ITEM 6-H

Council Meeting: March 7, 2000

TO: Mayor and City Council

FROM: City Staff

SUBJECT: Recommendation to Award Construction Contract for FY 1998-99 Water Main Replacement Project and Authorize the City Manager to negotiate and Execute a Professional Services Contract for the Construction Management of the Project

Introduction

This report recommends that the City Council award a contract to the firm of Majich Bros., Inc., the lowest responsible bidder, in the amount of $1,322,543 for construction of the FY 1998-99 Water Main Replacement Project and approve $19,457 in contingency funds for this contract. This report also recommends that the City Council authorize the City Manager to negotiate and execute a professional services contract with the firm of Caltrop Engineering Corporation in the amount not to exceed $144,000 for construction management services for the project and approve $21,000 in contingency funds for this contract.

Background

During the FY 1998-99 budget process, the City Council appropriated funds for the replacement of water mains at various locations throughout the City. Through this program, selected water mains are replaced on an annual basis due to age, corrosion and capacity demands.

Discussion

A Notice Inviting Bids for the reconstruction contract was published on December 23 and 26, 1999, in Our Times and the F.W. Dodge newsletter. Bid documents were sent to six woman/minority business enterprise associations. Bid packages were requested by 14 contractors and the City Clerk's office received five sealed bids which were publicly opened an read aloud on January 18, 2000, at 300 p.m., by the Deputy City Clerk. The bid results were as follows:

Majich Bros., Inc. $1,322.542.60
Williams Supply Co., Inc. $1,481,781.00
W.A. Rasic Construction, Inc. $1,579,995.00
P.&J. Utility Co. $1,606,027.50
John Malloy, Inc. $1,945,541.00
City Engineer's Estimate $1,575,000

The lowest responsible bidder, Majich Bros., Inc., supplied the City with the names of previous similar projects including construction of 210 Zone Water Main and Catalina Street Storm Drain for the City of Buenaventura; construction of storm drains, water and wastewater mains and dry utilities for the Rancho Dos Vientos Development in Thousand Oaks; and construction of water mains in various streets for the City of Glendale.

City staff contacted the agencies and companies representing these projects and all respondents reported that the Contractor's work quality was satisfactory. The California Contractors State License Board verified that the Contractor's license is active and in good standing. City staff also verified the good standing of each major subcontractor listed by the Contractor.

A Request for Qualifications for construction management services was issued on July 26, 1999, to pre-qualify firms to provide construction management services to the City of Santa Monica. Six firms from the pre-qualified list were interviewed by a panel that included representatives from the Environmental and Public Works Management Department, Engineering Division and utilities Division. The interview panel recommended Caltrop Engineering Corporation to provide construction management services for this project.

Budget/Financial Impact

FUNDS REQUIRED FOR THE CONSTRUCTION CONTRACT
Construction Contract	$1,322,543
Contingencies	$ 197,457
SUBTOTAL $1,520,000

FUNDS REQUIRED FOR THE CONSTRUCTION MANAGEMENT CONTRACT
Construction Management Contract	$ 144,000
Contingency	$ 21,000
SUBTOTAL	$ 165,000

TOTAL FUNDS REQUIRED	$1,685,000

Funds are available in the following CIP accounts:
C25013698.589000 "Water Main Upgrades"	$1,248,390
C25013699.589000 "Water Main Upgrades"	$ 436,610
	$1,685,000

Recommendation

Staff recommends that the City Council:

Award a contract to the firm of Majich Bros., Inc., the lowest responsible bidder, in the amount of $1,322,543 for construction of the FY 1998-99 Water Main Replacement Project and approve $197,457 in contingency funds for this contract;
Authorize the City Manager to negotiate and execute a professional services contract with the firm of Caltrop Engineering corporation in an amount not to exceed $144,000 for construction management services for the project and approve $21,000 in contingency funds for this contract; and
Authorize the City Engineer to issue any necessary change orders to complete additional work in conformance with the Administrative Instructions on change orders and within budget authority.

Prepared by:
Craig Perkins, Director, Environmental and Public Works Mgmt. Dept.
Anthony Antich, P.E. City Engineer
Gil Borboa, P.E.,Utility Manager
Dave Britton, P.E.,Sr. Civil Engineer
Charmaine Yambao, P.E., Utility Engineer
Antonio Shaibani, C.E. Associate