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Home My WebLink About07. Authorize the GM to transfer funds for the Pleasant Hill-Grayson Creek Trunk Sewer Project, DP 8412, increase the contingency budget, and execute change orders up to $200,000Page 1 of 4 Item 7. ' CENTRAL SAN BOARD OF DIRECTORS POSITION PAPER MEETING DATE: NOVEMBER 16, 2017 SUBJECT: AUTHORIZE THE GENERAL MANAGER TO TRANSFER $1,000,000 FROM THE CAPITAL IMPROVEMENT BUDGET CONTINGENCYACCOUNT FOR THE PLEASANT HILL-GRAYSON CREEK TRUNK SEWER PROJECT, DISTRICT PROJECT 8412; AUTHORIZE AN INCREASE TO THE CONTRACT CONTINGENCY BUDGET FROM 6 PERCENT TO 8.5 PERCENT; AND AUTHORIZE THE GENERAL MANAGER TO EXECUTE CHANGE ORDERS UP TO $200,000 TO FINALIZE THE CONTRACT FOR THIS PROJECT. APPROVAL RECOMMENDED BY ENGINEERING & OPERATIONS COMMITTEE. SUBMITTED BY: INITIATING DEPARTMENT: EDGAR J. LOPEZ, CAPITAL PROJECTS ENGINEERING AND TECHNICAL SERVICES DIVISION MANAGER CAPITAL PROJECTS REVIEWED BY: JEAN -MARC PETIT, DIRECTOR OF ENGINEERING AND TECHNICAL SERVICES Roger S. Bailey General Manager ISSUE Board of Directors' authorization is required to transfer more than $500,000 in the Capital Improvement Budget (C I B); authorization is also required to increase the contract contingency above the budgeted amount at time of award; and to execute a construction change order in an amount greater than $100,000. BACKGROUND The Pleasant Hill -Grayson Creek Trunk Sewer, District Project 8412, installed over 10,000 feet of replacement trunk and main sewers in the public right of way, with the majority of the work within the City of November 16, 2017 Regular Board Meeting Agenda Packet - Page 32 of 115 Page 2 of 4 Pleasant Hill and a section impacting the City of Martinez. Three major creek crossings, construction on Pleasant Hill Road (major arterial roadway), and abandonment of several sewers in private easements, including along Grayson Creek, wer completed during this project. Central San included the Pleasant Hill Corridor Project, which replaced the trunk sewer on Pleasant Hill Road to build ahead of Pleasant Hill's proposed paving plans. Constructing the sewers prior to Pleasant Hill's project avoids additional paving reconstruction, mobilization costs, and public impacts. Overall, the installation of the new sewers and work performed under this project is a major construction achievement and done successfully without any safety incidents to date. This project was awarded to Mountain Cascade, Inc. (MCI) on February 18, 2016 for a Construction Contract valued at $10,401,854. A Notice to Proceed was issued early April of 2016 with an anticipated completion date in May of 2017. The project has experienced many unanticipated time extensions and cost overruns. MCI was able to achieve substantial completion of the contract by November 1, 2017, ahead of the upcoming winter season, and is currently working on the final project punch -list items. The reasons for the time extension and cost overruns are outlined below: 1) Unexpected Heavy Rains in the 2016-17 Winter: During the winter of 2016-17, the East Bay was hit with significant rain events and wet weather not experienced in many years. During this time, MCI was working in the residential neighborhood sites in Pleasant Hill. Although the design included trenchless construction methods, the rain impacted the construction sites by increasing dewatering operations and resulting in saturated soils that impacted the area for several months, and slowing the project pace more than planned. Additional costs were incurred during this period, which included dewatering equipment rental, settlement monitoring, spoils removal costs, and other unforeseen items. Performing construction during parts of the winter was critical to the project schedule. However, this work did result in more restoration in the residential streets (new asphalt paving or micro -surfacing). 2) Unforeseen Conditions: In addition, many of the existing residential streets were constructed below the standard specifications used today and the sewer construction had to be coordinated in a manner to prevent major street damage. Additional costs were incurred to remedy these deficiencies, which included settlement monitoring, spoils removal costs, unknown utilities, and other unforeseen items. 3) Hard Rock Excavation: A change order was agreed to by Central San and MCI to cover the additional costs for hard rock excavation which was encountered at Westover Drive and Pleasant Hill Road. The cost of this work was $97,900. 