HomeMy WebLinkAbout11. Award a construction contract in the amount of $4,112,000 to Precision Engineering, Inc., the lowest responsive and responsible bidder, for the Downtown Walnut Creek Sewer Renovations - Locust, District Project 100049Page 1 of 14
Item 11.
DCENTRALSAN
MEETING DATE: SEPTEMBER 7, 2023
BOARD OF DIRECTORS
POSITION PAPER
SUBJECT: AWARD A CONSTRUCTION CONTRACT IN THE AMOUNT OF
$4,112,000 TO PRECISION ENGINEERING, INC., THE LOWEST
RESPONSIVE AND RESPONSIBLE BIDDER FOR THE DOWNTOWN
WALNUT CREEK SEWER RENOVATIONS - LOCUST, DISTRICT PROJECT
100049; AND FIND THAT THE PROJECT IS EXEMPT FROM THE
CALIFORNIA ENVIRONMENTAL QUALITYACT (CEQA)
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
GREG NORBY, DEPUTY GENERAL MANAGER - OPERATIONS
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.
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 (EB MUD) and the City of Walnut Creek (City), as well as other utilities, businesses, and private
property owners.
September 7, 2023 Regular Board Meeting Agenda Packet - Page 65 of 160
Page 2 of 14
This Project will replace up to 4,400 feet of small diameter sewers, maintenance access structures, and
other related sewer infrastructure within public right-of-way and in one private easement. The existing 6- to
8 -inch diameter clay sewers will be upsized to 10 -inch PVC due to the commercial application for the
public sewers. Central San staff prepared the plans and specifications for the Project. Construction
primarily consists of open -trench methods, and an overview map of the Project location 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 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. A summary of the bids received is shown in Attachment 2.
The sewers being replaced under the Project predates the formation of Central San in 1946. Thus, the
public sewers and many of the private side sewers (laterals) were built prior to any Central San design
standards. The public sewers on and near Locust Street have been maintained and cleaned on a monthly
schedule since the 2000's due to fats, oil, and grease (FOG) problems. Prior to the monthly cleaning,
Central San had numerous sewage overflows throughout the project location at every maintenance access
structure due to FOG. Central San has worked with the businesses and property owners for over two
decades and although improvements for FOG control and private maintenance have been done, the public
sewers still require routine and monthly cleaning efforts.
The Collection System Operations Division is responsible for cleaning the public sewers and the City's
permit and traffic restrictions require that sewer cleaning or maintenance be completed outside of normal
business hours. The costs to maintain the sewers are significant when staff time, including overtime, the
use of equipment or specialty vehicles, and cleaning frequency are considered.
Therefore, the Project design includes improved sewer hydraulics and aimed for commercial and
restaurant applications. As part of the improved hydraulics and profile change to Central San's new
sewers, additional replacement of the lower lateral is required. Under typical renovation projects, Central
San will reconnect the lateral and replace limited or short distances of the lateral in order to properly realign
the lateral. However for this Project, the impacts of the sewer design will increase the replacement of the
lower lateral to distances up to the edge of the public right-of-way (up to 30 feet). This modification will also
require Central San to upgrade the lower lateral to current standards for the laterals which are not in
compliance. There are roughly 60 commercial laterals impacted by this project, of which up to 40 are not
up to code and are 4 -inch diameter in size and more than 75 years of age. The current minimum diameter
for a commercial lateral is 6 -inches. The improvements on the lower laterals will also help with FOG as the
design goal is to provide a sewer 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 and in-house staff when needed.
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
September 7, 2023 Regular Board Meeting Agenda Packet - Page 66 of 160
Page 3 of 14
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.
One alternative with the lower laterals is noted below or the Board can provide other direction or input:
1. Provide the standard approach for lower laterals, 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 any additional
replacement at their costs.
The additional costs for the lower laterals is estimated at $300,000 which includes up to 40 commercial
properties and new clean outs on the public right-of-way. There are significant benefits to Central San for
the additional lower lateral replacement as designed and also benefits to the City for future street impacts
and a reliable lower lateral to code for the commercial properties.
