SR 11-28-2017 3E
City Council
Report
City Council Meeting: November 28, 2017
Agenda Item: 3.E
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To: Mayor and City Council
From: Susan Cline, Director, Public Works, Civil Engineering
Subject: Award Professional Services Agreement for 2017 -18 Annual Water Main
Replacement Project
Recommended Action
Staff recommends that the City Council:
1. Award RFP #2464 to Cannon Corporation, a California-based company, to
provide design services, develop construction documents, and provide
engineering support during the construction of the Annual Water Main
Replacement Project for fiscal years 2017-18, 2018-19 and 2019-20;
2. Authorize the City Manager to negotiate and execute a professional services
agreement with Cannon Corporation, in an amount not to exceed $251,981
(including a 10% contingency) for one year, with two additional one-year renewal
options in an amount not to exceed $247,149 and $215,532 for the second and
third years respectively, for a total amount not to exceed $714,662 over a three-
year period, with future year funding contingent on Council budget approval.
Executive Summary
In order to maintain the safety and reliability of the City’s water deliveries to Santa
Monica homes and businesses, the Water Resources Division routinely replaces water
mains, typically focusing on replacing the oldest in the system. The Annual Water Main
Replacement Project would replace an average of 10,000 linear feet of water
distribution pipelines at various locations in the City each year over the next three years
for a total of 30,000 linear feet. Pipelines nearing the end of their useful lives need to be
replaced to ensure an adequate, high quality, and reliable supply of water to customers.
Pipelines identified for replacement are selected from a long-term replacement and
maintenance plan based on service records, condition, capacity demands, and age.
Staff recommends Cannon Corporation to provide engineering design services, develop
construction documents, and provide engineering support during the construction phase
of the project for an amount not to exceed $714,662 over a three-year period.
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Background
During the past 15 years, the City has allocated an average of $2 million per fiscal year
for water main replacement projects. The $2 million budget supported a 200-year
replacement cycle, meaning pipelines were expected to last 200 years before being
replaced. On November 22, 2016, City Council authorized an increase of $2 million per
fiscal year (for an annual allocation of $4 million) for the Water Main Replacement
Program (Attachment A). This increased investment in the City’s water main
replacement capital program supports a 100-year replacement cycle ($4 million per
year) as recommended in the 2014 Sustainable Water Master Plan.
Discussion
The City operates and maintains a 205-mile (1,082,400 linear feet) network of water
distribution mains with pipeline sizes ranging from six to 36 inches in diameter. The
City’s water system serves over 93,000 residential and business customers, providing
approximately 12 million gallons of water per day.
The water distribution system consists of transmission main lines, distribution main
lines, service laterals, water meters, valves, and fire hydrants. Over time the useful life
of all these components diminish due to age, soil conditions, and corrosion buildups. In
order to ensure the continuation of an adequate, high quality and reliable supply of
water to customers, the City takes a proactive approach in identifying and replacing
pipelines that are approaching the end of their useful lives. In 2011, the Water
Resources Division developed the Business Case Evaluation Study Report to identify
and prioritize the replacement of aged cast iron water mains. The study focuse d on the
oldest cast iron pipe installations built prior to the 1970s. The study provides the
estimated cost and likelihood of potential water main breaks while making
recommendations to replace and upgrade the aged water mains throughout the city.
In July 2017, the City hired JD7 Technologies (JD7) to conduct a video inspection,
pipeline condition assessment for potable water mains, and prepare a Video Inspection
and Pipeline Condition Assessment Report summarizing the findings. JD7 performed
the video inspection on pipeline segments identified by City staff in the Business Case
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Evaluation Study Report as potential candidates for replacement. This video inspection
of pipeline condition assessment was a subsequent effort to confirm that the segments
previously identified by City staff for replacement are indeed the most vulnerable
pipelines in the system. Staff also reviewed maintenance records to identify the most
problematic areas where unexpected low water pressure occurs.
Utilizing the information gathered from the Business Case Evaluation Study Report,
Video Inspection and Pipeline Condition Assessment Report , and review of the City’s
maintenance records, staff created a priority list of water distribution mains for
replacement and upgrades (Attachment D).
In FY 2017/18, approximately 10,000 lineal feet of water mains would be replaced:
7,700 lineal feet as part of this project and 2,300 lineal feet as part of the Airport Avenue
Improvement Project. In FY 2018-19 and FY 2019-20, approximately 20,000 lineal feet
of water mains would be replaced.
Consultant Pre-Qualification
On March 19, 2015, the City issued a Request for Qualifications (RFQ) to prequalify
consulting firms to provide pipeline design engineering services for various capital
improvement projects. The RFQ 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. A total of 100 firms downloaded the RFQ. The
following 19 consulting firms submitted proposals:
APA Engineering, Cannon Corporation, CivilSource, Civiltec, CWE Engineering,
JMC2, Kabara Engineering, Kimley-Horn, KPFF, Lee and Ro Inc., MNS Engineering,
NCE, Onward Engineering, Quantum Engineering, SA Associates, Stantec, TAIT and
Associates, Transtech, and Willdan and Associates.
Pre-qualification criteria included the firm’s technical competence, direct experience on
similar projects, qualifications of the proposed staff, the proposed staff’s experience,
staffing capabilities to meet the desired time frames, references, management
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structure, and sample work products. Staff from the Civil Engineering and Water
Resources Divisions reviewed all 19 proposals and in May 2015 prequalified the
following six consulting firms based on pre-determined criteria identified in the RFQ:
Lee and Ro In., Cannon Corporation, MNS Engineering, SA Associates, CWE
Engineering and APA Engineering. Under the RFQ, this list is valid until June 30, 2018.
Consultant Selection
On September 11, 2017, the City issued a Request for Proposals (RFP) to the six pre-
qualified engineering consulting firms to obtain design engineering services for the
Annual Water Main Replacement Project. On October 3, 2017, three proposals were
received from the following consulting firms: SA Associates, Cannon Corporation, and
CWE Engineering.
On October 11, 2017 a selection committee consisting of staff from the Civil
Engineering and Water Resources Divisions reviewed the proposals and ranked the
three firms. Evaluation was based on understanding of the project’s scope, approach
to the work, schedule and cost of services. Based on these criteria and criteria in
SMMC 2.24.073, staff recommends Cannon Corporation as the best qualified firm to
provide engineering design services for this project. Cannon Corporation demonstrated
extensive knowledge and experience with similar projects in urban and coastal
municipalities, including Golden State Water Company and the cities of Manhattan
Beach, Beverly Hills, Glendale, and Santa Monica. Cannon Corporation also
demonstrated through past projects its ability to offer experienced design teams that
can complete project designs in an expeditious manner and at competitive hourly
rates.
After design work is complete, staff would prepare the construction bidding documents,
advertise the project in accordance with City specifications, select a contractor, and
prepare a staff report to award the construction contract. The anticipated timeline for
the design phase of the project is approximately three months (January 2018 to late
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March 2018). The second phase of the project is the construction phase, which would
take approximately ten months after award of the contract by the City Council.
Financial Impacts and Budget Actions
The professional services agreement to be executed with Cannon Corporation is for an
amount not to exceed $714,662. Funds of $251,981 for the first year of the contract are
available in the FY 2017-18 Capital Improvement Program budget in the Water Fund
account C250136.589000. Future year funding is contingent on Council budget
approval.
Prepared By: Tom Shahbazi, Civil Engineer
Approved
Forwarded to Council
Attachments:
A. November 22, 2016 Staff Report
B. Segments of Water Mains to be Replaced
C. Oaks Form