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City Council Meeting November 24. 1998 Santa Monica. California
TO Mayor and City CouncIl
Chairperson and Redevelopment Agency Members
FROM City Staff
Redevelopment Agency Staff
SUBJECT Recommendation for the City CouncIl to Award A Construction Contract for
the PICO Boulevard Streetscape Improvement Project and for the
Redevelopment Agency to Authorize the Executive Director to Negotiate and
Execute Contracts for the Construction and Construction Management of the
PICO Streetscape Improvement Project
I ntrod uctlon
This report recommends that the City Council award a contract for the construction of the
PICO Boulevard Streetscape Improvement Project to Terra-Cal Construction. Inc, the lowest
responsible bidder. In the amount of $4,076.379 This report also recommends that the
Redevelopment Agency (RDA) authorize the Executive Director to negotiate and execute
contracts for (1) construction of the PICO Streetscape Improvement Project With Terra-Cal
Construction. Inc, and (2) construction management services for the PICO Boulevard
Streetscape Improvement Project With DMR Team, Inc In an amount not to exceed
$314.295
Back~round
The proposed project area for the PICO Streetscape Improvement Project IS PICO Boulevard
1
CC--ru "I
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DEe - 8 818
from Ocean Avenue to the easterly City limit In January 1997. the City Council and the
Redevelopment Agency Issued resolutions approving the Implementation of the
Commercial Streetscape Program. and approving a Reimbursement Agreement between
the City and the Redevelopment Agency The RDA contracted With Kathenne Spitz
Associates to develop a final design plan for the PICO Streetscape project and to prepare
construction drawing and speCifications The key components of the streetscape plan are
new street trees, replacement of a portion of the eXisting sIdewalk With Interlocking paving
stones. new pedestnan lights and street lighting condUits, landscaped medians.
replacement of the eXisting cemetery fence adjacent to PICO Boulevard With a new chain
link fence. and Installation of an art project consisting of lights (artistic and functional) and a
mural at the freeway underpass near Centlnela Avenue Damaged curbs. and gutters, and
sidewalks will be replaced as part of thiS project Street I1ght CirCUits will be updated from
serral CirCUits to multiple CirCUits Construction IS scheduled to begin January 4. 1999 The
project construction completion date IS In November 1999
On May 5. 1998, the CIty CounCil reViewed and approved the desIgn for the project. but
requested that additional landscaped medians, pedestrian lights and trees be Included In
the design for the entire project site to be reViewed and approved In conjunction With award
of the construction bid ExhibIt A shows these design elements as Incorporated Into the
PICO Streetscape Improvement Project The cost of the additional trees, medians. and
pedestrian lights IS $505,800
2
The City Council also directed staff to determine the cost of Installing slgnage for U-turns,
the cost of constructing fence around the circumference of the Cemetery and the public
process required for the design and construction of the fence The cost of the U-turn
slgnage IS estimated at $3,300 The cost of the remaining portions of the Cemetery fence
IS estimated at $475.000 The publiC process for the deSign and construction of the
Cemetery fence Involves a minimum of three community meetings and public workshops
With the users, the neighbors and City staff
DIScussion
Construction Contract
The Notice InViting Bids was published In the Los An!=jeles Times on September 17 and 18,
1998 The Notice InViting Bids. along With the plans and specifications was also submitted
to four construction Journals. and was sent to SIX women/mlnonty bUSiness enterpnse
(WMBE) aSSOCiations Bid packages were requested by 28 contractors The City Clerk's
Office received SIX sealed bIds which were publicly opened and read aloud on October 19,
1998. by the Deputy City Clerk The bid results were as follows
Contractor Total Bid
Terra-Cal Construction. Inc $ 4,076,379
Valley Crest $ 4,357,290
3
- ----
Geoscene Landscape $ 4,378,245
Sequel Contractors, Inc $ 4,598,606
Los Angeles Engmeenng, Inc $ 4,923,141
Gnfflth Company $ 5,941,336
City Engineer's Estimate $ 4,100,000
Terra-Cal Construction, Inc, with the lowest bid of $4,076,379 IS recommended as the firm
to receive the award of contract The firm supplied the City with the names of recent similar
