SR 08-09-2016 3C
Ci ty Council
Report
City Council Meeting : August 9, 2016
Agenda Item: 3.C
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To: Mayor and City Council
From: Susan Cline, Director , Public Works, Civil Engineering
Subject: Annual Water Main Replacement Project
Recommended Action
Staff recommends that the City Council:
1. Award Bid #SP2383 to Colich & Sons L.P., a California -based company, for the
Annual Water Main Replacement and Pavement Rehabilitation Project;
2. Authorize the City Manager to negotiate and execute a contract with Colich &
Sons L.P., in an amount not to exceed $1,720 ,904 (including a 15%
contingency);
3. Award RFQ # 1 982 to Berg and Associates Inc., a California -based company, for
construction management and inspection services for the Annual Water Main
Replacement and Pavement Rehabilitation Project;
4. Authorize the City Manager to negotiate and execute a Professional S ervices
Agreement with Berg and Associates Inc., a California -based company, in an
amount not to exceed $17 6,461 (including a 10% contingency);
5. Authorize the Director of Public Works to issue any necessary change orders to
complete additional work within budget authority.
Executive Summary
The Annual Water Main Replacement and Pavement Rehabilitation Project would
replace approximately 2,230 feet of water main distribution pipelines on Ocean Avenue,
Seaside Terrace and Olympic Place South to ensure an ade quate and reliable supply of
water to customers and also repave Ocean Avenue from Moomat Ahiko Way to Pico
Boulevard . This project is based on a long term replacement and maintenance plan for
water mains based on age, condition and capacity demands. In Jun e 2016, the City
solicited bids for construction services. Staff recommends Colich & Sons L.P. as the
best bidder for the Annual Water Main Replacement and Pavement Rehabilitation
Project for an amount not to exceed $1,720,904 (including a 15 % contingency).
Additionally, in September 201 5 , the City issued Request for Qualification s for
construction management and inspection services for upcoming construction projects
throughout the city. Staff recommends Berg and Associates to provide construction
manageme nt and inspection services for this project in an amount not to exceed
$176,461 (including a 10% contingency).
Background
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On November 24, 2015 (Attachment A), the City Council awarded a Professional
Services Agreement to California Watershed Engineerin g (CWE) to provide the
engineering design services, develop construction documents and provide engineering
support during the construction phase for the Annual Water Main Replacement project .
The City operates and maintains a 205 mile network of water dist ribution mains with
pipeline sizes ranging from 4 to 36 inches. The City’s water system serves over 86,000
residential and business customers providing 12 million gallons of water per day. In
order to achieve the City's ongoing commitment to supply safe and clean water to all its
residents and businesses, and preserve the water quality and efficiency going forward,
the Water Resources Division developed a business case evaluation study in 2011 to
identify and prioritize replacement of the aged cast iron w ater mains. The study focused
on the oldest cast iron pipe installations built prior to the1970s. The study provided cost
and probabilities of potential water main breaks while making recommendations to
replace and upgrade the aged water mains throughout t he city. Staff utilizes the study
recommendations in selecting and prioritizing the segments of the water mains to be
replaced.
Discussion
Staff reviewed maintenance records to identify the most problematic areas where
unexpected low water pressure occur s. Low pressure in the old cast iron pipes is
typically caused by rust buil d up restricting water flow , which affects the water quality as
well. Based on this information, a list of priority water distribution system improvements
was created to implement the replacement and upgrade of water mains , which also
consist s of replacing the water valves, house connections, and the water meters. This
project would replace a total of 2,230 linear feet of water main, 14 water meters, 23
water valves, and 3 fire hyd rants at the locations listed below.
Ocean Avenue - from north of Moomat Ahiko way to Vicente Terrace
Seaside Terrace - from Ocean Avenue to Ocean Front Walk
Olympic Place South - West of Ocean Avenue
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This water main replacement project is design ed to eliminate the existing water pipes
with a history of main breaks from the distribution system, enhance the water pressure
and water quality. This project is anticipate d to start in late 2016 or early 2017. The
duration of this project is estimated at 4 -6 months dependent on weather condition s .
