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SR-505-008 (14) EPWM: \Share\STAFF REPORTS\FY 05-06\10_25\Centinela.doc Council Meeting: October 25, 2005 Santa Monica, California TO: Mayor and City Council FROM: City Staff SUBJECT: Construction Related Contracts for the Centinela Avenue Urban Runoff Mitigation Project Introduction This report recommends that the City Council award a construction contract to Blios Construction, Inc., the best bidder, in the amount of $1,199,000 plus a 10% contingency amount of $119,900 to construct a treatment facility for the Centinela Avenue Urban Runoff Mitigation Project. This report also recommends that the City Council authorize the City Manager to negotiate and execute a construction management agreement with DMR Team in an amount not to exceed $135,000 plus a 10% contingency amount of $13,500 for the project. Background The City received grants from the California Integrated Waste Management Board and Proposition 12 in fiscal year 2001 and Proposition 13 in fiscal year 2004 to implement an urban runoff pollution mitigation system for dry weather flows from the Centinela Basin Watershed entering nearby Ballona Creek, the receiving water body for the City?s eastern border which outlets to the Santa Monica Bay. Both bodies of water have degraded water 1 quality and are included on a national list of impaired water bodies that should be remediated. In fiscal year 2003, the City contracted with Black & Veatch Corporation to design a pollution mitigation device on the existing Centinela Avenue storm drain system and examine alternative sites which would best meet the project?s objective of improving water quality. The consultant concluded that two potential sites for the project existed: one along Virginia Avenue north of the Santa Monica Freeway in the City of Santa Monica, and another in Mar Vista Park in the City of Los Angeles. City staff evaluated benefits and drawbacks for the treatment system in each location and concluded that the Mar Vista Park site was the preferred site as it offered open space for construction, easy access for operation and maintenance, few if any utilities conflicts, an adequate level of runoff flow for year-round treatment, and close proximity to the open Sepulveda Channel for flood relief. The City entered an inter-agency agreement with the City of Los Angeles Parks & Recreation and Watershed Protection Divisions, and the County of Los Angeles Watershed Management Division to obtain approval to use the Mar Vista Park site for this project that benefits the entire region. The City of Los Angeles has agreed to grant Santa Monica an easement for the installation and maintenance of the urban runoff mitigation system on City of Los Angeles-owned property. 2 Discussion Construction Contract A Notice Inviting Bids for the construction contract was published on July 9 and 15, 2005, in The Los Angeles Times. Twenty-two contractors requested bid packages and seven sealed bids were received by the City Clerk's office and publicly opened on August 24, 2005, by the Deputy City Clerk. The bid results were as follows: G.B. Cook, Inc. $ 1,020,592 Blios Construction, Inc. $ 1,199,000 Los Angeles Engineering, Inc. $ 1,281,990 SDR Engineering, Inc. $ 1,297,648 Clarke Contracting Corporation $ 1,367,296 Garcia Juarez Construction, Inc. $ 1,490,570 Southwest Engineering, Inc. $ 1,539,508 City Engineer's Estimate $ 1,200,000 G.B. Cook, Inc., submitted a letter to the City requesting that their bid be withdrawn because of a mathematical error. The City Attorney?s office reviewed the letter and 3 concurred. Blios Construction, Inc., the best bidder, provided the City with six references. City staff contacted the references and they all reported that the contractor's work was completed in a timely and cost-efficient manner while maintaining consistent quality. The contractor is currently working for the City of Santa Clarita at Stetson Ranch Sand Canyon on a $3 million storm filtration installation project. Other projects successfully completed of similar scope and scale include: two storm water treatment units for the City of Santa Clarita; the Yucca Street storm drain for the City of Oxnard; a 48 inch storm drain for the County of Ventura; and the Magic Mountain pipeline for the Castaic Lake Water District . The State Contractors' License Board verified that the contractor's license is current, active, and in good standing. City staff also contacted the Center for Contract Compliance and found the contractor is in good standing and capable of handling labor compliance issues. Construction Management Agreement In July 2005, the City requested proposals from qualified firms to provide construction management services for the Centinela Avenue Urban Runoff Mitigation Project. Four firms submitted proposals. City staff reviewed the proposals and interviewed all four firms. Following the interviews, DMR Team was selected as the top ranked firm to provide 4 construction management services for the construction of this project. These services include construction oversight and continuous inspection of the contractor?s work during construction of storm drain lines; managing traffic control and detour plans; reviewing submittals and change order requests; 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. DMR Team?s past performance on several City projects including the Pico Boulevard Streetscape, Federally Funded Street Improvement ? Phase IV, Fourth Street Traffic Modification, and the Annual Water Main Replacement has been excellent. Budget/Financial Impact Approximately 90% of the project cost is funded by the California Integrated Waste Management Board, Proposition 12 and Proposition 13 grants. The balance is funded by the storm water account. Construction Funds Required: Construction Contract $1,199,000 Contingency (10%) $ 119,900 Total Construction Funds Required $1,318,900 Construction Management Funds Required: Construction Management Agreement $135,000 Contingency (10%) $13,500 5 Total Construction Management Funds Required $148,500 TOTAL FUNDS REQUIRED $1,467,400 Funds in the amount of $ 1,467,400 are available in the following accounts: C200696.589000, ?Prop 13 ? Centinela Basin BMP? $698,830 C200796.589000, ?BMP Pollution Control Grant? $405,100 C200797.589000, ?Centinela BMP Grant ? CIWMB? $316,000 C340588.589000, ?Stormwater Systems Improvement? $47,470 TOTAL FUNDS AVAILABLE $1,467,400 Recommendation Staff recommends that the City Council: (Reference Contract No. 8519 (CCS)) 1. Award a construction contract to Blios Construction, Inc., the best bidder, in the amount $1,199,000 plus a 10% contingency amount of $119,900 for the Centinela Avenue Urban Runoff Mitigation Project; and 2. Authorize the City Manager to negotiate and execute a construction management (Reference Contract No. 8520 (CCS)) agreement with DMR Team in an amount not to exceed $135,000 plus a 10% contingency amount of $13,500 for construction management services of the Centinela Urban Runoff Mitigation Project; and 3. Authorize the City Engineer to issue any necessary change orders to complete additional work within budget authority. 6 Prepared by: Craig Perkins, Director of Environmental and Public Works Management Anthony Antich, P.E., City Engineer Brian Johnson, Environmental Programs Manager Neal Shapiro, Sr. Administrative Analyst ? EPWM Urban Runoff Dave Britton, P.E., Principal Civil Engineer James Creager P.E., Civil Engineer 7