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CC 2015-05-12_08c Award Contract_Crown Terrace Sewer ReplacementTO: FROM: BY: MEMORANDUM CITY COUNCIL GEOFF ENGLISH, PUBLIC WORKS DIRECTOR MIKE LINN, ASSISTANT CITY ENGINEER SUBJECT: CONSIDERATION OF AN AWARD OF CONTRACT TO D-KAL ENGINEERING, INC. FOR THE CROWN TERRACE SEWER REPLACEMENT PROJECT, PW 2015-05 DATE: MAY 12, 2015 RECOMMENDATION: It is recommended the City Council: 1. Award a contract for the Crown Terrace Sewer Replacement Project to D-Kal Engineering, Inc. in the amount of $73, 156; 2. Authorize the interim City Manager to approve change orders up to 20% of the contract amount, $14,631, for unanticipated costs during the construction phase of the project (total construction costs= $73, 156 + $14,631 = $87,787); 3. Appropriate an additional $28,000 from the Sewer Fund to the subject project budget; and 4. Direct the City Clerk to file a Notice of Exemption. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: Savings of approximately $80,000 from the previously budgeted and completed LePoint Street/ Crown Terrace Trenchless Sewer lining project will be used for the subject project. The lowest responsive bid of $73, 156 is above the Engineer's estimate of $65,000. Staff requests an additional appropriation of $28,000 from the Sewer Fund to fund the project in accordance with the following projections: Category Pro1ections Available Funding $80,000 Construction Bid $73, 156 Construction Contingency $14,631 Design $8,970 Administration $1,000 Inspection $9,000 Testina $500 $107,257 Project Funding Shortfall ($27,257) Item 8.c. - Page 1 CITY COUNCIL CONSIDERATION OF AN AWARD OF CONTRACT TO D-KAL ENGINEERING, INC. FO.R CONSTRUCTION OF THE 2015 CROWN TERRACE SEWER REPLACEMENT PROJECT PW 2015-05 MAY 12, 2015 PAGE2 BACKGROUND: The City has previously administered many sewer rehabilitation projects using the Cured-In-Place Pipe (CIPP) technology. This "trenchless" method allows the pipe to be rehabilitated in place without having to perform excavation and pipe replacement. The CIPP is a jointless, seamless, pipe-within-a-pipe, consisting of a resin-impregnated flexible tube. The flexible tube is inserted and pulled through the existing pipe from manholes and is then cured, using either hot water under hydrostatic pressure or steam pressure, to expand the tube to tightly bond with the interior of the existing pipe. Unfortunately, video camera inspection of a 250 lineal foot segment of Crown Terrace during the project revealed that the pipe had failed beyond a reasonable measure, with excessive sagging and deterioration that would not allow insertion of the liner. As a result, staff removed the damaged segment of Crown Terrace from the previous LePoint Street I Crown Terrace rehabilitation project, because this section of pipe required complete replacement. Following completion of the rehabilitation project, staff hired Water Systems Consultants (WSC), a consultant under an on-call contract to the City, to analyze and design a corrective replacement for the damaged segment of Crown Terrace sewer line. WSC completed the design in March 2015 and staff advertised the project for formal construction bids. ANALYSIS OF ISSUES: On April 30, 2015, four bids were opened for the Crown Terrace Sewer Replacement Project (see Attachment No. 1 ). The lowest bid, from D-Kal Engineering, Inc. was in the amount of $63,064. When reviewing the bids for accuracy, staff discovered a math error that recalculated the D-Kal Engineering, Inc. bid to $73, 156 (see Attachment No. 2). Staff determined the bidder to be responsible and the corrected $73, 156 bid to still be the lowest responsive bid received. Staff recommends the award of a construction contract to D-Kal Engineering, Inc. Staff is recommending a 20% contingency due to unknown conditions that may be encountered during the excavation. The work is anticipated to begin in June with a 45 calendar day time duration. ALTERNATIVES: The following alternatives are provided for the Council's consideration: 1. Approve staff's recommendation to award a construction contract to D-Kal Engineering, Inc. for the Crown Terrace Sewer Replacement Project; 2. Appropriate an additional $28,000 from the Sewer Fund to the Crown Terrace Sewer Replacement Project; 3. Do not award a construction contract for the project; or 4. Provide direction to staff. Item 8.c. - Page 2 CITY COUNCIL CONSIDERATION OF AN AWARD OF CONTRACT TO D-KAL ENGINEERING, INC. FOR CONSTRUCTION OF THE 2015 CROWN TERRACE SEWER REPLACEMENT PROJECT PW 2015-05 MAY 12, 2015 PAGE3 ADVANTAGES: Replacement of the failed sewer segment will complete sewer rehabilitations for the Crown Terrace I May Street I Le Point Street neighborhood that were identified in the 2010 Sewer Master Plan. DISADVANTAGES: Some work may be performed at night to take advantage of low sewer flows within residential neighborhoods. Public Works will notify all affected residents prior to