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Home My WebLink About09-03-2019 Item 11 - Casa-Stenner-Murray Waterline Replacement Department Name: Public Works Cost Center: 6004 For Agenda of: September 03, 2019 Placement: Consent Estimated Time: N/A FROM: Daryl Grigsby, Public Works Director Prepared By: Hai Nguyen, Engineer III SUBJECT: AWARD CASA/STENNER/MURRAY WATERLINE REPLACEMENT, SPECIFICATION NO. 91312 RECOMMENDATION 1. Award a contract to S. Chaves Construction in the amount of $1,616,256 and authorize the Mayor to execute the contract; and 2. Approve a budget transfer of $690,197 from the Waterline Replacement 2016 Project (91436) to the Casa/Stenner/Murray Waterline Replacement Project Account (91312). DISCUSSION On April 16, 2019 the City Council authorized inviting bids (Attachment A) for the Casa/Stenner/Murray Waterline Replacement, Specification Number 91312. Five bids were received and opened on July 18, 2019. Lowest Bidder Determination As outlined in the Notice to Bidders, the lowest bidder was determined in compliance with Public Contract Code Section 20103.8(c), which states: “The lowest bid shall be the lowest total of the bid prices on the base contract and those additive or deductive items that when taken in order from a specifically identified list of those items in the solicitation, and added to, or subtracted from, the base contract, are less than, or equal to, a funding amount publicly disclosed by the local agency before the first bid is opened” The following bids were ranked based on the Bid Total (Attachment B): Rank Contractor Bid Total 1 S. Chaves Construction (Chaves) $1,616,256.26 2 D-Kal Engineering (D-Kal) $1,794,259.00 3 Cedro Construction (Cedro) $1,925,489.00 4 R. Burke Corporation (Burke) $2,211,525.00 5 Specialty Construction (Specialty) $2,381,304.00 Packet Pg. 61 Item 11 Of the five bids received, S. Chaves Construction (Chaves) was the apparent lowest bidder with a bid of $1,616,256.26. This bid is higher than the Engineer’s Estimate of $1,500,000.00 by $116,256.26. This increase in costs may be attributed to the overall increase in construction materials, activity, and high demands for contract work. Award Recommendation Staff reviewed the Chaves bid proposal and initially determined that the bid from Chaves was non-responsive because the references submitted in the bid proposal did not meet the minimum Contractor Qualifications stated within the Notice to Bidders. Specifically, Chaves’s bid proposal did not provide enough information demonstrating experience with underground pipeline projects completed for a public agency, with a minimum of one underground waterline project including service connections. Chaves was given an opportunity to respond with information on why its bid should be considered responsive (Attachment C). Chaves responded on August 9, 2019 (Attachment D). Chaves submitted additional information for the three referenced projects that were originally submitted, and staff concluded that all requirements as established in the Notice to Bidders have been met. The Contractor’s references, license, and registration with the Department of Industrial Relations have been verified. Staff is recommending that the project be awarded to Chaves (Attachment E). Previous Council or Advisory Body Action This project was identified in the 2015-2017 and 2017-19 Financial Plans that were approved by Council. Policy Context The City Council approved the Potable Water Distribution System Operations Master Plan (Master Plan) on January 19, 2016. The Master Plan identified this project as a high priority. Additionally, per Exhibit 202-A of the October 2015 Financial Management Manual, Council approval is required for Public