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Council Meeting May 25. 1999 Santa MOnica, California
TO Mayor and City Council
FROM City Staff
SUBJECT Recommendation to Award a Construction Contract for the Pacific Coast
Highway Sewer Replacement Project of the Coastal Interceptor Sewer to
Modern Conti nental Construction Company, Inc and Appropriate $1,170,702
from the Wastewater Fund Balance to a City Match Account to Hold until
Final Audit
Introduction
ThiS report recommends that the City Council award a contract to Modern Contmental
Construction Company, Inc In the amount of $9,707,025 for construction of the Pacific
Coast Highway Sewer Replacement Project of the Coastal Interceptor Sewer ThiS report
also recommends thatthe City Council appropnate $1,170.702 from the Wastewater Fund
balance to account no 31-760-661-20099-8905-99124 for the City's 10% set aSide until
final audit
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, carnes It to the
City of Los Angeles' Hypenon Plant for treatment Many sections of the CIS were
damaged by the 1994 Northndge earthquake and projects are underway to repair the
damage The CItIes of Santa MOnica and Los Angeles are working Jomtly on thIS
rehabilitation effort, With Santa MOnlca serving as the lead agency for that portion of the
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MAY 2 5 1999
be.
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 P,CO
Boulevard to Main Street sewer rehabilitation, the Ocean Avenue to Neilson Way relief
sewer. and the Moss Avenue Pumping Station The CIS Project also mcludes the
replacement of two flow-monitoring stations which mOnitor flow m and out of the City at the
northern and southern City limits Construction has been completed for the replacement
of Moss Avenue Pumpmg Station's structural shell and construction for the Appian Way
portIon of the CIS IS nearing completIon
DIScussion
The PacIfIC Coast HIghway Sewer Replacement Project Includes mlcrotunnellng
approximately 8.500 feet of 50-Inch diameter pipe under PacifiC Coast Highway from the
northerly City limits to the 1550 Parkmg Lot, north of the Santa Monica Pier
M Icrotu n ne II ng IS the unmanned entry method that uses a remotely operated
mlcrotunnellng boring machine to Install pipe underground With minimum surface
disruption Also Included IS the traditional "cut and cover" Installation of 7,500 feet of 12-
Inch diameter pipe. which Will serve as a local collector sewer line for beachfront properties
A Notice InViting Bids for the construction of the Pacific Coast Highway Sewer
Replacement Project was publIshed In the Argonaut on March 3 and 9, 1999 The Notice
InViting Bids. along With the plans and speCifications. was also sent to eight construction
Journals and SIX women/minority bUSiness enterprise (WMBE) aSSOCiations Bid packages
were requested by 35 contractors The City Clerk's Office received five sealed bids which
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were publicly opened and read aloud on Apnl 12, 1999 by the Deputy CIty Clerk The bid
results were as follows
CONTRACTOR AMOUNT
Modern Contmental Construction Co , Inc $ 9.707,025
VadnaiS Corporation $10,851,500
Malden Buntlch Construction Co , Inc $11,289,250
Dillingham Construction $12,702,636
BHR - Garver. Inc $16,769,020
ENGINEER'S ESTIMATE $,10,000,000
The low bidder. Modern Contmental Construction Company, Inc, supplied the City With
numerous references Modern Continental Construction Company, Inc 1 has been m
operation for 33 years, has successfully constructed heavy public works projects ranging
In size from $5 mIllion to $800 million and has approximately $1 5 blllJon of heavy
construction underway In both the Umted States and abroad As a part of a recent
transaction. the key personnel and the busmess of Westcon Mlcrotunnellng are now part
of Modern Continental Construction Company, Inc Westcon Mlcrotunnellng, the
mlcrotunnelmg diVISion of Modern Continental Construction Company, Inc , meets all ofthe
expenence requirements In the Contract Documents and has proVided the City With many
projects as references These projects lncludethe 12th Street Pipeline prOject In San Jose,
the New Saint James Avenue Interceptor In Boston MA, and the Morro Hills Waterline
undercrossmg of the environmentally senSitive San LUIS Rey RIver In OceanSide, CA In
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community ConstructIon materials and eqUIpment are often placed In the roadway and/or
on Sidewalks, thereby obstructmg both vehicular and pedestnan traffic NeIghborhood
aesthetics suffer
(s) ThIs construction boom will likely continue A significant amount of the City's
reSidential hOUSing stock was bUilt pnor to the 1960's Parcels developed with older
structures tend to be developed at denSities and heights that are lower than what IS
currently allowed by zOning Given these conditions and the booming economy, there IS
a high likelihood that a significant amount of construction Will occur In the City wIth Its
attendant disruption to reSidents' peace and qUiet enjoyment
(t) The redevelopment of these currently underdeveloped propertIes at greater
heIght and denSitIes would also result In the loss of vIews and light and could pose a threat
to the eXisting character of neighborhoods and the City's unique natural environment
(u) There IS also a Significant shortage of reasonably available and convenient
parking spaces In these residential districts ThiS IS demonstrated In part by the large
number of preferential parking districts that have been established by the City and the
continued demand for the creation of new preferential parking districts Given the growing
affluence of the community, Increased development may exacerbate an already
unacceptable level of parkmg problems
(v) In order to address the changes resultmg from Costa-Hawkms and from the
economiC boom, In part, the CIty undertook a reVISIon of Its hOUSing polrcles through the
process of amendmg the City's HOUSing Element ThIS was a drfflcult process State
HOUSing Element law purports to require Cities to continually proVide new hOUSing
However, Santa MOnica IS fully bUilt out and committed to neighborhood preservation
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1 Award a contract to Modern Contmental ConstructIon Company, Inc ! the lowest
responsible bidder. In the amount of $9,707,025 for the Pacific Coast Highway
Sewer Replacement Project of the CIS,
2 Appropriate $1.170,702 from the Wastewater Fund balance to account no 31-760-
661-20099-8905-99124 for the City's 10% set aSide until final audit,
3 Authorize the CIty Engmeer to Issue any necessary change orders to complete
additional work within budget authonty and In accordance with the Administrative
Instructions on Change Orders, and
4 Authorize the budgetary Items detailed In the Budget/Fmanclal Impact Section of
this report
Prepared by Craig Perkins. EnVironmental and Public Works Management DIrector
Anthony Antlch. P E . City Engineer
GII Borboa. P E . Utilities Manager
Jack Schroeder. P E Disaster Recovery Program Manager
Susan Lowell. P E , CIVil Engmeer
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