Item 6-D

City Council Meeting: 02-23-99 Santa Monica, California

TO: Mayor and City Council

FROM: City Staff

SUBJECT: Rejection of Bids Received for Project 7A and 8A, the Repair of Earthquake Damaged Sanitary Sewer Mains in Cloverfield Boulevard between Colorado Avenue and Pico Boulevard and in Pico Boulevard between Centinela Avenue and Main Street; Authorization to Negotiate and Execute an Amendment to Contract 7403 (CCS) to Include Project 7A and 8A Sewer Repair Work; and Authorization to Negotiate and Execute an Amendment to Contract 7404 (CCS) for Construction Management and Inspection of Project 7A and 8A Sewer Repair Work

Introduction

This report recommends that the City Council reject all bids received for the repair of earthquake-damaged sewer mains in Cloverfield Boulevard between Colorado Avenue and Pico Boulevard, and in Pico Boulevard between Centinela Avenue and Main Street, and authorize the City Manager to negotiate and execute an amendment in an amount not to exceed $2,298,882 to Contract 7403 (CCS) with Preussag Pipe Rehabilitation (PPR) to include the above-described sewer repair work. Staff also recommends that the City Council authorize the City Manager to negotiate and execute an amendment in an amount not to exceed $190,900 to Contract 7404 (CCS) with 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) reimburse the City for the cost of the repair work. FEMA prepared a Damage Survey Report for the work in Pico Boulevard and Cloverfield Boulevard, and subsequently agreed to reimburse the City for the costs of repairs.

This project will repair earthquake and non-earthquake-damaged sewers and maintenance access holes in Pico Boulevard in advance of the Pico Streetscape Project, as well as repair damaged sewers in Cloverfield Boulevard in advance of pending street improvement work. In addition to the eligible earthquake repair work, City staff has identified necessary non-earthquake and non-reimbursable sewer system upgrades which will be done as part of this construction project. This additional work is part of the City's annual sewer maintenance program funded by the City's Wastewater Fund. This work includes the repair of the maintenance access holes, replacement of existing obsolete access hole frames and covers, installation of additional access holes where required for maintenance purposes, and capacity upgrades throughout the project area.

Discussion

Construction

A Notice Inviting Bids was published on December 17 and 18, 1998 in The Sun, as well as posted on December 14 and 15, 1998 at City Hall, Police Department and at Main Library. A Notice Inviting Bids was also published in four construction journals, one electronic plan room and by one Internet advertising service. In addition, bidding documents were sent to eight women/minority-owned business enterprise associations (WMBE). Bid packages were requested by 22 contractors. The City Clerk's office received two sealed bids, which were publicly opened and read aloud on January 19, 1999, by the Deputy City Clerk.

Results were as follows:

The low bidder, Dames & Moore, has been found to be non-responsive to the City's qualifications requirements included in the Bidding Documents and Specifications. After discussions with Dames & Moore, they have requested that they be permitted to withdraw their bid. A copy of their letter is attached hereto (Exhibit A).

The second low bidder, Preussag Pipe Rehabilitation (PRP), has recently been awarded Contract 7403 (CCS), to carry out pipe rehabilitation work elsewhere in the City. In staff discussions with PRP representatives, it has been found that significant cost savings could be realized if sewer repair work required in Project 7A & 8A were added as an amendment to PRP's existing contract, rather than entering into a separate contract. PRP has indicated that they will carry out the work in Project 7A & 8A as an amendment to Contract 7403 (CCS) for the amount of $1,999,028. This represents a savings to the City of $134,634 from the second low bid due to the reduction in mobilization expenses and consolidation of overhead. Doing the work in Project 7A & 8A as an amendment will permit PRP to begin work on Pico Boulevard more quickly than if a separate contract were to be awarded. This quick start is important in order to avoid a delay in starting and completing the Pico Streetscape project.

