The URL can be used to link to this page

Home My WebLink About04.c. Review draft Position Paper to award a construction contract in the amount of $4,122,454 to Precision Engineering, Inc., the lowest responsive and responsible bidder for the Walnut Creek Sewer Renovations, Phase 16, District Project 100023; include Page 1 of 7 Item 4.c. CENTRAL SAN BOARD OF DIRECTORS . , , . POSITION PAPER . , DRAFT MEETING DATE: JUNE 1, 2022 SUBJECT: REVIEW DRAFT POSITION PAPER TO AWARD A CONSTRUCTION CONTRACT IN THE AMOUNT OF $4,122,454 TO PRECISION ENGINEERING, INC., THE LOWEST RESPONSIVE AND RESPONSIBLE BIDDER FOR THE WALNUT CREEK SEWER RENOVATIONS, PHASE 16, DISTRICT PROJECT 100023; INCLUDE ADDITIVE BID SCHEDULE UP TO THE AMOUNT OF $472,000 FOR SEWER REPLACEMENT WITHIN CONTAMINATED SOILS; AND FIND THAT THE PROJECT IS EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITYACT SUBMITTED BY: INITIATING DEPARTMENT: DAMASI0 ZEPEDA ARAGON, 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. BACKGROUND The Walnut Creek Sewer Renovations, Phase 16, District Project 100023 (Project) is part of the ongoing sewer renovation within the Capital Improvement Budget and 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 activities are coordinated with local jurisdictions, cities, utilities, businesses, private property owners, and tenants. The Project will replace or rehabilitate approximately 11,000 feet of small diameter sewer mains, maintenance access structures, and other related public sewer work within public rights-of-way and private easements. Central San staff prepared the plans and specifications for the Project. Construction methods June 1, 2022 EOPS Regular Committee Meeting Agenda Packet- Page 307 of 320 Page 2 of 7 primarily include open trench, pipe bursting, horizontal directional drilling, and cured-in-place pipe.An overview map of all site locations is shown in Attachment 1. The Engineer's estimate for construction is $5,100,000. This Project was advertised on April 26 and May 3, 2022. Seven bids ranging from $4,122,454 to $5,745,358 were received and publicly opened on May 17, 2022. The Capital Projects Division conducted a technical and commercial review of the bids and determined that Precision Engineering, Inc. (Precision) is the lowest responsive and responsible bidder with a total bid amount of$4,122,454.A summary of bids received is shown in Attachment 2. An additive bid schedule was included in the bid documents for a problematic and high maintenance sewer identified by Central San's Collection System Operations Division. The rehabilitation of this sewer is unique since it is located and surrounded by known contaminated sites, which requires a contractor with distinct certifications for identifying, handling, and disposing contaminated soils. Precision included in their bid a cost of$472,000 to perform the additive bid items. The average price from the bidders was roughly$326,000.Although higher than the average price, staff recommends proceeding and including the additive bid schedule under the Project. The higher costs provided by Precision is due to the required certifications and weekend or non-business work hours required to perform the construction activities. The additional site is located in a commercial area in Walnut Creek. Central San will administer the construction contract and provide construction management, resident engineering, survey, administration, and submittal review. Consultant inspection will be performed by one of Central San's consultant inspection service contracts. California Environmental Quality Act(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 has coordinated the Project work with private property owners, businesses, nearby residents, utilities, and the City of Walnut Creek. Delaying or postponing the sewer work is not recommended. Another alternative would be to reject all bids or the additive bid schedule, which is also not recommended. The sewers are in need of replacement, and the additive bid schedule is for a deficient sewer that recently experienced an overflow impacting a hardware store. Staff considered several options for the additive site and does not think that rebidding or separating the work will yield significant cost savings as reflected in the bids received. I n addition, delaying the work will likely increase the coordination challenges with the local businesses near the site. June 1, 2022 EOPS Regular Committee Meeting Agenda Packet- Page 308 of 320 Page 3 of 7 FINANCIAL IMPACTS The total estimated Project cost is $6,379,000 which includes planning, design, bid price, additive bid items, contingency, construction management, and consultant costs as detailed in Attachment 3. This Project is included on page 221 of Central San's Fiscal Year 2022-23 