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HomeMy WebLinkAbout04.b. Approve a $600,000 Contingency Project for the Lake Cascade Sewer Relcation in Orinda; Adopt Resolution 2024--XXX; Execute a Contract Change Order for $312,000 with Precision Engineering, Inc.; Find the Project Exempt from CEQAPage 1 of 13 Item 4.b. CDr EENI RAL SAN BOARD OF •' �J POSITION PAPER CENTRAL CONTRA COSTA SANITARY DISTRICT � � • MEETING DATE: FEBRUARY7, 2024 SUBJECT: REVIEW DRAFT POSITION PAPER TO APPROVE A $600,000 CONTINGENCY PROJECT FOR THE LAKE CASCADE SEWER RELOCATION IN ORI NDA; ADOPT RESOLUTION NO. 2024-XXX MAKING FINDINGS AND AUTHORIZING THE GENERAL MANAGER UNDER PUBLIC CONTRACT CODE SECTIONS 20806 AND 22050 (B) TO EXECUTE A CONSTRUCTION CONTRACT CHANGE ORDER IN THE AMOUNT NOT TO EXCEED $312,000 WITH PRECISION ENGINEERING, INC.;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- SASHA MESTETSKY, SENIOR ENGINEER CAPITAL PROJECTS REVIEWED BY: EDGAR J. LOPEZ, CAPITAL PROJECTS DIVISION MANAGER GREG NORBY, DEPUTY GENERAL MANAGER - OPERATIONS J. LEAH CASTELLA, DISTRICT COUNSEL ROGER S. BAILEY, GENERAL MANAGER ISSUE Authorization from the Board of Directors (Board) is required to include a contingency project in the Capital Improvement Program or execute a construction contract change order for an amount greater than $200,000. Board authorization is also required under Public Contract Code Sections 20806 and 22050, Emergency Contracting Procedures to replace public facilities without giving public notice of bids. BACKGROUND Central San owns and maintains a sewer located in private easements at the Orinda Country Club (Club) and adjacent to Lake Cascade in Orinda. This sewer, originally installed in the early 1950s, is an 8-inch cement -lined steel pipe with mortar coatings, aerial, and built on the side of the Lake's dam. The sewer is routinely inspected since it's an aerial crossing with a high consequence of failure as any leak would immediately enter the privately owned Lake. February 7, 2024 EOPS Regular Committee Meeting Agenda Packet - Page 20 of 60 Page 2 of 13 The Club has a project to renovate their tennis courts, which staff reviewed and identified an easement encroachment, resulting in a Real Property Agreement authorized by the Board on July 7, 2022. As a part of the Club's project, a grandstand is to be installed over the existing Central San sewer. Capital Projects has identified the sewer for replacement or rehabilitation within the next three to five years. Therefore, staff contacted the Club to discuss Central San's plans to renovate the public sewer and review the Club's improvements to find beneficial solutions. Capital Projects has spent the last several months determining the best alternative would be to relocate a portion of the existing sewer that conflicts with the proposed grandstand and install a new sewer at a different location on the property. The sewer relocation would allow for the abandonment of the aerial sewer crossing at Lake Cascade. Overall, the scope of work required would consist of installing 560 feet of 8-inch sewers by open cut and directional drilling, and abandoning approximately 600 feet of existing sewers and related structures as shown in Attachment 1. The abandonment of the sewer on Lake Cascade will be done separately as the work requires regulatory permits by the Division of Safety of Dams. Staff is in the process of obtaining the required permit, however, plans on proceeding with the relocation of the new sewer as to not impact the Club's project and timeline. Prior to relocation, Central San and the Club would need to agree with the easement exchanges and finalize the coordination efforts. To date, the Club has been very cooperative and willing to enter into an agreement. They have requested that the work be completed soon, around April of this year, to minimize the construction work impacts to their members and to avoid conflicts with construction at the tennis courts. Staff has been working quickly to design and receive pricing for the relocation work. Due to the short timelines required, staff recommends performing the work under a construction contract change order with a qualified general contractor hired to do the same type of scope within Central San. Formal proposals were sent to three general contractors. The engineer's estimate for the sewer relocation is $350,000; two bids were received. The lowest cost was $312,000 from Precision Engineering, Inc., the contractor working on the Downtown Walnut Creek Sewer Renovations — Locust, District Project (DP) 100049. The second bid was approximately $379,000. 