The pavement on Ocean Avenue from Moomat Ahiko Way to Pico Boulevard was
originally scheduled for rehabilitation in FY 20 14 -15, but the work was deferred to
accommodate the planned water main replacement on Ocea n Avenue. Upon
completion of the water main replacement, Ocean Avenue would be repaved as part of
this project. Staff anticipated that combining the se two projects would return more
competitive bids and reduce inconveniences to the public. The pavement rehabilitation
would consist of grinding and overlaying existing asphalt pavement and placing new
striping.
Contractor Selection - Construction
On June 14 , 2016, the City published Notices Inviting Bids for the Annual Water Main
Replacement and Pavement R ehabilitation Project 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 the City Charter and
Municipal Code provisions. 33 vendors downloaded the bid . Eight bids were received
and publicly opened on June 30 , 2016. Bid results are as follows:
Bidder Base Bid
GRFCO, Inc. $1,479,059.50
Colich & Sons L.P. $1,496,438.00
Sully -Miller $1,550,000.00
Vido Samarzich Inc. $1,653,384.00
Bl ois Construction Inc. $1,805,870.50
Lon e rock Inc. $1,878,808.50
MNR Construction $1,904,401.60
Ramona Inc. $1,966,945.00
Bids were evaluated based on the criteria in SMMC 2.24.072, including (i) character,
integrity, reputation, judgment, training, ex perien ce and efficiency of the bidder, (ii)
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bidder’s ability, capacity and skill to perform the project , (iii) capability to perform the
work promptly, within the time specified and without delay or interference , (iv)
sufficiency of financial resources, an d (v) price.
GRFCO Inc.’s bid was the lowest in price; however, it did not contain the requisite
construction experience, have a complete subcontractor form, fully disclose other
business names, or fully disclose the claims and litigation history of the bidder, its
officers and related entities as required by the bid. The Center for Contract Compliance
provided public records documentation of GRFCO, Inc., its officers and related
businesses that revealed lawsuits brought by the Division of Labor Standards
Enforcement against GRFCO, Inc., debarment by the City of San Diego, CAL/OSHA
citations and lawsuits for nonpayment of prevailing wage, that were not disclosed in
GRFCO, Inc.’s bid.
Based on review of bids submitted, and the documents provided by Center for Contract
Compliance, staff deems GRFCO, Inc.’s bid as deficient and nonresponsive, and
recommends Colich & Sons L.P as the best bidder based on the criteria set forth in
SMMC Section 2.24.072.
GRFCO submitted a protest letter in response to the bid award recommendation
(Attachment B). The City Engineer issued a response outlining several items in the
GRFCO bid that were determined to be deficient and non -responsive and denied the
protest (Attachment C).
Staff contacted references provided by Colich & Sons L.P., for similar projects in the
Cities of Walnut , which were completed in 2016 , and additional projects for the cities of
Pasadena , Santa Fe Spring , Buena Park and Chino Basin Desalter Agency which were
completed in 2014 -2015 . All reference agen cies reported that work was completed in a
timely and cost -efficient manner while maintaining consistent quality. Staff also verified
with the Contractor’s State License Board that Colich & Sons L.P. license is current,
active, and in good standing.
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Cons ultant Selection - Construction Management
On September 22 , 2015 , the City issued Request for Qualifications (RFQ) for
construction management and inspection services for upcoming construction projects .
The RFQ was posted on the City’s on -line bidding si te, and notices were advertised in
the Santa Monica Daily Press in accordance with City Charter and Municipal Code
provisions. 124 vendors downloaded the RFQ. 25 firms responded. Responses to the
RFQ were reviewed by a selection panel of staff from the Public Works Department .
Evaluation was based on the selection criteria set forth in SMMC Section 2.24.973, with
specific review of the following : technical competence, staffing capability, proje ct
approach, past performance, dispute resolution, qualit y control, cost control,
management services, customer service , and the ability to meet required time frames.
