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Home My WebLink About03.c. Construction Contract for the Downtown Walnut Creek Sewer Renovations-Locust in the amount of $4,112,000 million with Precision Engineering, Inc. and is exempt from CEQAPage 1 of 13 Item 3.c. CD BOARD OF •' CENTRAL CONTRA COSTA SANITARY DISTRICT POSITION PAPER DRAFT i MEETING DATE: AUGUST 14, 2023 SUBJECT: REVIEW DRAFT POSITION PAPER TO AWARD A CONSTRUCTION CONTRACT IN THE AMOUNT OF $4,112,000 MILLION TO PRECISION ENGINEERING, INC., THE LOWEST RESPONSIVE AND RESPONSIBLE BIDDER FOR THE DOWNTOWN WALNUT CREEK SEWER RENOVATIONS - LOCUST, DISTRICT PROJECT 100049; FIND THAT IT IS IN THE BEST INTEREST OF THE PROJECT TO WAIVE DISTRICT CODE 9.10.040 RELATING TO THE LOWER LATERALAND INCLUDE ADDITIONAL REPLACEMENT IN THE PUBLIC STREET; AND FIND THAT THE PROJECT IS EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITYACT (CEQA) SUBMITTED BY: INITIATING DEPARTMENT: DAMASI0 ZEPEDAARAGON, ASSOCIATE ENGINEERING AND TECHNICAL SERVICES - ENGINEER CAPITAL PROJECTS REVIEWED BY: SASHA MESTETSKY SENIOR ENGINEER EDGAR J. LOPEZ, CAPITAL PROJECTS DIVISION MANAGER GREG NORBY, DEPUTY GENERAL MANAGER ROGER S. BAILEY, GENERAL MANAGER ISSUE The Board of Directors (Board) must consider award of the contract or reject bids within 50 days of the bid opening. Authorization is also required to renovate the private side sewer beyond the standard practice for construction. Award of the Project will also authorize the General Manager to execute the Contract Documents subject to submittal requirements. BACKGROUND The Downtown Walnut Creek Sewer Renovations - Locust, District Project 100049 (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 by the East Bay Municipal Utility District (EBMUD) and the City of Walnut Creek (City), as well as other utilities, businesses, and private property owners. August 14, 2023 EOPS Regular Committee Meeting Agenda Packet - Page 18 of 64 Page 2 of 13 This Project will replace up to 4,400 feet of small diameter sewers, maintenance access structures, and other related sewer work within public rights -of -way and in one private easement. The existing 6-inch diameter clay sewers will be upsized to 10-inch PVC due to the commercial use for the public sewers. Central San staff prepared the plans and specifications for the project. Construction methods include open trench, and an overview map of all site locations is shown in Attachment 1. The Engineer's estimate for construction is $5,000,000. This Project was advertised on July 18 and July 25, 2023. Nine (9) sealed bids ranging from $4,112,000 to $7,373,000 million were received and publicly opened on August 8, 2023. The Capital Projects Division conducted a technical and commercial review of the bids and determined that Precision Engineering, Inc. is the lowest responsive and responsible bidder with a total bid amount of $4,112,000 million. A summary of bids received is shown in Attachment 2. The public sewers being replaced under this Project are original to the City and were inherited by Central San. Many of the public sewers and private side sewers (laterals) do not meet current Central San standards for design and construction. The public sewers on and near Locust Street have been maintained and cleaned on a monthly schedule since the 2000's due to grease problems. Prior to monthly cleaning, Central San had numerous sewage overflows throughout the project location at every maintenance access structure. Central San has worked with the businesses and property owners for over two decades and although improvements for grease control and private maintenance have been completed, the public sewers still require routine cleaning efforts. The Central San cleaning is performed by the Collection System Operations Division and due to the City's permit and traffic restrictions, maintenance must be completed outside of normal business hours. The costs to maintain the sewers are significant when staff time, overtime, and the equipment or specialty vehicles costs used for cleaning are considered. Therefore, the design of the Project includes improved hydraulics and is