HomeMy WebLinkAbout04/07/2009, C4 - CHORRO-HATHWAY WATER AND SEWER IMPROVEMENTS, SPECIFICATION NO. 90640 council Mfi�D� 4/7/2009
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C I TY O F SAN LU I S O B I S P O
FROM: Jay Walter, Public Works Direct
Carrie Mattingly, Utilities Director
Prepared By: Jennifer Lawrence, Engineering Technician
SUBJECT: Chorro-Hathway Water and Sewer Improvements, Specification No. 90640
RECOMMENDATION
1. Approve a Contract Change Order for additional work on the Chorro-Hathway Water and
Sewer Improvements Project, Spec No. 90640.
2. Approve a transfer of funds in the amount of $43,500 from Water Distribution System
Improvements Main Account and $132,600 from the Sewer Collection System Improvement
Main Account to this project's account.
DISCUSSION
Background
On June 17, 2008, the City Council authorized inviting bids for the Chorro-Hathway Water and
Sewer Improvement Project, Specification Number 90640 and on July 10, 2008 bids were opened.
R. Baker, Inc. was the lowest bidder and on July 29, 2008 the,City Manager awarded a contract to
R. Baker, Inc. in the amount of$770,570. See Attachment 1. A pre-construction meeting was held
on August 21, 2008 and construction work began on September 2, 2008.
The project included water and sewer improvements on Hathway Avenue between Montalban and
Murray. It also included installing a new waterline on Chorro Street between Mission and Lincoln
and on Chorro Street between Palm and Mill. The work on Hathway and the section on Chorro
between Palm and Mill have been completed.
During excavation for construction of the line on Chorro between Mission and Lincoln, it was
discovered that the existing utility lines deviated significantly from where archived records showed
them to be. Because of this, and the fact there are three existing sewer mains in this stretch of
Chorro, as well as a number of private underground utilities, there is not enough room to place the
new waterline and maintain required separation standards between water and sewer lines as
originally designed.
Construction Change Order
Per the City's purchasing policy, a change order of this size must be approved by the City Council
except under special emergency circumstances. As outlined in the change order itself, the problem
requiring resolution is the result of utility overcrowding in this section of street (see Attachment 2).
Chorro Street has so many utility lines in it, that there is no room for the new main to be placed and
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Chorro-Hathway Water and Sewer Improvements, Specification No. 90640 Page 2
still meet separation criteria. In order to accommodate the new main, some sewerline work has to
occur to create space in the street. That work involves tying over existing sewer laterals to a deeper
main line, removing one main and modifying and removing several manholes. The final project
goal is still the same; complete the replacement of a transmission main in the City's water system.
Because this line serves as a transmission line, different from a distribution line, staff has
heightened concerns regarding the quality and timeliness of the replacement work. This particular
transmission line carries water from the Water Treatment Plant to the Downtown area.
The proposed sewer main work covered in the change order was anticipated to occur as a future
project. The larger two of the three sewer mains serve different areas of the City, and take different
routes to the Water Reclamation Facility. Because of this, the two larger sewer mains must remain.
The third sewer main in Chorro is substandard in size, has significant structural and root intrusion
issues, requires an inordinate amount of regular maintenance by staff, and is essentially redundant.
The removal of this line will benefit wastewater collection maintenance activities.
Why now?
If the work is completed under change order, there will be no further delay to the construction. Staff
in the construction management area of Public Works has been reviewing project schedules in
recent months to determine how best to handle anticipated workloads and minimize contract
inspection to lower costs. With anticipated resource reductions in this area, project construction
schedules are being more rigorously managed. If the City Council determines that it is preferable to
create a new project and bid it, in lieu of authorizing a change order, it would take approximately 3
months before we would be ready to break ground again, putting the construction in the peak
construction season. There will not be sufficient staff to inspect the work. The project would have
to be shifted to the end of the year, where it would compete for priority with projects already
scheduled for that time. Delivering a new project will require approximately 110 hours of staff
time to prepare, bid and award a new contract. The reallocation of staff resources and the impact on
delivery of other projects creates problems for overall project delivery when looking at the Capital
Improvement Program as a whole, rather than on a project by project basis.
As noted above, this project is a transmission, not a distribution line. Transmission lines carry water
long distances from storage facilities and distribution lines are local service lines that provide water
to properties. This particular line has experienced periodic breaks. Given that it is a 14" main, it
releases significant water and produces considerable roadway damage when it breaks. Recent
waterline breaks resulted in considerable overtime and nearly $30,000 in roadway repair costs.
Delaying the construction for eight months, increases the Likelihood of an additional break
occurring. Waterline breaks result in disruption to customers as crews shut off water service to
isolate the break and reroute delivery around the failed area.
