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Gs:sES:Jrtsmt~ (io/zi) OCT 2 5 IQ88
• Council Meeting: 1Q/25188 Santa Monica, California
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TO: Mayor and City Council ~
FROi~: City Staff
SUBJECT: Recamm~ndat~on to Reject Bids for the Reconstruction of
the West End of the Municipal Pier and the iJpgrading of
Utilities an the Exis~ing Pier and Adoption af
Resolution Waiving Campetitive Biddinq and Authorizing
the City Manager to Negotiate and Execute Contract far
tha Reconstruction of the West End of the Municipal
Pier and the t7pgrading of Utilities
Introduction
This repoXt requests that the City Council reject hids for the
reconstruction of the west end of the Municipal Pier and the
upgrading of utilities on the existing Pier. This report further
requests that the City Council adopt the attached resolution
waiving competitive bidding and authorizing the City Manager to
negotiate and execute a contract for the reconstruction of the
Municfpal Pier and the upgrading of utili.ties. This report also
requests that the City Council authorize the Ci~y Manager to
negotiate and amend the constxvction management contract with
Concept Marine Associates to provide for inspection services
during this phase of pier reconstruati.on for an amount not to
exceed $200,000. Additionally, the report recommends that the
City Council authorize the City Manager to neqotiate and execute
a contract with McClelland Engineers, Inc. to provide
geotechnical services for an amount not to exceed $40,000.
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OET 2 5 1488
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Background
The 420 foct extension of the west and of the Municipal Pier is
the third and final phase of the Pier's reconstruction. Since
the time that the City Council conceptually approved the design
alternative for the reconstruction of the Pier in May, 1985, the
City has followed a phased agproach for its implementation. The
first phase, the strengthening and upgrading of the existinq
Pier, was completed in October, 1986. The second phase,
reconstruction of portions of the Pleasure Pier, was completed in
September, 1988.
At its March 29, 198s meeting, the City Council approved the
desiqn for the Municipal Pier recons~ruction. The desiqn,
prepared by Theodore Anvick, Structural Engineers, and
Kaplan/McLaughlin/biaz, Architect, cambines a state-of-the-art
structural system with the traditional hamm~rhead configuration.
The 40,000 square foot extension wi11 be rebuilt using concrete
piles and framing, with a timber deck. The piles will be stained
a dark brown color to better blend with the existing wooden
piles; this method has worked successfully on the P3.easure Pier
reconstruction. The design also achieves the objective af
praviding fishing balconies at a lower elevation which permits
the separation of fishing and other activities. The concern
regarding the use of the ramps to the balconies by skateboarders,
which was raised during the City Council'B review, has i~een
addressed and a non-skid, semi-rough finish will be applied to
the wooden ramps.
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At the time that tha City Council apgroved the Pier Restoration
~ Corparation~s Develapment Plan for tha Pier, the Council approved
a capital improvement pragram aimed primarily at upgrading the
Pier's platform and infrastructure. The existing utiZities on
the Pier, particularly the electrical system, are deterforate8,
over-loaded, and outdated. Any new uses on the Piar or
restoration of existing buildings would require improvements to
the u~ility network. Staff has incorporated the installation of
new utilities into this oonstruction contract to allow the
restoration to proceed in an organized and timely manner.
The method of construction of the Municipal Pier extension will
be similar to that of the Pleasure P~.er. A temporary steel
trestle will be erected from the beach fnto the water on the
north side of the Pier, and the construction will be done from
the trestle. This portion of the beach, extending approximately
three hundred feet northward fXOm the Pier, will be fenced in and
used as a staging area. It will also be necessary to close off
the end of the Pier, just west of the Harbor Otfice. Fishing
will be available along the west edge of the newly reconstructed
Pleasure Fier. All efforts will be made to minimize disruption
of aativities on the Pier and the beach during the year long
construction period.
A Notice Inviting Bids was published on Auc~ust 19 and 22, 1988 in
the Evening Outlook and in six (6) construction pubiications.
Plans and specifications were issued to twenty-seven (27)
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contractors. Bids were opened and read publicly on October 20,
1986, at 3:OO p.m. by the City Clerk.
Bids were received as fo].lows:
Kfewit Pacific Co. $7,532,000
Healy Tibbitts $8,227,000
Manson Pacific $9,055,363
City Engineer~s Estimate: $5,000,000
Due to the differenaes in the amount of the bids and in the funds
available for the project, staff is recommending that all bids be
rejected. Staff does not believe that redesigning and
readvertising would guarantee meeting the budget for this project
since there is such a significant difference between the budget
and the bid prices. ~urther, to redesign and readvertise would
take approximately faur months. A deiay in the reconstruction
process might hinder the momentum of the Pier Restoration
Corporation's ePforts now underway.
