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Home My WebLink About06. Award construction contract to Cratus, Inc. for South Orinda Sewer Renovations, Phase 6, DP 8433 Page 1 of 7 Item 6. CENTRAL SAN BOARD OF DIRECTORS ' POSITION PAPER MEETING DATE: MARCH 1, 2018 SUBJECT: AWARD A CONSTRUCTION CONTRACT IN THE AMOUNT OF $3,450,940 TO CRATUS, INC., THE LOWEST RESPONSIVE BIDDER FOR THE SOUTH ORINDA SEWER RENOVATIONS, PHASE 6, DISTRICT PROJECT 8433; CONSIDER EXEMPTION FROM THE CALIFORNIA ENVIRONMENTAL QUALITYACT (CEQA); AUTHORIZE UP TO A 10% CONTINGENCY; AND AUTHORIZE TRANSFER OF $968,762 IN THE CAPITAL IMPROVEMENT PROGRAM SUBMITTED BY: INITIATING DEPARTMENT: MARK WENSLAWSKI, ASSOCIATE ENGINEERING AND TECHNICAL SERVICES- ENGINEER CAPITAL PROJECTS REVIEWED BY: SASHA MESTETSKY, SENIOR ENGINEER EDGAR J. LOPEZ, CAPITAL PROJECTS DIVISION MANAGER JEAN-MARC PETIT, DIRECTOR OF ENGINEERING AND TECHNICAL SERVICES Roger S. Bailey General Manager ISSUE On February 14, 2018, two bids were received for the construction of the South Orinda Sewer Renovations, Phase 6, District Project 8433 (Project). The Board of Directors (Board) must award the contract or reject bids within 50 days of the bid opening. BACKGROUND The Project is part of the ongoing sewer renovation within the Collection System Program of the Capital March 1, 2018 Regular Board Meeting Agenda Packet- Page 50 of 225 Page 2 of 7 I mprovement Budget (CI B)to replace or rehabilitate deteriorated sewer infrastructure that is in poor condition. This work is coordinated with local jurisdictions, cities, utilities, and private property owners and tenants. The City of Orinda (City) plans on increasing their paving plans. In anticipation and coordination with the City, Central San evaluated all the current projects listed in the Collection System Program within the City, which included the scope of this Project, the North Orinda Sewer Renovations Phase 7, Collection System Urgent Repairs, and the Pipebursting 2017-2020 Contract. All of which included sewers identified for replacement within the City. Due to all of the proposed City paving, staff decided to combine the project scopes and budgets to address all the critical and high priority sewers, which resulted in replacing or rehabilitation approximately 8,900 feet of sewer mains, primarily 6-inch clay sewers, construction of manholes, and other related work within City rights-of-way and private easements. The Project is located in the downtown area and various neighborhoods in southern Orinda (south of Highway 24), as identified in Attachment 1. Last year the Collection System Urgent Repairs project was bid, received one bidder, and was rejected due to significantly higher prices compared to those received under the Sewer Renovation Program. Staff is concerned that the Pipebursting Contract 2017-2020 will have a similar result and lack of bids. Staff has also contacted several previous bidders and confirmed that there is not much interest in performing longer term contracts in the current bid market. These projects will be closed this fiscal year and future budgets added to the Sewer Renovation Program. Central San staff prepared the plans and specifications for the Project. These plans and specifications were reviewed and coordinated with the City. The Engineer's estimate for construction is $3,200,000. This Project was advertised on January 22, and 26, 2018. Two sealed bids ranging from $3,450,940 to $3,788,000 were received and publicly opened on February 14, 2018. The Engineering and Technical Services Department conducted a technical and commercial review of the bids and determined that Cratus, Inc. is the lowest responsive and responsible bidder. Cratus, Inc. has worked for Central San in the past and successfully completed the Walnut Creek Sewer Renovations, Phase 11 project last summer. A summary of bids received is shown in Attachment 2. Central San will administer the construction contract and provide construction management, resident engineering, inspection, survey, administration 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 California Environmental Quality Act (CEQA) under Central San CEQA Guidelines Section 15302, because it involves replacement of existing 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. The Project also is exempt under Central San 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 distance 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's independent finding that this Project is exempt from CEQA. ALTERNATIVES/CONSIDERATIONS Delaying or postponing the sewer replacement work may not produce cost savings, especially in the March 1, 2018 Regular Board Meeting Agenda Packet- Page 51 of 225 Page 3 of 7 current bid climate. Several sites have been coordinated with the public and the City's upcoming 2018 paving plan. The purpose of the Collection System Urgent Repairs and the Pipebursting Contract 2017-2020 was to allow Central San the ability to conduct urgent sewer repair or replacement work under a three year contract. Staff will continue the practice of recommending construction change orders to address urgent sewer issues under ongoing collection system projects.Another alternative Central San is considering is the Uniform Public Construction Cost Accounting Act which may be used to address the intent of both projects. An alternative would be to reject all bids, which is not