Item 6-C

Council Meeting: October 12, 1999

Santa Monica, California

TO: Mayor and City Council

FROM: City Staff

SUBJECT: Recommendation to Award a Construction Contract and to Approve Modifications to the Agreements for Construction Management Services and Engineer of Record Services During Construction for the Ocean Avenue and Neilson Way Relief Sewer Project of the Coastal Interceptor Sewer

This report recommends that the City Council award a contract to KEC Engineering, Inc. in the amount of $6,766,440 for construction of sewer mains on Ocean Avenue and Neilson Way from Seaside Terrace to the southerly City limits. This report also requests that the City Council approve a Modification to Agreement Number 7476 (CCS) with Black & Veatch, Inc. in the amount of $499,608 for construction management services and approve a Modification to Agreement Number 7216 (CCS) with Montgomery Watson Americas in the amount of $148,990 for engineer of record services during construction for the Ocean Avenue and Neilson Way Relief Sewer Project of the Coastal Interceptor Sewer.

The Coastal Interceptor Sewer (CIS) collects sewage from the City of Los Angeles, north of the City limits and, with additional flows from the City of Santa Monica, carries it to the City of Los Angeles= Hyperion Plant for treatment. Many sections of the CIS were damaged by the 1994 Northridge earthquake and projects are underway to repair the damage. The cities of Santa Monica and Los Angeles are working jointly on this rehabilitation effort, with Santa Monica serving as the lead agency for that portion of the CIS within the City of Santa Monica. The entire CIS Project includes the Pacific Coast Highway sewer replacement, the Appian Way project, the Ocean Avenue to Pico Boulevard to Main Street sewer rehabilitation, the Ocean Avenue and Neilson Way Relief Sewer, and the Moss Avenue Pumping Station. The CIS Project also includes the replacement of two flow-monitoring stations which monitor flow in and out of the City at the northern and southern City limits. Construction has been completed for the replacement of Moss Avenue Pumping Station=s structural shell and the Appian Way project. Construction for the PCH Replacement Sewer and Moss Avenue Pumping Station Phase 2 projects are currently underway.

The Ocean Avenue and Neilson Way Relief Sewer project includes the installation of 6,600 feet of 54-inch diameter pipe and various junction structures under Ocean Avenue and Neilson Way from Seaside Terrace to the southerly City limits. Construction of the Ocean Avenue and Neilson Way Relief Sewer will allow the City to permanently divert flows away from the overburdened Ocean Avenue and Main Street portions of the CIS.

A Notice Inviting Bids for the construction of the Ocean Avenue and Neilson Way Relief Sewer Project was published in the Argonaut on July 8 and July 15, 1999. The Notice Inviting Bids, along with the plans and specifications, was also sent to eight construction journals and six women/minority business enterprise (WMBE) associations. Bid packages were requested by 20 contractors. The City Clerk=s Office received six sealed bids which were publicly opened and read aloud on August 25, 1999 by the Deputy City Clerk. The bid results were as follows:

Bubalo Construction Company, Inc. asked to be relieved of their bid due to a mistake. The Instructions to Bidders state that a bidder may be relieved of a bid due to mistakes only if the bidder can establish to the satisfaction of the City Engineer that all of the following circumstances exist:

(a) A mistake was made.

(b) The bidder gave the City written notice within five days after the opening of the bids of the mistake, specifying in the notice in detail how the mistake occurred.

(c) The mistake made the bid materially different from what the bidder intended it to be.

(d) The mistake was made in filling out the bid and not due to error in judgement or to carelessness in inspecting the site of the work, or in reading the plans and specifications.

After a thorough investigation by City staff, it has been determined that all of the above circumstances exist and that there is a valid basis for relieving Bubalo Construction Company of its bid.

This leaves the second low bidder, KEC Engineering, as the lowest responsible bidder. KEC Engineering, Inc. supplied the City with numerous references, has been in operation for over 40 years and has successfully constructed numerous heavy public works projects. These include large culverts, pipelines and debris basins for the Industry Urban Development Agency; 6000 feet of large sewer mains for the Los Angeles County Sanitation District; large flood control culverts and open channels for the Los Angeles County Department of Public Works; bridges and flood control channels for the Irvine Community Development Company; and numerous pipelines, channels and bridges for the Riverside County Flood Control District. In fact, the Los Angeles County Department of Public Works, Los Angeles County Sanitation District, Irvine Ranch Water District, Riverside County Flood Control District and Caltrans have all used KEC Engineering, Inc., for repeated projects. Staff=s independent research into references both provided by and not provided by the contractor, finds that KEC Engineering, Inc. personnel to be extremely competent, professional, sensitive to the concerns of both the agencies and the public, and are able to complete all projects on or before scheduled completion.

