SR 08-28-2018 3C
City Council
Report
City Council Meeting: August 28, 2018
Agenda Item: 3.C
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To: Mayor and City Council
From: Susan Cline, Director, Public Works, Civil Engineering
Subject: Selection and Award of Sustainable Water Infrastructure Project Design/Build
Services Contract
Recommended Action
Staff recommends that the City Council:
1. Award RFP #SP2456 to Kiewit Infrastructure West Co., a Delaware-based
company, for the design-build services for the Sustainable Water Infrastructure
Project;
2. Authorize the City Manager to negotiate and execute a design-build services
agreement with Kiewit Infrastructure West Co. in an amount not to exceed
$7,500,000 to provide design services for the Sustainable Water Infrastructure
Project, including engineering, permitting, preparation of construction documents,
and submittal of a guaranteed maximum price for construction services; and
3. Authorize the Director of Public Works to issue any necessary change orders to
complete additional work within contract authority.
Summary
Santa Monica strives to be water self-sufficient and independent from costly imported
water. Imported water can be impacted by seasonal and regional droughts and has a
high environmental impact due to the energy demands of transporting the water from
distance locations. Water self-sufficiency will result in long-term adaptability and
resiliency to climate vulnerabilities by providing the security of a sustainable water
supply.
The Sustainable Water Infrastructure Project (SWIP) would produce approximately
1.5 million gallons/day (MGD) of new water for immediate non-potable reuse. In the
future, the water would also be used for indirect potable reuse via aquifer recharge upon
approval by the California State Water Resources Control Board. The project would
help offset the City’s costly imported water, which is currently 2.67 MGD. The project
would also protect the ocean and the City’s beaches from stormwater and urban runoff
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pollution. Staff recommends awarding a design-build services agreement to Kiewit
Infrastructure West Co. (Kiewit) in an amount not to exceed $7,500,000.
Discussion
The City’s water supply is a combination of 25% imported water and 75% local
groundwater. The City seeks to reduce its reliance on imported water through
conservation, increased reliance on its groundwater resources, and the integration of all
available local water resources by treating brackish/saline groundwater, municipal
wastewater, stormwater and urban runoff.
The SWIP would construct three new water treatment and storage facilities designed to
function as a cohesive and integrated system to harvest and treat nonconventional
water resources, including stormwater, brackish/saline impaired groundwater, and
municipal wastewater, for reuse for irrigation and toilet flushing. The three sites are
outlined in Table 1 and a detailed project description is provided in Attachment A.
Table 1
Location Proposed Improvement
Civic Center 1.0 MGD underground advanced water treatment facility
1.5 MG capacity underground stormwater harvesting tank
Memorial Park 3.0 MG capacity underground stormwater harvesting tank
Santa Monica Urban Runoff
Reclamation Facility
(SMURRF)
New reverse-osmosis (RO) membrane filtration system and
facility enhancements to produce 0.5 MGD treated water
Once the design phase is completed, staff would return to the City Council for approval
of the Guaranteed Maximum Price (GMP) amendment to complete the construction
phase.
Environmental Analysis
The California Environmental Quality Act (CEQA) Mitigated Negative Declaration, the
Mitigation Monitoring and Reporting Plan, and the National Environmental Policy Act
(NEPA) documents for the project were certified by the Santa Monica City Council on
September 27, 2016, and the Notice of Determination was filed at the State
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Clearinghouse on September 30, 2016. The SWIP was also presented to the Water
Advisory Committee on May 23, 2016 and the City’s Task Force on the Environment on
June 20, 2016.
Design-Builder Selection
Request for Qualifications (RFQ)
RFQ Data
RFQ Posting Date RFQ
Posted On
RFQ Advertised In
(City Charter &
Municipal Code)
# of
Vendors
Downloaded
# of
Submittals
Received
Date
SOQs
Received
11/22/2017
City's
Online
Bidding
Site
Santa Monica
Daily Press 99 3 01/17/2018
Pre-qualified List Vendor Selection Recommendation
Black & Veatch
Construction, Inc. Municipal
Code SMMC 2.24.073
J.F. Shea
Construction, Inc Evaluation
Criteria
Previous experience, financial stability, safety record,
qualifications of the key personnel and project
understanding. Kiewit Infrastructure
West Co.