Projects that cost over $175,000. Public Engagement Public engagement was conducted during the initial identification of this project to be included in the 2015-17 Financial Plan. Sierra Vista Hospital has also been notified of the upcoming work as minimal water service disruption to the hospital is expected. CONCURRENCE There is concurrence from the Utilities Department to award the project to the lowest responsive and responsible bid based on the final review of the bid documents. The additional information provided by the contractor for the bid references, included here as Attachment D, clarified the nature of the work experience for similar types of projects. This high priority project will replace the City’s aging water infrastructure per the recommendations of the Water Master Plan. Packet Pg. 62 Item 11 ENVIRONMENTAL REVIEW A portion of the Project is located within a potentially archeologically sensitive zone of influence (within 200 feet of Stenner Creek). Mitigation measures approved through Mitigated Negative Declaration ER10-07 are included in the Project’s specifications and will be followed by the City’s contractor, as applicable, consistent with the requirements of the California Environmental Quality Act (CEQA). FISCAL IMPACT Budgeted: Yes Budget Year: 2015-17 & 2017-19 Funding Identified: Yes Fiscal Analysis: Total Project Bid $1,616,256.26 Contingencies (25%):$404,064.74 Archelogical Monitoring $25,000.00 Material Testing:$10,000.00 Printing:$500.00 Total for Project:$2,055,821.00 Total funding available (91312)$1,365,624.00 Waterline Replacement 2016 Project (91436)$690,197.00 Casa/Stenner/Murray Waterline Replacement (91312) All utility improvement projects are classified as high -risk due to many unknown subsurface conditions. Previous waterline replacement projects indicate that higher contingencies (20%- 25%) are required to cover the additional cost of modifying unknown utility conflicts and hazardous excavation encountered during construction. Furthermore, a higher contingency is needed for this project due to the complexity to preserve existing water services, and minimize adverse impacts to the adjacent medical offices, Sierra Vista Hospital, and the community. Staff identifies 25% contingencies for this project. The estimated total project cost is $2,030,820. The Casa/Stenner/Murray Waterline Replacement Project Account (91312) has a current balance of $1,365,624.00. Staff is recommending an additional reallocation of $690,197.00 from the Waterline Replacement 2016 Project (91436) which was completed on June 18, 2019. The Waterline Replacement 2016 Project (91436) has a current balance of $886,834.55 which is sufficient to support this request. Funding from the Water Fund’s Undesignated Capital is no longer needed to support this project as previously identified in the Council Agenda Report authorizing the advertisement of this project. Packet Pg. 63 Item 11 ALTERNATIVES Deny award of the contract. The City Council may choose to not award the contract (Attachment E). Staff does not recommend this alternative, as the existing water mains pose a high risk of catastrophic failure, requiring expensive repairs and water service disruptions to the community. Attachments: a - 4/16/2019 Staff Report Authorizing Advertising b - 91312 Bid Results c - 91312 Bid Responsiveness Letter d - 91312 Bid Responsiveness Response e - Contract with S. Chaves Construction, Inc. Packet Pg. 64 Item 11 Department Name: Public Works Cost Center: 6004 For Agenda of: April 16, 2019 Placement: Consent Estimated Time: N/A FROM: Daryl Grigsby, Public Works Director Prepared By: Hai Nguyen, Engineer III SUBJECT: ADVERTISE CASA/STENNER/MURRAY WATERLINE REPLACEMENT, SPECIFICATION NO. 91312 RECOMMENDATION 1. Approve the project plans (Attachment A) and specifications (Attachment B) for the Casa/Stenner/Murray Waterline Replacement Project, Specification Number 91312; and 2. Authorize staff to advertise the project for bids; and 3. Authorize the City Manager to award the construction contract for the bid total if the lowest responsible bid is within the Engineer’s Estimate of $1,500,000. 