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.
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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
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ATTACHMENT A
BIDS FOR
TO BE OPENED ON JANUARY 30, 2013
1. SECC CORPORATION
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2. VCI CONSTRUCTION, INC.
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3. KDC, INC. DBA DYNALECTRIC
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Reference Amended
Contract No. 9450(CCS)