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CC - CONSENT ITEM: (1) Award of Construction Contract in the Amount of $7,362,160 to Mladen Buntich Construction Co Inc., as the Lowest Responsive and Responsible Bidder, for the Construction of Diversion Sewer Pipes to Abandon Fox Hills Sewer Pump Station, PW003; (2) Authorization to the Public Works Director/City Engineer to Approve Change Orders, if necessary, to the Mladen Buntich Contract, in an Amount Not-to-Exceed $1,100,000 (15%) to Cover Contingency Costs; (3) Approval of a Professional Services Agreement with NV5 in an Amount Not-to-Exceed $494,435 for Construction Management and Inspection Services; (4) Authorization to the Public Works Director to Approve Amendment(s), if necessary, to the NV5 Agreement, in an Amount Not-to-Exceed $98,887 (20%) to cover Contingency Costs; and (5) FOUR-FIFTHS VOTE REQUIREMENT: Approval of a Related Budget Amendment.
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Meeting Date: January 13, 2025
Contact Person/Dept.: Hong Wang/Public Works Department, Engineering Division
Phone Number: (310) 253-5604
Fiscal Impact: Yes [X] No [ ] General Fund: Yes [ ] No [X]
Attachments: Yes [ ] No [X]
Public Notification: E-Mail: Meetings and Agendas - City Council (01/08/2025)
Department Approval: Yanni Demitri, Public Works Director/City Engineer (12/11/2024)
RECOMMENDATION
Staff recommends the City Council (1) award a construction contract in the amount of $7,362,160 to Mladen Buntich Construction Co Inc. (Buntich), as the lowest responsive and responsible bidder, for the Diversion Sewer Pipes to Abandon Fox Hills Sewer Pump Station, PW003; (2) authorize the Public Works Director/City Engineer to approve change orders, if necessary, to the Mladen Buntich contract, in an amount not-to-exceed $1,100,000 (15%); (3) approval of a professional services agreement with NV5 in an amount not-to-exceed $494,435 for construction management and inspection services; (4) authorize the Public Works Director to approve amendment(s), if necessary, to the NV5 agreement, in an amount not-to-exceed $98,887 (20%) to cover contingency costs; and (5) approve a related budget amendment (requires a four-fifths vote).
BACKGROUND
The diversion sewer pipelines will be constructed from the Fox Hills sewer pump station, constructed in 1976 and located inside the Westfield Mall parking lot near Macy’s, to the newly constructed Bankfield Sewer Pump Station, located at 5722 Bankfield Avenue. (The American Public Works Association Southern California Chapter awarded the Bankfield Sewer Pump Station the 2020 Project of the Year - Drainage, Water, and Wastewater category). The proposed diversion pipeline begins at the current Fox Hills sewer pump station, then continues within the Westfield Mall parking lot toward the Sepulveda Boulevard and Bankfield Avenue intersection, and then continues under Bankfield Avenue toward the new Bankfield Sewer Pump Station. The consolidated sewer pump stations would reduce energy and maintenance costs and reduce the potential of sewage overflows by removing the Fox Hills Sewer pump station from operation.
The new diversion sewer pipeline will be installed approximately 30 feet deep and will require micro tunneling technology for construction. Two deep launching and receiving pits will be constructed in the Westfield Mall parking lot and two on Bankfield Avenue to install the sewer pipelines. Staff has been in discussion with Westfield Mall (and another property owner) to obtain easements for the new sewer pipelines within the Westfield Mall parking lot and a Right of Entry agreement for equipment staging during construction. The Right of Entry Agreement is substantially agreed upon. The contractor still needs to submit some documents (Traffic Control plans, access routes, and insurance, etc.) for approval. One easement document has been signed. The easement document with Westfield Mall will be signed sometime during the early stages of the construction of the project.
Once the diversion pipeline is complete, the Fox Hills sewer pump station will be abandoned and demolished. In addition, the Overland sewer pump station (5300 Overland Avenue), which was abandoned in 2019, will be demolished as well.
On September 23, 2024, the City Council approved the final plans and specifications and authorized the publication of a notice inviting bids for this project.
