SR 03-22-2016 3A
City Council
Report
City Council Meeting: March 22, 2016
Agenda Item: 3.A
To: Mayor and City Council
From: Jory Wolf, Chief Information Officer, Information Systems Department,
Broadband
Subject: Construction Contract for Santa Monica Utility Undergrounding, Excavation
and Construction Services
Recommended Action
Staff recommends that the City Council:
1. Award Bid #UUC1004 to VCI Construction, LLC, a California based company, for
fiber optic network;
2. Authorize the City Manager to negotiate and execute a construction contract with
VCI Construction, LLC in an amount not to exceed $1,500,000 over five years,
with future year funding contingent on Council budget approval; and,
3. Authorize the Chief Information Officer to issue any necessary change orders to
complete additional work as required within budget authority.
Executive Summary
The City is required to complete excavation, undergrounding, and installation of fiber
optic utilities for CityNet broadband customers within 90 days to meet
telecommunication industry standards. The City also requires fiber optic construction to
-Fi installations.
Upon review of prior bidding procedures, construction rates, and project duration times,
staff 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 proposed billing rates to
several installations requiring construction on an as-needed basis, and to respond for
emergency repair work. Staff recommends VCI Construction, LLC to provide
construction services related to City fiber optic customers and for installations to City
facilities in an amount not to exceed $1,500,000 over five years.
Background
The City of Santa Monica initiated construction on a City-owned Municipal Fiber
Network in 2002, for delivering voice, video, and data communications to City facilities.
1 of 5
In 2006, the municipal network began offering dark fiber to businesses located in Santa
Monica, and in 2010 launched a lit fiber service offering for Santa Monica businesses
regularly, for connecting new and existing City facilities, redundant network routes for
network reliability, connection of new City assets to the network, including conduit and
fiber installation during scheduled street maintenance, and for required maintenance on
the existing fiber optic infrastructure. City operation infrastructure projects accounted
for over $200,000 in the current Fiscal Year 2015-16. In addition, the City constructs
approximately 15 fiber routes annually for new CityNet customers, with a construction
cost typically ranging from $15,000 $20,000 depending upon the scope of work. All
CityNet customer installations have contractual obligations to complete utility
undergrounding and excavation for installation of fiber optic services, within 90 days of
contract execution. This installation schedule ensures the City meets
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 would obtain. In December 2011, the City
bid the fiber network construction work as a multi-phased project. On April 10, 2012
(Attachment A), Council approved award of the bid in the amount of $200,000 to VCI
Construction, Inc. As a result, the City realized an average cost reduction of 50%,
expedited construction installations, and enhanced project management on multiple
small-scale installations due to the aggregate contract. Subsequent to exhaustion of
contract authority for the initial contract to VCI Construction, Inc., the City bid the fiber
construction work again in December 2012 as a multi-phased project. On April 9, 2013
(Attachment B), Council approved award of the bid in the amount of $400,000 to KDC,
Inc. dba Dynalectric.
Discussion
The City issued a new Request for Bids on January 21, 2016, after scheduled
construction work exhausted 100% of remaining contract authority on the KDC, Inc. dba
2 of 5
Dynalectric contract. Once again, the new Request for Bid aimed to establish a
competitive rate structure for new fiber optic customer installations, within a five year
period that yielded expedited installation, prompt updates and efficient project
coordination.
Vendor Selection
On January 21, 2016, 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 scope of work. The bid requirements
included an engineering drawing representing an average construction work order for
engineering drawing specifications and submit their bid. The bid was posted on the
Santa Monica Daily Press
on January 21, 2016 and January 28, 2016 in accordance with City Charter and
Municipal code provisions. 1,285 vendors were notified and 43 prospective vendors
at were publicly
opened by the City Clerk on February 25, 2016. The bid results are as follows (reflects
average fiber optic construction work order):
Bidder Bid Amount
VCI Construction, LLC. $ 12,285.00
KDC Inc., dba Dynalectric $ 28,086.00
A selection committee of Information Systems Department and Public Works
Department staff reviewed the proposals. Bids were evaluated based on the criteria in
SMMC 2.24.072, including price, ability, skill and capacity of the bidder to perform the
service promptly, within the time specified, without delay or interference, and
compliance with City scope of work. VCI Construction, LLC (VCI) has demonstrated the
ability to complete similar undergrounding, excavation, conduit and fiber optic cable
installation work for municipal fiber optic network projects in Southern California, on a
3 of 5
larger scale and scope of work up to $11,400,000 in cost, for a project requiring
installation of fiber optic infrastructure to 700 commercial and residential properties.
VCI has demonstrated a qualified onsite project management, related project
experience, adherence to project schedules, emphasis on safety, and was the lowest
bidder. Based on these criteria, VCI Construction, LLC is recommended as the best
bidder to provide Utility Undergrounding and Excavation services in accordance with
City scope of work.
VCI Construction, LLC has completed utility undergrounding projects for several
Southern California municipalities and private telecommunication providers, including
Sprint Communications, City of Riverside, and the City of Rancho Mirage. All referral
engineering specifications, within estimated project timeline and budget, in a safe
manner, and that employees were respectful and courteous to the public. Staff also
verified with the Contractors State License Board that VCI Construction, LLC
.
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.
Financial Impacts and Budget Actions
The contract to be awarded to VCI Construction, LLC is for an amount not to exceed
$1,500,000 over five years. Funds are available in the FY 2015-16 budget in the
Information Systems Department. The contract will be charged to accounts
01248.555010 and M55000614.589000. Future funding is contingent upon Council
approval.
Prepared By:
Gary Carter, Community Broadband Manager
4 of 5
Approved Forwarded to Council
Attachments:
A. April 10, 2012 Staff Report (web link)
B. April 9, 2013 Staff Report (web link)
5 of 5
wĻŅĻƩĻƓĭĻʹ
/ƚƓƷƩğĭƷ
bƚ͵ЊЉЋАЉ
Λ//{Μ