Construction Management

In addition to authorizing an amendment for sewer repair work, this report recommends that the City Council authorize the City Manager to negotiate and execute an amendment to professional services Contract 7404 (CCS) with Harris & Associates for construction management and inspection, in the amount of $166,000. Of six professional services firms recently submitting proposals for construction management and inspection, Harris & Associates was found to be most responsive to the City's needs. Rather than entering into a separate contract with Harris & Associates, staff considers it prudent and most cost-effective to add inspection of Projects 7A & 8A to their existing construction management and inspection contract.

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.

The residents and businesses affected by this project will receive four informational letters outlining construction schedules for their neighborhood. The first letter will be sent one month prior to starting construction and will have overall information about the upcoming project. The second letter, sent 10 days prior to the start of the project, will be sent to the residents and businesses with specific information about the dates of construction in their area. The third letter will serve as a reminder two days prior to construction and the final letter will announce the completion of the project. Public calls with questions and concerns will be responded to 24 hours a day by the construction management firm. Residents and businesses will be provided a toll free telephone number in the informational letter.

Budget/Financial Impact

FUNDS REQUIRED FOR CONSTRUCTION CONTRACT

FEMA will contribute $1,818,663 to this portion of the project using the 13 Fund account numbers 13-500-402-39467-5501-13006 for $750,075; 13-500-402-39429-5501-13006 for $530,784; 13-500-402-39425-5501-13006 for $101,671; 13-500-402-39461-5501-13006 for $361,919; and 13-500-402-39455-5501-13006 for $74,214. The City will contribute $180,365 from account #31-760-661-20099-8900-99623, "Sewer Repair Project 7A/8A," to bring the contract total to $1,999,028. A 15% contingency of $299,854 will be set aside in account #31-760-661-20099-8900-99623.

FUNDS REQUIRED FOR PROFESSIONAL SERVICES CONTRACT

TOTAL FUNDS REQUIRED FOR CONSTRUCTION AND MANAGEMENT- $2,489,782

For the construction management of this project, $151,022 is available from FEMA in the following 13 Fund accounts: 13-500-402-39467-5506-13006 for $62,287; 13-500-402-39429-5506-13006 for $44,076; 13-500-402-39425-5506-13006 for $8,443; 13-500-402-39461-5506-13006 for $30,054; and 13-500-402-39455-5506-13006 for $6,162. The City will contribute $14,978 from account #31-760-661-20099-8900-99623, "Sewer Repair Project 7A/8A," to bring the contract total to $166,000. A 15% contingency in the amount of $24,900 will be set aside in account #31-760-661-20099-8900-99623.

For the FEMA portion of work, the City has approved DSRs in an amount that exceeds project costs for each associated account number. Sufficient budget authority for all of the contract expenses which are both eligible and not eligible for FEMA/OES reimbursement are listed in Exhibit B, which is attached to this staff report. A City Match account, #31-760-661-20099-8905-99124, sets aside 10% of the construction and construction management and inspection costs ($196,968) that FEMA retains until final audit, which may take several years.

Recommendation

Staff recommends that the City Council:

1. Reject all bids received for the repair of earthquake-damaged Sanitary Sewer Mains in Cloverfield Boulevard between Colorado Avenue and Pico Boulevard, and in Pico Boulevard between Centinela Avenue and Main Street;

2. Authorize the City Manager to negotiate and execute an amendment to contract number 7403 with Preussag Pipe Rehabilitation to include the above described work for an amount not to exceed $2,298,882;

3. Authorize the City Manager to negotiate and execute an amendment to contract number 7404 for professional services with Harris & Associates for construction management and inspection services for the above described work for an amount not to exceed $190,900;

4. Authorize the City Engineer to issue any necessary change orders to complete additional work within budget authority; and

5. Approve the use of Disaster Relief Funds as shown on Exhibit B.

Attachments: Exhibits A and B

Prepared By: Craig Perkins, Director of Environmental & Public Works Mgmt.

Anthony Antich, P.E., City Engineer

Eugenia Chusid, Civil Engineer Associate

EXHIBIT B

SPECIFIC ACCOUNT INFORMATION