projects City staff contacted representatives of several projects Including the cities of
Garden Grove, Culver City, Burbank. Paramount, and Santa Clanta. and Caltrans
Projects for those organizations Include Brookhurst Street Median Improvements (City of
Garden Grove), landscaping the 1105 FWY and the 1405 FWY (Caltrans), the Natural Trail
project (Culver City), McCambridge Park Improvements (City of Burbank), Somerset
Boulevard medians Improvement (City of Paramount), and Soledad Canyon Road median
landscaping (City of Santa Clarita) All references reported that the Contractor's work was
satl sfactory The State Contractors' License Board verified that the Contractor's license IS
current, active, and In good standing In addition. since approximately 29% of the contract
IS electrical work, the City contacted representatives from other projects regarding the
performance of the electrical subcontractor (LA Signal) performance City staff contacted
Caltrans and the cities of Pasadena and Garden Grove All references reported that LA
Signal's work was satisfactory City staff also checked the State's debarment (disqualified
4
- -- - -
contractors') list Neither Terra-Cal Construction nor their subcontractor (LA Signal) are on
this I1st
After the bids were opened. two letters of protest were presented to the City The
Center for Contract Compliance protest raised Issues regarding nonpayment of
prevailmg wages m 1995 on a City of Chino Hills public works project In which Terra-
Cal was pnme contractor Terra-Cal response was that the company made restitution
In the amount stated In the Notice of Payment Due from the State of California Labor
Commissioner Nancy Meadows of the City of Chino Hills said that the City did not
check certified payrolls However, the Center for Contract Compliance Inspected the
certified payrolls that resulted In a Jetter for the State Labor Commission to Terra-Cal
requesting payment She also said that T erra-Cal made restitution and compiled with
the terms of the contract and their work product was satisfactory The City of Chino
Hills has used T erra-Cal since the construction of this project
The second protest raises Issues regarding current litigation on a City of Palmdale
public work project and a nonpayment of prevall1ng wages In 1995 on a State
Department of Transportation project In that Terra-Cal was pnme contractor Terra-Cal
indicated to the City that the Palmdale project IS In litigation Terra-Cal filed a laWSUit
against the City of Palmdale for delay costs of $150.000 Staff discussed the project
with Ken Linhardt, Palmdale project construction manager He said that the project IS
5
almost complete and he has no knowledge of any problems with prevailing wage
complIance Mr Linhardt saId that he IS unable to provide more Information because of
pending litIgation Terra-Cal settled the labor claim (nonpayment of prevailing wages)
with the State Department of TransportatIon and made payments to the State The
State Department of Transportation (Caltrans) continues to award projects to Terra-Cal
In 1997, Terra completed a landscape project for the State at the I 105 and I 405
Freeways Caltran's project Inspector said that the project IS In the plant establishment
stage and the contractor has complied with the prevailing wage requirements
Staff made further InqUires with the State Department of Transportation (Caltrans) labor
Compliance OffIce Robert Traynor of Caltrans Labor Compliance Office said that
Terra-Gal IS a good contractor A few years ago they had a problem wIth
mlsclasslflcatlon of employees. but this was cleared up without any penalties from
Caltrans Mr Traynor said that LA Signal. electrrcal subcontractor, continues to do
work for the State Mr Traynor said that while LA SIgnal has had some labor problems
on State jobs In the past. ItS recent record appears to be Improving and LA Signal IS
paYIng prevailing wages on State projects
ConstructIOn Management
A Request for Proposal (RFP) for constructIon management services on the PICO
Streetscape Improvement Project was Issued on September 15, 1998 Responses were
6
receIved from three (3) firms A staff committee Including representatives from Planning
and Community Development and Environmental and Public Works Management
Departments was formed to review the responses and Interviewed all three firms Selection
cnterla Included whether the respondent showed an understanding of the work and
planned approach, extensive experience With similar work. qualifications of staff.