Justification to Short-List
Staff from the Civil Engineering and Water Resources divisions evaluated the statements
of qualification (SOQs) based on the criteria in SMMC 2.24.073, including references,
experience and qualifications of key personnel, project understanding, financial stability,
safety record and knowledge and prior experience on design-build water treatment
projects. Based on these criteria, the firms were recommended as pre-qualified design-
build firms. Proposals were solicited from all pre-qualified firms prior to awarding the
design-build agreement.
Request for Proposals (RFP)
RFP Data
RFP Posting Date RFP Posted On # of Vendors
Downloaded
# of
Submittals
Received
Date
Proposals
Received
04/30/2018 City's Online Bidding
Site 3 3 06/14/2018
RFPs Received
Black & Veatch Construction, Inc.
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J.F. Shea Construction, Inc.
Kiewit Infrastructure West Co. (lowest construction mark-up)
Justification for Award
A selection panel of staff from the Civil Engineering and Water Resources divisions
evaluated the proposals and interviewed all three teams based on the following criteria:
Fee, qualifications, skills and ability of proposed team members, cohesiveness of the
team members, ability of the team to manage the complexity of the project, quality and
variety of the design, technical and management services offered, sophistication of the
organization and team, ability and methodology to successfully design and construct
according to a given design program within budget and under time constraints,
character, integrity, reputation, good judgment, training, experience and efficiency of the
team. The focus of the evaluation committee was to identify the most qualified and
cohesive team that has the best proposal and understanding of the project and is the
best fit for the SWIP. Kiewit provided the best ranked proposal and interview. Based on
the evaluation criteria and the interviews, the committee recommends the team of Kiewit
Infrastructure West Co. in association with Arcadis US, Inc. and Perc Water Corporation
as the best qualified firm to provide design and engineering services for the SWIP. The
recommended Kiewit team submitted a bid estimate with the lowest fixed construction
markup. Team qualifications and a cost comparison table are provided in Attachment B.
Past Council Actions
Council Meeting Date Action Type Description
9/27/2016 (Attachment C) Adoption of CEQA IS/MND Adopted CEQA Initial Study/ Mitigated Negative Declaration
Financial Impacts and Budget Actions
Staff seeks authority to award a design-build services agreement to Kiewit Infrastructure
West Co. for design and engineering services.
Agreement Request
Request Amount
FY 2018-19 Budget
CIP Account # Total Contract Amount
$7,500,000 C5106950.689000 $7,500,000
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Prepared By: Selim Eren, Civil Engineer
Approved
Forwarded to Council
Attachments:
A. SWIP Project Description & Site Layouts
B. Team Qualifications & Cost Comparison
C. September 27, 2016 Staff Report - Adopted CEQA Initial Study/ Mitigated
Negative Declaration (WebLink)
D. Kiewit West Infrastructure Oaks Initiative Form
ATTACHMENT A - SWIP PROJECT DESCRIPTION
The SWIP takes a forward-thinking approach to help secure the City’s water future by
leveraging use of existing City infrastructure and by linking together three new
distributed water reuse elements into a single cohesive and comprehensive project to
harvest, treat, and reuse non-conventional water resources. The SWIP would deliver
reliable advanced treated water to be injected into local groundwater basins for indirect
potable reuse via aquifer recharge, while meeting the non-potable reuse demands.
SWIP would produce 1,680 acre-feet per year (AFY) or 1.5 million gallons per day
(MGD) of new water for immediate non-potable reuse. In the future, the water would
also be used for indirect potable reuse via aquifer recharge upon approval by the
California State Water Resources Control Board. The project will help offset the City’s
costly imported water, which is currently 3,000 AFY or 2.67 MGD. SWIP is a critical first
step in the City’s strategy for achieving water sustainability.
The SWIP would protect Santa Monica Beaches by harvesting the polluted stormwater
which would otherwise reach the Santa Monica Bay. Two new harvesting tanks would
be built to harvest up to 4.5 million gallons (MG) of stormwater at each rain event.
