SR 08-27-2019 3G
City Council
Report
City Council Meeting: August 27, 2019
Agenda Item: 3.G
1 of 4
To: Mayor and City Council
From: Susan Cline, Director, Public Works, Architecture Services
Subject: Award Bid and enter into Master Services Agreement for General
Construction Services
Recommended Action
Staff recommends that the City Council:
1. Award Bid #SP2524 to nine California-based general contractors to provide as-
needed general construction services on various projects for the Public Works
Department.
2. Authorize the City Manager to negotiate and execute an as-needed master
services agreement with nine general contractors in an amount not to exceed
$5,000,000 over a five-year period for each agreement, subject to Council
approval of the biennial operating budget and the biennial capital improvement
program budget which would allow appropriation of funds for any task order
issued under each as-needed master services agreement.
Summary
Timely delivery of high quality projects at the best price is the City’s long-standing
approach to public construction contracting. Santa Monica Municipal Code Section
2.24.220(g) (Public Works Contracts) allows the City Council to award as-needed
service agreements (Master Services Agreements or MSAs) to prequalified contractors
for construction, maintenance or repair services in amounts not to exceed $5 million
over a five-year period. MSAs enable the City to complete administrative procedures for
procurement and contracting ahead of time and subsequently allow for timely delivery
as service needs occur. Staff recommends awarding nine as-needed MSAs for various
operations and capital improvement projects for the Public Works Department.
Discussion
The proposed agreements would enable the Public Works Department to expedite the
commencement of work by an estimated 20-27 weeks because most of the
administrative work in the procurement process, including vendor evaluation,
2 of 4
prequalification, authorization, and contract execution, would be completed upfront. This
would result in the acceleration of the commencement of small, relatively simple Public
Works projects, decrease the risk of potential escalation costs, and reduce the amount
of staff time spent on procurement for each individual project.
Staff conducted a process to pre-qualify contractors to provide general construction
services for various Public Works projects for five categories of work: interior
remodels/tenant improvements, exterior building renovations, parks/playgrounds/site
work, general engineering, and pier work. After the City Council’s approval in October
2018, only one contractor agreement was executed in two of the five categories. Having
completed this second solicitation, staff is recommending additional contractors in order
to obtain better competitive pricing from all five categories.
Past Council Actions
10/08/2018
(Attachment A)
Second Reading and Adoption of Ordinance Modifying Section
2.24.071 of the Santa Monica Municipal Code to Authorize As-
Needed Services Agreements for Public Works Projects
09/11/2018
(Attachment B)
Introduction and first reading of Ordinance amending Santa Monica
Municipal Code Section 2.24.071 to update Public Works Contracts
requirements; Award of Bid #SP2524 to eight general contractors to
provide as-needed general construction services; and Authorization
for the City Manager to execute a master on-call task order services
agreement with each pre-qualified contractor, once the ordinance
becomes effective
Vendor Selection
RFQual Data
RFQual
Posting Date
RFQual Posted
On
RFQual Advertised In
(City Charter & Municipal
Code)
# of Firms
Downloaded
# of
Submittals
Received
Date
Publicly
Opened
05/17/2019 City's Online
Bidding Site
Santa Monica Daily
Press 46 9 06/13/2019
Pre-qualified List Vendor Selection Recommendation
West Valley
Investment
Group
Waisman
Construction,
Inc.
Municipal
Code SMMC 2.24.190
Olympos
Painting, Inc.
Granite
Construction Evaluation
Criteria
Previous experience/technical competence,
answers to a questionnaire, references,
3 of 4
Company resumes of relevant staff, and Department
of Industrial Relations project experience
(labor compliance). Excel Paving
Company
Sully-Miller
Contracting
Company
Metro Builders
& Engineering
Group
MTM
Construction,
Inc.
W.A. Rasic
Construction
Justification to Short-List
A panel of staff from the Engineering and Street Services and Architecture Services
divisions of the Public Works Department rated all nine firms’ statements of qualifications
for general construction services. Staff deemed all statements acceptable and placed
them on a pre-qualified list. Attachment C shows the breakdown of the five categories
(interior remodels/tenant improvements, exterior building renovations,
parks/playgrounds/site work, general engineering, and pier work) each vendor is pre-
qualified to perform as-needed work. Staff recommends awarding an MSA to each of
these nine pre-qualified vendors. Staff will solicit bids from all pre-qualified contractors
prior to commencing work valued at more than $25,000.
