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Home My WebLink About05. Review draft Position Paper to award a construction contract for the Walnut Creek Sewer Renovations, Phase 11, District Project 8422 Central San 50 BOAR[ OF DIRECTORS 0 f J f POSITION PAPER Board Meeting Date: April 6, 2017 Subject: AWARD A CONSTRUCTION CONTRACT AND AUTHORIZE THE GENERAL MANAGER TO EXECUTE CONTRACT DOCUMENTS SUBJECT TO SUBMITTAL REQUIREMENTS WITH CRATUS, INC. FOR THE CONSTRUCTION OF THE WALNUT CREEK SEWER RENOVATIONS, PHASE 11, DISTRICT PROJECT 8422" Submitted By: Initiating Dept.lDiv.: Mark Wenslawski, Associate Engineer Engineering and Technical Services/Capital Projects REVIEWED AND RECOMMENDED FOR BOARD ACTION: S. Mestetsky—Senior Engineer E. Lopez— Capital Projects Division Manager JM. Petit— Director of Engineering and Technical Services Roger Bailey General Manager ISSUE: On February 28, 2017, three (8) bids were received for the construction of the Walnut Creek Sewer Renovations, Phase 11, District Project 8422 (Project). The Board of Directors (Board) must award the contract or reject bids within 50 days of the bid opening. Authorize the General Manager to execute the Contract Documents subject to SUBMITTAL requirements. BACKGROUND: The Project is part of the ongoing sewer renovation within the Collection System Program of the Capital Improvements Budget to replace or rehabilitate aging sewer infrastructure that is in poor condition. This Project aligns with Central San's Strategic Plan, specifically the following: • Goal No. 1 — Provide exceptional customer service • Goal No. 2 — strive to meet regulatory requirements i Goal No. 0 — Maintain a reliable wastewater infrastructure The Project is primarily located in the Walnut Heights neighborhood between Mt. view Boulevard and Rudgear Road, includes Boulevard Way and ether locations in walnut Creek. The scope of work consists of replacement or rehabilitation of approximately 01100 lineal feet of 0-inch to 10-inch diameter sewer mains, construction of manholes, and other related work within public rights-of-way, easements, and near Greeks. The project location map is identified in Attachment 1. Central San staff prepared the plans and specifications for the Project. The Engineers estimate for construction is $2,800,000. This project was advertised on January 27 and February 2, 2017. Three (8) sealed bids ranging from $2,008,845 to $5,497,022 were received and publicly opened on February 28, 2017. The Engineering Department conducted a technical and commercial review of the bids and determined that Cratus, Inc. is the lowest responsive and responsible bidder. References were provided for Cratus, Inc. and staff received satisfactory feedback. Cratus, Inc. is new to Central San, Page 1 of 6 POSITION PAPER Board Meeting Date: Ap ri 16, 2017 subiect: AWARD A CONSTRUCTION CONTRACT AND AUTHORIZE THE GENERAL MANAGER TO EXECUTE CONTRACT DOCUMENTS SUBJECT TO SUBMITTAL REQUIREMENTS WITH CRATUS, INC. FOR THE CONSTRUCTION OF THE WALNUT CREEK SEWER RENOVATIONS, PHASE 11 , DISTRICT PROJECT 8422 however, has done sewer work in the City of Berkeley and San Jose, and is a prequalified sewer contractor for the San Francisco Public Utilities Commission. A summary of bids received is shown in Attachment 2. Central San will administer the construction contract and provide contract administration, inspection, survey, office engineering, and submittal review. Consultant inspection will be used to supplement staff on an as-needed basis. CEQA: Staff has concluded that this project is exempt from CEQA under District CEQA Guidelines Section 15302, because it involves replacement of existing sewer facilities at substantially the same locations and with the same purpose and level of activity as the facilities being replaced. Any capacity increases are for non-growth inducing, wet weather purposes. This project also is exempt under District CEQA Guidelines Section 15061(b)(3), since it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. This certainty is based on Central San's experience with numerous sewer construction projects of this nature, the relatively short distances involved, and Central San's mitigating construction specifications. These specifications are standardized general and special conditions that are