City Council
Report
City Council Meeting: January 12, 2021
Agenda Item: 3.A
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To: Mayor and City Council
From: Susan Cline, Director, Public Works, Engineering and Street Services Subject: Award Bid #SP2636 and enter into Agreement with West Valley Investment Group, Inc. for Construction Services for the Pier Improvements Project Recommended Action
Staff recommends that the City Council:
1. Award Bid #SP2636 to West Valley Investment Group, Inc. for construction services for the Pier Improvements Project for the Public Works Department;
2. Authorize the City Manager to negotiate and execute a contract with West Valley Investment Group, Inc. in an amount not to exceed $5,584,127 (including a 15% contingency); and
3. Authorize the Director of Public Works to issue any necessary change orders to complete additional work within contract authority.
Summary
The Santa Monica Pier (Pier) is an iconic destination, historically drawing more than 10 million visitors per year, and is also a valuable asset to the local community. The harsh coastal conditions and heavy usage require upgrades to enhance both the safety and utility of the Pier to support heavier vehicles required by businesses for events and operations as well as other improvements. With upgrades to the Pier deck, as well as the substructure elements including stringers and pile caps, the Pier Improvements Project (Project) would both enhance the safety and increase the utility of the Pier. Staff recommends awarding a contract to West Valley Investment Group, Inc. in an amount not to exceed $5,584,127 (including a 15% contingency) to provide construction services for the Project. Staff would initially enter in a contract not to exceed $3,440,120 (including a 15% contingency) for Area 10 only, the westerly portion of parking lot.
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Discussion
The Project would provide the needed maintenance and capital improvements in the following areas: (1) upgrades to decking; (2) replacement of damaged stringers and installation of additional stringers; and (3) replacement of pile caps.
Pier Deck Upgrade – Areas 2 and 10
To plan for and address the maintenance requirements of the Pier, an updated Pier Infrastructure Assessment Study was completed in 2020 (2020 Study). The 2020 Study:
(1) focused on the evaluation of the existing condition of the Pier’s various structural components; (2) conducted an in depth analysis, which included recommendations to structurally upgrade large sections of the Pier to support 15-ton (H-15) and 20-ton (H20) vehicles; (3) developed a maintenance program in conjunction with a proposed 10- year improvement plan; and (4) updated and supplemented the 2008 Pier Infrastructure Assessment Study. Both studies recommend upgrades to the Pier deck parking and event area.
As outlined by the infrastructure studies and to better utilize the open areas of the Pier, the City has begun upgrading areas of the Pier for H-15/H-20 vehicles. Multiple City departments, including Public Works, the Fire Department, the Police Department, and the Office of Pier Management, coordinated internally to prioritize the next areas to upgrade. Due to numerous events held on the Pier throughout the year and the poor condition of decking and substructure, staff recommends upgrades to Areas 2 and 10, where events generally take place. The current condition of Areas 2 and 10 is very poor.
Decking material has split and worn thinner and stingers are cracking and beginning to sag. Further, as decking and stringers degrade, greater load is transferred to the lower, larger structural components. This additional stress accelerates the wear on the larger and more costly components of the Pier structure. According to the 2020 Study, these areas should be upgraded before 2022. Awarding a contract and beginning construction in 2021 would ensure the repairs are completed within the recommended timeframe and ensure the Pier could be fully utilized when Los Angeles County reopens. Moreover, the current closures, which permit essential construction activity, provide an opportunity to construct the Project with less impact to Pier businesses and events. A portion of the
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previously upgraded Area 6 is also included with the Project. Upon completion of the Project, the entire parking area of the Pier would be upgraded to H-15/H-20 loading capacity (see Figure 1).
Figure 1
The purpose of this project is to repair the Pier’s damaged and worn components while maintaining its unique historic character. This project would help to preserve its continued relevance and vitality to present and future generations by allowing unencumbered use of the Pier deck. In general, the upgrades consist of the following measures: installation of new 4-inch by 16-inch timber stringers between the existing timber stringers, replacement of deteriorated stringers in-kind, replacement of the 2-inch thick timber decking with a 3-inch thick timber decking, upgrades or replacement of the existing pile caps, and retrofits to deteriorated piles. Staff recommends awarding a contract for only Area 10 at this time in order to avoid exhausting the Pier Fund, which has experienced a reduction in revenues due to the impacts of COVID-19. However, not moving forward at this time would potentially result in higher construction costs in the future and would certainly result in a more disruptive project if constructed after
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businesses on the Pier reopen. If closures continue for a prolonged period and revenues fall short of current projections, it is possible the Pier Fund could require a subsidy from the General Fund. If recovery commences and the Pier Fund is able to support additional work, Area 2 which was part of the Request for Bids package and was an alternative (optional) scope of work, would be incorporated into the project with a change order.
