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Home My WebLink About03.a. Award Construction Contract to JMB Construction for $2,343,000 for the Martinez Urgent Force Main Replacement DP100066; Additive Bid Item $180,000; Amend existing Carollo Engineers Agreement for $400,000; Transfer $3,762,000 from the CSS Reno Ph.2Page 1 of 13 Item 3.a. CDrrEN1 RAL SAN BOARD OF •' CENTRAL CONTRA COSTA SANITARY DISTRICT POSITION PAPER DRAFT i MEETING DATE: AUGUST21, 2023 SUBJECT: REVIEW DRAFT POSITION PAPER TO AWARD A CONSTRUCTION CONTRACT IN THE AMOUNT OF $2,342,000 TO JMB CONSTRUCTION, INC., THE LOWEST RESPONSIVE AND RESPONSIBLE BIDDER FOR THE MARTINEZ URGENT FORCE MAIN REPLACEMENT, DISTRICT PROJECT 100066; INCLUDE ADDITIVE BID ITEM FOR $180,000 FOR TEMPORARY PIPELINES; AUTHORIZE THE GENERAL MANAGER TO AMEND AN EXISTING CAROLLO ENGINEERS, INC. AGREEMENT FOR $400,000 INCREASING THE COST CEILING TO $2,900,000 TO INCLUDE ENGINEERING SERVICES; TRANSFER $3,762,000 FROM THE COLLECTION SYSTEM SEWER RENOVATION - PHASE 2 TO FUND THE PROJECT; AND FIND THE PROJECT IS EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITYACT (CEQA) 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 GREG NORBY, DEPUTY GENERAL MANAGER ROGER S. BAILEY, GENERAL MANAGER ISSUE On August 16, 2023, three bids were received for the construction of the Martinez Urgent Force Main Replacement, District Project 100066 (Project). The Board of Directors (Board) must consider award of the construction contract or reject bids within 50 days of the bid opening. Board authorization is also required for the General Manager to amend a professional engineering services agreement above $200,000 and transfer funds over $500,000 within the Capital I mprovement Program for individual project budgets. BACKGROUND The existing dual 20-inch cement mortar -lined and coated steel force mains from the Martinez Pumping Station were constructed in 1968 and convey raw wastewater to a discharge structure located within the Martinez Refining Company's (MRC) property. August 21, 2023 Special EOPS Committee Meeting Agenda Packet - Page 3 of 15 Page 2 of 13 Each force main is roughly a mile in length and situated on easements just North of Marina Vista Avenue in Martinez and along the Union Pacific Railroad's (UPRR) right-of-way prior to entering the MRC secured facility as shown in Attachment 1-Project Location Map. I n November 2022, Engineering staff was notified of a small leak at one of the force mains on the UPRR right-of-way. Operations staff quickly responded and stopped the leak by shutting down the force main and draining the sewage within the pipeline back to the Martinez Pumping Station wet well. While the force main was empty, staff CCTV'd the upper portion of the force main near the discharge structure, including the failed pipe location. Based on the video and external inspection, staff determined that the force main has various levels of corrosion with the most severe being observed internally at the top of the pipeline for the last 300 feet. This type of corrosion is common for force mains that experience hydrogen sulfide gas pockets or are not fully filled with wastewater, causing sulfuric acid build-up that deteriorates the cement lining and steel pipe. Capital Projects obtained a contractor to make an urgent repair that involved steel mesh, mortar, and a carbon -reinforced fiber wrap. The repair was successful, and Operations returned the force main to service before several large winter storms. Operations will routinely open both force mains during the wet weather season for purposes of redundancy and to reduce flow velocities within the pipelines. The force mains can experience a large range of flows from 1.0 million gallons per day (MGD) during dry weather to over 12 MGD during peak wet weather events. After the repair and additional inspection of the aerial crossings, staff identified a second failing location that has severe corrosion on the exterior of the pipe. This second location could not be easily seen on the initial inspection due to difficulty in accessing the aerial crossing in the refinery. Therefore, the force main has been turned off again until a contractor can be hired to perform a more extensive repair and/or a full replacement of the aerial crossing. Due to urgency of the situation, staff reached out to Carollo Engineers, Inc. (Carollo) to advise and provide engineering services to permanently replace the corroded force main sections. Carollo is