AGENDA REPORT
Meeting Date: February 6, 2024
Item Number:
To: Honorable Mayor & City Council
From: Daren Grilley, Assistant Director of Public Works/City Engineer Tristan Malabanan, Project Manager
Subject: AWARD OF A CONTRACT TO ENVIRONMENTAL
CONSTRUCTION, INC., FOR CONSTRUCTION OF THE
GREGORY WELL AND LE DOUX WELL IN THE AMOUNT OF
$4,990,479.70; AND
APPROVAL OF THE PLANS AND SPECIFICATIONS THEREFOR
WITH RESPECT TO DESIGN CRITERIA; AND
APPROVAL OF ISSUANCE OF A PURCHASE ORDER IN THE
NOT-TO-EXCEED AMOUNT OF $5,489,527.67 TO
ENVIRONMENTAL CONSTRUCTION, INC. WHICH INCLUDES A
CONTINGENCY OF $499,047.97
Attachments: 1. Agreement with Environmental Construction, Inc.
RECOMMENDATION
Staff recommends City Council approve the award of a contract Environmental Construction, Inc., for the drilling of two potable water wells at La Cienega Park, in the amount of $4,990,479.70; approve the plans and specifications for the project with respect to design criteria; approve a construction contingency of 10% in the amount of $499,047.97; and approve the issuance of a purchase order to Environmental Construction, Inc. in the amount of $5,489,527.67.
INTRODUCTION
At its meeting on November 21, 2023, City Council approved the development of the Gregory Well and Le Doux Well at La Cienega Park. In addition, City Council found the project to be categorically exempt from further review under the California Environmental Quality Act (CEQA), pursuant to Exemption Class 32. This project will provide for drilling of two potable water wells and all related testing.
Meeting Date: February 6, 2024
DISCUSSION
The City developed its first well in the Central Basin, La Cienega Well 1 (LCW-1), on Cityowned property located at 1956 Chariton Street in Los Angeles. Construction of LCW-1 was completed in early 2023, and the transmission main between LCW-1 and the Foothill treatment plant was completed in June 2021. Since before the development of LCW-1, staff has continued to search for other properties that may be suitable for groundwater production wells. At this time, no new suitable properties have been acquired. To supplement groundwater supply, the Public Works Commission supported pursuing development of LCW-2 (Le Doux Well) and LCW-3 (Gregory Well).
On November 21, 2023, City Council found this project to be exempt pursuant to the provisions of CEQA per Exemption Class 32.
On December 4, 2023, a Notice Inviting Bids was published on the City’s portal on PlanetBids, in the Beverly Press and the Beverly Hills Weekly and sent to several online trade journals. Eleven (11) contractors attended and showed interest in the project at the mandatory pre-bid meeting held at La Cienega Park on December 19, 2023. On January 16, 2024, one bid was received as follows:
Environmental Construction, Inc. $4,990,479.70
ENGINEER’S ESTIMATE $3,158,358.00
Staff reviewed the bid proposal received and determined all documents were complete and in compliance with the bid proposal requirements.
All references contacted responded positively for work performed by Environmental Construction, Inc. Environmental Construction, Inc. is currently contracted with the City for the Robertson Sidewalk Improvement Project, and their progress and quality of work has been satisfactory.
After reviewing the bid and the Engineer’s Estimate in detail, staff and the members of the design consultant team contacted other drilling contractors who chose not to bid.
Contractors stated that they chose not to bid because the Le Doux well site was: (1) too small, (2) had too many constraints for setting up the drill rig and other equipment, and (3) the berm removal, soil storage, and berm reconstruction was too challenging. Had the City allowed using Fenton Field for the well project, it would have allowed more room for the equipment layout as well soil storage for reinstallation of the berm.
The design team from Kennedy/Jenks has summarized the following reasons for the bid higher than anticipated:
• Limited/constrained work area, especially at the Le Doux Well Site, which creates staging, access and well drilling set-up challenges. • Inability to store excavated soil on-site (primarily related to the berm removal and restoration at the Le Doux Well Site), and, thus the soil must be hauled offsite, stored and then returned to the site several months later, which is a significant cost adder.
• Underestimation of costs for demolition and restoration, specifically related to tree removal, concrete demo/restoration (based on more extensive anticipated damage to sidewalks, curb and gutter during construction), and irrigation/sod replacement.
Meeting Date: February 6, 2024
• Underestimation of sound wall installation and removal unit costs. • Subcontractor mark-up costs on the drilling/well installation bid items (since the driller was in a subcontractor role on this team).
In conclusion, staff is comfortable with receiving only one bid and believes moving forward with the project is important due to the time and effort invested in the design, outreach, and coordination. Also, rebidding the project with all the site constraints will not ensure more bids or a lower price.
