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sr-052212-3eCity Council Meeting: May 22, 2012 Agenda Item: To: Mayor and City Council From: Martin Pastucha, Director of Public Works Subject: Construction Contract for the Wastewater Main Replacement Project Recommended Action Staff recommends that the City Council: 1. Authorize the City Manager to negotiate and execute a construction services contract with Mike Prlich and Sons, Inc., a California -based company, in an amount of $1,044,973 (includes a 10% contingency) for the Wastewater Main Replacement Project. 2. Authorize the Director of Public Works to issue any necessary change orders to complete the work within budget authority. Executive Summary This project would replace approximately 3,500 linear feet of sewer pipeline at various locations throughout the City. Pipelines identified for replacement or upgrades are based on factors such as age, condition, and capacity demands. Staff recommends Mike Prlich and Sons, Inc. for the construction of this project at a cost not to exceed $1,044,973. Background The Water Resources Division operates and maintains an extensive sanitary sewer collection system including approximately 150 miles of wastewater pipelines. Staff utilizes an Asset Management Plan to identify the most critical wastewater infrastructure improvement needs. Additionally, via video and visual inspection staff has identified areas of the collection system that require upgrades to increase reliability and reduce maintenance demands. This construction project is the first of two planned projects to improve the highest priority deficiencies in the wastewater collection system. The proposed improvements consist of replacing substandard 6" diameter pipe with new 8" 1 diameter pipe, and replacing /repairing maintenance access holes to insure adequate and reliable sewer service for the City's customers. On June 23, 2009, Council authorized an agreement with Psomas to investigate and provide design services to repair, replace and upgrade existing wastewater mains at various locations. Psomas completed the construction plans and specifications for the first of the two -phase wastewater repair and improvement program. Discussion Contractor Selection On March 15 and 16, 2012, the City published a Notice Inviting Bids in the Santa Monica Daily Press and on the City's website. Fifteen prospective contractors requested bid packages. The City Clerk's office received five sealed bids, which were publicly opened by the Deputy City Clerk on April 10, 2012. Bid results are as follows: 1. Mike Prlich & Sons Inc. 2. Clark Contracting Corp. 3. MNR Construction, Inc. 4. Blois Construction, Inc. Bid Amount $ 949,975 $ 1,187,600 $ 1,208,475 $ 1,245,135 5. PALP, Inc. DBA Excel Paving Company $ 1,288,467 Engineer's Estimate: $ 1,200,000 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. Staff recommends Mike Prlich and Sons, Inc., as the best bidder based on their price, quality of services offered, and experience with similar projects. Recent projects completed by Mike Prlich and Sons, Inc. include various utility projects for the cities of Los Angeles, Long Beach and Riverside. Staff contacted 2 reference agencies and all respondents reported that work performed by Mike Prlich and Sons, Inc. was completed in a timely and cost - effective manner while maintaining consistent quality. Staff also verified with the California State Contractors License Board that Mike Prlich and Sons, Inc. and its subcontractors' licenses are current, active, and in good standing. Public Outreach Construction management and public outreach for this project would be provided by staff from the Public Works Department. Construction management would include inspecting the contractor's work during construction, verifying and controlling field changes and unforeseen conditions, monitoring and mitigating impacts as a result of the construction activities, attending contractor's safety meetings, attending periodic progress meetings, and maintaining all necessary inspection documentation relevant to the work conducted during construction. Public outreach would include notifications distributed to adjacent properties and the surrounding community on the scope of the project, potential impacts and schedule with additional periodic updates, weekly updates on the City's "Know Before You Go" (aka KBUG) website and in the Santa Monica Daily Press, Monday edition. Financial Impacts & Budget Actions The construction contract amount to be awarded to Mike Prlich and Sons, Inc. is $1,044,973 (including a 10% contingency). Funds in the amount of $1,044,973 are available in the FY2011 -12 budget in account 0310628.589000, Wastewater Main Replacement. Prepared by: Selim Eren, P.E., Civil Engineer Forwarded to Council: Rod Gould City Manager Reference Contract No. 9585 (CCS).