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Home My WebLink About07. Award construction contract to Cratus, Inc. for Danville Sewer Renovations, Phase 3, DP 8456 Page 1 of 7 Item 7. CENTRAL SAN BOARD OF DIRECTORS POSITION PAPER MEETING DATE: APRIL 2, 2020 SUBJECT: AWARD A CONSTRUCTI ON CONTRACT IN THE AMOUNT OF $2,721,145 TO CRATUS, INC., THE LOWEST RESPONSIVE BIDDER FOR THE DANVILLE SEWER RENOVATIONS, PHASE 3, DISTRICT PROJECT 8456; 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 Roger S. Bailey General Manager 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 COVI D-19 1 mpact: this Project is expected to start in May 2020 and be completed by January of 2021. Staff has updated and notified the impacted communities that the Project will continue; however, no planned construction activities will occur on private properties (backyard easements) until the Contra Costa County Shelter-in-Place has been lifted. Construction on public streets will continue and has been coordinated with the local jurisdictions. Private property work is scheduled to commence by August and April 2, 2020 Regular Board Meeting Agenda Packet- Page 90 of 115 Page 2 of 7 there is adequate time and provisions within the construction contract to proceed with this critical infrastructure Project. The Danville Sewer Renovations, Phase 3, District Project 8456 (Project) is part of the ongoing sewer renovation within the Collection System Program aimed 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, private property owners, and tenants. The majority of this Project is located within the Town of Danville's Las Lomitas subdivision with one site in the City of San Ramon, as shown in Attachment 1. Las Lomitas was developed in 1949 and annexed by Central San in 1955. It has approximately 3,800 feet of sewer mains built in backyards on over 40 private properties.All other public sewers are located in the streets. On April 17, 2008, Central San staff presented to the Board the Las Lomitas history and the past right-of-way complications that had occurred after the annexation. This included the declaration made on the subdivision in the 1970s and actions made to each parcel in 2008. However, many of the properties had already built improvements (e.g. pools, structures, concrete landscaping, etc.) adjacent or above the existing sewers. Since then, Central San and Danville's Building Division have worked together to identify and regulate any significant improvements proposed near the existing backyard sewers. The backyard sewers within Las Lomitas and other nearby sewers totaling 8,100 feet have been identified as deficient and are scheduled for replacement. These sewers are on a routine and high maintenance schedule, difficult to access, and near creeks. During the Project pre-design, staff performed a detailed Business Case Evaluation for two project alternatives, as follows: 1. Renovate the existing sewers in place, 8,100 feet of which would involve replacing the 3,800 feet of backyard sewers by open trench. Since other options like pipebursting were not feasible, there would be additional restoration costs; or 2. Abandon the 3,800 feet of backyard sewers and reroute privately owned side sewers to new public sewers in the street. This alternative would replace or install a total of 6,000 feet of public sewers (2,100 feet less than Alternative 1). Central San would have to incur the costs for relocating the privately owned side sewers. The Capital Projects Division determined that Alternative 2 resulted in lower capital expenditures and lower future operations and maintenance costs. Staff prepared the plans and specifications for the Project. Construction methods include open cut, horizontal directional drilling, pipe bursting, and cured-in-place- pipe. The Engineer's estimate for construction was $3,600,000. This Project was advertised on January 21 and 28, 2020. Six sealed bids ranging from $2,721,145 to $4,190,385 were received and publicly opened on February 19, 2020. 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 Walnut Creek, Lafayette, Moraga, and Orinda.A summary of bids received is shown in Attachment 2. Several bids were competitive and below the Engineer's estimate, and costs for side sewers were lower than expected. The average bid price for a side sewer relocation is approximately$9,000. Based on the Cratus bid prices, the cost difference from Alternative 1 to Alternative 2, noted above, is roughly$400,000. Upon completion and acceptance of the Project, Central San will request that the Board quitclaim all rights to the backyard easements, and the property owners with side sewer relocations will continue to own and maintain their private side sewers. 