SR-505-001-03 (10)
EPWM:CP:AA:RS:SL: F:\DATA\SPFILES\Sp1808 Project 13\cc1808r2.doc
Council Meeting: February 27, 2001 Santa Monica, California
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Recommendation to Waive Competitive Bidding and Authorize the City
Manager to Negotiate and Execute a Contract with Preussag Pipe
Rehabilitation, Inc. for Sewer Project 13 ? Repair of Earthquake-Damaged
Sanitary Sewer Mains; and Authorize the City Manager to Negotiate and
Execute a Professional Services Agreement with Tetra Tech ASL, Inc. for
Construction Management and Inspection for the Project.
Introduction
This report recommends that the City Council waive competitive bidding requirements in
accordance with Santa Monica Municipal Code Section 2.24.071(e), and authorize the City
Manager to negotiate and execute a contract with Preussag Pipe Rehabilitation, Inc. for
sewer repair work in the area bounded by Pico Boulevard, the Easterly City Limits, Ocean
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Park Boulevard and 4 Street, in an amount not to exceed $2,529,809, and approve a
contingency in the amount of $379,471. 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 $ 346,120, with Tetra Tech ASL, Inc., Engineering Consultants,
for construction management and inspection services for the project, and approve a
contingency in the amount of $51,918.
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
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requested 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 in the amount of $78 million for the
repair of the earthquake damaged sewer system throughout the City of Santa Monica.
This project is one of eighteen sewer repair projects, ten of which involve in-situ lining of
sewers, and eight of which involve traditional open-cut construction.
In addition to the FEMA approved scope of work, City staff has identified other necessary
sewer repairs that are 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
throughout the project area, for maintenance purposes.
Discussion
Sewer Project 13 includes the repair of earthquake damaged sewer mains in Lincoln
Boulevard, Ocean Park Boulevard and various residential streets in the central section of
the City. It is the last of the ten sewer repair projects that will be done primarily by
trenchless in-situ lining of sewers. All other remaining projects will be done by
conventional open-cut construction.
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Construction Contract
Staff requested Preussag Pipe Rehabilitation, Inc. (PPR) propose a schedule of prices for
carrying out the work on Sewer Project 13, for possible consideration in lieu of a formal
bidding procedure, for the following reasons:
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PPR has completed the seven most recent sewer-lining projects for the City of
Santa Monica and was the sole bidder on the most recent sewer-lining project
advertised, resulting in award of Contract 7848(CCS). There is no reason to
believe that more contractors would bid on Sewer Project 13, or that they would be
able to submit more favorable prices than PPR.
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PPR has provided excellent construction crews and staff, and has saved the City a
considerable amount of time and money due to their efficient method of installation.
Additionally, PPR has proven to be very sensitive to the needs of our residents,
and staff has received a number of calls from the public and business owners
praising their work. The State Contractors? License Board has verified that their
Contractor?s license is current and in good standing.
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Waiving a formal competitive advertising and bidding process would save the City
an estimated four months, thus reducing the time when the City would remain
dependent upon earthquake damaged sewers. It would also reduce City
administrative costs, and most likely reduce construction costs, since it would save
the contractor the time and expense of bid preparation.
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Construction Management and Inspection Services
Request for Proposals were sent to five construction management firms, inviting them to
submit their proposals for construction management and inspection services. The City
received four proposals. Two firms, Harris & Associates and Tetra Tech ASL, Inc.,
Consulting Engineers, were found to be the best qualified to satisfy the City?s
requirements. Of the two, Tetra Tech ASL, Inc., is considered the most suitable for this
project, based on their current workload projections, their available staff and the quality of
their past services to the City. Tetra Tech ASL, Inc., has supplied the City with references
from the Cities of Burbank, Camarillo, Compton, Oceanside, San Diego, and West
Hollywood. All project representatives reported that the Consultant?s work was excellent.
Additionally, Tetra Tech ASL, Inc., has provided highly satisfactory services to the City on
several similar sewer repair projects.
Public Outreach
The residents and businesses that will be 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 the overall
information about the upcoming project. The second letter will be sent 10 days prior to the
start of the project and will contain 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. Telephone calls from the public
with questions and concerns will be responded to 24 hours a day, 7 days a week by the
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construction management firm. Residents and businesses will be provided with a toll free
telephone number in all the informational letters.
Budget/Financial Impact
The cost of the work to be undertaken is a part of the Grant Acceleration Program (GAP)
Settlement with FEMA, and the negotiated cost for this Sewer Project is as follows:
FUNDS REQUIRED FOR CONSTRUCTION CONTRACT
Contract....................................................$ 2,529,809
Contingency .................................................$379,471
SUB ?TOTAL ..........................................$ 2,909, 280
FUNDS REQUIRED FOR CONSTRUCTION MANAGEMENT CONTRACT
Contract ......................................................$ 346,120
Contingency...................................................$ 51,918
SUB -TOTAL............................................... $ 398,038
TOTAL FUNDS REQUIRED???.......????$ 3,307,318
Sufficient budget authority for all of the contract expenses that are eligible for FEMA/OES
reimbursement exists in Account No. E13313000.555010.40000 for construction and
contingency of $2,909,280, and in Account No. E13313000.555060.50000 for construction
management and contingency of $ 398,038.
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The Wastewater Fund will set aside 10% of the construction costs in the amount of
$ 290,928 in City Match Account No. E31313004.555010.40000 for construction, and the
associated construction management and inspection costs in the amount of
$ 39,804, in City Match Account No. E31313004.555010.40000, 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, in accordance with Santa Monica Municipal Code Section
2.24.071(e), that the goods and services to be furnished for Sewer Project 13 may
be purchased more reasonably on the open market than through public works
bidding procedures; and that, due to urgent necessity, the public health, welfare or
safety would be jeopardized if the public works bidding procedures were followed.
2. Authorize the City Manager to negotiate and execute a construction contract with
Preussag Pipe Rehabilitation, Inc in an amount not to exceed $2,529,809 and
authorize a contingency amount of $379,471;
3. Authorize the City Manager to negotiate and execute a professional services
contract with Tetra Tech ASL, Inc. for construction management and inspection
services in an amount not to exceed $346,120 and a contingency amount of
$51,918; and
4. Authorize the City Engineer to issue any necessary change orders to complete
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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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