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Home My WebLink About03.c. Review draft Position Paper to award a construction contract in the amount of $2,730,935 to California Trenchless, Inc., the lowest responsive bidder for the Walnut Creek Sewer Renovations, Phase 13, District Project 8455; consider exemption from t Page 1 of 7 Item 3.c. 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 $2,730,935 TO CALIFORNIA TRENCHLESS, INC., THE LOWEST RESPONSIVE BIDDER FOR THE WALNUT CREEK SEWER RENOVATIONS, PHASE 13, DISTRICT PROJECT 8455; CONSIDER EXEMPTION FROM THE CALIFORNIA ENVIRONMENTAL QUALITYACT (CEQA); AND AUTHORIZE UP TO A 15- PERCENT CONTINGENCY SUBMITTED BY: INITIATING DEPARTMENT: DAMASI0 ZEPEDA ARAGON, 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 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 Walnut Creek Sewer Renovations, Phase 13, District Project 8455 (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 replacement or rehabilitation of approximately 8,200 feet of sewer mains, primarily 6-inch clay sewers using open-trench and pipe-bursting construction methods, construction of manholes, and other related work within public rights-of-way and easements. The majority of this Project is located in the Walnut Knolls neighborhood within the unincorporated area of Walnut Creek and several sites in the March 28, 2019 Special EOPS Committee Meeting Agenda Packet- Page 13 of 36 Page 2 of 7 City of Walnut Creek, as shown in Attachment 1. Central San staff prepared the plans and specifications for the Project. The Engineer's estimate for construction was $3,650,000. This Project was advertised on February 25 and March 4, 2019. Seven sealed bids ranging from $2,730,935 to $4,284,770 were received and publicly opened on March 19, 2019.A summary of bids received is shown in Attachment 2. The Capital Projects Division conducted a technical and commercial review of the bids and determined that California Trenchless, Inc. (CTI) is the lowest responsive and responsible bidder with a corrected total bid amount of$2,730,935. This conclusion came after staff evaluated and recalculated the total bid due to a minor arithmetic discrepancy in CTI's bid schedule. CTI miscalculated between a unit price item and the extended price. This discrepancy led to the total bid to be miscalculated by$5,000. Per the Project bid specifications, Central San is allowed to recalculate the total bid based on the resolution of this type of arithmetic discrepancy and conflict. Therefore, the total bid was recalculated from $2,725,935 to a corrected total bid of$2,730,935. Due to the lowest bid being significantly below the Engineer's estimate, staff contacted CTI to discuss the bid and overall Project. CTI indicated that they stand to fulfill the bid and are very familiar with the Project scope. CTI recently completed the Walnut Creek Sewer Renovations, Phase 12 project last year, which was done successfully. Staff has also contacted the other bidders to understand the lower prices received, and most of the feedback was focused on a competitive bid market. Central San will administer the construction contract and provide construction management, resident engineering, inspection, survey, administration, and submittal review. Consultant surveying services may be used to supplement staff on an as-needed basis and construction inspection will be performed by one of Central San's consultant inspectors. 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 Reject all bids, which is not recommended. Delaying or postponing the sewer replacement work may not produce cost savings, especially in the current competitive bid climate.Additionally, several sites have been coordinated with the public. FINANCIAL IMPACTS The total estimated Project cost is $4,121,000, which includes 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 March 28, 2019 Special EOPS Committee Meeting Agenda Packet- Page 14 of 36 Page 3 of 7 165. 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. COMMUNITY OUTREACH Central San held a public meeting on February 13, 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 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 $2,730,935 for the construction of the Walnut Creek Sewer Renovations, Phase 13, District Project 8455, to California Trenchless, 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 15 of 36 Page 4 of 7 ® Project Area YG'N i 24 , F<_a Rl•F• R- !G� N 0 2,000 Feet Walnut Greek Sewer Renovations Phase 13 Attachment ,CENTRAL SAN District Project 8455 1 • OEM Project Location March 28, 2019 Special EOPS Committee Meeting Agenda Packet- Page 16 of 36 Page 5 of 7 ATTACHMENT 2 WALNUT CREEK SEWER RENOVATIONS, PHASE 13 DISTRICT PROJECT 8455 SUMMARY OF BIDS PROJECT NO.: 8455 NO. OF ADDENDA: 0 DATE/TIME: MARCH 19, 2019/2:00 PM PROJECT NAME: WALNUT CREEK SEWER RENOVATIONS, PHASE 13 PROJECT MANAGER: DAMASIO ZEPEDA ARAGON PROJECT LOCATION: 5019 IMHOFF PLACE, MARTINEZ, CALIFORNIA ENGINEER'S ESTIMATE: $3,650,000 NO. BIDDER BID PRICE 1 California Trenchless, Inc. Hayward, California $2,730,935 2 Precision Engineering, Inc. $2,912 450 San Francisco, California ' 3 Bay Pacific Pipelines $3,072 070 Novato, California ' 4 K.J. Woods Construction, Inc. $3,338,000 San Francisco, California 5 Mitchell Engineering $3,599,340 San Francisco, California 6 Cratus, Inc. $3,827,500 San Francisco, California 7 Ranger Pipelines, Inc. $4,284 770 San Francisco, California ' 1 Upon bid evaluation, staff corrected the bid provided by California Trenchless, Inc. from $2,725,935 to $2,730,935 based on an arithmetic discrepancy. Per the bid specifications, Central San can recalculate the total bid based on the resolution of any arithmetic discrepancy. The lowest bid is determined after any required recalculations. BIDS OPENED BY /s/ Katie Young DATE: March 19, 2019 March 28, 2019 Special EOPS Committee Meeting Agenda Packet- Page 17 of 36 Page 6 of 7 ATTACHMENT WALNUT CREEK SEWER RENOVATIONS, PHASE 13 DISTRICT PROJECT 8455 POST-BID/PRECONSTRUCTION ESTIMATE % Of Item Description Amounts Construction No. Cost 1. CONSTRUCTION a. Construction Contract $2,730,935 b. 15% Contingency $410,065 c. Permits $50,000 SUBTOTAL - CONSTRUCTION COST $3,191,000 100% 2. CONSTRUCTION MANAGEMENT a. District Forces - Construction Management (Engineering, Survey) $180,000 - 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 $390,000 12% 3. PREBID EXPENDITURES a. Engineering (Design, Survey, Right-of-Way, Drafting) $540,000 SUBTOTAL - PREBID EXPENDITURES $540,000 17% 4. TOTAL ESTIMATED PROJECT COST $4,121,000 March 28, 2019 Special EOPS Committee Meeting Agenda Packet- Page 18 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 19 of 36