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sr-042611-3dCity Council Meeting: April 26, 2011 Agenda Item: ~~ To: Mayor and City Council From: Martin Pastucha, Director of Public Works Subject: Construction Contract for the Water Main Replacement Project Recommended Action Staff recommends that the City Council: 1. Authorize the City Manager to negotiate and execute a contract with MNR Construction, Inc., aCalifornia-based company, in an amount not to exceed $2,429,735 (includes a 10% contingency) for the Water Main Replacement Project. 2. Authorize the City Manager to negotiate and execute a contract with Black and Veatch, aMissouri-based company, in an amount not to exceed $242,645 (includes a 10% contingency) for the construction management of the Water Main Replacement Project. 3. Authorize the Director of Public Works to issue any necessary change orders to complete additional work within budget authority. Executive Summary Each year the City Council appropriates funds to replace water mains at various locations throughout the City. Water mains identified for replacement or upgrades are based on factors such as age, condition, and capacity demands. MNR Construction, Inc. is recommended for the construction of this project in the amount of $2,429,735 (including 10% contingency). Black and Veatch is recommended to provide construction management and inspection services in the amount of $242,645 (including 10% contingency). Discussion City staff identifies water mains to be replaced on factors including age, condition, and capacity demands. Approximately 11,700 lineal feet of existing ductile iron water mains will. be replaced with larger diameter ductile iron water pipes. The proposed improvements will insure continuous and reliable water supply. 1 Contractor Selection On February 8 and 12, 2011, the City published a Notice Inviting Bids in the Santa Monica Daily Press and on the City's website. Sixty-five prospective contractors requested bid packages. The. City Clerk's office received 13 sealed bids, which. were publicly opened by the Deputy City Clerk on March 10, 2011. Bid results are as follows: Bidder Bid Amount 1. MNR Construction, Inc. $2,208,850 2. Williams Pipeline Contractors, Inc. $2,251,555 3. Garcia, Juarez Construction, Inc. $2,256,845 4. John T. Malloy, Inc. $2,293,315 5. TBU Incorporated $2,300,100 6. Cedro Construction, Inc. $2,335,373 7. Fletcher Creamer & Son, Inc. $2,457,595 8. VCI Construction $2,462,120 9. Kana Pipeline, Inc. $2,551,000 10. Dominguez General Engineering, Inc. $2,577,400 11. Mike Bubalo Construction Co., Inc. $2,760,000 12. Blois Construction, Inc. $2,868,728 13. Vido Artukovich & Son, Inc/Vidmar Inc. $2,897,950 Engineer's Estimate: $2,500,000 All bids were evaluated on competitive pricing, understanding of the project's scope, direct experience with similar projects, approach to the work, technical competence, qualifications of the proposed staff, and the ability to meet the project schedule. Additionally, references listed by contractors were contacted to ascertain past performance on similar projects. 2 Staff recommends MNR Construction, Inc., aCalifornia-based company, as the lowest responsible bidder based on their price, quality of services offered, and experience with similar projects. Recent projects completed by MNR Construction, Inc. include various utility projects for the cities of Los Angeles, Long Beach and Pasadena. Staff contacted reference agencies and all respondents reported that work performed by MNR Construction was completed in a timely and cost-effective manner while maintaining consistent quality. Staff also verified with the California State Contractors License Board that MNR Construction and its subcontractors' licenses are current, active, and in good standing. Construction Management In August 2010, the City requested statements of qualifications for construction management services. The request for Statements of Qualifications was advertised on the City's website,and on Planet Bids. A total. of 31 firms submitted Statements of Qualifications, which were reviewed and rated by Public Works staff. Selection criteria included technical competence, staffing capability, project approach, past performance, dispute resolution, quality control, cost control, best management practices, and customer service. The top four firms were invited to interview with the City. Staff from Public Works completed these interviews on March 1, 2011. Black and Veatch is recommended as the best proposer to provide construction management and construction inspection services. Their services would include construction management and continuous inspection of the contractor's work. Black and Veatch has a proven record of successful budget and schedule management, and supplied a list of similar successful projects completed for the City of Santa Monica. 3 Financial Impacts & Budget Actions The construction contract amount to be awarded to MNR Construction, Inc. is $2,429,735: The construction management contract amount to be awarded to Black and Veatch is $242,645. Funds are available in the FY2010-11 budget in account 0250136.589000, Water Main Replacement. Prepared by: Spiros Lazaris, Civil Engineer Approved: Martin Pastucha Director of Public Works Forwarded to Council: Rod Gould ~ City Manager 4 Reference Contract Nos. 9357 (CCS) and 9358 (ccs).