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ITEM 6-E

Council Meeting: May 2, 2000 Santa Monica, California

TO: Mayor and City Council

FROM: City Staff

SUBJECT: Recommendation to Award a Construction Contract to Preussag Pipe Rehabilitation for Sewer Repair Project 10 and Authorize the City Manager to Negotiate and Execute a Professional Services Contract with Harris & Associates for Construction Management and Inspection Services

Introduction

This report recommends that the City Council award a construction contract to Preussag Pipe Rehabilitation in the amount of $1,345,291 for the repair of earthquake-damaged sewer mains at various locations in the area generally bounded by 19^th Court, Montana Avenue, Centinela Avenue and Colorado Avenue (Sewer Repair Project 10) and approve $201,794 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 agreement in an amount not to exceed $228,320 with the firm of Harris & Associates for construction management and inspection services on Sewer Repair Project 10 and approve $34,248 in contingency funds for this agreement.

Background

After the Northridge Earthquake on January 17, 1994, the City initiated a city-wide inspection program of the sewer system to identify and document the locations that were damaged and to request that the Federal Emergency Management Agency (FEMA) and the State Office of Emergency Services (OES) approve funds for the repair work. The City subsequently accepted a Grant Acceleration Program (GAP) offer from FEMA of $78 million for repair of the earthquake damaged sewer system throughout the City of Santa Monica. This project, one of eighteen sewer repair projects, will repair earthquake-damaged sewer mains in various streets and alleys in the area generally bounded by 19^th Court, Montana Avenue, Centinela Avenue and Colorado Avenue. In order to minimize the impact of this construction project on the public, the repair of the sewer mains will be done using trenchless methods, where possible.

In addition, City staff has identified other sewer repair work that is best done in conjunction with the earthquake sewer repairs. These repairs will also be paid for with the GAP funds, following FEMA GAP Guidelines for Improved Projects. This work includes lining utility access holes, replacing existing obsolete access hole frames and covers, and installing additional utility access holes where required for maintenance purposes throughout the project area.

Discussion

A Notice Inviting Bids was published on January 13 and 16, 2000 in the local AOur Times@ supplement to the Los Angeles Times, as well as in four construction journals, and 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 17 contractors. The City Clerk's office received five sealed bids, which were publicly opened and read aloud on February 7, 2000, by the Deputy City Clerk. The bid results were as follows:

1. Preussag Pipe Rehabilitation, Inc.	$1,345,291
2. Insituform Technologies, Inc.	$1,465,434
3. U-Liner West	$1,547,099
4. Sancon Technologies, Inc.	$1,576,021
5. Miller Pipeline Corporation	$1,662,819
City Engineer=s Estimate	$1,750,000

The lowest responsible bidder, Preussag Pipe Rehabilitation, Inc., has provided the City with five references for projects within Los Angeles County. All references reported that the Contractor's work was satisfactory. In addition, Preussag Pipe Rehabilitation has completed several recent sewer rehabilitation projects for the City of Santa Monica and has provided satisfactory construction crews and staff. The California Contractors= State License Board verified that the Contractor's license is current and in good standing.

In addition to award of the construction contract to Preussag Pipe Rehabilitation, Inc., 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 six construction management firms inviting them to submit proposals for construction management and inspection services on all future sewer rehabilitation projects. The City received four proposals. Two firms, Harris & Associates and ASL Consulting Engineers, were found to be best qualified and to best satisfy the City=s requirements. Of the two, Harris & Associates is considered most suitable for this project, based on their current workload projections and their available staff. Harris & Associates has supplied the City with references from the cities of Burbank, Camarillo, Compton, Oceanside, San Diego, and West Hollywood and all project representatives reported that the consultant=s work was excellent. Additionally, Harris & Associates has provided highly satisfactory services to the City on several previous sewer repair projects.

Budget/Financial Impact

FUNDS REQUIRED FOR CONSTRUCTION CONTRACT

Contract $1,345,291

Contingency $ 201,794

SUB -TOTAL $1,547,085

FUNDS REQUIRED FOR CONSTRUCTION MANAGEMENT CONTRACT

Contract $ 228,320

Contingency $ 34,248

SUB -TOTAL $ 262,568

TOTAL FUNDS REQUIRED $1,809,653

Sufficient budget authority for all of the contract expenses which are eligible for FEMA/OES reimbursement exists in Account No. E13310000.555010.40000 for construction and contingency of $1,547,085 and in Account No. E13310000.555060.50000 for construction management and contingency of $262,568.

The Wastewater Fund will set aside 10% of the construction costs in the amount of $134,529 in City Match Account No. E31310004.555010.40000 for construction, and the associated construction management and inspection costs in the amount of $22,832 in City Match Account No. E31310004.555010.40000 which FEMA/OES withholds from reimbursement until final audit which may occur several years from now.

Recommendation

Staff recommends that the City Council:

1. Award a contract for repair of earthquake-damaged sewer mains in Project #10 to Preussag Pipe Rehabilitation, the lowest responsible bidder, in the amount of $1,345,291 and approve $201,794 in contingency funds for this contract;

2. Authorize the City Manager to negotiate and execute a professional services contract with Harris & Associates for construction management and inspection services in an amount not to exceed $228,320 and approve $34,248 in contingency funds for this contract; and

3. Authorize the City Engineer to issue any necessary change orders to complete additional work in conformance with the Administrative Instructions on change orders.

Prepared by:

Craig Perkins, Director of Environmental & Public Works Mgmt.
Anthony Antich, P.E., City Engineer
Jack Schroeder, P.E., Sewer Repair Program Manager
Eugenia Chusid, Project Manager