currently working at the Martinez Pumping Station and at the MRC refinery for the Fairview Pumping Station replacement as the construction manager. After reviewing several project alternatives, staff decided that the best alternative was to remove and replace the last 650 feet of both existing force mains. This option will remove the medium to more severe corroded sections and replace all of the force mains on UPRR's right- of-way and MRC's property. The new pipeline is designed using PVC, and will be installed within steel casings for the aerial crossings. Coordinating and obtaining permits with UPRR has been a long and difficult process, and staff has been diligent with providing notifications and anticipates getting final conditions once a general contractor is hired and on site to investigate the field conditions and utilities. The location of the force mains adjacent to the railroads and nearby utilities makes the replacement work very complicated and poses various construction challenges and risks. These challenges include limited access for replacing the aerial crossing and building the new pipe supports. The risks include working near high-pressure gas lines, Kinder Morgan pipeline, and other utilities. Staff has been coordinating with the utilities and pipeline owners to safely perform the construction activities. A careful and highly qualified pipeline contractor with relevant experience is needed to perform the construction work and within the Project timelines. Staff is recommending the Project to be completed in two milestones. The first is for repairs or a temporary pipeline to be installed so that the force mains care is reliable this upcoming wet weather season. And the second milestone is to complete the permanent replacement by July of next year. The Project is also offering incentives for the general contractor to complete any portion of the permanent installation, especially the aerial crossings, to save time and costs for the temporary work and overall project costs. An incentive of up to $200,000 is being proposed in the Contract. Based on the Project complexity, Central San conducted a formal pre -qualification review of general contractors, receiving statements of pre -qualifications from five interested general contractors: Cratus, I nc., J MB Construction, I nc. (J MB), McGuire and Hester, Mountain Cascade, I nc., and Steve P. Rados, August 21, 2023 Special EOPS Committee Meeting Agenda Packet - Page 4 of 15 Page 3 of 13 I nc. The solicitation was publicly advertised on PlanetB ids and shared with bidder exchanges, meeting the notification requirements for public bidding and included a draft of the plans and specifications to allow contractors to understand the challenges within the Project scope. Upon review, all five general contractors were approved to participate in the bidding process. Staff and Carollo prepared the plans and specifications for the Project. This Project was again advertised on August 2, 2023, with the final bid plans and complete list of specifications for the vendors and subcontractors. Three bids, ranging from $2,342,000 to $3,740,000, were received and opened on August 16, 2023. The Engineer's estimate for the construction is $2,500,000. Capital Projects conducted a technical and commercial review of the bids and determined that J MB is the lowest responsive and responsible bidder with a bid amount of $2,342,000. A summary of bids received is shown in Attachment 2. J MB has been pre -qualified and meets the experience, safety, and other requirements. An additive bid item was included in case temporary piping was required under the project. The Engineer's estimate for the additive item is $300,000. The additive bids ranged from $180,000 to $500,000 and JMB priced the work at $180,000. Staff recommends to include the additive item to the Project. Capital Projects staff will provide oversight and construction management of the Project. Carollo will provide technical support and engineering services, and inspection is planned to be conducted by staff or may be supplemented by one of Central San's as -needed consultants. Operations staff will support the Project as required to coordinate shutdowns and testing. California Environmental Quality Act (CEQA) Staff has concluded that this Project is exempt from CEQA under Central San's CEQA Guidelines Section 15302, since it involves replacement of existing public facilities at the same location and with the same purpose. Approval of this Project will establish the Board's independent finding that this Project is exempt from CEQA. ALTERNATIVES/CONSIDERATIONS The Board could consider the following alternatives or provide other direction: 1. Reject all bids which is not recommended. This Project will address the urgent need to replace critical sewer infrastructure. 