City Council Meeting: March 25, 2008

Agenda Item: 1-I

To: Mayor and City Council

From: Joan Akins, Assistant Director – Environmental and Public Works Management

Subject: Amendment to Construction Contract 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., for additional abatement of creosote containing materials in the amount of $450,000 plus a contingency amount of $45,000, in the event unforeseen conditions should arise, for a new not to exceed amount of $1,931,513; and,

1. authorize the Assistant Director of Environmental and Public Works Management to issue any necessary change orders to complete additional work within budget authority.

Executive Summary

The site at 415 Pacific Coast Highway is owned by the State of California.  Pursuant to a long-term operating agreement with the State, the City of Santa Monica is responsible for all site improvements, maintenance, and operations.  The City has contracted Midwest Environmental Control, Inc., (MEC) to perform abatement of asbestos and lead containing materials for the rehabilitation and adaptive reuse of the Annenberg Community Beach Club at Santa Monica State Beach. Recent excavation activities have revealed additional hazardous materials that require abatement by MEC. The high level of creosote containing materials found in each stage of excavation could not be determined prior to each phase of work. A modification to the current contract is necessary. Funds for the amendment to the construction contract are available from the project budget.

Background

Construction of the Annenberg Community Beach Club at Santa Monica State Beach, a public accessible beach facility, is currently underway. The City has contracted Midwest Environmental Control, Inc., (MEC) to perform abatement of asbestos and lead containing materials and selective demolition of the former Locker Building, historic North House, and bulkhead and abatement of hazardous materials discovered during site excavation. Recent rehabilitation activities including excavation for the installation of permanent utilities and site wall footings at the east side of the property and north side of the historic North House have revealed additional hazardous materials that require abatement prior to continued rehabilitation.

On February 26, 2008, Council approved the second modification to Contract No. 8652 (CCS) to include additional abatement and disposal of materials revealed during rehabilitation activities in an amount of $242,745, including 10% contingency, which resulted in a not to exceed contract value of $1,436,513, including a 10% contingency and a one-time $7,822 addition for off-site hazardous abatement services at City Hall. On September 11, 2007, Council approved the first modification to Contract No. 8652 (CCS) to include additional abatement and disposal of materials revealed during site demolition in an amount of $438,900, including 10% contingency, which resulted in a not to exceed contract value of $1,193,768, including a 10% contingency. Council awarded Contract No. 8652 (CCS) with MEC for selective demolition and the abatement of asbestos and lead containing materials for an amount not to exceed $747,046, including a 10% contingency at the Council Meeting held November 14, 2006.

Discussion

Recent rehabilitation activities including excavation for installation of permanent utilities and site wall footings at the east side of the property and north side of the historic North House revealed additional unforeseen sub-surface creosote containing materials necessitating abatement and disposal of those materials. Project excavation activities are nearing completion. The high prevalence of buried creosote structural components is common in this area of the beach however, the extent could not be determined prior to excavation activities.

This modification will require an increase in the contract in an amount of $450,000, plus a 10% contingency ($45,000), in the event additional unforeseen conditions should arise, for a total of $495,000. This modification will result in a not to exceed contract value of $1,931,513, which includes a 10% contingency and a one-time $7,822 addition for off-site hazardous abatement services at City Hall.

MEC has performed abatement of contaminated materials including removal and disposal of asbestos, lead, and creosote containing materials and soil located at the Locker Building, bulkhead, historic North House, and at the southerly parking lot. 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.

Financial Impacts & Budget Actions

Funds for the amendment to the construction contract in the amount of $495,000 are available in account C010520.589000, “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 construction 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, Project Manager

Approved:	Forwarded to Council:
Joan Akins Assistant Director - Environmental and Public Works Management Department	P. Lamont Ewell City Manager