1 STAFF REPORT
DAT
E: September 26, 2023
T
O: Justin Hess, City Manager
F
ROM: Dawn Roth Lindell, General Manager, Burbank Water and Power VIA: Richard Wilson, Assistant General Manager, Water Systems BY: Bassil Nahhas, Principal Civil Engineer
S
UBJECT: Adoption of Resolution Approving CEQA Exemption for Existing Facilities and Replacement or Reconstruction and Execute a Progres sive Design - Build Contract with W. A. Rasic Construction for 2-1/4 Miles of Water Pipelines on Magnolia Blvd, Hollywood Way and Upper Country Club Drive and the Replacement of 10 Valves at Various Locations and Delegate Authority for Approving Plans and Specifications
RE
COMMENDATION
Adopt A RESOLUTION APPROVING CEQA EXEMPTION FOR EXISTING FACILITIES
AND REPLACEMENT OR RECONSTRUCTION AND AUTHORIZE THE GENERAL
MANAGER OF BURBANK WATER AND POWER TO NEGOTIATE AND EXECUTE A PROGRESSIVE DESIGN-BUILD CONTRACT WITH W. A. RASIC CONSTRUCTION
FOR WATER PIPELINES AND VALVES REPLACEMENT PROJECT AND DELEGATE AUTHORITY FOR APPROVING PLANS AND SPECIFICATIONS (Attachment 1).
BACKG
ROUND
Burbank Water and Power ( BWP) must replace aged valves and pipes throughout the City of Burbank (city) at a faster pace than we are able to , using our own maintenance and construction crew. Our pipes are aging faster than we can replace them . Four separate projects have been packaged together into one contract to be managed as a partnership between the city , the designer, and the contractor. This teamwork approach has all stakeholders involved to develop the general conditions and project constraints from the beginning and as the design progresses (i.e., progressive design-build, “PD/B”).
This approach lends itself to identifying and eliminating ambiguous requirements that, under traditional contracts, can lead to construction delays, change orders, and strained contractual relationships. The progressive design-build delivery method allows the project team to explore alternative construction materials, equipment, and methods to shorten lead times and reduce costs while still meeting the project requirements.
WATER AND
POWER
2 Projects
• Upper Country Club Pipeline Replacement (1,450 feet):
Country Club Drive is a narrow street that poses considerable challenges for equipment access . This unlined 6” steel pipe was installed in 1946 and has sustained ten main breaks in the last ten years. Replacing this heavily tuberculated pipe will improve both service reliability and water quality in this neighborhood. • Magnolia Pipeline Replacement (7,950 feet):
Underneath Magnolia Boulevard, which is a primary commercial thoroughfare in Burbank, is a 12” brittle cast iron pipeline that was installed in 1927 and has sustained four main breaks in the last four years. An analysis conducted in 2021 showed a high risk of failure due to the thinning of the pipe from internal and external corrosion. The analysis also found that another main break could result in a major impact on traffic, public safety, and economic hardship to affected businesses nearby. This project will replace the existing 12” cast iron pipeline with a new ductile iron pip eline and will add f ire hydrants to augment the firefighting capability of the water system in the area.
• Hollywood Way Pipeline Cleaning & Lining (2,500 feet):
This 20” cast iron pipe was installed in 1927, and although it does not have a history of water main breaks , the pipe is heavily tuberculated. Physical sampling and testing of this pipeline segment confirmed that it is still in good structural condition, which makes it a prime candidate for cleaning (removal of the internal tuberculation) and lining the pipe with cement mortar lining. Performing this work now while the pipe is still in good condition will extend its life and restore its full hydraulic capacity , which will reduce energy costs to pump the water . The expected cost to clean and line is $875,000, while the cost of replacement would be more than $3,500,000 at today’s prices. Cleaning and cement mortar lining of the pipe needs to be performed by a specialty contractor that has the experience and equipment to perform this work.
• Replacement of Transmission Valves (Quantity of 10):
These valves isolate large areas within Burbank and are needed during emergencies and special operating conditions. Based on our field experience , transmission valves have a life span of approximately seventy years. Unlike pipes, transmission valves are mechanical devices with moving parts that corrode and bind and cannot reliably be maintained and operated once they reach seventy years. Replacing these valves will require large and deep excavations, usually in or near intersections , and will require trench shoring. This work must be staffed with the appropriate number of people to maintain safety and work efficiently.
DISCUSSION
Advantages of Progressive Design/Build (PD/B)
The progressive design-build (PD/B) approach offers the following advantages:
• PD/B project delivery approach creates an environment that encourages collaboration and teamwork.
• Since the team is responsible for both design and construction, they can identif y and eliminate ambiguous requirements that, under traditional contracts, can lead to construction delays, change orders, and strained contractual relationships. 3 • The project team “progressively” moves toward a final design and contract price that reduces overall cost and provides more certainty with the final construction price.
• The primary selection criteria for the PD/B team are based on qualifications and experience, ensuring that the best-qualified team is selected, instead of relying on the traditional lowest bidder.
• The lowest bidder may not have the best team or may have bid low to secure the contract and then rely on change orders during construction to turn a profit . The PD/B delivery method mitigates this issue by removing ambiguity and addressing construction challenges during the design phase.
• PD/B will accelerate the project delivery timeline since materials can be purchased as the design progresses. Advance material purchasing would be especially helpful with the currently long lead time on construction materials for water pipelines.
This project will be delivered in two distinct phases. Phase 1 includes 60% design and cost development, preconstruction services , permitting, and the negotiation of a guaranteed maximum price. Phase 2 includes the final 100% design, construction, testing, and final acceptance. If we cannot agree on the guaranteed maximum price, the design will be completed, and the final plans and specifications will be provided to BWP.
