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Home My WebLink About07 - Big Canyon Reservoir Flow Metering Vault and Treatment ImprovementsCITY OF NEWPORT BEACH City Council Staff Report TO: FROM: PREPARED BY: PHONE: TITLE: ABSTRACT: August 8, 2017 Agenda Item No. 7 HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL David A. Webb, Public Works Director - 949-644-3311, dawebb@newportbeachca.gov Ben Davis, Associate Civil Engineer, bdavis@newportbeachca.gov 949-644-3317 Big Canyon Reservoir Flow Metering Vault and Treatment Improvements — Award of Contract No. 6104 (16W13) Staff has received construction bids for the Big Canyon Reservoir Flow Metering Vault and Treatment Improvements project and is requesting City Council's approval to award the construction contract to Schuler Constructors, Inc. of Corona, California. RECOMMENDATION: a) Find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15302 (c) Class 2, (replacement or reconstruction of existing utility systems involving negligible or no expansion of capacity) of the CEQA Guidelines, because it has no potential to have a significant effect on the environment; b) Approve the project plans and specifications; c) Award Contract No. 6104 to Schuler Constructors, Inc. for the total bid amount of $1,610,500.00, and authorize the Mayor and City Clerk to execute the contract; d) Establish a contingency of $161,000.00 (approximately 10% of Total Bid) to cover the cost of unforeseen work not included in the original contract; and e) Approve Budget Amendment No. 18BA-003 appropriating $200,000.00 from the Water Capital Fund (Non Master Plan) to Account No. 70201932-980000-16W13 for Big Canyon Reservoir Flow Metering Vault and Treatment Improvements. FUNDING REQUIREMENTS: The Budget Amendment records and appropriates $200,000 in increased expenditure appropriations from the Water Capital (NMP) Fund. 7-1 Big Canyon Reservoir Flow Metering Vault and Treatment Improvements — Award of Contract No. 6104 (16W13) August 8, 2017 Page 2 Upon approval of the proposed budget amendment, sufficient funding is available for the award of this contract. The following funds will be expensed: Account Description Account Number Amount Water Capital NMP 70201932-980000-16W13 $ 1,000,000.00 Water Enterprise 70101-980000-16W13 $ 815,500.00 Total: $ 1,815,500.00 Staff recommends establishing approximately ten (10) percent for contingency purposes for unforeseen conditions associated with construction. Proposed fund uses are as follows: Vendor Schuler Constructors, Inc. Schuler Constructors, Inc. Geotechnical Consultant Various DISCUSSION: Purpose Amount Construction Contract $ 1,610,500.00 Construction Contingency $ 161,000.00 Special Inspection and Testing $ 41,000.00 Printing and Incidentals $ 3,000.00 Total: $ 1,815,500.00 The City of Newport Beach owns and operates Big Canyon Reservoir (BCR) which is a two hundred million -gallon potable water reservoir built in 1958. Water leaving the reservoir is treated with sodium hypochlorite and aqua ammonia to form chloramines for disinfection of the water. The on-site treatment system is located in the basement of the BCR control building. The City conducted a study in November 2014 to analyze flow measurement accuracy and water disinfection at the BCR flow control building. The analysis found two areas that could be improved. First, the existing flow meter is a 42 -inch propeller meter which is not ideal for measuring low flows. The second issue is the water disinfection dosing and mixing process can be improved with flash mixing devices before entering the water distribution system. The City retained Stantec Consulting Services, Inc. to design improvements to flow metering and mixing. The design involves constructing a concrete vault to house a new 30 -inch magnetic flow meter to replace the 42 -inch propeller meter. Flash mixing will be achieved by installing two mixing systems to handle high and low flow conditions. The first mixing device is a 42 -inch Ultra Tab static mixer that will handle the medium to high flow conditions. The second device is a hydraulic mixing system that uses three jet nozzles that will mix lower flow conditions. During the design process, the consultant conducted extensive modeling to confirm the design will meet the mixing requirements at all flow conditions. 