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SR-091107-1H~~ City Council Report City of Santa Monica City Council Meeting: September 11, 2007 Agenda Item: To: Mayor and City Council From: Craig Perkins, Director- Environmental and Public Works Management Subject: Amendment to Construction Contract No. 8652; and Modification to Professional Services Agreement No. 8722 for the Annenberg Community Beach Club at Santa Monica State Beach Recommended Action Staff recommends that the City Council: 1. authorize the City Manager to amend construction contract No. 8652 with Midwest Environmental Control, Inc., (MEC) for additional abatement of asbestos containing materials in the amount or $399,000 plus a contingency amount of $39,900 (10%), in the event unforeseen conditions should arise, for a total of $438,900; 2. authorize the City Manager to modify professional services agreement No. 8772 with Encorp Environmental Management & Services for testing and third party monitoring of abatement activity in an amount not to exceed $64,900; and, 3. authorize the Director of Environmental and Public Works Management to issue any necessary change orders to complete additional work within budget authority. 1 Executive Summary The site at 415 Pacific Coast Highway is owned by the State of California. Pursuant to along-term operating agreement with the State, the City of Santa Monica is responsible for all site improvements, maintenance, and operations. The City contracted Midwest Environmental Control, Inc, to perform .abatement of asbestos and lead containing materials and Encorp Environmental Management & Services to monitor those activities for the rehabilitation and adaptive reuse of the Annenberg Community Beach Club at Santa Monica State Beach. Selective demolition and excavation activity has uncovered additional unforeseen hazardous materials that require abatement by MEC and third party monitoring of abatement activities by Encorp. Additional contract authority in the amount of $438,900 is needed in order to perform the abatement scope of work with MEC. Increased contract authority in the amount of $64,900 for testing and third party monitoring services with Encorp is also required. With these changes, the construction contract with MEC will be a total of $1,185,946, including contingency. The modified professional services agreement with Encorp will not exceed a total of $180,890. Discussion Construction Contract. On February 20, 2007, the City entered into a construction contract with MEC for abatement of asbestos and lead containing materials and selective demolition in the amount not to exceed of $747,046, including a 10% contingency. During recent soils excavation activities, asbestos containing materials were discovered, necessitating abatement and disposal of those materials and remediation of contaminated soil. This modification will require an increase in the 2 contract in an amount of $399,000, plus a 10% contingency ($39,900), in the event unforeseen conditions should arise, for a total of $438,900. This modification will result in a not to exceed contract value of $1,185,946. MEC has performed abatement of contaminated materials including removal and disposal of asbestos, lead, and creosote containing materials located at the Locker Building, bulkhead and historic North House. Their services performed have been professional, within budget and timely. Their previous work on the project makes them highly familiar with site specific removal and disposal procedural requirements. Professional Service Agreement. On August 17, 2005, the City entered into a professional services agreement with Encorp Environmental Management & Services for environmental assessment services in the amount of $29,170. Testing and analysis performed by the firm revealed that structures on the site contained hazardous materials. On March 8, 2007, the City modified the agreement to include abatement monitoring services in an amount of $15,020, which resulted in a modified contract amount of $44,190. On August 24, 2007, the City modified the agreement to include additional environmental testing and abatement monitoring services for materials revealed during site demolition in an amount of $71,500, which resulted in a modified contract amount of $115,690. During recent soils excavation activities, additional materials have been discovered which will require further environmental testing of materials, soils and water and abatement monitoring services. This modification will 3 require an increase in the contract in an amount of $64,900, which results in a modified contract amount of $180,590. Encorp Environmental Management & Services has performed environmental assessment services for the project site, including testing for asbestos and lead containing materials and third party monitoring services for the North House, Locker and Public Restroom buildings, and soils remediation. Their services performed have been professional, within budget, and timely. The firm is highly familiar with the site conditions, has experience with projects similar in nature, and is an expert in the field of assessment and removal monitoring of hazardous materials. Previous Council Actions On May 24, 2007, Council authorized the City Manger to modify professional services agreement No. 8772 with Encorp Environmental Management & Services not to exceed $115,690. On November 14, 2006, Council authorized the City Manger to award a construction contract with MEC for the abatement of asbestos and lead containing materials not to exceed $747,046. Budget/Financial Impact Funds for the amendment to the construction contract in the amount of $439,900 are available from currently available contingency funds in account 0010520.589000.740522, "415 PCH". 4 Funds for the modification to the professional service agreement in the amount of $64,900 are available from currently available contingency funds in account 0010520.589000.740522, "415 PCH". It is anticipated that staff will need to return to Council at a later date to replenish all or a portion of these contingency funds in order to complete the project. If necessary, an alternative source of funds for the additional work will be identified at that time. Prepared by: Voneelya Simmons, Associate Project Manager Forwarded to Council: z Craig Pefkins'" `° P/.'L~rfiont EN Director -Environmental and Public t Manager Works Management Department 5 Reference Amendments to Contract Nos. 8652 (CCS) and 8722 (CCS).