2. The Capital Improvement Contingency account has adequate budget and could be used to fund the Project; however, it is not recommended since its early in the fiscal year and would deplete the account significantly. The proposed funding source is a program budget used for sewer renovation projects that currently has adequate projected cashflow for the sewer renovation projects planned this fiscal year and for the urgent project. FINANCIAL IMPACTS The total estimated project cost is $3,962,000, which includes staff time, consultant costs, construction contract, contingency, construction management, and other costs detailed in Attachment 3. The Project was initiated under the General Manager's delegated authority for contingency projects at $200,000. The remaining $3,762,000 needed to fully fund the Project will be transferred from the Collection System Sewer Renovation - Phase 2, which has adequate funds in Fiscal Year 2023-24 at $18,500,000 as detailed on page 231 of Central San's Budget. August 21, 2023 Special EOPS Committee Meeting Agenda Packet - Page 5 of 15 Page 4 of 13 COMMITTEE RECOMMENDATION The Engineering and Operations Committee recommended to postpone this subject at the meeting on August 14, 2023 and set a special meeting for August 21, 2023 to discuss this Project after bid opening. The committee recommends of the Project. RECOMMENDED BOARD ACTION Staff recommends the following Board actions: 1. Find that the Project is exempt from CEQA; 2. Award a construction contract in the amount of $2,342,000 to J MB Construction, Inc., the lowest responsive and responsible bidder, for the Martinez Urgent Force Main Replacement, District Project 100066. 3. Include additive bid item for $180,000 for temporary pipelines; 4. Authorize the General Manager to amend an existing Carollo Engineers, Inc. agreement for $400,000, increasing the cost ceiling to $2,900,000, to include engineering services; and 5. Transfer $3,762,000 from the Collection System Sewer Renovation -Phase 2 to fund the Project. Strategic Plan re -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 21, 2023 Special EOPS Committee Meeting Agenda Packet - Page 6 of 15 Page 5 of 13 Martinez Urgent Force Main Replacement District Project 100066 Map Date: 8/2/2023 August 21, 2023 Special EOPS Committee Meeting Agenda Packet - Page 7 of 15 Page 6 of 13 ATTACHMENT 2 MARTINEZ URGENT FORCE MAIN REPLACEMENT DISTRICT PROJECT 100066 SUMMARY OF BIDS PROJECT NO.: 100066 NO. OF ADDENDA: 1 DATE/TIME: AUGUST 16, 2023/2:00 PM PROJECT NAME: MARTINEZ URGENT FORCE MAIN REPLACEMENT PROJECT MANAGER: KEITH GELLERMAN PROJECT LOCATION: 5019 IMHOFF PLACE, MARTINEZ, CA ENGINEER'S ESTIMATE: $2,500,000 NO. BIDDER BID PRICE 1 JMB Construction, Inc. $2,342,000 2 Mountain Cascade, Inc. $3,614,000 3 Cratus, Inc. $3,740,000 BIDS OPENED BY: /s/Eileen Hansen DATE: August 16, 2023 at 2.00 PM August 21, 2023 Special EOPS Committee Meeting Agenda Packet - Page 8 of 15 Page 7 of 13 ATTACHMENT 3 MARTINEZ URGENT FORCE MAIN REPLACEMENT DISTRICT PROJECT NO. 100066 POST-BID/PRECONSTRUCTION ESTIMATE No. Item Description Amounts % Of Construction Cost 1. CONSTRUCTION a. Construction Contract $2,342,000 b. Additive Item - Temporary Pipelines $180,000 c. 25% Contingency $585,000 d. Permits $40,000 SUBTOTAL - CONSTRUCTION COST $3,147,000 100% 2. CONSTRUCTION MANAGEMENT a. District Forces - Construction Management (Engineering, Survey) $100,000 - Public Relations/Right-of-Way $5,000 - Operations $10,000 b. Consultants - Inspection (TBD) $150,000 - ESDC (Carollo) $150,000 - Material Testing/Special Inspection/Others $20,000 SUBTOTAL - CONSTRUCTION MANAGEMENT $435,000 14% 3. PREBID EXPENDITURES a. Engineering (Design, Survey, Right -of -Way, Drafting) $180,000 b. Carollo Final Design (Post bid) $200,000 SUBTOTAL - PREBID EXPENDITURES $380,000 12% 4. TOTAL ESTIMATED PROJECT COST $3,962,000 August 21, 2023 Special EOPS Committee Meeting Agenda Packet - Page 9 of 15 Page 8 of 13 Project Background Martinez Pumping Station (PS) has dual 20-inch, 1- mile long force mains (FMs), that discharge into a gravity structure at the Martinez Refining Company (MRC). In November 