SR-505-010
EPWM: CC: AA: JS: SL;F:\DATA\SPFILES\SP1769\Staff Reports\CC1769 M-A (V6).DOC
City Council Meeting: August 14, 2001 Santa Monica, California
TO: Mayor and City Council
FROM: City Staff
SUBJECT:Award of Contract to KEC Engineering for Construction of the Moss Avenue
Pumping Station Phase 3 and the Appian Way Retaining Wall Projects;
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, KEC
Engineering, in the amount of $1,835,000 for the Moss Avenue Pumping Station Phase 3
and the Appian Way Retaining Wall project; approve a Modification to Agreement Number
7355 (CCS) with Harris and Company in an amount not to exceed $40,000 for community
outreach services; approve a Modification to Agreement Number 7476 (CCS) with Black &
Veatch, Inc. in an amount not to exceed $264,404 for construction management services;
approve a Modification to Agreement Number 7216 (CCS) with Montgomery Watson
Americas in an amount not to exceed $129,203 for Engineer of Record services during
construction of the Moss Avenue Pumping Station Phase 3 project; and approve a
Modification to Agreement Number 7749 (w/o CCS) with Wheeler and Gray in an amount
not to exceed $9,500 for Engineer of Record services during construction of the Appian
Way Retaining Wall project.
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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. The 1994 Northridge earthquake damaged
many sections of the CIS and projects are underway to repair the damage. The 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
Ocean Avenue and Neilson Way relief sewer and the Moss Avenue Pumping Station.
Construction has been completed for Phases 1 and 2 of the Moss Avenue Pumping Station
and the Appian Way project and Phase 1 of the Pacific Coast Highway sewer Replacement
project. Construction for the Ocean Avenue/Neilson Way and Phase 2 of the Pacific Coast
Highway Sewer replacement projects are currently underway.
The retaining wall on the east side of the City?s 1640 beach parking lot was constructed
prior to 1940. It suffered some damage during the 1997-98 El Nino storms and was
reinforced in 1998 to prevent the collapse of the wall due to heavy equipment loadings
resulting from the construction of the Moss Avenue Pumping Station. The City has been
granted a State Transportation Improvement Program (STIP) grant in the amount of
$428,000 for construction of the new wall and adjacent street repairs.
Discussion
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Construction
The Moss Avenue Pumping Station is being constructed in three phases. The station?s
below-grade structural shell (Phase 1) and its electrical and mechanical systems (Phase 2)
have been constructed, and the pumping station is now operational. Phase 3 of the Moss
Avenue Pumping Station project, which is the subject of this staff report, includes the
demolition of the old Moss Avenue Pumping Station, construction of retaining walls,
landscaping and final architectural treatment.
The Appian Way retaining wall project includes demolition of an old timber retaining wall
adjacent to the 1640 beach parking lot, which is directly across the street from the Moss
Avenue Pumping Station, and replacement with a new concrete retaining wall. It also
includes new fencing, sidewalks, street lights and street trees, all designed to be
compatible with the architecture and site improvements at the Moss Avenue Pumping
Station.
A Notice Inviting Bids for the construction of the Moss Avenue Pumping Station and
Appian Way Retaining Wall project was published in the Los Angeles Times on June 15
and June 17, 2001. The Notice Inviting Bids and plans and specifications was also sent to
six construction journals. Bid packages were requested by 12 contractors. The City
Clerk?s Office received four sealed bids, which were publicly opened and read aloud on
July 9, 2001, by the Deputy City Clerk. The bid results were as follows:
CONTRACTOR AMOUNT
Caliagua, Inc. $1,450,000
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KEC Engineering, Inc. $1,835,000
G. B. Cooke, Inc. $1,887,750
Clarke Contracting Corporation $2,084,383
Engineer?s Estimate $1,235,000
Caliagua, Inc., asked to be relieved of their bid due to a mistake. The Instructions to
Bidders state that a bidder may be relieved of a bid due to mistakes only if the bidder can
establish to the satisfaction of the City Engineer that all of the following circumstances
exist:
(a) A mistake was made.
(b) The bidder gave the City written notice within five days after the opening of the
bids of the mistake, specifying in the notice in detail how the mistake occurred.
(c) The mistake made the bid materially different from what the bidder intended it
to be.
(d) The mistake was made in filling out the bid and not due to error in judgment or
to carelessness in inspecting the site of the work, or in reading the plans and
specifications.
