SR-01-22-2013-3L1®
City of City Council Report
Santa Monica
City Council Meeting: January 22, 2013
Agenda Item: 3 �--
To: Mayor and City Council
From: Martin Pastucha, Director of Public Works
Subject: Award Construction Contract and Modify Professional Services
Agreement for the Santa Monica Municipal Pier Replacement Project
Recommended Action
Staff recommends that the City Council:
1. Authorize the City Manager to negotiate and execute a contract with Meek Shea,
Joint Venture, a California -based company, in the amount of $8,200,000
(including a 5.9% contingency) for the construction of the Santa Monica
Municipal Pier Replacement Project.
2. Authorize the Director of Public Works to issue any necessary change orders to
complete additional work within budget authority.
3. Authorize the City Manager to negotiate and execute a fourth modification to
Professional Services Agreement No. 9079 (CCS) in the amount of $210,000
with URS, a Nevada -based company, for Engineer of Record services and
hazardous materials testing during the construction phase. This will result in a
four -year amended agreement with a new total amount not to exceed $664,000.
4. Appropriate the budget changes outlined in the Financial Impacts and Budget
Actions section of this report.
Executive Summary
The Santa Monica Municipal Pier Replacement Project consists of complete demolition
and reconstruction of a 360 -foot long by 36 -foot wide section of the Municipal Pier from
the high tide line to the westerly concrete pier constructed in the late 1980s. The
existing Municipal Pier in this area was constructed of timber in the 1920s. A Pier
infrastructure assessment study concluded that this section is in need of complete
replacement.
On December 4, 2012, one bid was received for the construction of the Santa Monica
Pier Replacement Project. After reviewing the bid received for this project, staff
recommends construction contract with Meek Shea, Joint Venture, in a sum not to
exceed $8,200,000 (includes a 5.9% contingency), for the construction of the Santa
Monica Municipal Pier Replacement Project. Staff also recommends a fourth
modification to the professional services agreement with URS Corporation in the
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amount of $210,000 for hazardous materials testing and for Engineer of Record
services required during the construction of the project which is estimated to be one
year.
Background
On April 10, 2007, the City Council authorized a professional services agreement with
Moffatt & Nichol to conduct the Pier Infrastructure Assessment Study. This study
recommended that the wooden Municipal Pier area between bent 40 and bent 58,
known as the Phase 4 Area (see picture below), be removed and replaced with a new
Pier consisting of concrete substructure and timber stringers and decking.
On June 23, 2009, Council authorized a professional services agreement with URS
Corporation to provide design services for the Pier Structural Upgrade and Gangway
Project.
On Auqust 23,
2011, Council adopted a
resolution approving the
Mitigated
Negative
Declaration for
Pier Structural Upgrade
and Gangway Project
and the
Mitigation
Monitoring and
Reporting Program and
authorized the Director
of Public
Works to
E
proceed with the development of bidding documents for implementation of the Pier
Structural Upgrade and Gangway Project.
On May 22, 2012, Council rejected all bids received on March 29, 2012, for general
contracting services to construct the Santa Monica Pier Emergency Gangway Project.
The two bids received were significantly higher than the Engineer's Estimate and in
excess of the available budget for the project. Staff from Public Works and Police
Harbor Patrol are continuing to evaluate systems to provide enhanced exit/evacuation
from the west end of the Pier.
Discussion
The Santa Monica Municipal Pier Replacement Project consists of complete demolition
and reconstruction of a 360 -foot long by 36 -foot wide section of the Municipal Pier
located in a tidal and surf zone. Constructed in the 1920s, this section of the Pier
consists of timber construction and is nearing the end of its useful life. Structural
analysis has shown that this section of the Pier has a limited capacity to support
emergency and commercial delivery vehicles. The Pier Infrastructure Assessment
Study performed by Moffatt & Nichol included inspections to assess the condition of the
existing timber structure. Both underwater and above water inspections of this area of
the Pier indicated the timber is deteriorating. The study recommended that this area of
the Pier be completely removed and replaced with a new pier consisting of concrete
piles, concrete pile caps, timber stringers, and timber decking.
The use of a concrete substructure will result in a highly durable, low maintenance
structure in the tidal and surf zone. As part of the reconstruction project, existing utilities
located under the Pier including water, sewer, communications, electrical, and gas,
would be temporarily relocated during construction and permanently reinstalled under
the new structure. The cost of water and wastewater utility work would be borne by the
utility funds.
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The Pier Replacement Project will result in construction impacts to the adjacent
businesses. Staff from Public Works and Pier Management have been involved with
tenants in ongoing discussions of the construction impact and means to reduce this
impact to the adjacent businesses. This will be an ongoing conversation throughout the
project to minimize the impact of construction to the extent practicable.
