City Council
Staff Report
From: City Manager
Report Type: CONSENT CALENDAR
Lead Department: Public Works
Meeting Date: June 18, 2024
Report #:2403-2820
TITLE
Approval of 1) Construction Contract No. C24190876 with Valentine Corporation in the Amount of $667,369 and Authorization for the City Manager or Their Designee to Negotiate and Execute Change Orders for Related Additional but Unforeseen Work that May Develop During the Project Up to a Not-to-Exceed Amount of $100,105; and 2) Amendment No. 1 to Contract No.
S24189099 with H.T. Harvey & Associates in an Amount Not to Exceed $131,732, for Biological Compliance and Post Construction Monitoring and Restoration, for the Baylands Boardwalk Pilings Repair Project Capital Improvement Program PE-24000; CEQA status – exempt under CEQA Guidelines Section 15301
RECOMMENDATION
Staff recommends that Council:
1. Approve and authorize the City Manager or their designee to execute Construction Contract No. C24190876 with Valentine Corporation in the amount of $667,369 for the Baylands Boardwalk Piling Repair project (PE-24000);
2. Authorize the City Manager or their designee to negotiate and execute one or more change orders to the contract with Valentine Corporation for related, additional, and unforeseen work that may develop during the project, the total value of which shall not exceed $100,105; and
3. Approve and authorize the City Manager or their designee to execute Amendment No. 1 to Contract No. S24189099 with H.T. Harvey & Associates for biological compliance and post construction monitoring and restoration in an amount not-to-exceed $131,731.60 and extend the term of the contract through June 30, 2026. This amendment results in a revised total contract not-to-exceed amount of $181,166.60.
EXECUTIVE SUMMARY
In January 2019, the City replaced the old Baylands Boardwalk located at the Lucy Evans Baylands Nature Interpretive Center (Interpretive Center) with a new accessible boardwalk of the same length and on the same alignment as the old boardwalk. The replacement boardwalk’s pilings were constructed of Alaskan Yellow Cedar (AYC), a naturally durable, decay- resistant, non-pressure treated wood in compliance with the project permits. In fall 2022, the City observed substantial degradation of the boardwalk’s vertical pilings under the observation
platform caused by aquatic invertebrates. The damage is most severe where pilings are typically under water. The City temporarily repaired a few damaged piles while a long-term repair solution was identified. The City then retained a consulting team to help develop a long- term repair solution and a permitting approach. The repair solution identified includes installation of a fiber reinforced polymer (FRP) wrap around the pilings and grouting the internal spaces between the pilings and the FRP wrap.
All required regulatory permits have been obtained except the formal amendment to the San Francisco Bay Conservation and Development Commission permit, which is anticipated in June 2024. Upon Council approval of the contracts, construction is anticipated to begin in September 2024 and be completed by December 2024.
BACKGROUND
The Baylands Boardwalk located at the Interpretive Center was replaced in January 20191. The replacement boardwalk was constructed of various types of timber materials to match the old structure style and character. The boardwalk is approximately 850 feet long and 5 feet wide with four intermediate overlooks and an observation platform in the San Francisco Bay.
The pilings of the old boardwalk were constructed of pressure treated wood. In order to protect the special status species, the regulatory permits required that the pilings and other wood structures of the replacement boardwalk not be pressure treated with creosote to prevent the leaching of toxic chemicals into the marsh. Therefore, the replacement boardwalk’s piles were constructed of AYC, a naturally durable, decay-resistant, non-pressure treated wood.
In fall 2022, the City observed at low tide that substantial degradation of the boardwalk’s pilings had occurred under the boardwalk’s observation platform. A biologist from the Smithsonian Ecological Research Center visited the boardwalk during the winter of 2022-23 and identified the aquatic invertebrates causing the damage as non-native species. The damage is most severe where pilings are typically under water, specifically, beneath the observation platform at the end of the boardwalk and at locations where pilings extend into the tidal channel. Damage has not yet observed to pilings that are not regularly exposed to bay water because pilings are encased in bay mud up to the elevation of the tidal marsh plain. The damage is progressing and has affected numerous pilings.
