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SR-111307-1Efir ~;,Y'o, City Council Report Santa Monica City Council Meeting: November 13, 2007 Agenda Item: j `~' ~ To: Mayor and City Council From: Craig Perkins, Director- Environmental and Public Works Management Subject: Award Construction Contract for the Georgina Avenue Street Lighting Assessment Project Recommended Action Staff recommends that the City Council: 1. award a construction contract to Freeway Electric, Inc., the best bidder, in the amount of $126,500 plus a 10% contingency, for a total amount not to exceed $139,150; and 2. authorize the City Engineer to issue any necessary change orders to complete additional work within budget authority. Executive Summary The Georgina Avenue Street Lighting Assessment Project is a collaborative effort between area residents and the City to provide enhanced street lighting on Georgina Avenue from 4th Street to 7th Street. After a successful petition process and public hearing, a majority of residents voted to add lighting on Georgina Avenue. Construction costs for the project are expected not to exceed $139,150. The total project, including construction management is estimated to be $172,050. The project is funded as an assessment district, with the City contributing 50% of the total cost from general funds, 1 and the property owners' contributing the remaining 50% through the assessment district. Funds are available in the current budget (Street and Park Light Retrofit account) to cover the City's portion of the project costs. Discussion The Georgina Avenue Street Lighting Assessment Project was approved by residents and the City Council, as outlined below. Improvements will include the installation of ornamental Aegean concrete style street lights on residential streets (Attachment A). The street light style was selected by residents at a public meeting held on May 3, 2006. Previous Council Actions On July 11, 2006, the City Council accepted petitions and set a public hearing on October 10, 2006 for the purpose of determining whether public convenience and necessity require the installation of street lighting and declared its intention to install street lighting on 30th Street, from Pico Boulevard to Pearl Street (District "A") and Georgina Avenue, from 4th Street to 7th Street (District "B"). On October 10, 2006, City Council held a public hearing for the formation of streetlight assessment districts on 30th Street, from Pico Boulevard to Pearl Street (District "A") and Georgina Avenue, from 4th Street to 7th Street (District "B"). Ballots were received and accepted up to the end of the public hearing. 2 On November 14. 2006 City Council accepted the certified results of the streetlight assessment district election as tabulated by the City Clerk; approved the formation of a street light assessment district on Georgina Avenue from 4th Street to 7th Street (District "B"); adopted Resolution 10184 (CCS) to assess property owners for the construction cost of streetlight improvements; and issued bonds as security for unpaid assessments in conformance with Proposition 218. Contractor Selection A Notice Inviting Bids was published in the Santa Monica Daily Press on August 17 and 18, 2007, and the bid package was sent to nine public plan rooms. The Notice Inviting Bids was also posted on the Civil Engineering and Architecture Division's webpage. Thirteen contractors requested bid packages and seven sealed bids were received by the City Clerk's office and publicly opened on September 12, 2007, by the Deputy City Clerk. The bid results were as follows: Freeway Electric, Inc. $126,500 KDC Inc., dba Dynalectric $142,900 TDS Engineering, Inc. $145,699 CSI Electrical Contractors, Inc. $168,900 Christopher R. Morales, Inc. $169,785 MS Navarro Engineering $171,620 Y & M Construction, Inc. $268,000 City Engineer's Estimate $139,500 Bids were evaluated based on competitive pricing, understanding of the project's scope, direct experience on similar projects, approach to the work, technical competence, 3 qualifications of the proposed staff, and the ability to meet the desired time frames. Freeway Electric, Inc., is recommended as the best bidder, based the quality of services offered and experience with similar projects. The contractor's recently completed projects include Traffic Signal Modifications for the City of Bellflower, Traffic Signal Upgrades on Balboa Boulevard for the City of Newport Beach, Traffic Signal Modifications at Madison Avenue for the City of Indio, Traffic Signal Modifications at Various Locations for the City of Indio, Traffic Signal Modifications for the City of Carson and Traffic Signal Modifications for the City of Arcadia. Reference agencies were contacted and all respondents reported that the contractor's work was completed in a timely and cost-efficient manner while maintaining consistent quality. The Center for Contract Compliance confirmed that Freeway Electric, Inc., is in good standing and is capable of handling labor compliance issues. The State Contractors License Board also confirmed that the company's license is current, active, and in good standing. Construction Management and Public Outreach Construction .management and public outreach for this project will be provided by EPWM staff. Construction management will include inspection of the contractor's work during construction, reporting field changes and unforeseen conditions to the construction manager, monitoring and mitigating impact as a result of the construction activities, attending contractor's safety meetings, attending periodic progress meetings, and maintaining all necessary inspection documentation relevant to the work conducted during construction. Public outreach will consist of public notifications to adjacent 4 properties and the surrounding community on the scope of the project, potential impacts and schedule, periodic updates and response to questions from the public. Staff costs for construction management and public outreach is estimated to be $14,000 with the City contributing 50%, or $7,000 from general funds, and the property owners' contributing the remaining 50% through the assessment district. Assessment administration for this project will be provided by EPWM and Finance Departments. Assessment administration consists of assessment district formation including petition processing, assessment cost confirmation, and assessment billing. Staff cost for assessment administration is estimated to be $14,000 with the City contributing 50%, or $7,000 from general funds, and the property owners' contributing the remaining 50% through the assessment district. Budget/Financial Impact Funds required for this construction contract: Construction Contract $126,500 Continpency (10%) $ 12,650 $139,150 Upon project completion and confirmation of assessment costs, invoices will be mailed to property owners within the assessment district. 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. Property owners will have two (2) options to pay for the assessment: (1) pay the entire balance, 5 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 will be issued for the unpaid amounts and a Tien 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 is estimated to be $172,050, with the City contributing 50% and the property owners contributing the remaining 50%. Estimated Project Cost Summary Design $4,900 Construction $126,500 Construction Contingency (10%) $12,650 Public Outreach & Construction $14,000 Management Assessment Administration 14 000 $172,050 Funds in the amount of $86,025 are available in account 0010724.589000 (Street & Park Light Retro) to pay for the City's share of this construction contract. Account 80.201250 will be established for the property owners' share. Prepared by: Allan Sheth, Civil Engineering Associate 6 Approved: •~ Forwarded to Council: Craig Perks `~--~C'X~vliont Ewell Director- Environmental and Public Manager Works Management Department Attachment A: Aegean Concrete Style Street Lights 7 Attachment A Reference Contract No. 8854 (CCS)