Item 6-A
Council Meeting: 9/16/97 Santa Monica, CA
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Award of Construction Contract for Repair of Earthquake
Damaged Sewer Mains in 1st through 12th Courts between
Georgina and Colorado Avenues and Authorization to
Negotiate and Execute a Professional Services Contract
for Construction Management and Inspection of the Sewer
Repair Work
Introduction
This report recommends that the City Council award a construction
contract for the repair of earthquake damaged sewer mains in 1st
through 12th Courts between Georgina and Colorado Avenues to
Insituform Southwest, Inc., the lowest responsible bidder, in the
amount of $4,651,285. Staff is also recommending that the
City Council authorize the City Manager to negotiate and execute
a professional services agreement in an amount not to exceed
$360,000 with the construction management firm of Harris &
Associates, Engineering Consultants, for construction management
and inspection services.
Background
The City of Santa Monica's sanitary sewer system sustained damage
during the Northridge Earthquake of January 17, 1994.
Immediately after the disaster, the City initiated a citywide
inspection program of the sewer system to identify the locations
that were damaged and to request that the Federal Emergency
Management Agency (FEMA) and the State's Office of Emergency
Services (OES) approve funds for the repair work. FEMA/OES has
approved $68 million for the repair of the earthquake damaged
sewer system throughout the City of Santa Monica.
This project will repair earthquake damaged sewer mains and
maintenance access holes at 16 locations throughout the City.
The damage was documented by FEMA/OES and City Staff during the
preparation of Damage Survey Reports (DSRs), which identify the
scope of repair work, approximate the cost of repair,
construction management and inspection, contingencies and City
staff time.
Two additional components of this project include repair to
maintenance access holes and upgrading the capacity of sewer
mains at certain locations. The capacity upgrade was designed as
a result of a citywide flow monitoring study. The City has
requested that these components be reimbursed by FEMA. This
portion of the project will be funded temporarily from the
Wastewater Fund until the supplemental DSRs are approved.
In order to minimize the impact of this construction project on
the public, the repair of the sewer mains will be done using
trenchless technology methods in locations where it is possible.
These proposed methods include the installation of a "liner"
inside the existing sewer pipe or the installation of a larger
pipe through the existing pipe by a method called "pipe
bursting." These methods are preferred to traditional
excavation/replacement methods since access to the area can be
maintained during construction thus minimizing disruption to
local residents and businesses. In areas where repair by
trenchless technology methods is not feasible, the existing
damaged sewer pipes will be replaced with new sewer pipe by
traditional methods.
In addition to the earthquake repair work, City staff has
identified necessary non-earthquake related sewer upgrades which
will be done as part of this construction project. This
additional work is typically part of the City's annual sewer
maintenance program which is funded by the City's Wastewater
Fund. This work includes the repair of the access hole bottoms,
replacement of existing obsolete access hole frames and covers,
and installing additional access holes where required for
maintenance purposes throughout the project area.
The residents and businesses affected by this project will
receive three information letters providing schedule information
in their neighborhood. The first letter will be sent 10 days
prior to the start of the project, the second letter will serve
as a reminder two days prior, and the final letter will announce
the completion of the project. Problems and complaints can be
responded to 24 hours a day by the construction management firm.
Residents and businesses will be provided an 800 telephone number
to report concerns.
Discussion
A Notice Inviting Bids was published on May 15 and May 16, 1997
in
The Outlook, as well as in four construction journals, one
electronic plan room and one Internet advertising consultant. In
addition, bidding documents were sent to eight women/minority-
owned business enterprise associations (WMBE). Bid packages were
requested by sixteen contractors. The City Clerk's office
received two sealed bids, which were publicly opened and read
aloud on June 24, 1997 by the Deputy City Clerk.
Results were as follows:
1. Insituform Southwest, Inc......................$4,651,285
2. U- Liner West .................................$4,986,667
City Engineer's Estimate ............$4,700,000
The Low bidder, Insituform Southwest, Inc., is currently under
contract with the City to repair earthquake damaged sewer mains
in Lincoln and 11th Courts between Georgina and Colorado Avenues.
