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Home My WebLink About08 - St. James Road Sewer Relocation & CDS Unit InstallationTO: FROM PREPARED BY: PHONE: TITLE: CITY OF NEWPORT BEACH City Council Staff Report August 12, 2014 Agenda Item No. 8. HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL David A. Webb, Public Works Director- (949) 644 -3330, dawebb @newportbeachca.gov Frank Tran, Civil Engineer (949) 644 -3340 St. James Road Sewer Relocation and CDS Unit Installation — Award of Contract No. 4910 (CAP12 -0027) ABSTRACT: Staff has received construction bids for the Saint James Road Sewer Relocation project and requests the City Council's approval to award the contract to Paulus Engineering, Inc. The project includes installation of a trash - removal device called a CDS unit. RECOMMENDATION: a) Approve the project drawings and specifications; b) Award Contract No. 4910 to Paulus Engineering, Inc. for the total bid price of $539,645.00, and authorize the Mayor and City Clerk to execute the contract; c) Establish a contingency of $54,000.00 to cover the cost of unforeseen work not included in the original contract; and d) Approve Budget Amendment No. 15BA -007 transferring $185,600 from Account No. 7541- C7001003 (Wastewater Master Plan Improvements) to Account No. 7541- C7002005 (St. James Road Sewer Relocation) and appropriating $197,000 from the unappropriated General Fund balance to Account No. 7012- C7002005 (St. James Road Sewer Relocation). FUNDING REQUIREMENTS: Upon approval of the proposed Budget Amendment, there will be sufficient funding in the following account for the award of this contract: Account Description Account Number Amount General Fund 7012- C7002005 $ 197,000.00 Wastewater Enterprise 7541- C7002005 $ 409,000.00 Total: $ 606,000.00 Proposed uses are as follows: Vendor Paulus Engineering, Inc. Paulus Engineering, Inc. Harrington Geotechnical, Various DISCUSSION: Purpose Construction Contract Construction Contingency Inc. Geotechnical Testing Printing & Incidentals Total: Amount $ 539,645.00 $ 54,000.00 $ 11,430.00 $ 925.00 $ 606,000.00 At 10:00 a.m. on July 9, 2014, the City Clerk opened and read the following bids for this project: TOTAL BID AMOUNT $539,645.00 $747,585.00 $795,000.00 $849,496.00 $869,767.00* $942,095.00 $979,795.00 *Bid as read $872,662.00 The low bid amount is 13% lower than the Engineer's Estimate of $622,000. The low bidder, Paulus Engineering, Inc., possesses a California state contractor's license classification "A" as required by the project specifications. A check of the contractor's references indicates satisfactory completion of similar projects for the City of Newport Beach and other public agencies. Paulus Engineering, Inc. also completed the Central Balboa Peninsula Water and Sewer Improvement project for the City in 2010. The work necessary to complete this contract includes constructing sewer improvements such as sewer mains, manholes, laterals, and cleanouts within the 21 -ft public sewer easement on the property at 745 Dover Drive obtained last year. The goal of the project is to relocate and replace a deteriorated steel sewer main on the hillside behind homes on St. James Place and St. James Road. The existing sewer main is underneath decks, patios and, in one property, underneath portions of the house. Replacement of the sewer in its current location would be very difficult and expensive. Staff has been working with seven homeowners on St. James so as to eliminate the hillside sewer on their properties by constructing this improvement project. Five residences either granted a new sewer easement or signed access agreements to allow construction of private sewer laterals that will connect to this new proposed sewer. This work also includes replacing the 8 -in sewer line between properties at 724 and 730 Saint James Place. Staff recommends approval of the contract award to include a contingency allowance of approximately 10% to cover the cost of unforeseen conditions. As part of this sewer project, a hydrodynamic separation storm drain treatment unit on Dover Drive is included and a General Fund budget appropriation of $197,000 is requested. This work was originally planned with the installation of other storm drain interceptors throughout the City recently awarded by City Council on June 10, 2014. However, it was determined prior to the bidding, that there was insufficient grant funds for this Dover Drive unit and that better cost efficiencies and minimization of public inconvenience would be realized by adding this treatment unit to this nearby sewer relocation project. Although General Fund monies are requested for this specific unit, the City was successful in competing and securing approximately $1.1 million in grant funding from OCTA to construct storm drain treatment units to improve water quality throughout the City. These storm drain locations receive heavy street litter flows during storm events and hydrodynamic separator inceptor units will capture it before entering the ocean and bay water. As part of those grant funds, the City is required to use a local General Fund match. Staff received a formal bid protest dated July 21, 2014 from the Laborers Pacific Southwest Regional BIDDER Low Paulus Engineering, Inc. 2 Big Ben Inc. 3 SND Construction Inc. 4 TE Roberts Incorporated 5 GCI Construction, Inc. 6 GRFCO Inc. 7 Ramona, Inc. TOTAL BID AMOUNT $539,645.00 $747,585.00 $795,000.00 $849,496.00 $869,767.00* $942,095.00 $979,795.00 *Bid as read $872,662.00 The low bid amount is 13% lower than the Engineer's Estimate of $622,000. The low bidder, Paulus Engineering, Inc., possesses