Budget, and the construction will be funded by Phase 2 of the Collection System Sewer Renovation on page 225. There is adequate funding for the Project. Staff is recommending a 12-percent contingency on this Project since additional work may be added to urgently repair or replace nearby sewers and to cover any expenses due to unknown conditions and changes associated with renovation work. COMMUNITY OUTREACH Central San staff did extensive homeowner outreach to prepare residents for the upcoming construction work. Initial Project letters were sent in the Fall of 2021 informing residents of the design work. Throughout the course of design, staff addressed email and phone inquiries regarding the Project and conducted in- person outreach with several easement homeowners. A public meeting was not conducted; however, staff provided a presentation and made it available on Central San's website. Additionally, the public was encouraged to reach out with any additional questions or concerns they may have. To date, all questions and concerns received have been answered and addressed. COMMITTEE RECOMMENDATION The Engineering and Operations Committee reviewed this subject at its June 1, 2022 meeting 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 $4,122,454 to Precision Engineering, Inc., the lowest responsive and responsible bidder for the construction of the Walnut Creek Sewer Renovations, Phase 16, District Project 100023; 3. Include additive bid schedule up to the amount of$472,000; and 4. Authorize the General Manager to execute the Contract Documents subject to submittal requirements. Strategic Plan re-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 June 1, 2022 EOPS Regular Committee Meeting Agenda Packet- Page 309 of 320 Page 4 of 7 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 ATTACHMENTS: 1. Project Location Map 2. Summary of Bids 3. Post-Bid/P reconstruction Estimate June 1, 2022 EOPS Regular Committee Meeting Agenda Packet- Page 310 of 320 Page 5 of 7 Walnut Creek Sewer Renovations Phase 16 District Project 100023 Map Date:5/13/2022 IL Martinez 3ra e l Ave �� .;1 �o� •:1 Concord d� San-�uis Rd Gf a Pleasant Hill vr Detail Area L. w CU N Walnut Creek �o 0 sandy .° Lafayette U Z � ? 1 O as m- Moraga N ac\ovaUey:Rd 'Pd v o Trinity-Ave m CU /9 m N C ® Mt:Diablo:Blvd 0° `oG ° Ga c o� I O 0 CO Edi Newell=Av; \Ja �� .°0 °o° Cf Go, N� � per Sa \ 1 00 "-Glen•Ct ? -70 a l Je\Qt 30 1 GasHe HM'Rd Milton Ave �3``°' P. Rudgear•Rd 5a° /D i �f�e/yd cN Se a 6��d n, oo� �tgve JaOey m �.•1 Project Location \ Note: 0 2,000 Map Displayed in North American Datuof 1983 Attachment Central San data as of May 2022. Feet California State Plane,Zone III RPS 040m 3,US Feet 1 June 1, 2022 EOPS Regular Committee Meeting Agenda Packet- Page 311 of 320 Page 6 of 7 ATTACHMENT 2 WALNUT CREEK SEWER RENOVATIONS, PHASE 16 DISTRICT PROJECT 100023 SUMMARY OF BIDS PROJECT NO.: 100023 NO. OF ADDENDA: 1 DATE/TIME: MAY 17, 2022/11 AM PROJECT NAME: WALNUT CREEK SEWER RENOVATIONS, PHASE 16 PROJECT MANAGER: DAMASIO ZEPEDA ARAGON PROJECT LOCATION: CENTRAL SAN SERVICE AREA ENGINEER'S ESTIMATE: $5,100,000 NO. BIDDER BID PRICE Precision Engineering, Inc. $4,122,454* San Francisco, California 2 Andes Construction, Inc. $4,727,191 Oakland, California 3 Cratus, Inc. $4,962,830 San Francisco, California 4 Basset Engineering $5,105,658 San Francisco, California 5 K.J. Woods Construction, Inc. $5,488,000 South San Francisco, California 6 California Trenchless, Inc. $5,610,660 Hayward, California 7 Glosage Engineering, Inc. $5,745,358 Richmond, California *Upon bid evaluation, staff corrected the bid provided by Precision Engineering, Inc. from $4,142,454 to $4,122,454 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/ Eileen Hansen DATE: May 17, 2022 June 1, 2022 EOPS Regular Committee Meeting Agenda Packet- Page 312 of 320 Page 7 of 7 ATTACHMENT 3 WALNUT CREEK SEWER RENOVATIONS, PHASE 16 DISTRICT PROJECT 100023 POST-BID/PRECONSTRUCTION ESTIMATE %Of Item Description Amounts Construction No. Cost 1. CONSTRUCTION a. Construction Contract $4,122,454 b. Additive items for contaminated site $472,000 c. 12% Contingency $494,546 d. Permits $60,000 SUBTOTAL-CONSTRUCTION COST $5,149,000 100% 2. CONSTRUCTION MANAGEMENT a. District Forces - Construction Management(Engineering, Survey) $190,000 - Public Relations/Right-of-Way $30,000 - Operations (CSO) $20,000 b. Consultants - Inspection $195,000 - Hazmat support $25,000 - Material Testing/Geotechnical/Arborist/Others $70,000 SUBTOTAL-CONSTRUCTION MANAGEMENT $530,000 10% 3. PREBID EXPENDITURES a. Engineering (Design, Survey, Right-of-Way, Drafting) $700,000 SUBTOTAL- PREBID EXPENDITURES $700,000 14% 4. TOTAL ESTIMATED PROJECT COST $6,379,000 June 1, 2022 EOPS Regular Committee Meeting Agenda Packet- Page 313 of 320