SR 06-25-2019 3M
City Council
Report
City Council Meeting: June 25, 2019
Agenda Item: 3.M
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To: Mayor and City Council
From: Susan Cline, Director, Public Works, Civil Engineering
Subject: Award FY 2018-19 Water Main Replacement Project Agreements
Recommended Action
Staff recommends that the City Council:
1. Award Bid #2594 to Dominguez General Engineering, Inc., a California-based
company, to provide construction services for the fiscal year 2018-19 annual
Water Main Replacement Project;
2. Authorize the City Manager to negotiate and execute a contract with Dominguez
General Engineering, Inc. in an amount not to exceed $5,677,607 (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. Award RFP #2594 to Berg and Associates Inc., a California-based company, for
construction observation services for the fiscal year 2018-19 annual Water Main
Replacement Project;
5. Authorize the City Manager to negotiate and execute a professional services
agreement with Berg and Associates, Inc. in an amount not to exceed $295,315
(including a 15% contingency);
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Summary
To maintain the safety and reliability of the City’s water deliveries to Santa Monica
homes and businesses, pipelines nearing the end of their useful lives need to be
replaced. As part of the annual W ater Main Replacement Project, the Water Resources
Division routinely replaces approximately two miles of water main segments, typically
focusing on the oldest segments of the water supply network, to safeguard against
water leaks and water main failures. Staff recommends Dominguez General
Engineering, Inc. to provide construction services for the fiscal year 2018-19 annual
Water Main Replacement Project in an amount not to exceed $5,677,607 (including a
15% contingency. Staff also recommends Berg and Associates, Inc. to provide
construction observation services in an amount not to exceed $295,315 (including a
15% contingency).
Discussion
The City operates and maintains 205 miles (1,082,400 linear feet) of water distribution
mains with pipeline sizes ranging from 6 to 36 inches in diameter. The water distribution
system consists of transmission main lines, distribution main lines, fire service 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. The
City’s approach is to replace 10,000 linear feet of pipeline each fiscal year to meet the
100-year replacement cycle recommended by the Sustainable Water Master Plan.
Escalating construction costs over the years has impacted the annual water main
replacement cycle. On November 22, 2016, the City Council authorized increasing the
water main replacement project budget from $2 million per fiscal year, as modeled in
the 2015 water rate study, to $4 million per fiscal year to return to a 100-year
replacement cycle as recommended in the City’s Sustainable Water Master Plan
(Attachment A). However, the latest water main replacement contract award returned
bids of $600 to $700 per linear foot, requiring a $6 million per year water main capital
improvement budget to stay on a 100-year replacement cycle. The increased budget
can be attributed to an escalation in construction costs due to a strong construction
market and tight labor supply, which forces contractors to pay more for labor. On
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January 8, 2019, the City Council authorized the full implementation of the 2015 water
rate increase, which will increase the annual water main replacement budget to $6
million and allow the City to continue to implement the 100-year water main
replacement cycle (Attachment B).
This project would replace 10,800 linear feet of water mains, 120 domestic service lines
and meters, nine fire service lines, 16 fire hydrants, 71 water valves and four water
sampling stations in the following street segments:
City staff selected these street segments for replacement based on their age, capacity
and City’s maintenance records.
Past Council Actions
November 22, 2016
(Attachment A)
State of the Water Fund Report and 2017 Water Rate
Adjustment
January 8, 2019
(Attachment B)
2019 Water Rate Adjustment
Street Name From To Linear Feet
Cedar Street Lincoln Blvd 11th Street 980
Pico Blvd Lincoln Blvd Euclid Street 1925
Pico Blvd 16th Street 18th Street 1315
Montana Avenue 15th Court 18th Street 1190
Idaho Avenue 23rd Street 25th Street 900
20th Street Santa Monica Blvd Broadway Avenue 685
Santa Monica Place
South
Princeton Street 26th Street 370
Ozone Street 11th Street Glen Court 440
Airport Avenue Walgrove Avenue South of Bundy
Drive
2510
Santa Monica Pier 485
Total 10,800
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Vendor Selection – Construction Services
Bid Data
Bid Posting
Date Bid Posted On Bid Advertised In # of Vendors
Downloaded
# of
Submittals
Received
Date
Publicly
Opened
4/1/2019 City's Online Bidding Site Santa Monica
Daily Press 1794 6 4/22/2019
Submittals Received Selection Criteria
Dominguez General
Engineering $4,937,050
Municipal
Code SMMC 2.24.180
Sully - Miller Contracting
Company $5,104,600
Evaluation
Criteria
Price, previous experience, ability
to deliver, quality of product, and
compliance with City
specifications.
Colich & Sons, LP $5,430,100
Teichert Energy & Utility Group $5,675,800
MNR Construction, Inc. $5,694,970 Best and
Lowest Bidder
Dominguez General
Engineering Grefco, Inc. $5,831,650
Best Bidder Justification
Dominguez General Engineering Inc., the lowest bidder, has completed numerous similar
pipeline projects for the cities of Beverly Hills, Long Beach, Glendora, Corona and
Inglewood. The references reported that they are satisfied with Dominguez General
Engineering Inc.’s performance.