aimed for commercial and restaurant sewer applications. Grease can still be an issue and build up in the new sewer system if the laterals are not addressed in part with the improvements. Per District Code 9.10.040, laterals are private property, and the owners are responsible for maintaining and replacing the laterals at their expense. There are roughly 60 commercial laterals impacted by this project, of which up to 40 side sewers are not up to code and are 4-inch diameter in size and more than 75 years of age. The current minimum standard for a commercial lateral is 6-inches. However, staff is recommending waiving the District Code under this project to replace and modernize the lower laterals, as needed, on public right-of-way only (City jurisdiction or streets) to improve the overall sewer system and reduce sewer maintenance. This recommendation is based on a business case evaluation considering the costs of the lower laterals, cleaning costs, frequency, and standard life expectancy for the new sewers. Typically, when Central San renovates a public sewer and installs a new sewer deeper than its existing alignment, then the project has impacted the lower lateral. The change to the public sewer requires a new connection to the lateral and up to 6 feet of replacement. The work required to replace the additional length of the lower lateral can range 10-25 feet for each lateral. The goal of staff is to provide a system with the longest time between cleanings as possible. 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. August 14, 2023 EOPS Regular Committee Meeting Agenda Packet - Page 19 of 64 Page 3 of 13 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 Reject all bids, which is not recommended. Central San staff has coordinated the Project with the City, EBMUD, private property owners, commercial establishments, and other utilities. The public sewers need to be replaced and due to the City's paving plans and coordinated efforts, awarding the Project at this time is recommended. Alternatives with the lower laterals are noted below or the Board can provide other direction or input: 1. Standard approach, which consists of replacing the lateral connection at the public sewer and up to 6-feet for the lateral transition to the new sewer. This also includes public outreach to educate property owners on laterals and help guide them through the replacement at their costs. 2. Include the pending lateral finance assistance program with the Standard approach. The additional costs for the lower laterals is estimated at $300,000 which includes approximately up to 40 commercial properties and new clean outs on the public right-of-way. FINANCIAL IMPACTS The total estimated project cost is $5,914,000 million which includes planning, design, bid price, contingency, construction management, and consultant costs as detailed in Attachment 3. This Project is included on page 235 of Central San's Fiscal Year 2023-24 Budget, and the construction will be funded by the Collection System Sewer Renovation, Phase 2 on page 231. There is adequate funding for the Project. 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. COMMUNITY OUTREACH Central San staff did extensive outreach to prepare the affected commercial establishments and property owners for the upcoming construction work. Initial project letters were sent in the Fall of 2022 informing of the upcoming design work. Throughout the course of design, staff addressed email and phone inquiries regarding the project. A virtual public workshop was held via Zoom on June 27, 2023 and was scheduled in collaboration with the Walnut Creek Downtown Business Association to ensure the affected businesses were informed and to answer any questions. Additionally, the public was encouraged to reach out with any August 14, 2023 EOPS Regular Committee Meeting Agenda Packet - Page 20 of 64 Page 4 of 13 other questions or concerns. To date, all questions and concerns received have been answered and addressed. COMMITTEE RECOMMENDATION The Engineering and Operations Committee reviewed this matter at its August 14, 2023 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 $4,112,000 million to Precision Engineering, Inc., the lowest responsive and responsible bidder for the construction of Downtown Walnut Creek Sewer Renovations - Locust, District Project 100049; and 3. Find that it is in the best interest of the project to waive District Code 9.10.040 relating to the lower lateral and include additional replacement in the public street. 