The top four firms (Arcadis, Berg and Associates Inc., Hill International and MNS
Engineers Inc.) were invited to participate in interviews with staff from the Public Works
Department in June 2016. Arcadis declined to participate in the interview process due to
lack of resources at this time.
Based on the selection criteria set forth in SMMC 2.24.073, staff recommends B er g &
associates Inc. as the best qualified firm to provide construction management and
inspection services based on its qualifications and its directly related experience
providing similar services for municipal agencies .
Services provided by B er g & Associates Inc. would include c onstruction management,
continuous inspection of the contractor’s work, verification and management of field
changes and unforeseen conditions, monitoring and mitigation of impacts as a result of
the construction activities, attendance of contractor’s safe ty meetings, attendance of
periodic progress meetings, recordkeeping of all necessary inspection documentation
relevant to the work performed during construction , and public outreach.
Public Outreach
Public outreach during construction of this project w ould be provided by the City’s
construction management consultant as part of the construction management effort.
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Public outreach would include notifications distributed to adjacent properties and the
surrounding community on the scope of the project, pote ntial impacts including night
work, and schedule with periodic updates and weekly updates on the City’s “Know
Before You Go” (aka KBUG) website and Monday editions of the Santa Monica Daily
Press . For work requiring temporary closures or detours on major roads, highly visible
electronic changeable message signs would be placed at strategic locations one -week
prior to the planned work to notify the travelling public. Updates regarding the project
would be provided on the City’s website and various social me dia channels.
Properties impacted by the project will receive two construction notices. The first
general notice would be mailed to properties adjacent to the proposed work two weeks
prior to the start of construction. A second two -day notice would be s ubsequently hand -
delivered to each adjacent property with detailed information regarding the planned
construction activity, potential impacts, and contact information. The notices would be
prepared by Public Works staff and distributed by the contractor. A p roject specific
outreach campaign , including one -on -one coordination with impacted businesses and
hotels , would commence prior to start of construction and continue throughout the
project.
California Coastal Commission De Minimis Waiver
On May 18, 20 16 , the California Coastal Commission issued a Notice of Permit
Waiver Effectiveness regarding Coastal Development Permit (CDP) Waiver 5 -16 -0245 -
W, allowing for development of the project as previously described. The waiver was
reported to the Coastal Com mission on May 13, 2016 and became effective on that
date.
Construction Schedule
Construction work is tentatively scheduled to begin in October 2016 or January 2017,
pending material availability. Construction duration is for a period of approximately six
months. An after -hours construction permit would be obtained by the contractor
allowing certain components of the work along Ocean Avenue to be done between the
hours of 8 p.m. and 8 a.m., excluding weekends.
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Financial Impacts and Budget Actions
The con tract to be awarded to Colich and Sons L.P. is for an amount not to exceed
$1,7 2 0,904 (including a 15% contingency). Funds are available in the FY 2016 -17
Capital Improvement Program budget . The contract will be charged to the following
accounts :
Account Number Account Name Amount
C250136.589000 Water Main Replacement $1,441 ,456
M250152.589000 Annual St Resurf/Sidewalk $ 279,448
Total $1,720,904
The Professional Services Agreement to be awarded to Berg and Associates Inc. is for
an amount not to e xceed $ 176,461 (including a 10% contingency). Funds are available
in the FY 2016 -17 Capital Improvement Program budget . The contract will be charged
to the following accounts :
Account Number Account Name Amount
C250136.589000 Water Main Replacement $1 5 5,909
M250152.589000 Annual St Resurf/Sidewalk $ 20,552
Total $17 6 ,46 1
Prepared By: Tom Shahbazi, Civil Engineer
Approved
Forwarded to Council
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Attachments:
A. Staff Report November 24, 2015
B. GRFCO Bid Protest
C. City Engineer Bid Protest Response Letter
Reference:
Contract No. 10346
(CCS)
&
Contract No. 10347
(CCS)