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Home My WebLink About09. Approve a $650,000 contingency project for the Tappan Terrace Sewer ReplacementDCENTRALSAN MEETING DATE: JULY6, 2023 BOARD OF DIRECTORS POSITION PAPER Page 1 of 6 Item 9. SUBJECT: APPROVE A$650,000 CONTINGENCY PROJECT FOR THE TAPPAN TERRACE SEWER REPLACEMENT; FIND THATTHE PROJECT IS EXEMPT FROM PUBLIC BIDDING BASED ONA LANDSLIDE MAKING THE WORK IMPRACTICALAND A DISADVANTAGE; AUTHORIZE THE GENERAL MANAGER TO EXECUTE A CONSTRUCTION CONTRACT IN THE AMOUNT OF $498,000 WITH ENGINEERED SOIL REPAIRS, INC.; TRANSFER $650,000 FROM THE CAPITAL IMPROVEMENT BUDGET CONTI NGENCYACCOUNT TO FUND THE PROJECT; AND FI ND 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 KENTON L. ALM, DISTRICT COUNSEL Roger S. Bailey Kenton L. Alm General Manager District Counsel ISSUE The Board of Directors (Board) approval is required for any new project in an amount over $200,000, which is not identified in the Capital Improvement Budget (CI B) and Cl B transfers in an amount over $500,000. July 6, 2023 Regular Board Meeting Agenda Packet - Page 45 of 151 Page 2 of 6 BACKGROUND In March of 2020, several properties in the Tappan Terrace subdivision in Orinda were damaged due to a landslide. Central San owns and operates a 8 -inch public sewer within Tappan Terrace (private road) and sewer easements on 315 and 318 Tappan Terrace, and 99 Tappan Lane, which were granted by the subdivision developer in 1978, as shown in Attachment 1 -Project Location Map. Central San was unaware of the landslide until early July 2020 when notification was provided of a landslide design repair that would impact the utilities in the area, most specifically the East Bay Municipal Utility District's (EBMUD) waterlines and Central San's sewer facilities. By the end of July 2020, Central San had found multiple damages to its sewers caused by the landslide and determined that approximately 300 feet of the sewer line would have to be out of service as repairs were infeasible. This sewer line serves the three properties, 315 and 318 Tappan Terrace and 99 Tappan Lane, resulting in temporary above ground sewers installed by the Collection System Operations division to provide reliable sewer service. On April 23, 2022, a settlement agreement was made between EBMUD, multiple property owners, insurances, and the homeowner association in the Tappan Terrace subdivision. Engineered Soil Repairs, I nc. (ESR) was named in the settlement agreement as the specialty contractor for repairing the property related to the landslide by installing retaining walls, site restoration, and roadway repair. Permanent repair of the utilities was not included in the settlement. ESR has applied for permits for the work identified under the settlement, and Central San has reviewed and allowed the encroachments within the sewer easements. Central San has been coordinating with EBMUD, ESR, and PG&E for the landside repair and new utilities. PG&E elected to replace its own utilities. EBMUD and Central San explored the possibility of a joint agreement for one contractor to repair both utilities as a subcontractor to ESR, however, was unsuccessful since several pipeline contractors were not interested and did not provide bid pricing. Feedback received from those contractors was focused on the difficulty in open -trench construction on hillsides and coordination required with the landslide repair or risks involved with restoration. After which, EBMUD decided to procure ESR to perform the work, with support from EBMUD's pipeline crews. ESR intends to install the water utility as they perform the landslide repair and has provided a proposal in the amount of approximately $498,000 to Central San to install the sewer at the same time. Although as a general rule, competitive bidding for District projects is mandatory; however, there are certain well recognized exceptions to that requirement. One exception is where the nature of the contract subject is such that "...competitive proposals would be unavailing or would not produce an advantage, and the advertisement for competitive bid would thus be undesirable, impractical or impossible." ( Kennedy v. Ross (1946) 28 Cal 2nd 569). Staff has evaluated multiple alternatives as noted below, and staff and District counsel have concluded that it is necessary to conduct the sewer replacement in a fashion that does not interfere with or compromise the overall slide repair. Having the slide repair contractor integrate the sewer work into its overall landslide repair meets that objective. ESR is a specialty contractor that is well known in the San Francisco Bay Area for repairs associated with landslides and has the qualifications and experience as a general contractor to install pipelines such as gravity sewers and related sewer structures. The scope of work for the sewer replacement includes, but is not limited to, installation of 300 feet of 8 -inch sewers, two new sewer structures, reconnecting side sewers, and other related sewer activities. Staff reached out to other sewer contractors for additional pricing to verify the proposed ESR price or find other construction methods but received limited responses and interest due to the landslide repair. The price offered by ESR is reasonable considering the complexities