Financial Impacts and Budget Actions
Staff seeks authority to award an as-needed Master Services Agreement with each of
the nine pre-qualified general contractors. All amounts are not to exceed $5,000,000
over a five-year period. Funding for existing projects to be completed under these MSAs
was approved by Council in the FY 2019-20 Adopted Budget. Future year funding is
contingent on Council budget approval. Expenditures would occur only upon issuance
of a task order by the Public Works Director to an MSA vendor listed below.
Master Services Agreement Request
Vendor
FY 2019-20 through FY 2023-24 Budget
Various Departments/CIP Account #
Total Contract
Amount
West Valley Investment Group Various $5,000,000
Olympos Painting, Inc. Various $5,000,000
Excel Paving Company Various $5,000,000
Metro Builders & Engineering Various $5,000,000
Waisman Construction, Inc. Various $5,000,000
Granite Construction Company Various $5,000,000
4 of 4
Sully-Miller Contracting Company Various $5,000,000
MTM Construction, Inc. Various $5,000,000
W.A. Rasic Construction Co, Inc. Various $5,000,000
Total $45,000,000
Prepared By: Phillip Ticun, CIP Project Manager
Approved
Forwarded to Council
Attachments:
A. October 9, 2018 Staff Report
B. September 11, 2018 Staff Report
C. Pre-Qualified ShortList
D. MTM Oaks Initiative Disclosure Form
E. W.A. Rasic Oaks Initiative Disclosure Form
F. Waisman Oaks Initiative Disclosure Form
G. West Valley Oaks Oaks Initiative Disclosure Form
H. Olympos Painting Oaks Initiative Disclosure Form
I. Excel Oaks Initiative Disclosure Form
J. Sully-Miller Oaks Initiative Disclosure Form
K. Granite Oaks Initiative Disclosure Form
L. Metro Oaks Initiative Disclosure Form
City Council
Report
City Council Meeting: October 9, 2018
Agenda Item: 7.A
1 of 1
To: Mayor and City Council
From: Lane Dilg, City Attorney, City Attorney’s Office
Subject: Second Reading and Adoption of Ordinance Modifying Section 2.24.071 of
the Santa Monica Municipal Code to Authorize As-Needed Services
Agreements for Public Works Projects
Recommended Action
Staff recommends that City Council adopt the attached Ordinance.
Executive Summary
At its meeting on September 11, 2018, the City Council introduced for first reading an
ordinance modifying Section 2.24.071 of the Santa Monica Municipal Code to authorize
as-needed services agreements for Public Works projects.
The ordinance is now presented to City Council for adoption.
Prepared By: Elsa Kapsinow, Executive Assistant to the City Attorney
Approved
Forwarded to Council
Attachments:
A. Ordinance - Public Works - Contracting - Second Reading - 10092018
City Council
Report
City Council Meeting: September 11, 2018
Agenda Item: 7.B
1 of 6
To: Mayor and City Council
From: Susan Cline, Director, Public Works, Architecture Services
Subject: Introduction and first reading of Ordinance amending Santa Monica Municipal
Code Section 2.24.071 to update Public Works Contracts requirements;
Award of Bid #SP2524 to eight general contractors to provide as-needed
general construction services; and Authorization for the City Manager to
execute a master on-call task order services agreement with each pre-
qualified contractor, once the ordinance becomes effective
Recommended Action
Staff recommends that the City Council:
1. Introduce for first reading the attached ordinance amending Santa Monica
Municipal Code Section 2.24.071 (Public Works Contracts) authorizing the use of
City Council approved Master As-needed Services agreements.
2. Award Bid #SP2524 to eight California-based general contractors to provide as-
needed general construction services on various Public Works projects including
Airport, Facilities, Engineering, and Architecture work.
3. Authorize the City Manager to negotiate and execute an As-needed Master
Services agreement with eight general contractors for a total amount not to
exceed $5,000,000 over a five-year period for each agreement, subject to
Council approval of the biennial operating budget and the biennial capital
improvement program budget which would allow appropriation of funds for any
task order issued under each as-needed master services agreement, once the
ordinance becomes effective.
