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SR-11-13-2012-3ECity Council Meeting: November 13, 2012 Agenda Item: S —E To: Mayor and City Council From: Martin Pastucha, Director of Public Works Subject: Beach Bike Path Striping and Signage Improvements Recommended Action Staff recommends that the City Council: 1. Authorize the City Manager to negotiate and execute a construction contract with Sterndahl Enterprises Inc., a California -based company, in the amount of $362,481 (includes a 10% contingency) to implement striping and signage improvements on the Beach Bike Path. 2. Appropriate the budget increase as outlined in the Financial Impacts and Budget Actions section of this report. 3. Authorize the Director of Public Works to issue any necessary change orders to complete additional work within budget authority. Executive Summary In Mav 2012, Council approved a contract modification with Excel Paving to resurface Beach Parking Lot 4S and to implement striping and signage improvements on the Beach Bike Path. The paving of Beach Parking Lot 4S was completed in July 2012. The striping and signage improvements on the Beach Bike Path were not completed by Excel Paving because staff could not negotiate a reasonable price for work within the project budget and decided to bid the project separately. In September 2012, the City solicited bids for this project. After reviewing the five bids received, staff recommends Sterndahl Enterprises, Inc., as the best bidder to implement striping and signage improvements on the Beach Bike Path in an amount not to exceed $362,481. Background On May 22, 2012, the City Council approved a modification in the amount of $470,338 to Construction Contract No. 9481 (CCS) with Excel Paving to resurface Beach Parking Lot 4S and to implement striping and signage improvements on the Beach Bike Path. The paving of Beach Parking Lot 4S was completed in July 2012. 1 Discussion This project will install striping and signing on the Beach Bike Path from north City limit to south City limit, a distance of approximately 3 miles. The purpose of the signs and striping is to delineate the right of way and the shared use of the path between pedestrians and bicyclists. Said striping and signing will also enhance safety at pedestrian crosswalks where there is a potential for collisions between pedestrians and bicyclists. Excel Paving, which currently has a contract with the City for the Annual Paving Project 9481 (CCS), was approached to perform this work for expediency and for having the expertise to deliver such work, but they requested an additional 5% mark -up beyond the mark -up allotted in the contract to hire a subcontractor and asked the City to hold the contractor harmless during construction. Staff did not believe either demand was in the best interest of the City and decided to bid the striping and signage scope of the project separately in an effort to receive competitive prices, thereby saving the general contractor's mark -up and exposing the City to undue liability. Contractor Selection In September 2012, the City published a Notice Inviting Bids to implement striping and signage improvements on the Beach Bike Path. The bid was posted on the City's online bidding website and notices were advertised in the Santa Monica Daily Press. Twenty -five prospective bidders requested bid packages. The City Clerk's office received five sealed bids, which were publicly opened by the Deputy City Clerk on October 1, 2012. Bid results are as follows: Bidder Bid Amount 1. Unispec Construction, Inc. $ 296,967.50 2. Sterndahl Enterprises, Inc. $ 329,528.00 3. PCI $ 387,644.40 4. Chrisp Company $ 438,188.10 2 Bidder Bid Amount 5. J & S Striping $ 445,000.00 Engineer's Estimate $ 270,000.00 Bids were reviewed by Public Works staff and evaluated based on understanding of the project's scope, direct experience on similar projects, approach to the work, technical competence, cost, qualifications of the proposed staff, and the ability to meet the desired time frames. The Engineer's Cost Estimate of $270,000 to implement striping and signage improvements at the Beach Bike Path was based on the cost of material received from the supplier plus a 15% mark -up. A review of the bids reveals that a 25 % -50% mark -up was added to the cost of the striping and signage material, Premark, because it is a relatively new product and contractors do not have a lot of experience working with it. Sterndahl Enterprises, Inc., of Sun Valley, California, is recommended as the best bidder based on the evaluation criteria above. The references provided by the company include recent similar projects for the cities of Los Angeles, Santa Clarita, and Lompoc. All reference agencies reported the contractor's work was completed in a timely and cost - efficient manner while maintaining consistent quality. Sterndahl Enterprises, Inc., has also completed several striping projects in Santa Monica in recent years. The California Contractors State License Board verified that contractor's license is current, active, and in good standing. The lowest bidder Unispec Inc. was deemed non - responsive for failing to meet the licensing requirements, the subcontracting requirement of performing more than 50% of the work per provision 5.1.1 of the City's General Conditions, and for not having any experience with the material that will be used on this project. 3 Financial Impacts & Budget Actions The contract to be awarded to Sterndahl Enterprises, Inc., is $362,481 (includes a 10% contingency). Funds in the amount of $252,995 are included in the FY 2012 -13 Capital Improvement Program budget at account C116012.589000. Award of the contract requires an additional appropriation of $109,486 from the Beach Fund to account C1 16012.589000. Prepared by: Harry Demitri, Civil Engineer Approved: Martin Pastucha Director of Public Works S Forwarded to Council: Rod Gould City Manager Reference Contract No. 9662 (CCS).