SR-505-001-04 (11)
EPWM: CC: AA: JS: SL; F:/SPFILES/Sp1765/Staff Reports/CC1765-3.doc
City Council Meeting: November 12, 2002 Santa Monica, California
TO: Mayor and City Council
FROM: City Staff
SUBJECT:Award of Construction Contract to BRH Garver-West Inc. and Modifications
to Agreements with Black and Veatch; Harris and Company; and
Montgomery Watson Harza for the Ocean and Main Street Sewer
Rehabilitation Project
Introduction
This report recommends that the City Council award a contract to the best bidder, BRH
Garver-West, Inc., in the amount of $4,498,360 plus $900,000 contingency, for the Ocean
Avenue and Main Street Sewer Rehabilitation and Main Street Roadway Restoration
project; approve project mitigation funding in the amount of $250,000; approve a
Modification to Agreement Number 7355 (CCS) with Harris and Company, in the amount of
$110,000 plus $15,000 contingency for community outreach services; approve a
Modification to Agreement Number 7476 (CCS) with Black & Veatch, Inc. in the amount of
$783,703 plus $120,000 contingency for construction management services and approve a
Modification to Agreement Number 7216 (CCS) with Montgomery Watson Harza in the
amount of $277,990 plus $35,000 contingency for Engineer of Record services during
construction.
Background
After the Northridge Earthquake of January 17, 1994, the City initiated a citywide
inspection program of the sewer system to identify the locations that were damaged and
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requested that the Federal Emergency Management Agency (FEMA) and the State?s
Office of Emergency Services (OES) approve funds for repair work. The City
subsequently accepted a Grant Acceleration Program (GAP) offer from FEMA in the
amount of $78 million for the repair of the earthquake damaged sewer system
throughout the City.
Discussion
Construction
The Ocean Avenue and Main Street Sewer Rehabilitation and Main Street Roadway
Restoration project includes the lining of portions of the 30-inch through 39-inch diameter
mains, the rehabilitation of maintenance structures in Colorado Avenue, Ocean Avenue,
Pico Boulevard and Main Street plus the repaving of Main Street from Pico Boulevard to
the southerly City limit.
A Notice Inviting Bids for the construction of the Ocean Avenue and Main Street Sewer
Rehabilitation and Main Street Roadway Restoration project was published in the Los
Angeles Times on August 15 and August 16, 2002. The Notice Inviting Bids and plans and
specifications, were also sent to six construction journals and five women/minority
business (WMBE) associations. Bid packages were requested by 18 contractors. The
City Clerk?s Office received four (4) sealed bids, which were publicly opened and read
aloud on September 16, 2002, by the Deputy City Clerk. The bid results were as follows:
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CONTRACTOR AMOUNT
BRH Garver-West, Inc. $4,374,186
Colich Construction, Inc., $5,653,424
Modern Continental Construction, Inc. $5,847,587
KEC Engineering $5,942,555
The Engineer?s estimate for the project was $4,000,000.
On September 25, 2002, staff received a letter from the lowest monetary bidder, BRH
Garver-West, Inc., stating that a mistake was made in the bid. Staff met with management
representatives of BRH Garver-West, Inc., examined the bid and confirmed that a mistake
was made. A sub-contractor had omitted a portion of the work from its bid resulting in an
invalid bid item. The correction has been made, the bid is valid and all work will be done
in a timely manner. The correct contract amount is $4,498,360. City staff conferred with
the City Attorney?s Office and determined that the mistake is a minor irregularity.
BRH Garver-West, Inc., has successfully completed sewer and storm drain projects for the
City of Houston, Texas; the City of Santa Monica; the City of Manteca and the City of San
Diego. All references were excellent and BRH Garver-West, Inc.?s license is current and
in good standing.
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Community Impacts
The construction is to take place from January 6, 2003 to May 23, 2003. Measures will be
implemented intended to lessen the impacts of the sewer construction projects on Main
Street merchants and residents, including the full-width paving of Main Street from Pico
Boulevard to the southerly City limit. The project also includes a contribution of $250,000
to a Main Street Public Works Fund for future improvements in the area.
