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sr-090809-1rCity Council Meeting: September 8, 2009 Agenda Item: j ~~' To: Mayor and City Council From` Lee E. Swain, Director of Public Works Subject: Construction Contracts for the Palisades Bluffs Stabilization Project Recommended Action Staff recommends that the City Council: 1. award a construction contract to Jensen Drilling Company, the lowest responsible bidder, in the amount of $1,775,200 plus a 10% contingency of $177,520 for a total amount not to exceed $1,952,720 for the Palisades Bluffs Stabilization Project; 2. authorize the City Manager to negotiate and execute a construction management agreement with Vanir Construction Management in the amount of $389,330 plus a 10% contingency of $38,933 for a total amount not to exceed $428,263; and 3. authorize the City Engineer to issue any necessary change orders to complete additional work within budget authority. Executive Summary The Palisades Bluffs Stabilization Project is a federally funded project involving the installation of horizontal drains to remove groundwater that accumulates behind the bluff face to minimize future landslides. The horizontal drains are to be installed near the base of the bluffs adjacent to Pacific Coast Highway north of the California Incline. The project also involves debris removal at several locations, and a limited demonstration of surface grouting and soil nailing methods within a section of the bluffs that is visually hidden from Pacific Coast Highway. The project is 80% funded by federal funds, with a 20% local match from Redevelopment Agency funds. Background In 1998, Congress passed the Transportation Equity Act for the 21st Century. One of the projects funded by that legislation was the Santa Monica Palisades Bluff Stabilization Project (Project). On February 12, 2002, the City Council approved a professional services agreement with URS Corporation to provide a geotechnical study for the Project. The geotechnical study evaluated the current conditions of the soils 1 within the existing bluff area and provided recommendations to mitigate existing damage and potential future deterioration. On April 27, 2004, the geotechnical study for the Project prepared by URS Corporation was presented to City Council. On A rp it 26, 2005, City Council approved a professional services agreement with URS Corporation for the design the Project. On February 24, 2006, the City entered into a professional services agreement with Rincon Consultants, Inc., to provide the environmental analysis for the Project. Discussion The Palisades Bluffs Stabilization Project involves the construction of 82 horizontal drains within clusters of approximately 18 horizontal drains each at five locations north of the California Incline. The horizontal drains within each cluster will be drilled at various horizontal and vertical angles, to depths ranging from 100 feet to 300 feet from the base of the Palisades Bluffs. The Project also involves debris removal at five locations, and a limited demonstration of surface grouting and soil nailing methods within a 130 feet wide and 40 feet high section of the bluffs visually hidden from Pacific Coast Highway. The surface grouting and soil nailing demonstration is intended to evaluate the effectiveness and aesthetics of a method of preventing erosion of the bluff surface for potential application in the future. A peer review evaluating the demonstration area will be conducted after completion of construction. California Coastal Commission Action The Project is situated within the coastal zone. Staff submitted a permit application to the California Coastal Commission and received a waiver of the requirement for a Coastal Development Permit for the Project. Caltrans Encroachment Permit/Traffic Control Plan Installation of the horizontal drains, debris removal, surface grouting and soil nailing will occur within City-owned property. Construction of these improvements will impact north- bound traffic on Pacific Coast Highway. Caltrans has issued an Encroachment Permit 2 allowing the closure of the outside north-bound lane of Pacific Coast Highway between the hours of 8 a.m. and 3 p.m., Monday through Saturday between October 1, 2009 and April 30, 2010. Pursuant to this permit, no lane closures will occur during the summer period. Environmental Analysis Projects utilizing federal funds must satisfy both California Environmental Quality Act (CEQA) and National Environmental Policy Act (NEPA) requirements. A Mitigated Negative Declaration and a Mitigation Monitoring and Reporting Program for the Project were approved by City Council on August 14, 2007, satisfying CEQA. The California Department of Transportation (Caltrans) issued a Categorical Exclusion determination for the project on October 9, 2008, satisfying NEPA. Contractor Selection A Notice Inviting Bids was published in the Santa Monica Daily Press on June 24 and 26, 2009, and the bid document was sent to nine public plan rooms. The Notice Inviting Bids was also posted on the City's website. Seventy eight (78) prospective bidders requested bid documents and five (5) sealed bids were received by the City Clerk's office. The following bids were publicly opened and read aloud on August 13, 2009, by the Deputy City Clerk. The bid results were as follows: 1. Jensen Drilling Company 2. Malcolm Drilling Co. 3. Blois Construction, Inc. 4. Calex Engineering, Co. 5. Nicholas Construction, Inc. Engineer's Estimate $1, 775,200 $1,816,550 $2,342,534 $2,889,050 $3,634,670 $3,500,000 to 4,000,000 If a contract is awarded, Federal contracting code requires award to the lowest responsible bidder. The lowest responsible bidder, Jensen Drilling Company, supplied 3 the City with a list of similar projects including installation of horizontal drains, rock anchors and dewatering wells for the Huntington District Corp of Engineers in Belle, West Virginia; Walla Walla District Corp of Engineer in Washington State; Marathon EG Production, Ltd., in Alba Bioko in Equatorial Guinea; City of Lake Oswego in Oregon State; and the New York Department of Transportation. Staff contacted the references for these projects and they reported that the Contractor's work quality was good and the projects were completed in a timely and cost efficient manner. Staff also contacted the Center for Contract Compliance and found Jensen Drilling. Company in good standing and capable of handling labor compliance issues. The State Contractor's License Board verified that the Contractor's license is active and in good standing. Construction Manaaement On November 11, 2008, the City requested statements of qualifications for construction management services for seven construction projects in the City, including the Palisades Bluffs Stabilization Project. A total of 28 firms submitted statements of qualifications. City staff reviewed the qualification statements and recommended interviewing three firms. Representatives from the Civil Engineering Division .interviewed those firms on July 8th and 9th. Vanir Construction Management, Inc. is recommended as the top ranked firm to provide construction management services for the construction of this project, at a cost of $389,330. 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. Vanir will provide Materials Testing as necessary for the successful completion of the project. Vanir has extensive relevant experience working for the cities of Los Angeles and San Diego. City staff contacted references and all respondents reported that the firm provided exceptional construction management and 4 inspection services. The firm's rates are competitive with other companies in the construction management field. Public Outreach Public relations during construction of this project will be provided by Vanir Construction Management, Inc. as part of the construction management effort. The outreach process will consist of public notifications on the scope of the project, potential impacts, schedule, and periodic project updates. Financial Impacts & Budget Actions The total project cost including construction and contingencies is estimated to not exceed $2,380,983 and is available in the following accounts: Construction Contract -Jensen Drilling Comoany° Account Name Amount 0200685.589000 Palisades Bluff Project $ 1,562,176 0170685.589000 Palisades Bluff Project $ 390,544 Construction Manaaement Contract -Vanir Construction Manaaemenfi Account Name Amount 0170685.589000 Palisades Bluff Project $ 428,263 Total Funds Available: $ 2,380,983 Prepared by: Allan Sheth, Civil Engineering Associate Approved: ~..~5{~c.r~ Lee E. Swain, Director Department of Public Works Forwarded to Council: P. 5 Reference Contract No. 9111 (CCS) & 9112 (ccs).