PURPOSE

Staff requests that the Burbank City Council (Council):

• Approve and authorize execution of a Utility Agreement with Caltrans for bridge widening and relocating electrical facilities related to the SR-134 Ramp Project; and appropriate $3,736,606 from CDD-Planning/Transportation to fund this work.  

• Approve and authorize extending the Bock Company contract for two years for underground conduit systems and related improvements under Bid Schedule 1137, in an amount not-to-exceed $1,730,000 for the first year and $1,250,000 for the second year subject to formal budget approvals by the City Council as required.

Both actions are necessary to begin relocating the electrical facilities by May 1, 2007, so that the work can be completed by April 30, 2009.

BACKGROUND

The SR-134 Ramp Project has become active again. Caltrans intends to build the westbound on ramp to SR-134, near the intersection of Hollywood Way and Alameda Avenue. Several years ago, Caltrans had relocated its westbound off ramp a hundred feet or so to the east. Council may recall that BWP had to abandon its existing Hollywood Way Station and build a new one to the east. Both relocations enabled Caltrans to secure the routing for the initial leg of the westbound on ramp.

At present, Caltrans has selected the Santa Fe Spring-based Griffith Company to build the westbound on ramp at an estimated cost of $29.5 million. Caltrans is expected to issue a purchase order in March and will probably begin construction by FY 2007/08, some three-and-a-half months from the date of this report.

To accommodate the westbound on ramp, BWP will need to relocate its electrical underground facilities. The SR-134 Ramp Project requires BWP to relocate its electrical underground facilities at certain locations:

• New electrical ductwork, including that needed for streetlighting, is needed in all three bridges spanning Alameda Avenue, Hollywood Way, and Pass Avenue.

• About 1000 lineal feet of new ductwork is needed along Riverside Drive between Olive Avenue and Hollywood Way. 

• An overhead pole line in the alley west of Pass Avenue and behind Vons Grocery Store needs to be re-routed underground through the new ductwork along Riverside Drive.

An overhead pole anchor at Screenland Drive on the north side of SR-134 also needs to be relocated.

Caltrans has set aside $2,989,285 for this work, along with a 25% contingency. BWP has reviewed the design and estimated costs for the underground work with ORSA Consulting Engineers, Inc. (ORSA) and Dorado Company (Dorado), both of whom consult for the Community Development Department (CDD). All are comfortable that Caltrans has set aside sufficient funds.

Before undergrounding work can proceed, the Council will need to authorize BWP to enter into a Utility Agreement with Caltrans. The attached Utility Agreement would authorize the relocation of BWP�s electrical facilities, per the plans and specifications prepared by ORSA and approved by BWP and Caltrans. The Utility Agreement would also enable Caltrans to reimburse the City for project expenditures and would maintain prior rights for any future relocation.

Before undergrounding work can proceed, the Council will also need to authorize appropriation of the $2,989,285 base amount, plus the 25% contingency of $747,321, for a total amount of $3,736,606. The appropriation would be from CDD-Planning/Transportation Unappropriated Account No.127.ND000.30004.0000.00000 to CDD-Planning/Transportation Project Account No. 127.CD33A.70002.17615. CDD�Planning/Transportation would meet the cash flow requirements by authorizing BWP to charge up to $3,736,606 to its account and Caltrans will reimburse CDD as the project progresses.

Staff�s challenge is to select a contractor who will do the underground duct work at a competitive price and begin by May 2007. For planning purposes, it is useful to divide the undergrounding work into three components:

• Installing the new ductwork and maintenance vaults

• Procuring the underground cable that will be routed through the new ductwork and maintenance vaults.

• The actual work of pulling and splicing the cable, as well as removing any abandoned overhead lines or underground cable

BWP�s underground crew will pull and splice the cable, with other BWP crews assisting as necessary with the removal of abandoned circuits. BWP can administratively extend its existing contract with Okonite Company by one year in order to assure the timely procurement of the underground cable.

Staff�s challenge was to find a timely way to engage a contractor for the ductwork and maintenance vaults, particularly for the difficult work within the bridges. Caltrans is expected to issue a Purchase Order in March and will probably begin construction by FY 2007/08. If Caltrans were to begin its work on the Alameda Bridge as early as July, then BWP�s underground contractor would need to do preparatory work in May.

Staff�s solution is to engage Bock Company. Under Bid Schedule 1137, and effective May 1, 2003, the BWP Board had approved a time-and-materials contract with Bock for an amount not-to-exceed $600,000. The contract had a price adjustment clause:

• Labor and equipment costs followed the CPI Index.

• Materials costs were pass-through.

• The mark-up for administrative costs was 10% of actual invoiced costs.

