SR 09-10-2019 3E
City Council
Report
City Council Meeting: September 10, 2019
Agenda Item: 3.E
1 of 4
To: Mayor and City Council
From: Susan Cline, Director, Public Works, Engineering and Street Services
Subject: Approval of first Modification to Contract No. 10733 (CCS) with Michels
Pipeline Construction for Water Main Replacement Project
Recommended Action
Staff recommends that the City Council:
1. Authorize the City Manager to negotiate and execute a first modification to
contract #10733 (CCS) in the amount of $1,186,875 (including $237,375
contingency) with Michels Pipeline Construction, a Wisconsin-based company,
for the emergency replacement of 1,350 linear feet of water main pipeline on
Ocean Avenue from Wilshire Boulevard to Washington Avenue for the Public
Works Department. This will result in an amended contract with a new total
amount not to exceed $6,245,667.
2. Authorize the City Manager to negotiate and execute a first modification to
professional services contract #10760 (CCS) in the amount of $50,000 (including
a 10% contingency) with MNS Engineers, Inc., a California-based company, to
provide construction management services for water main pipeline on Ocean
Avenue from Wilshire Boulevard to Washington Avenue for the Public Works
Department. This will result in an amended contract with a new total amount not
to exceed $450,000.
Summary
The City replaces water mains every one-hundred years to ensure the reliable delivery
of safe potable water to over 27,000 customers. Last month, two water main breaks
occurred on Ocean Avenue due to deterioration as a result of corrosive soils, requiring
emergency repairs. While these breaks were promptly addressed and immediate
repairs have been made, staff recommends additional measures, including replacing
the entire pipeline along Ocean Avenue between Wilshire Boulevard and Washington
Avenue (1,350 linear feet) to avoid additional pipe failures. This repair work is in
addition to the budgeted water main replacement work being done by Michels Pipeline
Construction. Therefore, staff recommends a first modification to the contract with
Michels Pipeline Construction in the amount of $1,186,875 (including contingency) for
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the emergency replacement of 1,350 linear feet of water mains on Ocean Avenue, for a
new total amount not to exceed $6,245,667. Staff also recommends a first modification
to the contract with MNS Engineers, Inc. for construction management and inspection
services for this work in the amount of $50,000 (including a 10% contingency) for a new
total amount not to exceed $450,000.
Discussion
The City operates and maintains a water distribution system that consists of 205 miles
of water mains (ranging from 6 inches to 36 inches in diameter), fire service lines, fire
hydrants, valves, service laterals, and water meters. Water mains can break because of
age, material, and soil conditions, resulting in the loss of water, pavement damage, road
closures, and interruptions to water service. These are rare in Santa Monica due to the
regular replacement of water mains, and staff restores water service to the public and
repairs the pavement as quickly as possible.
Two water main breaks occurred on Ocean Avenue between Wilshire Boulevard and
Washington Avenue on Saturday, August 10 and Wednesday, August 14, 2019. The
pipe sections were temporarily repaired by city crews within eight hours. Staff is now
proactively replacing the entirety of the corroded pipeline as part of the annual water
main replacement project. Service will remain uninterrupted. The pipeline length being
replaced is approximately 1,350 linear feet and 12 inches in diameter. Both
recommended contract modifications would enable the City to complete the emergency
pipe replacement in addition to the original scope of work for the Annual W ater Main
Replacement Project approved by Council on August 14, 2018 (Attachment A).
3 of 4
Past Council Actions
08/14/2018 (Attachment A) Council awarded Bid #2464 to Michels Pipeline
Construction and authorized a contract to provide
construction services for the fiscal year 2018/19
Water Main Replacement Project.
10/09/2018 (Attachment B) Council awarded RFP #2483 to MNS Engineers, Inc.
and authorized a professional services contract to
provide construction management and inspection
services for the fiscal year 2017/18 Annual
Wastewater Main Improvements Project.
Financial Impacts and Budget Actions
Staff seeks authority to approve funding from the Water Fund to increase the amount of
the contract with Michels Pipeline Construction for the emergency replacement of 1,350
linear feet of water main pipeline on Ocean Avenue from Wilshire Boulevard to
Washington Avenue. Additionally, staff seeks the authority to approve funding from the
Water Fund to increase the amount of the contract with MNS Engineers, Inc. for
construction management services for the water main pipeline on Ocean Avenue from
Wilshire Boulevard to Washington Avenue.
Agreement Modification Request
Agreement # Contract
Authorized
Amount
Modified Request
Amount
FY 2019-20 Budget
CIP Account #
Total Revised
Contract
Amount
10733 (CCS) $5,058,792 $1,186,875 C5004840.689000 $6,245,667
10760 (CCS) $400,000 $50,000 C5004840.689000 $450,000
Due to the urgent nature of this additional work, the requested amount is an estimated
not to exceed amount. The actual cost would be determined on a time and materials
basis in accordance with the executed construction contract.
