SR-505-001-04 (4)
EPWM:CP:AA:RS:SL: F:\Data\spfiles\sp1804\ CC1804.DOC
Council Meeting: November 28, 2000 Santa Monica, California
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Recommendation to Reject Bid Received for Project 15A - Repair of
Earthquake-Damaged Sanitary Sewer Mains in the area Bounded by the
Easterly City Limits, Lincoln Boulevard, Ocean Park Boulevard, and
Southerly City Limits; and Authorize the City Manager to Negotiate and
Execute a Construction Contract and a Professional Services Agreement for
Construction Management and Inspection for the Project
Introduction
This report recommends that the City Council reject the bid received for the repair of
earthquake-damaged sewer mains in the area bounded by the easterly city limits, Lincoln
Boulevard, Ocean Park Boulevard, and southerly city limits, and authorize the City
Manager to negotiate and execute a construction contract with the Preussag Pipe
Rehabilitation, Inc in an amount not to exceed $2,413,158. Staff also recommends that
the City Council authorize the City Manager to negotiate and execute a professional
services agreement in an amount not to exceed $435,080 with Harris & Associates,
Engineering Consultants, for construction management and inspection services for the
Project.
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
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request that the Federal Emergency Management Agency (FEMA) and the State?s Office
of Emergency Services 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. These proposed methods include the installation of a
?liner? inside the existing sewer pipe or the installation of a larger pipe through the existing
pipe by a method called ?pipe bursting.? These methods are preferred to traditional
excavation/replacement methods since access to the area can be maintained during
construction, thus minimizing disruption to local residents and businesses. In areas where
repair by trenchless technology methods is not feasible, the existing damaged sewer pipes
will be replaced with new sewer pipe by traditional methods.
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 the 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.
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Discussion
Construction Contract
A Notice Inviting Bids was published on September 17 and 21, 2000, in ?The Argonaut? as
well as in four construction journals, and with one electronic plan room and one Internet
advertising consultant. In addition, bidding documents were sent to eight women/minority-
owned business enterprise associations. Bid packages were requested by 17 contractors.
The City Clerk's office received one sealed bid, which was publicly opened and read
aloud on October 12, 2000, by the Deputy City Clerk.
The bid results were as follows:
1. Preussag Pipe Rehabilitation, Inc............ .....................$2,488,157.20
City Engineer's Estimate.......... .....................$2,550,000.00
Preussag Pipe Rehabilitation, Inc., has completed the six (6) most recent sewer
rehabilitation projects for the City of Santa Monica and has provided excellent construction
crews and staff. Also, Preussag Pipe Rehabilitation, Inc., was recently awarded Contract
7790 (CCS), to carry out pipe rehabilitation work elsewhere in the City. The State
Contractors? License Board verified that the Contractor's license is current and in good
standing.
After the bid opening, staff determined with Preussag Pipe Rehabilitation, Inc.
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representatives, that cost savings, of approximately $75,000, could be realized by the City
by rejecting the bid and negotiating directly with the Contractor. This savings is due to the
reduction in mobilization expenses and consolidation of cost of additional labor,
equipment, and overhead.
One protest was received from Insituform Technologies, Inc., which alleges that the project
specification sections that define pipeline rehabilitation methods have been negated by
staff not enforcing the specifications listed. This allegation has been investigated and
found to be without merit.
Construction Management and Inspection Services
Requests for Proposals were sent to five construction management firms inviting them to
submit proposals for construction management and inspection services for the construction
work described above. The City received four proposals. Two firms, Harris & Associates
and ASL Consulting Engineers, were found to be best qualified and to best satisfy the
City?s requirements. Of the two, Harris & Associates is considered most suitable for this
project, based on their current workload projections and their available staff. Harris &
Associates has supplied the City with references from the Cities of Burbank, Camarillo,
Compton, Oceanside, San Diego, and West Hollywood and all project representatives
reported that the Consultant?s work was excellent. Additionally, Harris & Associates has
provided highly satisfactory services to the City on several similar sewer repair projects.
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Public Outreach
The residents and businesses affected by this project will receive four informational letters
outlining construction schedules for their neighborhood. The first letter will be sent one
month prior to the start of construction and will have overall information about the
upcoming project. The second letter will be sent 10 days prior to the start of the project to
residents and businesses with specific information about the dates of construction in their
area. The third letter will serve as a reminder two days prior to construction and the final
letter will announce the completion of the project. Public calls with questions and concerns
will be responded to 24 hours a day, 7 days a week by the construction management firm.
Residents and businesses will be provided a toll free telephone number in the
informational letter.
Budget/Financial Impact
FUNDS REQUIRED FOR CONSTRUCTION CONTRACT
Contract.......................................$2,413,158
Contingency ...................................$361,973
SUB -TOTAL................................$2,775,131
FUNDS REQUIRED FOR CONSTRUCTION MANAGEMENT CONTRACT
Contract .........................................$435,080
Contingency......................................$65,262
SUB -TOTAL.................................. $500,342
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TOTAL FUNDS REQUIRED $3,275,473
Sufficient budget authority for all of the contract expenses which are eligible for
FEMA/OES reimbursement exists in Account No. E13315A00.555010.40000 for
construction and contingency of $2,775,131, and in Account No.
E13315A00.555060.50000 for construction management and contingency of $500,342.00.
The Wastewater Fund will set aside 10% of the construction costs in the amount of
$241,315.00 in City Match Account No. E31315A04.555010.40000 for construction, and
the associated construction management and inspection costs in the amount of
$43,508.00, in City Match Account No. E31315A04.555010.40000 which, FEMA/OES
withholds from reimbursement until final audit, which may occur several years from now.
Recommendation
Staff recommends that the City Council:
1. Make a finding that the materials or services may be purchased more reasonably on
the open market, and that the best interest of the City would be served by a
rejection of all bids, pursuant to Section 2.24.071 of the Santa Monica Municipal
Code;
2. Reject bid received for the Project #15A - Repair of earthquake-damaged sewer
mains in the area bounded by the Easterly City Limits, Lincoln Boulevard, Ocean
Park Boulevard, and Southerly City Limits;
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3. Authorize the City Manager to negotiate and execute a construction contract with
Preussag Pipe Rehabilitation, Inc in an amount not to exceed $ 2,413,158 and
authorize a contingency amount of $361,973;
4. Authorize the City Manager to negotiate and execute a professional services
contract with Harris & Associates for construction management and inspection
services in an amount not to exceed $ 435,080 and a contingency amount of
$65,262; and
5. 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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