The contract also has a renewal clause allowing contract renewal on a year-to-year basis for up to three years beyond the first year. Owing to Bock�s excellent track record, BWP has exercised this clause for all three additional years, extending the contract to April 30, 2007.

Before BWP can engage Bock beyond April 30, 2007, the Council needs to authorize a two year extension. BWP has no administrative authority to extend the contract with Bock beyond four years from May 1, 2003. Any further extension of the contract requires Council approval.

ANALYSIS

The underground duct and maintenance vault work for the SR-134 Ramp Project will cost between $782,500 and $980,000. The $2,989,285 base amount breaks down as follows:

• Installing ductwork and maintenance vaults is expected to cost $1,181,000, out ofwhich $782,500 will be spent during the 12-month period May 1, 2007 to April 30, 2008.

• Procuring and installing underground cable (and related devices) is expected to cost $1,415,089.

• Relocating the overhead anchor at Screenland Drive, plus miscellaneous charges, is expected to cost $52,206.

• ORSA and Dorado is expected to cost a total of $153,250.

• Streetlight conduit and cable work is expected to cost $187,430.

If the 25% contingency is applied across the board, then the cost of the duct work between May 1, 2007 and April 30, 2008 would be 125% of $782,500, or $980,000 in round figures.

For underground jobs, BWP has engaged private contractors on a time-and-material basis as well as a lump-sum basis. Since the early 1980�s, BWP has been using private contractors to install ducts and maintenance vaults for its electrical underground system. BWP�s usual practice is as follows:

• For substantial underground jobs with plenty of lead time, BWP uses competitive bidding on a job-by-job basis. The ample lead time usually renders moot the slowness of this approach, and the job-specific bidding usually makes the bid price lower than otherwise.

• For small and medium jobs up to $300,000, or larger jobs with time constraints, BWP has used a quicker approach, annual competitive bidding on a time-and-material basis. BWP staff has to prepare only one specification, rather than one per job, and they do not have to prepare drawings or obtain excavation permits until they issue a job to the contractor. Staff scrutiny as well as at least annual review before extension of contract for more than one year can limit possibly higher costs from time-and-materials bidding.

From time to time, BWP has engaged Bock on both a time-and-materials and a lump-sum basis with a not-to-exceed cap, according to the nature of the job being bid and Bock�s success in presenting the lowest responsible bid.

Given the cost uncertainties, the underground substructure work for the SR-134 Ramp Project is best pursued on a time-and-materials basis. As mentioned earlier, underground substructure work could begin as early as May, although Caltrans has not yet issued a firm construction schedule. Erring on the side of quickness, one could argue that going on a time-and-material-basis, especially when seeking competitive bids, is a better than the lump sum approach. However, a more compelling reason is the high cost uncertainty in spite of well-defined job sites.

In the course of doing its earlier work on the SR-134 Ramp Project, Caltrans initiated a number of changes during the construction phase as various unexpected field conditions presented themselves. The work that Caltrans plans to do in the current phase carries a 25% cost contingency factor, suggesting that Caltrans is making a considerable allowance for more unexpected field conditions. Staff therefore believes that a time-and-materials approach is more prudent than a lump sum approach, in spite of the high dollar value of the work.

Given the current bidding climate, the underground substructure work for the SR-134 Ramp Project is best pursued on a sole-source basis if a suitable contractor can be identified. Between March and May, staff could go out for competitive bids on a time-and-material basis, though the schedule would be tight. However, BWP has recently had difficulty attracting enough bids; only two contractors responded to the Olive Avenue Utility Underground District work with very high bids, in spite of BWP�s extensive outreach efforts. A re-bid attracted one bid response, fortunately one much closer to the engineer�s estimate. Given the continued tightness of the construction market, there is a strong chance that even bidding on a time-and-material basis would be longer and less satisfactory than in the past.

Bock is a very suitable contractor. Bock has an excellent track record with BWP with regard to both cost and performance:

• Bock was the lowest bidder when BWP went out to bid in 2003. Per the contract, labor and equipment price adjustments were limited by the CPI. Materials costs were pass through, and administrative costs were limited to 10%. Since 2003, construction bids have risen more dramatically than the contract�s allowed price adjustments.

• Bock is willing to keep its labor costs constant during the May 1, 2007 to April 30, 2008 period.  Bock would be entitled to COLA adjustment for the second year of the contract.

• Bock is Burbank-based and has an excellent track record stretching back more than 20 years. Bock has responded safely, quickly, and effectively for both planned substructure construction and emergency repair work. They are very familiar with the City�s requirements, work effectively with other City departments and maintain good public relations.

• Extending the existing contract with Bock is the simplest and quickest way to get an underground substructure contactor on board.

For these reasons, staff believes it unlikely that a time-and-material competitive bid process, even if swifter than expected, would yield a cost or schedule result superior to extending the existing contract with Bock.