4. Approve a budget transfer of $569,876 from the Water Fund’s Undesignated Capital account to the project account. DISCUSSION Background The City’s water distribution system is comprised of 184 miles of pipe with diameters ranging in size from four inches to 30 inches. Some of the pipes that make up the City’s water distribution system have been identified as undersized and/or beyond their useful design life. The useful design life expectancy of waterlines is typically 50 years. Waterline breaks occur with more frequency with aging waterlines, and the resulting repairs are disruptive to the public and expensive. Waterline breaks undermine the roadway requiring full depth and costly reconstruction to properly rehabilitate the pavement. Replacement of water distribution pipes and related facilities is an ongoing program to replace aging, substandard, and deteriorating infrastructure, with the added benefit of lowering costs and reducing customer impacts associated with emergency repairs. The main objectives of this program are to ensure reliable water services, reduce the need for emergency repairs, and to enhance available fire flows. Packet Pg. 65 Item 11 Project The Casa/Stenner/Murray Waterline Replacement Project (Project) proposes replacement of approximately 3,150 lineal feet of waterline on Casa, Stenner, Murray and the intersections of Chorro/Meinecke and Chorro/Murray (Attachment C). The waterlines that will be replaced with this project are substandard (undersized) and deteriorated. Their replacement will eliminate capacity limitations for Sierra Vista Hospital and improve water flow for fire protection. Replacing these waterlines will result in lower costs to the City and reduced customer impacts associated with emergency repairs. Reducing or eliminating the number of required emergency repairs provide more time for maintenance staff to complete preventive maintenance, which prolongs the expected service life of Water Distribution facilities and equipment. This project was originally intended to be constructed as a component of the Waterline Replacements Project 2016, Specification 91436, which was released for construction last year. It was removed from that project due to additional design and coordination efforts that were necessary with the Sierra Vista Hospital. Previous Council or Advisory Body Action This project was identified in the 2015-2017 and 2017-19 Financial Plans that were approved by Council. Policy Context The City Council approved the Potable Water Distribution System Operations Master Plan (Master Plan) on January 19, 2016. The Master Plan identified this project as a high priority. Additionally, per the October 2018 Financial Management Manual, Council approval is required for Public Projects that cost over $175,000. Public Engagement Public engagement was conducted during the initial identification of this project to be included in the 2015-17 Financial Plan. This is a critical public infrastructure project and is important for fire safety and the general health and welfare the public. CONCURRENCE This project has the concurrence of the Utilities Department. ENVIRONMENTAL REVIEW A portion of the Project is located within a potentially archeologically sensitive zone of influence (within 200 feet of Stenner Creek). Mitigation