Executive Summary
Achieving top quality and best price are the long-standing goals of public construction
contracting in Santa Monica. The Santa Monica Municipal Code (SMMC) Section
2.24.071 (Public Works Contracts) stipulates that every contract involving an
expenditure of more than $175,000 for public works projects must be competitively bid
and presented to the City Council for approval of the contract award prior to project
commencement. Unfortunately due to required legal steps involved in that process, a
bid award process takes 20 to 27 weeks depending on the complexity of the project. In
addition to extending the project completion timeline, the lengthy process burdens
2 of 6
staffing resources with paperwork and process without directly contributing to the goals
of quality and economy. To streamline the costly and inefficient process for smaller
projects, staff recommends an ordinance amending SMMC Section 2.24.071 to add an
alternate contracting method to deliver public works projects up to $1,000,000 to allow
the execution of eight As-Needed Master Services agreements (MSAs).
Background
On June 12, 2018, Council adopted the first year and approved the second year of the
Capital Improvement Program (CIP) FY 2018-20 Biennial Budget. The adopted CIP
Budget incorporated Santa Monica’s Framework for a Sustainable City of Wellbeing.
These projects will advance goals in five of the seven outcome areas, and address
Council’s strategic goals, particularly the Mobility strategic goal. In order to expeditiously
complete these projects while still maintaining a bala nce between quality and cost, the
Public Works Department performed an efficiency assessment to develop
recommendations on improving project delivery and ensuring that the expectations of
Council and the public are being met. This assessment built upon the Finance
Department’s overview of current procurement processes presented to Council in 2016.
Currently, all construction contracts over $175,000 are required to be competitively bid
and approved by the City Council. For projects estimated under $1,000,000,
commencing construction can take approximately 20-27 weeks from procurement to
contract execution for projects with little or no design work (Attachment A). The
efficiency assessment identified the use of MSAs as a way to improve efficiency and
expedite project delivery.
Discussion
The proposed ordinance would amend SMMC Section 2.24.071 to add an alternate
construction contracting/procurement approach which would allow the Public Works
Department to utilize MSAs to expedite the commencement of work. The ordinance
would authorize the City Manager, subject to certain conditions specified in the
ordinance, to enter into an MSA, and would authorize the Public Works Director, or her
designees, to issue task orders in amounts up to $1,000,000 for construction under
3 of 6
each MSA. Goals for this new approach include: 1) accelerating the commencement of
small, relatively simple public works projects, 2) increasing overall efficiency for the
procurement, contracting and project delivery methods used for small projects including
emergency work, and 3) accomplishing general construction services in a timelier
manner. If the ordinance is approved, the Finance and Public Works departments, and
the City Attorney’s Office will draft administrative guidelines to ensure competitive
bidding, appropriate environmental review and orderly implementation.
The MSA approach would work as follows:
1) City solicits general contractors through a request for qualifications including a
formal competitive bidding and advertisement process.
2) City establishes a list of pre-qualified contractors from which to select its MSA
contractors.
3) City presents the recommended MSA contractors to Council for approval to
negotiate and execute MSA contracts.
4) Once MSAs are executed, bids from at least three contractors would be solicited
for each task order.
5) All task orders would be awarded to the best bidder.
6) All projects under an MSA would have their own task order number for tracking
and reporting.
7) The Director of Public Works or his/her designees may issue task orders in
accordance with the terms and conditions of the MSA. Individual task orders shall
not exceed $1,000,000 and the cumulative amount of task orders under each
MSA shall not exceed $5,000,000.
8) All projects utilizing MSAs would be reviewed to ensure (i) appropriate
environmental review, (ii) that projects are funded by Council-adopted biennial
budgets, and (iii) that contractors adhere to all prevailing wage requirements .
9) Once a task order is completed, the task order amount would be tracked and
counted against each contractor’s maximum cumulative MSA amount.
10) Public Works would report back to Council annually by submitting an Information
Item every June. The Information Item would include a summary of all projects
completed per MSA including vendor names, amounts and task order numbers
4 of 6
as well as an evaluation of whether the revised process yielded the efficiencies
expected.
