CC 2014-08-12_08.n. Award Contract - Waterline ProjectMEMORANDUM
TO: CITY COUNCIL
FROM: GEOFF ENGLISH, PUBLIC WORKS DIRECTOR
BY: MIKE LINN, CAPITAL PROJECTS ENGINEER
SUBJECT: CONSIDERATION OF AN AWARD OF CONTRACT TO V. LOPEZ JR. &
SONS GENERAL ENGINEERING CONTRACTORS, INC. FOR
CONSTRUCTION OF THE LEANNA DRIVE CREEK CROSSING
WATERLINE PROJECT, PW 2013-11 AND AN AMENDMENT TO
CONSULTANT SERVICES AGREEMENT WITH CANNON
CORPORATION FOR INSPECTION AND MONITORING
DATE: AUGUST 12, 2014
RECOMMENDATION:
It is recommended the City Council:
1. Award a contract for the subject project to V. Lopez Jr. & Sons General
Engineering Contractors, Inc. in the amount of $165,578;
2. Authorize the City Manager to approve change orders for 20% of the contract
amount, $33, 116 for unanticipated costs during the construction phase of the
project (total construction costs= $165,578 + $33,116 = $198,694); and
3. Approve a First Amendment to the Agreement for Consultant Services with
Cannon Corporation to increase the "not to exceed" amount by $30,900 to
perform inspection and environmental monitoring services during construction
operations.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
The 2014/2015 Capital Improvement Program Budget includes $372,200 for
construction of the subject project. The engineer's estimate for the project is $275,000.
The budget also includes $37 ,300 for inspection services and $37 ,200 for
contingencies.
BACKGROUND:
This project was identified in the 2012 Water System Master Plan as the highest priority
project. The existing 8" cast iron pipe encased in concrete was installed in 1960 under
the Arroyo Grande Creek bed. The water main encasement has now been exposed to
creek flow completely and is subject to cracking and failure. A sewer force main was
Item 8.n. - Page 1
CITY COUNCIL
CONSIDERATION OF AN AWARD OF CONTRACT TO V. LOPEZ JR & SONS GENERAL
ENGINEERING CONTRACTORS, INC. FOR THE LEANNA DRIVE CREEK CROSSING
WATERLINE PROJECT PW 2013-11
AUGUST 12, 2014
PAGE2
also installed next to the water main and the encasement has broken and failed. The
force main was abandoned in place in 1970.
On October 8, 2013, the City Council approved a consultant services agreement with
the Cannon Corporation to perform design and environmental permitting services for the
project. The Cannon Corporation designed an abandonment of the existing 8" water
main and concr~te encasement and replacement with a new HOPE main, which will be
installed using horizontal directional drilling (HOD) under the creek.
ANALYSIS OF ISSUES:
On July 29, 2014, nine bids were opened for the Leanna Drive Creek Crossing
Waterline Project (see Attachment No. 1). The lowest bid, $165,578 was received from
V. Lopez Jr. & Sons General Engineering Contractors, Inc. Staff has satisfactorily
reviewed the bid documentation and recommends award of a construction contract to V.
Lopez Jr. & Sons General Engineering Contractors, Inc. accordingly.
Due to limited staff resources and the unique technical requirements of the project, staff
requested a proposal from the design engineer, Cannon Corporation, to provide
inspection and environmental monitoring services during the construction operations.
Staff has satisfactorily reviewed the $30,900 proposal, incorporated it into First
Amendment for the Consultant Agreement, and recommends approval by Council (see
Attachment No. 2).
The contract time is 90 calendar days. Work is expected to begin in September and
complete in November.' All construction work involving the crossing of Arroyo Grande
Creek is specified to complete by October 15, 2014 to comply with environmental
regulations.
ALTERNATIVES:
The following alternatives are provided for the Council's consideration:
1. Approve staff's recommendations to award a construction contract to V. Lopez
Jr. & Sons General Engineering Contractors, Inc. for the Leanna Drive Creek
Crossing Waterline Project and the First Amendment for Consultant Services to
Cannon Corporation;
2. Do not award a construction contract nor the First Amendment for the project; or
3. Provide direction to staff.
ADVANTAGES:
The replacement of the exposed main by HOD under the creek bed will provide our
distribution system the required reliability. This will eliminate the chance of the existing
main breaking and leaking vast amounts of chloraminated water into the creek.
Item 8.n. - Page 2
CITY COUNCIL
CONSIDERATION OF AN AWARD OF CONTRACT TO V. LOPEZ JR & SONS GENERAL
ENGINEERING CONTRACTORS, INC. FOR THE LEANNA DRIVE CREEK CROSSING
WATERLINE PROJECT PW 2013-11
AUGUST 12, 2014
PAGE3
DISADVANTAGES:
There are no disadvantages identified at this time.
ENVIRONMENTAL REVIEW:
On May 27, 2014, the City Council approved a Mitigated Negative Declaration for the
subject project.
PUBLIC NOTIFICATION AND COMMENTS:
The agenda was posted at City Hall on Thursday, August 7, 2014. The agenda and
staff report was posted on the City's website on Friday, August 8, 2014. No public
comments were received as of the time of preparation of this report.