Public Works staff consulted with the City Attorney’s Office to assess liability of the boardwalk designer for the specification of AYC wood, and we determined that it would be difficult to pursue a claim for defective design given the regulatory restrictions and the conventional knowledge about AYC’s water-resistant qualities.
In December 2022, the City temporarily restored the four most damaged pilings by securing new wood along the damaged sections. Staff has been conducting periodic inspections of the 1 City Council, June 25, 2018; Agenda Item #13; SR #9301 https://www.cityofpaloalto.org/files/assets/public/v/1/id.-9301-award-of-baylands-boardwalk-improvements- construction-project.pdf
pilings while a long-term repair solution was being developed and coordinated with the regulatory agencies. Because all pilings are occasionally exposed to bay water during high tides, staff decided that all 157 pilings are susceptible to damage by the aquatic invertebrates and that all pilings should be repaired or protected.
In May 2023, the City retained a consulting team consisting of H.T. Harvey & Associates and Biggs Cardosa Associates to help develop a long-term repair solution concept, determine a permitting approach with the relevant regulatory agencies, and characterize impacts to jurisdictional habitats. In August 2023, the City entered into separate professional services agreements with H.T. Harvey & Associates and Biggs Cardosa Associates to prepare regulatory permit applications, and design and bid documents, respectively.
The repair consists of applying a pilings restoration system consisting of installing a columnar FRP sheet around the portion of the pilings, placing spacers to separate the pilings from the FRP sheet, installing FRP reinforcement, and filling the FRP sheet with grout. This would restore piling strength and provide a barrier to future degradation. The vertical length of the repair would be 4 feet along most of the boardwalk. Where the tidal channel beneath the boardwalk deepens to 3-5 feet, the vertical length of the repair may be up to 8 feet on a case-by-case basis. The repair methods are customized to avoid and minimize impacts to tidal marsh vegetation and associated wildlife.
The project required consultation with and permits from the following regulatory agencies prior to construction:
United States Army Corps of Engineers (USACE) Section 404 Nationwide Permit California Regional Water Quality Control Board (RWQCB) Section 401 Water Quality Certification
San Francisco Bay Conservation and Development Commission (BCDC) Permit Amendment
United States Fish and Wildlife Service (USFWS) Biological Opinion National Marine Fisheries Services, Section 7 Letter of Concurrence The formal Amendment to the BCDC permit is anticipated in June 2024 but all other regulatory permits listed above have been obtained. During the permitting process, staff and the consulting team advised the regulatory agencies of the problems that resulted from their restriction on the use of pressure treated wood.
Work in the Baylands can occur between September 1 and January 31, outside of the California Ridgway’s rail breeding season. The permits have been obtained for up to two such 5 month- long work windows, but the City anticipates completing repairs to all 157 pilings in one work window as part of this construction contract.
The project permits require biological monitoring and compliance during construction and monitoring and reporting related to recovery of marsh vegetation post construction.
ANALYSIS
Per Palo Alto Municipal Code (PAMC) 2.30.360(i), the City retained HT Harvey & Associates (and Biggs Cardosa Associates) to help develop a long-term repair solution. Both Professional Services Agreements were under $50,000.
Since H.T. Harvey & Associates is familiar with the project and has qualified staff available, an exemption to competitive solicitation pursuant to PAMC section 2.30.360(b) was approved by the City Manager for this Amendment No. 1. Staff considered conducting an expedited RFP solicitation, but determined it would be impractical to do so, since any delays would potentially result in further degradation of the piles and threaten the structure.
Staff recommends approval of Amendment No. 1 to Contract S24189099 (Attachment A) with H.T Harvey & Associates to provide biological monitoring and regulatory permit compliance services. Staff is also amending Contract No. S24189098 with Biggs Cardosa Associates to provide construction support services. The resulting total contract not-to-exceed amount of $76,747 is within the City Manager’s contract approval authority.
Bid Process
On April 3, 2024, a notice inviting formal bids for the Baylands Boardwalk Pilings Repair Project was posted on OpenGov, the City’s eProcurement System. The bidding period was 28 calendar days. On May 1, 2024, one bid was received from a qualified contractor as listed in the attached Bid Summary (Attachment B). The table below includes a brief summary of the bid process.
