TO:
Honorable Mayor and Members of the City Council
THROUGH:
Bruce Moe, City Manager
FROM:
Stephanie Katsouleas, Public Works Director
Shawn Igoe, Utilities Manager
Prem Kumar, City Engineer
Gilbert Gamboa, Senior Civil Engineer
SUBJECT:Title
Consideration of the Following Actions for the $39 Million Peck Reservoir Replacement Project:
A. Awarding a Construction Agreement to Pacific Hydrotech Corporation, Inc. for the 8 Million Gallon (MG) Peck Reservoir Replacement Project for $31,104,400; Authorizing the City Manager to Approve Additional Work if Necessary, for up to $3,106,480; and Approving the Plans and Specifications for the Project;
B. Awarding a Construction Management Services Agreement with Butier Engineering, Inc. for the Project for $2,555,229;
C. Approving Amendment No. 6 to the Professional Design Services Agreement with Stantec Consulting, Inc. for the Project for $994,988;
D. Waiver of formal bidding per Manhattan Beach Municipal Code Section 2.36.140 and Adopting a Resolution Approving an Agreement with Control Automation Design, Inc. for the Purchase an Installation of the Peck Reservoir Control Integration System for $438,903;
E. Payment of up to $400,000 to Los Angeles County Sanitation District for a new discharge connection to the County’s sanitary sewer system;
F. Payment of up to $300,000 to Southern California Edison for the installation of a new ground level transformer, and;
G. Appropriation of $2,500,000 from the Water Fund Balance to the project.
(Public Works Director Katsouleas)
a) ADOPT RESOLUTION NOS. 20-0100, 20-0101, 20-0102 AND 20-0103
b) APPROPRIATE FUNDS
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Recommended Action
RECOMMENDATION:
Staff recommends that City Council:
A. Adopt Resolution No. 20-0100 awarding a construction agreement to Pacific Hydrotech Corporation, Inc. (Pacific Hydrotech) for the 8 Million Gallon (MG) Peck Reservoir Replacement Project (project) for $31,104,400; authorizing the City Manager to execute the Agreement; authorizing the City Manager to approve additional work, if necessary, for up to $3,106,480; and approving the Plans and Specifications for the project.
B. Adopt Resolution No. 20-0101 awarding a Construction Management Services Agreement with Butier Engineering, Inc. for the project for $2,555,229 and authorizing the City Manager to execute the agreement.
C. Adopt Resolution No. 20-0102 approving Amendment No. 6 to the Professional Design Services Agreement with Stantec Consulting, Inc. for the project for $994,988.
D. Adopt Resolution No. 20-0103 waiving formal bidding per Manhattan Beach Municipal Code Section 2.36.140 and awarding an agreement with Control Automation Design, Inc. for the purchase an installation of the Control Integration System for the project for $438,903.
E. Approving a payment of up to $400,000 to Los Angeles County Sanitation District for a new discharge connection to the County’s sanitary sewer system.
F. Approving a payment of up to $300,000 to Southern California Edison for the installation of a new ground level transformer, and;
G. Approve an appropriation for $2,500,000 from the Water Fund Balance to the project.
FISCAL IMPLICATIONS:
The funding amount needed to complete the project is $39 million, which includes the expenses listed above plus sanitary discharge connection fees expected to be charged by the Los Angeles County Sanitation District and miscellaneous plan check fees. As part of the Fiscal Year (FY) 2020-2021 approved Capital Improvement Plan (CIP), City Council allocated $36.5 million in the Water Fund for Peck Reservoir construction and related services. Given the construction bid received and the anticipated additional project expenses identified in the attached Budget and Expenditures summary report for $39 million, a supplemental appropriation of $2.5 million in water funding will be required to complete the project. Any unused funds will revert to the Water Fund balance for future projects.
BACKGROUND:
The City completed a Water System Master Plan (Master Plan) in 2010 that analyzed various facilities and operations of the City’s existing water system. This Master Plan identified a list of capital improvement projects that will enhance the water system to meet established system criteria, properly maintain the system’s assets, and replace facilities that have reached the end of their useful lives. The Master Plan recommended as a top priority the replacement of Peck Reservoir due to its age and condition.
Peck Reservoir is situated at 1800 N. Peck Avenue, at the southeast corner of Peck Avenue and 19th Street. The proposed replacement project includes completely removing the degraded 60-year-old concrete reservoir, pumps and ancillary facilities, and replacing the existing structure and equipment with a new 8-million gallon (MG) concrete reservoir, a pump station, operations and electrical buildings, a groundwater treatment system, and related ancillary facilities and site restoration. While the majority of the work will occur on the Peck Reservoir site, some work will be required on adjacent streets, including construction of new accessible sidewalks along 19th Street and Peck Avenue; new sewer and electrical connections on Peck Avenue; and new water and sewer pipeline trench work, which will take place east on 18th Street, north on Herrin Avenue and east on 19th Street.