Attachment:
1. Bid Tabulations
Item 8.n. - Page 3
CONSULTANT SERVICES AGREEMENT
AMENDMENT NO. 1
This First Amendment ("First Amendment") to Consultant's Services Agreement ("CSA")
by and between the CITY OF ARROYO GRANDE and CANNON CORPORATION is
made and entered into this day of August 2014, based on the following facts:
WHEREAS, the parties entered into a CSA dated October 8, 2013, for design and
environmental services for the Leanna Drive Creek Crossing Waterline Project, PW
2013-11.
NOW THEREFORE, for the good and valuable consideration, the receipt and
sufficiency of which is acknowledged, the parties agree that the CSA is in full force and
effect, and subject to the new terms and conditions set forth below:
1. Extend the term of the CSA to expire on December 31, 2014.
2. Increase the not-to-exceed cost of the CSA from $83,508 to $114,408.
3. Include a new scope of work set forth in Exhibit "A" attached hereto and
incorporated herein by this reference.
4. Except as modified herein, all other terms and conditions set forth in the CSA, as
amended, shall remain unchanged.
IN WITNESS WHEREOF, CITY and CONSUL TANT have executed this First
Amendment the day and year first set forth above.
CITY OF ARROYO GRANDE
By: ____________ _
TONY FERRARA, MAYOR
ATTEST:
KELLY WETMORE, CITY CLERK
APPROVED AS TO FORM:
TIMOTHY J. CARMEL, CITY ATTORNEY
CONSULTANT
CANNON CORPORATION
Item 8.n. - Page 4
(cannon
August4,2014
Mr. Geoff English
City of Arroyo Grande
1375 Ash Street
Arroyo Grande, CA 93420
PROJECT: LEANNA DRIVE CREEK CROSSING WATERLINE PW 2013·11
CONSTRUCTION SUPPORT SERVICES
Dear Mr. English:
(via email)
In response to your request, we are pleased to submit this Additional Services Agreement (ASA) to
provide construction engineering services to the City for the above-referenced project.
BACKGROUND
Cannon was selected to design a water pipeline to cross the Arroyo Grande Creek to replace an existing
pipeline that has become exposed in the creek. Our design team included Rincon for environmental
support, and Earth Systems for geotechnical support. The construction documents for the project have
been approved by the City and are ready for soliciting bids.
It is anticipated that construction of the new water system improvements should commence sometime in
September when the Streambed Alteration Agreement permit is approved. Horizontal Directional Drilling
(HOD) will be utilized to install the pipeline crossing, and a team with this type of construction experience
is needed to ensure the project is constructed in an acceptable manner. Cannon has the experience and
expertise to provide observation and inspection for this type of work. The work will also be constructed in
an easement granted to the City, so we will be working closely with the adjacent property owners for
access and outreach. Cannon staff has already been in contact with these property owners, and has a
good rapport with them as it relates to this project. Based on this involvement and experience, it has
been requested that we provide construction support services to assist in the completion of your project.
In our original proposal we allowed for the following tasks. These will not be included in this proposal, as
we already have budget set aside for these tasks in our contract.
Task 11 -Respond to RFl's
Task 12-Design Changes to Resolve Field Conditions
Task 13-Record Drawings
130716
EXHIBIT A
Item 8.n. - Page 5
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SCOPE OF WORK
Proposal: Leanna Dr Creek Crossing Water Line
Construction Support Services
Request for Additional Services
Construction support services will include interacting with the contractor and City, as well as with adjacent
property owners. In addition to the tasks above, we will review submittals, conduct observation, perform
quality review, prepare progress updates, perform a final walk through, and assist in the project closeout.
This scope of work was developed based on our previous experience with projects of this type, as well as
our conversations with our subconsultants.
The following tasks outline the services anticipated during construction of these facilities.
Task 14. Construction Engineering
• Pre-construction meeting at the project site
• Review of contractor submittals (and revisions)
• Attendance of project progress meetings (2)
• Coordination with the contractor, property owners, and City
Task 15. Construction Observation
Construction observation services will be limited to observation of specific activities performed
by the contractor. It is our understanding that the City will make periodic visits to the job site but
will not have a full-time representative on-site. We will supplement the City's observation with a
full-time representative during HOD activities (approximately one week duration), and periodic
site visits for other planed pipeline installation operations to verify general conformance with the
construction documents. We estimate actual construction activities to take approximately two
months to complete given the time needed to coordinate shutdowns, testing, and
commissioning. It is our understanding that the construction observer will have the following
responsibilities:
• Observe construction activities (as directed by City) and act as the on-site representative to
provide confidence that the work is completed in general conformance with the project plans
and specifications.
• Perform special observations during construction of critical items as noted.
• Track project progress and maintain a photographic log of construction activities while on site.
• Provide coordination with the contractor.
Task 16. Construction Close-out
Upon completion of the pipeline, the contractor is required to verify facilities perform according
to the design parameters. This includes pressure testing, pigging, and disinfecting the pipeline.
