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Home My WebLink About06. Public hearing to consider increasing construction contract retention to 10% (District Project 8436) Page 1 of 10 Item 6. CENTRAL SAN BOARD OF DIRECTORS vie . , . , , . . POSITION PAPER MEETING DATE: JULY 25, 2019 SUBJECT: CONDUCT PUBLIC HEARING TO CONSIDER ADOPTING RESOLUTION NO. 2019-041 FINDING THAT, IN ACCORDANCE WITH CALIFORNIA PUBLIC CONTRACT CODE SECTION 7201, THE PUMP STATION UPGRADES - PHASE 1, DISTRICT PROJECT 8436, IS SUBSTANTIALLY COMPLEX TO JUSTIFY INCREASING THE CONSTRUCTION CONTRACT RETENTION AMOUNT FROM FIVE PERCENT TO TEN PERCENT 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 Roger S. Bailey Kenton L. Alm General Manager District Counsel ISSUE California Public Contract Code Section 7201 states that the maximum a public agency may hold as the construction contract retention is five percent. However, a public agency may find, at a properly noticed and normally scheduled Board hearing, that a project is substantially complex so as to justify that a higher amount of retention should be withheld. BACKGROUND Staff requests that the Board of Directors (Board) conduct a hearing to consider increasing the July 25, 2019 Special Board Meeting Agenda Packet- Page 35 of 72 Page 2 of 10 construction contract retention from five percent to ten percent for the Pump Station Upgrades - Phase 1, District Project (DP) 8436 (Project). The finding to increase the construction contract retention must be made prior to bidding the Project. If approved by the Board, the increased retention amount and resolution will be included in the bid documents. The Project is currently scheduled to advertise for public bid in late August and early September of this year. The Project proposes renovation at three pump stations, including two of the largest pump stations at Central San, Moraga and Orinda Crossroads Pump Stations. The Moraga Pump Station is located at 1790 School Street in Moraga, adjacent to a creek and near a school. The Orinda Crossroads Pump Station is at 10 Camino Pablo in Orinda at Theatre Square. The complex elements of the Project include, but are not limited to: • Upgrading electrical and controls for the new electrical wet weather pumps, including new switchgear and variable speed drives; • Upgrading backup generators and automatic transfer switch improvements; • Replacing the wet weather diesel engine driven pumps with electric motors at the Moraga and Orinda Crossroads Pump Stations; • Reconditioning or replacing pumps, valves, and gates; • Replacing/adding surge tanks; • Replacing six dry-pit pumps with new submersible pumps (bid alternate); • Adding grinders to the Moraga Pump Station (bid alternate); • All construction must occur at fully operational pump stations where no alternative redirection of flows are available; • Stations located in high-use residential and midtown commercial areas with limited available work space; and • Requires oversight and coordination between three pump stations with construction occurring during the same time. Due to the complexity of the work, long equipment lead times, and wet weather construction restrictions, the Project is expected to require a minimum of 24 months to complete. The construction cost estimate for the Project including all bid alternates is approximately$24 million. The general contractor, subcontractors, and suppliers will have to carefully coordinate the work to ensure the timely and safe completion of the Project. The timeframe for most construction activities and critical work is limited to dry weather, which entails the summer months. Construction at Moraga and Orinda Pump Stations, including Flush Kleen Pump Station will require timely completion of the project milestones. Any slippage or missing deadlines will likely result in issues between the contract parties and others. I n the event that claims should arise from subcontractors or suppliers, a ten-percent retention is more likely to provide sufficient funds to help address such notices or resolve claims. Staff believes that the Project is sufficiently complex to justify a ten-percent construction contract retention as the planned improvements require major modifications to the mechanical, electrical, instrumentation, and controls systems at the