Staff is confident, however, that it can neqotiate a contract
which will be in the $5.5 to $6 million range as opposed to the
low bid amount of $7.5 million. It appears ~hat there are areas
which might yield significant cost savings. For example, minor
structural modifications may be made ta reduce the cast of
construction. Also, the site furnishings and liqht fixtures
appear to be more expensive that anticipa~ed. Tt may be passible
to negotiate with other trade names to achfeve a teduction in
cost. The specification for the timber decking was more
stringent than in the previous contract to ensure qreater
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uniformity of decking. This resulted in a substantialZy greater
, cost which may be a neqotiable item. Minor modi€ications in
design might also be made thraugh the negotiation process which
may produce significant cost savings.
section 6os of the Charter of the City of Santa Monica allows for
the declaration by the City Council to contract for Public Works
in the open market if, subsequent to advertising and bidding, the
work may be so purchased at a lower price. Staff recommends that
the City Counci~ make such a finding.
Construction Nianagement
Staff is recommending that the City Council authorize the City
Manager to negotiate and amend the current contract with Concept
Marine Associates to provide construction management services for
the Municfpal Pier construction. The City Council had approved
the selection of Concept Marine Associates in April, 1987, Por
construction manaqement of the Pleasure Pier reconstruction.
Staff had issued a Request for Proposals to five firms at that
time and had recommended Concept Marine Associates following a
thorough evaluation process. Concept Marine has proven to be an
excellent choice and has demonstrated a high level of competence
anc2 commitment to the City in the services provided thus far.
Staff has been impressed with the quality of the inspection and
the depth of experience in marine construction. The expert~se
gained through Concept Marine's work on the previous construction
~ob will help to ensure a timely and on-budget completion of a
very complex and highly visible construction project.
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The recommended fee of $200,000 ie in line with the $176,460
,
contract amount for the Pleasure Pier reconstx~uction. The
increase represents a longer construction period• (12 months
versus 9 months) and the additional inspection requirements for
the utility improvements.
Geotechnical services are necessary to allow for proper
observation durinq the installation of the piles. Staff is
recammending that McCZelland Engineers, the firm that conducted
the soil borings and prepared the geotechnical study €or this
project, perfoxza these services. The fee of $40,000 is slightly
less than the actual cost for these serviaes on the Pleasure Pier
construction under a different firm.
BudgetfFinancial Impact
Appropria~ion authority is available for Muni.oipal Pier
Reconstruction in Account N?~m~?er 30-740-625-000-940 in the amount
of $4,733,535. At such time when the final contract is
negotiated and contingencies defineci, staff will reqnest
additional budget transfers, if necessary.
Part of this work is eligible for Federal Emergency Management
Agency (FEMA) funds. FEMA will pay for seventy-five percent
(7B$) of the oost of replacing the Pier to its pre-s~orm
condition. Thie means replacement of the timber structural
members. Any improvements or additional strengthen3.ng, such as
the use of concrete piles and structural system, is considered a
betterment and is not e2igible for reimbursement under FEMA
regulations. FEMA's approved amount for the reconstruction of
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, the Municipal Pier to its pre-storm conctition fs $ 2,402,321; the
City will receive 75$ of this amount, or $1,801,741, upon
completion of construction. In addition to FEMA fund~, the State
Wildlife Conservation Board has awarded a$500,000 matching grant
for the fishing pier extension.
Recommendation
5taff respectfully recommends that the City Council:
1. Reject alI bids for the reconstruction of the west end
of the Municipal Pier and the upgrading of utilities.
2. Adopt the attached resoluti.on waiving competitive
bidding of the reconstruction of the west end of the
Municipal Pier and the upgrading of utilities.
3. Authorize the City Manager to negotiate and execute a
contract for the reaonstruction of the west end of the
Municipal Pier and the upgrading of utilities with
interested quallfi.ed firms in the open market.
4. Authorize the City Enqineer to issue any necessary
change orders to complete additionaZ work in accordance with
the Administrati.ve Instruction on Change Orders.
5. At~thorize the City Manager to negotiate and amend the
contract with Concept Marine Associates to provide
construction management services for an amount not to exceed
$200,000.
6. Authorize the City Manager to negotiate and execute a
contract with McClelland Engineers, Inc. to provsde
geotechnical services for an amount not to exceed $40,000.
Pregared by: Stan Scho11, birector of General Servfces
Judith Mefster, Pier Manager
Desi Alvarez, City Engineer
Attachment: Resolution
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' GS:SES:JM:mh
City CpunCil Meeting 10/25/88 Santa Monica, California
RESOLUTION NUMBER (CCS)
(City Council Series)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF SANTA M~NICA WAIVING COMPETITIVE BIDDING
AND AUTHORIZING TH£ CITY MANAGER TO NEGOTIATE
AND EXECU'FE A CONTRACT FOR THE RECONSTF2UCTION
OF THE WEST END OF THE MUNICIPAL PIER AND THE
UPGRADING OF UTILITIES ON THE EXISTING PIER
ON THE OPEN MARKET
THE CITY COLTIdCIL OF THE CITY OF SANTA MONICA DOES
RESOLVE A5 FOLLOWS:
SECTION 1. Section 608 of the Santa Monica Charter
authorizes the City Council to waive competitive bidding for a
public works prpject if, after rejecting bids, the City Council
determines that, in its opinion, the materials, supplies, or work
may be so purchased or performed at a lower price on the open
market or with City employees.
