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Home My WebLink About04.a. Review draft Position Paper to award a construction contract in the amount of $2,718,025 to Andes Construction, Inc., the lowest responsive bidder for the Lafayette Sewer Renovations, Phase 14, District Project 8459; consider exemption from the Cal Page 1 of 7 Item 4.a. CENTRAL SAN BOARD OF DIRECTORS vie POSITION PAPER Hill Tim DRAFT MEETING DATE: JUNE 22, 2020 SUBJECT: REVIEW DRAFT POSITION PAPER TO AWARD A CONSTRUCTION CONTRACT IN THE AMOUNT OF $2,718,025 TO ANDES CONSTRUCTION, INC., THE LOWEST RESPONSIVE BIDDER FOR THE LAFAYETTE SEWER RENOVATIONS, PHASE 14, DISTRICT PROJECT 8459; 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 COVI D-19 Impact: The Lafayette Sewer Renovations, Phase 14, District Project 8459 (Project) is expected to start late July of 2020 and be completed by February of 2021. The construction contract for this Project includes provisions and costs to mitigate the spread of COVI D-19 such as handwash stations, personal protective equipment, and other safety items or practices recommended by the Occupational Safety and Health Administration and guidelines from the Contra Costa County Health Services. Staff has sequenced and continue to coordinate the work with the City of Lafayette with the understanding that many businesses and communities have begun to re-open. Work on private property will also continue with strict and full-time inspection to ensure that contractor activities meet COVI D-19 measures specified under the Project. June 22, 2020 Special EOPS Committee Meeting Agenda Packet- Page 4 of 24 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 includes replacement or rehabilitation of approximately 12,100 feet of small diameter sewers (6-inch to 8-inch), manholes, and other related work within public rights-of-way and private easements. Staff prepared the plans and specifications for the Project. Construction methods primarily include open trench, pipe bursting, and cured-in-place pipe. An overview map of all site locations is shown in Attachment 1. The Engineer's estimate for construction was $3,650,000. This Project was advertised on May 27 and June 3, 2020. Five bids ranging from $2,718,025 to $4,190,595 were received and publicly opened on June 18, 2020. The Capital Projects Division conducted a technical and commercial review of the bids and determined that Andes Construction, Inc. (Andes) is the lowest responsive and responsible bidder with a corrected total bid amount of $2,718,025.A summary of bids received is shown in Attachment 2. This conclusion came after staff evaluated and recalculated the total bid due to minor arithmetic discrepancies in Andes' bid schedule. The contractor miscalculated the sum of the extended prices and miswrote the unit price in figures from the unit price in words for a bid item, resulting in a difference of $45,500. 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, their total bid was recalculated from $2,672,525 to a corrected total bid of $2,718,025. Andes has completed work for Central San, most recently in 2004, on the 2003 Cured-in-Place Pipe Project in Orinda. Since then, Andes has continued to perform sewer renovation projects in Berkeley and other parts of the San Francisco Bay Area. Central San will administer the construction contract and provide construction management, resident engineering, survey, administration, and submittal review. Consultant surveying and inspection services will be used on an as-needed basis to support construction work. 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 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. June 22, 2020 Special EOPS Committee Meeting Agenda Packet- Page 5 of 24 Page 3 of 7 FINANCIAL IMPACTS The total estimated project cost is $4.2 million which includes planning, design, bid price, contingency, construction management, and consultant costs as detailed in Attachment 3. The Project budget is shown on page 198 of Central San's Fiscal Year 2020-21 Budget, with a total amount of $5.2 million. As stated above, $4.2 million is needed for this project; therefore, the remaining $1 million budget will be transferred to the Collection System Sewer Renovation-Phase 1, District Project (DP) 8451. DP 8451 is a program project aimed to plan, design, and fund construction of sewer renovation projects throughout the service area. 