City Council Meeting: January 22, 2013

Agenda Item:  3-L  

To:               Mayor and City Council 

From:           Martin Pastucha, Director of Public Works

Subject:        Award Construction Contract and Modify Professional Services Agreement for the Santa Monica Municipal Pier Replacement Project

 

Recommended Action

Staff recommends that the City Council:

1.     Authorize the City Manager to negotiate and execute a contract with Meek Shea, Joint Venture, a California-based company, in the amount of $8,200,000 (including a 5.9% contingency) for the construction of the Santa Monica Municipal Pier Replacement Project.

2.     Authorize the Director of Public Works to issue any necessary change orders to complete additional work within budget authority.

3.     Authorize the City Manager to negotiate and execute a fourth modification to Professional Services Agreement No. 9079 (CCS) in the amount of $210,000 with URS, a Nevada-based company, for Engineer of Record services and hazardous materials testing during the construction phase.  This will result in a four-year amended agreement with a new total amount not to exceed $664,000.

4.     Appropriate the budget changes outlined in the Financial Impacts and Budget Actions section of this report.

 

Executive Summary

The Santa Monica Municipal Pier Replacement Project consists of complete demolition and reconstruction of a 360-foot long by 36-foot wide section of the Municipal Pier from the high tide line to the westerly concrete pier constructed in the late 1980s.  The existing Municipal Pier in this area was constructed of timber in the 1920s.  A Pier infrastructure assessment study concluded that this section is in need of complete replacement. 

 

On December 4, 2012, one bid was received for the construction of the Santa Monica Pier Replacement Project.  After reviewing the bid received for this project, staff recommends construction contract with Meek Shea, Joint Venture, in a sum not to exceed $8,200,000 (includes a 5.9% contingency), for the construction of the Santa Monica Municipal Pier Replacement Project.  Staff also recommends a fourth modification to the professional services agreement with URS Corporation in the amount of $210,000 for hazardous materials testing and for Engineer of Record services required during the construction of the project which is estimated to be one year.

 

Background

On April 10, 2007, the City Council authorized a professional services agreement with Moffatt & Nichol to conduct the Pier Infrastructure Assessment Study.  This study recommended that the wooden Municipal Pier area between bent 40 and bent 58, known as the Phase 4 Area (see picture below), be removed and replaced with a new Pier consisting of concrete substructure and timber stringers and decking.

On June 23, 2009, Council authorized a professional services agreement with URS Corporation to provide design services for the Pier Structural Upgrade and Gangway Project. 

 

On August 23, 2011, Council adopted a resolution approving the Mitigated Negative Declaration for Pier Structural Upgrade and Gangway Project and the Mitigation Monitoring and Reporting Program and authorized the Director of Public Works to proceed with the development of bidding documents for implementation of the Pier Structural Upgrade and Gangway Project. 

 

On May 22, 2012, Council rejected all bids received on March 29, 2012, for general contracting services to construct the Santa Monica Pier Emergency Gangway Project.  The two bids received were significantly higher than the Engineer’s Estimate and in excess of the available budget for the project.  Staff from Public Works and Police Harbor Patrol are continuing to evaluate systems to provide enhanced exit/evacuation from the west end of the Pier.

 

Discussion

The Santa Monica Municipal Pier Replacement Project consists of complete demolition and reconstruction of a 360-foot long by 36-foot wide section of the Municipal Pier located in a tidal and surf zone.  Constructed in the 1920s, this section of the Pier consists of timber construction and is nearing the end of its useful life.  Structural analysis has shown that this section of the Pier has a limited capacity to support emergency and commercial delivery vehicles.  The Pier Infrastructure Assessment Study performed by Moffatt & Nichol included inspections to assess the condition of the existing timber structure.  Both underwater and above water inspections of this area of the Pier indicated the timber is deteriorating.  The study recommended that this area of the Pier be completely removed and replaced with a new pier consisting of concrete piles, concrete pile caps, timber stringers, and timber decking. 

 

The use of a concrete substructure will result in a highly durable, low maintenance structure in the tidal and surf zone.  As part of the reconstruction project, existing utilities located under the Pier including water, sewer, communications, electrical, and gas, would be temporarily relocated during construction and permanently reinstalled under the new structure.  The cost of water and wastewater utility work would be borne by the utility funds.

 

The Pier Replacement Project will result in construction impacts to the adjacent businesses.  Staff from Public Works and Pier Management have been involved with tenants in ongoing discussions of the construction impact and means to reduce this impact to the adjacent businesses.  This will be an ongoing conversation throughout the project to minimize the impact of construction to the extent practicable.

