SR-505-001-04 (9)
EPWM: CC: AA: JS: SL; F:/SPFILES/Sp1764/Staff Reports/CC1764Modern-Rev6.doc
City Council Meeting: June 12, 2001 Santa Monica, California
TO: Mayor and City Council
FROM: City Staff
SUBJECT:Award of Construction Contract to the Best Bidder, Modern Continental
Construction Company, Inc. and Modifications to Agreements for Community
Outreach Services, Construction Management Services and Engineer-of-
Record Services.
Introduction
This report recommends that the City Council award a contract to the best bidder, Modern
Continental Construction Company, Inc. in the amount of $9,057,000 for the Pacific Coast
Highway Sewer replacement project, Phase 2; approve a Modification to Agreement
Number 7355 (CCS) with Harris and Company, in the amount of $245,000 for community
outreach services; approve a Modification to Agreement Number 7476 (CCS) with Black &
Veatch, Inc. in the amount of $1,188,609 for construction management services and
approve a Modification to Agreement Number 7216 (CCS) with Montgomery Watson
Americas in the amount of $221,404 for Engineer of Record services during construction.
Background
The Coastal Interceptor Sewer (CIS) collects sewage from the City of Los Angeles, north of
the City limits and, with additional flows from the City of Santa Monica, carries it to the City
of Los Angeles Hyperion Plant for treatment. Many sections of the CIS were damaged by
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the 1994 Northridge earthquake and projects are underway to repair the damage. The
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cities of Santa Monica and Los Angeles are working jointly on this rehabilitation effort, with
Santa Monica serving as the lead agency for that portion of the CIS within the City of
Santa Monica. The entire CIS Project includes the Pacific Coast Highway sewer
replacement, the Appian Way project, the Ocean Avenue to Pico Boulevard to Main Street
sewer rehabilitation, the Ocean Avenue and Neilson Way Relief Sewer and the Moss
Avenue Pumping Station. The CIS Project also includes the replacement of two flow-
monitoring stations, which monitor flow in and out of the City at the northern and southern
City limits, respectively. Construction has been completed for portions of the Moss Avenue
Pumping Station, the Appian Way project and the Pacific Coast Highway Sewer
Replacement Project, Phase 1. Construction for the Ocean Avenue/Neilson Way project is
currently underway.
Construction
The Pacific Coast Highway Sewer Replacement Project, Phase 2, includes the
microtunneling installation of 3,360 feet of 60-inch diameter sewer pipe, the open-cut
installation of 3,400 feet of 8-inch water main, the in-situ lining of 3,400 feet of existing 30-
inch and 24-inch sewer mains and the installation of various junction structures under
Pacific Coast Highway from just south of the California Incline to the City of Los Angeles
border.
A Notice Inviting Bids for the construction of the Pacific Coast Highway Sewer
Replacement Project, Phase 2, was published in the Los Angeles Times on April 6 and
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April 8, 2001. The Notice Inviting Bids and plans and specifications, were also sent to six
construction journals and five women/minority business (WMBE) associations. Bid
packages were requested by 50 contractors. The City Clerk?s Office received four sealed
bids, which were publicly opened and read aloud on May 21, 2001, by the Deputy City
Clerk. The bid results were as follows:
CONTRACTOR AMOUNT
Westcon Microtunneling, Inc., $8,168,800
Modern Continental Construction Company, Inc., $9,057,000
Mladen Buntich Construction Company, Inc. $10,255,200
BRH Garver, Inc., $14,644,598
The Engineer?s estimate for the project was $9,500,000.
The lowest monetary bidder?s bid was non-responsive and incomplete. The Contract
Documents for the project require that bidders have a net worth greater than 50% of the
bid amount and liquidity of greater than 10% of the bid amount. These requirements were
included in the Contract Documents to ensure that the project contractor has adequate
resources to carry out the project diligently and promptly, in accordance with Caltrans
requirements, and in a manner which will protect residents and commuters from any
unnecessary delays in project completion. An examination of financial statements
submitted by Westcon Microtunneling, Inc., the lowest monetary bidder, clearly shows that
Westcon does not satisfy these requirements. Westcon Microtunneling, Inc., also failed
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to furnish their Non-Collusion Affidavit with their bid.
Section 2.24.072 of the Santa Monica Municipal Code, as amended by Ordinance Number
1998 (CCS), sets forth the criteria under which staff may determine the best bidder as:
1. Price;
2. The quality of the material or services offered;
3. The ability, capacity or skill of the bidder to perform the contract or provide
the material or services;
4. The capacity of the bidder to perform the contract or provide the service
promptly, within the time specified, and without delay or interference;
5. The sufficiency of the bidder?s financial resources;
6. The character, integrity, reputation, judgment, training, experience and
efficiency of the bidder;
7. The ability of the bidder to provide such future maintenance or service as
may be needed; and
8. Any other factor which will further the intent set forth in Section 608 of the
City Charter.
After considerable investigation and analysis, staff and the City?s consultants for the CIS
project find that the second lowest monetary bidder, Modern Continental Construction
Company, Inc., qualifies as the best bidder. The reasons for recommending selection of
Modern Continental Construction Company, Inc., are as follows:
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1. Modern Continental Construction Company, Inc.?s bid is complete and
responsive, satisfying all of the requirements of the Contract Documents.