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 B id/P reconstruction Estimate 4. Presentation August 14, 2023 EOPS Regular Committee Meeting Agenda Packet - Page 21 of 64 Page 5 of 13 Downtown Walnut Creek Sewer Renovations - Locust District Project 100049 Map Date: 7/24/2023 Martinez Pleasant Concord Hill_ Detail Area It ft ♦1 1 Q Project Location and Number Note: I 0 1,000 2,000 I Map Displayed in North American Datum of 1983 I Attachment Central San data as of July 2023. Feet California State Plane, Zone III FIPS O403, US Feet 1 August 14, 2023 EOPS Regular Committee Meeting Agenda Packet - Page 22 of 64 Page 6 of 13 ATTACHMENT 2 DOWNTOWN WALNUT CREEK SEWER RENOVATIONS - LOCUST DISTRICT PROJECT 100049 SUMMARY OF BIDS PROJECT NO.: 100049 NO. OF ADDENDA: 2 DATE/TIME: AUGUST 8, 2023/11 AM PROJECT NAME: DOWNTOWN WALNUT CREEK SEWER RENOVATIONS - LOCUST PROJECT MANAGER: DAMASIO ZEPEDA ARAGON PROJECT LOCATION: CENTRAL SAN SERVICE AREA ENGINEER'S ESTIMATE: $5,000,000 NO. BIDDER BID PRICE 1 Precision Engineering, Inc. $4 112 000 San Francisco, California ' 2 K.J. Woods Construction, Inc. $4,138,000 South San Francisco, California 3 Ranger Pipelines, Inc. $4,777,480 San Francisco, California 4 JMB Construction, Inc. $4,897,850 South San Francisco, California 5 Cratus, Inc. $5,464,680 San Francisco, California 6 Basset Engineering $5,631,414 San Francisco, California 7 Glosage Engineering, Inc. $6,437 632 Richmond, California ' 8 Mitchell Engineering $6,640,620 San Francisco, California 9 A&B Construction, Inc. $7,373,000 Oakland, California BIDS OPENED BY /s/Eileen Hansen DATE: August 8, 2023 August 14, 2023 EOPS Regular Committee Meeting Agenda Packet - Page 23 of 64 Page 7 of 13 ATTACHMENT 3 DOWNTOWN WALNUT CREEK SEWER RENOVATIONS - LOCUST DISTRICT PROJECT 100049 POST-BID/PRECONSTRUCTION ESTIMATE No. Item Description Amounts % of Construction Cost 1. CONSTRUCTION a. Construction Contract $4,112,000 b. 15% Contingency $617,000 c. Permits $60,000 SUBTOTAL - CONSTRUCTION COST $4,789,000 100% 2. CONSTRUCTION MANAGEMENT a. District Forces - Construction Management (Engineering, Survey) $220,000 - Public Relations/Right-of-Way $70,000 - Lateral Inspection $50,000 - Operations (CSO) $25,000 b. Consultants - General Inspection $200,000 - Material Testing/Arborist/Others $60,000 SUBTOTAL - CONSTRUCTION MANAGEMENT $625,000 13% 3. PREBID EXPENDITURES a. Engineering (Design, Survey, Right -of -Way, Drafting) $500,000 SUBTOTAL - PREBID EXPENDITURES $500,000 10% 4. TOTAL ESTIMATED PROJECT COST $5,914,000 August 14, 2023 EOPS Regular Committee Meeting Agenda Packet - Page 24 of 64 Page 8 of 13 Attachment 4 August 14, 2023 DaWI Area DOWNTOWN WALNUT CREEK SEWER iK RENOVATIONS -LOCUST DISTRICT PROJECT 100049 Engineering and Operations Committee Meeting Sasha Mestetsky, P.E. Senior Engineer Project Background and Drivers Renovate approximately 4,400 feet of small diameter sewers by open -trench construction methods Public sewers being maintained on a monthly schedule since 2000's and requires cleaning to be performed outside of standard business hours I& Project Coordination City of Walnut Creek's Paving and Infrastructure Improvements Project East Bay Municipal Utility District's ' Improvement Project August 14, 2023 EOPS Regular Committee Meeting Agenda Packet - Page 25 of 64 1 Page 9 of 13 Project Complexities High -density commercial setting at the heart of Downtown Walnut Creek along Locust Street including cross streets Existing sewers are flat, and have fats, oil, and grease issues and structural defects Highly congested utility corridor in the street including sewer, gas, water, electric, storm, telecommunication, etc. Contract work is in a dense commercial area with various restaurants and businesses frontage to the