SUBJECT: Recommendation to Award a Construction Contract for the Pacific Coast Highway Sewer Replacement Project of the Coastal Interceptor Sewer to Modern Continental Construction Company, Inc. and Appropriate $1,170,702 from the Wastewater Fund Balance to a City Match Account to Hold until Final Audit

This report recommends that the City Council award a contract to Modern Continental Construction Company, Inc. in the amount of $9,707,025 for construction of the Pacific Coast Highway Sewer Replacement Project of the Coastal Interceptor Sewer. This report also recommends that the City Council appropriate $1,170,702 from the Wastewater Fund balance to account no. 31-760-661-20099-8905-99124 for the City=s 10% set aside until final audit.

The Coastal Interceptor Sewer (CIS) collects sewage from the City of Los Angeles, north of the City limits and, with additional flows from the City of Santa Monica, carries it to the City of Los Angeles= Hyperion Plant for treatment. Many sections of the CIS were damaged by the 1994 Northridge earthquake and projects are underway to repair the damage. The cities of Santa Monica and Los Angeles are working jointly on this rehabilitation effort, with Santa Monica serving as the lead agency for that portion of the CIS within the City of Santa Monica. The entire CIS Project includes the Pacific Coast Highway sewer replacement, the Appian Way project, the Ocean Avenue to Pico Boulevard to Main Street sewer rehabilitation, the Ocean Avenue to Neilson Way relief sewer, and the Moss Avenue Pumping Station. The CIS Project also includes the replacement of two flow-monitoring stations which monitor flow in and out of the City at the northern and southern City limits. Construction has been completed for the replacement of Moss Avenue Pumping Station=s structural shell and construction for the Appian Way portion of the CIS is nearing completion.

The Pacific Coast Highway Sewer Replacement Project includes microtunneling approximately 8,500 feet of 60-inch diameter pipe under Pacific Coast Highway from the northerly City limits to the 1550 Parking Lot, north of the Santa Monica Pier. Microtunneling is the unmanned entry method that uses a remotely operated microtunneling boring machine to install pipe underground with minimum surface disruption. Also included is the traditional Acut and cover@ installation of 7,500 feet of 12-inch diameter pipe, which will serve as a local collector sewer line for beachfront properties.

A Notice Inviting Bids for the construction of the Pacific Coast Highway Sewer Replacement Project was published in the Argonaut on March 3 and 9, 1999. The Notice Inviting Bids, along with the plans and specifications, was also sent to eight construction journals and six women/minority business enterprise (WMBE) associations. Bid packages were requested by 35 contractors. The City Clerk=s Office received five sealed bids which were publicly opened and read aloud on April 12, 1999 by the Deputy City Clerk. The bid results were as follows:

Funds in the amount of $11,707,025 are available from FEMA in account number 13-500-402-35550-5501-13006, APCH@. In addition, 10% of the construction costs ($1,170,702) must be appropriated from the Wastewater Fund balance and set aside in City Match account number 31-760-661-20099-8905-99124 until final FEMA/OES audit, which may take several years. Under the wastewater services agreement with the City of Los Angeles, the City of Los Angeles and the contract agencies other than Santa Monica are responsible for approximately 97% of all capital improvement costs over the amount funded by FEMA.

1. Award a contract to Modern Continental Construction Company, Inc., the lowest responsible bidder, in the amount of $9,707,025 for the Pacific Coast Highway Sewer Replacement Project of the CIS;

2. Appropriate $1,170,702 from the Wastewater Fund balance to account no. 31-760-661-20099-8905-99124 for the City=s 10% set aside until final audit;

3. Authorize the City Engineer to issue any necessary change orders to complete additional work within budget authority and in accordance with the Administrative Instructions on Change Orders; and

4. Authorize the budgetary items detailed in the Budget/Financial Impact Section of this report.