On October 28, 1997, City Council approved the replacement of the 49-year-old Moss Avenue Pumping Station, which is being constructed at an accelerated pace to accommodate the schedule of Project New Hope=s construction. The coordination and scheduling of this project demands senior engineering and management oversight.

In addition, the State=s Office of Emergency Services recently approved nine Hazard Mitigation Grant Proposals submitted by the City for seismic strengthening of critical facilities. The Office of Emergency Services will reimburse the City up to $3,378,423 for mitigation work scheduled over the next four years on City Hall, parking structures nos. 1, 3, and 6, the Civic Auditorium, and the Main Library. The City=s sewer repair office was expanded to incorporate this mitigation work and renamed the Disaster Recovery Office. This expansion will require additional engineering and management skills capable of handling complex issues and schedules.

The Disaster Recovery Office requires strong management to achieve the program=s financial requirements, garner multi-agency approvals and funding, and coordinate the multi-faceted construction schedules. Last year, F.J. Schroeder and Associates was selected from four proposers for the management position based on qualifications and most reasonable rates. On April 14, 1998, City Council awarded a contract to F.J. Schroeder and Associates to manage the Sewer Repair Office and associated complex projects through April, 1999. F.J. Schroeder has demonstrated effective leadership and financial aptitude in developing a long range plan for the sewer repairs. The firm effectively negotiated a final cost settlement with OES and FEMA for the sewer repair program. Staff believes these management services will be required through June, 2001. (See Exhibit A for the expanded scope of services.)

The direct costs of project management will be reimbursed by the $78.4 million FEMA final sewer repair settlement. However, 10% of reimbursable costs are withheld until final project audits are completed. The ten percent retained for the first year ($16,320) will be budgeted as a set-aside in the Wastewater Fund, AFEMA Match@. A portion of the contract costs will be reimbursed by the City of Los Angeles from its 90% contribution for the costs of the Moss Avenue Pumping Station. The specific accounts and cost allocations for the first year=s required funding are outlined in Attachment A. As the second year=s projects are solidified, specific accounts and cost allocations will be prepared.