AgdaPkt 2011-04-11 - Laserfiche WebLink

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REPORT Page 1 To the Honorable Mayor and City Council From the Ci Mana er April 11, 2011 SUBJECT Increase Contract Amount— Sanitary Sewer and Storm Replacement Project (Manzanita St., Shasta St., Spruce St., Heller St., and Pine St.) RECOMMENDATION Authorize, by motion, the City Manager to increase the contract amoun#, if necessary, up to 20% of the amount awarded. BACKGROUND On January 24, 2011, the city awarded the contract for the Sanitary Sewer and Storm Replacement Project to Robert F. Enz Construction, Inc. of Hollister for the amount of $1,116,405. At #hat time, Council authorized the City Manager to increase the contract amount up to 10% of the amount awarded. Staff now recommends that the City Manager be authorized to increase the contract amaunt up to 20% of the amount awarded as the cost of additional work is expected to exceed the 10% threshold. Construction of this project began on February 22, 2011. The project is approximately 20% completed. On March 21, 2011, the Contractor encountered different site conditions which will require additional work to remediate. Specifically, during excavation of the receiving pit at the end of Pine Street in 200 block, the city's project inspector indentified some evidence of the presence of hydrocarbons in the newly dug pit. Green Environment, Inc. is currently evaluating the chemical constituents in the soil and water in the project area. The County of San Mateo Environmental Health Services Division has been notified and has provided direction to staff regarding management of the potentially contaminated project site as follows: 1. Soil shall be stockpiled and tested within the remaining 400 feet o#trench along Pine Street and disposed of at proper landfill sites, and 2. Groundwater extracted from the trench shall be stored and tested prior to discharging it into either the sanitary or storm drain system. Due to these additionally required measures, the cost of construction may exceed the customary 10% threshold for overages. ALTERNATIVES Council may choose not to authorize the City Manager to approve change orders up to 20% of the awarded contract amount which may result in project delays and additional project costs. FISCAL IMPACT Funding for the Sanitary Sewer and Storm Replacement Project (Manzanita St., Shasta St., Spruce St., Heller St., and Pine St.} Project was approved and appropriated in the Fiscal Year 2010/11 budget as Sewer Fund Capita! Projects -- Collection System Replacement Program and as Capita! Fund Project — Storm Drain Collecfion System Construcfion.