 

Contractor Selection

A Notice Inviting Bids was published in the Santa Monica Daily Press on October 26, 2012, and October 27, 2012.  The Notice Inviting Bids was also posted on the City’s online bidding site.  Forty-three prospective contractors requested bid packages.  One sealed bid was publicly opened on December 4, 2012.  Bid results are as follows:

 

Bidder

Bid Amount

Meek Shea, Joint Venture

$       8,043,500

Engineer’s Estimate

$       6,500,000

 

The bid was evaluated on competitive pricing, understanding of the project’s scope, direct experience with similar projects, approach to the work, technical competence, qualifications of the proposed staff, and the ability to meet the project schedule.  Staff contacted reference agencies listed by the contractor to ascertain past performance on similar projects, including U.S. National Parks Service for the pier construction project at Santa Rosa Island, Port of San Diego for the pier strengthening project at Broadway Pier, United States Navy for the wharf repair project at Port Hueneme, and Ventura Harbor Department for the shoreline stabilization project at Channel Island Harbor.  All agencies reported the contractor’s work to be satisfactory.  It is notable that John S. Meek Company, Inc., the main partner in the joint venture, completed the Phase 3 structural upgrade project for the Santa Monica Pier, which was similar in scope, schedule, and location and required similar coordination with neighboring businesses. 

 

The difference in cost between the bid received and the engineer’s estimate can be attributed to the following factors:

·       Sizeable liquidated damage for exceeding contract time

·       Construction duration limited to approximately one year (250 working days) which obligated the contractor to assume additional cost risks

·       Cost associated with construction phasing requirements added during bidding to ease construction impact to adjacent businesses.

 

In addition, a lump sum allowance to be used by the City for construction impact mitigation in the amount of $300,000 was included in the base bid.  Based on these factors, staff believes the bid received is a reasonable and fair cost to perform this project.  However, since the bid received was in excess of the available budget, staff met with Meek Shea and the design engineer URS Corporation to better understand the construction sequence, methods, schedule, and cost to determine if the project could be constructed in a way that would reduce the cost without compromising quality (value engineering).  Meek Shea and URS Corporation suggested several changes to the specifications that would not compromise quality while decreasing construction costs by approximately $293,500.  The suggested changes are:

·       Re-using the existing handrail

·       Altering concrete cure time restrictions

·       Re-using the existing utility pipes

·       Modifying the stringer bolted connections

 

In order to decrease the project cost, staff recommends that the value engineering suggestions be incorporated.  Staff also recommends not including the $300,000 allowance bid item in the construction contract.  The allowance item is not necessary since a construction phasing requirement was incorporated during the bidding process to mitigate construction impacts to neighboring businesses.  Any additional mitigation measures required during construction can be addressed with the construction contract contingency.

 

Staff recommends that a construction contract with Meek Shea be executed in the amount of $7,743,500 (bid amount of $8,043,500 minus $300,000 allowance bid item) with a contingency amount of $456,500 (5.9%) for a total amount of not to exceed $8,200,000.  Upon execution of the contract, staff will negotiate a change order to decrease the contract amount by an additional $293,500 for the suggested changes to the construction specifications, making the anticipated construction cost approximately $7,450,000 ($7,743,500 minus $293,500).

 

The $293,500 savings can be held as construction contingency to increase the contingency amount to $750,000 ($456,500 plus $293,500), which is approximately 10% of the anticipated construction cost. 

 

Additionally, the professional services agreement with URS Corporation for the design phase of the project did not include sufficient funding for as needed technical support services necessary for the construction phase.  Staff recommends a fourth modification to Professional Services Agreement No. 9079 (CCS) with URS Corporation in the amount of $210,000, for a total contract amount of $664,000, to cover the as needed technical support services necessary during the construction phase of the project. 

 

Financial Impacts & Budget Actions

The contract to be awarded to Meek Shea, Joint Venture, is an amount not to exceed $8,200,000.  The modification to the professional services agreement with URS Corporation is an amount not to exceed $210,000.  Staff anticipates that costs for private utility relocation work and public outreach would require an amount not to exceed $100,000.  Therefore, the total amount of funds necessary to complete the project is anticipated to be $8,510,000.  Funds are available in the FY 2012-13 and FY 2013-14 Capital Improvement Program (CIP) budget in the following accounts:

 

 

FY12-13

FY13-14

Total FY12-14

M304006.589000

$3,246,897

$4,050,000

$7,296,897

C250136.589000

$435,000

$0

$435,000

C310628.589000

$125,000

$0

$125,000

TOTAL

$3,806,897

$4,050,000

$7,856,897

 

Award of the construction contract, modification to professional services agreement, anticipated private utility relocation work, and public outreach require an additional appropriation of $653,103 to account M304006.589000.  In turn, a reduction of $653,103, currently included in the FY 2014-15 CIP Budget Plan for the Pier Emergency Gangway Project would be requested during the CIP budget process.

 

The construction contract with Meek Shea will be charged to the following accounts:

M304006.589000              $   7,640,000

C250136.589000               $      435,000

C310628.589000               $      125,000

TOTAL:                            $   8,200,000

 

The modification to professional services agreement with URS Corporation will be charged to the following account:

M304006.589000              $      210,000

 

Cost for private utilty relocation work and public outreach will be charged to the following account:

M304006.589000              $      100,000

 

Prepared by:  Zach Pollard, P.E., Associate Project Manager

Approved:

 

Forwarded to Council:

 

 

 

 

 

 

Martin Pastucha

Director of Public Works

 

Rod Gould

City Manager