Moraga, Orinda Crossroads, and Flush Kleen Pump Stations. Staff anticipates that the general contractor will use a number of subcontractors and suppliers and that the coordination of this work on multiple sites concurrently will be challenging. ALT ERNAT IVES/CONSIDERAT IONS The Board has increased retention on construction contracts on several projects, including the Primary Renovations, DP 7285 and more recently on the Headworks Screening Upgrades, DP 7327. The decision to increase the retention amount was beneficial for each project since it allowed staff enough funds to help resolve issues with equipment or disputes with subcontractors. Central San's contract documents has a provision that allows staff to lower the retention during construction, which has been done July 25, 2019 Special Board Meeting Agenda Packet- Page 36 of 72 Page 3 of 10 with contractors in the past. The Board may elect to not hold the hearing and keep the retention amount at five percent or provide another alternative. However, this is not recommended due to the substantial complexity of the Project. FINANCIAL IMPACTS No financial impact is expected. General contractors may choose to increase their bid to cover the costs of holding additional retention; however, staff believes it would likely be minimal, if any, since bidders are under low bid requirements in order to compete for the contract. COMMITTEE RECOMMENDATION The Engineering and Operations Committee reviewed this matter at its meeting on July 9, 2019 and recommended to conduct a public hearing on a regularly scheduled Board meeting and to postpone CEQA until Project Award. RECOMMENDED BOARD ACTION Conduct public hearing to consider adopting proposed Resolution No. 2019-041 finding that, in accordance with California Public Contract Code Section 7201, the Pump Station Upgrades - Phase 1, District Project 8436, is substantially complex to justify increasing the construction contract retention amount from five percent to ten percent. Strategic Plan Tie-In 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 3- Protect District personnel and assets from threats and emergencies ATTACHMENTS: 1. Proposed Resolution 2. Presentation July 25, 2019 Special Board Meeting Agenda Packet- Page 37 of 72 Page 4 of 10 ATTACHMENT 1 RESOLUTION 2019-041 A RESOLUTION OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT INCREASING THE RETENTION AMOUNT TO TEN PERCENT FOR THE PUMP STATION UPGRADES - PHASE 1, DISTRICT PROJECT 8436 WHEREAS, the Central Contra Costa Sanitary District's (Central San) Orinda Crossroads and Moraga Pump Stations are a part of the collection system and are critical to the conveyance of wastewater; and WHEREAS, in 2011 the Legislature modified Public Contract Code Section 7201 to set the maximum amount that could be withheld by a special district as retention on a construction contract at five percent and that this retention amount could only be increased if the public agency found the specific project was sufficiently complex to warrant it; and WHEREAS, the Pump Station Upgrades — Phase 1, District Project (DP) 8436 is a complicated and critical project for Central San; and WHEREAS, the project includes replacing the 1 ,000 horsepower wet weather engines, installing new electrical motors and electrical systems for wet weather pumping, replacing surge tanks, and upgrading controls, all of which need to be coordinated and constructed in a facility that operates 24 hours a day; and WHEREAS, the project is in a highly visible residential and midtown commercial location with limited workspace, where no alternative redirection of flows is available; and WHEREAS, the General Contractor, subcontractors, and suppliers will have to coordinate a substantial amount of the work to ensure the timely and safe completion of the project during dry weather summer conditions; and WHEREAS, the nature of the proposed work, schedule, and long lead time for equipment increases the likelihood of prime contractor, subcontractor, and vendor or supplier issues and potential claims; and WHEREAS, the project will require challenging oversight and coordination between the project locations since the construction will occur at the same time; and WHEREAS, the Board of Directors held a noticed public hearing on July 25, 2019, to establish that the Pump Station Upgrades — Phase 1 , DP 8436, is sufficiently complex to require an increased retention amount of ten percent. