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HomeMy WebLinkAbout03.b.Review draft Position Paper to award a construction contract in the amount of $3,031,469 to Cratus, Inc., the lowest responsive bidder for the Lafayette Sewer Renovations, Phase 13, District Project 8452; consider exemption from the California Envir Page 1 of 7 Item 3.b. CENTRAL SAN BOARD OF DIRECTORS POSITION PAPER DRAFT MEETING DATE: MARCH 28, 2019 SUBJECT: REVIEW DRAFT POSITION PAPER TO AWARD A CONSTRUCTION CONTRACT IN THE AMOUNT OF $3,031,469 TO CRATUS, INC., THE LOWEST RESPONSIVE BIDDER FOR THE LAFAYETTE SEWER RENOVATIONS, PHASE 13, DISTRICT PROJECT 8452; CONSIDER EXEMPTION FROM THE CALIFORNIA ENVIRONMENTAL QUALITYACT (CEQA); AND AUTHORIZE UP TO A 15-PERCENT CONTINGENCY SUBMITTED BY: INITIATING DEPARTMENT: KEITH GELLERMAN, ASSOCIATE ENGINEER ENGINEERING AND TECHNICAL SERVICES- CAPITAL PROJECTS REVIEWED BY: SASHA MESTETSKY SENIOR ENGINEER EDGAR J. LOPEZ, CAPITAL PROJECTS DIVISION MANAGER JEAN-MARC PETIT, DIRECTOR OF ENGINEERING AND TECHNICAL SERVICES ISSUE The Board of Directors (Board) must award the contract or reject bids within 50 days of the bid opening. Authorization is also required for the General Manager to execute the Contract Documents subject to submittal requirements and include up to a 15-percent contingency. BACKGROUND The Lafayette Sewer Renovations, Phase 13, District Project 8452 (Project) is part of the ongoing sewer renovation within the Collection System Program of the Capital Improvement Budget (CI B)to replace or rehabilitate deteriorated sewer infrastructure that is at the end of its useful life and in poor condition. The construction work is coordinated with local jurisdictions, cities, utilities, and private property owners and tenants. The Project consists of approximately 11,000 feet of sewer replacement using open-trench construction, pipe-bursting, sliplining, and cured-in-place pipe (CI PP) methods. The majority of this Project is located within the City of Lafayette and several sites in the Town of Moraga, as shown in Attachment 1. Approximately 4,000 feet of the 11,000 feet of replacement is being done by C I PP. March 28, 2019 Special EOPS Committee Meeting Agenda Packet- Page 6 of 36 Page 2 of 7 Central San staff prepared the plans and specifications for the Project. The Engineer's estimate for construction was $3,500,000. This Project was advertised on February 11 and 18, 2019. Six sealed bids ranging from $3,031,469 to $4,458,635 were received and publicly opened on March 6, 2019. The Capital Projects Division conducted a technical and commercial review of the bids and determined that Cratus, Inc. (Cratus) is the lowest responsive and responsible bidder. Cratus has successfully completed other Central San sewer construction projects in the Walnut Creek, and north and south Orinda areas.A summary of bids received is shown in Attachment 2. Several bids were below the Engineer's estimate and competitive with bid costs lower than last year in open-trench construction and CI PP. Central San will administer the construction contract and provide construction management, resident engineering, survey, administration, and submittal review. Consultant surveying services will be used to supplement staff on an as-needed basis. Construction inspection will be performed by one of Central's San's consultant inspection service agreements. CEQA: Staff has concluded that this Project is exempt from 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 is not recommended since several sites have been coordinated with the public, City of Lafayette, Town of Moraga, California Department of Transportation, Bay Area Rapid Transit, East Bay Municipal Utility District, and sites based on the Riverwatch agreement. Another alternative would be to reject all bids, which is not recommended. FINANCIAL IMPACTS The total estimated project cost is $4,317,000, including planning, design, bid price, contingency, construction management, and consultant costs as detailed in Attachment 3. This Project will span into next Fiscal Year(FY) 2019-20 and is being funded by the Collection System Sewer Renovation-Phase 1, District Project 8451 (DP 8451), included in the FY 2018-19 CI B on page 165. There is adequate funding in DP 8451 for this Project as shown in Attachment 4, a