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SR 10-09-2018 3D City Council Report City Council Meeting: October 9, 2018 Agenda Item: 3.D 1 of 7 To: Mayor and City Council From: Susan Cline, Director, Public Works, Civil Engineering Subject: Award Construction and Construction Management Contracts for FY 17/18 Annual Wastewater Main Improvements Recommended Action Staff recommends that the City Council: 1. Award Bid #SP2483 to Mike Prlich and Sons, Inc., a California-based company, to provide construction services for the FY 17/18 Annual Wastewater Main Improvements Citywide Project for the Public Works Department; 2. Authorize the City Manager to negotiate and execute a contract with Mike Prlich and Sons, Inc., in an amount not to exceed $3,430,000 (including a 15% contingency); 3. Authorize the Director of Public Works to issue any necessary change orders to complete additional work within contract authority. 4. Authorize the City Manager to negotiate and execute a professional services contract with MNS Engineers, Inc. in an amount not to exceed $400,000 (including a 12% contingency). 5. Authorize the Director of Public Works to issue any necessary change or ders and modifications to provide additional services within contract authority. Summary The FY 17/18 Annual Wastewater Main Improvements Citywide Project (Project) would replace 8,655 linear feet and line 2,135 linear feet of sewer pipeline to extend the useful life, reduce maintenance needs, and upgrade capacity of wastewater mains throughout the City. Pipelines identified for replacement and rehabilitation are selected based on factors including age, condition, and capacity demands. The Project would also include the construction of 21 new maintenance access structures (access holes) and rehabilitation of 57 access holes. Discussion The Water Resources Division operates and maintains an extensive sanitary sewer collection system including approximately 150 miles of wastewater pipelines. On 2 of 7 September 26, 2017, City Council approved a Sanitary Sewer System Master Plan (SSSMP), which evaluates sewer collection system infrastructure (sewer system) data such as age, pipe condition, capacity demands, and maintenance needs, and provides the City with a tool for planning sewer system improvements (Attachment A). Information from this Plan combined with video and visual inspection records by City sewer maintenance personnel are used to identify areas of the sewer system that require rehabilitation and upgrade. The Project includes improvements at selected areas based on the highest priority deficiencies in the sewer system. The proposed improvements consist of replacing substandard 6 -inch and 8-inch diameter pipe with new 8-inch diameter pipe, and replacing, constructing new, or rehabilitating / repairing manholes to ensure adequate and reliable future sewer maintenance activities. The project also implements cured-in-place pipe lining (lining) and rehabilitation of existing mainline pipes, which substantially extends the lifecycle of those existing segments. The citywide project locations are listed in Attachment B. 3 of 7 Vendor Selection – Construction Bid Data - Construction 4 of 7 Bid Posting Date Bid Posted On Bid Advertised In (City Charter & Municipal Code) # of Vendors Downloaded # of Submittals Received Date Publicly Opened 6/13/2018 City's Online Bidding Site Santa Monica Daily Press 76 11 7/17/2018 Submittals Received Selection Criteria Mike Prlich and Sons, Inc. $2,979,595 Municipal Code SMMC 2.24.072 Ramona, Inc. $3,421,905 Evaluation Criteria Price, previous experience, ability to deliver, quality of product, and compliance with City specifications. Michels Corporation $4,038,000 Vasilj Inc. $4,194,615 Best and Lowest Bidder Mike Prlich and Sons, Inc. MNR Construction, Inc. $4,555,154 Blois Construction, Inc. $4,589,585 GRFCO, inc. $4,593,000 PALP Inc dba Excel Paving $4,682,655 Colich & Sons LP $5,043,330 Sully-Miller Contracting Co $5,332,340 Clarke Contracting Co $6,228,915 Best Bidder Justification Bids were evaluated based on the criteria in SMMC 2.24.072, including price, previous experience, ability to deliver a quality work product and compliance with City specifications. Mike Prlich and Sons, Inc. has completed numerous similar pipeline projects for various agencies throughout the United States. Locally, Mike Prlich and Sons, Inc. has provided wastewater main replacement services for the cities of Los Angeles, Irvine, El Monte, Redondo Beach, Newport Beach, Laguna Beach and Santa Monica. Staff contacted the reference cities, and respondents reported satisfaction with Mike Prlich and Sons, Inc.’s performance. Mike Prlich and Sons offered the lowest bid mainly because the unit price cost for the replacement of substandard 6 -inch and 8-inch diameter pipe was much lower than other bidders. Additionally, Mike Prlich and Sons’ bid was very close to the engineer’s estimate of $3.01M. 5 of 7 Vendor Selection – Construction Management The Construction Management firm would provide inspection services for this project. The inspector would observe and inspect the work, ensure that construction adheres to project design plans and specifications, answer contractor questions in the field, verify quantities on contractor invoices, prepare daily reports, capture and maintain progress photos, coordinate work with various City departments, distribute construction notifications, and address questions or concerns from the public. City staff does not have the capacity to inspect and manage the construction of larger scale projects such as this one, which require full-time oversight. MNS Engineers, Inc. (MNS) was selected for this project from an approved shortlist of construction management firms. The shortlist was created by way of the Request for Qualifications (RFQ) process, and MNS submitted a proposal as part of the Request for Proposal (RFP) process and was subsequently selected. RFQ Data RFQ Posting Date RFQ Posted On RFQ Advertised In (City Charter & Municipal Code) # of Vendors Downloaded # of Submittals Received Date Publicly Opened 09/22/2015 City's Online Bidding Site Santa Monica Daily Press 124 25 10/19/2015 Pre-qualified List (for Underground Utilities Category) Vendor Selection Recommendation Arcadis Hill International Municipal Code SMMC 2.24.073 Berg CM MNS Engineers, Inc. Evaluation Criteria Technical competence, staffing capability, project approach, past performance, dispute resolution, quality control, cost control, management services, customer service, and the ability to meet the required time frame. Justification to Short-List Responding vendor proposals were evaluated and scored based on the above criteria and the top four were recommended as best qualified firms for the underground utility 6 of 7 category. RFP Data RFP Posting Date RFP Posted On RFP Advertised In (City Charter & Municipal Code) # of Vendors Downloaded # of Submittals Received Date Publicly Opened 05/17/2018 RFP Letter sent to 4 pre-qualified firms on short list RFP letter sent to 4 pre-qualified firms on short list 4 firms received RFP letters. 2 06/08/2018 RFPs Received MNS Engineers, Inc. Berg CM Justification to Recommend for Award of Contract A four-person review committee from the Civil Engineering Division evaluated the two proposals and subsequent interview responses based on the criteria listed in the RFQ section. Based on the evaluations, the committee recommends awarding the RFP to MNS Engineers, Inc. as the best qualified firm. Public Outreach If the Project is approved, City staff would provide public outreach during construction, including distributing notifications to adjacent properties and surrounding communities on the scope of the project, potential impacts and the schedule, with additional periodic updates. Past Council Actions September 26, 2017 (Attachment A) Approval of Sanitary Sewer System Master Plan Financial Impacts and Budget Actions Staff seeks authority to award contracts to Mike Prlich and Sons, Inc. and MNS Engineers, Inc. to provide construction and construction management services, respectively, for the FY 17/18 Annual Wastewater Main Improvements Citywide Project. This project is funded by the Wastewater Fund. Carry forward budget from the FY 2017 - 18 Capital Improvement Program (CIP) budget is now available in the FY 2018 -19 CIP 7 of 7 budget at the accounts below. Contract Request - Construction Request Amount FY 2018-19 Budget CIP Account # Total Contract Amount $3,430,000 C5104860.689000 $3,430,000 Total Construction $3,430,000 Contract Request – Construction Management Request Amount FY 2018-19 Budget CIP Account # Total Contract Amount $400,000 C5104860.689000 $400,000 Total Construction Management $400,000 Prepared By: Joshua Carvalho, Civil Engineer Approved Forwarded to Council Attachments: A. September 26, 2017 Staff Report (WebLink) B. FY 17-18 Wastewater Main Replacement Table C. MNS OAKS INITIATIVE FORM D. Mike Prlich and Sons Oaks Form FY 17/18 Wastewater Main Replacement Segments Street Name From To Linear Feet Grant Street 11th Street 14th Street 718 Pine Street 11th Street Euclid Street 450 Maple Street 14th Street 16th Street 550 Ashland Ave 6th Street Highland Ave 175 Prospect Ct End of Alley Marine Street 454 18th Ct Wilshire Place North California Ave 661 21st Street Virginia Ave Pico Blvd 566 Centinela Ave Pearl St Ocean Park Blvd 881 Harvard Ct Broadway Ave Santa Monica Place South 470 Santa Monica Place North Berkeley Ct Franklin Ct 387 California Place North 23rd Ct Chelsea Ave 474 9th Ct Alta Ave Marguerita Ave 659 23rd Ct Washington Place South Montana Ave 1,460 19th Ct End of Alley Olympic Blvd 37 Lincoln Ct End of Alley Olympic Blvd 449 Lincoln Ct Maple Place North Lincoln Blvd 264 Total 8,655 Sewer Lining Segments Chelsea Ave Arizona Ave Chelsea Pl 340 Franklin Ct Arizona Ave Santa Monica Place North 480 Georgina Place North 4th Street 7TH Street 1,315 Total 2,135 CITY OF SANTA MONICA OAKS INITIATIVE DISCLOSURE FORM In order to facilitate compliance with the requirements of the Oaks Initiative, the City compiles and maintains certain information. That information includes the name of any person or persons who is seeking a “public benefit.” If the “public benefit” is sought by an entity, rather than an individual person, the information includes the name of every person who is: (a) trustee, (b) director, (c) partner, (d) officer, or has (e) more than a ten percent interest in the entity. Public benefits include: 1. Personal services contracts in excess of $25,000 over any 12-month period; 2. Sale of material, equipment or supplies to the City in excess of $25,000 over a 12- month period; 3. Purchase, sale or lease of real property to or from the City in excess of $25,000 over a 12- month period; 4. Non-competitive franchise awards with gross revenue of $50,000 or more in any 12-month period; 5. Land use variance, special use permit, or other exception to an established land use plan, where the decision has a value in excess of $25,000; 6. Tax “abatement, exception, or benefit” of a value in excess of $5,000 in any 12- month period; or 7. Payment of “cash or specie” of a net value to the recipient of $10,000 in any 12- month period. Email: ____________________________________ Phone: ____________________ FOR CITY USE ONLY: Bid/PO/Contract # ____________________________ Permit # ___________________________ gchelini@mnsengineers.com 805.692.6921 Name(s) of persons or entities receiving public benefit: MNS Engineers, Inc. Name(s) of trustees, directors, partners, and officers: James A. Salvito, Mark Reinhardt, Jeff Edwards, Greg Chelini, Shawn Kowalewski, Miranda Patton Name(s) of persons with more than a 10% equity, participation, or revenue interest: James A. Salvito, Mark Reinhardt Prepared by: __Greg_____Chelini_____________________Title: __Vice_____President___________________ Signature: ______________________________________ Date: ___August___9,__2018________ REFERENCE: Agreement No. 10759 (CCS) & Agreement No. 10760 (CCS)