project limits Public outreach has been extensive, targeted and was coordinated with other utilities and city staff Private Side Sewers (Laterals): Sewa Cleary F' vut OWrrer Nome Sewer \gym �y Qo Quo e- � xrphtnrof-way 1 District's I Project 1'-- I L *�Cvn4avta r 1 � � Lateral Sewer--_N*i Sewer Male August 14, 2023 EOPS Regular Committee Meeting Agenda Packet - Page 26 of 64 2 Page 10 of 13 Alternatives with Lower Lateral 1. Standard approach in Sewer Renovation Program Replace connection and up to 6 feet transition Advise property owners of condition of lateral when known and encourage/educate/or coordinate replacement at owner's expense 2. Pending Lateral Financial Assistance Program with Standard approach. 3. Project specific approach to best resolve the issues (Recommended): Reduce grease maintenance by Collection System Operations Minimize future construction impacts and efforts for all Offer the pending assistance program for the remaining lateral and other private sewer facilities (grease trap improvements, interceptors, etc.) Special Circumstances and Project Needs Project proposes to replace the lower lateral as needed: Lower laterals up to approximately 30 feet to edge of public right-of- way New public sewers will be installed deeper and adjustments on laterals are needed. Lower laterals will be installed to code (6-inch for commercial) Several lateral connections are inactive and will be abandoned after confirmation Staff recommends to include the lower lateral replacement in the public right-of-way to best design and remediate the sewer issues August 14, 2023 EOPS Regular Committee Meeting Agenda Packet - Page 27 of 64 3 Page 11 of 13 Summary of Bids Engineer's Estimate: $5,000,000 No. BIDDER BID PRICE .I Pregsion Engineering, Inc. $4,112,000 San Francisco, California 2 K.J. Wands Construction, Inc. $4,138,000 South San Francisco, California 3 Ranger �pelines, Inc_ $4.777,480 San Francisco, California 4 JMB Construction, Inc. $4.B97.850 South San Francisco, California Cratus, Inc. $5.464.680 San Francisco, California 6 Basset Engineering $5,631,414 San Francisco, California 7 GIcsage Engineering, Inc. $6,437,632 Richmond, Callromia $ Mitchell Engineering $6,640,620 San Francisco, California 9 A&8 Construction, Inc. $7.373,000 Oakland, Califomia Financial Impact of Additional Lower Laterals Approximately up to $300,000 and includes: Additional lower lateral replacement New clean outs at the end of the lower lateral Inspection by Central San and contingency for conflicts Bids received were highly competitive and below the engineer's estimate of $500,000. August 14, 2023 EOPS Regular Committee Meeting Agenda Packet - Page 28 of 64 4 Page 12 of 13 Total Estimated Project Cost No. Item Description Amounts of Construction Cost 1_ CONSTRUCTION a_ Construction Contract $4,112,000 L. 15%Contingency $617,000 c Permits $190,000 SUBTOTAL - CONSTRUCTION COST $4,789,000 100 % 2_ CONSTRUCTION MANAGEMENT a_ District Farces -Construction Management (Engineering, Survey) $220,000 - Public Relati onsfRi ght-of-Way $70,000 -Lateral Inspection $50,000 -Operations (CSO) $25.000 It Consultants -General Inspection $200.000 -Material TestinglArboristfOthers $60,000 SUBTOTAL- CONSTRUCTION MANAGEMENT $625,000 13% 3. PREBID EXPENDITURES a_ Engineering (Design, Survey, Right -of -Way, Drafting) $500 000 SUBTOTAL - PREBID EXPENDITURES $500 000 10 4. TOTAL E STIMATED PROJECT COST $5,914,000 Recommended Board Action: Staff recommends the following: Find the project is exempt from the California Environmental Quality Act; Award a construction contract in the amount of $4,112,000 to Precision Engineering, Inc., the lowest responsive and responsible bidder, for the construction of Downtown Walnut Creek Sewer Renovations — Locust, District Project 100049; and 3. Find that it is in the best interest of the project to waive District Code 9.10.040 relating to the lower lateral and include additional replacement in the public street. August 14, 2023 EOPS Regular Committee Meeting Agenda Packet - Page 29 of 64 5 Page 13 of 13 Questions? August 14, 2023 EOPS Regular Committee Meeting Agenda Packet - Page 30 of 64 6