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Home My WebLink About06. Award a construction contract in the amount of $5,888,730 to Devaney Engineering, Inc., the lowest responsive and responsible bidder for the Pleasant Hill Sewer Renovations, Phase 2, District Project 5991; and find that the project is exempt from the Page 1 of 7 Item 6. CENTRAL SAN BOARD OF DIRECTORS POSITION PAPER MEETING DATE: MAY 18, 2023 SUBJECT: AWARD A CONSTRUCTION CONTRACT IN THE AMOUNT OF $5,888,730 TO DEVANEY ENGINEERING, INC., THE LOWEST RESPONSIVE AND RESPONSIBLE BIDDER FOR THE PLEASANT HILL SEWER RENOVATIONS, PHASE 2, DISTRICT PROJECT5991; AND FIND THAT THE PROJECT IS EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITYACT (CEQA) SUBMITTED BY: INITIATING DEPARTMENT: JASON FITCH, ASSOCIATE ENGINEER ENGINEERING AND TECHNICAL SERVICES- CAPITAL PROJECTS REVIEWED BY: SASHA MESTETSKY, SENIOR ENGINEER EDGAR J. LOPEZ, PROVISIONAL 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 The Pleasant Hill Sewer Renovations, Phase 2, District Project 5991 (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 Project has been coordinated with other improvements being completed by the Contra Costa Water District (CCWD) and the City of Pleasant Hill's paving plans, as well as other utilities, businesses, private property owners, and tenants. May 18, 2023 Regular Board Meeting Agenda Packet- Page 26 of 480 Page 2 of 7 This Project will replace or rehabilitate approximately 8,700 feet of small diameter sewers, maintenance access structures, and other related sewer work within public rights-of-way and private easements. Central San staff prepared the plans and specifications for the Project. Construction methods primarily include open trench, horizontal directional drilling, pilot tube guided boring, and cured-in-place pipe rehabilitation. An overview map of all site locations is shown in Attachment 1. The Engineer's estimate for construction is $4,700,000. This Project was advertised on April 10 and April 17, 2023. Five sealed bids ranging from $5,888,730 to $6,788,000 were received and publicly opened on April 27, 2023. The Capital Projects Division conducted a technical and commercial review of the bids and determined that Devaney Engineering, Inc. (Devaney) is the lowest responsive and responsible bidder with a total bid amount of$5,888,730.A summary of bids received is shown in Attachment 2. The bids received were significantly higher than expected.After a detail review of the bid pricing, it is evident that the estimate was too low and did not consider the following factors: significant increase in materials or labor, inflation, and impacts associated with deep excavations. Most of the difference between the estimate and bids was due to the cost in open trench pipe installation. This is the first instance since the COVI D-19 pandemic that staff has seen a drastic rise in pipeline construction, as the price for new sewers have been steady with minimal change during the past three years. The low bid provided by Devaney is very competitive based on the fact that the second low bid is from a contractor that is already at the project site working for CCW D and has a complete understanding of the area. Staff keeps a history or index of sewer pricing based on past projects and nearby agencies, an adjustment will be made for future projects that have a similar scope of work. 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. 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 The planning effort for this Project has been difficult to coordinate due to the below industry standards for the existing utilities and paving in the neighborhood. Performing this work along with the other agencies is cost effective for all parties and reduces public impacts to the residents. Reject all bids, which is not recommended. Central San staff has coordinated the Project with the City of Pleasant Hill, CCW D, private property owners, nearby residents, and other utilities. The public sewers are in need of replacement and due to the City's paving plans, awarding the project now is recommended. May 18, 2023 Regular Board Meeting Agenda Packet- Page 27 of 480 Page 3 of 7 FINANCIAL IMPACTS The total estimated project cost is $8,252,000 which includes planning, design, bid price, contingency, construction management, and consultant costs as detailed in Attachment 3. This Project is included on page 203 of Central San's Fiscal Year 2022-2023 Budget, and the construction will