involved with replacing the sewer facilities such as the topography (steep hillsides), equipment access, deep excavations (10 feet), and the July 6, 2023 Regular Board Meeting Agenda Packet - Page 46 of 151 Page 3 of 6 amount of grading required for the construction work is extensive. Central San staff designed the new sewer facilities and plans to administer the construction contract and provide construction management, resident engineering, survey, administration, and submittal review. Construction 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 ESR is currently awaiting responses or contract agreements from EBMUD and Central San. EBMUD is scheduled to get approval in July and Central San staff is recommending to do the same as ESR plans to start the landslide repair by late July. Performing the sewer work after ESR's work is not recommended. Staff considered and evaluated several alternatives, including the following: 1. Perform and contract the entire sewer work as a public bid, but due to the complications and risks involved with impacting the landslide repair, this alternative is not recommended as is considered by staff as impractical and a disadvantage to Central San to hire another outside contractor. 2. Staff considered other methods besides open -trench construction but due to site constraints, were unable to recommend any that could help reduce or lessen the construction impacts. 3. Staff considered coordinating the work partially with another contractor. Staff does not recommend this approach due to the slow pace anticipated with the pipeline installation. ESR plans to build the hillside and install the water and sewer at 18-20 feet intervals to coordinate with the landslide repair. 4. Staff considered alternative sewer alignments and pumping systems. Staff does not recommend this approach due to timing and increased capital cost or lifecycle costs and work to install a small pumping station, additional sewer mains, both force main and gravity, and acquisition of additional easements. FINANCIAL IMPACTS The total estimated project cost is $650,000 which includes design, ESR price, contingency, construction management, and consultant costs as detailed in Attachment 2. This project is not included in Central San's Fiscal Year 2023-24 Budget. The contingency project will be funded by the Capital Improvement Budget Contingency account, which to date has over $12,000,000 and has adequate funding for the project. July 6, 2023 Regular Board Meeting Agenda Packet - Page 47 of 151 Page 4 of 6 COMMUNITY OUTREACH Central San staff did extensive coordination with EBMUD, the lead agency, and ESR, the lead contractor, on the landslide repair project. Throughout the course of design, staff addressed email and phone inquiries regarding the project. To date, all questions and concerns received have been answered and addressed. Upon approval by the Board, staff plans to reach out to provide reminders, suggesting and recommending that the private side sewers be inspected by the property owners prior to ESR completing the work. COMMITTEE RECOMMENDATION The Engineering and Operations Committee reviewed this matter at its meeting on June 12, 2023, and Special Engineering and Operations Committee Meeting on June 20, 2023 and recommended Board approval. RECOMMENDED BOARD ACTION Staff recommends the following: Approve a $650,000 contingency project for the Tappan Terrace Sewer Replacement; 2. Find that the Project is exempt from public bidding based on a landslide making the work impractical and a disadvantage; 3. Authorize the General Manager to execute a construction contract in an amount of $498,000 with Engineered Soil Repairs, Inc.; 4. Transfer $650,000 from the Capital Improvement Budget Contingency account to fund the project; and 5. Find that the project is exempt from the California Environmental Quality Act (CEQA) 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 ATTACHMENTS: 1. Project Location Map 2. Post-Bid/P reconstruction Estimate July 6, 2023 Regular Board Meeting Agenda Packet - Page 48 of 151 Page 5 of 6 Tappan Terrace Sewer Replacement Map Date: 5/24/2023 ❑Detail Walnut Creek Area Orinda Lafayette Moraga tea, q, m Tappaq- olw �A / d4, f = p�7 a �7 CD ehabod �n Vashingtoo II Ln r Ii Son ,Nbefry Gt Gravity Main Mains to be Renovated S/�ee�eq Note: 0 500 Map Displayed in North American Datum of 1983 Attachment Central San data as of May, 2023. Feet California State Plane, Zone III RIPS 0403, US Feet 1 July 6, 2023 Regular Board Meeting Agenda Packet - Page 49 of 151 Page 6 of 6 ATTACHMENT 2 TAPPAN TERRACE SEWER REPLACEMENT DISTRICT PROJECT TBD POST-BID/PRECONSTRUCTION ESTIMATE No. Item Description Amounts % of Construction Cost 1. CONSTRUCTION a. Construction Contract $498,000 b. 15% Contingency $75,000 SUBTOTAL - CONSTRUCTION COST $573,000 100% 2. CONSTRUCTION MANAGEMENT a. District Forces - Construction Management (Engineering, Survey) $18,000 b. Consultants - Inspection $35,000 - Material Testing/Geotech/Arborist/Others $7,000 SUBTOTAL - CONSTRUCTION MANAGEMENT $60,000 10% 3. PREBID EXPENDITURES a. Engineering (Design, Survey, Right -of -Way, Drafting) $17,000 SUBTOTAL - PREBID EXPENDITURES $17,000 3% 4. TOTAL ESTIMATED PROJECT COST $650,000 July 6, 2023 Regular Board Meeting Agenda Packet - Page 50 of 151