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
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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
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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
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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
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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.
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Reference Contract No.
9111 (CCS) & 9112
(ccs).