In 2016, City Council awarded a professional services agreement to MWH Americas, Inc. (Stantec Consulting, Inc.) for the design of the Peck Reservoir and booster pump station replacement, including preliminary planning and design, environmental review and final design. The preliminary planning and design work was detailed in a Basis of Design Report (BODR) and identified the replacement reservoir sizing, configuration and operations. In 2017, the BODR was approved by City Council and staff was given direction to proceed with next steps, including environmental review and final design. In 2019, the environmental review culminated with the Planning Commission adoption of a Use Permit, Mitigated Negative Declaration and a Mitigation Monitoring and Report Program for the project.
DISCUSSION:
Construction Bids
Bids for the 8MG Peck Reservoir Replacement Project were solicited on a competitive basis in accordance with the provisions of the California Public Contract Code in April 2020. The project was advertised for bid in the City’s publisher of record (Beach Reporter) twice, in several construction industry publications, and was listed on the City’s website and BidSync, an online service that connects contractors, suppliers and vendors to government procurement opportunities. Staff also notified several contractors who had completed comparable water projects on the City’s contractor database regarding this project. In addition, to allow for adequate examination of the project site prior to bidding, staff conducted two optional, onsite pre-bid meetings in May for contractors, material suppliers and interested parties.
A total of five competitive bids were received on June 30, 2020, and opened on July 1, 2020, after twenty-four hours of contactless document isolation. The bids ranged from a low bid of $31 million to the highest bid of $43 million as follows:
Contractor Total Bid Price
Pacific Hydrotech Corporation, Inc. $31,104,400
Shimmick Construction Company, Inc. $35,925,000
OHL USA, Inc. $36,312,500
PCL Construction, Inc. $37,485,000
Icon West, Inc. $43,442,163
All bid packets were analyzed for arithmetical errors, completeness, accuracy, etc. Pacific Hydrotech’s bid was reviewed by staff and found to be responsive. Representatives of agencies where work has been performed by Pacific Hydrotech have indicated that the work performed comparable to the Peck Reservoir scope of work was to their satisfaction. Additionally, Pacific Hydrotech completed the construction of the City’s Groundwater Well 11A Facility Project in 1998. The current project was discussed with representatives of the firm and they expressed confidence in their bid and a desire to perform the work in a timely and acceptable manner.
The City received two letters protesting the bid submitted by Pacific Hydrotech, one from the Center for Contract Compliance, an outside labor compliance organization and another from Shimmick Construction, Inc. Both protests alleged that Pacific Hydrotech failed to disclose pending or existing litigation history in the bidder’s response regarding questions pertaining to disclosing involvement in any arbitrations, lawsuits, settlements, claims or actions for the past 5 years. In consultation with the City Attorney’s Office, it was determined that the exclusion of the omitted item on the contractor’s statement is an immaterial deviation for the purposes of considering Pacific Hydrotech’s bid as non-responsive and does not provide a basis for finding Pacific Hydrotech to be non-responsible. The deviation did not affect the bid amount, did not limit or change the terms of the contract, and did not provide the bidder with an unfair advantage. Therefore, it is within the City’s discretion to waive the immaterial deviation and, based on the above the protests by the Center for Contract Compliance and Shimmick Construction, Inc., are without merit.
Staff recommends that City Council authorize the City Manager to award a construction contract to Pacific Hydrotech Corporation, Inc. for $31,104,400 and approve additional work, if necessary, for up to $3,106,480.
Construction Management and Inspection Services
The City issued Request for Proposal (RFP) No. E1245-20S on May 11, 2020, for construction management and inspection services for the 8MG Peck Reservoir Replacement Project. A total of five proposals were received by the June 10, 2020, RFP deadline. Each proposal was evaluated and ranked by the City’s evaluation committee based on the proposer’s understanding of the scope of services, proposed methodology and work plan, and experience of both the firm and the project team members.
Butier Engineering, Inc. submitted the most responsive and comprehensive proposal. The firm’s assigned staff has the most relevant experience and its proposal demonstrated a significant understanding of the key project tasks and constraints. The recommended award of contract will cover the expected costs for the scope outlined in the RFP, which includes construction management and inspection services, and materials testing and special inspection services during the construction phase of the project. Per Government Code Section 4526, Professional Services Consultants are selected based on qualifications.
Key services to be provided by Butier Engineering, Inc. include:
• Full-time inspection of construction activities.
• Ongoing review and oversight of the construction schedule and budget.
• Responding to contractor questions, requests for information, and issues that arise in the field during construction.
• Coordinating between the contractor, City staff, and the School District.
