SR-303-001-06
EPWM: CC: AA: BZ: RV; F:\DATA\SPFILES\SP1919 \cc1919CD(DP).DOC
City Council Meeting: February 10, 2004 Santa Monica, California
TO: Mayor and City Council
FROM: City Staff
SUBJECT:Terminate Construction Contract 8206 (CCS) and Waive Bidding
Requirements for Award of a Construction Contract to Complete Parks
Building Replacement Project - Phase I.
Introduction
This report recommends that the City Council terminate the construction contract with
Cohen Construction, Inc for the Parks Building Replacement Project – Phase I; waive
competitive bidding requirements to complete the project; and authorize the City Manager
to negotiate and execute a contract with SKS Construction in an amount not to exceed
$2,029,566 and an agreement with DMR Team for the Division of State Architect
inspection services in the amount of $110,345.
Background
In May 2003, the City Council awarded Contract 8206 (CCS) for the construction of the
Parks Building Replacement Project - Phase 1 to Cohen Construction, Inc., in the amount
of $1,421,750. The scope of work included the demolition of existing structures at
Memorial Park and Los Amigos Park and the construction of new concession stands,
announcer’s booths, restrooms and storage facilities. A Notice to Proceed was issued on
June 23, 2003 with a completion date scheduled for October 27, 2003.
1
The project is currently 106 days beyond its completion date, and construction is only 17%
complete. Cohen Construction, Inc. did not submit a critical path method construction
schedule until November 4, 2003 and the schedule proposed does not meet the
requirements of the contract documents. Completion of the work involves the fabrication
and installation of prefabricated concrete wall panels. This portion of the work was to be
performed by a subcontractor, Earl Composite Systems (“ECS”). To date, Cohen
Construction, Inc. has not secured a contract with ECS. Throughout the course of
construction, numerous safety issues arose, including public access to the construction
areas and heavy equipment, traffic hazards during loading and unloading operations and
mishandling of hazardous materials.
On November 19, 2003, the City began to receive stop notice claims from subcontractors
who had provided labor and materials on the project and asserted that they had not been
paid by Cohen Construction, Inc. On that same date, the City learned that Cohen
Construction, Inc. violated the Public Contracts Code, section 4107, by temporarily
employing a subcontractor, J&J Plumbing, that was not listed on the original bid. On
December 5, 2003, the City served a Notice of Default to Cohen Construction, Inc., which
provides 10 days to cure any default. Cohen Construction, Inc. has failed to cure any of the
defaults within the cure period allowed under the construction contract.
Los Amigos Park, located at a SMMUSD campus, is under the jurisdiction of the
2
Department of State Architect (DSA). DMR provided the required inspection services for
this park only. Their scope of services was limited to DSA requirements and was
envisioned to be of a short duration and on an as-needed basis. However, the State DSA
field officer requested that DMR provide full time on-site quality control and approve all
components of the project including the off-site fabrication of wall panels. DMR's
inspection services will continue to be needed until the project is complete. The City
previously received three bids and issued a Purchase Order to DMR Team to provide
these DSA inspection services for $42,850.
Discussion
Staff recommends that the City Council terminate the City’s contract with Cohen
Construction, Incorporated. Santa Monica Municipal Code Section 2.24.071, allows the
City Council to waive competitive bidding procedures by a two-thirds vote when necessary
to protect public health, welfare and safety. The following conditions support waiving
competitive bidding. At the time of termination, the construction area will have open
trenches. This situation severely limits public access. Since the existing restroom
buildings were demolished, portable restrooms have been placed in the parks and will
need to remain on site until construction is completed which will adversely affect the
public’s health and welfare given the large number of patrons that use both Los Amigos
and Memorial Parks.
At Los Amigos Park over 700 students from SMASH and John Muir Elementary Schools
3
use the site for daily recess and physical education classes during the school year and
approximately 300 youth participate in Pony League baseball between March and June
each year. At Memorial Park over 900 youth participate in Little League and Bobby Sox
between March and June and spectators come to watch games that occur both during
weeknights and on Saturdays and approximately 200 youth practice soccer at Memorial
Park during the AYSO season (Sept-December). Each weeknight approximately 180
adults and on Sundays up to 400 adults participate in city sports leagues at Memorial Park
and approximately 80 students from both Santa Monica High School and Saint Monica
High School rely on Memorial Park fields for baseball practice. Completing the project in a
timely way by waiving competitive bidding will provide amenities for these patrons
including permanent restrooms, adequate storage, announcer booths and concession
stands as well as full access for spectators.
Staff recommends that the City Council waive the competitive bidding requirements. The
City requested proposals from seven alternate contractors. The proposals were reviewed
and negotiated by City staff and were comparable to previous bids submitted for the
project and found to be competitive and reasonable. SKS Construction has done work on
similar projects. Staff reviewed their references and all reported that SKS Construction’s
performance was excellent. Staff recommends that the City Council award a contract to
SKS Construction to complete the project.
Due to the increased costs associated with hiring a new contractor, some funds previously
4
allocated to Phase II of the project (for new or renovated park buildings at Hotchkiss,
Stewart Street, Clover, and Marine Parks) will have to be dedicated to completion of Phase
I of the project. A reduced scope of work for Phase II may be necessary if alternative
funding does not become available. The funding alternatives and options for reduced
scope will be assessed as part of the FY04-07 CIP process.
DMR Team provided the DSA inspection services for the last four months for Los Amigos
Park. These services will continue to be needed until the project is complete. Staff
recommends that the City Council authorize the City Manager to execute a contract with
DMR Team for the remaining work in the amount of $110,345.
Budget/Financial Impact
FUNDS REQUIRED:
Construction Contract $1,845,060
Construction Contingency $ 184,506
DSA Inspection $ 110,345
Total Required $2,139,911
By canceling contract 8206, funds will become available in the following accounts:
C01065901.589000 PMP – Restroom/Concession $267,916
Replacement Program
C01065903.589000 Parks Building Replacement $19,335
C01065902.589000 Parks Building Replacement $707,000
C20065902.589000 Parks Building Replacement $217,681
Total Available from contract cancellation: $1,211,932
5
Additional funds are available in the following accounts:
C01065904.589000 Parks Building Replacement $887,840
C20065902.589000 Parks Building Replacement $40,139
Total Funds Available: $2,139,911
6
Recommendation
Staff recommends that the City Council:
1. Terminate Contract 8206 (CCS) with Cohen Construction, Inc.;
2. Waive public bidding procedures, per provision of SMMC, for completion of the
Project;
3. Award a new construction contract to SKS Construction in an amount not to exceed
$ 2,029,566;
4. Authorize the City Manager to negotiate and execute an agreement with DMR for
DSA inspection services in amount not to exceed $110,345;
5. Authorize the City Engineer to issue any necessary change orders to complete
additional work within budget authority.
Prepared by: Craig Perkins, Director of Environmental and Public Works Management
Barbara Stinchfield, Director of Community and Cultural Services
Karen Ginsberg, Assistant Director of Community and Cultural Services
Anthony Antich, P.E., City Engineer
Bill Zein, P.E., Principal Civil Engineer
Rick Valte, P.E., Civil Engineer Associate
7