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 April 2, 2020 Regular Board Meeting Agenda Packet- Page 91 of 115 Page 3 of 7 supplement staff on an as-needed basis. Daily construction inspection will be performed by Central San's Development Services Inspection since the construction activities are very similar to a developer type project. 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 Central San staff spent a significant amount of time coordinating the project work with private property owners, public, and the Town of Danville. Delaying or postponing the sewer work is not recommended. Another alternative would be to reject all bids, which is also not recommended. FINANCIAL IMPACTS The total estimated project cost is $4,280,000, including planning, design, bid price, contingency, construction management, and consultant costs as detailed in Attachment 3. This Project is included in the Fiscal Year 2019-20 Budget on page 166 with an estimated total project budget of$4,600,000. Staff is recommending 15-percent contract contingency on this Project since additional work may be added to the Project to urgently repair or replace nearby sewers and the risks associated with renovation work. At this time, staff does not foresee any financial impact on this Project due to the Shelter-in-Place related to COVI D-19. Staff has discussed the work with Cratus and they understand the sequence of the Project and are willing to proceed with staff's proposed contract schedule. Both parties assume that the Shelter-in- Place will be lifted by the fall. COMMUNITY OUTREACH Central San held public meetings on October 23, 2018 at the Veterans Memorial Building in Danville and on December 17, 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. I n addition, staff has notified and met with all easement private property owners or tenants directly to discuss and receive input on the upcoming sewer work, construction impacts, and project schedule. COMMITTEE RECOMMENDATION The Engineering and Operations Committee reviewed this Project at the meeting on March 17, 2020, and recommended approval. April 2, 2020 Regular Board Meeting Agenda Packet- Page 92 of 115 Page 4 of 7 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 $2,721,145 for the construction of the Danville Sewer Renovations, Phase 3, District Project 8456, 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 April 2, 2020 Regular Board Meeting Agenda Packet- Page 93 of 115 Page 5 of 7 , gTo� Walnut;1`,1;,'. reek ,"t q4. ,DETAIL 1 fY�RO �'CAREA I I �♦ � )O --' Da ill O RD � IDRamon O �O r— 8456 cy��No R SYCAMORE VALLEY�F� RARAISO-UR J EL EAPITAN'DR � N9� N � y O Q N nOi G 9 n n 0 T C >1 8456 M 1 a NRO y.O � of .GPN �0 ARD G�tp�N a p d c m �I N 0 4,000 a Feet Project Location & Number U -16 Danville Sewer Renovations Phase 3 Attachment ,r ICENTRAL SAN District Project 8456 1 Z • Project Location Map April 2, 2020 Regular Board Meeting Agenda Packet- Page 94 of 115 Page 6 of 7 ATTACHMENT 2 DANVILLE SEWER RENOVATIONS, PHASE 3 DISTRICT PROJECT 8456 SUMMARY OF BIDS PROJECT NO.: 8456 NO. OF ADDENDA: 0 DATE/TIME: FEB. 19, 2020 / 2 PM PROJECT NAME: DANVILLE SEWER RENOVATIONS, PHASE 3 PROJECT MANAGER: KEITH GELLERMAN PROJECT LOCATION: DANVILLE, CALIFORNIA ENGINEER'S ESTIMATE: $3,600,000 NO. BIDDER BID PRICE 1 Cratus, Inc. $2,721145 San Francisco, CA 94116 ' 2 Ranger Pipelines Incorporated $2,795,936 San Francisco, CA 94124 3 K.J. Woods Construction, Inc. $2,838,000 San Francisco, CA 94124 4 Andes Construction, Inc. $2,927 614 Oakland, CA 94601 ' 5 Precision Engineering, Inc. $3,912 952 San Francisco, CA 94124 ' 6 California Trenchless, Inc. $4,190,385 Hayward, CA 94545 BIDS OPENED BY: /s/ Katie Young DATE: February 19, 2020 April 2, 2020 Regular Board Meeting Agenda Packet- Page 95 of 115 Page 7 of 7 ATTACHMENT 3 DANVILLE SEWER RENOVATIONS, PHASE 3 DISTRICT PROJECT 8456 POST-BID/PRECONSTRUCTION ESTIMATE % Total Estimated No. Item Description Amounts Project Cost 1. CONSTRUCTION a. Construction Contract $2,721,145 b. 15% Contingency $408,855 c. Permits $50,000 SUBTOTAL - CONSTRUCTION COST $3,180,000 100% 2. CONSTRUCTION MANAGEMENT a. District Forces - Construction Management $135,000 - Public Relations/Project Coordination $110,000 - Resident Engineer/Inspection $190,000 b. Consultants - Material Testing $55,000 -Arborist $10,000 SUBTOTAL - CONSTRUCTION MANAGEMENT $500,000 16% 3. PREBID EXPENDITURES a. Engineering (Design, Survey, Drafting) $600,000 SUBTOTAL - PREBID EXPENDITURES $600,000 19% 4. TOTAL ESTIMATED PROJECT COST $4,280,000 April 2, 2020 Regular Board Meeting Agenda Packet- Page 96 of 115