SECTION 2. On October 25, 1988, the City Council
rejected all bids presented for reconstruction af the west end of
the Municipal Pier and the upgrading of utilities on the existing
Pier on the ground that the lowest base bid received exceeded the
City Engineer's estimate by $2,107,000.
SECTION 3. In accordance with Santa Monica Charter
Section 608, the City Councii declares and determines that, in
its oginion, the pubiic work improvements to the Santa Monica
Pier may be performed more economically if purchased in the open
market, and waives competitive bidding for the improvements to
the Santa Monica Pier and authorizes the City Manager to
negotiate and exeaute a contract on the open market. The city
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Engineer believes that a reduction in the bid prices aan be
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achieved through negotiation due to the apparent high cost af
lighting fixtures and site furnishings, stringent timber decking
specification, and by makinq minor design modifications to
simplify the construction work.
SECTION 4. The City Clerk shall certify to the
adogtion of this Resolution, and thenceforth and thereafter the
same shall be in full force and effect.
APPROVED AS TO FORM:
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ROBERT M. MYERS
City Attorney
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complex. This fact increased the project's priority ranking and
assured funding in FX 1988-89. The loan will he dishursed in
equal amounts in two phases. The term of the loan is 15 years
at an annuaZ interest rate of 6.7329 percent.
BUDGETARYfFISCAL IMPACT
t7pon receipt of the loans totaling $750,000, the Airport will
incur debt which will be repaid over 10 years with the first
annual debt service payment due in 1989--90.
RECOMMENDATIONS
Staff respectfully recommends that the City Council approve the
attached Resolution authorizing the City Manager to execute the
necessary documents pursuant to the loan agreements.
Prepared by: Hank Dittmar, Airport Director
Linda Sul~ivan, Sr. Administrative Analyst
cc8988/mh
The estin~ted costs of this alternati~e, uhich ir.cluAes breakwatPr
restoratian, xs ~10.7 n3llxar, wF~~cF uhen fn~lated t~ 79fl6 d~llars u~e~
c~nstruct3on is exper_ted to begir i~ ~71,] n~13i~n. ~znc~ ths~
~~ter~ati~Q rebuxld~ thE New~orob ~3er xn tinher, reyul~r r~pair end
rQplaceroent ~f ~eter~arat~d p~lxngs, ca~s~ an~ a~es would be i-eGuired
fnr the Pier ~s uel~ a~ replacenent n;' r~ck on the 6reakwater. The
estinated cost ofl repair- an~ ~en°rai n~intenancP wuuad a~erage $ZZ~,O~G
a~ear. The stabiliz_a±inn an~ extensxon af the breakuater would
~rovlde for t~~F r~turn 9f lxnxted Yuat~ng actz~3ty around the Pier.
Rlternati~.e Z ~nLludes the rec~rv~t:uctzu~ ~f t~e end of ~nth t~e
He~cvnG and ~un~~ipal Fiers f~~n e northts~~uth line uest of Si~bad'~ an
con~rete. This aiterr,ati~e dvFS not ir~clude 6reakwater ras~oratian. Rs
in Rlterna±lve ?, fhe lnuer ~e~k wo~~ld 6e stru~tura~ly inde~en~ent fr~n
ttie nur3cipai Fier.
By ~enolianirg tF~ renairi~ny +i~~er- sectaon af the Neu~o~b and
~~nici~al Pier w~st of ~inbad's ar~d r~6ualding the entzre 7aQ,~Q~
aquare fe~t in concrete, ~ s±~onger p~er with a lcwer rxsk factnr wa1Z
be achieved. Oh1~ has deternine~ t~at the r~sR fact~r fur th~s
al*erra~zUe xs 1UL, ~eaning that +he ~ro6abx3i~y of #he Pier suffer~~g
5syn~fic~nt danage i~ o severe st~rn ou~r a pecxnd ^f 5d ~ears a~ ?~%.
The den~litaon af portir~~ ~$ the N~~cvn6 pier and Munacipal P~er
~i~l reGuire relncats~n Gf seuer~l °ier businesses and the ~ar6cr
trai~er durin~ fhe cans~ructian ~~~16~ a~d uill delay the rEnav~tion c~
the forner ~a6y's uock~
Th~ estY~ated ..aat for alternative ~2 ~s ~17.3 nilliona or ~7Z_4
nilPian in 1~86 d~llars wh~n c.onstr!~ct~~r ~s ex~~c*ed t~ 6egin. lhe
cc.:cr~t~ paers w~ll reqLire ~in~rral repa~r and na2ntenance ~itn an
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this Resolution, and thenceforth and thereafter the same shall be
in full force and effect.
APPROVED AS TO FORM:
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Robert M. Myers
City Attorney