We will attend and participate in the start-up and testing of facility components. As part of final
acceptance and project close out we will also perform the following essential tasks:
• Final site walk and punch list
• Participation in pipeline testing
• Final tally of project quantities
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Item 8.n. - Page 6
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Task 17. Geotechnical Observation
Proposal: Leanna Dr Creek Crossing Water Line
Construction Support Services
Request for Additional Services
Earth Systems will be providing the geotechnical observation required for this project during
construction. The following tasks are included.
• Periodic observation of the HOD activities
• Observation of the entrance and exit pits, and excavated soil material
• Water line trench backfill compaction testing
• Support and documentation, including final compaction and inspection report
Task 18. Environmental Observation
The Mitigation Monitoring and Reporting Program (MMRP) for the CEQA document outlines
specific biological monitoring services during construction of this project. Rincon Consultants
-will be providing these services for this project, and has outlined the tasks below to be in
compliance with the SAA requirements.
• Pre-construction survey
• Biological Resources Awareness Training
• Biological Monitoring
• Final Compliance Report
EXCLUSIONS
Services that may accompany a project of this type are excluded from this scope of work at this time;
these services include the following and may be added to our scope of work on a time and materials
basis:
• Materials testing
• Construction Staking
• Archeological observation
• Project SWPPP and QSP/QSD activities (this will be the responsibility of the contractor)
• Additional biological construction monitoring not outlined above (since the SAA is not approved
yet, the items in the MMRP were used as a guideline for the scope of work. If the approved SAA
includes additional items, this scope of work may expand.)
DELIVERABLES
The project deliverables will include the following:
• Contractor submittal responses
• Observation Reports and Photos
• Punch list
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Item 8.n. - Page 7
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FEES
Proposal: Leanna Dr Creek Crossing Water Line
Construction Support Services
Request for Additional Services
Professional Engineering Services for the described scope of services will be performed and billed
monthly based on the work completed. The fee is broken down for each task. The following table
summarizes the fees.
Leanna Drive Creek Crossing Water Line
Task 14. Construction Engineering
Task 15. Construction Observation
Task 16. Construction Close-out
Task 17. Geotechnical Observation
Task 18. Environmental Observation
Reimbursables
Total
$5,250
$9,720
$2,080
$3,200
$9,750
$900
$30,900
This work will be performed under the existing Agreement for Consultant Services between the City and
Cannon for this project. If this additional scope of work and revised fee meet with your approval, please
return the signed Additional Service Agreement, which will serve as our authorization. If you have
questions, please call me at 805-503-4582.
Larry Kraemer, PE
Senior Civil Principal Engineer
RCE #44813
4 130716
Item 8.n. - Page 8
(Cannon Proposal: Leanna Dr Creek Crossing Water Line
Construction Support Services
Request for Additional Services
ADDITIONAL SERVICES AGREEMENT
Project Client: The City of Arroyo Grande
Project Name: Leanna Drive Creek Crossing Water Line
Construction Support Services
Client Project Number: PW 2013-11
Description of Additional Services and/or Materials:
Date: August 4, 2014
Project Number: 130716
The work to be performed includes services related to the construction of the new water line crossing
Arroyo Grande Creek. Construction phase services for this project will include coordination between all
involved parties, submittal review, project meetings, conduct observations, quality review, final walk-
through, assistance in start-up, and assistance in the project closeout. Subconsultant work shall include
geotechnical and environmental observation and assistance during construction.
Additional Fees: $ 30,900.00
Authorization:
In witness whereof, the parties hereto have caused this agreement consisting of the Request for
Additional Services, the original signed agreement and any other necessary and applicable documents to
be executed of the date and year first above written.
Any additions and/or corrections to this agreement will be addressed in a separate agreement.
City of Arroyo Grande Cannon
Mr. Geoff English Larry Kraemer, PE
Director, Public Infrastructure Division
Date ____________ _ Date ______________ _
5 130716
Item 8.n. - Page 9
Attachment No. 1
CITY OF ARROYO GRANDE
BID OPENING LOG SHEET
DEADLINE: TUESDAY, JULY 29, 2014 -3:00 PM
PROJECT NAME: LEANNA DRIVE CREEK CROSSING WA TERL/NE PROJECT
PROJECT NO. PW 2013-11
ENGINEER'S ESTIMATE: $275,000.00
SUBMITTED BY:
Pacific Coast Excavation, Inc.
Santa Maria, CA
D-Kal Engineering, Inc.
San Luis Obispo, CA
Raminha Construction, Inc.
Atascadero, CA
V. Lopez Jr. & Sons
Santa Maria, CA
Cal Prime, Inc.
Bakersfield, CA
R. Baker, Inc.
Arroyo Grande, CA
Crandall Construction
Nipomo, CA
Brough Construction, Inc.
Arroyo Grande, CA
HPS Mechanical, Inc.
Bakersfield, CA
c: Director of Community Development
Director of Public Works
Assistant City Engineer
City Manager
TOTAL
$198,874.00
$251, 153.00
$174,190.00
$165,577.50
$167,435.00
$220,428.00
$186,540.00
$177,239.00
$262,600.00
Item 8.n. - Page 10