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SR-010808-1F~r ~;tYof City Council Report Santa Monica City Council Meeting: January 8, 2008 Agenda Item: ~ -~ To: Mayor and City Council From: Craig Perkins, Director -Environmental and Public Works Management Subject: Construction Contract for the Civic Auditorium Electrical Upgrade Project Recommended Action Staff recommends that the City Council: 1. award a construction contract to A-1 Electrical Service Company, Inc., the best bidder, in the amount of $446,000 plus a 10% contingency for a total amount not to exceed $490,600; and 2. authorize the City Engineer to issue any necessary change orders to complete additional work within budget authority. Executive Summary The Civic Auditorium Electrical Upgrade Project will bring major components of the facility's electrical equipment up to current code and will provide additional electrical service to meet Civic Auditorium event requirements. Construction costs for the project are expected not to exceed $490,600. The total project cost, including a previously approved purchase order to Southern California Edison for the purchase and installation of a new transformer, is expected not to exceed $551,735. This project is funded with Civic Auditorium funds. Discussion This project will update critical elements of the Civic Auditorium's electrical system, bringing it up to current safety code standards. The current electrical equipment, installed in 1958, has deteriorated over time and no longer effectively meets the power requirements of modern equipment. The Civic Auditorium's current event schedule includes exhibit shows, concerts, and television award shows, which require expanded electrical service and modern equipment. Additional generators and electrical equipment are brought in at the expense of the tenant, making the Civic Auditorium less appealing for events. The new electrical service will accommodate exterior and interior 1 event requirements, which contribute to the marketing efforts and booking potential of the facility, providing an economic benefit to the City and downtown area. A-1 Electrical Service Company, Inc., will coordinate their work with Southern California Edison during the installation of the new transformer. The Civic Auditorium will be closed for 35 days during the construction of this project. This project requires extensive schedule planning and efforts have been underway almost a year already to schedule this project as efficiently as possible. Specific dates for construction have been blocked out and any change to the planned schedule will necessitate cancelling additional events, which will create a loss of revenue for the facility. Improvements under this project are required to maintain the Civic Auditorium's electrical service needs for current and future events. Failure to complete the upgrade will lead to further deterioration, unsafe working conditions and electrical outages during events in addition to limiting the marketing opportunities for the Civic Auditorium. Contractor Selection A Notice Inviting Bids was published in the Santa Monica Dailv Press on September 27 and September 29, 2007, and the bid document was sent to nine public plan rooms. The Notice Inviting Bids was also posted on the Civil Engineering and Architecture Division's webpage. Five contractors requested bid documents and two sealed bids were received by the City Clerk's office. The bids were publicly opened and read aloud on October 22, 2007 by the Deputy City Clerk. The bid results were as follows: Contractor A-1 Electric Service Company, Inc. Hampo Engineering Contractors (HEC), Inc. City Engineer's Estimate Range Base Bid $ 446,000 $ 545,000 $ 320,000 to $ 370,000 2 Bids were evaluated based on competitive pricing, understanding of the project's scope, direct experience on similar projects, approach to the work, technical competence, qualifications of the proposed staff, and the ability to meet the desired time frames. The City received only two bids, as the electrical upgrade work to this type of facility is highly specialized work where general contractors have great difficulty bidding competitively. An attempt to put this project out to bid again would likely result in higher prices due to rapid escalation of wiring and electrical component material costs. It will also create a loss in revenue for the Civic Auditorium by necessitating the cancellation of additional events. Lastly, electrical components and wiring have undergone multiple cost increases over the last several months, which resulted in bids higher than estimated. A-1 Electric Service Company, Inc., is recommended the best bidder, based on the quality of services offered and their experience with similar projects including facility improvements for Quest Diagnostics, Boeing Company and the City of Los Angeles. City staff contacted references and all respondents reported the contractor's work was completed in a timely and cost efficient manner while maintaining consistent quality. The Center for Contract Compliance found A-1 Electric Service Company, Inc., to be in good standing and capable of handling labor compliance issues. The State Contractors' License Board also verified that the company's license is current, active, and in good standing. Construction Management Construction management will be provided by Environmental and Public Works Management staff. Construction management will include inspection of the contractor's work during construction, reporting field changes and unforeseen conditions to the construction manager, monitoring and mitigating impact as a result of the construction activities, attending periodic progress meetings, maintaining all necessary inspection documentation relevant to the work conducted during construction, and ensuring that all the requirements of the contract are properly completed. 3 Financial Impacts and Budget Actions Funds in the amount of $490,600 for construction are available in 0320810.589000 (Civic Auditorium Electrical). Prepared by: Greg de Vinck, Civil Engineer Approved: Forwarded to Council: ~~.~ Craig Perkins P. mont Ewell Director-- nvironmental and Public City Manager Works Management Department 4 Reference Contract No. 8873 (CCS).