7-2 Big Canyon Reservoir Flow Metering Vault and Treatment Improvements — Award of Contract No. 6104 (16W13) August 8, 2017 Page 3 This project will also replace the existing 60 year-old crane that has been identified as unusable due to a safety recall for defective railway welds. The new crane will assist City operations' staff with the maintenance of large valves and pipelines in the control building basement. At 10 a.m. on July 11, 2017, the City Clerk opened and read the following bid for this project: BIDDER TOTAL BID AMOUNT Low Schuler Constructors, Inc. $1,610,500.00 2nd RC Foster Corporation $1,671,000.00 3rd Gateway Pacific Contractors, Inc. $1,754,448.00 4th GCI Construction, Inc. $2,523,000.00 The City received multiple bids for this project and the low bid amount is 28.8 percent above the engineer's estimate of $1,250,000.00. The majority of the cost differential is associated to the cost of the concrete meter vault. The proposed improvements require significant excavation and a complicated shoring system in order to construct the 14 -foot by 14 -foot concrete vault approximately 30 feet below the ground surface. The contractor is required to adhere to stringent shoring requirements as stipulated in the geotechnical report. Also, concrete costs have recently increased because of California Assembly Bill 219. This law requires that all concrete truck drivers be paid prevailing wages. As a result, the cost of transporting the concrete material was significantly higher than estimated. These two items combined account for the increase in cost above the engineers estimate. In post bid discussions with contractors, additional value engineering is limited because of the depth and complexities. Public Works and Municipal Operations re -reviewed all of the bid items and jointly agree that this project is necessary, provides value to the water system, and its costs reflect the current marketplace, and recommend moving forward with the project. The low bidder, Schuler Constructors, Inc., possesses a California State Contractors License Classification "A" as required by the project specifications. A check of the contractor's references indicates satisfactory completion of similar projects for other public agencies. ENVIRONMENTAL REVIEW: Staff recommends the City Council find this project exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15302 (c) Class 2, (replacement or reconstruction of existing utility systems involving negligible or no expansion of capacity) of the CEQA Guidelines, because it has no potential to have a significant effect on the environment. 7-3 Big Canyon Reservoir Flow Metering Vault and Treatment Improvements — Award of Contract No. 6104 (16W13) August 8, 2017 Page 4 NOTICING: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). ATTACHMENTS: Attachment A — Location Map Attachment B — Budget Amendment 7-4 ATTACHMENT A o j a 0 GJ� a PROJECT _ LOCATION D 0 0 00 o BIG CANYON pq o RESEVOIR /F �c 0 a s ti 0 q �N y� 4 4 S � D N.T.S. BIG CANYON RESERVOIR FLOW METERING VAULT CITY OF NEWPORT BEACH PUBLIC WORKS DEPARTMENT AND TREATMENT IMPROVEMENTS LOCATION MAP 8/8/2017 7-5 ATTACHMENT B City of Newport Beach BUDGET AMENDMENT 2017-18 EFFECT ON BUDGETARY FUND BALANCE: Increase Revenue Estimates X Increase Expenditure Appropriations Transfer Budget Appropriations SOURCE: from existing budget appropriations from additional estimated revenues X from unappropriated fund balance EXPLANATION: NO. BA- 18BA-003 AMOUNT:J $200,000.00 This budget amendment is requested to provide for the following: To increase expenditure appropriations for the Big Canyon Reservoir Flow Metering Vault and Treatment Improvements Proiect, ACCOUNTING ENTRY: BUDGETARY FUND BALANCE Fund Increase in Budgetary Fund Balance ANDX Decrease in Budgetary Fund Balance 300000 No effect on Budgetary Fund Balance ONE-TIME? N Yes Or_q No This budget amendment is requested to provide for the following: To increase expenditure appropriations for the Big Canyon Reservoir Flow Metering Vault and Treatment Improvements Proiect, ACCOUNTING ENTRY: BUDGETARY FUND BALANCE Fund Object Description 702 300000 Water Capital Fund - Fund Balance REVENUE ESTIMATES Or_q Object Description EXPENDITURE APPROPRIATIONS Description Org Number 70201932 CAP NMP Distribution & Piping Object Number 980000 CIP Exp Project Number 16W13 Big Canyon Reservoir Meter Valve Project String E -16W13 -CONSTRUCT -702 -UNASSIGNED Signed: �// p�� •'l�` Fi fal Approva : Financear Signed: l Signed Administraflve Approval: City Manag City Council Approval: City Clerk Amount Debit Credit $200,000.00 Automatic $200,000.00 7 -- 17 Date _3b it Date UdLC /7,0 7-6