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ATTENDANCE DURING THE MEETING 4 - page 20 / 45

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Minutes of the Council of the City of San Diego for the Regular Meeting of Tuesday, January 17, 2006

Page 20

STAFF SUPPORTING INFORMATION:

The rehabilitation of sewer pump station numbers 77A and 77B (SPS 77 A&B) is an on-going project which commenced construction in December of 2002. SPS 77A was last upgraded in 1984, and has since experienced numerous electrical and mechanical failures. If SPS 77A is shut- down or fails to operate for more than just a few minutes, sewage is diverted to an open, man- made storage pond which has a capacity of approximately 24 hours. Exceeding the capacity of the pond could result in a discharge to the adjacent potable water reservoir, Lake Hodges. This project is an EPA Consent Decree required project and the EPA is aware of the current project status.

Construction is running significantly longer than anticipated due to difficulties with the installation and operation of the new switchgear and with the new pump configurations. In addition to the complexities of the project, the contractor is having difficulties with his subcontractors/vendors. Four stop notices, totaling $875,658.71, have been received which require the city to withhold $1,094,573.39 in payment. One lawsuit has been filed by a subcontractor, Beacon Electric, and MWWD anticipates additional claims, potential litigation, and the need for future mediation. MWWD has been working with the City Attorney's office on resolving the numerous contractual and potential claims issues while enabling this critical project to be completed.

Due to the added construction duration and the need for future claim, mediation, and/or litigation support services, MWWD requests the approval of Amendment No. 5 to the existing multi-year, department-wide Program Management/Construction Management as-needed contract with HDR Engineering Inc, in the amount of $435,059, bringing the new contract total to $13,701,694. The total amended amount will be used to complete existing Task Order No. 4 for SPS 77 A&B. No further amendments to the contract with HDR Engineering Inc., are anticipated at this time. HDR Engineering, Inc. is an employee-owned corporation with 85 offices throughout the United States. The corporation's CEO is Richard R. Bell, P. E., and the parent company is located in Omaha, NE.

FISCAL IMPACT:

The total cost of this action is $435,059. Funds are available in Fund 41506, CIP-46-506.0, Pipeline Rehab in the ROW, Phase B project. This project is part of the existing capital improvement program and is not dependent upon future financing proceeds.

Mendes/Tulloch/CW

Aud. Cert. 2600402.

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