If Bock is to do the work for the SR-134 Ramp project, the contract extension should also allow for BWP�s other underground substructure work. In FY 2007/08, BWP expects to spend $750,000 on electric underground substructure work. (This is higher than its recent pace of $600,000 per year because of more aggressive maintenance vault repair as well as an underground project along Hollywood Way.) Of this proposed budgeted amount, $600,000 is for various system improvement projects, $100,000 is for customer-funded projects, and $50,000 is for fiber optic projects. 

The arguments favoring the extension of the Bock contract for the SR-134 Ramp Project also favor extending the contract for BWP�s other work. The contract extension would be for a total of $1,730,000, of which $980,000 is for SR-134 (including contingency) and $750,000 is for BWP�s other projects.

BWP complied with bargaining group MOUs. During the bidding process in 2003, BWP met and conferred with BCEA (per Article XIA.1of the BCEA MOU), the IBEW (per Section E.5 of the IBEW MOU) and BMA (per Article XI of the BMA MOU). No labor union had any objection to proceeding with a private contractor install electric underground ducts and maintenance vaults and related improvements. The work contemplated under the contract extension is of the same nature.

FISCAL IMPACT STATEMENT

The fiscal impact is positive. Extending the contract with Bock offers the best chance of controlling initial costs and meeting the schedule for the SR-134 Ramp project. Because the contract is on a time-and-materials basis, the Council neither obligates itself to spend the full not-to-exceed amount nor has to commit to BWP proposed capital improvement spending levels for underground substructure work.

Staff proposes to fund this utility construction work via the Fund 127 Development Impact Fee. If approved by the City Council, $3,736,606 from account 127.ND000.30004.0000.000000 Unappropriated Development Impact Fees to project account 127.CD33A.70002.0000.17615. CDD�Planning/Transportation would meet the cash flow requirements by authorizing BWP to charge up to $3,736,606 to its account and Caltrans will reimburse CDD as the project progresses.

CONCLUSION

Based on all foregoing reasons stated above, such as the urgency of the construction schedule and the current construction market, staff believes that a finding can be made under Charter Section 54 that it is in the best interest of the City to waive formal bidding and extend the contract with Bock Company for one more year. 

RECOMMENDATION

Staff recommends that the Burbank City Council (Council) adopt a Resolution that:

• Approve and authorize execution of a Utility Agreement with Caltrans for bridge widening and relocating electrical facilities related to the SR-134 Ramp Project; and appropriate $3,736,606 from CDD-Planning/Transportation to fund this work.  

• Approve and authorize extending the Bock Company contract for two years for underground conduit systems and related improvements under Bid Schedule 1137, in an amount not-to-exceed $1,730,000 for the first year and $1,250,000 for the second year subject to formal budget approvals by the City Council as required.

If the Council concurs, the appropriate action would be the motions to adopt Resolutions entitled:

1.         A RESOLUTION OF THE COUNCIL OF THE CITY OF BURBANK AMENDING THE FISCAL YEAR 2006-2007 ANNUAL BUDGET AND APPROVING AND AUTHORIZING EXECUTION OF ELECTRIC UTILITY AGREEMENT NO. 7UA-11432 BETWEEN THE CITY OF BURBANK AND THE STATE OF CALIFORNIA FOR THE SR-134 RAMP PROJECT

2.         A RESOLUTION OF THE COUNCIL  OF THE CITY OF BURBANK APPROVING AN EXTENSION OF THE CONTRACT WITH BOCK COMPANY FOR TWO YEARS FOR THE CONSTRUCTION OF UNDERGROUND CONDUIT SYSTEMS AND RELATED IMPROVEMENTS UNDER BID SCHEDULE NO. 1137 IN AN AMOUNT NOT-TO-EXCEED $1,730,000 FOR THE FIRST YEAR AND $1,250,000 FOR THE SECOND YEAR AND AUTHORIZING EXECUTION OF SAID CONTRACT EXTENSION.

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Attachment

c:          R. Morillo

            P. Herman

            L. Villegas

            B. Liu

            G. Hermann

Amended Resolution Title

A RESOLUTION OF THE COUNCIL OF THE CITY OF BURBANK APPROVING AN EXTENSION OF THE CONTRACT WITH BOCK COMPANY FOR TWO YEARS FOR THE CONSTRUCTION OF UNDERGROUND CONDUITS SYSTEMS AND RELATED IMPROVEMENTS UNDER BID SCHEDULE NO. 1137 IN AN AMOUNT NOT-TO-EXCEED $1,730,000 FOR THE FIRST YEAR AND $1,250,000 FOR THE SECOND YEAR AND AUTHORIZING EXECUTION OF SAID CONTRACT EXTENSION.

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