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SR-012709-1KCity Council Meeting: January 27, 2009 Agenda Item: 1 '~ ~ To: Mayor and City Council From: Lee E. Swain, Director of Public Works. Subject: Pier Storm Drain Improvement Project Recommended Action Staff recommends that the City Council: 1. Award a construction contract to KEC Engineering, the best bidder, in the amount of $1,024,040 plus a 10% contingency for a total of $1,126,444; 2. Authorize the City Manager to negotiate and execute a professional services agreement with Tetra Tech, Inc. .for construction management services for the project, in the amount $130,520 plus a 10% contingency, for a total contract amount of $143,572; 3. Authorize the City Manager to negotiate and execute a modification to Agreement (CCS 8933) with Psomas in the amount of $190,000., bringing the total contract cost.to $440,000; and 4. Authorize the City Ehgineer to issue any necessary change orders to complete additional work within budget authority. Executive Summary The Pier Storm Drain Improvement Project will upgrade the existing. storm drain infrastructure adjacent to the Santa Monica Pier and is the highest priority Measure V (Clean Beaches and Ocean Parcel Tax) funded project. The project is located under and adjacent to the Santa Monica Pier between Ocean Front walk and an area approximately 250 feet west of the bike path. Implementation of the project is expected to eliminate dry weather urban run-off onto the beach and into Santa Monica Bay and thereby reduce bacterial contamination in this area. The project is categorically exempt from provisions of the California Environmental Quality Act because it replaces an existing City-owned drainage facility with small structures and utility extensions of reasonable length, with negligible or no expansion in capacity. This project is funded by the Clean Beaches & Ocean Parcel Tax Fund. Contract actions include award of a construction contract to KEC Engineering, authorization for construction management services with Tetra Tech, Inc., and extension of Psomas' existing project management contract to provide contiriuing professional services during the construction and 1 closeout phases of this project. Funds for this work were previously appropriated and are available in the Pier Storm Drain account. Discussion Federal, State, and local regulations require the City to reduce urban runoff pollution from storm drain discharges into the Santa Monica Bay. On September 25, 2007, City Council conceptually approved priority storm water projects to be funded by Measure ~/ revenues, of which the highest priority project is the Pier Storm Drain Improvement. The project is intended to improve water quality and maintain the beneficial uses of the Santa Monica Bay, as well. as improve beach aesthetics. by eliminating ponding caused by dry weather urban runoff discharges onto the beach. The pier storm drain basin is an 84 acre watershed located adjacent to Palisades Park bounded by Wilshire Boulevard, 4th Street, Ocean Avenue and the Santa Monica Freeway, including the 3`d Street Promenade area. The .project will help the City comply with regulatory requirements imposed by the. National Pollution Discharge Elimination System and Total Maximum Daily Loads mandates. On October 14, 2008, City Council authorized execution of a professional services agreement with RBF Consulting (RBF) in an amount not-to-exceed $350,000, to prepare plans and specifications, provide public outreach services, and provide engineering services during the project bidding and construction phases. RBF completed the project design on schedule in late December 2008. The project was advertised for construction bids in early January 2009. Contractor Selection A Notice Inviting Bids was published in the Santa Monica Daily Press on January 2, 2009 and January 3, 2009. The Notice Inviting Bids was also posted on the City's website and the bidding document was sent to eight (8) public plan rooms. Sixteen (16) contractors requested bidding documents, and twelve (12) sealed bids were received by the City .Clerk's office and publicly opened on January 13, 2009, by a representative from the City Clerk's office. The bid results are as follows: 2 Company Name Bid Amount KEC Engineering $1,024,040 Blois Construction $1,113,023 John Meek Co. $1,142,000 Palp, Inc. $1,175,601 Paulus Engineering- $1,180,528. Majich Bros. $1,183,000 Clarke Construction $1,213,050 Mallcraft, Inc. $1,379,000 Steve Bubalo Construction $1,393,900 Garcia Juarez $1,525,020 Cedro Construction $1,615,171 Reyes Construction $1,623,400 City Engineer's Estimate: $1,365,000 Staff recommends awarding the contract to KEC Engineering based on the quality of services offered and experience. Recent similar projects include San Jacinto MDP Line E Stage 2 (Riverside County Flood Control), San Sevaine Channel Stage 7 (Riverside County Flood Control), and Portola Springs PA6 Marshburn Basin Storm Drain and Channel (Irvine Community Development Co). All reference agencies contacted reported the contractor's previous work was completed in a timely and cost efficient manner while maintaining consistent quality. The State Contractors' License Board also verified that the company's license is current, active, and in good standing. Additionally, KEC Engineering has performed similar work for the City of Santa