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Home My WebLink About04.c. Review draft Position Paper to award a construction contract in the amount of $3,572,655 to Precision Engineering, Inc., the lowest responsive bidder for the Walnut Creek Sewer Renovations, Phase 14, District Project 8460; consider exemption from t Page 1 of 7 Item 4.c. CENTRAL SAN BOARD OF DIRECTORS vie POSITION PAPER Hill Tim DRAFT MEETING DATE: MAY 12, 2020 SUBJECT: REVIEW DRAFT POSITION PAPER TO AWARD A CONSTRUCTION CONTRACT I N THE AMOUNT OF $3,572,655 TO PRECISION ENGINEERING, INC., THE LOWEST RESPONSIVE BIDDER FOR THE WALNUT CREEK SEWER RENOVATIONS, PHASE 14, DISTRICT PROJECT 8460; CONSIDER EXEMPTION FROM THE CALIFORNIA ENVIRONMENTAL QUALITYACT (CEQA);AND AUTHORIZE UP TO A 15- PERCENT CONTINGENCY SUBMITTED BY: INITIATING DEPARTMENT: DAMASIO ZEPEDAARAGON, 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 Coronavirus COVID-19 Impact: The Walnut Creek Sewer Renovations, Phase 14, District Project (DP) 8460 (Project) may start in early June 2020 and be completed by January 2021. Staff has included restrictions and other conditions in the Contract Documents that prohibit construction activities on private properties (backyard easements) until the Contra Costa County shelter-in-place order has been revised or the Project is deemed essential by Central San. Construction on public streets has been coordinated with local jurisdictions. The construction contract for this Project includes provisions and costs associated with the guidelines related to COVI D-19, such as handwash stations, personal protective equipment, and other safety items. Staff has sequenced the work and milestones to allow the contractor to complete the contract within the duration of the Project. May 12, 2020 EOPS Regular Committee Meeting Agenda Packet- Page 16 of 55 Page 2 of 7 This 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 Project consists of replacement or rehabilitation of approximately 9,900 feet of sewer mains, primarily six-inch clay sewers, using open-trench, pipe-bursting, sliplining, and cured-in-place-pipe construction methods, construction of manholes, and other related work within public rights-of-way and easements. Most of this Project is in the Sterling's Ridge, and Meadow Creek neighborhoods within the unincorporated area of Walnut Creek and several sites in the City of Walnut Creek. The Project also includes the following two urgent sites in need of replacement, which has been coordinated closely with the Collection System Operations (CSO): 1. The first site includes the installation of a new aerial creek crossing, which will replace an existing sewer pipe that was undermined by heavy rainstorms in early 2019. CSO staff has been monitoring this site since the rain events on a routine basis, and Capital Projects constructed a temporary repair that allowed CSO to eliminate bypass pumping equipment. Staff has prepared the design for a permanent long-term fix for this site and has included the work as an additive bid item under this Project. The cost of this item was $325,000. The average cost from the other bidders was $234,000. Staff is not recommending to include this item since the work can be bid separately or on a different project to receive lower prices. 2. The second site is in the City of Pleasant Hill and it involves the rehabilitation of approximately 1,500 feet of backyard sewers that span over 20 private properties. The construction method for this site will include pipe-bursting methods which will minimize the overall construction impact to residents. An overview map of all project sites is shown in Attachment 1. Staff prepared the plans and specifications for the Project. The Engineer's estimate for construction was $4,300,000, not including the additive bid item. This Project was advertised on April 6 and 13, 2020. Six bids ranging from $3,572,655 to $5,163,185 were received and publicly opened on April 28, 2020 via online services. The Capital Projects Division conducted a technical and commercial review of the bids and determined that Precision Engineering, Inc. is the lowest responsive and responsible bidder with a total bid amount of$3,572,655.A summary of bids received is shown in Attachment 2. 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 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. May 12, 2020 EOPS Regular Committee Meeting Agenda Packet- Page 17 of 55 Page 3 of 7 ALT ERNAT IVES/CONSIDERAT IONS Central San staff has coordinated the Project work with private property owners, the public, and cities. 