measures approved through Mitigated Negative Declaration ER10-07 are included in the Project’s specifications and will be followed by the City’s contractor, as applicable, consistent with the requirements of the California Environmental Quality Act (CEQA). Packet Pg. 66 Item 11 FISCAL IMPACT Budgeted: Yes Budget Year: 2015-17 & 2017-19 Funding Identified: Yes Fiscal Analysis: Estimated Project Cost by Funding Sources Construction Estimate: $1,500,000 Contingencies (15%): $225,000 Contruction Management $200,000 Material Testing: $10,000 Printing: $500 Total for Project:$1,935,500 Total funding available (91312)$1,365,624 Additional Funding Needed (601.9501.71501)$569,876 Casa/Stenner/Murray Waterline Replacement (91312) Waterline improvements identified in this project are included in the 2017-19 Financial Plan page E2-153 which provided $1,870,000 for this project. In October 2018, a waterline failure on Highland Drive and the associated emergency repair work required the use of portions of this project’s funding to complete. Funding for this project is available in the Project Account (91312), which has a current available balance of $1,365,624. Staff is recommending that additional funding of $569,876 be transferred from the Water Fund’s Undesignated Capital account (601.9501.71501) to provide adequate funding for the project. Undesignated Capital has a current available balance of $253,735. An additional $316,140 is expected to become available within Undesignated Capital after completion of the Waterline Replacement project (91436), which is currently being constructed and is 60% complete and under budget. The subject project will not be awarded unless sufficient funding exists to support the work, including contingencies. Actual costs will be known when the project opens for bid. ALTERNATIVES Deny or defer approval to advertise. The City Council may choose to deny or defer the approval to advertise this project. Staff does not recommend this option, as the water mains included in this project continue to deteriorate and pose a high risk of catastrophic failure, requiring expensive repairs. Attachments: a - Council Reading File - 91312 Plans b - Council Reading File - 91312 Specifications c - Project Vicinity Map Packet Pg. 67 Item 11 CASA/STENNER/MURRAY WATERLINE REPLACEMENT, SPECIFICATIONS NO. 91312Bid Opening: 7/18/19UNIT TOTALUNITTOTALUNITTOTALUNITTOTALUNITTOTALUNITTOTALNo.ITEMUNIT QUAN PRICEPRICEPRICEPRICEPRICEPRICEPRICEPRICEPRICEPRICEPRICEPRICE1TRAFFIC CONTROL PLAN AND IMPLEMENTATIONLS 1$60,000.00 $60,000.00 $40,000.00 $40,000.00 $85,934.00 $85,934.00 $28,200.00 $28,200.00 $215,000.00 $215,000.00 $183,500.00 $183,500.002TEMPORARY HIGHLINE (MURRAY: SANTA ROSA TO CASA)LS 1$80,000.00 $80,000.00 $135,000.00 $135,000.00 $48,616.00 $48,616.00 $69,100.00 $69,100.00 $70,000.00 $70,000.00 $97,300.00 $97,300.003REMOVE (E) 6” CI WATERLINE (MURRAY: SANTA ROSA TO CASA)LF 600$50.00 $30,000.00 $30.00 $18,000.00 $59.00 $35,400.00 $15.25 $9,150.00 $40.00 $24,000.00 $11.00 $6,600.004POTHOLINGLS 1$20,000.00 $20,000.00 $35,000.00 $35,000.00 $93,234.00 $93,234.00 $17,900.00 $17,900.00 $60,000.00 $60,000.00 $187,500.00 $187,500.0058 INCH PVC WATERLINELF 1570$140.00 $219,800.00 $140.13 $220,004.10 $135.00 $211,950.00 $184.00 $288,880.00 $250.00 $392,500.00 $174.00 $273,180.00612 INCH PVC WATERLINELF 1465$200.00 $293,000.00 $235.49 $344,992.85 $189.00 $276,885.00 $208.00 $304,720.00 $310.00 $454,150.00 $313.00 $458,545.00712 INCH DIP WATERLINELF 140$230.00 $32,200.00 $371.49 $52,008.60 $187.00 $26,180.00 $376.00 $52,640.00 $380.00 $53,200.00 $421.00 $58,940.00812 INCH PVC STORM DRAIN (SDR 35)LF 20$190.00 $3,800.00 $40.00 $800.00 $370.00 $7,400.00 $278.00 $5,560.00 $500.00 $10,000.00 $595.00 $11,900.00918 INCH SCHEDULE 40 STEEL PIPE ENCASEMENTLF 85$300.00 $25,500.00 $364.71 $31,000.35 $435.00 $36,975.00 $737.00 $62,645.00 $800.00 $68,000.00 $1,025.00 $87,125.0010ABANDON WATERLINE AND FACILITIESLS 1$20,000.00 $20,000.00 $17,000.00 $17,000.00 $49,148.00 $49,148.00 $13,500.00 $13,500.00 $25,000.00 $25,000.00 $59,800.00 $59,800.0011WATERLINE TIE IN AND APPURTENANCES AT MURRAY & SANTA ROSA LS 1$2,500.00 $2,500.00 $31,000.00 $31,000.00 $32,454.00 $32,454.00 $21,873.00 $21,873.00 $33,000.00 $33,000.00 $22,700.00 $22,700.0012WATERLINE TIE IN AND APPURTENANCES AT MURRAY & CASALS 1$20,000.00 $20,000.00 $28,000.00 $28,000.00 $32,071.00 $32,071.00 $22,635.00 $22,635.00 $30,000.00 $30,000.00 $20,150.00 $20,150.0013WATERLINE TIE IN AND APPURTENANCES AT MURRAY & STENNER LS 1$20,000.00 $20,000.00 $24,000.00 $24,000.00 $26,097.00 $26,097.00 $21,500.00 $21,500.00 $28,000.00 $28,000.00 $18,500.00 $18,500.0014WATERLINE TIE IN AND APPURTENANCES AT 1224 MURRAYLS 1$15,000.00 $15,000.00 $16,000.00 $16,000.00 $23,736.00 $23,736.00 $13,360.00 $13,360.00 $11,000.00 $11,000.00 $9,500.00 $9,500.0015WATERLINE TIE IN AND APPURTENANCES AT MURRAY & HATHWAY LS 1$20,000.00 $20,000.00 $22,000.00 $22,000.00 $27,024.00 $27,024.00 $19,900.00 $19,900.00 $16,000.00 $16,000.00 $14,700.00 $14,700.0016WATERLINE TIE IN AND APPURTENANCES AT CASA & DESERETLS 1$15,000.00 $15,000.00 $28,000.00 $28,000.00 $26,977.00 $26,977.00 $14,990.00 $14,990.00 $14,000.00 $14,000.00 $17,500.00 $17,500.0017WATERLINE TIE IN AND APPURTENANCES AT END OF STENNERLS 1$20,000.00 $20,000.00 $23,000.00 $23,000.00 $25,314.00 $25,314.00 $17,282.00 $17,282.00 $14,000.00 $14,000.00 $15,800.00 $15,800.0018WATERLINE TIE IN AND APPURTENANCES AT CHORRO & MURRAY LS 1$20,000.00 $20,000.00 $32,000.00 $32,000.00 $29,343.00 $29,343.00 $21,800.00 $21,800.00 $24,000.00 $24,000.00 $29,300.00 $29,300.0019WATERLINE TIE IN AND APPURTENANCES AT CHORRO & MEINECKE LS 1$20,000.00 $20,000.00 $31,000.00 $31,000.00 $27,337.00 $27,337.00 $26,606.00 $26,606.00 $21,000.00 $21,000.00 $25,700.00 $25,700.0020TYPE 1 WATER SERVICE TIE INEA 9$1,500.00 $13,500.00 $2,100.00 $18,900.00 $2,065.00 $18,585.00 $1,394.00 $12,546.00 $1,500.00 $13,500.00 $4,600.00 $41,400.0021TYPE 2 WATER SERVICE TIE INEA 59$2,300.00 $135,700.00 $2,000.00 $118,000.00 $2,792.00 $164,728.00 $2,555.00 $150,745.00 $3,000.00 $177,000.00 $3,850.00 $227,150.0022TYPE 3 WATER SERVICE TIE INEA 15$5,000.00 $75,000.00 $4,900.00 $73,500.00 $5,310.00 $79,650.00 $6,100.00 $91,500.00 $6,500.00 $97,500.00 $7,250.00 $108,750.0023TYPE 4 WATER SERVICE TIE INEA 4$1,000.00 $4,000.00 $2,900.00 $11,600.00 $590.00 $2,360.00 $7,200.00 $28,800.00 $2,100.00 $8,400.00 $1,100.00 $4,400.0024TYPE 5 FIRE SERVICE TIE INEA 5$6,600.00 $33,000.00 $8,000.00 $40,000.00 $5,310.00 $26,550.00 $15,300.00 $76,500.00 $9,000.00 $45,000.00 $8,750.00 $43,750.0025TYPE 6 FIRE SERVICE TIE INEA 3$8,000.00 $24,000.00 $7,500.00 $22,500.00 $6,284.00 $18,852.00 $10,700.00 $32,100.00 $6,000.00 $18,000.00 $8,900.00 $26,700.0026TYPE 7 FIRE SERVICE TIE INEA2$10,000.00 $20,000.00 $10,000.00 $20,000.00 $17,486.00 $34,972.00 $19,100.00 $38,200.00 $15,000.00 $30,000.00 $20,000.00 $40,000.0027TYPE 8 WATER SERVICE TIE INEA 1$10,000.00 $10,000.00 $11,500.00 $11,500.00 $31,100.00 $31,100.00 $22,100.00 $22,100.00 $32,000.00 $32,000.00 $30,000.00 $30,000.0028FIRE HYDRANTEA 10$10,293.00 $102,930.00 $8,500.00 $85,000.00 $13,595.00 $135,950.00 $10,000.00 $100,000.00 $8,000.00 $80,000.00 $6,900.00 $69,000.0029BLUE FIRE HYDRANT MARKEREA 10$30.00 $300.00 $300.00 $3,000.00 $24.00 $240.00 $80.00 $800.00 $20.00 $200.00 $53.00 $530.003012" ISOLATION GATE VALVEEA 5$2,500.00 $12,500.00 $2,500.00 $12,500.00 $3,935.00 $19,675.00 $3,200.00 $16,000.00 $3,000.00 $15,000.00 $3,200.00 $16,000.0031CONSTRUCTION SURVEY AND MONUMENT PRESERVATIONEA 5$2,500.00 $12,500.00 $1,150.00 $5,750.00 $2,242.00 $11,210.00 $30,000.00 $150,000.00 $2,000.00 $10,000.00 $3,650.00 $18,250.0032REPLACE TRAFFIC STRIPING & MARKERSLS 1$15,000.00 $15,000.00 $6,000.00 $6,000.00 $10,019.00 $10,019.00 $14,000.00 $14,000.00 $18,000.00 $18,000.00 $9,500.00 $9,500.0033REPLACE TRAFFIC LOOP DETECTORSEA 2$2,000.00 $4,000.00 $2,500.00 $5,000.00 $1,770.00 $3,540.00 $2,129.00 $4,258.00 $1,400.00 $2,800.00 $1,350.00 $2,700.0034COMPLY WITH OSHALS 1$10,000.00 $10,000.00 $1,200.00 $1,200.00 $45,312.00 $45,312.00 $3,200.00 $3,200.00 $5,000.00 $5,000.00 $19,800.00 $19,800.0035COMPLY WITH MITIGATION MEASURESLS 1$10,000.00 $10,000.00 $8,500.00 $8,500.00 $3,009.00 $3,009.00 $50,000.00 $50,000.00 $35,000.00 $35,000.00 $51,500.00 $51,500.0036INSTALL 2” AIR/ VAC RELEASE VALVE ASSEMBLY EA 2$6,000.00 $12,000.00 $3,800.00 $7,600.00 $3,656.00 $7,312.00 $4,600.00 $9,200.00 $3,500.00 $7,000.00 $6,500.00 $13,000.0037(N) 3'x2' STORMDRAIN CATCH BASINEA 1$15,000.00 $15,000.00 $800.00 $800.00 $17,700.00 $17,700.00 $8,200.00 $8,200.00 $8,500.00 $8,500.00 $4,700.00 $4,700.0038NIGHT WORKLS 1$20,000.00 $20,000.00 $18,000.00 $18,000.00 $11,255.00 $11,255.00 $29,000.00 $29,000.00 $15,000.00 $15,000.00 $22,500.00 $22,500.0039RESTORE LANDSCAPE AND IRRIGATIONLS 1$10,000.00 $10,000.00 $4,000.00 $4,000.00 $3,972.00 $3,972.00 $13,000.00 $13,000.00 $13,000.00 $13,000.00 $11,400.00 $11,400.0040REMOVE (E) & INSTALL (N) CURB AND GUTTERLF 99$30.00 $2,970.00 $63.64 $6,300.36 $107.00 $10,593.00 $241.00 $23,859.00 $85.00 $8,415.00 $86.00 $8,514.0041REMOVE (E) & INSTALL (N) SIDEWALKSQFT 520$40.00 $20,800.00 $15.00 $7,800.00 $30.00 $15,600.00 $37.00 $19,240.00 $18.00 $9,360.00 $26.00 $13,520.00$1,500,000.00$1,616,256.26$1,794,259.00$1,925,489.00$2,211,525.00$2,381,304.00CEDRO CONSTRUCTIONR BURKE CORPORATION SPECIALTY CONSTRUCTIOND‐KAL ENGINEERINGTOTAL PROJECT BIDBASE BIDEngineer's Estimate S CHAVES CONSTRUCTIONPacket Pg. 68Item 11 City of San Luis Obispo, Public Works, 919 Palm Street, San Luis Obispo, CA, 93401‐3218, 805.781.7200, slocity.org August 2, 2019 S. Chaves Construction Inc. Terri Chaves 11545 Los Oso Valley Road, Suite C‐3 San Luis Obispo, CA 93405 Subject: Casa/Stenner/Murray Waterline Replacement, Specifications No. 91312 On July 18, 2019 bids were opened for the “Casa/Stenner/Murray Waterline Replacement,” Specification No. 91312 (“Project”). The Project will install more than 3,000 lineal foot of waterline in the public roadways and the necessary experience is required to minimize adverse impacts to the adjacent medical offices, Sierra Vista Hospital, and the community. Staff reviewed S. Chaves Construction’s (Chaves) bid proposal and determined that the bid from Chaves is non‐responsive because the references submitted in the bid proposal do not meet the minimum Contractor Qualifications stated within the Notice to Bidders. Specifically, Chaves’s bid proposal did not provide sufficient information in response to the following section: All referenced projects must be for underground pipeline projects completed for a public agency. One referenced project must be for an underground waterline project including service connections. You have an opportunity to comment upon this determination. Chaves may submit written material to the City explaining why its bid should be considered responsive no later than 5:00 PM, Friday August 9, 2019. If submitted, the written materials will be evaluated and provided to the City Council for consideration. The City Council will make the final decision at its regularly scheduled meeting on September 3, 2019. 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Packet Pg. 80 Item 11