City Council Meeting: September
12, 2006
Agenda Item: 1-F
To: Mayor and City Council
From: Craig Perkins, Director – Environmental
and Public Works Management
Subject: Construction Contract for the
Recommended
Action
It is recommended
that the City Council:
1. award a construction contract to Griffith
Company, the best bidder, in the amount of $969,662 plus a 10% contingency
amount of $96,966 for a total amount of $1,066,628 for the Yale Street
Improvement Project; and,
2. authorize the City Engineer to issue any
necessary change orders to complete additional work within budget authority.
Executive
Summary
The Yale Street Improvement Project is a
collaborative effort between area residents and the City to preserve the character
of
Construction costs for the Yale Street
Improvement Project are expected to be $969,662 plus a 10% contingency of
$96,966. The overall cost of the project
including design, construction, construction management and public outreach is
expected to be $1,226,628 of which the City will contribute $320,000 and the
residents will contribute the remaining amount, or $906,628, through the previously
approved assessment district.
Discussion
In September 2003, residents of
On September 27, 2004, the Civil Engineering
& Architecture Division received a completed petition verifying interest in
the proposed street improvements and support for an assessment district. Following the receipt of the completed
petition, proceedings to form an assessment district were held and established
in accordance with Article XIIID of the California Constitution and Improvement
Act of 1911.
Previous Council Actions
On March
8, 2005, the City Council held a public hearing for the formation of an
assessment district on
On March
22, 2005, after announcement of the certified election result, City Council
approved the formation of an assessment district on
On October
11, 2005, City Council awarded a contract to RBF Consulting in an amount
not to exceed $90,000 for the design of the Yale Street Improvements.
Contractor Selection
A Notice Inviting Bids was published on July
6 and 9, 2006, in the Santa Monica Daily Press. Nine contractors requested bid packages and
five sealed bids were received by the City Clerk’s office and publicly opened
on July 25, 2006, by the Deputy City Clerk.
The bid results were as follows:
|
1. Griffith
Company |
$969,662 |
|
2. Shawnan |
$1,168,614 |
|
3. Sully-Miller
Contracting Company |
$1,308,000 |
|
4. Los Angeles
Engineering Inc. |
$1,494,076 |
|
5. PALP, Inc.
dba Excel Paving Company |
$1,573,581 |
|
City Engineer's Estimate |
$1,000,000 |
Bids
were evaluated based on competitive pricing, understanding of the project’s
scope, direct experience on similar projects, approach to the work, technical
competence, qualifications of the proposed staff and the ability to meet the
desired time frames.
Staff recommends
Griffith Company as the best bidder based on their price, quality of services
offered, and experience with similar projects including Innovation Village for
Cal Poly Pomona, Studebaker Road Project for the City of Cerritos, Magnolia
Boulevard Improvements for the City of Burbank, Rosecrans Avenue and Aviation
Boulevard Improvement for the City of Hawthorne, and Ontario Airport Runway 26R
for Los Angeles World Airports. City
staff contacted the reference agencies and all respondents reported that the
contractor’s work was completed in a timely and cost-efficient manner while
maintaining consistent quality. City
staff contacted the Center for Contract Compliance and found Griffith Company
is in good standing and capable of handling labor compliance issues. City staff also verified with the State
Contractors' License Board that Griffith Company's license is current, active,
and in good standing.
Public
Outreach
Public
outreach for this project will be provided by City of
Budget/Financial Impact
Funds required
for this construction contract:
|
Construction Contract |
$969,662 |
|
Contingency (10%) |
$
96,966 |
|
TOTAL REQUIRED |
$1,066,628 |
Upon
project completion, invoices will be mailed to property owners within the
assessment district. Property owners
will have two (2) options to pay for the assessment: (1) pay the entire balance, without incurring
any interest, within thirty (30) days of the invoice date; or (2) elect to make
payments over a 10-year period. Under
the second option, bonds will be issued for the unpaid amounts and a lien will
be placed upon the property until the full assessment cost, including interest,
has been paid. Payments will be made
twice a year with an annual interest rate equal to 8%.
The total
project cost, City’s share and property owner’s share is as follows:
|
Project Cost |
City’s Share |
Property Owner’s Share |
Total Cost |
|
Construction |
$160,000 |
$809,662 |
$969,662 |
|
Construction
Contingency |
$0 |
$96,966 |
$96,966 |
|
Design |
$90,000 |
$0 |
$90,000 |
|
Construction
Management |
$70,000 |
$0 |
$70,000 |
|
Total Contributions |
$320,000 |
$906,628 |
1,226,628 |
The
City will contribute $160,000 towards this construction contract. The remaining amount of $906,628, including
$96,966 of contingency, will be financed by the contractor at the start of
construction. Property owners will be
invoiced at the completion of the project, once final costs are confirmed by
Council, and their payments will be held in a Trust Account pending repayment
to the contractor.
Funds
in the amount of $160,000 are available in account M010152.589000 to pay for
the City’s share of this construction contract. Account 80.201238 will be established for the
property owners’ share.
Prepared by: Allan Sheth, Civil Engineering Associate
|
Approved: |
|
Forwarded to Council: |
|
|
|
|
|
Director – Environmental and Public Works Management
Department |
|
P. City Manager |