After a thorough investigation by City staff, it has been determined that all of the above
circumstances exist and that there is a valid basis for relieving Caliagua, Inc., of its bid.
This leaves the second low bidder, KEC Engineering, as the best bidder. KEC
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Engineering, Inc. supplied the City with numerous references, has been in operation for
over 40 years and has successfully constructed numerous heavy public works projects.
These include large culverts, pipelines and debris basins for the Industry Urban
Development Agency; 6,000 feet of large sewer mains for the Los Angeles County
Sanitation District; large flood control culverts and open channels for the Los Angeles
County Department of Public Works; bridges and flood control channels for the Irvine
Community Development Company; and numerous pipelines, channels and bridges for the
Riverside County Flood Control District. In fact, the Los Angeles County Department of
Public Works, Los Angeles County Sanitation District, Irvine Ranch Water District,
Riverside County Flood Control District and Caltrans have all employed KEC Engineering,
Inc., for repeated projects. KEC Engineering is currently completing the Ocean Avenue
and Neilson Way relief sewer project for the City. Staff finds that KEC Engineering, Inc.
personnel to be competent, professional, sensitive to the concerns of both the City and the
public, and able to complete projects on or before scheduled completion.
Consultant Selection
The consultants for community outreach, construction management and engineer of record
services for the Moss Avenue Pumping Station were chosen using the City?s competitive
purchasing procedures for the selection of consultants during the early stages of the
Coastal Interceptor Sewer project. The engineer of record for the Appian Way Retaining
Wall project was also selected using the City?s purchasing procedures, in accordance to
SMMC section 2.24, Purchasing System. These services are necessary during the course
of construction. In order to provide continuation of services, staff recommends that their
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contracts be extended with amendments to the original agreements.
Community Impacts
Staff recommends continuing the services of a public outreach consultant, Harris and
Company, to advise the public of construction schedules and issues. Harris and Company
successfully provided these services for Phase 1 and 2 of the project. Outreach will be
done in a variety of ways, including continued publication of the Cone Zone newsletter;
written notification and personal contact with affected residents. A 24-hour hotline will
remain in service, allowing the public to inquire about the project and express their
concerns about various project elements.
Construction Management
Construction management of the CIS involves extensive coordination between numerous
and complex construction projects occurring simultaneously on highly visible sites. Staff
recommends continuing the services of Black and Veatch which was selected through a
competitive process to provide construction management services on the first two phases
of the Moss Avenue Pumping Station. The firm also has successfully provided construction
management services on Phases 1A and 1B of the Pacific Coast Highway Sewer
replacement, 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, the Pacific Coast Highway Sewer Replacement, Phase 2 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,
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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 for Moss Avenue Pumping Station Phase 3
The CIS project was designed by Montgomery Watson. Their current contract provides for
services up to the receipt of construction bids for the Moss Avenue Pumping Station
project. 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.
Engineer of Record Services for Appian Way Retaining Wall Project
The Appian Way Retaining Wall project was designed by Wheeler and Gray, whose
current contract provides for services up to the receipt of construction bids for the Appian
Way Retaining Wall project. 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
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FUNDS REQUIRED:
Moss Appian Total
Avenue Way Funds
Pumping Retaining Required
Station Wall
KEC Engineering
Construction Contract $1,070,000 $ 765,000 $1,835,000
Contingency $ 125,000 $ 50,000 $ 175,000
Total $1,195,000 $ 815,000 $2,010,000
Harris & Company - 7355 (CCS)
Contract $ 20,000 $ 20,000 $ 40,000
Contingency $ 3,000 $ 3,000 $ 6,000
Total $ 23,000 $ 23,000 $ 46,000
Black & Veatch, Inc. ? 7476 (CCS)
Contract $ 186,168 $ 78,236 $ 264,404
Contingency $ 28,000 $ 12,000 $ 40,000
Total $ 214,168 $ 90,236 $ 304,404
Montgomery Watson Americas ? 7216 (CCS)
Contract $ 129,203 --- $ 129,203
Contingency $ 13,000 --- $ 13,000
Total $ 142,203 --- $ 142,203
Wheeler & Gray Contract ? 7749 (w/o CCS)
Contract --- $ 9,500 $ 9,500
Contingency --- $ 1,000 $ 1,000
Total --- $ 10,500 $ 10,500
PROJECT TOTAL: $1,574,371 $938,736 $2,513,107
Funds in the amount of $1,574,371 are available for the Moss Avenue Pumping Station
in account C31079202.589000 ?Moss Avenue Pump Station.?
