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HomeMy WebLinkAbout04.a. Review draft Position Paper to authorize the General Manager to execute a construction contract change order in the amount of $250,000 with Cratus, Inc. to include the Via Ferrari Sewer Replacement under the Danville Sewer Renovations, Phase 3, Dis Page 1 of 3 Item 4.a. Algi CENTRAL SAN BOARD OF DIRECTORS POSITION PAPER DRAFT MEETING DATE: AUGUST 12, 2020 SUBJECT: REVIEW DRAFT POSITION PAPER TO AUTHORIZE THE GENERAL MANAGER TO EXECUTE A CONSTRUCTION CONTRACT CHANGE ORDER IN THE AMOUNT OF $250,000 WITH CRATUS, INC. TO INCLUDE THE VIA FERRARI SEWER REPLACEMENT UNDER THE DANVILLE SEWER RENOVATIONS, PHASE 3, DISTRICT PROJECT 8456; AND INCREASE THE CONSTRUCTION CONTINGENCY FROM 15 PERCENT TO 27 PERCENT 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 KENTON L.ALM, DISTRICT COUNSEL ISSUE Authorization from the Board of Directors (Board) is required to execute a construction contract change order in an amount greater than $200,000 and to increase the contract contingency limit presented at time of award. BACKGROUND The public sewer main located within the easement at Via Ferrari and Brookwood Drive in unincorporated Lafayette requires replacement. This sewer crosses Murderer's Creek and next to Brookwood Park. The 8-inch diameter sewer main was installed by the developer in 1976 and originally ran beneath the creek. Since then, the creek has eroded and was most recently undermined during heavy rain events in 2019. Currently, the sewer is exposed within the creek and was repaired with a short-term solution to stabilize and prevent the possibility of leaks. The short-term repair allowed Central San the time to evaluate, design, obtain permits, and coordinate a long-term solution for the sewer replacement which also benefited the nearby residents by removing the temporary bypass systems and 24-hour monitoring by the Collection August 12, 2020 Special EOPS Committee Meeting Agenda Packet- Page 3 of 6 Page 2 of 3 System Operations Division (CSOD). The long-term solution consists of building a new aerial creek crossing at the same location that will span over the creek and be supported by structural concrete piers. The design considers future erosion of the creek and for a 100-year storm event. Staff prepared the design with the help of geotechnical and structural engineering consultants and has received all permits needed for the construction work. Staff included the proposed work as an additive bid item under the Walnut Creek Sewer Renovations, Phase 14, District Project (DP) 8460 this year and received a very high estimate from the awarding contractor. Thus, it was recommended to rebid the work. However, since then, the sewer renovation project that was scheduled to include this work has been delayed. Time is of the essence; therefore, staff requested change order proposals from its current sewer contractors and received an acceptable price from Cratus, Inc. (Cratus), which is the contractor hired for the Danville Sewer Renovations, Phase 3, DP 8456. The work is expected to begin the third week of this month and be completed by late October of this year to meet the Department of Fish and Wildlife permit restrictions. There is a lawsuit between the county, the park district, and the homeowners adjacent to the project. The project pipe alignment and reconstruction does go through the properties of those homeowners, who are aware and in agreement with the project work under this change order. ALTERNATIVES/CONSIDERATIONS The sewer requires replacement, therefore, the Board has very limited options, but could consider including the work and re-bid under another collection system sewer renovation project or as a standalone project. This would delay the work and the permits would have to be extended. Staff does not recommend this approach since the repair completed is considered temporary and continued erosion of the creek will increase the risk of failure and require additional monitoring by CSOD. FINANCIAL IMPACTS The total estimated cost to complete this work is $320,000, which includes $250,000 to Cratus, and $70,000 for construction management and contingency. The change order would be funded by the Collection System Sewer Renovation - Phase 1, DP 8451. There is adequate funding in DP 8451 for this work and, upon Board approval, the funds will be transferred to D P 8456. The $320,000 estimate for the work will increase the contingency limit for DP 8456 from 15 percent to 27 percent. For construction cost comparison, the contractor that bid the work under DP 8460 provided an estimate of $325,000 to complete the work. The Engineer's estimate is $250,000. COMMUNITY OUTREACH Staff has been communicating with the impacted residents at Via Ferrari and Brookwood Drive since 2019 related to the sewer repair and replacement work. Most recently, on Thursday, August 8, 2020, staff met with the property owners to discuss the construction of the aerial creek crossing, the anticipated schedule, and to receive feedback and concerns about the work. COMMITTEE RECOMMENDATION The Engineering and Operations Committee reviewed this matter at the August 12, 2020 meeting and recommended August 12, 2020 Special EOPS Committee Meeting Agenda Packet- Page 4 of 6 Page 3 of 3 RECOMMENDED BOARD ACTION Authorize the General Manager to execute a construction contract change order in the amount of $250,000 with Cratus, Inc. to include the Via Ferrari Sewer Replacement under the Danville Sewer Renovations, Phase 3, District Project 8456; and increase the construction contingency from 15 percent to 27 percent. Strategic Plan Tie-In GOAL ONE: Customer and Community Strategy 1—Deliver high-quality customer service, Strategy 2—Maintain a positive reputation GOAL TWO: Environmental Stewardship Strategy 1—Achieve 100% compliance in all regulations GOAL FOUR: Workforce Development Strategy 4—Meet or exceed industry safety standards GOAL FIVE:Infrastructure Reliability Strategy 2—Execute long-term capital renewal and replacement program, Strategy 3—Protect personnel and assets from threats and emergencies GOAL SEVEN:Agility and Adaptability Strategy 1—Maintain a safe working environment for employees and the public during the COVID-19 pandemic August 12, 2020 Special EOPS Committee Meeting Agenda Packet- Page 5 of 6