DATE: MARCH 22, 2022
DEPARTMENT: PUBLIC WORKS
FROM: DAVID JACOBS, DIRECTOR
BY: BRIAN FRUS, SENIOR ENGINEER
TITLE: AMENDMENT TO PURCHASE ORDER BETWEEN THE CITY OF SALINAS AND WALLACE GROUP INC. FOR SUPPORT SERVICES RELATED TO THE LAKE STREET EMERGENCY SEWER REPAIRS RECOMMENDED MOTION:
A motion to 1) approve a Resolution for a purchase order amendment in the amount of $80,000 between the City of Salinas and Wallace Group, Inc. for support services related to the Lake Street Emergency Sewer repairs; 2) authorize a transfer of $80,000 from Sanitary Sewer Fund balance to the Capital Projects Fund; and 3) authorize an increase of the CIP 9302, Lake Street Emergency Repairs, appropriation in the same amount.
RECOMMENDATION:
It is recommended that the City Council 1) approve a resolution for a purchase order amendment in the amount of $80,000 between the City of Salinas and Wallace Group, Inc. for support services related to the Lake Street Emergency Sewer repairs; 2) authorize a transfer of $80,000 from Sanitary Sewer Fund balance to the Capital Projects Fund; and 3) authorize an increase of the CIP 9302, Lake Street Emergency Repairs, appropriation in the same amount.
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.
On March 15, 2021 the City authorized Wallace Group under the mutual On-Call Master Service Agreement to perform design, construction management and inspection throughout the duration of the project for $99,425 which was amended on October 26, 2021 to $199,000.
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, Wallace Group, Inc. or 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.
Based on the extended construction schedule and inspection needs for the project, Wallace Group is requesting a purchase order amendment for their services in the amount of $80,000.
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 purchase order is $80,000.
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, of which $158,314 were allocated in 5800.50.9302-63.5010 (Professional Services). The purchase order amendment will require a transfer of an additional $80,000 to this account from 6400 Sewer Enterprise fund in which there is a total of $770,000 available.
ATTACHMENTS:
Resolution
Purchase order Amendment to Professional Services Agreement City of Salinas and Wallace Group, Inc.
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