Integrating the automated controls and real-time weather/storm forecasting to SWIP
optimizes storage management. SWIP would reduce the discharge of polluted
stormwater from the Pico-Kenter Outfall to the Santa Monica Bay. SWIP would
significantly improve the beach water quality, resulting in cleaner and healthier beaches,
an enhanced visitor experience, and move the City closer to compliance with the
National Pollutant Discharge Elimination System (NPDES) permit.
Civic Center Site:
The construction of the advanced water treatment facility (AWTF) and the cistern would
not impact the development and construction of the multipurpose sports field,
The preliminary site plan for the Civic Center area is shown in Figure 1 and includes the
connection of Civic Center Drive to Main Street. A new surface parking lot would allow
approximately 95 parking spaces.
Colorado Yard Public Landscape Division (Memorial Park) Site:
Staff received feedback at the May 26, 2018 and August 13, 2018 Public Workshops
and subsequently evaluated multiple tank locations within the Memorial park property,
considering impacts to the public, park operations, and project cost and schedule.
Based on the evaluation and feedback, the recommended tank location is shown in a
preliminary layout in Figure 2. This places the tank in the northeast corner of the park
property, under the Fisher Lumber yard and under the tennis courts. This location
results in no impact to the park programs in the ball fields, provides a reasonable area
for logistics and staging necessary for the construction of the tank, and results in no
schedule impacts and minimal cost impacts. If additional tank configurations or locations
emerge during the design phase with even further reduced impacts to Memorial Park,
its operations, project schedule, and project cost, staff would evaluate and pursue any
viable alternatives.
Santa Monica Urban Runoff Reclamation Facility (SMURRF) Site:
The SMURRF would be upgraded with the installation of a containerized reve rse
osmosis (RO) unit capable of treating both captured stormwater and brackish/saline
impaired groundwater for permitted non-potable distribution and future permitted indirect
reuse (aquifer recharge). The City is currently completing a 1.6 MG cistern through the
Clean Beaches Initiative (CBI) project which is going to harvest stormwater and
brackish groundwater.
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SUSTAINABLE WATER INFRASTRUCTURE PROJECT
CONCEPTUAL DESIGN
xxxx
MEMORIAL PARK LAYOUT
X
XXXX
XXXX
T-X
SP 2456
SELIM EREN, P.E.
CIVIL ENGINEER
RICK VALTE, P.E., CIVIL ENGINEER
CURTIS CASTLE, P.E.
PRINCIPAL CIVIL ENGINEER
X
xxxx
X
T-X
07/19/2018 Page 3 of 4
NEW CIVIC
CENTER &
MAIN STREET
CONNECTION
ADVANCED
WATER
TREATMENT
FACILITY
(below-ground)
1.5 MILLION
GALLON
STORWATER
TANK
(below-ground)
SURFACE
PARKING LOT
WITH APPROX.
95 CAR SPACES
CIVIC CENTER
MULTIPURPOSE
SPORTSFIELD
EARLY
CHILDHOOD
LABORATORY
CENTER
DROP OFF/ PICKUP
LOCATIONS
SUSTAINABLE WATER
INFRASTRUCTURE PROJECT
SWIP
CIVIC CENTER SITE LAYOUT
FIGURE 1
COLORADO YARD MEMORIAL PARK
SWIP 3.0MGD CISTERN LOCATION July 11, 2018
07/19/2018 Page 4 of 4
FIGURE 2
ATTACHMENT B
QUALIFICATIONS OF THE KIEWIT, PERC & ARCADIS TEAM
Kiewit is a leader in Design-Build execution, with some of its own design and engineering
capabilities. With Kiewit’s unique contractor led Design-Build team, they have successfully
delivered more than 1,665 Alternate Delivery projects over the last four decades. Kiewit
has established an excellent reputation with local clients and businesses dedicated to
water and wastewater treatment. Currently Kiewit’s team is building water projects for the
City of Los Angeles and Los Angeles Department of Water and Power, an Advance Water
Treatment Trial Facility for Metropolitan Water District, an Odor Control System for the
Orange County Sanitation District, and are completing a seawater desalination plan t for
the City of Santa Barbara. Kiewit also recently completed the Award-Winning Claude
“Bud” Lewis Carlsbad Desalination Plant for the city of Carlsbad. Kiewit is currently
providing Progressive Design-Build services to Poseidon for the Huntington Beach
Desalination Plant.
