sr-041012-3bCity Council Meeting: April 10, 2012
Agenda Item: 3-B
To: Mayor and City Council
From: Jory Wolf, Chief Information Officer
Subject: Construction Contract with VCI Construction, Inc. for Santa Monica City
Net Utility Undergrounding and Excavation
Recommended Action
Staff recommends that the City Council:
1. Authorize the City Manager to negotiate and execute a contract with VCI
Construction, Inc., a California based company, in an amount not to exceed
$200,000 to provide utility undergrounding, excavation, and construction services
related to the City's fiber optic network.
2. Authorize the Chief Information Officer to issue any necessary change orders to
complete additional work as required within budget authority.
Executive Summary
In order to meet or exceed telecommunication industry standards, the City of Santa
Monica is required to complete excavation, undergrounding, and installation of fiber
optic utilities for dark fiber leaseholders within 90 days. Staff review of existing bidding
procedures, construction quotes, and project duration times has identified an
opportunity to expedite installation and obtain more competitive rates by selecting one
vendor to manage the multi - phased fiber optic project rather than bidding each minor
scope of work separately. The recommended contract amount would allow for the City
to request the contractor to apply their rate schedule to several installations requiring
construction.
Staff recommends VCI Construction, Inc. to provide construction services related to City
fiber optic customers in order to complete installations within 90 days in an amount not
to exceed $200,000.
Discussion
The City of Santa Monica has contractual obligations to dark fiber leaseholders to
complete utility undergrounding and excavation for installation of fiber optic services.
Per the City's Dark Fiber lease agreement with its customers, construction installation is
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to be completed within less than 90 days of contract execution to provide installation
schedules that meet or exceed telecommunication industry standards.
Historically, the City competitively bid each installation project separately and typically
the construction projects bids received were less than $40,000, due to the close
proximity of the existing fiber optic network to many commercial buildings. Because of
the minor scope of work averaging approximately $40,000 and competitive bidding
process for each project, the City and its customers currently do not receive the
economies of scale or elevated project priority status for prompt, efficient construction
that a larger aggregate contract of $200,000 could obtain. The bid was for an average
scope of work to establish the best rate structure for the City to realize competitive
construction costs for multiple fiber optic customer installations.
By issuing a Request for Proposals for a Utility Undergrounding and Excavation multi -
phased project and selecting one vendor that would be responsible for all fiber optic
installations currently in queue for construction and those to occur within the next five
years, the City would realize expedited installation, competitive rates, and greater
project coordination which would leverage work crews and equipment.
Contractor /Consultant Selection
On December 22, 2011, the City published a Notice Inviting Bids in the Santa Monica
Daily Press. The bid documents were also posted on the City's online bidding system,
Planet Bids. Thirty -three prospective contractors made requests for the bid documents
prior to the Planet Bids online Request for Proposals closing deadline of January 30,
2012. The City Clerk's Office received three formal bids representative of an average
construction work order for customer fiber optic installation. The three formal bids were
publicly opened by the Deputy City Clerk on January 30, 2012.
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The bid results are as follows:
Bidder
VCI Construction, Inc.
SECC Corporation
Dynalectric
Bid Amount
$ 19,788.00
$ 28,788.00
Failed to meet
qualifications.
A selection committee of Information Systems Department staff reviewed the proposals.
The firms were rated against criteria that included technical competence and
experience, project team qualifications, experience with California and Santa Monica
construction codes and regulations, experience utilizing industry standards, and
competitive cost.
The three proposals received were from highly qualified firms with a history of utility
undergrounding projects for telecommunications within Southern California and Santa
Monica. However, VCI demonstrated superior qualifications for their onsite project
team, emphasis on safety, related project experience, and was the lowest bidder. VCI
has completed utility undergrounding projects for several Southern California
municipalities and telecommunication providers including, City of Rancho Mirage, City
of Laguna Beach, City of Victorville, and Level 3 Communications.
Staff contacted references from all three agencies for information regarding VCI's work
quality, adherence to project schedule, traffic control, safety, and customer service
toward pedestrian and vehicle traffic. All references reported that the firm's work was of
the highest standard, completed within proposed project schedule, in a safe manner,
and that the onsite project team was respectful and courteous to the public. Staff also
verified with the Contractors State License Board that VCI Construction. Inc.
Contractor's license is current, active, and in good standing.
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Staff recommends VCI as the best bidder for utility undergrounding and excavation
services, based upon their experience, adherence to project schedules and budget
estimates, best price, degree of care toward existing utility assets, and emphasis on
safety and customer service to pedestrian and vehicle traffic during construction. VCI
would manage the underground service alerts, utility undergrounding and excavation,
and implementation of temporary traffic control plans in accordance with Santa Monica
Right -of -Way Management Standards and Municipal code, and provide project updates
to City staff.
Public Outreach
Public outreach for this project would continue to be provided by Information Systems
staff, consisting of public notifications to adjacent property owners, tenants, and
surrounding community on the project scope, potential impacts, and schedule. Staff
would continue to provide updates and contact information for inquiries during
construction.
Financial Impacts & Budget Actions
The contract to be awarded to VCI Construction, Inc. is $200,000. Funds are included
in the FY2011 -13 budget in account C010469.589000 for the amount of $200,000.
Prepared by: Gary Carter, Senior Administrative Analyst
roved:
Jo y V) olf
�e {Information Officer
In
Forwarded to Council:
Rod Gould
City Manager