TITLE
Recommendation to authorize a 15 percent contingency for Contract No. 31868 with Spec Construction Company, Inc., for the Mothers Beach Restrooms and Concession Area. (District 3)
DISCUSSION
On October 12, 2010, the City Council awarded the Mothers Beach Restrooms and Concessions Area project to Spec Construction Company, Inc., in an estimated amount of $766,700. At that time, the award did not include any contingency authorizations.
Construction has now commenced and the contractor has encountered buried concrete debris while excavating for the foundation of the new building. This concrete debris must be fully excavated from the site and replaced with suitable foundation material. In order to accomplish this work, staff is requesting that a 15 percent contingency be added to the current authorized contract amount. The actual additional compensation due to the contractor will be determined upon completion of this work, but should fall below the requested contingency, leaving some additional authority if additional unforeseen conditions should arise.
This matter was reviewed by Deputy City Attorney Linda Trang on January 25, 2011 and by Budget Management Officer Victoria Bell on January 26, 2011.
SUSTAINABILITY
All concrete debris from the site will be recycled.
TIMING CONSIDERATIONS
City Council action on this matter is requested on February 15, 2011, in order to maintain the current construction schedule.
FISCAL IMPACT
The original contract award was for the amount of $766,700. There is sufficient funding in the project to cover the requested contingency. There is no impact to the General Fund. No additional local jobs will be created as a result of this action.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
MICHAEL P. CONWAY
DIRECTOR OF PUBLIC WORKS
GEORGE CHAPJIAN
DIRECTOR OF PARKS, RECREATION AND MARINE
APPROVED:
PATRICK H. WEST
CITY MANAGER