2022, staff was notified of a leak on one of the FMs on Union Pacific Railroad's (UPRR) right -of way. The pipe was immediately repaired with a carbon fiber wrap. CCTV on both FMs, as well as visual inspections, showed various stages of corrosion with the aerial and exposed pipelines. Staff hired Carollo Engineers, Inc. (Carollo) to advise on how to fix the FMs since they are currently working on the Martinez PS projects. Staff recommends to replace the last 650 feet of both FMs, of which a portion will require UPRR permits. Work will include temporary repairs or pipelines prior to this wet weather season. .,; •: .fit; Attachment 4 August 21, 2023 Special EOPS Committee Meeting Agenda Packet - Page 10 of 15 1 Page 9 of 13 Martinez PS Force Mains Project Area - Replace both sections of FM r �C 5 _ uFeM it August 21, 2023 Special EOPS Committee Meeting Agenda Packet - Page 11 of 15 2 Page 10 of 13 New Pipeline Design Replace the last 650 feet (13%) of both FMs with fusible PVC to prevent future corrosion issues. Steel casings for the aerial span. Replace all cement -mortar lined pipe between the end of the FMs and an access vault that was installed on Waterfront Park. This will allow for all the work to be completed on and near the UPRR right-of- way and MRC property. Controlled low strength material backfill required and concrete cap or encasement for shallow trenches. Work Completed or in Progress Notified and applied for an encroachment permit with UPRR in May. Waiting for final permit conditions. Coordinating with MRC staff. Pre -qualified five general contractors. Staff and Carollo prepared the plans and specifications for bidding purposes and awa rd. Final design will be completed with the investigation/potholing with the contractor due to the nearby high-pressure gas, fuel pipelines, or other utilities. V L; 0 MARTINEZ REFINERY union PACIFIC kn kO ' \ j �l August 21, 2023 Special EOPS Committee Meeting Agenda Packet - Page 12 of 15 3 Page 11 of 13 Schedule August 2023: Advertise and Bid Opening September 7, 2023: Authorize Budgets and Contractor Awa rd September/October 2023: Issue the Notice to Proceed as soon as possible July 2024: Project Completion An early completion incentive up to $200,000 is being offered to avoid temporary systems and construction management costs. Bids Engineer's Estimate: $2,500,000 No. Bidder Total Bid 1 JMB Construction, Inc. $2,342,000 2 Mountain Cascade, Inc. $3,614,000 3 Cratus, Inc. $3,740,000 Additive bid item for temporary piping for $180,000 August 21, 2023 Special EOPS Committee Meeting Agenda Packet - Page 13 of 15 4 Page 12 of 13 Total Estimated Project Cost Project initiated with $200,000 contingency funds. Remaining funding from the Collection System Sewer Renovation - Phase 2; adequate funds available with no impact to cashflow with scheduled sewer renovation projects. Na. Item Description Amounts %Cff ConstruGion cost 1. CONSTRUCTION a_ Cmstructm Cmtraa 52,3420011 h. AddNve Item - Temporary Pipelines $100:000 a 25% Conbngency $585,000 I Permits "O.DDD SUBTOTAL- GONSTRUCTI ON COST $3,147,0D0 100% 2. CONSTRUCTION MANAGEMENT a. Usinct Forces - Construction Management JEngineesirg. Survey) $100,000 - Public RelatimslRght-af-Way $5,D00 Oper-ato s $1o.Doo h. Consutants - Inspection (TBD) $150,000 - ESDC (CarolloE $150,000 - Material Tesbngl5periaf InspectionlOthers $20,0D0 SUBTOTAL- GONSTRUCTION MANAGEMENT $435.0D0 14% 3. PREBID EXPENDITURES a. Engmn nng (Design, Survey, Right-0f--Way, Draffirg) $180,OD0 h_ CarollD Anal Design (Post hid) $200,000 SUBTOTAL- PREBI D EXPENDITURES 38s D.000 12% 4. TOTAL ESTIMATED PROJECTCOST $3.962.000 Recommended Board Actions Staff recommends the following: Find that the project is exempt from the California Environmental Quality Act; Award a construction contract in the amount of $2,342,000 to JMB Construction, Inc., the lowest responsive and responsible bidder, for the Martinez Urgent Force Main Replacement, District Project 100066; Include additive bid item for $180,000 for temporary pipelines; Authorize the General Manager to amend an existing Carollo Engineers, Inc. agreement for $400,000, increasing the cost ceiling to $2,900,000, to include engineering services; and Transfer $3,762,000 from the Collection System Sewer Renovation - Phase 2 to fund the Project. August 21, 2023 Special EOPS Committee Meeting Agenda Packet - Page 14 of 15 5 Page 13 of 13 Questions? August 21, 2023 Special EOPS Committee Meeting Agenda Packet - Page 15 of 15 6