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. At this time, staff does not foresee any additional financial impacts on this Project due to COVI D-19. COMMUNITY OUTREACH During the Design phase, staff did extensive homeowner outreach to prepare residents for the proposed construction work. Initial project letters were mailed in the summer of 2019 informing residents of the design activities. Throughout the course of design, staff addressed email and phone inquiries regarding the Project and conducted face-to-face outreach at several easement sites. Due to COVI D-19, the public meeting could no longer take place at Central San facilities. Staff continued notifying the impacted parties and nearby residents that the public meeting would be done by video and made available on Central San's website and encouraged questions or Project concerns. 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 June 22, 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 $2,718,025 for the construction of the Lafayette Sewer Renovations, Phase 14, District Project 8459, to Andes Construction, 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 Tie-In GOAL ONE: Provide Exceptional Customer Service Strategy 3- Maintain a strong reputation in the community June 22, 2020 Special EOPS Committee Meeting Agenda Packet- Page 6 of 24 Page 4 of 7 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 THREE:Be a Fiscally Sound and Effective Water Sector Utility Strategy 2- Manage costs GOAL FOUR: Develop and retain a highly trained and innovative workforce Strategy 3- Meet or exceed industry safety standards GOAL FIVE:Maintain a Reliable Infrastructure Strategy 2- Facilitate long-term capital renewal and replacement, Strategy 3- Protect District personnel and assets from threats and emergencies ATTACHMENTS: 1. Project Location Map 2. Summary of Bids 3. Post Bid/P reconstruction Estimate June 22, 2020 Special EOPS Committee Meeting Agenda Packet- Page 7 of 24 Page 5 of 7 Lafayette Sewer Renovations, Phase 14 District Project 8459 Map Date:5/28/2020 m i %41M,art inez ,1 o`'-' Concord Pleasant Hill Detail Area r � m� Walnut Creek ��Q •' Lafa"ette Moraga �, Danvillet NapA�l 8459 San Ramon � S ftp\ablo-Blvd 8459 8459 1 (PlYmp B d �' 8459 = Lafayette Rese, o'- 8459 l 0 `d �a �a 0012 CO m� 8459 arts Rd Sa�P�M 'I1 �P A. oc Q Project Location &Number] U Note: 0 4,000 Map Displayed in North American Datum of 1983 Attachment Central San data as of�M.y2020 ,, Feet California State Plane,Zone III FPS 0403,US Feet June 22, 2020 Special EOPS Committee Meeting Agenda Packet- Page 8 of 24 Page 6 of 7 ATTACHMENT 2 LAFAYETTE RENOVATIONS, PHASE 14 DISTRICT PROJECT 8459 SUMMARY OF BIDS PROJECT NO.: 8459 NO. OF ADDENDA: 1 DATE/TIME: JUNE 18, 2020/11:00 AM PROJECT NAME: LAFAYETTE SEWER RENOVATIONS, PHASE 14 PROJECT MANAGER: DAMASIO ZEPEDA ARAGON PROJECT LOCATION: CENTRAL SAN SERVICE AREA ENGINEER'S ESTIMATE: $3,650,000 NO. BIDDER BID PRICE 1 Andes Construction, Inc. Oakland, California $2,718,025 2 Cratus, Inc. $2,784,285 San Francisco, California 3 K.J. Woods Construction, Inc. $2,870,000* San Francisco, California 4 Darcy & Harty Construction, Inc. $3,380,858 San Francisco, California 5 California Trenchless, Inc. $4,190,595 Hayward, California * Upon bid evaluation, staff corrected the bid provided by Andes Construction, Inc. from $2,672,525 to $2,718,025 and the bid provided by K.J. Woods Construction, Inc. from $2,878,000 to $2,870,000 based on arithmetic discrepancies. Per the project 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: June 18, 2020 at 11:30 a.m. via livestream due to COVID-19 June 22, 2020 Special EOPS Committee Meeting Agenda Packet- Page 9 of 24 Page 7 of 7 ATTACHMENT 3 LAFAYETTE SEWER RENOVATIONS, PHASE 14 DISTRICT PROJECT 8459 POST-BID/PRECONSTRUCTION ESTIMATE % Of Item Description Amounts Construction No. Cost 1. CONSTRUCTION a. Construction Contract $2,718,025 b. 15% Contingency $407,975 c. Permits $64,000 SUBTOTAL - CONSTRUCTION COST $3,190,000 100% 2. CONSTRUCTION MANAGEMENT a. District Forces - Construction Management $170,000 - Public Relations/Right-of-Way $20,000 - Operations (CSO) $30,000 b. Consultants - Inspection $150,000 - Material Testing/Arborist/Others $60,000 SUBTOTAL - CONSTRUCTION MANAGEMENT $430,000 13% 3. PREBID EXPENDITURES a. Engineering (Design, Survey, Right-of-Way, Drafting) $580,000 SUBTOTAL - PREBID EXPENDITURES $580,000 18% 4. TOTAL ESTIMATED PROJECT COST $4,200,000 June 22, 2020 Special EOPS Committee Meeting Agenda Packet- Page 10 of 24