SR 08-23-2011 3KCity Council Meeting: August 23, 2011
Agenda Item: ~"}~-
To: Mayor and. City Council
From: Martin Pastucha, Director of Public Works
Subject: 15tH Street Streetlight Assessment Project
Recommended Action
Staff recommends that the City Council:
1. Authorize the City Manager to negotiate and execute a construction contract with
Freeway Electric, Inc., aCalifornia-based company, in an amount not to exceed
$144;114 (includes a 10% contingency) for the 15th Street Streetlight
Assessment Project.
2. Authorize the Director of Public Works to issue any necessary change orders to
complete additional work within budget authority.
Executive Summary
The 15th Streef Streetlight Assessment Project is a collaborative effort between area
residents and the City to provide enhanced street lighting on 15th Street from Alta
Avenue to Montana Avenue. After a successful petition process and public hearing, a
majority of residents voted to add lighting on 15th Street. Freeway. Electric, Inc. is
recommended for the construction of this project in the amount of $144,114. The total
project cost including design, construction, construction management, and assessment
administration is estimated to be $175,014. The project is funded as an assessment
district, with the City contributing 50% of the total cost from general funds, and the
property owners contributing the remaining 50% through the assessment district.
Discussion
The 15th Street Streetlight Assessment Project will include the installation of New York
style ornamental-street lights (Attachment A) on 15th Street between Alta Avenue and
Montana Avenue. The street light style was selected by mail-in ballots in February
2010.
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Previous Council Actions
On September 16, 2008, the City Council accepted petitions and set a public hearing on
November 11, 2008 to determine whether public convenience and necessity would
require the installation of street lighting and declare its intention to install street lighting
on 15th Street, from Alta Avenue to Montana Avenue (District "A") and Urban Avenue,
from Yorkshire Avenue to Dorchester Avenue (District "B").
On November 11, 2008, City Council held a public hearing for the formation of
streetlight assessment districts on 15th Street, from Alta Avenue to Montana Avenue
(District "A") and Urban Avenue, from Yorkshire Avenue to Dorchester Avenue (District
"B"). Ballots were received and accepted up to the end of the public hearing.
On November 25, 2008, City Council accepted the certified results of the streetlight
assessment district election as tabulated by the City Clerk, approved the formation of a
streetlight assessment district on 15th Street from Alta Avenue to Montana Avenue
(District "A"), and adopted Resolution 10364 (CCS) to assess property owners for the
cost of streetlight improvements and issue 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 May 9, 2011
and May 12, 2011 and also posted on the City's website. Twenty-eight prospective
contractors requested bid packages. The City Clerk's office received two sealed bids,
which were publicly opened by the Deputy City Clerk on June 1, 2011. The bid results
are as follows:
Company Name Bid Amount
Freeway Electric, Inc. $131,013
J.F.. L. Electric, Inc. $136,990
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Bids were evaluated based on understanding of the project's scope, direct experience
on similar projects, approach to the work, technical competence, qualifications of the
proposed staff, and the ability to meet the desired time frames.
Freeway Electric, Inc. is recommended as the best bidder based on the quality of
services offered and experience. The contractor's recent similar projects include traffic
signal construction or improvements for the cities of Bellflower, Lakewood, Monrovia
and Pico Rivera. All reference agencies reported the contractor's work was completed
in a timely and cost-efficient manner while maintaining consistent quality. The
Contractors State License Board also verified that the company's license is current,
active, and in good. standing. Additionally, Freeway Electric, Inc. completed the
Georgina Avenue Street Lighting Assessment Project for the City of Santa Monica, and
staff confirms that all work was completed on time and within budget.
Construction Management and Public Outreach
Construction management and public outreach for this project will be provided by Public
Works staff. Public outreach will consist of public notifications to adjacent properties
and the surrounding community on the scope of the project, potential impacts and
schedule, periodic updates, and response to questions from the public.
Assessment Administration
Assessment administration for this project will be provided by Public Works and Finance
staff. Assessment administration consists of assessment district formation including
petition processing, assessment cost confirmation, and assessment billing.
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Financial Impacts &Budget Actions
The construction contract amount to be .awarded to Freeway Electric, Inc. is $144,114
(includes 10% contingency). Funds are included in the FY2011-12 budget in account
0017001.589000, Streetlight Assessment District. The construction contract amount of
$144,114 does not include design, construction management, or assessment
administration costs. These additional costs are part of the larger overall project total.
The project is funded as an assessment district, with the City contributing 50% of the
total cost from general funds, and the property owners contributing the remaining 50%
through the assessment district. The contribution share between the City and property
owners is based on the total project cost, which is estimated to be $175,014. Funds in
the amount of $87,507, to pay for the City's share of the total project cost are included
the FY2011-12 budget in account 0017001.589000, Streetlight Assessment District.
Property
Estimated Total Project Cost Summary: City Share Owners' Share
Design $4,900 $2,450 $2,450
Construction $131,013 $65,506.50 $65,506.50
Construction Contingency (10%) $13,101 $6,550.50 $6,550.50
Construction Management $13,000 $6,500 $6,500
Assessment Administration $13,000 $6,500 $6,500
TOTAL $175,01.4 $87,507 $87,507
Property owners within the assessment district 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 payment to the contractor. Property owners will have two options
to pay for the assessment: (1) pay the entire balance, without incurring any interest,
within 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 lien 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 the prime
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rate, but not exceeding 8% per annum. The property owners' share will be collected
and placed in account 80.201259 for the bondholder.
Prepared by: Allan Sheth, Civil Engineering Associate
Approved:
Martin Pastucha
Director of Public Works
Forwarded to Council:
Rode
City Manager
Attachment: 1 -New York Style Ornamental Street Light
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Attachment 1
Reference Contract No.
9452 (CCS)