Staff believes using MSAs would improve project delivery and benefit the City by
shortening project timelines by an estimated 20-27 weeks, decreasing the risk of
potential escalation costs, reducing the amount of time staff spends on a project, and
facilitating a more accurate overall project schedule. Other municipalities such as the
cities of San Francisco, Los Angeles, and Anaheim have already adopted similar forms
of as-needed contracting ordinances to improve project delivery.
To expedite vendor selection, in the event that Council approves the recommended
ordinance, staff conducted a process to pre-qualify contractors to provide general
construction services on various public works projects for five categories of work:
interior remodels/tenant improvements, exterior building renovations,
parks/playgrounds/site work, general engineering, and pier work. Should Council
approve awarding bids to these MSA contractors, task orders issued pursuant to the
agreements entered would not exceed the current $175,000 threshold unless and until
the proposed ordinance became effective.
Vendor Selection
RFQ Data
RFQ Posting Date RFQ Posted On RFQ Advertised In
(City Charter & Municipal Code)
# of Firms
Downloaded
# of
Submittals
Received
Date Publicly
Opened
06/07/2018 City's Online
Bidding Site Santa Monica Daily Press 52 10 06/21/2018
Pre-qualified List Vendor Selection Recommendation
John S. Meek
Company, Inc.
Kasa
Construction,
Inc.
Municipal Code SMMC 2.24.072
Judge Netting,
Inc. Ramco
Evaluation
Criteria
Previous experience/technical
competence, answers to a
questionnaire, references, resumes
of relevant staff, and DIR project
experience (labor compliance).
Cushman
Contracting
Corporation
Blois
Construction,
Inc.
5 of 6
Kemcorp
Construction,
Inc.
GSE
Construction
Company, Inc.
Justification to Short-List
Eight of the 10 statements of qualifications received for general construction services
were rated and deemed acceptable and were placed on a pre-qualified list. Attachment B
shows the breakdown by vendor on which of the five categories (interior remodels/tenant
improvements, exterior building renovations, parks/playgrounds/site work, general
engineering, and pier work) each vendor is pre-qualified to perform as-needed work.
These eight pre-qualified vendors were ranked highly and are recommended to enter into
a master services agreement. Bids will be solicited from all pre-qualified contractors prior
to performing work valued at more than $10,000. Concept Consultants and Graph
Company, the ninth and tenth vendors, did not meet the criteria to be placed on the pre-
qualified list due to inaccurate submissions; hence, these vendors are not recommended.
Financial Impacts and Budget Actions
Staff requests authority to award a Master As-needed Services agreement with each of
the eight pre-qualified general contractors. All amounts are not to exceed $5,000,000
over a five-year period. Funding for existing projects to be completed under these MSAs
was approved by Council in the FY 2018-19 Adopted Budget. Future year funding is
contingent on Council budget approval. Expenditures would occur only upon issuance
of a task order by the Public Works Director to an MSA vendor, listed below.
Master Services Agreement Request
Vendor
FY 2018-19 through FY 2022-23 Budget
Various Departments/CIP Account #
Total Contract
Amount
John S. Meek Company, Inc. Various $5,000,000
Judge Netting, Inc. Various $5,000,000
Cushman Contracting Corp. Various $5,000,000
Kemcorp Construction, Inc. Various $5,000,000
Kasa Construction, Inc. Various $5,000,000
Ramco Various $5,000,000
Blois Construction, Inc. Various $5,000,000
GSE Construction Company, Inc. Various $5,000,000
Total $40,000,000
6 of 6
Prepared By: Phillip Ticun, CIP Project Manager
Approved
Forwarded to Council
Attachments:
A. Procurement Timeline
B. SP2524 - General Contractor Services Pre-Qualification List
C. John S Meek Oaks Form
D. Judge Netting Oaks Form
E. Cushman's Contracting Oaks Form
F. Kemcorp Oaks Form
G. KASA Oaks Form
H. RAMCO Oaks Form
I. GSE Construction Oaks Form
J. Blois Construction Oaks Form
K. Ordinance - Public Works - Contracting - 09112018
A
p
p
e
n
d
i
x
5
0
REFERENCE:
Agreement Nos. 10920 - 10928
(CCS)