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SR-506-003-01 (36) EPWM: CP: AA: DB: AS F:\DATA\SPFILES\SP1889\CC1889.doc Council Meeting: March 26, 2002 Santa Monica, California TO: Mayor and City Council FROM: City Staff SUBJECT: Construction Related Contracts for the Federal Street Improvement Project - Phase III Introduction This report recommends that the City Council authorize the City Manager to negotiate and execute a contract for the construction of the Federal Street Improvement Project - Phase III withSilvia Construction, Inc., the best bidder, in the amount of $248,929 and approve a contingency amount of $21,071; authorize the City Manager to negotiate and execute a construction management contract for the project with CALTROP in the amount of $38,000 and approve a contingency amount of $5,000. The location of the project is Stanford Street from Wilshire Boulevard to Montana Avenue. Background Each year, the City Council authorizes the implementation of a program of street improvements including resurfacing, slurry sealing, repairs to sidewalks, curbs and gutters, and new curb ramps and bus pads. Through federal legislation, aid is provided 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 Monica, Stanford Street from Wilshire Boulevard to Montana Avenue qualifies for these funds, which also requires that 1 federal contracting procedures be followed. For this reason, this project was bid separately from the City?s annual street resurfacing project. The total federal fund participation on this project, including contingency is, $230,178. The local match amount is $82,822. Discussion A Notice Inviting Bids for the construction contract was published on December 22 and 28, 2001 in The Los Angeles Times, California Section and on December 19, 2001 in the F. W. Dodge newsletter. The bid package was sent to eleven public plan rooms including five women/minority business enterprise associations. Nine contractors requested the bid package and the City Clerk's office received five sealed bids, which were publicly opened and read aloud on January 22, 2002 by the Deputy City Clerk. The bid results were as follows: 1. Silvia Construction, Inc. $248,929 2. Sully-Miller Contracting Co. $263,335 3. Damon Construction Co. $267,370 4. Palp, Inc. dba Excel Paving Company $267,560 5. Sequel Contractors, Inc. $318,227 City Engineer's Estimate $225,000 2 The best bidder, Silvia Construction, Inc. supplied the City with a list of similar projects including street improvement projects for the cities of Fontana, Ontario, Lakewood, Rosemead and San Fernando; and the FY1997-1998 street improvement project for the City of Santa Monica. Staff contacted the agency representatives for these projects, and they all reported that the contractor's work quality was good and that work was completed in a timely and cost efficient manner. Staff also contacted the Center for Contract Compliance and found Silvia Construction, Inc. in good standing and capable of handling labor compliance issues. The State Contractor?s License Board verified that the Contractor's license is active and in good standing. To be eligible for federal funding, the selected contractor must meet the 11% Disadvantaged Business Enterprise (DBE) goal established for this project. In their bid, Silvia Construction, Inc. committed to meeting the established DBE goal. Construction Management The City issued a Request for Qualifications (RFQ) for construction management services of various City projects on October 15, 2001. The work includes oversight and continuous inspection of the contractor?s work during construction to ensure that the contractor conforms with plans and specifications, DBE and Davis-Bacon labor compliance requirements, monitoring traffic control and detour plans, reviewing change order requests, and providing information to the contractor on an as-needed basis. 3 The City received statements of qualifications from five qualified firms. Three of the firms submitted proposals for this project. A review panel of Engineering Division staff reviewed the proposals and selected CALTROP to provide construction management services for the project. The selection criteria included previous experience with similar projects, qualifications of staff, ability to meet tight time schedules and cost of services. CALTROP?s past performance on similar projects completed for other agencies has been excellent. In addition, they are currently working for the City and providing excellent service. Budget/Financial Impact CONSTRUCTION FUNDS REQUIRED Contract.......................................................................$248,929 Contingency.................................................................$ 21,071 Total Construction Funds Required.............................$270,000 CONSTRUCTION MANAGEMENT FUNDS REQUIRED Contract Amount..........................................................$ 38,000 Contingency.................................................................$ 5,000 Total Construction Management Funds Required................$ 43,000 TOTAL FUNDS REQUIRED.............................................................$313,000 4 Grant funds in the amount of $230,178 are available for appropriation to account C20079302.589000, ?STPL Grant Street Resurfacing.? Following completion of the project, these funds will be offset by revenue recorded to account 20402.403140. The remaining funds for the local match in the amount of $82,822 for the project are available in account C01015202.589000, ?Annual Street/Park Parking Lot Resurfacing and Sidewalk Repairs.? Recommendation Staff recommends that the City Council: 1. Authorize the City Manager to negotiate and execute Contract for the Federal Street Improvement Project - Phase III with Silvia Construction, Inc., the best bidder, in the amount of $248,929 and approve a contingency amount of $21,071; 2. Authorize the City Manager to negotiate and execute a professional services contract for construction management with CALTROP in the amount of $38,000 and approve a contingency amount of $5,000; 3. Appropriate $230,178 to account C20079302.589000, ?STPL Grant Street Resurfacing? and increase the revenue budget at account #20402.403140 by the same amount; and 4. Authorize the City Engineer to issue any necessary change orders to complete additional work in conformance with the Administrative Instructions on change orders. 5 Prepared by: Craig Perkins, Director of Environmental and Public Works Management Anthony Antich, P.E., City Engineer Renee Cowhig, Maintenance Manager Dave Britton, P.E., Senior Civil Engineer Antonio Shaibani, P.E., Civil Engineer Associate 6