Vendor Selection – Construction Observation Services
RFQual Data
RFQual
Posting
Date
RFQual Posted
On
RFQual
Advertised In (City
Charter &
Municipal Code)
# of Vendors
Downloaded
# of Submittals
Received
Date Publicly
Opened
9/22/2015 City's Online
Bidding Site
Santa Monica
Daily Press 124 25 10/19/2015
Pre-qualified List Selection Criteria
Arcadis Municipal
Code
SMMC 2.24.190
Hill International Evaluation
Criteria
Training/credentials/experience, competence/skill,
ability to perform services promptly, sufficiency of
financial/other resources, character/reputation, and
price.
MNS Engineers, Inc.
Berg and Associates, Inc.
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Justification to Short List
The top four firms (Arcadis, Berg and Associates Inc., Hill International and MNS
Engineers Inc.) were invited to submit bids in April 2019 for this project base d on the
selection criteria set forth in SMMC 2.24.190, with specific review of technical
competence, staffing capability, project approach, past performance, dispute resolution,
quality control, cost control, management services, customer service, and the ability to
meet required time frames.
RFP Data
RFP
Posting
Date
RFP Posted On
RFP Advertised In (City
Charter & Municipal
Code)
# of Vendors
Downloaded
# of
Submittals
Received
Date
Publicly
Opened
4/22/2019 City's Online
Bidding Site
Santa Monica Daily
Press 2 1 5/6/2019
RFPs Received Selection Criteria
Berg and
Associates, Inc. Municipal Code SMMC 2.24.190
Evaluation
Criteria
Training/credentials/experience, competence/skill, ability to
perform services promptly, sufficiency of financial/other
resources, character/reputation, and price.
Justification to Award
Berg and Associates Inc., was the only firm that submitted a proposal for construction
observation services. Berg’s proposed fee is reasonable based on similar projects we
have awarded in the past. Based on the selection criteria set forth in SMMC 2.24.190,
staff recommends Berg & Associates, Inc. as the best qualified firm to provide
construction observation services based on its qualifications a nd its directly related
experience providing similar services for municipal agencies.
Public Outreach
Public outreach during construction of this project would be provided by the City’s
construction observer consultant. Public outreach would include notifications distributed
to adjacent properties and the surrounding community on the scope of the project,
potential impacts including night work and schedule, with periodic updates and weekly
updates on the City’s “Know Before You Go” (KBUG) website and Monday editions of
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the Santa Monica Daily Press. Updates regarding the project would be provided on the
City’s website and various social media channels.
Properties impacted by the project would 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 subsequently 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 project specific
outreach campaign, including one-on-one coordination with impacted businesses and
residents, would commence prior to start of construction and continue throughout the
project.
Financial Impacts and Budget Actions
Staff seeks authority to award a contract with Dominguez General Engineering Inc., for
construction services for the FY 2018-19 annual Water Main Replacement Project and a
professional services agreement with Berg and Associates Inc. for construction
observation services for the FY 2018-19 annual Water Main Replacement Project.
There is $1,763,900 in FY 2018-19 funds available at Water Fund Capital Improvement
Program (CIP) account C5004840.689000. Funds of $6,100,000 are included in the FY
2019-20 Proposed Capital Improvement Program budget at account
C5004840.689000.Budget actions related to the FY 2019-21 Proposed Budget are
included in Item 9-A on the June 25, 2019 agenda.
Contract Request
Description Request
Amount
FY 2018-20 Budget
CIP Account #
Total Contract
Amount
Construction Services $5,677,607 C5004840.689000 $5,677,607
Construction
Observation Services $ 295,315 C5004840.689000 $ 295,315
$5,972,922 Total $ 5,972,922
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Prepared By: Tom Shahbazi, Civil Engineer
Approved
Forwarded to Council
Attachments:
A. November 22, 2016 Staff Report
B. January 8, 2019 Staff Report
C. Berg & Associates Oaks Initiative Disclosure Form
D. Dominguez General Engineering Oaks Initiative Disclosure Form
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.
Name(s) of persons or entities receiving public benefit:
Berg & Associates, Inc.
Name(s) of trustees, directors, partners, and officers:
Deborah Berg, President
Name(s) of persons with more than a 10% equity, participation, or revenue interest:
Deborah Berg, President
Prepared by: ____________________________Title: __________________________
Signature: ______________________________________ Date: ________________
Email: ____________________________________ Phone: ____________________
FOR CITY USE ONLY:
Bid/PO/Contract # ____________________________ Permit # ___________________________
Jenelle Saunders Director of Communications and Marketing
5/6/2019
jenelle@bergcm.com 310-548-9292
REFERENCE:
Contract No. 10869 - 10870
(CCS)