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Central Contra Costa Sanitary District as follows: July 25, 2019 Special Board Meeting Agenda Packet- Page 38 of 72 Page 5 of 10 Central Contra Costa Sanitary District Resolution No. 2019-041 Page 2 of 2 1. That, after holding a noticed public hearing, the Board of Directors finds that in accordance with Public Contract Code Section 7201, the Pump Station Upgrades — Phase 1, DP 8436, is a complex project. Furthermore, that this project's complexity necessitates a retention amount greater than five percent. 2. That the Board of Directors finds that the retention amount for the Pump Station Upgrades — Phase 1, DP 8436, shall be ten percent. PASSED AND ADOPTED this 25th day of July, 2019, by the Board of Directors of the Central Contra Costa Sanitary District by the following vote: AYES: Members: NOES: Members: ABSENT: Members: David R. Williams President of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California COUNTERSIGNED: Katie Young Secretary of the District Central Contra Costa Sanitary District County of Contra Costa, State of California Approved as to form: Kenton L. Alm, Esq. Counsel for the District July 25, 2019 Special Board Meeting Agenda Packet- Page 39 of 72 Page 6 of 10 PUMP STATION (PS) UPGRADES ;t ` DISTRICT PROJECT 8436 - PHASE 1 UPDATE Special Board Meeting July 25, 2019 Jean-Marc Petit, Director of Engineering and Technical Services a Edgar J. Lopez, Capital Projects Division Manager _ R ` tiaxira-- - PS UPGRADES PHASING • Phase 1, District Project ` 8436: hmo:[Men 'b, • Orinda Crossroads PS �- pwfee • Moraga PS • Flush Kleen PS o�e • Concord Metering Vault Improvements (Under construction with other project) • Phase 2: Scheduled for FY 2019-20 to start !. design �p • Martinez PS Fairview PSP '' • Maltby PS ` z 1 July 25, 2019 Special Board Meeting Agenda Packet- Page 40 of 72 Page 7 of 10 MORAGA - ORINDA CROSSROADS PUMP STATIONS Facilities deliver a majority of wastewater flows from Orinda and Moraga and are critical facilities Moraga and Orinda Crossroads Pump Stations scope includes: .. Major electrical upgrades Instrumentations and controls upgrades New standby power systems New wet weather pumping: _ 1 Electric driven pumps .. Replace surge tanks ` y 3 ALTERNATE BID ITEMS Alternate Bid Items: Orinda Crossroads and Moraga Pump Stations Install dry pit submersible pumps for added resiliency Wet weather casing replacement or rehab depending on inspection Moraga PS Only Install mechanized grinders �._ (►�14 2 July 25, 2019 Special Board Meeting Agenda Packet- Page 41 of 72 Page 8 of 10 FLUSH KLEEN PUMP STATION • Oldest PS in our System (1950) • Major Improvements: �. • Electrical, instrumentation and controls improvements and upgrades • Replace standby power generator f ' d ANTICIPATED SCHEDULE • 100% Design Acceptance —August 6, 2019 • Pre-qualifying general contractor and electrical subcontractors prior to advertising (ongoing) • Public outreach ongoing with City (ongoing) • Advertise —August 26, 2019 • Bid Opening — October 7, 2019 • Engineering & Operations Committee — October 15, 2019 • Board Award — November 7, 2019 • Notice to Proceed — November 28, 2019 • Complete construction by Spring 2022 (majority of work during summer of 2020 and 2021) � s 3 July 25, 2019 Special Board Meeting Agenda Packet- Page 42 of 72 Page 9 of 10 CURRENT AND FUTURE BOARD ACTIONS Current: • Increase construction contract retention from 5% to 10% due to the complexity of the project Future (at award): • Construction Management Services (Request for Proposals in process) • Engineering Support Services during Construction with V.W. Housen and Associates (currently negotiating) RECOMMENDED BOARD ACTIONS Conduct public hearing to consider adopting Resolution No. 2019-041 finding that, in accordance with California Public Contract Code Section 7201, the Pump Station Upgrades - Phase 1, District Project 8436, is substantially complex to justify increasing the construction contract retention amount from 5% to 10% IS 4 July 25, 2019 Special Board Meeting Agenda Packet- Page 43 of 72 Page 10 of 10 QUESTIONS? N ` g 5 July 25, 2019 Special Board Meeting Agenda Packet- Page 44 of 72