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 impact -limiting 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 Board could consider the following alternatives or provide other direction: Alternative 1 — Do not approve a contingency project or construction contract change order to perform the work under staff's proposed timeline. This alternative would delay the construction improvements and allow staff to provide notice of public bids for the work under a separate project, which is not recommended for several reasons, including negative impacts to the public and Club, or additional costs to either party. February 7, 2024 EOPS Regular Committee Meeting Agenda Packet - Page 21 of 60 Page 3 of 13 If this alternative is selected, the earliest time the work could be theoretically completed would be in late summer or fall of this year without any bidding or contract delays or coordination constraints. Alternative 2 — Consider working with the Club to include the sewer work under their project, which would be paid for by Central San and allow for better coordination and work efficiencies. This alternative was considered by staff, however, not pursued due to the construction method selected (directional drilling) and expertise needed for the work. The new alignment is within the parking lot areas and through two hillsides, open trenching would be difficult, costly, and not recommended with depth required for the new sewer. Staff has been overseeing directional drilling contractors and projects for many years, and has the expertise required to manage the construction activities. Making this request or condition of the Club's project is not practicable. Therefore, staff recommends a contingency project for the sewer relocation work and authorizing a construction contract change order since the pricing is very competitive and below Central San's estimate for the work. FINANCIAL IMPACTS The total estimated cost for this contingency project is $600,000 which includes design, contractor costs, permits, construction management, and contingency as shown in Attachment 2. The project will be funded by the Collection System Sewer Renovation — Phase 2, DP 100039, which is shown on page 231 of the Fiscal Year 2023-24 Budget and has adequate budget available. A transfer of $600,000 will be completed after the contingency project is authorized by the Board. COMMUNITY OUTREACH Central San staff has been and continues to coordinate the sewer improvements with the Club and others. COMMITTEE RECOMMENDATION The Engineering and Operations Committee reviewed this matter at its February 7, 2024 meeting and recommended RECOMMENDED BOARD ACTION Staff recommends the following: 1. Approve a contingency project in the amount of $600,000 for the Lake Cascade Sewer Relocation Project in Orinda; and 2. Adopt proposed Resolution No. 2024-XXX making findings and authorizing the General Manager under Public Contract Code Sections 20806 and 22050(b) to execute a construction contract change order with Precision Engineering, Inc. in the amount not to exceed $312,000; and 3. Authorize a transfer of $600,000 from the Collection System Sewer Renovation — Phase 2, DP 100039 to fund the project; and 4. Find that the project is exempt from CEQA. February 7, 2024 EOPS Regular Committee Meeting Agenda Packet - Page 22 of 60 Page 4 of 13 Strategic Plan Tie -In 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 1 - Manage assets optimally ATTACHMENTS: 1. Project Location Map 2. Post-B id/P reconstruction Estimate 3. Proposed Resolution 4. Presentation February 7, 2024 EOPS Regular Committee Meeting Agenda Packet - Page 23 of 60 Page 5 of 13 Lake Cascade Sewer Relocation in Orinda Map Date: 1/19/2024 69E3-M75 � 1 DETAIL ac` �0 1 p 1 69E3-M59 ��F 11 69E3-SV92 1 �� 1 69E3-M64 m �o co 1 1 UHF 1 0 e ► 69E3-M110 � 1 Feet 1 1 69E3-M95 Orinda Country Club 1 IE3-M59 69E3-SV92 etail A O Orinda Orinda 69E3-M54 Country a 69E3-M97 Club IM Pool R. Q Manhole OZ System Valve Sewer Main 0 Tax Parcel Construction Method Construct New Sewer Main Remove/Abandon Existing Sewer Main 69E3-M98 69E3=M55 o itMiles� Lake Cascade 69E3-M53 via No a: Map Central San data as of January, 2024. I 0 Feet 100 I CalifornialSta eayed lPlane, Zone III FI S O403 n North American Datum fUS Feet I Attachment February 7, 2024 EOPS Regular Committee Meeting Agenda Packet - Page 24 of 60 Page 6 of 13 ATTACHMENT 2 LAKE CASCADE SEWER RELOCATION DISTRICT PROJECT (TBD) POST-BID/PRECONSTRUCTION ESTIMATE No. Item Description Amounts % Of Construction Cost 1. CONSTRUCTION a. Construction Contract Change Order $312,000 b. 20% Contingency $62,000 c. Future Abandonment $100,000 d. Permits $30,000 SUBTOTAL - CONSTRUCTION COST $504,000 100% 2. CONSTRUCTION MANAGEMENT a. District Forces - Construction Management (Engineering, Survey) $20,000 - Public Relations/Right-of-Way $4,000 - Operations (CSO) $2,000 b. Consultants - Inspection $24,000 - Material Testing/Geotech/Arborist/Others $8,000 SUBTOTAL - CONSTRUCTION MANAGEMENT $58,000 12% 3. PREBID EXPENDITURES a. Engineering (Design, Survey, Right -of -Way, Drafting) $38,000 SUBTOTAL - PREBID EXPENDITURES $38,000 8% 4. TOTAL ESTIMATED PROJECT COST $600,000 February 7, 2024 EOPS Regular Committee Meeting Agenda Packet - Page 25 of 60 Page 7 of 13 ATTACHMENT 3 RESOLUTION NO. 2024- A RESOLUTION OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT CONFIRMING AND DECLARING PUBLIC CONTRACTING EMERGENCY AND NEED FOR EMERGENCY EXPENDITURE OF FUNDS TO REPAIR / REPLACE LAKE CASCADE SEWER SYSTEM AT THE ORINDA COUNTRY CLUB WHEREAS, a capital improvements project, Lake Cascade Sewer Relocation, Project, was identified in the Collection System Sewer Renovation, Phase 2, District Project 100039 and included in the Fiscal Year (FY) 2023-24 budget for design and construction to occur during the FY 2023-24 period; WHEREAS, by June of 2023, the District was notified of upcoming construction activities at the Orinda Country Club (Club) encroaching on an existing sewer easement; WHEREAS, the District's Board of Directors (Board) authorized a Real Property Agreement on July 7, 2023 for the encroachment; WHEREAS, the District determined that relocation of the sewer is feasible and designed new sewers totaling 560 feet and resulting in abandoning the existing sewers and structures; WHEREAS, the sewer relocation will require easement exchanges prior to the work with the Club and the site is already under construction and the sewer work is expected in April of this year; WHEREAS, given the deficiencies in the sewer within Lake Cascade and the potential for an inoperable sewer system as the assets near the end of their useful life, and the resultant potential to affect the health and safety of the community and the possible impact to District facilities, the Board of Directors has determined that an emergency exists and the necessary steps must be taken to meet the emergency and commence the repair process while other Club construction activities are already underway; WHEREAS, compliance with competitive bidding procedures typically takes a number of months and would not allow prompt action to be taken, as required to safeguard the public and District facilities; WHEREAS, this situation has arisen suddenly and unexpectedly, and involves a clear and imminent threat, demanding immediate action to prevent or mitigate loss of, or damage to, life, health, property, and essential public services; and WHEREAS, section 20806 of the Public Contract Code provides that if there is an emergency, the district board may pass a resolution by a four -fifths vote of its members declaring that the public interest and necessity demand the immediate expenditure of district funds to safeguard life, health, or property and that upon adoption of such a February 7, 2024 EOPS Regular Committee Meeting Agenda Packet - Page 26 of 60 Page 8 of 13 Central Contra Costa Sanitary District Resolution No. 2024- Page 2 of 3 resolution, it may expend any sum required in the emergency without complying with the requirements of Public Contract Code Article 52; and WHEREAS, section 22050 of the California Public Contract Code provides that in cases of emergency and pursuant to a four -fifths vote, the Board of Directors may repair or replace a public facility, take any directly related and immediate action required by that emergency, and procure the necessary equipment, services, and supplies for those purposes, without giving notice for bids to let contracts; and WHEREAS, Public Contract Code section 22050 further provides that in cases of emergency and pursuant to a four -fifths vote, the Board of Directors may also delegate the authority to procure the necessary equipment, services, and supplies to a specified and appropriate District manager; WHEREAS, the California Environmental Quality Act establishes a statutory exemption for emergency repairs to public service facilities necessary to maintain service, and other specific actions necessary to prevent or mitigate an emergency; and WHEREAS, bids were requested from three sewer contractors and two bids were received, with the lowest bid being competitive and below the Engineer's estimate. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Central Contra Costa Sanitary District (Board) as follows: THAT the Board finds, pursuant to Public Contract Code sections 20806 and 22050(a), that based on substantial evidence presented before the Board, the emergency will not permit a delay resulting from competitive solicitation for bids for the repair of the District's Lake Cascade Sewer System, and that this action is necessary to respond to the emergency; THAT the Board authorizes staff to proceed with the repair or replacement of the Lake Cascade Sewer System and procurement of the necessary equipment, services and supplies for that purpose without giving notice for bids to let contracts; THAT the General Manager is authorized to execute a construction contract change order with Precision Engineering, Inc. to be funded out of the Collection System Sewer Renovation, Phase 2; THAT District staff will proceed to obtain all necessary regulatory authorizations for the repair on an expedited basis using all available emergency procedures; THAT District staff will request all governmental entities with authority over this repair to expedite their consideration of the matter and to use available emergency procedures to ensure that this repair is completed in a timely manner so as to avoid the harms that would result from a catastrophic failure of the system; and February 7, 2024 EOPS Regular Committee Meeting Agenda Packet - Page 27 of 60 Page 9 of 13 Central Contra Costa Sanitary District Resolution No. 2024- Page 3 of 3 THAT the Board will review the status of the emergency at each subsequent meeting of the Board of Directors and vote to authorize continuation of this Resolution until the emergency action is completed. PASSED AND ADOPTED this 22nd day of February 2024, by the Board of Directors of the Central Contra Costa Sanitary District by the following vote (4/5 vote required for passage): AYES: Members: NOES: Members: ABSTAIN: Members: Mariah N. Lauritzen President of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California COUNTERSIGNED: Katie Young, CPMC, CIVIC Secretary of the District Central Contra Costa Sanitary District County of Contra Costa, State of California Approved as to form: J. Leah Castella, Esq. Counsel for the District February 7, 2024 EOPS Regular Committee Meeting Agenda Packet - Page 28 of 60 Page 10 of 13 February 7, 2024 LAKE CASCADE SEWER RELOCATION Engineering & Operations Committee Meeting Edgar J. Lopez, P.E. Capital Projects Division Manager Sasha Mestetsky, P.E. Senior Engineer Background Existing aerial 8" sewer crossing that runs along the edge of Lake Cascade The Orinda Country Club (Club) has a project to build stands for their tennis courts and other improvements Central San has plans to renovate the sewer and coordinate a new sewer location with the Club's project 2 ATTACHMENT 4 69E3-SV92 z" t _ t �! � r 690-1464 .' Area Crmk ,Mail Walnut. t a y t 69E3-M110 hM tt Mo2ga IG ` — 69E3-1459 69E3-M95 69E3-SV92 Came re�,e fig -M 115 Lake Cascade Orinda Country Club Valves Orinda Country Club Pool 69E3-M98 69E3-M53 February 7, 2024 EOPS Regular Committee Meeting Agenda Packet - Page 29 of 60 1 Page 11 of 13 Sewer Relocation Multi -phased approach First phase is construction of a new 8" sewer Completion of the first phase allows for the Club to relocate their side sewer and continue with their project Second phase is removing/abandoning the existing sewer and structures Pricing Received A Request for Proposal was issued to several general contractors Two proposals were received Results of proposals: Engineer's Estimate: $350,000 No. Bidder Total Bid 1 Precision Engineering, Inc. $312,000 2 Devaney Engineering, Inc. $379,000 February 7, 2024 EOPS Regular Committee Meeting Agenda Packet -Page 30 of 60 Page 12 of 13 Total Estimated Project Cost No. Item Description Amounts % of Construction Cost 1. CONSTRUCTION a. Construction Contract Change Order $312,000 b. 20 % Contingency $62,000 c. Future Abandonment $100,000 d. Permits $30,000 SUBTOTAL - CONSTRUCTION COST $504,000 100`:<: 2. CONSTRUCTION MANAGEMENT a. District Forces - Construction Management (Engineering, Survey) S20,000 - Public RelatiorslRight-of-Way $4,000 - Operations (CSO) $2,000 b. Consultants -Inspection 524,000 - Material Testing/Geotech/Arborist/Others $8,000 SUBTOTAL - CONSTRUCTION MANAGEMENT $58,000 1246 3. PREBID EXPENDITURES a. Engineering (Design, Survey, Right -of -Way. Drafting) $38,000 SUBTOTAL - PREBID EXPENDITURES $38,000 8'=' 4. TOTAL ESTIMATED PROJECT COST $600,000 Recommended Board Action Staff recommends the following: 1. Find that the project is exempt from the California Environmental Quality Act: 2. Approve a contingency project in the amount of $600,000 for the Lake Cascade Sewer Relocation Project in Orinda; Adopt Resolution No. 2024- making findings and authorizing the General Manager under Public Contract Code Section 22050 (b) to execute a construction contract change order with Precision Engineering, Inc. in the amount not to exceed $312,000; and Authorize a transfer of $600,000 from the Collection System Sewer Renovation — Phase 2, District Project 100039, to fund the project. February 7, 2024 EOPS Regular Committee Meeting Agenda Packet - Page 31 of 60 3 Page 13 of 13 February 7, 2024 EOPS Regular Committee Meeting Agenda Packet - Page 32 of 60