graph representing the total budget authorized, project commitments, and remaining capacity for sewer renovation projects by fiscal year. Upon award, the budget modifications will be reflected in the upcoming FY 2019-20 C I B. March 28, 2019 Special EOPS Committee Meeting Agenda Packet- Page 7 of 36 Page 3 of 7 COMMUNITY OUTREACH Central San held a public meeting on February 7, 2019, 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 easement homeowners or tenants 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 March 28, 2019, and recommended 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$3,031,469 for the construction of the Lafayette Sewer Renovations, Phase 13, District Project 8452, to Cratus Inc., the lowest responsive bidder; and 3. Authorize the General Manager to execute the Contract Documents subject to submittal requirements and include up to a 15-percent contingency. Strategic Plan re-In GOAL ONE: Provide Exceptional Customer Service Strategy 1 - Build external customer relationships and awareness, Strategy 3- Maintain a strong reputation in the community GOAL TWO: Strive to Meet Regulatory Requirements Strategy 1 - Strive to achieve 100%permit compliance in air, water, land, and other regulations, 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 4. Sewer Renovations Budget Commitments and Capacity Graph March 28, 2019 Special EOPS Committee Meeting Agenda Packet- Page 8 of 36 Page 4 of 7 yq. ; r A�1 4BIS V� + W. 24 LafayetteR. Reservoir L o R ti 0 4,000 ® Project Area Feet Lafayette Sewer Renovations Phase 13 Attachment CENTRAL SAN District Project 8452 1 • Project Location March 28, 2019 Special EOPS Committee Meeting Agenda Packet- Page 9 of 36 Page 5 of 7 ATTACHMENT 2 LAFAYETTE SEWER RENOVATIONS, PHASE 13 DISTRICT PROJECT 8452 SUMMARY OF BIDS PROJECT NO.: 8452 NO. OF ADDENDA: 1 DATE/TIME: MARCH 6, 2019/2:00 PM PROJECT NAME: LAFAYETTE SEWER RENOVATIONS, PHASE 13 PROJECT MANAGER: KEITH GELLERMAN PROJECT LOCATION: 5019 IMHOFF PLACE, MARTINEZ, CALIFORNIA ENGINEER'S ESTIMATE: $3,500,000 NO. BIDDER BID PRICE 1 Cratus, Inc. $3,031,469 San Francisco, California 2 Precision Engineering, Inc. $3,112 139 San Francisco, California ' 3 K.J. Woods Construction, Inc. $3,138,000 San Francisco, California 4 D'Arcy & Harty Construction, Inc. $3,276,189 San Francisco, California 5 Ranger Pipelines, Inc. $3,324 195 San Francisco, California ' 6 California Trenchless, Inc. $4,458,635 Hayward, California BIDS OPENED BY /s/ Donna M. Anderson DATE: March 6, 2019 March 28, 2019 Special EOPS Committee Meeting Agenda Packet- Page 10 of 36 Page 6 of 7 ATTACHMENT 3 LAFAYETTE SEWER RENOVATIONS, PHASE 13 DISTRICT PROJECT 8452 POST-BID/PRECONSTRUCTION ESTIMATE % of Item Description Amounts Construction No. Cost 1. CONSTRUCTION a. Construction Contract $3,031,469 b. 15% Contingency $455,531 c. Permits (CalTrans, Bart, etc.) $50,000 SUBTOTAL - CONSTRUCTION COST $3,537,000 100% 2. CONSTRUCTION MANAGEMENT a. District Forces - Construction Management (Engineering, Survey) $170,000 - Public Relations/Right-of-Way $20,000 - Operations (CSO) $10,000 b. Consultants - Inspection $150,000 - Material Testing/Arborist/Others $30,000 SUBTOTAL - CONSTRUCTION MANAGEMENT $380,000 11% 3. PREBID EXPENDITURES a. Engineering (Design, Survey, Drafting) $400,000 SUBTOTAL - PREBID EXPENDITURES $400,000 11% 4. TOTAL ESTIMATED PROJECT COST $4,317,000 March 28, 2019 Special EOPS Committee Meeting Agenda Packet- Page 11 of 36 Page 7 of 7 Attachment 4 Collection System Sewer Renovation-Phase 1, District Project (DP) 8451 Budget Commitments and Capacity $25 $ in millions $25 $20 $20 $18.2 $15 $15 $10.8 $10 $10 $s $s $2.6 $0 $1.0 $0 Fiscal Year 2018-19 2019-20 I9 Approved (CY) and Projected Budgets for DP 8451 U; Remaining Capacity for DP 8451 ■ Current Commitments (2 contracts submitted this meeting*) Other Commitments (2 projects**) * Lafayette Sewer Renovations-Phase 13, DP 8452 and Walnut Creek Sewer Renovations-Phase 13, DP 8455 **So.Orinda Sewer Renovations-Phase 7,DP 8454 and Danville Sewer Renovations-Phase 3,DP 8456 District Project 8451 is budgeted for three years,Fiscal Year 2018-19 to Fiscal Year 2020-21.The current contracts affect only the first two fiscal years of the budgeted project funds. March 28, 2019 Special EOPS Committee Meeting Agenda Packet- Page 12 of 36