Requests for Qualifications and Proposals
As required by the C ity Charter, the procurement for any design-build project must be conducted in two steps ; 1) request for qualifications (RFQ); and 2) request for proposal (RFP). Given the complexity of this project, w e executed a task order with our on- call consultant, Black & Veatch , to develop the RFQ, as they have staff who are experts in design-build contracts/projects.
We received five statements of qualifications (SOQ) in response to the RFQ. Staff from BWP and Black & Veatch separately reviewed, evaluated, and scored the submissions on qualifications, technical merit, cost, and experience in potable water pipeline design and construction. Additional ly, the submissions were reviewed to ensure all SOQs met essential requirements for pre -qualification. Furthermore, BWP Finance reviewed and scored financial statements submittals based on credit score, debt ratio, current ratio, total asset, net income, and days cash on hand.
The top two firms were shortlisted, submitted their proposals , and both attended a mandatory pre-proposal conference to discuss the RFP requirements and to answer questions from both firms. The Purchasing Division received and reviewed the proposals to ensure compliance with submittal instructions. C ost proposals were in separate envelopes that remained with the Purchasing Division, while the technical proposals were forwarded to BWP and Black & Veatch for review. BWP and Black & Veatch separately reviewed and scored the proposals based only on technical information submitted by the two teams.
To further assess the proposals, interviews were conducted separately with each team.
Scores from BWP and Black & Veatch were sent to the Purchasing Division, who 4 compiled the scores and added price scoring for phase 1 and phase 2. The technical proposals were reviewed based on the following criteria:
• Technical approach;
• Project team;
• Project schedule;
• Quality control;
• Interviews;
• Phase I pricing; and
• Phase 2 overhead & profit
Selection
The proposers, W.A. Rasic and Teichert, are highly qualified and competent firms. Their proposals met all the requirements, and both companies would be capable of executing the project. However, W.A. Rasic ultimately scored higher and should be selected for the following reasons:
• W.A. Rasic’s experience includes two design-build pipeline projects located in Los Angeles County.
• Civiltec, which is the designer arm of W.A. Rasic, is located in Los Angeles County and is familiar with the permitting process and requirements from local Los Angeles agencies.
• W.A. Rasic provided a comprehensive team that includes a surveyor, geotechnical engineer, and traffic engineer. In addition, W.A. Rasic included designated staff for permits and public relations.
• W.A. Rasic owns their equipment and will self-perform many of the construction tasks, including traffic control, trench paving, and potholing. • W.A. Rasic’s construction superintendent attended and actively participated in the interview.
• W.A. Rasic provided a detailed discussion about the project’s potential impacts on traffic and businesses, hence would be more attentive to the needs of businesses, residents, and the traveling public.
• W.A. Rasic’s price for phase 1 services is less; $898,363 for W.A. Rasic versus $1,302,844 for Teichert
• W.A. Rasic’s price for overhead and profit is less; 12% for W.A. Rasic versus 14% for Teichert
Schedule
The preliminary project schedule is as follows:
BWP Board Recommendation September 7, 2023
City Council Approval September 26, 2023
Issuance of Purchase Order (PO) October 24, 2023
Notice to Proceed for Phase 1 October 25, 2023
Completion of 60% Design April 30, 2024
Price and Scope Negotiation for Phase 2 May 1 to June 28, 2024 Notice to Proceed Phase 2 July 1, 2024
Project Completion August 29, 2025
5 Design Immunity
California Gov. Code, Section 830.6 provides for design immunity to the city when the City Council approves the final plans and specifications. Design immunity is a liability protection provided for public projects when plans have been reasonably approved, and errors may have been found later. In a traditional design-bid-build project, design or plan approval occurs when City Council awards the construction project just after bidding. With a design-build project, final plans and specifications are not completed until after City Council approval. Therefore, in order for the city to retain design immunity, City Council or any employee exercising discretionary authority must approve the plans and specifications for a project using the design -build method. The City Council may also delegate this authority. Accordingly, staff is also requesting that the BWP Board recommend City Council to delegate authority for approving plans and specifications to the BWP Assistant General Manager of Water Systems, or their designee.
ENVIRONMENTAL REVIEW
The project is statutorily exempt from the requirements of the California Environmental Quality Act (CEQA) per Section 15301 (Existing Facilities) in connection with the repair, and maintenance of alterations of existing facilities that involve negligible expansion of use and Section 15302 (Reconstruction and Replacement) in connection with the reconstruction and replacement of existing structures and facilities where the reconstructed or replaced facilities are on the same site and have substantially the same purpose and capacity. A notice of exemption (NOE) will be filed with the County Clerk's Office.
FISCAL IMPACT
BWP has budgeted $7,650,000 in approved fiscal year 2023-2024 funds in BWP water division’s engineering cost center (PS51D) budget.
CONCLUSION
Staff recommend that the City Council adopt a CEQA exemption, delegate authority to the General Manager of BWP to negotiate, award, finalize, and execute a progressive design-build contract with W.A. Rasic Construction for the design and construction of water pipelines and valve replacements, and delegate authority for approving plans and specifications of the progressive design- build contract to the BWP General Manager, or their designee, in order to retain design immunity.
ATTACHMENTS
Attachment 1 – Resolution
Attachment 2 – Phase 1 Scope of Services
Attachment 3 – W.A. Rasic Construction Proposal
Attachment 4 – Progressive Design-Build Draft Agreement RFP 1511