Work on this project will begin in January, 2000, and be completed in mid-August, 2000. The work schedule is being carefully coordinated with other local sewer rehabilitation work in the area in order to minimize inconvenience to the public. Work is also being coordinated with the Neilson Way street improvement project, which will follow completion of the sewer work, and with the Main Street sewer rehabilitation project, currently scheduled to begin in January, 2001, and to end in June, 2001.

The City will continue to utilize the services of a public outreach consultant, Harris and Company, to advise the public of construction schedules and issues. This will be done in a variety of ways, including continued publication of the Cone Zone newsletter; written notification and personal contact with impacted residents, merchants and community organizations; and announcements in locally circulated newspapers. A 24-hour hotline will remain in service, allowing the public to inquire about the project and express their concerns about various project elements.

While there will undoubtedly be significant impacts on traffic flow on Ocean Avenue and Neilson Way, measures are being taken to mitigate them as much as possible. The project team includes a traffic engineering consultant responsible for developing and updating traffic plans. At this point, it is planned that all construction be carried out inside traffic barriers to separate construction work from vehicles and pedestrians. The project team also includes a noise and vibration consultant to monitor construction and to recommend mitigation measures. Normal daytime hours of work will be observed, unless there is found to be some compelling reason to deviate, in which case, the City=s application procedure for extended hours will be followed.

Construction management of the CIS involves extensive coordination between numerous and complex construction projects occurring simultaneously on highly visible sites. Requests for proposals were sent to eight construction management firms inviting them to submit proposals for construction management and inspection services for the CIS. The City received two proposals. The recommended firm, Black & Veatch, has successfully managed the construction of the Moss Avenue Pumping Station=s structural shell and the Appian Way projects, is currently managing the BIG, Dry Weather Runoff Reclamation Facility, PCH Sewer Replacement and Moss Avenue Pumping Station Phase 2 projects for the City and has provided excellent service to the City and its residents. Their familiarity with the City, participation in the CIS community outreach program and direct involvement with the surrounding beach area construction projects, offer the City an integrated approach to construction management. In addition to providing construction management and inspection services, Black & Veatch will also provide vibrational and noise control analysis/mitigation services and materials testing for the project.

The CIS project was designed by Montgomery Watson Americas, Inc. Their current contract provides for services up to the receipt of construction bids by the City and engineering services during construction for the PCH and Moss Avenue Pumping Station Phase 2 projects of the CIS. Their services as Engineer of Record are required during construction of the Ocean Avenue and Neilson Way project for the review of requests for design information, design services for unforseen field conditions, shop drawing and submittal reviews and the preparation of as-built drawings for the construction contract.

FUNDS REQUIRED

Construction Contract

Construction Management Contract

Contingency $50,000

TOTAL $549,608

Engineering Services Contract

Contract $148,990

Contingency $15,000

TOTAL $163,990

TOTAL FUNDS REQUIRED . . . . . . . . .$8,150,038

Funds in the amount of $8,150, 038 are available in Account Number C31094300.589000 (Ocean/Neilson Relief Sewer). Under the wastewater services agreement with the City of Los Angeles, the City of Los Angeles and the contract agencies other than Santa Monica are responsible for approximately 97% of all capital improvement costs for the Ocean Avenue and Neilson Way Relief Sewer.

Staff recommends that the City Council:

1. Relieve Steve Bubalo Construction Company, Inc., of their bid, due to a mistake;

2. Award a contract to KEC Engineering, Inc., the lowest responsible bidder, in the amount of $6,766,440 for the Ocean Avenue and Neilson Way Relief Sewer Project of the CIS;

3. Authorize the City Manager to negotiate and execute a Modification to Agreement 7476 (CCS) with Black & Veatch, Inc. in the amount of $499,608 for construction management and inspection services for the Ocean Avenue and Neilson Way Relief Sewer Project of the CIS;

4. Authorize the City Manager to negotiate and execute a Modification to Agreement 7216 (CCS) with Montgomery Watson Americas in the amount of $148,990 for engineering services during construction for the Ocean Avenue and Neilson Way Relief Sewer Project of the CIS; and

5. Authorize the City Engineer to issue any necessary change orders to complete additional work within budget authority and in accordance with the Administrative Instructions on Change Orders.