recommended. FINANCIAL IMPACTS The total estimated Project cost is $4,721,000, including planning, design, bid price, contingency, construction management, and consultant costs as detailed in Attachment 3. This Project will span two fiscal years and is being funded by the South Orinda Sewer Renovations, Phase 6, District Project (DP) 8433, Collection System Urgent Repairs, DP 8434 and the Pipe Burst Blanket Contract 2017-2020, DP 8440, included in the Fiscal Year(FY) 2017-18 CI B. Upon Board approval of the contract, the General Manager will transfer a combined $968,762 from the Collection System Urgent Repairs, DP 8434 and the Pipe Burst Blanket Contract 2017-2020, DP 8440 as shown in the following table: Financial Impact Table: Amount 0 Funds budgeted this FY 2017-18 for this project $3,752,238 ❑ Funds taken from current FY 2017-18 Cl B contingency $ 0 Funds transferred from current FY 2017-18 projects: ❑ a. Updated forecast; estimated savings from project available $ 0 ❑ b.Acceleration of funds for project that is budgeted in future year $ 0 0 c. Combined project scope for bidding purposes: DP8434 and DP8440 $968,762 d. Potential future year budget impact ❑ (May be mitigated through (1) savings from close-outs of current year $ 0 projects; (2) reprioritizing future year projects; (3) cost savings on future year projects) Total Current Year Cost $ 4,721,000 COMMUNITY OUTREACH Central San held a public meeting on January 23, 2018, at the Orinda Library to assist with any questions or concerns by the residents along the proposed construction alignments. In addition, staff has notified and met with several easement homeowners directly to discuss the upcoming sewer work, construction impacts, project schedule, and to receive input. COMMITTEE RECOMMENDATION The Engineering and Operations Committee reviewed this Project at the meeting on February 20, 2018. Member McGill recommended Board approval of the project. Chair Causey also supported the project but expressed concern with the transferring of funds from other projects to fund this project. He would prefer that transfers be made from reserves or contingency instead. Chair Causey recommended 3 of the 4 staff recommendations, but stated he could not support Board approval on the transfer of funds in the Capital Improvement Program. However, after discussion, the Committee supported to include this item under the Board Consent Calendar. Member Causey supported that this item be on the Board Consent Calendar but indicated that he would likely make a statement regarding the funding. March 1, 2018 Regular Board Meeting Agenda Packet- Page 52 of 225 Page 4 of 7 RECOMMENDED BOARD ACTION Staff recommends the following: 1. Award a construction contract in the amount of$3,450,940 for the construction of the South Orinda Sewer Renovations, Phase 6, District Project 8433, to Cratus, Inc., the lowest responsive and responsible bidder; 2. Find that the Project is exempt from CEQA; 3. Authorize the General Manager to execute the Contract Documents subject to submittal requirements and include up to a ten-percent contingency; and 4. Authorize the General Manager to transfer$968,762 in the Capital Improvement Program. Strategic Plan Tie-In GOAL ONE:Provide Exceptional Customer Service Strategy 1 - Foster Customer Engagement and Awareness GOAL TWO: Strive to Meet Regulatory Requirements Strategy 2- Strive to Minimize the Number of Sanitary Sewer Overflows GOAL FIVE:Maintain a Reliable Infrastructure Strategy 2- Facilitate Long-term Capital Renewal and Replacement ATTACHMENTS: 1. Project Location Map 2. Summary of Bids 3. Post-Bid/P reconstruction Estimate March 1, 2018 Regular Board Meeting Agenda Packet- Page 53 of 225 Page 5 of 7 Project Areas 24 �a _ 5 �J.�Z1pR PVP OP TA-R,q D 00 q9 SEM BL-Vb O �v D 0 2,400 Feet ,&VCENTRAL SAN South Orinda Sewer Renovations Phase 6 Attachment District Project 8433 1 • IIII=• Project Location March 1, 2018 Regular Board Meeting Agenda Packet- Page 54 of 225 Page 6 of 7 ATTACHMENT 2 SOUTH ORINDA SEWER RENOVATIONS, PHASE 6 DISTRICT PROJECT 8433 SUMMARY OF BIDS PROJECT NO.: 8433 NO. OF ADDENDA: 1 DATE/TIME: FEBRUARY 14, 2018 /2PM PROJECT NAME: SOUTH ORINDA SEWER RENOVATIONS, PHASE 6 PROJECT MANAGER: MARK WENSLAWSKI PROJECT LOCATION: 5019 IMHOFF PLACE, MARTINEZ, CALIFORNIA ENGINEER'S ESTIMATE: $3,200,000 NO. BIDDER BID PRICE 1 Cratus, Inc. $3,450,940 San Francisco, California 2 K.J Woods Construction, Inc. $3,788,000 San Francisco, California BIDS OPENED BY: /s/ Donna M. Anderson DATE: February 14, 2018 March 1, 2018 Regular Board Meeting Agenda Packet- Page 55 of 225 Page 7 of 7 ATTACHMENT 3 SOUTH ORINDA SEWER RENOVATIONS, PHASE 6 DISTRICT PROJECT 8433 POST-BID/PRECONSTRUCTION ESTIMATE % of No. Item Description Amounts Construction Cost 1. CONSTRUCTION a. Construction Contract $3,450,940 b. 10% Contingency $345,060 c. Permits $20,000 SUBTOTAL — CONSTRUCTION COST $3,816,000 100% 2. CONSTRUCTION MANAGEMENT a. District Forces - Construction Management $150,000 (Engineering, Survey) - Public Relations/Right of Way $15,000 b. Consultants - Material Testing/Geotechnical/Others $40,000 - Inspection $160,000 SUBTOTAL - CONSTRUCTION MANAGEMENT $365,000 10% 3. PREBID EXPENDITURES a. Engineering (Design, Survey, Drafting) $540,000 SUBTOTAL - PREBID EXPENDITURES $540,000 14% 4. TOTAL ESTIMATED PROJECT COST $4,721,000 March 1, 2018 Regular Board Meeting Agenda Packet- Page 56 of 225