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 $5,173,000 which includes planning, design, bid price, contingency, construction management, and consultant costs as detailed in Attachment 3. This Project is being funded by the Collection System Sewer Renovation, Phase 1, DP 8451 as planned. There is adequate funding in DP 8451 for this Project, as shown in Attachment 3. After award, the budget modifications will be reflected in the latest Capital Improvement Budget. DP 8451 is a program project that is aimed to plan, design, and fund construction of sewer replacement projects. Staff is recommending a 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. Presently, staff does not foresee any additional financial impact on this Project due to COVI D-19. COMMUNITY OUTREACH Central San has conducted several forms of outreach for this Project. Initial project design letters were sent in the summer of 2019 informing residents of upcoming design work. Throughout the course of design, staff addressed email and phone inquiries regarding the Project and conducted outreach with several easement homeowners as well as some teleconferencing during the shelter-in-place order. On March 17, 2020, letters were sent out to the public informing them that a detailed project presentation had been posted on Central San's website in lieu of a public face-to-face meeting, as initially intended, as a result of social distancing requirements for COVI D-19. The public was encouraged to reach out with any additional questions or concerns they may have. To date, no further questions or concerns have been received and staff plans to continue providing written and phone notifications. COMMITTEE RECOMMENDATION The Engineering and Operations Committee reviewed this Project at the meeting on May 12, 2020, 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$3,572,655 for the construction of the Walnut Creek Sewer Renovations, Phase 14, District Project 8460, to Precision Engineering, 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. May 12, 2020 EOPS Regular Committee Meeting Agenda Packet- Page 18 of 55 Page 4 of 7 Strategic Plan Tie-In GOAL ONE: Provide Exceptional Customer Service Strategy 1 - Build external customer relationships and awareness GOAL TWO: Strive to Meet Regulatory Requirements Strategy 1 - Strive to achieve 100%permit compliance in air, water, land, and other regulations 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 May 12, 2020 EOPS Regular Committee Meeting Agenda Packet- Page 19 of 55 CENTRAL SAN - Martin f � 680 ° " 'Concord � Pi Detail Area Walnut Cre- . � 24 Lafayette Moraga an Ramon �/ V • WEI OWN A r 680 a Datummmmm[ZZZEEEI= Map Displayed in North American ,' Page 6 of 7 ATTACHMENT 2 WALNUT CREEK SEWER RENOVATIONS, PHASE 14 DISTRICT PROJECT 8460 SUMMARY OF BIDS PROJECT NO.: 8460 NO. OF ADDENDA: 1 DATE/TIME: APRIL 28, 2020/2:00 PM PROJECT NAME: WALNUT CREEK SEWER RENOVATIONS, PHASE 14 PROJECT MANAGER: DAMASIO ZEPEDA ARAGON PROJECT LOCATION: CENTRAL SAN SERVICE AREA ENGINEER'S ESTIMATE: $4,300,000 NO. BIDDER BID PRICE 1 Precision Engineering, Inc. $3,572,655 San Francisco, California 2 K.J. Woods Construction, Inc. $3,688,000 San Francisco, California 3 Cratus, Inc. $3,982,225 San Francisco, California 4 Andes Construction, Inc. $4,071,595 Oakland, California 5 Westland Contractors, Inc. $4,552,529 Oakland, California 6 California Trenchless, Inc. $5,163,185 Hayward, California BIDS OPENED BY: /s/ Katie Young DATE: April 28, 2020 at 3:00 p.m. via livestream due to COVID-19 May 12, 2020 EOPS Regular Committee Meeting Agenda Packet- Page 21 of 55 Page 7 of 7 ATTACHMENT 3 WALNUT CREEK SEWER RENOVATIONS, PHASE 14 DISTRICT PROJECT 8460 POST-BID/PRECONSTRUCTION ESTIMATE % Of Item Description Amounts Construction No. Cost 1. CONSTRUCTION a. Construction Contract $3,572,655 b. 15% Contingency $535,345 c. Permits $65,000 SUBTOTAL- CONSTRUCTION COST $4,173,000 100% 2. CONSTRUCTION MANAGEMENT a. District Forces - Construction Management $170,000 - Public Relations/Right-of-Way $20,000 - Operations (CSO) $10,000 b. Consultants - Inspection $150,000 - Material Testing/Arborist/Others $50,000 SUBTOTAL - CONSTRUCTION MANAGEMENT $400,000 10% 3. PREBID EXPENDITURES a. Engineering (Design, Survey, Right-of-Way, Drafting) $600,000 SUBTOTAL - PREBID EXPENDITURES $600,000 14% 4. TOTAL ESTIMATED PROJECT COST $5,173,000 May 12, 2020 EOPS Regular Committee Meeting Agenda Packet- Page 22 of 55