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SR-800-001-05 (2) EPWM:CP:AA:LF:VS : H:\Staff Reports In Process\5_10\cc1839construction.docCity Council: May 10, 2005 Santa Monica, California TO: Mayor and City Council FROM: City Staff SUBJECT: Construction Related Contracts for the Santa Monica Airport Park Project Introduction This report recommends that the City Council award a construction contract with Los Angeles Engineering, Inc. in the amount of $6,782,095 plus contingency in the amount of $678,210 (10%) for construction and authorize the City Manager to negotiate and execute a professional services agreement with Black & Veatch in an amount not to exceed $500,000 plus contingency in the amount of $50,000 (10%) for construction management services for the Santa Monica Airport Park Project. Council is also requested to appropriate $1,812,313 for the project. Background The Airport Park project encompasses approximately eight acres of land at the southeast corner the Santa Monica Municipal Airport on non-aviation designated land. The project was first envisioned in the Non-Aviation Land Use Feasibility Study, which was conceptually approved by the City Council in 1997 following a comprehensive community process. The proposed design includes two lighted youth soccer fields, a one acre off- leash dog area, a park restroom and storage building, an open green space, picnic areas, 1 two parking lots with a total of 116 parking spaces and a children?s playground. The project also includes streetscape improvements (landscaping, enhanced paving and lighting) on Airport Avenue from Centinela to Donald Douglas Loop South. Following a competitive selection process, the City Council awarded a contract to Calvin R. Abe Associates in June, 2000 for the design of Airport Park and the associated improvements along Airport Avenue. On October 14, 2003, the City Council certified the Final Environmental Impact Report and approved the design plans for Airport Park. Since approval of the design State grant funding in the amount of $1.5 million has been awarded for the installation of synthetic turf fields at Airport Park. On October 29, 2003 the Los Angeles County Airport Land Use Commission, found the Airport Park project to be consistent with the Los Angeles County Airport Land Use Plan. Discussion A Notice Inviting Bids for the construction of Airport Park was published in the Los Angeles Times on March 26 and 29, 2005. The bid package was sent to eleven public plan rooms. Fourteen contractors requested bid packages and the City Clerk?s office received two sealed bids, which were publicly opened and read aloud on April 18, 2005, by the Deputy City Clerk. The bid result was as follows: 2 CONTRACTOR AMOUNT L.A. Engineering, Inc. $6,782,095 Ford E.C., Inc. $7,350,000 The Architect?s estimate for the project was $6,705,000. The best bidder, L.A. Engineering, Inc., supplied the City with the names of previous similar projects. These projects included park and transit projects for the cities of Fontana, Irwindale, Los Angeles, and Ontario; Park construction for the Rancho Simi Recreation and Parks District, field construction for Laguna Beach Unified School District. L.A. Engineering, Inc. also completed the City of Santa Monica Pedestrian and Crosswalks Improvement project. City staff contacted the agencies and companies representing these projects and all respondents reported that the contractor's work quality was satisfactory and that work was completed in a timely and cost-efficient manner. Staff also contacted the Center for Contract Compliance and found, L.A. Engineering, Inc. in good standing and capable of handling labor compliance issues. The California Contractors State License Board verified that the contractor's license is active and in good standing. Prior to construction work, it will be necessary to remediate contaminated soil at the site. Staff will return to Council by July, 2005 to award a contract for this portion of the work . With the soil remediation, the total project cost will be $8,318,304. 3 Construction Management In February 2005, the City issued a Request for Qualifications for construction management services for the Airport Park project. Three firms submitted a Statement of Qualifications which were reviewed and on March 25, 2005 each of the companies was interviewed by a selection committee consisting of representatives from Community and Cultural Services and Civil Engineering and Architecture. Black & Veatch was selected as the most qualified to provide construction management services for the Airport Park Project. Black & Veatch has performed well on several large City of Santa Monica projects including the Transit Mall, the Beach Improvement Group, Douglas Park, Three Playgrounds at Clover, Marine and Ozone Parks, Parking Structure #8 Seismic Retrofit, Parking Structure #7 Seismic Retrofit and Virginia Avenue Park Expansion. CEQA Status An Environmental Impact Report (EIR) was prepared for the Airport Park Project and was certified by the City Council on October 14, 2003 along with a Statement of Overriding Considerations and Mitigation Monitoring Program. Since certification of the EIR, there have been no substantial changes to the project, no substantial changes with respect to the circumstances under which the project is being undertaken, and no new information of substantial importance regarding the project which would warrant additional environmental analysis or further documentation as set forth in CEQA Guidelines Section 15162. 4 Budget/Financial Impact Funding for Airport Park has been budgeted in the City?s Capital Improvement Program over the last several years. As a result of a general rise in construction costs, soils remediation and contracted construction management, additional funds must be appropriated for the project. An appropriation of $1,812,313 is therefore requested from the General Fund fund balance to Account C010666.58900. Funds Required: Contract $6,782,095 Construction Management $ 500,000 Contingency (10%) $ 728,210 Total Required $8,010,305 Following appropriation, funds are available in the following accounts: C010666.589000 ?Airport Park ? $6,782,304 C200666.589000 ?Airport Park? $1,500,000 C330815.589000 ?Airport Ave. Utility Infrastructure? $ 36,000 Total Available: $8,318,304 Ongoing Costs Upon Project Completion This project will also result in ongoing, operating costs to the General Fund in the estimated amount of $300,000, which will be included in future year budgets. Recommendation Staff recommends that City Council: 5 1. Appropriate $1,812,313 for the Airport Park project and approve the budget changes identified above; 2. Award a construction contract with L.A. Engineering, Inc. in the amount of $6,782,095 plus a contingency of $678,210 (10%) for construction of the Airport Park Project; 3. Authorize the City Manager to negotiate and execute professional services agreement with Black & Veatch in an amount not to exceed $500,000 plus a contingency of $50,000 (10%) for construction management of the Airport Park Project; and 4. 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 Management Karen Ginsberg, Assistant Director, Community and Cultural Services Anthony Antich, P.E., City Engineer Lauren Friedman, City Architect Allan Sheth, Civil Engineering Associate Voneelya Simmons, Associate Project Manager Reference Contract No. 8470 (CCS) (L.A. Engineering). Reference Contract No. 8471 (CCS) (Black & Veatch). 6