FINANCIAL IMPACTS
The total estimated project cost is $6,335,000 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 25 -percent Project contingency due to its complexities and to cover any
expenses related to unknown conditions. Sewer renovation projects normally carry a 15 -percent
contingency, which includes the potential to include additional sites or urgent work as requested by Central
San. The additional contingency amount for this Project is recommended since the commercial area is
very dense and congested with critical utilities. Conflicts will need to be resolved in a timely manner and the
overall sewer improvements must be completed on schedule to meet the City's project.
COMMUNITY OUTREACH
Central San staff did extensive outreach to prepare the affected commercial establishments and property
owners for the upcoming construction work. I nitial 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
other questions or concerns. To date, all questions and concerns received have been answered and
addressed.
September 7, 2023 Regular Board Meeting Agenda Packet - Page 67 of 160
Page 4 of 14
Additional outreach will be conducted after award to notify the businesses and property owners related to
the lower lateral work and the Central San financing for the upper lateral or private sewer improvements.
Central San will warranty the work for up to a year after project acceptance and ownership of the laterals
(upper and lower) will continue to be the responsibility and ownership of the property owners.
COMMITTEE RECOMMENDATION
The Engineering and Operations Committee reviewed this matter at its August 14, 2023 meeting and
recommended Board approval.
RECOMMENDED BOARD ACTION
Staff recommends the following:
1. Find that the Project is exempt from CEQA; and
2. 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.
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-Bid/P reconstruction Estimate
4. Presentation
September 7, 2023 Regular Board Meeting Agenda Packet - Page 68 of 160
Page 5 of 14
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 1953 I Attachment
Central San data as of July 2023. Feet California State Plane, Zone III FIPS 0403, US Feet 1
September 7, 2023 Regular Board Meeting Agenda Packet - Page 69 of 160
Page 6 of 14
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.
$4,112000
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
September 7, 2023 Regular Board Meeting Agenda Packet - Page 70 of 160
DATE: August 8, 2023
Page 7 of 14
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. 25% Contingency
$1,028,000
c. Permits
$60,000
SUBTOTAL - CONSTRUCTION COST
$5,200,000
100%
2.
CONSTRUCTION MANAGEMENT
a. District Forces
- Construction Management (Engineering, Survey)
$220,000
- Public Relations/Right-of-Way
$70,000
- Lateral Inspection
$60,000
- Operations (CSO)
$25,000
b. Consultants
- General Inspection
$200,000
- Material Testing/Arborist/Others
$60,000
SUBTOTAL - CONSTRUCTION MANAGEMENT
$635,000
12.2%
3.
PREBID EXPENDITURES
a. Engineering (Design, Survey, Right -of -Way, Drafting)
$500,000
SUBTOTAL - PREBID EXPENDITURES
$500,000
9.6%
4.
TOTAL ESTIMATED PROJECT COST
$6,335,000
September 7, 2023 Regular Board Meeting Agenda Packet - Page 71 of 160
Page 8 of 14
September 7, 2023
Detail
Area
Attachment 4
CREEK RENOVATIONS; Ire
DISTRICT--O►� �
100049 _2.
Board of Directors Meeting
Damasio Zepeda, P.E.
Associate Engineer
September 7, 2023 Regular Board Meeting Agenda Packet - Page 72 of 160
Project Background
and Drivers
Replace approximately 4,400 feet of small
diameter sewers (6- to 8 -inch clay pipes) by
open -trench construction methods. New
sewers are 10 -inch PVC.
Public sewers are being maintained on a
monthly schedule since 2000's and require
cleaning to be performed outside of normal
business hours.
Project Coordination
City of Walnut Creek's Paving and
Infrastructure Improvements Project
East Bay Municipal Utility District's
Improvement Project
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 gas, water, electric, storm,
telecommunication, etc.