COMMUNITY ENGAGEMENT
Extensive project development and outreach occurred in 2023. Eight different well locations at La Cienega Park were identified and evaluated for feasibility and conflict with the draft park master plan. Through several meetings with the Public Works Commission, Ad-Hoc Committee, Recreation and Parks Commission, and representatives from various recreational programs, staff finalized the locations of the two wells with the goals of keeping Fenton Field operational, minimizing the effects to the baseball field and related programs, and minimize the removal of trees. All parties were engaged and supportive of the project.
Below is a brief chronology outlining the public meetings and outreach efforts for the Gregory Well and Le Doux Well project:
Dec. 13, 2022: City Council approved a design agreement with Kennedy/Jenks Consultants, Inc.
Apr. 13, 2023: Public Works Commission – potential locations identified and two locations recommended
Jun. 27, 2023: Staff presented the finalized two well locations to the Recreation and Parks Commission
Jul. 26, 2023: Staff met with representatives of the various recreational programs, such as the American Youth Soccer Organization (AYSO) and Beverly Hills Little League at La Cienega Park, to explore possible impacts to their play seasons and potential accommodations
Oct. 24, 2023: Project webpage posted with Class 32 Exemption report, meeting notices mailed to all addresses within 500 feet of both wells Nov. 8, 2023: A virtual community meeting was held for Beverly Hills and Los Angeles residents to discuss the project and Class 32 Exemption report Nov. 21, 2023: City Council authorized development of the two wells and found the project exempt from CEQA
ENVIRONMENTAL ASSESSMENT
Pursuant to the provisions of CEQA, this project was found exempt, per Exemption Class 32, by City Council on November 21, 2023.
Meeting Date: February 6, 2024
FISCAL IMPACT
A construction contingency allowance in the amount of $499,047.97 (10%) has been included in the total purchase order amount of $5,489,527.67. Any change orders that require expenditures from this allowance shall be made only upon written request in accordance with the Beverly Hills Municipal Code §3-3-110 regarding change orders.
Funds for this project are budgeted in the Fiscal Year 2023/24 Capital Improvement Program as follows:
ACCOUNT NUMBER FUND DESCRIPTION AMOUNT
80006002-850000-00916 La Brea Basin Well Development 5,489,527.67 $ TOTALS 5,489,527.67 $
Shana Epstein,
Director of Public Works
Approved By
Attachment 1
AGREEMENT
THIS AGREEMENT, made and entered into this 6
th day of February, 2024, by and between the CITY OF BEVERLY HILLS, a municipal corporation, hereinafter referred to as “City”, and Environmental Construction, Inc.
21550 Oxnard St., Ste. 1060
Woodland Hills, CA 91367
hereinafter referred to as “Contractor”;
W I T N E S S E T H
In this consideration of their covenants the parties hereto agree as follows:
1. Contractor shall furnish all labor, materials and equipment necessary to perform the following work in the City of Beverly Hills, California, strictly in accordance with the Notice to Bidders, Proposal form, Plans and Specifications for such improvement, Standard Contractual Requirements and inclusive of Addendums, each of which documents are made a part of this Contract as though fully set forth herein:
CONSTRUCTION OF THE GREGORY WELL AND LE DOUX WELL
2. In consideration of such work City agrees to pay Contractor and Contractor agrees to accept the sum of Four Million, Nine Hundred Ninety Thousand, Four Hundred Seventy-Nine Dollars and Seventy Cents ($4,990,479.70) in the manner provided in subject Plans and Specifications and subject to adjustment provided therein.
3. Concurrently with the execution of this Contract, Contractor shall file with the City the bonds and certificates of insurance specified in said Standard Contractual Requirements.
4. This Contract shall not be assigned without the written permission of the City Council.
IN WITNESS WHEREOF, the parties hereto have executed this instrument the day and year first above written.
ATTEST:
____________________________________________
HUMA AHMED, City Clerk
CITY OF BEVERLY HILLS,
A municipal corporation
____________________________________________
JULIAN A. GOLD, M.D., Mayor
APPROVED AS TO CONTENT:
____________________________________________
NANCY HUNT-COFFEY, City Manager
CONTRACTOR:
____________________________________________
____________________________________________
SHANA E. EPSTEIN, Director of Public Works
____________________________________________
DAREN GRILLEY, Assistant Director of Public Works/
City Engineer
____________________________________________
SHARON L’HEUREUX DRESSEL, Risk Manager
____________________________________________
APPROVED AS TO FORM:
____________________________________________
LAURENCE S. WIENER, City Attorney
FUNDS AVAILABLE:
____________________________________________
JEFF S. MUIR, Director of Finance