Monica. KEC was responsible for installing 60-inch and 72-inch transmission lines down Neilson Way as part of the Coastal Interceptor Sewer Project. Water Resources staff has reported that all work was completed on time and within budget, and that KEC's work on that project was exemplary. Construction Management Staff recommends construction management services be provided by Tetra Tech, Inc. 3 Due to staff availability constraints as well as the high priority of this project, a consulting construction management firm is necessary. On November 11, 2008, the City requested statements of qualifications for construction management services for seven (7) upcoming construction projects in the City, including the Pier Storm Drain project. Twenty-eight (28) firms submitted statements of qualifications. City staff reviewed the qualification statements and recommended interviewing five (5) firms. Representatives from Civil Engineering and Architecture Division interviewed those firms on January 9th and 13th. Tetra Tech, Inc. is recommended .as the top ranked firm to provide construction management services for the construction of this project, at a cost of $130,520. These services include construction oversight and continuous inspection of the contractor's work; 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. Tetra Tech., Inc. has relevant experience working on underground utilities projects for the cities of Long Beach and Oceanside, as well as the Vallecitos Water District. City staff contacted references and all respondents reported that the firm provided exceptional construction management and inspection services. In addition, Tetra Tech, Inc., has provided excellent services to the City of Santa Monica on several projects, including the Colorado Ocean Relief Sewer and the repair of Earthquake Damaged Sanitary Sewer Main Projects 8, 9; 11, 12, 13, 14A, and 15B. Their familiarity with the City, participation in its community outreach program and previous direct involvement with other City construction projects, offer the City an integrated approach to construction management. The firm's rates are competitive with other companies in the construction management field. Public Outreach City staff will continue to work with RBF and its public outreach subconsultant Harris and Company, to provide public notifications to adjacent properties and the surrounding 4 community on the scope of the project, potential impacts and schedule, periodic updates and response to questions from the public. Project Management Services On June 10, 2008, City Council retained Psomas for Measure V program management, project management of the Pier Storm Drain Improvement. Psomas' major objective was to manage this high priority project on a fast-track schedule that called for award of a construction contract in January 2009-and completion of construction by June 1, 2009, prior to the peak beach summer season and the commencement of activities celebrating the 100th Anniversary of the Pier. Psomas' current contract is set to expire on March 31, 2009; however, given their successful completion of all contracted tasks during the design phase, it is now necessary to extend their contract to provide continuing services for implementation of the Measure V program during construction as well as during aclose-out transition period following construction. Additionally, a 3-month transition time is required for Psomas staff to train the new City staff Measure V project manager who is anticipated to be hired by July 2009. Psomas' original authorization approved by City Council on June 10. 2008 was in the amount of $250,000. This extension through project completion will require an additional. $190,000, bringing the total authorization to $440, 000. Environmental Analysis The recommended concepts included in the project are considered to be minor in nature because they involve replacement of an existing City-owned drainage facility with small structures and utility extensions of reasonable length with negligible or no expansion in capacity. Therefore, the improvements recommended for the project are categorically exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Sections 15301 [Existing Facilities], Class 1(b), 15302 (Replacement or Reconstruction], Class 2(c) and 15303 [New Construction. or Conversion of Small Structures], Class 3(d) of the CEQA Guidelines. 5 Financial Impacts & Budget Actions On October 14, 2008, City Council appropriated $2,000,000 from the Clean Beach and Ocean Parcel-Tax Fund balance into Account No: 0069010.589000 for Pier Storm Drain. These funds are sufficient to cover the recommended actions included in this report and no further appropriations are required. The approximate cost for annual maintenance of the new portions of the Pier Storm Drain is estimated to be $25,000. Construction is anticipated to be completed by June 2009. Staff will include the annual maintenance costs in the FY 2009/10 budget for Council review and approval. The Clean Beaches and Ocean Parcel Tax Fund balance is anticipated to provide funding for-these on-going maintenance costs. Prepared by: Mark Cuneo, P.E., Principal Civil Engineer Approved: Forwarded to Council: ~'.~~~ ~~ Lee E. Swain, Director Department of Public Works P/. Lamont EN City Manager 6 Reference Contract Nos. 9024 (CCS), 9025 (CCS), and amendment to Contract No. 8933 (CCS).