The existing contractor has already procured the waterline pipe, under the original contract, and has
performed pothole investigation work for the change. While in all likelihood the pipe will be fine,
the material warranty will not carry to a different contractor should the City choose to bid the new
work. If the pipe fails, the City will have to pay the costs associated with repairs during the warranty
period, rather than requiring the contractor to make repairs at no cost to the City. The other option
is to have the current contractor pay to ship and restock the pipe at the suppliers. This is more
expensive than taking the pipe, but would eliminate the warranty issue with a new contractor.
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Chorro-Hathway Water and Sewer Improvements,Specification No. 90640 Page 3
The current contractor. R. Baker Construction, is an experienced pipeline contractor. Staff has been
pleased with the level of cooperation they have received and the quality of the work completed. In
addition to the other information conveyed above, this has been a consideration in staff's
recommendation to proceed with the work as a change order.
CONCURRENCES
The Utilities Department has reviewed the cost proposals and discussed the various implications of
each approach and concurs with proceeding under contract change order. The Wastewater
Collections Division had previously identified these sewer improvements as a future project and
they concur with this request to perform the work sooner rather than later.
FISCAL IMTACT
R. Baker Inc. submitted a proposal for the change order work of$210,275. This is in addition to
the contract work that is yet to be completed. This compares well with the estimate of$200,000
prepared by staff independently. Cost increases for the water construction reflect additional pipe
needed and the lengthening of a number of water services. The necessary sewer main construction
as well as striping and additional potholing account for the remaining costs.
Because of the high cost associated with the work, in addition to completing their own estimate,
staff engaged an independent contractor to prepare a cost proposal to be used as a comparison with
R. Baker Inc.'s proposal. This estimate was less than R. Baker's to complete the project under
contract change order.
Actual bids that might be received if the City put the remaining work out to bid are unknown and
could vary one way or the other from the estimate provided. However, the City would be obligated
to buy the pipe and fittings already purchased for the project and handling and delivery of pipe to
City property under the current contract, or pay to have it shipped and restocked. There are also
other minor investigation costs and storage costs that have been incurred during the time staff has
been preparing the change order for approval, with the total costs summarized below. The table
assumes the amount spent to purchase the pipe, in the event Council does not approve the change
order, will be recouped through reduced bid costs.
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Chorro-Hathway Water and Sewer Improvements, Specification No. 90640 Page 4
Water Fund Sewer Fund Total
Cost to Complete Project and Change Order: $355,520 $147,194 $502,714
-includes the $210,275 change order plus original project work not yet completed
Cost to Closeout Existing Contract: $30,000 $0 $30,000
Estimated Cost to Complete New Project: $329,259 $126,345 $455,604
Estimate-End Contract& Bid Work: $359,259 $126,345 $485,604
Cost Difference (Change Order vs Bid) -$3,739 $20,849 $17,110
Original Construction Contract: $561,489 $209,081 $770,570
Existing Contingencies: $84,223 $31,362 $115,585
Costs to Date: -$298,102 -$211,133 -$509,235
Remaining Funding Available: $347,610 $29,310 $376,920
Additional Funding Required-Change Order*: $43,462 $132,603 $176,065
Additional Funding Required-Bid*: $47,575 $109,670 $157,244
*Includes 10%contingencies for remaining work
The "Additional Funding Required" items detail the additional funding staff anticipates will be
needed to complete the new work, either as part of a change order on the existing contract, or by
bidding a new contract.
The Water Distribution System Improvement account has a balance of$774,665 to support the
water portion of the project. The Wastewater Collection System Improvement account has a
balance of$1,169,580 to support the sewer portion of the project.
ALTERNATIVES
Reject the Contract Change Order and rebid the remaining portion of construction as a
new project. As discussed in the report, staff does not recommend bidding the new work due to
the impact on design and construction schedules, the risk of pipe breakage and resulting emergency
repair costs, and the unknowns associated with obtaining a new, low bid contractor.
Staff felt the resulting price difference, accounting for all costs associated with closing the contract
with R. Baker and the risks associated with a new contractor,was not significant enough to warrant
finalizing the existing project and re-bidding the remaining portion as a new project. Based on
several considerations, staff recommends retaining the services of R. Baker, Inc. to complete the
project, including the additional work specified in the Contract Change Order.
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Chorro-Hathway Water and Sewer Improvements,Specification No. 90640 Page 5
If the Council prefers staff to bid the remaining work as a new project, staff recommends the
Council authorize staff to advertise the bids and allow the City Manager to award the contract if the
low bid is below$460,000(Estimated Cost to Complete Project.)