2. Modern Continental Construction Company, Inc., has all required financial
resources considered necessary to complete the project.
3. Modern Continental Construction Company, Inc., has successfully completed
Phases 1A and 1B of the Pacific Coast Highway Sewer Replacement project.
They are thoroughly familiar with project conditions and requirements, soils
conditions and neighborhood concerns. They already have microtunneling
equipment locally available to commence construction in accordance with
the required project schedule. Additionally, their bid listed sufficient
specialty sub-contractors to assure quality construction. Finally, they are
very familiar with the applicable Caltrans? requirements for this project.
All of this translates into greater assurance that the project will be completed on-time and
with due attention to the needs of local residents as well as the commuting public.
Community Impacts
Pre-construction work on this project, including microtunneling submittals and nighttime
utility relocations, will begin immediately following award. Physical construction on PCH is
to take place from October 1, 2001 to May 24, 2002. The City will continue to utilize the
services of a public outreach consultant, Harris and Company, to advise the public of
construction schedules and issues. This will be done in a variety of ways, including
continued publication of the Cone Zone newsletter; written notification and personal
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contact with affected residents; electronic information boards for commuters; and,
announcements in locally published newspapers. A 24-hour hotline will remain in service,
allowing the public to inquire about the project and express their concerns about various
project elements. The project team includes a traffic engineering consultant responsible
for developing and updating traffic control plans as the work progresses in order to
minimize the project?s effect on the commuting public. Staff has worked with Caltrans to
keep traffic moving during Phase 1 of the project and will continue to work with Caltrans
throughout Phase 2.
Construction Management
Construction management of the CIS involves extensive coordination between numerous
and complex construction projects occurring simultaneously on highly visible sites. Black
and Veatch Corporation has successfully provided construction management services on
the Moss Avenue Pumping Station, Pacific Coast Highway Sewer Replacement Phases 1A
and 1B, the Appian Way sewer construction project, the Beach Improvement Group project
and the SMURRF project. The firm is currently providing construction management
services on the Transit Mall and the Ocean Avenue and Neilson Way Relief Sewer
projects. They have continued to provide excellent service to the City and its residents.
Their familiarity with the City, participation in the CIS community outreach program and
direct involvement with other City construction projects, offer the City an integrated
approach to construction management.
Engineer of Record Services
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The CIS project was designed by Montgomery Watson. Their current contract provides for
services up to the receipt of construction bids for the Pacific Coast Highway Sewer
Replacement Project Phase 2. Their services as Engineer of Record are required during
construction of the project for the review of requests for design information, design
services for unforeseen field conditions, shop drawings and submittal reviews and the
preparation of as-built drawings for the construction contract.
Budget/Financial Impact
FUNDS REQUIRED:
Construction Contract $9,057,000
Construction Contract Contingency $2,000,000
Harris & Company Contract 7355 (CCS) $245,000
Contract 7355 (CCS) Contingency $30,000
Black & Veatch Contract 7476 (CCS) $1,188,609
Contract 7476 (CCS) Contingency $200,000
Montgomery Watson Contract 7216 (CCS) $221,404
Contract 7216 (CCS) Contingency $30,000
Total Required $12,972,013
Funds in the amount of $4,200,000 are available in account E1334P000.555010 ?PCH
Sewer Replacement, FEMA.? Funds in the amount of $610,000 are available in account
C25013601.589000 to cover water main installation work being carried out as a part of
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this project. Funds in the amount of $8,162,013 are available for additional appropriation
from the Wastewater Fund to account C31094199.589000, ?PCH Sewer Replacement,
Non-FEMA.? The City of Los Angeles reimburses the City of Santa Monica one hundred
percent of the wastewater costs of the project, which will be recorded in revenue account
31661.400890 in FY 2001-02. In turn, the City of Los Angeles bills Santa Monica?s share
(which is approximately two percent of the cost) in the annual invoice for Hyperion capital
costs.
CEQA Compliance
On October 28, 1997, the City certified a Mitigated Negative Declaration for this project.
On May 30, 2001, the City prepared an addendum to the Mitigated Negative Declaration.
The addendum concluded that there would be no additional significant environmental
effects as a result of dividing the project and extending the construction time schedule to
Memorial Day 2002.
Recommendation
Staff recommends that the City Council:
1. Award a construction contract in the amount of $9,057,000 to Modern
Continental Construction Company, Inc., for the Pacific Coast Highway Sewer
Replacement Project Phase 2 plus $2,000,000 contingency;
2. Negotiate and execute a Modification to Agreement 7355 (CCS) with Harris and
Company, in the amount of $245,000 plus $30,000 contingency;
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3. Negotiate and execute a Modification to Agreement 7476 (CCS) with Black and
Veatch in the amount of $1,188,609 plus $200,000 contingency;
4. Negotiate and execute a Modification to Agreement 7216 (CCS) with
Montgomery Watson in the amount of $221,404 plus $30,000 contingency;
5. Appropriate $8,162,013 from the Wastewater Fund to Account
C31094199.589000;
6. 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 and Public Works
Management
Anthony Antich, P.E., City Engineer
Jack Schroeder, P.E., Disaster Recovery Program Manager
Susan Lowell, P.E., Civil Engineer
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