Past Council Actions
3/6/18 (Attachment A) Award RFP# SP2473 to Moffatt & Nichol to provide services to prepare construction documents for the Pier Area 2 Upgrades at the Santa Monica Pier.
Vendor Selection
Bidder Recommendation
Best Bidder West Valley Investment Group, Inc.
Evaluation Criteria Price; the ability, capacity, and skill of the bidder to perform the services; the capacity of the bidder to perform the contract within the time specified; the sufficiency of the bidder’s financial resources; the reputation and experience of the bidder.
Municipal Code SMMC 2.24.180
Bid Data
Date
Posted Posted On
Advertise In
(City Charter & SMMC)
Vendors
Downloaded
Date Publicly
Opened
10/6/2020 City's Online
Bidding Site
Santa Monica Daily
Press
79 11/12/2020
Best Bidder Justification
Staff recommends West Valley Investment Group, Inc., the lowest bidder, as the best bidder based on bid price and completion of past projects for the City of Santa Monica, University of California, Los Angeles, and Azusa Unified School District. The Submittals Received – Areas 10 & 2
West Valley
Investment Group,
Inc.
$4,855,762.50 Jilk Heavy
Construction, Inc.
$5,235.779.00
CS Legacy
Construction, Inc.
$5,120,789.00 PCN3, Inc. $5,608,503.75
Zusser Company, Inc. $5,899,287.50 Metro Builders &
Engineers Group,
Ltd.
$5,803,811.65
Cushman Contracting
Corporation
$7,061,090.00 Bellingham Marine
Industries, Inc.
$8,313,071.55
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recommended bidder has demonstrated the ability to perform quality work on general building and engineering projects.
Construction Management and Public Outreach
City staff would provide construction management and public outreach for this project.
Public outreach and specialized electrical inspections would be supplemented by specialized consultants. These consultant services would be procured within the City Manager’s authority at a later date. Construction management would include inspecting the contractor’s work during construction, verifying and documenting City or contractor requested changes and unforeseen conditions, monitoring and mitigating impacts due to construction activities, leading progress meetings, and maintaining all necessary inspection documentation. Public outreach would include notifications posted on the Pier and notices distributed to Pier tenants detailing the scope of the project, potential impacts, schedule, and construction manager contact information. City staff would attend regularly scheduled meetings on the Pier, such as the Pier Tenants meeting, and meetings with the Pier Corporation and Office of Pier Management to provide updates about the Project. The notifications would be prepared by City staff with consultant support and distributed by the construction contractor. Monthly construction updates would be posted on the City’s “Know Before You Go” (KBUG) website and in the Santa Monica Daily Press once per month.
Staff worked closely with the Pier Corporation and the Office of Pier Management during the design of the project. A phasing plan for the decking work was developed as a result of the coordination; the phasing plan was developed prior to the pandemic but was included in the bid package and remains a condition by which the contractor must abide. The initial construction duration estimate during design was approximately one year. However, during the bidding process several bidders expressed concerns that the allotted time was insufficient to complete the Project. The City’s coordinated phasing requirements, craft labor shortages, soaring timber prices, reduced timber supply, and other effects related to the current pandemic were some of the reasons cited for requesting additional time. After evaluating these concerns, staff increased the
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construction duration to 15-18 months if both Areas 10 and 2 are upgraded. Should Area 2 not be included, the construction duration for Area 10 would be approximately 12-14 months. Staff informed the Office of Pier Management and the Pier Corporation of this longer construction period and notified Pier tenants as well. Routine schedule updates will be provided before and during construction.
Financial Impacts and Budget Actions
Staff seeks authority to approve funding from the Pier Fund to award a contract with West Valley Investment Group, Inc. for construction services for the Pier Improvements Project in an amount not to exceed $5,584,127. However, due to the uncertainty of economic recovery and to avoid depleting the Pier Fund, staff seeks authority to execute a contract for the work in Area 10 only in an amount not to exceed $3,440,120.
If future Pier Fund revenues can support Area 2 improvements, an additional $2,144,007 would be added to the contract with a contract change order resulting in a total contract authority of $5,584,127. Future year funding is contingent on Council budget approval.
Contract Request
FY 2020-21
Request Amount CIP Account # Total Contract Amount
$2,696,772 C5306750.689000 $2,696,772
$743,348 C5307190.689000 $2,887,355
$3,440,120 Total $5,584,127
Prepared By: Robert Zak, Civil Engineer
Approved Forwarded to Council
Attachments:
A. March 6 2018 Staff Report
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B. West Valley Investment Group, Inc. Oaks Initiative Disclosure Form
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