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SR-04-09-2013-3DCity Council Meeting: April 9, 2013 Agenda Item: 0 To: Mayor and City Council From: Jory Wolf, Chief Information Officer Subject: Construction Contract with KDC, Inc. dba Dynalectric 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 KDC, Inc. dba Dynalectric, a California based company, in an amount not to exceed $400,000 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 prior bidding procedures, construction quotes, and project duration times 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 its rate schedule to several installations requiring construction. Staff recommends KDC, Inc. dba Dynalectric to provide construction services related to City fiber optic customers and for installations to City facilities in an amount not to exceed $400,000. Background The City of Santa Monica has built a Municipal Fiber Network (MFN) for delivering voice, video, and data communications to City facilities. The MFN has an abundance of unused fiber strands, called dark fiber that is available for lease. The City of Santa Monica has contractual obligations to dark fiber leaseholders to complete utility undergrounding and excavation for installation of fiber optic services, within less than 90 1 days of contract execution. This installation schedule ensures the City exceeds telecommunication industry standards. Historically, the City competitively bid each installation project separately. Because the minor scope of work averaged approximately $40,000, the City and its customers did not receive the economies of scale or elevated project priority status for prompt, construction completion that a larger contract of would obtain. On April 10, 2012, Council approved a contract with VCI, Inc under Contract No. 9571 (CCS) for the Utility Undergrounding and Excavation work to provide utility undergrounding, excavation, and construction services. The City has realized cost reductions, expedited construction installations, and enhanced project management on multiple small -scale installations due to the aggregate contract. Discussion The City issued a new Request for Proposals after fulfillment of the previous scope of work and contract award with VCI, Inc. The new bid aimed to establish a competitive rate structure for multiple fiber optic customer installations, within a five year period that yielded expedited installation and greater project coordination. Vendor Selection In December 2012, the City published Notices Inviting Bids to provide utility undergrounding, excavation, and construction services as required by the Information Systems Department in accordance with City specifications. The bid was posted on the City's online bidding site, and notices were advertised in the Santa Monica Daily Press in accordance with City Charter and Municipal code provisions. Thirty -one prospective contractors made requests for the bid documents prior to the Request for Proposals closing deadline of January 30, 2013. Three bids were received by the City Clerk's Office and publicly opened on January 30, 2013 per Attachment A. 2 The bid results are as follows (reflects average construction work order for fiber optic installation): Bidder Bid Amount KDC, Inc. dba Dynalectric $ 11,480.00 VCI Construction, Inc. $ 20,999.00 SECC Corporation $ 28,946.03 A selection committee of Information Systems Department staff reviewed the proposals. Bids were evaluated based on the criteria in SMMC 2.24.070, including price, ability capacity and skill of the bidder to perform services, and capacity of the bidder to perform the service promptly, within the time specified, without delay or interference. Based on these criteria, KDC, Inc. is recommended as the best bidder to provide Utility Undergrounding and Excavation services in accordance with the City specification. KDC has completed utility undergrounding projects for several Southern California municipalities and telecommunication providers, including the City of Los Angeles, the Port of Long Beach, and the City of Beverly Hills. All referral agencies reported that the firm's work was of the highest standard, completed within the proposed project schedule, required few change orders, operated efficiently and 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 KDC, Inc. dba Dynalectric Contractor's license is current, active, and in good standing. 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. %I Financial Impacts & Budget Actions The contract to be awarded to KDC, Inc. dba Dynalectric is $400,000. Funds are included in the FY2012 -13 budget of the Community Broadband Division and City's Telecommunications Master Fund. The contract will be charged to the following accounts: 01248.555010 $300,000 M55000613.589000 $100,000 Prepared by: Gary Carter, Broadband Program Administrator roved: J ry � Ch f information Officer Forwarded to Council: Rod Gould City Manager Attachment: Attachment A: Utility Undergrounding and Excavation Bid Results El ATTACHMENT A BIDS FOR TO BE OPENED ON JANUARY 30, 2013 1. SECC CORPORATION 2g q q( ®3 2. VCI CONSTRUCTION, INC. 0 6 3. KDC, INC. DBA DYNALECTRIC a 1 149-,0. 00 Reference Amended Contract No. 9450(CCS)