SR-502-002-04 (7)
EPWM: CC:AA:RDB:JC; F:\DATA\SPFILES\SP1884\CC1884(DP).DOC
City Council Meeting: August 12, 2003 Santa Monica, California
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TO: Mayor and City Council
FROM: City Staff
SUBJECT: Construction Related Contracts for the FY2002-FY2003 Water Main
Replacement Project
Introduction
This report recommends that the City Council award a contract to P&J Utility Company,
the best bidder, in the amount of $1,516,154 for construction of the FY 2002-FY2003
Water Main Replacement Project and approve $228,846 in contingency funds for this
contract. This report also recommends the City Council authorize the City Manager to
negotiate and execute a professional services agreement with Black & Veatch in an
amount not to exceed $170,000 for construction management services for the project
and approve $25,500 in contingency funds. Each contract will be paid for from the
Water Fund.
Background
Each year, the City Council appropriates funds to the Water Main Replacement
Program. This program replaces water mains based on age, corrosion and capacity
demands. Staff also considers coordination with other City projects, such as street
resurfacing and sewer projects, in order to minimize impacts to the public.
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Discussion
A Notice Inviting Bids for the construction contract was published on May 8 and 10,
2003 in The Los Angeles Times, California Section and the F. W. Dodge newsletter.
Bid packages were requested by eighteen contractors and the City Clerk's office
received eight sealed bids, which were publicly opened on June 4, 2003 by the Deputy
City Clerk.
The bid results were as follows:
1. P&J Utility $1,516,154
2. Cedro Construction, Inc. $1,747,088
3. Majich Bros., Inc. $1,748,551
4. Williams Supply $1,818,731
5. Spiniello Companies $1,852,466
6. W.A. Rasic $1,878,621
7. Valverde $1,911,118
8. Miramontes $2,416,254
City Engineer's Estimate $1,700,000
The best bidder P&J Utility Company supplied the City with the names of previous
similar projects including water main replacement projects for the Cities of San
Francisco and Beverly Hills. In addition, they have successfully completed water main
replacement projects for the City of Santa Monica in 1995 and 1997.
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City staff contacted the Agencies representing these projects and all respondents
reported that the contractor's work quality was very good and that work was completed
in a timely and cost efficient manner. Staff also contacted the Center for Contract
Compliance and found P&J Utility Company in good standing and capable of handling
labor compliance issues. The California Contractor?s State License Board verified that
the Contractor's license is active and in good standing.
Construction Management
A Request for Qualifications for construction management services was issued on May
22, 2003 to pre-qualify firms to provide construction management services to the City of
Santa Monica. A panel that included representatives from the Environmental and Public
Works Management Department?s Civil Engineering and Architecture and Utilities
Divisions interviewed four firms from the pre-qualified list. Cost proposals were
solicited from all of the pre-qualified firms. Staff recommends Black & Veatch to provide
construction management services for this project. Black & Veatch is currently
contracted to manage the City?s Sewer Replacement Projects, SMURRF phase III
Recycled Water Main Project and the Virginia Park Expansion Project for the City of
Santa Monica.
Budget/Financial Impact
FUNDS REQUIRED FOR THE CONSTRUCTION CONTRACT
Construction Contract $1,516,154
Contingency (15%) $ 228,846
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Total Required $1,745,000
FUNDS REQUIRED FOR THE CONSTRUCTION MANAGEMENT AGREEMENT
Construction Management Agreement $ 170,000
Contingency $ 25,500
Total Required $ 195,500
TOTAL FUNDS REQUIRED $1,940,500
FUNDS ARE AVAILABLE IN THE FOLLOWING ACCOUNTS:
C25013602.589000 "Water Main Replacement" $1,404,027
C25013603.589000 "Water Main Replacement" $ 536,473
Total Available: $1,940,500
Recommendation
Staff recommends that the City Council:
1. Award a contract to P&J Utility Company, the best bidder, in the amount of
$1,516,154 for construction of the FY 2002 - FY 2003 Water Main Replacement
Project and approve $228,846 in contingency funds for this contract;
2. Authorize the City Manager to negotiate and execute a professional services
agreement with the firm of Black & Veatch. in an amount not to exceed $170,000 for
construction management services for the project and approve $25,500 in
contingency funds for this contract; and
3. Authorize the City Engineer to issue any necessary change orders to complete
additional work within budget authority.
Prepared by: Craig Perkins, Director, Environmental and Public Works Mgmt. Dept.
Anthony Antich, P.E., City Engineer and Architecture Manager
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Gil Borboa, P.E., Utilities Manager
Dave Britton, P.E., Principal Civil Engineer
James Creager, P.E., Civil Engineer
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