City staff expects the project to be completed on schedule and
within budget. Insituform Southwest, Inc., has previously
completed sewer repair projects for the City. Insituform
Southwest, Inc., supplied the City with seven references and all
references reported that the Contractor's work was satisfactory.
The State Contractors' License Board verified that the
Contractor's license is current and in good standing.
In addition to the award of the construction contract, this
report recommends that the City Council authorize the City
Manager to negotiate and execute a professional services contract
for construction management and inspection of the construction
work detailed above. Requests for Proposals were sent to eight
construction management firms inviting them to submit proposals
for construction management and inspection services. The City
received five proposals. The recommended firm, Harris &
Associates, supplied the City with seven references and all
references reported that the consultant's work was excellent.
Budget/Financial Impact
FUNDS REQUIRED FOR CONSTRUCTION CONTRACT
Contract . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,651,285
Contingency (15%). . . . . . . . . . . . . . . . . . . . . . . . $697,693
SUB TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . $5,348,978
FUNDS REQUIRED FOR PROFESSIONAL SERVICES CONTRACT
Contract . . . . . . . . . . . . . . . . . . . . . . . . . . . . $360,000
Contingency (15%). . . . . . . . . . . . . . . . . . . . . . . . .$54,000
SUBTOTAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . $414,000
TOTAL FUNDS REQUIRED . . . . . . . . . . . . . . . . . . . . .$ 5,762,978
Sufficient budget authority for all of the contract expenses
which are eligible for FEMA/OES reimbursement at this time exists
in the Disaster Relief (13) Fund's "Citywide Sewer Repairs"
project account. In order that the FEMA/OES reimbursement -
eligible project expenses may be budgeted and tracked properly by
work site, it will be necessary to transfer appropriate amounts
of budget authority from the Citywide Sewer Repairs project
account (#13-500-661-86780-8820-13006) to individual 13 Fund
project accounts for each of the work sites. The total amount of
budget authority to be transferred out of the Citywide Sewer
Repairs account at this time equals $4,605,425. The distribution
of this amount to the new individual work site accounts is shown
with the "FEMA Portions" of the spreadsheets shown within Exhibit
A, which is attached to this staff report.
Currently, a portion of the earthquake related construction and
professional services recommended by this report have not been
approved by FEMA/OES for reimbursement. In order to finance this
portion of the project, the Wastewater Fund will be utilized
until supplemental DSRs are approved by FEMA. An amount of
$793,409 from the Wastewater Fund is available in account no. 31-
760-661-20098-8905-99124 ("Earthquake Sewer Repair - City
Match"). The Wastewater Fund will be reimbursed once
supplemental DSRs are approved.
The Wastewater Fund will also be utilized to finance non-
earthquake related maintenance work and the associated
construction management and inspection cost recommended by this
report. An amount of $164,144 is available in account no. 31-
760-661-20097-8900-99120 and an amount of $200,000 is available
in account no. 31-760-661-20098-8900-99920 for this work.
FEMA/OES will advance 90% of the $4,605,425 ($4,471,286 for
construction plus $134,139 for construction management) required
for the reimbursable portion of this project, and the remaining
10% will be provided after the project is completed and final
FEMA/OES inspection and audit, which may not take place for
several years. To finance the 10% amount during the interim, an
additional $460,543 is to be appropriated in the Wastewater
Fund's Earthquake Sewer Repair - City Match CIP Account (#31-760-
661-20098-8905-99124). Necessary Wastewater Fund appropriations
are also shown in detail within the attached Exhibit A.
Recommendation
Staff recommends that the City Council:
1. Award a contract for repair of earthquake-damaged sewer
mains in 1st through 12th Courts between Georgina and
Colorado Avenues to Insituform Southwest Inc., the lowest
responsible bidder, in the amount of $4,651,285;
2. Authorize the City Manager to negotiate and execute a
professional services contract with Harris & Associates for
construction management and inspection services in the
amount of $360,000;
3. Authorize the City Engineer to issue any necessary change
orders to complete additional work in conformance with the
Administrative Instructions on change orders; and
4. Approve the use of Disaster Relief Fund and Wastewater fund
resources as shown on Exhibit A.
Attachment (Available in the Santa Monica City Clerks Office or
at any of the Santa Monica Public Libraries): Exhibit A