Also, the City will continue to utilize the services of a public outreach consultant, Harris
and Company, to advise the public of construction schedules and issues. This will be
done in a variety of ways, including continued publication of the Cone Zone newsletter;
written notification and personal contact with affected residents and businesses; electronic
information boards for commuters; and, announcements in locally published newspapers.
A 24-hour hotline will remain in service, allowing the public to inquire about the project and
express their concerns about various project elements. Harris and Company was selected
through a competitive process to provide community outreach for a number of projects,
including this one. The contract amendment amount is $110,000 plus $15,000
contingency.
Construction Management
Construction management of the project involves extensive coordination between phased,
complex construction on highly visible sites. Black and Veatch Corporation was selected
through a competitive process to provide construction management for a variety of
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projects, including this project. They have successfully provided construction management
services on the Moss Avenue Pumping Station, Pacific Coast Highway Sewer
Replacement Phases 1A, 1B and 2, the Appian Way sewer construction project, the Beach
Improvement Group project, the Transit Mall project and the SMURRF project. The firm is
currently providing construction management services on the seismic retrofit of Parking
Structure 8. They have continued to provide excellent service to the City and its residents.
Their familiarity with the City, participation in its community outreach program and direct
involvement with other City construction projects, offer the City an integrated approach to
construction management. The contract amendment amount is $783,703 plus $120,000
contingency.
Engineer of Record Services
Montgomery Watson Harza is the project designer. They were selected through a
competitive process to provide design services for a number of projects. 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. The contract amendment is $277,990 plus $35,000 contingency.
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Budget/Financial Impact
FUNDS REQUIRED:
Construction Contract $4,498,360
Construction Contract Contingency $900,000
Harris & Company Contract 7355 (CCS) $110,000
Contract 7355 (CCS) Contingency $15,000
Black & Veatch Contract 7476 (CCS) $783,703
Contract 7476 (CCS) Contingency $120,000
Montgomery Watson Contract 7216 (CCS) $277,990
Contract 7216 (CCS) Contingency $35,000
Main Street Public Works Fund $250,000
Total Funds Required : $6,990,053
Funds are available in the following accounts:
FEMA Funds:
E1334M000.555010 ?Sewer Project 4 ? Main? $4,266,952
AB 1600 Funds:
E3134M006.589000 ?Sewer Project 4 ? Main? $ 147,972
Amount Available: $4,414,924
The remaining amount required for construction costs are available for appropriation from
the Wastewater Fund as follows:
Account Name Amount
C31094003.589000 ?Sewer Project 4 ? Main ? Roadway? $ 878,696
C31094299.589000 ?Sewer Project 4 ? Main Non-FEMA? $1,446,433
Amount Available: $2,325,129
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An amount of $250,000 is available for appropriation from the Wastewater Fund to account
C31084203.589000, ?Main Street Public Works Fund,? for future mitigation projects.
Recommendation
Staff recommends that the City Council:
1. Award a construction contract in the amount of $4,498,360 to BRH Garver-
West, Inc., for the Ocean Avenue and Main Street Sewer Rehabilitation and
Main Street Roadway Restoration project plus $900,000 contingency;
2. Appropriate $2,575,129 from the Wastewater Fund for this project as described
in the Budget/Financial Impact section;
3. Negotiate and execute a Modification to Agreement 7355 (CCS) with Harris and
Company, in an amount not to exceed $110,000 plus $15,000 contingency;
4. Negotiate and execute a Modification to Agreement 7476 (CCS) with Black and
Veatch in an amount not to exceed $783,703 plus $120,000 contingency;
5. Negotiate and execute a Modification to Agreement 7216 (CCS) with
Montgomery Watson Harza in an amount not to exceed $277,990 plus $35,000
contingency;
6. 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
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Anthony Antich, P.E., City Engineer
Jack Schroeder, P.E., Disaster Recovery Program Manager
Susan Lowell, P.E., Civil Engineer
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