July 11, 2023
Department
DATE: July 11, 2023
TO: Mayor Martinez and Members of the City Council
FROM:
Daniel Chavarria, PE, Director of Public Works
Wendy Wellbrock, PE, Senior Civil Engineer
Ken Cheng, PE, Senior Civil Engineer
Subject:
Contract with UST Services, Inc. for Construction of the Flood Risk Reduction in the Rheem Creek Watershed
Project
FINANCIAL IMPACT: The City has been awarded grant funding from the Californica Natural Resources Agency (CNRA). CNRA
grant funding in the amount of $742,449 and $650,000 in the General Capital Fund is available for construction.
City staff is recommending a transfer of $650,000 from
the General Capital Fund for the Santa Rita Road Piling Project to the Flood Risk Reduction in the Rheem Creek
Watershed Project. The Santa Rita Road Piling Project
to be funded from Risk Management funds. This will
result in no new impact to the General Fund. Account
String:40623431-400708 (CNRA grant, Stormwater
Fund) and 20136031-400708 (General Capital Fund)
PREVIOUS COUNCIL
ACTION:
Council adopted a resolution authorizing the grant
application on July 6, 2021, and accepted and
appropriated the grant award on July 19, 2022
STATEMENT OF THE
ISSUE:
City staff is requesting approval to award a construction contract for the Flood Risk Reduction project in the
Rheem Creek Watershed Project to UST Services, Inc. in
an amount not to exceed $1,233,190. City staff proposes a total project budget of $1,356,509. This project budget includes the aforementioned contract award amount and
a 10 percent contingency in the amount of $123,319.
AGENDA
REPORT
July 11, 2023
RECOMMENDED ACTION:
ADOPT a resolution authorizing the execution of a
construction contract in accordance with the approved
plans and specifications with UST Services, Inc., for the Flood Risk Reduction in the Rheem Creek Watershed
Project, in an amount not to exceed $1,233,190; and
AUTHORIZE the Director of Public Works to approve
changes orders, if necessary, for up to the total 10
percent contingency amount of $123,319 - Public Works
Department (Daniel Chavarria 510-620-5478/ Wendy
Wellbrock 510- 307-8108).
DISCUSSION:
For over 20 years, the Fairmede neighborhood of Richmond and adjacent unincorporated Rollingwood neighborhood have suffered from flooding related to overflows from Rheem Creek. In 2019, the City collaborated with American Rivers, the Watershed Project, Restoration Design Group, and other local partners to complete technical studies and prepare community-supported plans to solve flooding issues along Rheem Creek. That project, funded by a $274,515 grant from the Coastal Conservancy, included a topographic survey, 65 percent designs, a maintenance & monitoring plan, and permits submitted to the appropriate regulatory agencies. Project partners also did extensive community outreach to survey residents about their experience of the flooding and what they would like to see in the construction project. Due to COVID-19 closures, some of the in-person outreach was replaced with the creation of a “storybook” to visualize the history and future of the creek.
In June of 2020 the City, along with the above-mentioned partners, submitted an application to the Urban Flood Protection Grant Program requesting grant funding for final design and project implementation for a restoration project. Construction of the proposed restoration project will reduce flooding by removing invasive species and excessive sediment, grading a geomorphically stable channel, and planting native riparian vegetation to improve creek habitat. In September of 2021, the City was awarded grant funding in the amount of $1,598,844 for the Flood Risk Reduction in the Rheem Creek Watershed Project. $742,449 is reserved for the construction contract, $360,425 is reserved for revegetation work, $121,675 is reserved for construction contingency and the remaining funds are budgeted for non-construction costs including design, outreach, project, and grant management.
The City advertised the project for bids on June 6, 2023, and bids were opened on June 23, 2023. The City received one bid from UST Services, Inc. for a base bid amount of $1,233,790.
UST Services, Inc. was the sole and apparent lowest bidder. City staff reviewed the bid and found mathematical errors in the summation of bid items in the total base bid price.
July 11, 2023
Upon evaluating the total base bid price based on bid items, it was found that the correct sum was $1,233,190.
City staff has determined that the low bid is responsive and responsible. As part of the services needed to implement the Project, Public Works staff is recommending that City Council award the construction contract to UST Services, Inc. for the Flood Risk Reduction in the Rheem Creek Watershed Project in an amount not to exceed $1,233,190; and authorize the Public Works Director to approve change orders, if necessary, for up to the contingency amount of $123,319 (which is 10 percent of the construction award amount).
Pursuant to the California Department of Fish and Wildlife Streambed Alteration Agreement, project activities in Rheem Creek are limited to the period between May 1 and October 31 to minimize adverse impacts to fish and wildlife and their activities.
Award of the construction contract must be executed in July in order to complete construction activities by October 31, 2023. Otherwise, City staff will have to recommend City Council reject the bid and wait until Spring of 2024 to rebid the project.
Construction costs due to inflation have sharply increased in recent years. With construction costs continuing to trend upward, delaying the project to 2024 may result in a larger financial impact to the City.
As aforementioned, a portion of the grant is reserved for the revegetation phase of the project, and so there are not enough funds for the construction contract. The Public Works Department worked with the Finance Department on this funding issue. City staff recommends a transfer of $650,000 of monies from the General Capital Fund (Santa Rita Road Piling Project) to this project. Any balance remaining at the completion of the project will be returned to the General Fund or to another project. The Santa Rita Road Piling Project can be funded from Risk Management Funding.
Environmental Documentation
The proposed project was determined to be categorically exempt per CEQA Guidelines Section 15333, Small Habitat Restoration Project. The project area is less than one acre and would not pose an adverse impact to endangered, rare, or threatened species or their habitat, will not disturb hazardous materials, and will not result in significant impacts.
DOCUMENTS ATTACHED:
Attachment 1 – Resolution
Attachment 2 – Bid Results
Attachment 3 – Bid Documents