SR-502-002-03 (4)
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Council Meeting: January 22, 2002 Santa Monica, California
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Award of Contract for the Riviera Reservoir Rehabilitation Project
Introduction
This report recommends that the City Council award a construction contract to Spiess
Construction Co., Inc., the best bidder, in the amount of $877,750 for the construction of
the Riviera Reservoir Rehabilitation Project and approve $87,775 in contingency funds for
this contract. This report also recommends that $128,599 be appropriated from the Water
Fund for this project.
Background
The Riviera Reservoir is one of four reservoirs owned and operated by the City of Santa
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Monica. Its capacity is twenty-five million gallons and accounts for over half of the City?s
total water distribution storage capacity. Due to the MTBE contamination of the City?s
ground water supply, water quality problems in Riviera Reservoir arose due to the
increased dependence on imported water. Because the supplier of imported water uses a
different disinfection method than commonly used by the city, poor circulation of water in
the reservoir resulted in water quality deterioration. All costs incurred in addressing this
challenge will be included in the cost recovery efforts in the City?s current litigation against
the responsible parties.
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Discussion
The Riviera Reservoir Rehabilitation Project is intended to improve the movement of water
and air circulation within the reservoir and improve water quality. Planned improvements
include construction of an inlet and outlet manifold system, valve replacement, addition of
an air vent, installation of a recirculation pump, construction of a new wash down system,
and installation of new handrails and grating.
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The Notice Inviting Bids was published in the California section of The Los Angeles Times
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on November 24 and 29, 2001. Bid packages were requested by 13 contractors. The
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Newspaper
City Clerk?s office received three sealed bids, which were publicly opened and read aloud
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Bid documents were sent to
11 women/minority business enterprise
(WMBE) associations.
on December 17, 2001 by the deputy City Clerk. The Bid results were as follows:
Contractor Total Bid
MERCO Construction Engineers, Inc. $ 725,125
Spiess Construction Co., Inc. $ 877,750
ALFA 26 Construction Company $1,126,000
City Engineer?s Estimate $ 725,000
Section 2. 24.072 of the Santa Monica Municipal Code sets forth the criteria under
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which staff may determine the Best Bidder as:
(1) Price;
(2) The quality of the material or services offered;
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(3) The ability, capacity and skill of the bidder to perform or provide the
material or services;
(4) The capacity of the bidder to perform the contract or provide the service
promptly, within the time specified, and without delay or interference;
(5) The sufficiency of the bidder's financial resources;
(6) The character, integrity, reputation, judgment, training, experience and
efficiency of the bidder;
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(7) The ability of the bidder to provide such future maintenance or service as
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may be needed;
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(8) Any other factor which will further the intent set forth in Section 608 of the
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City Charter.
The City has discretion in determining the applicability and weight or relative weight of
some or all of the criteria listed above and is not required to select the lowest monetary
bidder.
The City checked references provided by MERCO Construction Engineers, Inc., for
projects with a similar scope and size. Contacts reported concerns about work quality,
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timeliness, and efficiency. Therefore, staff recommends that the contract be awarded
As a result of
considerable investigation
and analysis, staff has
verified the findings of the
to Spiess Construction Co., Inc., the best bidder.
1999 reference checking on
MERCO Construction Engineers
Inc., and has determined
that Spiess Construction
Co., Inc., qualifies as the
best bidder for the Riviera
Spiess Construction Co., Inc., supplied the City with the names of previous projects of a
Reservoir Rehabilitation
Project. The reasons for
selecting Spiess
similar nature built by their firm. These projects included La Costa Reservoir for the
Construction Co., Inc., are
as follows:
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County of Los Angeles, Penitencia Water Treatment Plant for the Santa Clara Valley
Water District, Seismic Hardening for water storage tanks for the City of Simi Valley and
Vernal Avenue Tank Project for Marin Municipal Water District. All contacts reported that
the quality of their work was excellent, on schedule, conducted in a timely and cost
efficient manner within budget and with minimum change orders. The California State
Contractors License Board verified that the license is current, active, and in good standing.
Staff also contacted the Center for Contract Compliance and found Spiess Construction
Co., Inc., capable of handling labor compliance issues.
Budget/Financial Impact
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FUNDS REQUIRED:
Construction Contract: $877,750
Contingency: $ 87,775
Total Required $965,525
FUNDS AVAILABLE
Funds in the amount of $128,599 are available to appropriate from the Water Fund to
account C25085000.589000. With this appropriation, funds in the amount of $965,525 will
be available in account C25085000.589000, ?Riviera Reservoir Modification.?
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Recommendation
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Staff recommends that the City Council:
1. Appropriate $128,599 from the Water Fund to account C25085002.58900, ?Riviera
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Reservoir Modifications;?
2. Award a contract for the construction of the Riviera Reservoir Rehabilitation Project
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to Spiess Construction Co., Inc., the best bidder, in the amount of $877,750 and
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approve $87,775 in contingency funds for this contract; and
3. Authorize the City Engineer to issue any necessary change orders to complete
additional work in conformance with the Administrative Instruction on change orders
and within budget authority.
Prepared by: Craig Perkins, Director of Environmental and Public Works Management
Anthony Antich, P.E., City Engineer
Gilbert Borboa Jr., P.E., Utilities Engineer
Dave Britton., P.E., Utilities Engineer
Charmaine Yambao, P.E., Utilities Engineer
Bob Harvey, Water Production Treatment Superintendent
Spiros A. Lazaris, P.E., Project Manager
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