SR-502-002-04 (9)
EPWM: H:\Staff Reports in Process\10_11\Water Main.doc
Council Meeting: October 11, 2005 Santa Monica, California
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Construction Related Contracts for the Annual Water Main Replacement
Project
Introduction
This report recommends that the City Council award a construction contract to Majich
Brothers, Inc., the best bidder, in the amount of $3,546,895 plus a 10% contingency
amount of $354,689 for the construction of the Annual Water Main Replacement
Project. This report also recommends that the City Council authorize the City Manager
to negotiate and execute a construction management agreement with Black & Veatch in
an amount not to exceed $395,000 and a contingency amount of $45,000 for
construction management and inspection services of the Annual Water Main
Replacement Project.
Background
Each year, the City Council appropriates funds to the Water Main Replacement
Program. This program is based on a long-term replacement plan for water mains
based on age, condition and capacity demands. Coordination with other City projects is
considered in order to minimize impact to the public.
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Discussion
Construction Contract
A Notice Inviting Bids for the construction contract was published on July 7 and 9, 2005,
in The Los Angeles Times. Bid packages were sent to eleven public plan rooms.
Eighteen contractors requested bid packages and four sealed bids were received by the
City Clerk's office and publicly opened on August 2, 2005, by the Deputy City Clerk.
The bid results were as follows:
1. Majich Brothers, Inc. $3,546,895
2. Miramontes $3,611,150
3. Williams Supply $4,114,938
4. Blois Construction Co., Inc. $6,240,660
City Engineer's Estimate $2,750,000
The Majich Brothers, Inc., the best bidder, has successfully completed water main
replacement projects for the City of Santa Monica in 1999 and 2004, and similar
projects for the City of Newport Beach and City of Ventura. City staff contacted the
reference agencies. All respondents reported that the contractor's work was completed
in a timely and cost-efficient manner while maintaining consistent quality. Furthermore,
City staff contacted the Center for Contract Compliance and found the contractor is in
good standing and capable of handling labor compliance issues. City staff also verified
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with the State Contractors? License Board and found the contractor?s license is active
and in good standing.
Construction Management Agreement
In July 2005, the City requested proposals from qualified firms to provide construction
management and inspection services for the Annual Water Main Replacement Project.
Four firms submitted proposals. City staff reviewed the proposals and interviewed all
four firms. Following the interview, Black & Veatch was selected as the best team to
provide construction management services for the construction of water lines in various
streets and alleys in the City. These services include construction oversight and
continuous inspection of the contractor?s work during construction of the water lines,
geotechnical inspections, management of traffic control and detour plans, review of
change order requests, monitoring noise and vibration, conducting periodic progress
meetings, providing information to the contractor on an as-needed basis, and
maintaining all necessary project documentation relevant to the work conducted during
construction.
Black & Veatch?s past performance on several City projects including the Transit Mall,
various sewer projects, Santa Monica Urban Runoff Recycling Facility ? Phase III, and
Seismic Retrofit of Parking Structures 7 and 8 has been excellent.
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Budget/Financial Impact
Funds required for the construction contract:
Contract $3,546,895
Contingency (10%) $ 354,689
Total Required $3,901,584
Funds required for the construction management agreement:
Agreement $395,000
Contingency $45,000
Total Required $440,000
Grand Total Required $4,341,584
Funds in the amount of $4,341,584 are available in account C250136.589000, ?Water
Main Replacement.?
Recommendation
Staff recommends that the City Council:
1. Award a construction contract to Majich Brothers, Inc., the best bidder, in the
amount of $3,546,895 and a contingency amount of $354,689 for the Annual
Water Main Replacement Project;
2. Authorize the City Manager to negotiate and execute a construction management
agreement with Black & Veatch in an amount not to exceed $395,000 and a
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contingency amount of $45,000 for construction management and inspection
services of the Annual Water Main Replacement Project; 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 Management
Anthony Antich, P.E., City Engineer
Gil Borboa, P.E., Water Resources Manager
Susan Lowell, P.E., Water Resources Engineer
Dave Britton, P.E., Principal Civil Engineer
Bill Zein, P.E., Principal Civil Engineer
Eugenia Chusid, Civil Engineer Associate
Reference Contract No. 8515 (CCS) (Majich Brothers).
Reference Contract No. 8516 (CCS) (Balck & Veatch).
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