4) Coordination with the City of Pleasant Hill (City): The contract with MCI included requirements for traffic control plans and permit conditions within the City. The City required multiple revisions to the permit issued under the bid phase and repeatedly issued multiple conditions as work progressed under the project. Sometimes, these changes were issued daily. There were many unanticipated items required by the City, which included numerous traffic control plans (over 30 plans were submitted), additional CalTrans traffic changeable message sign (CMS) boards, notifications, work hour changes, residential work -zone barriers, City meetings, and inspections. The City also hired a contract inspector and consultant to review and oversee the work since City staff was unavailable and working on other projects. Central San staff worked diligently on a daily basis with the City and its consultants to coordinate the contractor activities and stay ahead of the construction, but the permit conditions and the sewer installation sequencing made it difficult to construct the project in a linear fashion, and rendered the progress slow at times. To reach the progress to date, MCI elected to work weekends and nights on many occasions since the work hours were less restricted and more construction could be facilitated. Additional costs were incurred due to the permit conditions, such as the CMS boards, flaggers, steel plates, standby or loss production, inspection overtime, and other related work. The wet winter and the unanticipated requirements from the City and unforeseen conditions contributed to November 16, 2017 Regular Board Meeting Agenda Packet - Page 33 of 115 Page 3 of 4 the additional time needed to complete the project, also resulting in higher overall project costs. ALT ERNAT IVES/CONSIDERAT IONS Reject all actions, which is not recommended. Due to the heavy construction methods used during this project, Central San hired a third party vibration and monitoring company to document the impacts to the residential properties. These monitors were placed at homes next to the pits and other critical locations throughout the construction sites. This information was helpful to the construction management team and contractor during the project. Despite nearly two years of heavy construction, there have been no incidences that resulted in claims paid by Central San to date. FINANCIAL IMPACTS The Board authorized a total project budget of $13,700,000 at time of award. As of November 3, 2017, staff has projected that the total budget may reach $15,100,000, which is $1,400,000 (approximately 10 - percent budget overrun) to complete the project. The $1,400,000 estimated budget is needed for the following items: Description Budget Additional Amended Budget Construction Contract (MCI) $10,401,854 $0 $10,401,854 Contract Contingency to 8.5% $626,146 $258,000 $884,146 Permits $50,000 $360,000 $410,000 Central San Forces $465,000 $366,000 $831,000 Consultants $757,000 $416,000 $1,173,000 Prebid Costs $1,400,000 $1,400,000 Totals $13,700,000 $1,400,000 $15,100,000 This project is expected to be closed out by this fiscal year. Staff is recommending transferring $1,000,000 from the Fiscal Year 2017-18 Cl B Contingency account and $400,000 from the Pipe -Bursting Contract 2017-2020, District Project 8440, to cover the budget overrun. This action will leave a remaining balance of $81,629 in the C I B contingency account. The General Manager has the authority to transfer the $400,000 from District Project 8440. COMMITTEE RECOMMENDATION The Engineering and Operations Committee reviewed and discussed this subject on November 7, 2017, and recommended approval of the additional budget and authorization increases for the project. Additionally, the Committee suggested that a letter be sent to the City of Pleasant Hill expressing dissatisfaction with the numerous obstacles presented by the City during the construction of this project. RECOMMENDED BOARD ACTION Staff recommends the following: 1. Authorize the General Manager to transfer $1,000,000 from the CI B Contingency Account; and 2. Authorize to increase the contract contingency budget from 6 percent to 8.5 percent and allow the General Manager to execute change orders up to $200,000 for the Pleasant Hill -Grayson Creek Trunk Sewer, District Project 8412. November 16, 2017 Regular Board Meeting Agenda Packet - Page 34 of 115 Page 4 of 4 November 16, 2017 Regular Board Meeting Agenda Packet - Page 35 of 115