• Ongoing public outreach during the construction duration.
Staff recommends that City Council authorize the City Manager to award a construction management services agreement with Butier Engineering, Inc. for $2,555,229.
Engineering Services during Construction
Stantec Consulting, Inc. is the Engineer of Record for the project and prepared the project plans and specifications. At the City’s request, Stantec Consulting, Inc. provided a proposal scope and fee to assist the City with the following engineering design support services during construction:
• Factory and site visits and technical coordination/structural observation support during construction.
• Responding to design questions, reviewing design submittals, and responding to design issues that arise in the field during construction.
• Assistance with the startup and commissioning of the new water plant.
• Review and preparation of final record drawings plan set for City archival purposes.
Staff recommends that City Council approve an amendment to the agreement with Stantec Consulting, Inc. for a not-to-exceed amount of $994,988.
Control Integration System
On March 17, 2020, City Council approved a sole source exception for the installation of programmable logic controllers for the Peck Reservoir Replacement Project. Control Automation Design (CAD), Inc. is the City’s existing programmer and integrator for all the City’s standardized utility facilities controls. At the City’s request, CAD, Inc. provided a proposal scope and fee to assist the City with the following Peck Reservoir programming integration support services during construction:
• Furnishing Programmable Logic Controllers (PLC), UPS, and Alarm Auto-Dialer.
• Furnishing spares.
• Furnish workstations, communication cabinet and ethernet switch.
• Programming PLCs, network communications and SCADA.
• Providing submittals for PLC hardware, panel and wiring diagrams, IO list, system architecture, training plan and manual, systems operations and maintenance manuals and functional design report.
• Loop checks, training, commissioning and plant start-up.
Under MBMC Section 2.36.140, the City Council may waive purchasing procedures to fit a specific purchase. Staff recommends that this purchase be considered single source and that City Council authorize the City Manager to award an agreement with Control Automation Design, Inc. for $438,903.
Miscellaneous Project Expenses
Staff anticipates the following outside agency permits and coordination will be needed for completion of the project including, but not limited to State Department of Health Services Drinking Water Field Operations Branch (DDW), Los Angeles County Sanitation District (LACSD) and Southern California Edison (SCE). All three agencies were previously engaged during the preliminary planning and design phases. The State DDW regulates and ensures that the requirements of the California Safe Drinking Water Act can be met by the water system. The groundwater treatment system component of the overall project will require a new discharge connection to the County’s sanitary sewer system. The LACSD connection fee program requires new wastewater dischargers to pay for the privilege of connecting to the sewerage system. Lastly, the in-kind redevelopment of the entire property site triggers the necessity to underground the existing overhead electrical and communication service feeds, and the installation of a new ground level transformer by SCE.
The Notice to Proceed to fulfill preconstruction requirements and order materials will be issued as soon as the Council-approved award package is finalized. Construction is anticipated to start approximately four to six weeks after the contractor begins procuring products and materials (i.e. mobilization efforts). The complete construction project is expected to last 18-20 months. Allowable construction hours will be from 7:30 AM to 5:00 PM, Monday through Friday. However, the contractor will be required to mitigate, to a less than significant level, potential impacts for Air Quality, Hazardous Materials, Noise, and Traffic. Public Works staff has determined that it can continue to meet the City’s daily water demands by expanding use of other City water facilities as well as implementing other system operational modifications.
PUBLIC OUTREACH:
A total of three community meetings were held on March 13, 2018, April 3, 2019, and May 2, 2019; as well as a public outreach meeting with the school district on May 28, 2019. Public meetings were also held with the City’s Planning Commission and City Council during the design and environmental approval phases. The project was also discussed at previous Capital Improvement Program budget meetings.
Once the project progresses to the construction phase, public outreach will include public information meeting(s), construction notices, electronic message boards, media coordination, traffic alerts and updates on the City website.
ENVIROMENTAL REVIEW:
Environmental review regarding the overall project (CEQA Mitigated Negative Declaration) was completed on June 12, 2019.
LEGAL REVIEW:
The City Attorney has approved the agreements and amendment as to form.
ATTACHMENTS:
1. Resolution No. 20-0100
2. Agreement - Pacific Hydrotech Corporation
3. Bid Proposal
4. Project Plans and Specifications (Web-Link Provided)
5. Resolution No. 20-0101
6. Agreement - Butier Engineering, Inc.
7. Resolution No. 20-0102
8. Amendment No. 6 - Stantec Consulting Services, Inc.
9. Agreement & Amendments No. 1-5: Stantec Consulting Services, Inc.
10. Resolution No. 20-0103
11. Agreement - Control Automation Design, Inc.
12. Budget and Expenditures Summary
13. Location Map - Peck Reservoir Site