expenence With prevailing wage requirements for Federal projects and disputes. Including
the review of certIfied payrolls and conducting employee Interviews. and ability to meet tight
times schedules With a minimum amount of change orders dunng construction
The reView committee recommended the firm of DMR Team, Inc for the construction
management services for this prOject This work Includes overseeing the contractor dunng
the construction penod to ensure that the contractor conforms With plans and speCificatIons,
monitors traffic control and detour plans. coordinates With Caltrans for the constructIon of
the art lights and mural under the freeway. reviews change order requests, conducts labor
Interviews. reviews certified payrolls for compliance With the prevailing wage determinations
(Davis-Bacon wage rates) and proVides Information to the construction contractor on as
needed baSIS
Busmess Outreach Coordmatlon
Staff IS developing a request for proposals to Identify organizations that could act as a
problem solver and liaison between the PICO bUSiness community, the City, and the
7
general contractor throughout the construction process. which IS expected to last
approximately one year The organization would also encourage merchants to upgrade
their facades and premises to maximize the proJect's benefits and would help set the
stage for a possIble business Improvement district The projected budget of $40,000
would be available from the RDA CIP Account (17-720-266-20096-8905-99391)
BUDGET/FINANCIAL IMPACT
The total funds avaIlable for the PICO Streetscape Project are $4.915.000 (see next
page) The total Redevelopment expenditure of $4.527,568 for the PICO Streetscape
Project. pursuant to the Reimbursement Agreement for the Commercial Streetscape
Program. IS reflected In CIP account numbers 17-770-266-20097-8905-99455 and 17-
720-266-20096-8905-99391
The following table IS a distribution of available funds
ACCOUNT
CONSTRUCTION CONSTRUCTION BUSINESS TOTAL
MANAGEMENT OUTREACH
Redevelopment Agency $0
(EDA Grant with CDBG Match) $3,057,496 $0 $3,057.496
17 -770-266-20097 -8905-99455
(Commercial Streetscape
Program) $323.239 $40,000 $1,470,072
17-720-266-20096-8905- $1,106,833
99391
Transportation Fund
8
41-750-657 -20098-8900-99114 $165,000 $14,850 SO $179,850
Sidewalk Repair
01-770-402-20098-8905-99091 $115.000 $7,000 $0 $122.000
Streetlight Systems
01-770-453-20099-8900~99155 $80,671 $4,911 $0 $85.582
Total $4,525,000 $350,000 $40,000 $4,915.000
A The construction funds required are as follows
Construction Contract $ 4,076,379
ContIngency (9%) $ 448,621
Total $ 4.525,000
Funds for construction are available In the following CIP accounts
ACCOUNT CONTRACT CONTINGENCY TOTAL
Redevelopment Agency
(EDA Grant With CDBG Match) $3,057,496 $3,057.496
17-770-266-20097-8905-99455
(Commercial Streetscape 5698,734 5408,099 51,106,833
Program)
17-720-266-20096-8905-99391
Transportation Fund
41-750-657-20098-8900-99114 $150,000 $15,000 $165.000
Sidewalk Repair
01-770-402-20098-8905-99091 $100,000 $15,000 $115,000
Streetlight Systems
9
01-770-453-20099-8900-99155 570,149 $10,522 $80,671
TOTAL $4,076,379 5448,621 $4.525,000
Funds required for the Construction Management Contract
Construction Management Contract $ 314,295
ContIngency $ 35,705
Total $ 350,000
Funds for the construction management services are available In the following CIP
accounts
ACCOUNT CONTRACT CONTINGENCY TOTAL
Redevelopment Agency
(Commercial Streetscape $287,534 535,705 $323,239
Program)
17 -720-266-20096-8905-99391
Transportation Fund
41-750-657-20098-8900-99114 $14,850 $0 $14,850
Sidewalk Repair
01-770-402 -20098-8905-99091 57,000 $0 57,000
Streetlight Systems
01-770-453-20099-8900-9915 $0
$4.911 $4,911
Total $314,295 $35,705 $350,000
Maintenance
These Improvements will result In additional maintenance requirements City staff Identified
those Items likely to require addItional maIntenance and estImated these additional costs
10
(ExhibIt B) The total estimated additional annual maintenance cost for this project IS
$56,491 of whIch $16,036 IS for the added project scope requested by Council on May 5.
1998 Future maintenance budgets may be Increased to reflect these added costs
RECOMMENDATIONS
Staff recommends that the City CouncIl
1 Award a contract for the construction of the PICO Streetscape Improvement Project to
Terra-Cal Construction, Inc, In the amount of $4.076.379, and
2 Authorize the City Engineer to Issue any necessary change orders to complete
additional work In conformance with the Administrative Instructions on change
orders
Staff recommends that the Redevelopment Agency
1 Authorize the Executive Director to enter Into a construction contract with Terra-Cal
Construction. Inc In the amount of $4,076,379, and
2 Authorize the Executive Director to negotiate and execute a professional servIces
contract with the firm of DMR Team, Inc for construction management services on
the PICO Streetscape Improvement Project In an amount not to exceed $314,295
Exhibits A and B
II
--- ---- --- -------
Prepared by Craig Perkins, Director of Environmental and Public Works Management
Jeff Mathieu, Director of Resource Management
Suzanne Fnck. Director of Planning and Community Development
Anthony Antlch. P E , City Engineer
Tina Rodnguez, Earthquake Recovery Administrator
Bill Zein, P E , CIvil Engineer
David Martin, Semor Planner
Gwen Pentecost. Semor Administrative Analyst
12
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