The Appian Way Retaining Wall project includes upgraded street lighting on Appian Way
and Seaside Terrace, which the City assured the neighborhood would be installed upon
completion of the CIS project. Funds for the retaining wall and street lighting need to be
appropriated from various accounts. The total project cost is $938,736, of which $140,000
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is for the street lights.
?
Funds in the amount of $85,000 are available to appropriate from the Wastewater Fund
to account C31065802.589000 for the street light portion of the project.
?
Funds in the amount of $20,000 are available to appropriate from the General Fund to
account C01015502.589000. These funds are from the Project New Hope development
earmarked to pay for street lights in the area, which had previously been deposited into
the General Fund.
?
Funds in the amount of $300,990 area available to appropriate from the Wastewater
Fund to account 31079202.58900 for the Appian Way Retaining Wall ($265,990) and
the street lights ($35,000). These funds represent a percentage of the costs, based on
a front footage formula, attributable to the sewer projects. Sewer project funds are
being used because the heavy construction equipment used to construct Phases 1 and
2 of the Moss Avenue Pumping Station and Appian Way microtunneling directly
affected the stability and condition of the Appian Way Retaining Wall and roadway.
The City of Los Angeles reimburses the City of Santa Monica one hundred percent of
the wastewater costs of the Moss Avenue Pumping Station project, which will be
recorded in revenue account 31661.400890 in FY 2001-02. The FY 2001-02 adopted
budget included $1.6 million in reimbursements. The current cost of the project has
increased; therefore, the revenue budget should be increased by $275,361. 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.
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?
Funds in the amount of $428,000 are available for appropriation to account
C20065802.589000 for the Appian Way Retaining Wall. The City of Santa Monica
received a reimburseable STIP grant in this same amount for construction of the wall.
Revenue from the STIP grant will be recorded in account 20402.406410, ?Appian Way
Retaining Wall Revenue Account.?
?
The remaining required funds of $104,746 are available in account
C11065801.589000, ?Appian Way Retaining Wall.?
With these appropriations, funds for the Appian Way Retaining Wall and street lights
will be available in the following accounts:
C11065801.589000 ?Appian Way Retaining Wall? $104,746
C20065802.589000 ?Appian Way Retaining Wall? $428,000
C01015502.589000 ?New Street light Systems? $ 20,000
C31065802.589000 ?Appian Way Retaining Wall? $ 85,000
C31079202.589000 ?Moss Ave Pump Station? $300,990
Total Funds Available: $938,736
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Recommendations
Staff recommends that the City Council:
1. Relieve Caliagua, Inc., of their bid, due to a mistake;
2. Award a construction contract in the amount of $1,835,000 to KEC Engineering,
Inc., for the Moss Avenue Pumping Station Phase 3 and Appian Way Retaining
Wall project, plus $175,000 contingency;
3. Authorize the City Manager to negotiate and execute a Modification to
Agreement 7355 (CCS) with Harris and Company, in an amount not to exceed
$40,000 plus $6,000 contingency;
4. Authorize the City Manager to negotiate and execute a Modification to
Agreement 7476 (CCS) with Black and Veatch in an amount not to exceed
$264,404 plus $40,000 contingency;
5. Authorize the City Manager to negotiate and execute a Modification to
Agreement 7216 (CCS) with Montgomery Watson in an amount not to exceed
$129,203 plus $13,000 contingency;
6. Authorize the City Manager to negotiate and execute a Modification to
Agreement 7749 (w/o CCS) with Wheeler and Gray in an amount not to exceed
$9,500 plus $1,000 contingency;
7. Appropriate $85,000 from the Wastewater Fund to account C31065802.589000
for the sewer projects portion of the new street lighting;
8. Appropriate $300,990 from the Wastewater Fund to account
C31079202.589000 for Moss Avenue Pump Station?s portion of the Appian Way
Retaining Wall project;
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9. Appropriate $20,000 from the General Fund to account C01015502.589000 to
pay for Project New Hope?s portion of the Appian Way street lights;
10. Appropriate $428,000 to Account C20065802.589000 for the Appian Way
Retaining Wall project, to be offset by revenue account 20402.406410;
11. Increase the revenue budget in account 31661.400890, ?City of L.A. ? Sewer
Repair,? by $275,361;
12. Approve the use of funds outlined in the Budget/Financial Impact section of this
report; and
13. 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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