Contract work is in a 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
I
Page 9 of 14
• M
September 7, 2023 Regular Board Meeting Agenda Packet - Page 73 of 160 2
Page 10 of 14
Private Side Sewer (Lateral):
\�o
�y
a
Sewer Q�pQ
Clean- I Public
out � Right -of -Way
District's
t 1 Project
L seal Contractor/oWnor !
1
Licensee
Cona+ctor
I
:::Upper Lateral Lower Lateral Sewer Main
Special Circumstances and Project Design
Project proposes to replace the lower lateral as needed:
Replace lower laterals up to approximately 30 feet in public right-of-
way (ROW)
New public sewers will be installed deeper and adjustments on
laterals are needed. Lower laterals will be installed to code (6 -inch
minimum for commercial) and clean outs as required
Roughly 40 laterals will be upgraded due to project
Several lateral connections are inactive and will be abandoned after
verification
Staff included the lower lateral replacement in the public ROW to best
design and remediate the sewer issues
September 7, 2023 Regular Board Meeting Agenda Packet - Page 74 of 160 3
Outreach to Businesses and City
Staff will directly notify businesses of the work and the following:
Reasons for and impacts related to the sewer improvements
Schedule, work hours, and project contacts
Central San shall provide a standard one-year warranty on lower
laterals, and work does not relieve property owners from lateral
responsibilities and ownership
Offer to meet individually with owners or businesses
Offer financing or other opportunities for properties willing to
upgrade the remaining lateral outside the public ROW or other
private sewer improvements
City may request a Joint Powers Agreement for similar lateral
replacement
Summary of Bids
Engineer's Estimate: $5,000,000
NO.
BIDDER
BID PRICE
Precision Engineering, Inc.
$4,112,060
San Francisca, 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
JEv113 Construction, Inc.
$4.897.850
South San Francisco, California
5
Cratus, Inc.
$5.464.680
San Francisco, California
S
Basset Engineering
$5,631,414
San Francisco, California
7
Glosage Engineering, Inc.
$6,437,632
Richmond, Califomia
$
Mitchell Engineering
$6,640,620
San Francisca, California
A&B Construction, Inc.
$7,373MD
Oakland. California
Page 11 of 14
September 7, 2023 Regular Board Meeting Agenda Packet - Page 75 of 160 4
Page 12 of 14
Financial Impact of 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
Total Estimated Project Cost
No.
Item Description
Amounts
Of
Construction
Cost
1.
CONSTRUCTION
a_ Construction Contra!
$4,112,000
b_25% Contingency
$1,028,000
c. Permits
$50,000
SUBTOTAL - CONSTRUCTION COST
$5,200.000
1001
2.
CONSTRUCTION MANAGEMENT
a. Di stri d Farces
Construction Management (Engineering, Survey)
$220,000
Public RelationsfRight-of-Way
$70,000
- Lateral Inspection
$50,000
Operations (CSO)
$25,000
b. Consultants
General Inspection
$200,000
Material TestinglArbcristl(tthers
$60.000
SUBTOTAL - CONSTRUCTION MANAGEMENT
$635,000
122
3.
PREBID EXPENDITURES
a_ Engineering {Design, Survey, Right -of -Way, Drafting)
$500.000
SUBTOTAL - PREBID EXPENDITURES
$500000
9.5
4.
TOTAL ESTIMATED PROJECT COST
$6,335,000
September 7, 2023 Regular Board Meeting Agenda Packet - Page 76 of 160 5
Engineering and Operations
Committee:
The Committee met on August 14,
2023, and recommended approval
of the project
Staff added additional project
contingency due to the
construction complexity and for
unknowns
Recommended Board Action:
Staff recommends the following:
Page 13 of 14
I Find that the project is exempt from the California
Environmental Quality Act; and
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.
September 7, 2023 Regular Board Meeting Agenda Packet - Page 77 of 160 6
Page 14 of 14
Questions?
September 7, 2023 Regular Board Meeting Agenda Packet - Page 78 of 160