made part of the project bid documents to address environmental considerations, such as protecting trees and riparian areas, as well as compliance with applicable federal, state, county, district, municipal and local laws, ordinances, orders, and regulations. Approval of this project will establish the Board of Directors' independent finding that this project is exempt from CEQA. ALTERNATIVES/CONSIDERATIONS: Reject all bids, which is not recommended. FINANCIAL IMPACTS: The total estimated project cost is $3,934,000, including design, bid price, contingency, construction management, and consultant costs as detailed in Attachment 3. This project is included in the Fiscal Year 2016-17 Capital Improvement Budget on page 107 with a total estimated project budget of $3,750,000. The additional $184,000 budget required to fund the Project will be transferred from the Urgent Repairs Project, District Project 8434, which received only one bidder significantly above the engineer's estimate. A portion of the scope of work under the Urgent Repairs Project is anticipated to be completed under the proposed contract. COMMUNITY OUTREACH: Central San held a public meeting on January 12, 2017, at the Collection System Operations Department building in Walnut Creek to assist ►with any questions or concerns by the residents along the proposed construction alignments. In addition, staff has notified and met with several homeowners directly to discuss the upcoming sewer work, construction impacts, and schedules for easements. Page 2 of 6 POSITION PAPER Board Meeting Date: April 6, 2017 subiect: AWARD A CONSTRUCTION CONTRACT AND AUTHORIZE THE GENERAL MANAGER TO EXECUTE CONTRACT DOCUMENTS SUBJECT TO SUBMITTAL REQUIREMENTS WITH CRATUS, INC. FOR THE CONSTRUCTION OF THE WALNUT CREEK SEWER RENOVATIONS, PHASE 11, DISTRICT PROJECT 8422 COMMITTEE RECOM-MENDATION: The Engineering and Operations Committee reviewed this project at its meeting on March 17, 2017, and recommended approval of the project. RECOMMENDED BOARD ACTION: Staff recommends the following: 1 . Find that the project is exempt from CEQA, 2. Award a construction contract in the amount of $2,698,845 for the construction of the Walnut Creek Sewer Renovations, Phase 11 , District Project 8422, to Cratus Inc., the lowest responsive and responsible bidder, and 3. Authorize the General Manager to execute the Contract Documents subject to SUBMITTAL requirements and include up to 10-percent contingency. Attached Supgorting Document(s): 1. Project Location Map 2. Summary of Bids 3. Bost-Bid lPreconstruction Estimate Page 3 of 6 B ....�. F 'J 1. T- Project Areas J l J SFA RD P J fJ, �. 1; I - "I JI ............. �P 24 �Ar ft J j � J J f r r r J � • J / j I • � f J � •/ Jf/J ,fj J�•� Ij I • f f f f I/I I•{I f j � I f U•GEA RD Jf r r r ,r N r 0 2,400 f Feet Central Contra Costa Walnut Creek Sewer Renovation Phase 11 Attachment Sanitary District District Project 8422 'I Protecting Project Location Page 4 of 6 ATTACHMENT 2 WALNUT CREEK SEWER RENOVATIONS, PHASE 11 DISTRICT PROJECT 8422 SUMMARY of BIDS PROJECT No.: 8422 No. of ADDENDA: o DATE: FEBRUARY 28 2017 PROJECT NAME: WALNUT CREEK SEWER RENOVATIONS, PHASE 11 PROJECT LOCATION: WALNUT CREEK, CA ENGINEER'S ESTIMATE: $2,800,000 No. BIDDER BID PRICE Cratus, Inc. 1 $2,598,845 San Francisco, CA 94124 K. J. Woods Construction, Inc. 2 $3,180,000 San Francisco, CA 94124 Ranger Pipelines, Inc. 3 $5,4979622 San Francisco, CA 94124 BIDS OPENED BY/s/ Elaine R. Boehme, CMC DATE: February 28, 2917 Page 5of6 ATTACHMENT 3 WALNUT CREEK SEINER RENOVATIONS, PHASE 11 DISTRICT PROJECT 8422 POST-BID 1 PRECONSTRUCTION ESTIMATE No. Item Description Amounts % construction Cost 1. CONSTRUCTION a. Construction Contract $23698,845 b. 10% Contingency $269,155 c. Permit $35,000 SUBTOTAL - CONSTRUCTION COST $39003,006 100% 2. CONSTRUCTION MANAGEMENT a. District Forces - Construction Management (Engineering, InsInspection, Survey) $298,000 p - Public Relations $25,000 - Right of Way $2,000 b. Consultants - Inspection $35,000 - Material Testing $20,000 - Geotechnical and Arborist $10,000 SUBTOTAL - CONSTRUCTION MANAGEMENT $390,000 12.9% 3. PREBID EXPENDITURES a. Engineering (Design, Survey, Drafting) $541,000 SUBTOTAL- PREBID EXPENDITURES $541,000 18.0% 4. TOTAL ESTIMATED PROJECT COST $3,9341000 Page 6of6