Table 1: Summary of invitation for Bids
Project Bid Name/Number Baylands Boardwalk Pilings Repair Project/IFB190876 Proposed Length of Project 169 days
Number of Bid Packages Downloaded by Contractors 26
Number of Bid Packages Downloaded by Builder’s
Exchanges
1 Total Days to Respond to Bid 28
Mandatory Pre-Bid Meeting Yes (non-mandatory)
Number of Company Attendees at Pre-Bid Meeting 4
Number of Bids Received 1
Base Bid Price Range $587,094
Bid Alternates Price $80,275
Public Link to Solicitation https://procurement.opengov.com/portal/palo-alto- ca/projects/88561
The engineer’s estimate is $456,825 for the base bid and $64,375 for the bid alternates. The bid price from the sole bidder is $587,094 for base bid items and $80,275 for additive bid alternates. The base bid price is approximately 29% above the engineer’s estimate and the additive bid alternates price is approximately 25% above the engineer’s estimate. The total base bid and alternates bid pricing is approximately 28% above the engineer’s estimate.
The additive bid alternate items include repairs to 22 pilings between the Interpretive Center and first overlook. No damage has been observed in these piles yet, apparently because they are primarily encased into the marsh soil and dense vegetation and are relatively less exposed to the Bay water for a prolonged time. Staff recommends awarding all additive bid items due to the potential of future degradation of these piles. Should the City need to repair these piles in the future, there could be significant cost implications with construction and permitting.
Staff has reviewed the bid submitted and recommends the base bid and additive bid alternates totaling $667,369 submitted by Valentine Corporation be accepted, and Valentine Corporation be declared the lowest responsible bidder. Staff recommends approval of Construction Contract No. C241908762. The construction contingency amount of $100,105, which equals fifteen percent of the total contract, is requested for related, additional, but unforeseen work which may develop during the project. Staff checked references provided by Valentine Corporation for other similar projects completed by the bidder and received very positive feedback about their work performance. Staff also checked the contractor’s license with the Contractor’s State License Board and confirmed that Valentine Corporation has an active and current license.
Staff reached out to potential responsive bidders to understand why they did not submit a bid.
The reasons noted by the bidders were that they did not have the crew available to complete the work within the project timeline and the engineer’s estimate was lower than they thought appropriate.
Upon Council approval and the execution of the contract, the contractor may begin preparatory work such as ordering materials and preparing submittals. Onsite construction is expected to begin in September 2024 and be completed by December 2024.
FISCAL/RESOURCE IMPACT
Funding for the recommendations in this report is available in the Baylands Boardwalk Pilings Repair project (PE-24000) pending Council’s approval of the Fiscal Year 2025 Capital Budget on June 17, 2024.
STAKEHOLDER ENGAGEMENT
Per the BCDC requirements, a Notice of Permit Application was posted at the Interpretive Center in December 2023 notifying the community of the permit application for the proposed repairs. It is assumed that the contractor would be able to repair 4-5 piles in one work shift. The Contractor will maintain as much of the Boardwalk available to public access as is practical and safe throughout construction. The location of intermittent closure of portions of boardwalk will 2 Valentine Corporation Construction Contract for Boardwalk Pilings Repair Project C24190876; www.cityofpaloalto.org/files/assets/public/v/1/public-works/engineering-services/c24190876-valentine- corp_cc_staff-report.pdf
depend on the specific work site within the boardwalk being addressed on a given work shift. In general, the portion of the boardwalk closed on a work shift to address repairs is anticipated to be opened for public access after end of the work shift as appropriate. However, due to the narrow width of the boardwalk, it is unsafe for the public to try to pass the contractor’s work area and the segment of the boardwalk north of the contractor’s work zone may be closed during each work shift. Appropriate signage will be posted, and intermittent temporary closures will be implemented during construction.
ENVIRONMENTAL REVIEW
The project is categorically exempt from the California Environmental Quality Act (CEQA) under Section 15301 (Repair of existing facilities).
ATTACHMENTS
Attachment A: S24189099 H.T. Harvey Associates – Amendment No. 1 Attachment B: Bid Summary
APPROVED BY:
Brad Eggleston, Director Public Works/City Engineer