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SR-505-001-04 (12) EPWM: CC: AA: JS: EC; F:/SPFILES/Sp1805/Staff Reports/CC1805.doc City Council Meeting: December 10, 2002 Santa Monica, California TO: Mayor and City Council FROM: City Staff SUBJECT:Award of a Construction Contract to Miramontes Construction Co., Inc. and a Construction Management Contract to Tetra Tech, Inc. for Sewer Project 12 Introduction This report recommends that the City Council award a contract to the best bidder, Miramontes Construction Co., Inc., in the amount of $7,383,440 plus a $1,476,700 contingency, for sewer Project 12 ? Repair of Earthquake-Damaged Sanitary Sewer Mains thth in the area bounded by Pico Blvd., 34 Street, South City Limits, and 4 Street. This report also recommends that the City Council award a contract to Tetra Tech, Inc., in the amount of $1,442,811 plus a $216,422 contingency for construction management and inspection services. The project is funded by Federal Emergency Management Agency (FEMA), Wastewater, and Assembly Bill 1600 funds. 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 requested that the Federal Emergency Management Agency FEMA and the State?s Office of Emergency Services approve funds for repair work. The City subsequently accepted a Grant Acceleration Program offer from FEMA in the amount of $78 million for repair of earthquake-damaged sewers throughout the City. 1 Discussion Construction Project 12 includes the removal of the existing sewer mains at Lincoln Blvd., between Pico th blvd. and South City limits; Ozone Street, between Lincoln Blvd. And 6 Street; Ocean ththth Park Blvd., between 25 Street and 34 Street; 5 Street between Bay Street and Ocean th Park Blvd.; 7 street and Beverly Avenue, between Kensington Street and Ocean Park Blvd. and replacing them with sewer mains of larger diameter, plus replacing and relining existing maintenance holes. A Notice Inviting Bids for construction of sewer Project 12 was published in the Los Angeles Times on October 3 and 5, 2002. The Notice Inviting Bids plus plans and specifications were also sent to six construction journals and five women/minority business associations. Bid packages were requested by 23 contractors, as well as some subcontractors and supply companies. The City Clerk?s Office received four sealed bids, which were publicly opened on October 23, 2002, by the Deputy City Clerk. The bid results were as follows: CONTRACTOR AMOUNT Miramontes Construction Co., Inc. $7,383,440 Steve Bubalo Construction $8,980,578 Mladen Buntich $11,308,832 Clarke Construction, Inc. $11,446,610 The Engineer?s estimate for the project was $6,850,000. 2 The best bidder, Miramontes Construction Co., Inc., provided the City with seven references for similar projects within Los Angeles County. All references reported that Miramontes Construction Co., Inc. work was satisfactory. The State Contractors? License Board verified that the Contractor's license is current and in good standing. All references for subcontractors listed in bid documents reported satisfactory work and all licensees were active and in good standing. Because of the potential difficulties associated with working in heavily traveled sections of Lincoln Blvd., and the possible existence of old, unmapped utilities in the public right of way, a contingency of 20% of the contract amount is considered necessary. Construction Management Construction management of the project involves extensive coordination with other projects in the area. Tetra Tech, Inc. was selected through a competitive process to provide construction management for a variety of projects, including this project. Request for Proposals were sent to five construction management firms, inviting them to submit their proposals for construction management and inspection services. The City received four proposals. Tetra Tech, Inc., is considered the most suitable for this project based on current workload projections, available staff, and the quality of past services to the City. Tetra Tech, Inc. has supplied the City with references from the Cities of Burbank, Camarillo, Compton, Oceanside, San Diego, and West Hollywood. All project representatives reported that the Consultant?s work was excellent. Additionally, Tetra Tech, Inc. has provided highly satisfactory services to the City on several similar Sanitary 3 Projects, Project 8, and Project 9. The firm is currently providing construction management services on Project 11. They continue 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. Services required during construction of the project, including review of requests for design information, design services for unforeseen field conditions, shop drawings and submittal reviews and the preparation of as-built drawings. The contract award amount is $1,442,811 plus a $216,422 contingency. This 15% contingency is considered necessary because of the potential difficulties and time delays associated with working in heavily traveled sections of Lincoln Blvd. Budget/Financial Impact FUNDS REQUIRED: Construction Contract $7,383,440 Contingency $1,476,700 Construction Management $1,442,811 Contingency $216,422 Total Funds Required: $10,519,373 Funds are available in the following accounts: FEMA Funds: E13312000.555010 ?Sewer Project 12? $9,064,226 AB 1600 Funds: 4 E31312006.589000 ?Sewer Project 12? $1,381,936 Amount Available: $10,446,162 The remaining $73,211 required for construction costs are available for appropriation from the Wastewater Fund to account C31091303.589000, ?Sewer Project 12 ? Non-FEMA.? Recommendation 1. Award a construction contract in the amount of $7,383,440 to Miramontes Construction Co., Inc., for Project 12 ? Repair of Earthquake-Damaged Sanitary th Sewer Mains in the area bounded by Pico Blvd., 34 Street, South City Limits, th and 4 Street plus a $1,476,700 contingency; 2. Award a construction management services contract in the amount of $1,442,811 plus a $216,422 contingency; 3. Appropriate $73,211 from the Wastewater Fund to account C31091303.589000, ?Sewer Project 12 ? Non-FEMA?; 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 Antich, P.E., City Engineer Jack Schroeder, P.E., Disaster Recovery Program Manager Eugenia Chusid., Civil Engineer Associate 5