ATTACHMENTS
1. City Manager Report Authorizing Award
2. Contract Change Order
3. Additional Work Proposal
AVAILABLE FOR REVIEW IN THE COUNCIL OFFICE
Change Order Plans
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Attachment 1
CAO REPORT
Final CAO Approval Approver Name Date Approved
City Administration Shelly Stanw cl: July 30, 2008
Reviewer Routing List Reviewer Name Date Reviewed
City Attorney Jonathan Lowell July 29,2008
City Engineer Barbara Lynch July 29,2008
Finance& Information Technology Bill Statler 7-29-08
Utilities Gary W. I lenderson July 29, 2008
July 29, 2008
FROM: Jay Walter, Public Works Director JVW
PREPARED BY: Jennifer Lawrence,Engineering Technician
SUBJECT: Chorro-Hathway Water & Sewer Improvements Project,
Specification No. 90640
RECOMMENDATIONS
1. Award a contract to R. Baker, Inc. in the amount of$770,570 for the Chorro-Hathway Water and
Sewer Improvements Project, Specification 90640.
2. Approve a transfer of$660,362 from the Water Distribution System Improvements Main Account
and $240,593 from the Sewer Collection System Improvement Main Account to this project's
account.
DISCUSSION
On June 17, 2008, the City Council authorized inviting bids for the Chorro-Hathway Water & Sewer
Improvements Project, Specification Number 90640 and authorized the CAO to award the project if
the lowest responsible bid was within the Engineer's estimate of$933,725. Ten bids were received and
opened on July 10, 2008, six of which were under the Engineer's estimate. R. Baker, Inc. of Oceano,
California submitted the low bid of$770,570. See attached bid summary(Attachment 1).
FISCAL IMPACT
The water line replacement project was originally identified in the 2005-07 Financial Plan Appendix B,
pages 77 through 81. The water lines designated for repairs are identified in the project list located on
page 80. Funding for this project will come from the Water Distribution System main account.
The sewer line replacement portion of this project is identified in the 2007-09 Financial Plan Appendix
B, pages 3-132 through 3-135. Funding for this project will come from the Wastewater Collection
System Improvements main account.
C`"f -(O,
I'
CAO REPORT—continued page 2 of 2
Estimated Project Cost by Funding Sources
Water Fund(500) Sewer Fund(520)
90227 90239 Total Budget
Construction Costs: $561,489 $209,081 $770,570
Contingencies: 84,223 31,362 115,586
Archeological Monitoring(Water) 7,000 0 79000
Material Testing: 7,500 0 7,500
Printing: 150 150 300
Total for Construction: $660,362 $240,593 $900,956
Funds Available: $1,479,420 $1,618,816
ATTACHMENTS
1. Bid Summary
2. Council Agenda Report from June 17, 2008
3. Budget Amendment Request
4. Contract
TACAO RcportsTublic Works\2008\CIP\90640 Chorro-Hathway Water and Sewer Imps\90640 eCAO Award.doc
Attachment 2
CITY OF SAN LUIS OBISPO, CALIFORNIA
CONTRACT CHANGE ORDER
Change Order No.: 7 Sheets: 1 of 12
Date: 2-26-09 Project: Chorro—Hathway Water and Sewer
To: R. Baker,lnc. Specification No.: 90640
As requested by: City of San Luis Obispo
DRAFT ONLY
You are hereby authorized and directed to make the herein described changes from the plans and
specifications, and/or to increase or decrease contract quantities,as follows:
While potholing for new 14"water main alignment,field inspection discovered the existing 14"water main was not
located as expected.Project plans show a 5'separation between new water main alignment and the existing water
main.The actual separation verified in the field is 1'.
R. Baker completed remaining portions of contract work excluding 14"ductile water main installation on Chorro
between Lincoln and Mission.The deferred portion of work has been redesigned by City staff and submitted to R.
Baker,Inc for price adjustments.The City has agreed to the following price adjustments and additional cost associated
with new design.
(Please see attached spread sheet identifying additional cost.)
AN labor,material and equipment associated with additional work on Chorro between Lincoln and Mission Shall be paid
at lump sum.
Total cost of additional work=$248,220.00
By reason of this proposed change?day(s)extension of time will be allowed.
Total cost of change shall not exceed: $248,220.00
We,the undersigned contractor, have given careful consideration to the changes proposed and hereby
agree, if this proposal is approved,that we will provide all equipment,furnish all materials, except as may
be noted above and perform all services necessary for the work above specified, and will accept as full
payment therefore the prices shown above.
Accepted by:Contractot's Authorized Agent Date accepted
cl�ma4'�l2 27-0!Z
Sub 'tted by—Residerif Engineer Date submitted
Submitted by: Project Manager Date submitted
10
Approved by:City Engineer Date approved
Change Order over$25,000 or funding required Change Order over$100,000 or funding required
Date Approved: Date approved by City Council:
By:City Administrative Officer
G.\Reference-Lbtary\Fomrs-Templates\Construction\City_CCO.doc
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