be funded by the Collection System Sewer Renovation, Phase 2 on page 225. There is adequate funding for the Project. The project was budgeted to replace 6,500 feet of sewers and was increased to 8,700 feet to accommodate the work proposed by CCW D and the City. Corrections to the project description and budget will be made for the next fiscal year. Staff is recommending a 15-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. This contingency amount will also be used for vibration monitoring during deep excavation to insure that nearby homes or properties are not impacted due to the heavy equipment used by the contractor. Central San has successfully implemented similar efforts in past projects in Pleasant Hill. 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 2022 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. The public was also invited to a public workshop that was held at the Pleasant Hill Senior Center on April 5, 2023 to address any questions or concerns regarding the Project. 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 matter at its meeting on May 8, 2023, and recommended Board approval. 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$5,888,730 to Devaney Engineering, Inc., the lowest responsive and responsible bidder, for the construction of the Pleasant Hill Sewer Renovations, Phase 2, District Project 5991; and 3. Authorize the General Manager to execute the Contract Documents subject to submittal requirements. May 18, 2023 Regular Board Meeting Agenda Packet- Page 28 of 480 Page 4 of 7 Strategic Plan Tie-In GOAL ONE: Customer and Community Strategy 1—Deliver high-quality customer service, Strategy 3- Build neighborhood and industry relations GOAL TWO:Environmental Stewardship Strategy 1 -Achieve compliance in all regulations GOAL FIVE: Safety and Security Strategy 2- Protect personnel and assets from threats and emergencies GOAL SIX.Infrastructure Reliability Strategy 2- Execute long-term capital renewal and replacement program ATTACHMENTS: 1. Project Location Map 2. Summary of Bids 3. Post-Bid Preconstruction Estimate May 18, 2023 Regular Board Meeting Agenda Packet- Page 29 of 480 Page 5 of 7 Pleasant Hill Sewer Renovations Phase 2 District Project 5991 Map Date:4/20/2023 J Gon^^cord;q ve Martinez ARA" Concord Ch��ancin9°:PK�y Detail ■ Pleasant Hill Area •:1 G� 0 a Walnut Creek Qa Lafayette .•r �\�oJ� W < a \Ja e 6� 5991 9� Taylor=Blvd a m O CU 0 s. 5991 0 0l v 5991 Grayson Rd Gregory-L-n m e� Qom✓ °J� �o B°yd-Rd 5991 •:1 °rya Ter = a CU ca ty L a Oak-Park Blvd Project Location and Number U 0 1,000 2,000 a Note: Map Displayed in North American Datum of 1983 Attachment Central San data as of April 2023. Feet California State Plane,Zone III FIPS O403,US Feet 1 May 18, 2023 Regular Board Meeting Agenda Packet- Page 30 of 480 Page 6 of 7 ATTACHMENT 2 PLEASANT HILL SEWER RENOVATIONS, PHASE 2 DISTRICT PROJECT 5991 SUMMARY OF BIDS PROJECT NO.: 5991 NO. OF ADDENDA: 1 DATE/TIME: APRIL 27, 2023/11 AM PROJECT NAME: PLEASANT HILL SEWER RENOVATIONS, PHASE 2 PROJECT MANAGER: JASON FITCH PROJECT LOCATION: CENTRAL SAN SERVICE AREA ENGINEER'S EST.: $4,700,000 NO. BIDDER BID PRICE 1 Devaney Engineering, Inc. $5,888,730 San Francisco, California 94109 2 Cratus, Inc. $6,372,470 San Francisco, California 94116 3 Mitchell Engineering $6,622 741 San Francisco, California 94124 ' 4 JMB Construction, Inc. $6,699,375 South San Francisco, California 94080 5 K.J. Woods Construction, Inc. $6,788,000 South San Francisco, California 94083 BIDS OPENED BY: /s/Katie Young DATE: April 27, 2023 May 18, 2023 Regular Board Meeting Agenda Packet- Page 31 of 480 Page 7 of 7 ATTACHMENT 3 PLEASANT HILL SEWER RENOVATIONS, PHASE 2 DISTRICT PROJECT 5991 POST-BID/PRECONSTRUCTION ESTIMATE % Of Item Description Amounts Construction No. Cost 1. CONSTRUCTION a. Construction Contract $5,888,730 b. 15% Contingency $883,270 c. Permits (Traffic Control) $100,000 SUBTOTAL- CONSTRUCTION COST $6,872,000 100% 2. CONSTRUCTION MANAGEMENT a. District Forces - Construction Management (Engineering, Survey) $230,000 - Public Relations/Right-of-Way $50,000 - Operations (CSO) $30,000 b. Consultants - Inspection $200,000 - Material Testing/Geotech/Arborist/Others $100,000 SUBTOTAL - CONSTRUCTION MANAGEMENT $610,000 9% 3. PREBID EXPENDITURES a. Engineering (Design, Survey, Right-of-Way, Drafting) $770,000 SUBTOTAL - PREBID EXPENDITURES $770,000 11% 4. TOTAL ESTIMATED PROJECT COST $8,252,000 May 18, 2023 Regular Board Meeting Agenda Packet- Page 32 of 480