PERC Water Corporation is an innovative company that develops, designs, builds,
operates and manages water infrastructure throughout the Southwestern United States.
Creativity, innovation and advanced knowledge of water resources are c ornerstones of our
services leading to aesthetic, environmentally sustainable and practical engineering
solutions. Perc have designed over 60 water infrastructure projects over the past 20 years,
25 of which have built and placed into operation. Currently PERC Water is the contract
operator of 14 water and wastewater systems. PERC completed water recycling facilities
that has similar processes to the SWIP as follows: City of Santa Paula Water Recycling
Facility, City of Adelanto Wastewater Treatment Facility and City of Pacific Grove Water
Recycling Facility.
Arcadis US, Inc. has extensive design-build experience and understanding, including with
Kiewit in California on the Carlsbad Desalination Plant and Magnolia Trunk Sewer
projects. Arcadis provides industry-leading UV treatment and AOP design, start-up,
operations experience. Arcadis Successfully completed design in densely populated areas
such as Venice Beach, Newport Beach and New York. Arcadis provides odor control
expertise in densely populated areas (e.g., Los Angeles and Orange County and New
York City) and brings significant DDW permitting experience in Los Angeles County.
COST COMPARISON SUMMARY
The proposed cost of the Design phase (Phase I) fee is a lump sum of $7,500,000 for the
design and establishment of the Guaranteed Maximum Price (GMP) for the construction
phase. For the Construction phase (Phase II), Kiewit submitted the lowest fixed mark-up -
19.5% - and a construction GMP of $55.8 million was assumed. For Operations and
Maintenance phase (Phase III), the mark-up was 29.11% and only $286,000 over the
second ranked team. These assumptions allow comparison of probable fee differentials
over all three phases and total indicative project cost was $2.2 million lower than the
second ranked team. Overall Kiewit provided the best value based on lowest construction
markup of 19.5%.
SUSTAINABLE WATER INFRASTRUCTURE PROJECT - SP2456
DESIGN/BUILDER COST PROPOSAL EVALUATION
PHASE I - PRE-CONSTRUCTION
LUMP SUM 60% DESIGN FEE
PHASE II - CONSTRUCTION
LUMP SUM DESIGN 100%
DESIGN/BUILDER'S MARKUP FOR CONSTRUCTION 21.26%$11,863,080.00 26.06%$14,539,248.00 19.50%$10,881,000.00
DESIGN/BUILDER'S CONTINGENCY 8.75%$5,920,519.50 2.81%$1,567,980.00 4.00%$2,232,000.00
TOTAL PERCENT MARK-UP FOR CONSTRUCTION 31.87%$17,783,599.50 28.866%$16,107,228.00 23.50%$13,113,000.00
CITY'S ESTIMATED CONSTRUCTION COST
TOTAL ESTIMATED CONSTRUCTION COST
(PHASE II TOTAL)
PHASE III - OPERATION & MAINTENANCE (O&M)
DESIGN/BUILDER'S O&M MARK-UP 10.00%$150,000.00 6.00%$90,000.00 29.11%$436,650.00
CITY'S ESTIMATED ANNUAL O&M COSTS
TOTAL ESTIMATED ANNUAL O&M COST (PHASE III TOTAL)$1,650,000.00 $1,590,000.00 $1,936,650.00
$1,500,000.00 $1,500,000.00 $1,500,000.00
$75,272,519.50 $74,027,228.00 $71,413,000.00
BLACK & VEATCH J.F. SHEA KIEWIT
$55,800,000.00 $55,800,000.00 $55,800,000.00
$5,866,000.00
$1,688,920.00 $2,120,000.00 $2,500,000.00
$7,500,000.00$2,412,894.00
REFERENCE:
Agreement No. 10376
(CCS)