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Home My WebLink About06. Award a construction contract to Velluntini Corporation, dba Royal Electric Company, for the San Ramon Electrial Upgrades, DP 100017 Page 1 of 7 Item 6. CENTRAL SAN BOARD OF DIRECTORS POSITION PAPER MEETING DATE: MAY 26, 2022 SUBJECT: AWARD A CONSTRUCTION CONTRACT IN THE AMOUNT OF $1,333,333 TO VELLUTINI CORPORATION, DBA ROYAL ELECTRIC COMPANY, THE LOWEST RESPONSIVE AND RESPONSIBLE BIDDER FOR THE SAN RAMON ELECTRICAL UPGRADES, DISTRICT PROJECT 100017; AND FIND THAT THE PROJECT IS EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITYACT 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. BACKGROUND Staff identified several electrical deficiencies at the San Ramon Pumping Station. These deficiencies are with critical electrical equipment used for the daily operation of powering wastewater pumps or to power the entire pumping station during PG&E power shut-off conditions. The electrical equipment scheduled for replacement under the San Ramon Electrical Upgrades, District Project 100017 (Project) includes several variable frequency drives (VFDs), the automatic transfer switch for standby emergency generator power, May 26, 2022 Special Board Meeting Agenda Packet- Page 38 of 532 Page 2 of 7 and the main electric service entrance (service entrance)for the pumping station. The VF Ds and automatic transfer switch have been in constant need of repair in recent years and have shown signs of being unreliable during routine maintenance testing. In addition, due to the existing electrical configuration of the pumping station, the ability to fully test or perform maintenance on the automatic transfer switch is limited and difficult. Improving the service entrance during the replacement of the automatic transfer switch is highly recommended and provides for the optimal opportunity to upgrade the system. The improvements will allow for additional electrical and arc-flash safety. Both the service entrance and automatic transfer switch are the most important pieces of electrical equipment at the pumping station and will require support from PG&E during the Project. The new service entrance will be installed in a small outdoor enclosure adjacent to the building. Central San staff and ArcSine Engineering (ArcSine) prepared the plans and specifications for the Project. The Engineer's estimate for construction was $1.2 million. This Project was advertised on March 31 and April 7, 2022. Six sealed bids ranging from $1,333,333 to $1,790,300 were received and publicly opened on April 27, 2022. The Capital Projects Division conducted a technical and commercial review of the bids and determined that Vellutini Corporation, dba Royal Electric Company(Royal Electric) is the lowest responsive and responsible bidder. This determination came after staff reviewed the bids for completeness and verified all references. Royal Electric is a new contractor to Central San; however, they do have similar experience in wastewater and projects with similar equipment.A summary of bids received is shown in Attachment 2. All bids were over the Engineer's estimate. After evaluating the bid costs received and information provided by some of the bidders, the increase is due to equipment costs. The type of equipment specified in this Project has increased more than anticipated in the last several months due to the limited supply and product availability. Based on this information, the Engineer's estimate would have increased to a total of $1.5 million. Central San will administer the construction contract and provide construction management, resident engineering, administration, and submittal review with support from ArcSine. Construction inspection will be performed by staff and specialty inspectors. Staff plans on using Carollo Engineers, I nc. (Carollo)for construction management services for the Project; however, the agreement will be presented at a future Board meeting. Carollo was selected as the top scoring firm to support Central San for the construction at several pumping stations, including this Project and the Pump Station Upgrades, Phase 2. The selection was based on a formal solicitation, Request for Proposal process, in which several qualified and experienced firms participated. Staff will provide all construction management services on this Project until the Pump Station Upgrades, Phase 2 starts construction. California Environmental Quality Act(CEQA) Staff has concluded that this Project is exempt from CEQA under Central San CEQA Guidelines Section 15301 because it involves minor alterations to existing public facilities involving no expansion of use and 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. Approval of this Project will establish the Board's independent