SR-506-003-01 (46)~_ ^ f
C~ty Counc~l Report
~ City of
Santa Monica~
City Council Meeting: September 12, 2006
Agenda Item: I ' ~
To: Mayor and City Council
From: Craig Perkins, Director - Environmental and Public Works Management
Subject: Construction Contract for the Yale Street Improvement Project
Recommended Action
It is recommended that the Gity Council:
1. award a construction contract to Griffith Company, the best bidder, in the amount
of $969,662 plus a 10% contingency amount of $96,966 for a total amount of
$1,066,628 for the Yale Street Improvement Project; and,
2. authorize the City Engineer to issue any necessary change orders to complete
additional work within budget authority.
Executive Summary
The Yale Street Improvement Project is a collaborative effort between area residents
and the City to preserve the character of Yale Street between Montana Avenue and
Wilshire Boulevard. After a successful petition process and public hearing, a majority of
residents voted to preserve the existing tree canopy and allow for necessary street
repairs to widen the existing parkway.
1
Construction costs for the Yale Street {mprovement Project are expected to be
$969,662 plus a 10% contingency of $96,966. The overall cost of the project including
design, construction, construction management and public outreach is expected to be
$1,226,628 of which the City will contribute $320,000 and the residents will contribute
the remaining amount, or $906,628, through the previously approved assessment
d istrict.
Discussion
In September 2003, residents of Yale Street between Montana Avenue and Wilshire
Boulevard held a community meeting to discuss with staff the City's intention to remove
existing trees to allow for the completion of pavement and sidewalk repairs. As a result
of the meeting, the City agreed to postpone scheduled repairs to meet with Yale Street
representatives to discuss improvement alternatives that would preserve more of the
existing street tree canopy. After several meetings and the evaluation of several
alternatives, Yale Street representatives reported a preference for the parkway widening
alternative.
On September 27, 2004, the Civil Engineering & Architecture Division received a
completed petition verifying interest in the proposed street improvements and support
for an assessment district. Following the receipt of the completed petition, proceedings
to form an assessment district were held and established in accordance with Article
XIIID of the California Constitution and Improvement Act of 1911.
2
Previous Council Actions
On March 8, 2005, the City Council held a public hearing for the formation of an
assessment district on Yale Street. Following the public hearing, ballots were opened
and tabulated before the public by the Office of the City Clerk on March 9, 2005. Ballots
received were counted and weighted according to the proportional financial obligation of
the assessed property. The election resul#ed in a majority favoring the assessment.
On March 22, 2005, after announcement of the certified election result, City Council
approved the formation of an assessment district on Yale Street, between Montana
Avenue and Wilshire Boulevard, and adopted Resolution of Intention 10024 (CCS) to
proceed with the Yale Street Improvement Project.
On October 11, 2005, City Council awarded a contract to RBF Consulting in an amount
not to exceed $90,000 for the design of the Yale Street Improvements.
Contractor Selection
A Notice Inviting Bids was published on July 6 and 9, 2006, in the Santa Monica Dailv
Press. Nine contractors requested bid packages and five sealed bids were received by
the City Clerk's office and publicly opened on July 25, 2006, by the Deputy City Clerk.
The bid results were as follows:
1. Griffith Company $969,662
2. Shawnan $1,168,614
3. Sully-Miller Contracting Company $1,308,000
3
4. Los Angeles Engineering Inc. $1,494,076
5. PALP, Inc. dba Excel Paving Company $1,573,581
City Engineer's Estimate
$1,000,000
Bids were evaluated based on competitive pricing, understanding of the project's scope,
direct experience on similar projects, approach to the work, technical competence,
qualifications of the proposed staff and the ability to meet the desired time frames.
Staff recommends Griffith Company as the best bidder based on their price, quality of
services offered, and experience with similar projects including Innovation Village for
Cal Poly Pomona, Studebaker Road Project for the City of Cerritos, Magnolia Boulevard
Improvements for the City of Burbank, Rosecrans Avenue and Aviation Boulevard
lmprovement for the City of Hawthorne, and Ontario Airport Runway 26R for Los
Angeles World Airports. City staff contacted the reference agencies and all
respondents reported that the contractor's work was completed in a timely and cost-
efficient manner while maintaining consistent quality. City staff contacted the Center for
Gontract Gompliance and found Griffith Company is in good standing and capable of
handling labor compliance issues. City staff also verified with the State Contractors'
License Board that Griffith Company's license is current, active, and in good standing.
Public Outreach
Public outreach for this project will be provided by City of Santa Monica staff as a part of
the construction management effort and will consist of public notifications on the scope
of the project; potential impacts and schedule; and periodic project updates. Staff costs
4
for construction management and public outreach is estimated to be $70,000 and will be
paid through the City's share of $320,000.
Budqet/Financial Impact
Funds required for this construction contract:
Construction Contract
Contingency (10%)
TOTAL REQUIRED
$969,662
$ 96, 966
$1,066,628
Upon project completion, invoices will be mailed to property owners within the
assessment district. Property owners will have two (2) options to pay for the
assessment: (1) pay the entire balance, without incurring any interest, within thirty (30)
days of the invoice date; or (2) elect to make payments over a 10-year period. Under
the second option, bonds wilf be issued for the unpaid amounts and a lien will be placed
upon the property until the full assessment cost, including interest, has been paid.
Payments will be made twice a year with an annual interest rate equal to 8%.
The total project cost, City's share and property owner's share is as follows:
Property
Project Cost City's Share Owner's Share Total Cost
Construction $160,000 $809,662 $969,662
Construction Contingency $0 $96,966 $96,966
Design $90,000 $0 $90,000
Construction Management $70,000 $0 $70,000
Total Contributions $320,000 $906,628 1,226,628
5
The City will contribute $160,000 towards this construction contract. The remaining
amount of $906,628, including $96,966 of contingency, will be financed by the
contractor at the start of construction. Property owners will be invoiced at the
completion of the project, once final costs are confirmed by Council, and their payments
will be held in a Trust Account pending repayment to the contractor.
Funds in the amount of $160,000 are available in account M010152.589000 to pay for
the City's share of this construction contract. Account 80.201238 will be established for
the property owners' share.
Prepared by: Allan Sheth, Civil Engineering Associate
Approved:
. •
Craig Perki s
Director nvironmental and Public
Works Management Department
Forwarded to Council:
.
6
~fnont Ew
Manager
^