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BACKGROUND The need for the repairing and replacement of the water facilities along Santos Ranch Road and adjacent hillsides was identified in 1997 by a consulting firm specializing in water system facility designs. A series of improvements were recommended and the City has gradually implemented those recommendations over a number of years. The scope of work performed by McGuire and Hester was part of these initial recommendations, and provided for the replacement of Water Storage Tank 900, the replacement of six water booster pumps, existing piping, electrical and mechanical equipment and the demolition and construction of new buildings sheltering the mechanical and electrical equipment. Previous projects consisted of the recoating of three of the five water tanks in this area, the installation of cathodic protection to protect the existing water piping against corrosion, and the replacement of water pipeline bends along Santos Ranch Road. Those improvements totaled $294,933. The firm of Tetra Tech Inc. was hired by the City through the RFP/RFQ process to prepare the design plans and accompanying specifications for the reconstruction of the water booster pump stations. Upon completion of the design, the project was advertised, bid and awarded to the lowest responsible bidder, McGuire and Hester Inc. of Oakland, California in the amount of $1,881,450. On March 21, 2006, City Council awarded a contract to Tetra Tech Inc. to provide oversight and construction management for the project. Total fees paid to Tetra Tech for the design and construction management of the reconstruction of the pump stations was $766,015. The total cost of the Santos Ranch Road water facilities is $3,259,369. A complete delineation of costs is included in Attachment 1. DISCUSSION Construction for the Santos Ranch Road Pump Station and Water Facilities Upgrade has been completed and is now ready for acceptance. Project change orders totaled $174,963.28. The bulk of the change order costs were associated with the unanticipated relocation of a 12-inch water pipe in Santos Ranch Road in the amount of $132,103. Over the past winter, a portion of the hillside adjacent to Santos Ranch Road exhibited signs of distress. The embankment, approximately 50 feet downhill from the roadway, failed and portions of the embankment have slid down the hillside. The slide area is on private property and outside the public road right-of-way. A portion of the City's water line that serves this area is located beneath the roadway, close to the location of the landslide. Although the slide debris moved in a direction away from the roadway, if the hillside were to continue to move, there was a potential that the utility could settle and develop a leak, jeopardizing the roadway and water facilities. As a precautionary measure, it was recommended that the waterline in Santos Ranch Road be relocated further southerly toward the uphill side of the roadway and further away form the slide area. In order to expedite this effort, the City negotiated a change order with McGuire and Hester to perform this work. The remainder of the authorized change orders were Page2of3