performance of nighttime operations. ENVIRONMENTAL REVIEW: The project is categorically exempt from CEQA pursuant to Section 15301 (b ). PUBLIC NOTIFICATION AND COMMENTS: The agenda was posted at City Hall on Thursday, May 7, 2015. The agenda and staff report was posted on the City's website on Friday, May 8, 2015. No public comments were received as of the time of preparation of this report. Attachment: 1. Bid Opening Log Sheet 2. Bid Tabulations 3. Notice of Exemption Item 8.c. - Page 3 CITY OF ARROYO GRANDE BID OPENING LOG SHEET DEADLINE: THURSDAY, APRIL 30, 2015 -2:00 PM ATTACHMENT 1 PROJECT NAME: CROWN TERRACE SEWER REPLACEMENT PROJECT PROJECT NO. PW 2015-05 ENGINEER'S ESTIMATE: $65,000.00 SUBMITTED BY: D-KAL Engineering, Inc. San Luis Obispo, CA HPS Mechanical, Inc. Bakersfiled, CA Souza Construction, Inc. San Luis Obispo, CA CalPortland Construction Santa Maria, CA TOTAL $63,064.00 $124,480.00 $105,700.00 $79,100.00 c: Director of Community Development DTreaOf-Of;pUbfiC-Work? Capital Projects Engineer Interim City Manager Item 8.c. - Page 4 Bid Tabulations Crown Terrace Sewer Replacement Proiect No PW 2015-05 City of Arroyo Grande Bid Opening. April 30, 2015 Item Item Descript1on 1 Mob1 1zat1on 2 Construction Surveying 3 SWPPP Preparation & Implementation 4 Sheetmg, Shormg & Bracing 5 Traffic Control 6 Remove I Replace Ex1stmg 6" Sewer Mam 7 Temporary Bypass Pumping 8 Reconnect Ex1stmg Sewer Laterals 9 Pavement Repairs lU t:xcavate & t1acKr111 ror t'avement Kepa1r D·KAL Engineering Contractors PO Box 1919 San Luis Obispo, CA 93406 License No 653307 A Qty Unit Unit Price Item Total 1 LS 53,957 00 53,957.00 1 LS 5174 00 5174 00 1 LS $402 00 $402.00 1 LS $498 00 $498 00 1 LS Sl,152 oo Sl,152.00 240 LF 14600 535,040 00 1 LS 818 00 5818 00 5 EA 73300 53,665.00 45 TONS 305 00 513,725 00 l I.> ,,, ,,,, uu """·"" uu Bia Totals 573,156.00 Listed Subs none Attachment No. 2 Cal Portland Construction Souza Construction HPS Mechanical PO Box 1280 P 0 Box3810 3100 E Belle Terrace Santa Mana, CA 93454 San LUIS Obispo, CA 93401 Bakersfield, CA 93307 License No 523019 A License No. 479476 A License No. 793014 AB C-34 Unit Price Item Total Unit Price Item Total UmtPnce Item Total 56,745.00 56,745 00 8,540.00 58,540 00 522,000 00 522,000 00 5435 00 $435 00 $1,150 00 $1,150 00 Sl,500 oo Sl,500 oo $560.00 $560.00 $8,900 00 $8,900 00 $2,500 00 $2,500 00 $3,830 00 $3,830 00 $2,500 00 $2,500 00 $6,200 00 S6,200 oo $3,555.00 $3,555 00 Sl0,200 oo Sl0,200 oo $14,000 00 514,000 00 5142 00 $34,080 00 5192 00 546,080 00 5147 00 j35,280 00 54,345 00 54,345 00 57,250.00 57,250.00 59,700 00 59,700.00 51,750.00 58,750.00 51,000.00 55,000 00 5360 00 51,800.00 5265 00 511,925 00 5224.00 510,080.00 5560 00 ~25,200.00 ,.,.,, uu ~4,i:S/j uu >O,UUU UU >o,uuu Ou >o,oOO Ou >O,OUU UU 579,100.00 5105,700.00 5124,480.00 Mark E Molin!, Inc none none 1075 Hemmingway Lane Templeton, CA 93465 License No LS 7929 Toste Construction, Inc 2651 Green Place Arroyo Grande, CA 93420 License No 879465 A B Toste Grading & Paving PO Box 407 Grover Beach, CA 93433 License No 318439 A Item 8.c. - Page 5 Attachment No. 3 Notice of Exemption To: Office of Planning and Research 1440 Tenth Street, Room 121 Sacramento, CA 95814 From: (Public Agency) City of Arroyo Grande l!J County Clerk County of San Luis Obispo County Government Center San Luis Obispo, CA 93408 Project Title: Crown Terrace Sewer Replacement Project. PW 2015-05 300 East Branch Street Arroyo Grande, CA 93420 Project Location -Specific: Crown Terrace. from Le Point Street to Crown Hill Street Project Location -City: Arrovo Grande Project Location -County: San Luis Obispo Description of Project: Replace 250 LF of damaged sewer main Name of Public Agency Approving Project: Citv of Arrovo Grande -Public Works Department Name of Person or Agency Carrying Out Project: ___,,G"""e""'o"-<ff-"E='-n~g"""lis,,,,h_,__ ________ _ Exempt Status: (check one) D Ministerial (Section 12080(b)(1); 15268); D Declared Emergency (Sec. 21080(b)(3); 15269(a)); D Emergency Project (Sec. 21080(b)(4); 15269(b)(c)); l!J Categorical Exemption State type and section number: --=S=ec=t=io=n_,1'-"5=3=0..:...J1 G""bJ-) ___________ _ D Statutory Exemptions. State code number: ---------------------- Reasons Why Project Is Exempt: The existing sewer mains is failing. Staff administered a slip lining project in 2014 but the subject segment was damaged and would not accept the slip lining. Project will remove and replace the damaged segment to complete rehabilitation of the sewer main. Lead Agency Contact Person: Michael Linn. P.E. Area Code/Telephone/Extension· (805) 473-5444 If filed by Applicant: 1. Attach a certified document of exemption finding. 2. Has a Notice of Exemption been filed by the public agency approving the project? l!J Yes D No Signature: ------------- Teresa McClish Community Development Director l!J Signed by Lead Agency D Signed by Applicant D Date. ______ _ Date received for filing at OPR· Item 8.c. - Page 6