SR-505-008 (2)
EPWM:CP:AA:DB:SL:sp1320\PhaseIIC.CM\cc1320-5.doc
Council Meeting: January 25, 2000 Santa Monica, California
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Award of Construction Contract for the Santa Monica Urban Runoff
Recycling Facility - Phase II and Recommendation to Authorize the City
Manager to Negotiate and Execute a Construction Management Contract for
the Project
Introduction
This report recommends that the City Council award a construction contract to Pipe Line
Equipment Rental, the lowest responsible bidder, in the amount of $1,489,532 for
construction of the Santa Monica Urban Runoff Recycling Facility (SMURRF) - Phase II
and approve $200,000 in contingency funds for this contract. This report also
recommends that the City Council authorize the City Manager to negotiate and execute a
professional services contract with Black and Veatch Corporation, in an amount not to
exceed $120,000 for construction management of the project and approve $18,000 in
contingency funds for this contract.
Background
On April 7, 1997, the City contracted with CH2M HILL Inc. to prepare architectural and
engineering documents for construction of the SMURRF - Phase I. The SMURRF project
will treat low flow runoff from the Pico-Kenter and Santa Monica Pier storm drains and
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reuse the treated water for applications such as irrigating freeway, park and cemetery
landscaping. Phase I of the project constructs the treatment facility. The construction of
Phase I is more than half complete. The SMURRF - Phase II includes the construction of
the recycled water pumps and pipeline. The pipeline will begin at the treatment facility,
and will be placed in Colorado Boulevard traveling eastward to 11th Street. The pipeline
will turn south on 11th Street to Olympic Boulevard, and then turn east on Olympic and end
at 17th Street. Both Phases I and II of project construction are expected to be complete
and operational in June, 2000. The proposed work does not include the distribution line
extension to the Water Garden Project which will be bid separately and presented to
Council for award in April, 2000.
Discussion
A Notice Inviting Bids for the construction contract was published on November 18 and 25,
1999 in the The Argonaut and F. W. Dodge newsletter. Bid documents were sent to 12
women/minority business enterprise (WMBE) associations. Bid packages were
requested by 16 contractors. The City Clerk's office received six sealed bids which were
publicly opened and read aloud on December, 16, 1999 by the Deputy City Clerk. The
results were:
Pipe Line Equipment Rental $ 1,489,532
Clarke Contracting Corporation $ 1,542,155
Majich Bros., Inc. $ 1,620,407
Colich and Sons $ 1,630,000
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John T. Malloy, Inc $ 1,747,025
Mladen Buntitch Construction Co., Inc $ 1,867,797
City Engineer's Estimate $ 1,800,000
The lowest responsible bidder, Pipe Line Equipment Rental, supplied the City with the
names of recent similar projects which included Barranca Parkway Extension for the Irvine
Ranch Water District, Third Street Improvements in the City of Burbank, the Second Street
Storm Drain for the Los Angeles County Public Works Department, a Los Angeles
Municipal Courts project, Rose Hills Water Main, and several other storm drain and water
main projects.
City staff contacted representatives of the agencies and companies representing these
projects and all respondents reported that the Contractor's work was very good.
The California Contractors State License Board verified that the Contractor's license is
active and in good standing as are the subcontractors' licenses active and in good
standing. City staff also contacted the Center for Contract Compliance which reported
that the Contractor had no labor compliance violations.
A Request for Qualifications for construction management services was issued on July 26,
1999, to pre-qualify firms. Six firms from the pre-qualified list were interviewed by a
selection panel which included representatives from the Engineering and Utilities Divisions
of the Environmental and Public Works Management Department. The selection panel
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recommended Black & Veatch Corporation to provide construction management services
for this project. Black & Veatch Corporation is currently providing similar services for the
City of Santa Monica's SMURRF ? Phase I construction and the Beach Improvement
Group (B.I.G.) Project. Their performance on all projects to date has been excellent.
Budget/Financial Impact
Funds required for this project are:
Construction $1,489,532
Contingency $ 200,000
Subtotal $1,689,532
Construction Management $ 120,000
Contingency $ 18,000
Subtotal $ 138,000
PROJECT TOTAL $1,827,532
Funds are available in the following accounts:
Account No. Construction Const. Management Total
C20030495.589000 $ 786,942 $ 786,942
C34055800.589000 $ 902,590 $138,000$1,040,590
SUB TOTAL $1,689,532 $138,000 $1,827,532
It is anticipated that one-half of the total project costs not reimbursed from grant funds in
the amount of $520,295 will be reimbursed to Revenue Account No. 34661.402730 by the
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City of Los Angeles.
Recommendation
Staff recommends that the City Council:
1. Award a contract for the construction of the SMURFF - Phase II project to Pipe Line
Equipment Rental, the lowest responsible bidder, in the amount of $1,489,532 and
approve $200,000 in contingency funds for this contract; and
2. Authorize the City Manager to negotiate and execute a professional services
contract with Black and Veatch Corporation, in an amount not to exceed $120,000
for construction management services for the project and approve $18,000 in
contingency funds for this contract; and
3. Authorize the City Engineer to issue any necessary change orders to complete
additional work in conformance with the Administrative Instructions on change
orders and within budget authority.
Prepared by: Craig Perkins, Director of Environmental & Public Works Mgt.
Anthony Antich, P.E., City Engineer
Gil Borboa, P.E., Utilities Manager
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