4 of 4
Prepared By: Tom Shahbazi, Civil Engineer
Approved
Forwarded to Council
Attachments:
A. August 14, 2018 Staff Report
B. October 9, 2018 Staff Report
C. Michels Pipeline Construction, Oaks Initiative Disclosure Form
D. MNS Engineers Inc. Oaks Initiative Disclosure Form
City Council
Report
City Council Meeting: August 14, 2018
Agenda Item: 3.E
1 of 6
To: Mayor and City Council
From: Susan Cline, Director, Public Works, Civil Engineering
Subject: Award Construction Contract for 2018 Water Main Replacement
Recommended Action
Staff recommends that the City Council:
1. Award Bid #2464 to Michels Pipeline Construction, a Wisconsin-based company,
to provide construction services for the 2018 Annual Water Main Replacement
Project;
2. Authorize the City Manager to negotiate and execute a contract with Michels
Pipeline Construction, in an amount not to exceed $5,058,792 (including a 15%
contingency);
3. Authorize the Director of Public Works to issue any necessary change orders to
complete additional work within contract authority.
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 Water Main Replacement Project, the Water Resources
Division routinely replaces water mains, typically focusing on replacing the oldest, to
ensure an adequate, high quality, and reliable supply of water to customers. Staff
recommends Michels Pipeline Construction, a division of Michels Corporation, to
provide construction services for the 2018 Annual Water Main Replacement Project
(Project) in an amount not to exceed $5,058,792.
Discussion
During the past several 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
2 of 6
Program. This increased investment in the City’s water main replacement capital
program was intended to replace 10,000 linear feet of water main and reduce the
pipeline replacement period from a 200-year cycle to a 100-year cycle as recommended
in the 2014 Sustainable Water Master Plan. However, the latest water main
replacement bid results received by the City revealed that a $4 million annual budget is
no longer sufficient for a 100-year replacement cycle. Table 1 illustrates the bids
received for water main replacement projects since 2010.
Table 1 – historic bids for City water main replacement projects
Project
No. Project LF Low bidders Total Cost Ave. cost per LF
SP2464 2017-18 5,750 $ 4,398,950.00 $ 765.03
SP2429 2016-17 - EPA 4,805 $ 2,467,000.00 $ 513.42
SP2383 2015-16 - Ocean Avenue 2,370 $ 1,496,438.00 $ 631.41
SP2297 2014-15 11,465 $ 4,132,341.00 $ 360.43
SP2127 2011 11,730 $ 2,208,850.00 $ 188.31
SP2214 2010 - Third Court 2,010 $ 838,894.00 $ 417.36
Significant cost increases materialized since the development of the Sustainable Water
Master Plan in 2014. Fluctuations in yearly costs can be attributed to many factors
including project scope and requirements, pipe locations, labor cost, and the
construction market. Staff met with the contractor to discuss the cost drivers, and the
feedback received is summarized in Table 2.
Table 2 – Construction Factors Affecting Water Main Replacement Costs
Factor Description Effects
Geographic Location Travel times in and out of the City
are long.
Labor is more expensive because
contractors pay employees for their
travel time (but it’s not “productive,
on the job time”).
Trucking costs are higher due to the
longer travel times.
Majority of construction labor forces,
material suppliers, and landfills are
based well outside the West Los
Angeles vicinity.
3 of 6
Project Requirements Distribution lines generally run in the
alleys, where there is limited space
for the contractor to work.
Limited space restricts the
contractor’s production rate. It also
requires that the new mains be
located in the same location as the
existing, which necessitates the use
of a temporary high line (as opposed
to leaving the old main operational
while the new main is installed).
Trench Backfill Concrete slurry backfill (slurry) is
specified for trench backfill.
Slurry is a strong backfill material,
but it is expensive. The use of slurry
requires that the spoils be hauled
away and slurry be hauled in (see
location above).
Traffic Control This includes engineered traffic
control plans in the project’s bid
package.
The engineered traffic control plan
results in a costlier site set-up for the
contractor.
Its geographic location is beyond the City’s control and the need for a temporary high
line in project requirements is dictated by the location where pipe segment needs to be
replaced as explained in table 2. Although the cost for this specific project does not
reflect a 100-year replacement cycle, staff would pursue updating the City’s trench
backfill and traffic control requirements to influence positive cost impacts under this
contract and future replacement projects.