finding that this Project is exempt from CEQA. ALTERNATIVES/CONSIDERATIONS Delaying or postponing this work is not recommended since the equipment is essential for the pumping station to operate and respond during emergencies or power outages.Another alternative would be to reject all bids, which is also not recommended. May 26, 2022 Special Board Meeting Agenda Packet- Page 39 of 532 Page 3 of 7 FINANCIAL IMPACTS The total estimated project cost is $1,913,000, including design, bid price, contingency, construction management, and consultant costs as detailed in Attachment 3. The Project is listed on page 224 of the Fiscal Year(FY) 2021-22 District Budget at a total cost of$1.2 million. The cost increase to the Project was anticipated and is reflected in the upcoming FY 2022-23 District Budget. No additional budget is required this fiscal year. COMMUNITY OUTREACH Although the project elements are critical, the construction impacts to the nearby community or neighborhood is very minor as a majority of the construction work is within the pumping station building and on Central San property. However, staff is aware of past community outreach and concerns from nearby residents during larger renovation efforts; thus plans to hold an outreach meeting to educate nearby residents of the importance of the Project and to present the timeline and what to expect during construction. Also, staff is coordinating with the City of San Ramon and will notify all nearby residents in the neighborhood as previously done for smaller maintenance type projects that have been performed since the last major renovation completed in 2004. COMMITTEE RECOMMENDATION The Engineering and Operations Committee reviewed this subject at its meeting on May 4, 2022 and recommended approval. RECOMMENDED BOARD ACTION Staff recommends the following Board action: 1. Find that the Project is exempt from CEQA; 2. Award a construction contract in the amount of $1,333,333 to Vellutini Corporation, dba Royal Electric Company, the lowest responsive and responsible bidder for the construction of the San Ramon Electrical Upgrades, District Project 100017; and 3. Authorize the General Manager to execute the Contract Documents subject to submittal requirements. Strategic Plan re-In GOAL ONE: Customer and Community 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 andAdaptability Strategy 1—Maintain a safe working environment for employees and the public during the COVID-19 pandemic May 26, 2022 Special Board Meeting Agenda Packet- Page 40 of 532 Page 4 of 7 ATTACHMENTS: 1. Project Location Map 2. Summary of Bids 3. Post Bid/P reconstruction Estimate May 26, 2022 Special Board Meeting Agenda Packet- Page 41 of 532 Page 5 of 7 San Ramon Electrical Upgrades • District Project 100017 Map Date:4/20/2022 C<Ov�d Ga y��R Martinez Concord Pleasant Hill IE: Walnut Creek Lafayette Moraga �--� Danville Detail Area N° rid tsMam n Gar`1° O Oe- 09 Lc°m X Mopt(9t, eo,0 i O 5 t �nse�ada0 \ `Oc �sme' P� Q Project Area Note: 0 2,000 Map Displayed in North American Datum of 1983 Attachment Central San data as of April,2020. Feet California State Plane,Zone III RIPS 0403,US Feet 1 May 26, 2022 Special Board Meeting Agenda Packet- Page 42 of 532 Page 6 of 7 ATTACHMENT 2 SAN RAMON ELECTRICAL UPGRADES DISTRICT PROJECT 100017 SUMMARY OF BIDS PROJECT NO.: 100017 NO. OF ADDENDA: 1 DATE/TIME: APRIL 27, 2022/2:00 PM PROJECT NAME: SAN RAMON ELECTRICAL UPGRADES PROJECT MANAGER: KEITH GELLERMAN PROJECT LOCATION: 5019 IMHOFF PLACE, MARTINEZ CA ENGINEER'S ESTIMATE: $1,200,000 NO. BIDDER BID PRICE 1 Vellutini Corporation dba Royal Electric Company $1,333,333 Sacramento, CA 95828 2 Telstar Instruments $1,493,559 Concord, CA 94520 3 D.W. Nicholson Corporation $1,563,754 Hayward, CA 94540 4 Blocka Construction, Inc. $1,646,500 Pleasanton, CA 94566 5 Contra Costa Electric $1,668,545 Martinez, CA 94553 6 Auburn Constructors LLC $1,790,300 Sacramento, CA 95834 BIDS OPENED BY: /s/ Amelia Berumen DATE: April 27, 2022 May 26, 2022 Special Board Meeting Agenda Packet- Page 43 of 532 Page 7 of 7 ATTACHMENT 3 SAN RAMON ELECTRICAL UPGRADES DISTRICT PROJECT 100017 POST-BID/PRECONSTRUCTION ESTIMATE % of Construction No. Item Description Amounts Cost 1. CONSTRUCTION a. Construction Contract $1,333,333 b. 15% Contingency $199,667 SUBTOTAL - CONSTRUCTION COST $1,533,000 100% 2. CONSTRUCTION MANAGEMENT a. District Forces - Construction Management (Engineering) $60,000 - Operations $10,000 b. Consultants ArcSine (ESDC) $70,000 Carollo (CM Services) $130,000 SUBTOTAL - CONSTRUCTION MANAGEMENT $270,000 18% 3. PREBID EXPENDITURES a. Engineering (Design, Drafting) $110,000 SUBTOTAL - PREBID EXPENDITURES $110,000 7% 4. TOTAL ESTIMATED PROJECT COST 1 $1,913,000 May 26, 2022 Special Board Meeting Agenda Packet- Page 44 of 532