SR-505-001-03 (9)
EPWM:CP:AA:RS:SL: F:\DATA\SPFILES\Sp1707 Project 8\cc1707.doc
Council Meeting: September 12, 2000 Santa Monica, California
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Award of Construction Contract to Preussag Pipe Rehabilitation Inc., for
Project 8 - Repair of Earthquake-Damaged Sanitary Sewer Mains in the area
bounded by the Easterly City Limits, Pico Boulevard, Appian Way, and
Colorado Avenue; and Authorizing the City Manager to Negotiate and Execute
a Professional Services Agreement for Construction Management and
Inspection for the Project.
Introduction
This report recommends that the City Council award a construction contract to Preussag
Pipe Rehabilitation, Inc. in the amount of $1,904,724.75, and contingency amount of
$285,710, for the repair of earthquake-damaged sanitary sewer mains in the area bounded
by the Easterly City Limits of Pico Boulevard, Appian Way, and Colorado Avenue. Staff
also recommends that the City Council authorize the City Manager to negotiate and execute
a professional services agreement in the amount of $488,928 with the firm of ASL
Consulting Engineers for construction management and inspection services for the Project
with a contingency amount of $73,340.
Background
After the Northridge Earthquake of January 17, 1994, the City initiated a citywide inspection
program of the sewer system to identify the locations that were damaged and to request that
the Federal Emergency Management Agency (FEMA) and the State?s Office of Emergency
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Services (OES) approve funds for repair work. The City subsequently accepted a Grant
Acceleration Program (GAP) offer from FEMA of $78 million for repair of the earthquake
damaged sewer system throughout the City of Santa Monica. This project, one of eighteen
sewer repair projects, will repair earthquake damaged sewer mains in various residential
streets in the central section of the City. In order to minimize the impact of this construction
project on the public, the repair of the sewer mains will be done using trenchless methods,
where possible.
In addition, City staff has identified other sewer repair work that is best done in conjunction
with the earthquake sewer repairs. These repairs will also be paid for with GAP funds,
following FEMA?s GAP Guidelines for Improved Projects. This work includes lining utility
access holes, replacing existing obsolete access hole frames and covers, and installing
additional utility access holes where required for maintenance purposes throughout the
project area.
Discussion
A Notice Inviting Bids was published on July 9 and 13, 2000, in ?The Argonaut?, and with
four construction journals, one electronic plan room, and one Internet advertising consultant.
In addition, bidding documents were sent to eight women/minority-owned business
enterprise associations (WMBE). Nineteen contractors requested bid packages. The City
Clerk's office received four sealed bids, which were publicly opened and read aloud on
August 9, 2000 by the Deputy City Clerk.
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The Bid Results were as follows:
1. Preussag Pipe Rehabilitation, Inc........... ......................$1,904,724.75
2. Insituform Technologies, Inc.........................................$2,446,541.00
3. ZZ Liner, Inc. ..............................................................$3,123,896.00
4. Sancon Technologies, Inc. ..........................................$3,312,198.00
City Engineer's Estimate.... . . . .. $2,450,000
The lowest responsible bidder, Preussag Pipe Rehabilitation, Inc., has provided the City with
five references for projects within Los Angeles County. All references reported that the
Contractor's work was satisfactory. In addition, Preussag Pipe Rehabilitation has completed
the four most recent sewer rehabilitation projects for the City of Santa Monica and has
provided excellent construction crews and staff. The State Contractors? License Board
verified that the Contractor's license is current and in good standing.
In addition to award of the construction contract, this report recommends that the City
Council authorize the City Manager to negotiate and execute a professional services
contract for construction management and inspection of the construction work detailed
above. Requests for Proposals were sent to five construction management firms inviting
them to submit proposals for construction management and inspection services. The City
received three proposals. The recommended firm, ASL Consulting Engineers, supplied the
City with references from the Cities of Burbank, Camarillo, Compton, Oceanside, San Diego,
and West Hollywood and all references reported that the consultant?s work was excellent. In
addition, ASL has provided Construction Management and Inspection services on two recent
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City of Santa Monica sewer rehabilitation projects, with excellent results.
Budget/Financial Impact
FUNDS REQUIRED FOR CONSTRUCTION CONTRACT
Contract...................................$1,904,724.75
Contingency ...............................$285,710.00
SUB -TOTAL...........................$2,190,434.75
FUNDS REQUIRED FOR CONSTRUCTION MANAGEMENT CONTRACT
Contract ..........................................$488,928
Contingency.......................................$73,340
SUB -TOTAL.................................. $562,268
TOTAL FUNDS REQUIRED ...$2,752,702.75
Sufficient budget authority for all contract expenses that are eligible for FEMA/OES
reimbursement exists in Account No. E13308000.555010.40000 for construction and
contingency of $2,190,434.75, and in Account No. E13308000.555060.50000 for
construction management and contingency of $562,268.
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The Wastewater Fund will set aside 10% of the construction costs in the amount of
$190,472 in City Match Account No. E31308004.555010.40000 for construction, and
associated construction management and inspection costs in the amount of $48,893 in City
Match Account No. E31308004.555010.40000. FEMA/OES withholds these amounts from
reimbursement until final audit, which may occur several years from now.
Recommendation
Staff recommends that the City Council:
1. Award a contract for repair of earthquake-damaged sewer mains in Project #8 to
Preussag Pipe Rehabilitation Inc., the lowest responsible bidder, in the amount of
$1,904,724.75 with a contingency amount of $285,710; and
2. Authorize the City Manager to negotiate and execute a professional services contract
with ASL Consulting Engineers for construction management and inspection services
in an amount not to exceed $488,928 with a contingency amount of $73,340; 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.
Prepared by: Craig Perkins, Director of Environmental & Public Works Mgmt.
Anthony Antich, P.E., City Engineer
Jack Schroeder, P.E., Sewer Repair Program Manager
Eugenia Chusid, Project Manager
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