a California state contractor's license classification "A" as required by the project specifications. A check of the contractor's references indicates satisfactory completion of similar projects for the City of Newport Beach and other public agencies. Paulus Engineering, Inc. also completed the Central Balboa Peninsula Water and Sewer Improvement project for the City in 2010. The work necessary to complete this contract includes constructing sewer improvements such as sewer mains, manholes, laterals, and cleanouts within the 21 -ft public sewer easement on the property at 745 Dover Drive obtained last year. The goal of the project is to relocate and replace a deteriorated steel sewer main on the hillside behind homes on St. James Place and St. James Road. The existing sewer main is underneath decks, patios and, in one property, underneath portions of the house. Replacement of the sewer in its current location would be very difficult and expensive. Staff has been working with seven homeowners on St. James so as to eliminate the hillside sewer on their properties by constructing this improvement project. Five residences either granted a new sewer easement or signed access agreements to allow construction of private sewer laterals that will connect to this new proposed sewer. This work also includes replacing the 8 -in sewer line between properties at 724 and 730 Saint James Place. Staff recommends approval of the contract award to include a contingency allowance of approximately 10% to cover the cost of unforeseen conditions. As part of this sewer project, a hydrodynamic separation storm drain treatment unit on Dover Drive is included and a General Fund budget appropriation of $197,000 is requested. This work was originally planned with the installation of other storm drain interceptors throughout the City recently awarded by City Council on June 10, 2014. However, it was determined prior to the bidding, that there was insufficient grant funds for this Dover Drive unit and that better cost efficiencies and minimization of public inconvenience would be realized by adding this treatment unit to this nearby sewer relocation project. Although General Fund monies are requested for this specific unit, the City was successful in competing and securing approximately $1.1 million in grant funding from OCTA to construct storm drain treatment units to improve water quality throughout the City. These storm drain locations receive heavy street litter flows during storm events and hydrodynamic separator inceptor units will capture it before entering the ocean and bay water. As part of those grant funds, the City is required to use a local General Fund match. Staff received a formal bid protest dated July 21, 2014 from the Laborers Pacific Southwest Regional Organizing Coalition regarding the large difference in bids between Paulus Engineering, Inc. and the second low bidder. Staff discussed this issue with Paulus Engineering, Inc., reviewed the contractor's references, including previous work with the City, and determined that Paulus Engineering, Inc. has submitted a responsive bid. The contractor will be responsible to ensure all work is completed properly and in accordance with all requirements, laws and regulations including Prevailing Wage. Therefore, staff recommends approval of the contract. Pursuant to the contract specifications, the Contractor will have 90 consecutive working days to complete the work. ENVIRONMENTAL REVIEW: Staff recommends the City Council find this project exempt from the California Environmental Quality Act ( "CEQA ") pursuant to Section 15302 (replacement of existing facilities involving negligible expansion of capacity) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential to have a significant effect on the environment. 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: Description Attachment A - Location Map Attachment B - Budget Amendment � s 'i 5Z s ATTACHMENT A SEWER tAL CITY OF NEWPORT BEACH ST JAMES SEWER RELOCATION PUBLIC WORKS DEPARTMENT LOCATION MAP C -4910 1 08/12/2014 ATTACHMENT B City of Newport Beach NO. BA- 15BA -007 BUDGET AMENDMENT 2014 -15 AMOUNT: $3s2,600.00 EFFECT ON BUDGETARY FUND BALANCE: Increase Revenue Estimates Increase in Budgetary Fund Balance NX Increase Expenditure Appropriations AND �X Decrease in Budgetary Fund Balance Transfer Budget Appropriations No effect on Budgetary Fund Balance SOURCE: X from existing budget appropriations from additional estimated revenues X from unappropriated fund balance EXPLANATION: This budget amendment is requested to provide for the following: To increase expenditure appropriations from the General Fund fund balance and transfer appropriations from the Wastewater Master Plan Program into the St. James Place Sewer Relocation accounts in budget units 7541 and 7012 in order to secure sufficient funds for the St. James Road Sewer Relocation project and for the award of the associated construction contract to PEI. ACCOUNTING ENTRY: BUDGETARY FUND BALANCE Fund Account 010 3605 REVENUE ESTIMATES (3601) Fund /Division Account EXPENDITUREAPPROPRIATIONS (3603) Description General Fund - Fund Balance Description Description Division Number 7541 Sewer Main Replacement Account Number C7001003 Wastewater Mst Pln Prgm Account Number C7002005 St. James PI Sewer Relctn Division Number 7012 Drainage Account Number C7002005 St. James PI Sewer Relctn Amount Debit Credit $197,000.00 $185,600.00 $185,600.00 $197,000.00 . Automatic System Entry. Signed: g►— S sy Fi ial Approval: Finance Director Date Signed: Signed: Approval: City City Council Approval: City Clerk Date Date