DISCUSSION
Construction Contract
The Notice Inviting Bids and bid package were posted on the City’s Planetbids website on October 31, 2024. Two bid addenda were issued. On December 5, 2024, six contractors responded with the following bid amounts:
CONTRACTOR BID AMOUNT
Mladen Buntich Construction Co Inc. $ 7,362,160
MMC, Inc. $ 7,888,840
TORO ENTERPRISES, INC. $ 7,999,700
Mike Prlich and Sons, Inc. $ 8,488,940
Ramona Inc. $ 12,368,350
Blois Construction, Inc. $ 14,327,803
Staff determined Buntich’s bid documents to be responsive and complete. Its bond, contractor’s license, and worker’s compensation insurance were reviewed and determined to meet City requirements. Staff also contacted the references listed on their bid proposal and determined that Buntich performed work satisfactorily for other agencies. Buntich is a well-known and established pipeline contractor who has completed many similar sewer pipeline projects throughout cities and sanitation districts in southern California.
The bid amount is higher than the engineer’s estimate by about $2.0 million. Micro tunneling is a specialized construction method, and its cost is challenging to estimate due to the limited availability of the equipment and the number of similar projects in other agencies.
Construction Management and Inspection
On November 21, 2024, an RFP for Construction Management and Inspection Services was sent to all seven consultants on the 2023-2028 on-call Construction Management and Inspection list. One proposal from NV5 was received on December 12, 2024. Other firms did not submit a proposal mainly due to the lack of relevant project experience and availability of the required construction managers or inspectors.
NV5 previously provided construction management and inspection services for the Bankfield Sewer Pump Station construction and the Diversion Sewer Pipes to Abandon Mesmer and Overland Sewer Pump Stations construction projects, and staff was pleased with their knowledge, experience and inspection effort. NV5 will assign the same person that managed the aforementioned projects to this proposed project. Staff recommends City Council approve a professional services agreement with NV5 for construction management and construction inspection services in an amount not-to-exceed $494,435. Additional 20% contingency in the amount of $98,887 is requested to cover extended construction duration in case of unforeseen conditions.
A construction material testing consultant will be selected from City Council approved on-call geotechnical engineering firms list.
Construction Schedule
The anticipated construction duration is from March 2025 to June 2026. All adjacent businesses will be notified of the work schedule. Weekend and night work may be allowed to expedite completion of the work on the mall property before the 2025 Holiday shopping season.
FISCAL ANALYSIS
Project Budget Amount
PW003 Sewer Enterprise Funds (Fund 204) $ 6,798,161
Estimated Project Expenses Amount
Construction contract (Buntich) $ 7,362,160
Construction contingency (15%) $ 1,100,000
Construction management and inspection (NV5) $ 494,435
CM and inspection contingency (20%) $ 98,887
Material testing services (estimated) $ 50, 000
Miscellaneous expenses (City of LA) $ 192,679
Total Estimated Project Expense $ 9,298,161
The project is funded with Sewer Enterprise Funds (Fund 204). The Adopted Budget for Fiscal Year 2024-2025 includes $6,798,161 CIP Project PW003 (Fox Hills/Bristol Sewage Pump Station Diversion) which can be found in the Summary by Fund in the CIP section of the budget book on page 477 under Fund 204.
The Adopted Budget for Fiscal Year does not include sufficient funding for estimated project expenses in CIP Project No. PW003. An additional $2.5 million is needed to adequately fund the project. A budget amendment is required to appropriate an additional $2.5 million from the Sewer Fund to CIP Project No. PW003. The ending fund balance for the Sewer Fund is projected to be $13.26 million as of June 30, 2025. The budget amendment requires a four-fifths vote of the City Council.
ATTACHMENTS
None
MOTIONS
That the City Council:
1. Award a construction contract to Mladen Buntich Construction Co Inc. in the amount of $7,362,160 as the lowest responsive and responsible bidder for the for the Diversion Sewer Pipes to Abandon Fox Hills Sewer Pump Station Project, PW003; and,
2. Authorize the Public Works Director / City Engineer to approve change orders, if necessary, to the Mladen Buntich contract in an amount not-to-exceed $1,100,000 (15%) to cover contingency costs; and,
3. Approve a professional services agreement with NV5 in an amount not-to-exceed $494,435 for construction management and inspection services; and
4. Authorize the Public Works Director to approve amendment(s), if necessary, to the NV5 agreement, in an amount not-to-exceed $98,887 (20%) to cover contingency costs; and
5. Approve a related budget amendment appropriating $2,500,000 from the Sewer Enterprise Fund (Fund 204) to CIP Project No. PW003 (requires a four-fifths vote); and
6. Authorize the City Attorney to review/prepare the necessary documents; and,
7. Authorize the City Manager to execute such documents on behalf of the City.