This Project would replace 5,570 linear feet of water mains, 141 domestic service lines
and meters, 14 fire service lines, 11 fire hydrants and 59 water valves in the following
street segments:
Street Name From To Linear Feet
Pico Blvd 4th Street Main Street 1,000
7th Court Santa Monica Blvd Broadway 700
Pier Avenue Main Street 2nd Street 370
Fraser Avenue Neilson Way Ocean Front Walk 700
Hart Avenue Neilson Way Ocean Front Walk 700
Wadsworth Avenue Neilson Way Ocean Front Walk 700
4 of 6
City staff selected these segments for the replacement for 2018 Annual Water Main
Replacement Project using the information gathered from the Business Case Evaluation
Study Report, Video Inspection and Pipeline Condition Assessment Report, and the
City’s maintenance records (Attachment A).
Vendor Selection
Bid Data
Bid Posting Date Bid Posted On
Bid Advertised In
(City Charter &
Municipal Code)
# of Vendors
Downloaded
# of
Submittals
Received
Date
Publicly
Opened
5/31/2018 City's Online Bidding Site Santa Monica
Daily Press 53 6 7/3/2018
Submittals Received Vendor Selection Recommendation
Michels Pipeline Construction $4,398,950 Municipal Code SMMC 2.24.072
Sully-Miller Contracting
Company $4,650,000 Evaluation Criteria
Price, previous experience,
ability to deliver, quality of
product, and compliance with
City specifications. Colich and Sons, LP $4,762,350
Blois Inc. $4,802,401 Best and Lowest Bidder Michels Pipeline Construction
Dominguez General Engineering $4,930,400
Mike Perlich and Sons, Inc. $5,479,900
Best Bidder Justification
Bids were evaluated based on the criteria in SMMC 2.24.072, including price, previous
experience, ability to deliver quality of product and compliance with City specifications.
Michels Pipeline Construction has completed numerous similar pipeline projects for
various agencies throughout the United States. Locally, Michels Pipeline Construction
Vicente Place North Ocean Avenue Appian Way 350
17th Street Robson Avenue Pier Avenue 1,050
Total 5,570 Feet
5 of 6
have been providing water main replacement services for the cities of Pasadena and
Santa Ana. Staff contacted the cities of Pasadena and Santa Ana, and respondents
reported that they are satisfied with Michels Pipeline Construction’s performance and the
projects are progressing on schedule.
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
November 22, 2016
(Attachment B)
Authorized an increase in CIP budget appropriation of $2 million
per fiscal year (for a total annual allocation of $4 million) for the
Water Main Replacement Program
November 28, 2017
(Attachment C)
Authorized the City Manager to negotiate and execute a
professional service agreement with Cannon Corporation for the
design of the Water Main Replacement Project.
Financial Impacts and Budget Actions
Staff seeks authority to award a contract with Michels Pipeline Construction, a division
of Michels Corporation to provide construction services for the 2018 Annual Water Main
Replacement Project.
Contract Request
Request Amount
FY 2018-19 Budget
CIP Account # Total Contract Amount
$5,058,792 C5004840.689000 $5,058,792
6 of 6
Prepared By: Tom Shahbazi, Civil Engineer
Approved
Forwarded to Council
Attachments:
A. City of Santa Monica 5yr CIP Business Cases Evaluation Study Report
B. November 22, 2016 Staff Report
C. November 28, 2017 Staff Report
D. City of Santa Monica Oaks Initiative Disclosure Form
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
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Project No. SP2483
B-3APPENDIX B. REQUIRED FORMS
(Attachment A)
City of Santa Monica
Oaks Initiative Disclosure Form
All persons or entities receiving public benefits defined below from the City of Santa Monica
shall provide the names of trustees, directors, partners and officers and names of those with
more than a 10% equity, participation or revenue interest. This information is required by City
Charter Article XXII—Taxpayer Protection.
Name of Entity: ____________________________________________
NAME(S) OF PERSONS OR ENTITIES RECEIVING PUBLIC BENEFIT:
NAME(S) OF TRUSTEES, DIRECTORS, PARTNERS, AND OFFICERS:
NAME(S) OF THOSE WITH MORE THAN A 10% EQUITY, PARTICIPATION OR
REVENUE INTEREST:
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.
Prepared by: __________________________ Signature: ________________________
Date: __________________________ Title: ________________________
FOR CITY USE ONLY:
Bid/PO/Contract # ___________________________ Permit # _____________________________________
(1/06)
MNS Engineers, Inc.
MNS Engineers, Inc.
James A. Salvito, President and CEO; Mark Reinhardt, PLS, Vice President/Treasurer; Jeff Edwards, Vice President;
Shawn Kowalewski, PE, Vice President; Greg Chelini, PE, Vice President; Miranda Patton, PE, Director of Business
Development/Secretary.
James A. Salvito, President and CEO; Mark Reinhardt, PLS, Vice President/Treasurer.
Greg Chelini
July 23, 2019 Vice President
REFERENCE:
Modified Contract No. 10733
(CCS)
&
Modified Contract No. 10760
(CCS)