Loading...
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 ^