DATE: MARCH 22, 2022
DEPARTMENT: PUBLIC WORKS
FROM: DAVID JACOBS, DIRECTOR
BY: BRIAN FRUS, SENIOR ENGINEER
TITLE: AMENDMENT TO CONTRACT BETWEEN THE CITY OF SALINAS AND ANDERSON PACIFIC ENGINEERING CONSTRUCTION FOR CONSTRUCTION SERVICES RELATED TO THE LAKE STREET EMERGENCY SEWER REPAIRS RECOMMENDED MOTION:
A motion to 1) approve a Resolution for a contract amendment in the amount of $1.1M between the City of Salinas and Anderson Pacific Engineering Construction, Inc. for construction services related to the Lake Street Emergency Sewer repairs and extend the term of the agreement; 2) authorize a transfer of $1.1M comprised of up to the following amounts from each respective fund: $203,200 from 2301 Development Fees Sewer and $896,800 from CIP 9853; and 3) authorize an increase of the CIP 9302, Lake Street Emergency Repairs, appropriation for the total.
RECOMMENDATION:
It is recommended that the City Council 1) approve a resolution for a contract amendment in the amount of $1.1M between the City of Salinas and Anderson Pacific Engineering Construction, Inc. for construction services related to the Lake Street Emergency Sewer repairs and extend the term of the agreement; 2) authorize a transfer of $1.1M comprised of up to the following amounts from each respective fund: $203,200 from 2301 Development Fees Sewer and $896,800 from CIP 9853; and 3) authorize an increase of the CIP 9302, Lake Street Emergency Repairs, appropriation for the total.
BACKGROUND:
A release of raw sewage from a City sewer main located in Chinatown occurred February 2, 2021 and was reported the same day. The cause was attributed to failure in nearly 500 feet of aging sewer pipe running the length of East Lake Street. Both engineering and maintenance staff believed that failure of the piping and the risk of another sewage release was highly likely. Thus, engineering engaged a contractor and consultant to perform the repair work on an emergency basis.
A contract to perform the work was executed on April 28, 2021 with Anderson Pacific Engineering Construction (APEC) for an initial estimate of $917,362 performed on a time and material basis. Project construction began in July. A $2.65M increase was approved by Council on December 14, 2021. With this requested increase, the final contract amount will be $4,667,362. As a good faith effort and to assist the City with the financial challenges of this project, APEC has agreed to lower their markup for the remainder of the project. Profit on labor will be reduced by 10% (from 30% to 20%) and profit on equipment, materials and subcontractors will be reduced by 5% (from 10% to 5%).
Work to date has continued to highlight the need to perform the repairs expeditiously. Visual evidence of failure of the decaying sewer line has been noted which could have led to the collapse of East Lake Street has been avoided.
The Lake Street Emergency Project has continued to broaden in scope and complexity in ways that neither engineering, the consultant nor the contractor could have reasonably anticipated or predicted. The location in Chinatown, has required efforts be closely coordinated with law enforcement. Incidents have included assaults on staff and the ongoing theft of property.
Further challenges included traffic control to allow ingress and egress to local businesses and residents limiting the pace of construction, exposure of numerous unknown subsurface obstructions and unmarked utilities, and moisture from the failing pipe causing unstable conditions resulting in trench walls caving in. The original schedule for construction anticipated completion within six weeks. Currently the project is now estimated to be up to 35 weeks of construction.
CEQA CONSIDERATION:
Not a Project. The City of Salinas has determined that the proposed action is not a project as defined by the California Environmental Quality Act (CEQA) (CEQA Guidelines Section 15378).
STRATEGIC PLAN INITIATIVE:
The proposed project and agreement meet the City Council’s Strategic Plan Initiatives of Investment Strategies/Risk Management, and Operational Efficiencies.
DEPARTMENTAL COORDINATION:
This project has and will continue to rely on coordination between Finance, Police, Fire, and the Maintenance Services and Waster Waste and Energy (WWE) divisions in Public Works. WWE will continue to coordinate the overall execution of the project, with the Police Department as necessary to protect public and worker safety. Outreach to the community to mitigate concerns stemming from the potential impact to residents, agencies and businesses that may be affected by the construction work will also continue.
FISCAL AND SUSTAINABILITY IMPACT:
The total cost for the scope of work contained in the amended to the Agreement is $1.1M.
A total of $3,745,847 have been appropriated to CIP 9302, Lake Street Emergency Repairs which is funded by the 6400 Sewer Enterprise fund and 2301 Development Fees, of which $3,561,883 have been allocated in 5800.50.9302-66.4000 (Capital Outlays). The amendment to the agreement will require a transfer of $1.1M to this account comprised of up to $203,200 from 2301 Development Fees Sewer and $896,800 from CIP 9853 in which there is equal amount available. CIP project 9853 is being closed and is no longer needed.
ATTACHMENTS:
Resolution
Contract Amendment No. 3 to Professional Services Agreement City of Salinas and Anderson Pacific Engineering Construction, Inc. for support services for the Lake Street Emergency Repair project Page | 3
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