the amount of $842,585; and
2. 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
Barbara Stinchfield, Director of Community and Cultural Services
Lauren Friedman, Senior Architect
Miriam Mulder, Architect
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