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Council Meeting June 22, 1999
Santa Momca. California
TO Mayor and City Council
FROM City Staff
SUBJECT Recommendation to Award Contract for the 1997-98 Federal Street
Resurfacing Project #2 to PALP, Inc (DBA Excel Paving Company), and
Authonze the City Manager to Negotiate and Execute a Professional
Services Contract with DMR Team Inc for Construction Management
Services
Introduction
ThIs report recommends that the CIty Council award a contract for the construction of the
1997-98 Federal Street Resurfacing Project # 2, Federal Project # STPL-5107 (008) to
PALP Inc (DBA Excel Paving Company). the lowest responsible bidder. In the amount of
$716.167, find that PALP Inc's (DBA Excel Paving Company) failure to acknowledge
Addendum 1 In their bid proposal IS a minor bid Irregulanty, and authOrize the City
Manager to negotiate and execute a professional services contract With DMR Team Inc
for construction management services In the amount of $58.257 The locations of the
project are 14th Street from Wilshire Boulevard to PICO Boulevard and 11 th Street from
Wrlshlre Boulevard to Colorado Boulevard
Back!=lround
Each fiscal year. the City CouncIl authorlzes the Implementation of a one-year program of
street Improvements IdentIfIed by the Department of Environmental and Public Works
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u>frl
JUN 2 2 fQC~
Management Including street resurfacing, slurry sealing. and repairs to curbs. gutters. curb
ramps, bus pads, and sidewalks The pnonty projects for the year are selected from
among those streets that rank highest In the need for repair In the Pavement Management
System Report This report has been required since 1989 to qualify for federal funding
and IS updated penodlcally It ranks the condition of all streets In the City DUring the
annual on-site Inspection of these pnonty locations, staff further evaluates streets for type
and schedule of repair by age, surface and subsurface conditions, complaints received,
type of use (I e , commercial, Industnal or reSidential), current traffic volume, and projected
change of use or volume
The federal government, through vanous legislation, proVides aid for the development of
surface transportatIon projects A portion of these funds are set aSide for the maintenance
and upgrading of local streets In Santa Momca, 14th Street from Wilshire Boulevard to
PICO Boulevard and 11 th Street from Wilshire Boulevard to Colorado Boulevard qualify for
these federal funds The federal government requires projects uSing these funds to follow
federal contracting procedures For thiS reason, thiS project was bid separately from the
City's annual street resurfacing project ThiS project Will use all of the $589,615 currently
available
Every effort IS made to repair and recycle eXisting pavement rather than unnecessan Iy
Incur the expense of total pavement replacement These streets WIJJ be resurfaced by
heating and sconng the top one Inch of thickness, adding 011 to rejuvenate the pavement.
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and then applYing an overlay with rubberized asphalt One of the benefits of uSing the
rubberized asphalt means that more than 15,000 old tires Will not be placed In a landfill
DIScussion
The Notice Inviting Bids was published In the Argonaut on April 19, 1999 and April 26,
1999 A Notice InvitIng Bids. along with the plans and specifications. were also submitted
to seven construction Journals, and were sent to five women/mlnonty business enterpnse
(WMBE) associations Twelve contractors requested bid packages The City Clerk's
Office received five sealed bids which were publicly opened and read aloud on May 25,
1999, by the Deputy City Clerk The bid results were as follows
1 Excel Paving Company $ 716.167
2 Sully-Miller Contractmg Company $741,141
3 Sequel Contractors, Inc $ 751,834
4 SilVia Construction. Inc $ 769,513
5 Los Angeles Englneenng, Inc $ 830,609
City Engineer's Estimate $ 745,000
The lowest bidder, Excel Paving Company. failed to acknowledge Addendum 1 In their
submitted bid proposal Addendum 1 contained an updated federal wage rate schedule
None of the revised wage rates affected labor classifications that Will be used on thiS
project The Contractor's representative stated after the bid opemng that they were aware
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of the addendum and that the addendum did not affect their bid amount Because the bid
addendum did not affect the bid price and because failing to acknowledge the addendum
did not provide the contractor any unfair advantage over other bidders, the City CouncIl
can determme that failure to acknowledge the addendum IS a minor bid Irregularity
Excel Paving Company supplied the City with a list of recent similar projects City staff
contacted representatives from the City of Culver City, the County of Los Angeles and the
City of Long Beach Projects for those organizations Include Sepulveda Boulevard
Resurfacmg, FoothIll Boulevard Resurfacing, and 2nd Street Resurfacing, respectively All
references reported that the Contractor's work was very good Excel Paving Company has
also completed projects for the City of Santa Monica Their work for the City has been
very good The State Contractors' License Board verified that the Contractor's license IS
current. active, and m good standing To be eligible for federal funding. the selected
contractor must meet the 14% DBE goal established for thiS project Excel Paving
Company has committed to uSing AM Concrete, a federally listed DBE firm, for
approximately 19% of the project
Construction ManaQement
The professional services construction management contract Includes inspection and
management of the construction work detailed above Requests for Proposals were
sent to SIX fIrms The City received four replies and each firm was Interviewed by a
staff commrttee of three englneerslrnspectors resultrng In the selectIon of DMR Team,
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Inc DMR Team. Inc IS successfully providing simIlar services for the PIca Streetscape
PrOject
Bud~etlFlnanclal Impact
Construction funds required are as follows
Contract
Construction Contract Contingency
Construction Management
Construction Management Contingency
$716,167
$ 75,576
$ 58,257
$ 6,000
$856,000
Total
Funding IS available In the following accounts
ACCOUNT CONTRACT CONTINGENCY TOTAL
43-770-402-20098-8905-99453
(Street Resuriaclng, Federal $589.615 SO $589.615
Match 1)
01-770-402-20098-8905-99453
(Street Resuriaclng, Federal $75,629 SO 575,629
Match 1)
01-770-402-20098-8905-99152
(Street Repair/Resurfacing) $109,180 $81,576 5190,756
TOTAL $774,424 $81,576 $856,000
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RecommendatIon
Staff recommends that the City Council
1 Find that PALP Inc's (DBA Excel Paving Company) failure to acknowledge
Addendum No 1 IS a minor bid Irregulanty,
2 Award a contract for the constructIon of the 1997-98 Federal Street Resurfacing
PrOject # 2 to PALP Inc (DBA Excel Paving Company), the lowest responsible
bidder, In the amount of $716,167.
3 Authorize the City Manager to negotiate and execute a professional services
contract with DMR Team Inc for construction management services In the amount
of $58,257, and,
4 Authorize the City Engineer to Issue any necessary change orders to complete
additional work wIthin budget authority
Prepared by
Craig Perkins, Director of EnVironmental and Public Works Management
Anthony Antlch, P E , City Engineer
Dave Bntton, P E, Senior CIVil Engineer
Neil Cole, P E . CIVil Engineer
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