Contractor Selection
A Notice Inviting Bids was published in the Santa Monica Daily Press on October 26,
2012, and October 27, 2012. The Notice Inviting Bids was also posted on the City's
online bidding site. Forty -three prospective contractors requested bid packages. One
sealed bid was publicly opened on December 4, 2012. Bid results are as follows:
Bidder Bid Amount
Meek Shea, Joint Venture $ 8,043,500
Engineer's Estimate $ 6,500,000
The bid was 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. Staff
contacted reference agencies listed by the contractor to ascertain past performance on
similar projects, including U.S. National Parks Service for the pier construction project at
Santa Rosa Island, Port of San Diego for the pier strengthening project at Broadway
Pier, United States Navy for the wharf repair project at Port Hueneme, and Ventura
Harbor Department for the shoreline stabilization project at Channel Island Harbor. All
agencies reported the contractor's work to be satisfactory. It is notable that John S.
Meek Company, Inc., the main partner in the joint venture, completed the Phase 3
structural upgrade project for the Santa Monica Pier, which was similar in scope,
schedule, and location and required similar coordination with neighboring businesses.
The difference in cost between the bid received and the engineer's estimate can be
attributed to the following factors:
Y Sizeable liquidated damage for exceeding contract time
• Construction duration limited to approximately one year (250 working days)
which obligated the contractor to assume additional cost risks
• Cost associated with construction phasing requirements added during bidding to
ease construction impact to adjacent businesses.
In addition, a lump sum allowance to be used by the City for construction impact
mitigation in the amount of $300,000 was included in the base bid. Based on these
factors, staff believes the bid received is a reasonable and fair cost to perform this
project. However, since the bid received was in excess of the available budget, staff
met with Meek Shea and the design engineer URS Corporation to better understand the
construction sequence, methods, schedule, and cost to determine if the project could be
constructed in a way that would reduce the cost without compromising quality (value
engineering). Meek Shea and URS Corporation suggested several changes to the
specifications that would not compromise quality while decreasing construction costs by
approximately $293,500. The suggested changes are:
• Re -using the existing handrail
• Altering concrete cure time restrictions
• Re -using the existing utility pipes
• Modifying the stringer bolted connections
In order to decrease the project cost, staff recommends that the value engineering
suggestions be incorporated. Staff also recommends not including the $300,000
allowance bid item in the construction contract. The allowance item is not necessary
since a construction phasing requirement was incorporated during the bidding process
to mitigate construction impacts to neighboring businesses. Any additional mitigation
measures required during construction can be addressed with the construction contract
contingency.
Staff recommends that a construction contract with Meek Shea be executed in the
amount of $7,743,500 (bid amount of $8,043,500 minus $300,000 allowance bid item)
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with a contingency amount of $456,500 (5.9 %) for a total amount of not to exceed
$8,200,000. Upon execution of the contract, staff will negotiate a change order to
decrease the contract amount by an additional $293,500 for the suggested changes to
the construction specifications, making the anticipated construction cost approximately
$7,450,000 ($7,743,500 minus $293,500).
The $293,500 savings can be held as construction contingency to increase the
contingency amount to $750,000 ($456,500 plus $293,500), which is approximately
10% of the anticipated construction cost.
Additionally, the professional services agreement with URS Corporation for the design
phase of the project did not include sufficient funding for as needed technical support
services necessary for the construction phase. Staff recommends a fourth modification
to Professional Services Agreement No. 9079 (CCS) with URS Corporation in the
amount of $210,000, for a total contract amount of $664,000, to cover the as needed
technical support services necessary during the construction phase of the project.
Financial Impacts & Budget Actions
The contract to be awarded to Meek Shea, Joint Venture, is an amount not to exceed
$8,200,000. The modification to the professional services agreement with URS
Corporation is an amount not to exceed $210,000. Staff anticipates that costs for
private utility relocation work and public outreach would require an amount not to
exceed $100,000. Therefore, the total amount of funds necessary to complete the
project is anticipated to be $8,510,000. Funds are available in the FY 2012 -13 and FY
2013 -14 Capital Improvement Program (CIP) budget in the following accounts:
FY12 -13
M304006.589000
$3,246,897
0250136.589000
$435,000
C310628.589000
$125,000
TOTAL
$3,806,897
FY13 -14
Total FY12 -14
$4,050,000
$7,296,897
$0
$435,000
$0
$125,000
$4,050,000
$7,856,897
Award of the construction contract, modification to professional services agreement,
anticipated private utility relocation work, and public outreach require an additional
appropriation of $653,103 to account M304006.589000. In turn, a reduction of
$653,103, currently included in the FY 2014 -15 CIP Budget Plan for the Pier Emergency
Gangway Project would be requested during the CIP budget process.
The construction contract with Meek Shea will be charged to the following accounts:
M304006.589000
C250136.589000
C310628.589000
TOTAL:
$ 7,640,000
$ 435,000
$ 125.000
$ 8,200,000
The modification to professional services agreement with URS Corporation will be
charged to the following account:
M304006.589000 $ 210,000
Cost for private utilty relocation work and public outreach will be charged to the
following account:
M304006.589000 $ 100,000
Prepared by: Zach Pollard, P.E., Associate Project Manager
Approved: Forwarded to Council:
Martin Pastucha Rod Gould
Director of Public Works City Manager
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Reference Contract No.
9690 (CCS) and Amended
Contract No. 9079 (CCS).