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<br />6.2D <br /> <br />Unforeseeable subsurface conditions are part of the risk inherent to this type of Page 2 <br />construction. Staff acknowledges that the project proceeded without retuming to <br />Council to receive additional authorization for contract costs in excess of 100/0 of the <br />awarded amount. The City Manager and senior management were apprised of this <br />situation as it developed. They directed the project staff to continue the work based on <br />the risk and potential consequences of stopping the work at that time. A work stoppage <br />in order to receive additional Council authorization may have resulted in increased <br />disruption to area businesses, excessive demobilizationlremobilization construction <br />costs, and may have delayed project completion. Despite the challenges of this project <br />and the pressures of time and money, the project is completed on schedule while <br />maintaining quality workmanship and business relationships, at a cost that exceeds <br />previously approved amounts by 3010. <br /> <br />Bid Package 7 is the seventh distribution pipeline construction project and is part of the <br />delivery system of recycled water to the Seaport area. This project continued the <br />construction of the main transmission piping system along Seaport Boulevard that <br />began in Bid Packages 5 and 6 at Blomquist Street. Piping was also installed along <br />East Bayshore Road and connections made to the completed Bikepath Pipeline and Bid <br />Package 4 projects. More than 3,700 linear feet of 24-inch diameter PVC pipe was <br />constructed. Completion of this work and one short link of transmission piping from Bid <br />Package 8 will allow delivery of recycled water to the Seaport area. <br /> <br />ALTERNAnvES <br />Council may choose not to accept the project or authorize the release of bonds and <br />retention which would be contrary to the terms of the contract and prior Council action. <br /> <br />FISCAL IMPACT <br />Funds have been appropriated from the Water Revenue Bond proceeds. The City has <br />issued a series of three Water Revenue Bonds to finance Phase 1 of the Recycled <br />Water Project. Available project funds, less unattributed interest, total $5,854,318.36 <br />as of March 31, 2009. Up to 25010 of eligible construction costs of Bid Packages 5 <br />through 9 may be reimbursed by the State's Proposition 13 Water Recycling Grant <br />Program. <br /> <br />~ <br /> <br />Phong OUt P.E. <br />Senior Civil Engineer <br /> <br /> <br /> <br />~ A~- <br /> <br />P Sf Vorametsanti, P.E., Acting Manager <br />E gineering and Construction Division <br /> <br /> <br />Pemrl~~ ~ <br /> <br />City Manager <br /> <br />ATTACHMENTS <br />None <br /> <br />RELATED DocUMENTS IN CITY CLERK'S OFFICE <br />None <br />