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SR-01-22-2013-3NID J „Yo City Council Report Santa Monier City Council Meeting: January 22, 2013 Agenda Item: M To: Mayor and City Council From: Martin Pastucha, Director of Public Works Subject: Award Construction Contract for Santa Monica Airport Temporary Car Storage Parking Lot Project Recommended Action Staff recommends that the City Council 1. Authorize the City Manager to negotiate and execute a construction contract with PALP, Inc. DBA Excel Paving Co., a California -based company, in an amount not to exceed $507,000 (includes a 10 % contingency) to construct the Santa Monica Airport Temporary Car Storage Parking Lot Project. 2. Authorize the Director of Public Works to issue any necessary change orders to complete additional work within contract authority. Executive Summary The proposed project would construct a 1.7 -acre temporary parking lot at the north -east section of the Santa Monica Airport. The temporary parking lot would be leased to car dealerships for car storage. In November 2012, the City solicited bids for this project. After reviewing the two bids received, staff recommends PALP, Inc. DBA Excel Paving Co. for the construction of this project in an amount not to exceed $507,000. Background On December 13, 2011, the City Council authorized an agreement with Mead & Hunt, Inc. to implement the approved Airport Capital Improvement Program projects and to provide cost estimate and design plans for the construction of a new parking lot in the vacant north -east section of the Airport. On October 22. 2012, the construction of the temporary parking lot project was presented and discussed without objection at the Santa Monica Airport Commission meeting. Mead & Hunt, Inc. completed the construction plans and specifications for new car storage parking lot project. 1 Discussion This project provides a temporary development of a revenue - generating car storage parking lot on 1.7 -acres of undeveloped land at the north -east corner of the Santa Monica Airport. The project site is located in an area of the airport that is part of what has been designated as "aviation land ". However due to the site's long standing undeveloped status, and to the lack of existing aviation facilities at the site, the project is consistent with the City's current federal obligations. Completion of this project will allow for the parking lot to be leased to local car dealerships, thus providing these local businesses with much needed space to store their new car inventory, while also generating additional revenue for the Airport. All revenue generated by the car storage operations will be directed into the Airport Fund in compliance with the City's current federal obligations. The project site is within the restricted access area of the airport property. Therefore, no public access or public parking will be allowed. The scope of work for the construction project includes clearing and grading 1.7 acres of undeveloped land, installing a storm water infiltration /drainage system for urban run -off mitigation, and paving to provide a suitable surface for new car storage. Contractor Selection On November 13 and 14, 2012, a Notice Inviting Bids for general contracting services for the Car Storage Parking Lot Project was published in the Santa Monica Daily Press and bid documents were posted on the City's on -line bidding site in accordance with City Charter and Municipal Code provisions. Fifteen prospective contractors requested bid packages. The City Clerk's Office received two sealed bids which were publicly opened by the Deputy City Clerk on December 11, 2012. Bid results are as follows: 4 Bidder Bid Amount 1. Terra Pave, Inc. (withdrawn) $334,017 2. PALP Inc. DBA Excel Paving Co. $461,345 Engineer's Estimate $250,000 On December 13, 2012, staff received a letter from Terra Pave, Inc., requesting that their bid be withdrawn due to a clerical error. The City Attorney reviewed the applicable provisions in the Public Contract Code, and based on that review advised staff to return the bid bond submitted by Terra Pave, Inc. The engineer's estimate and bid breakdowns were reviewed in detail for validation. It was found that the original engineer's estimate did not include the following cost items: the storm water detention/ infiltration system which is required by the City's Urban Stormwater Runoff Ordinance, the general conditions such as mobilization and storm water pollution plans which are typically charged by the contractors, and the disposal fees for the existing organic materials which were originally assumed to be dumped at landfill sites without disposal fees; however, landfill sites only accept clean soil without a fee. The engineer's estimate would be $470,000 with the aforementioned cost items. The bid submitted by PALP, Inc. DBA Excel Paving Co. was evaluated and compared to similar work that was competitively bid by the City and found to be acceptable. Recently, PALP, Inc. DBA Excel Paving Co. successfully completed the Ocean Park Boulevard Green Street project. The bid was also evaluated based on the company's 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. References listed by contractor were contacted to ascertain past performance on similar projects. Staff recommends PALP, Inc. DBA Excel Paving Co. as the best bidder based on their price, quality of services offered, and experience with similar projects. Recent projects completed by PALP, Inc. DBA Excel Paving Co., include various similar projects for the 3 cities of Los Angeles, Long Beach and Santa Monica. Staff contacted reference agencies and all respondents reported that work performed by PALP, Inc. DBA Excel Paving Co. was completed in a timely and cost - effective manner while maintaining consistent quality. Staff also verified with the California State Contractors License Board that PALP, Inc. DBA Excel Paving Co. 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. 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. Financial Impacts & Budget Actions The construction contract amount to be awarded to PALP, Inc. DBA Excel Paving Co. is for an amount not to exceed $507,000. Funds are available in the FY 2012 -13 Capital Improvement Program Budget in account M330642.589000. Prepared by: Selim Eren, P.E., Civil Engineer Approved: Forwarded to Council: He Martin Pastucha Rod Gould Director of Public Works City Manager F1 Reference Contract No. 9692 (CCS).