July 2, 2024
Public Works
DATE: July 2, 2024
TO: Mayor Martinez and Members of the City Council
FROM:
Daniel Chavarria, PE, Director of Public Works
Robert Armijo, PE, Deputy Director of Public Works
Mary Phelps, Water Resource Division Manager
Subject:
Proposed Contract Amendment for the F iscal Year 2024-
25 Phase I Grade 5 RAA Sewer Line Replacement and/or
Rehabilitation of the Sanitary Sewer Collection System as stated in the Baykeeper Settlement Agreement.
FINANCIAL IMPACT: The funding for this project will be paid from Wastewater Enterprise Funds – Org/Obj 40322931-400708-22230.
PREVIOUS COUNCIL
ACTION:
September 22, 2022
STATEMENT OF THE
ISSUE:
Staff is recommending City Council approval of a
resolution for Veolia to issue subcontract to APB General Engineering to replace and/or rehabilitate additional
sanitary sewer pipelines in the Richmond Municipal
Sewer District collection system. The City is required to replace and/or rehabilitate a minimum of two (2) miles
annually per the Baykeeper Settlement Agreement.
RECOMMENDED ACTION:
ADOPT a resolution authorizing the issuance of a Task
Authorization to Veolia Water to manage (on behalf of the City) subcontracts with: APB General Engineering, VW
Housen and Questa Engineers to replace and/or
rehabilitate additional sanitary sewer pipelines in the amount of $2,523,963 - Public Works Department
(Robert Armijo 510-620-5479/Mary Phelps 510-621-
1269).
AGENDA
REPORT
July 2, 2024
DISCUSSION:
Baykeeper (per the ¶ 31.c of the 2018 Settlement Agreement) requires the City of Richmond to replace or repair at least two (2) miles of Grade 5 gravity sewer per year, based on a five (5) year rolling average.
To achieve this goal, the City must allocate annual capital funding to cover the cost of these mandated repairs.
On March 20, 2024, the proposal was posted to BidsOnLine, and twenty -nine (29) prospective bidders downloaded the bid information. On April 16, 2024, five (5) bids were received from (in alphabetical order): APB General Engineering, Cratus, Inc., D’Arcy and Harty Construction, Inc., Glosage Engineering, Inc., and W.R. Forde and Associates.
The bids received were as follows:
Contractor Contractor Bid Amount
APB General Engineering $1,690,800
Cratus Inc. $3,144,000
D’Arcy and Harty Construction, Inc. $2,044,687
Glosage Engineering Inc. $1,923,820
W.R. Forde and Associates $2,876,575
City Staff and Veolia Staff reviewed the bids and determined that APB General Engineering was the lowest responsive bid and is responsible. Two pre-qualified technical firms (V.W. Housen & Associates and Questa Engineers) also submitted acceptable proposals to provide compaction testing and engineering services during construction for this project.
While staff typically recommends a 10% contingency for projects, a 25% contingency is deemed necessary for the Grade 5 Sewer Replacement project. This is due to the nature of older pipelines, which often present unforeseen challenges once they are uncovered. The additional contingency will provide a buffer to address potential issues such as unexpected deterioration, uncharted underground utilities, and necessary modifications to ensure compliance with current standards. This approach aims to mitigate risks and ensure the project can be completed without significant delays or additional funding requests.
As per the City’s contract with Veolia, Veolia is responsible for the construction management of City Water Resource projects. Their fee structure includes a charge of
16.5% of the construction cost and 9% of the contingencies. For this project, in addition to the fee for APB, Veolia’s 16.5% charge will also apply to the fees for VW Housen ($40,000) and Questa ($25,000). Additionally, a 9% markup will be applied to the 25%
July 2, 2024
contingency for APB, VW Housen, and Questa. These combined costs are reflected in the table below as the Construction Management cost.
The total estimated cost of this project, if awarded to the lowest bidder is as follows:
Construction Task Authorization $ 1,690,800
Contingency @ 25% $ 422,700
Total Construction Cost $ 2,113,500
Design Support During Construction $65,000
Construction Management Cost $ 329,213
Support Contingency @ 25% $ 16,250
Total Project Cost $ 2,523,963
Staff is requesting council approve the resolution to authorize issuing the Task Authorization to Veolia for the 2024-25 Grade 5 Sanitary Sewer Line Replacement Project.
The total cost of the project will not exceed $2,523,963 without prior council approval.
DOCUMENTS ATTACHED:
Attachment 1 – Resolution
Attachment 2 – Canvass of Bids FY 21/22 Pipeline Replacement Project Attachment 3 – TA FY 2024/25 Grade 5 Sewer Project Phase I Attachment 4 – Resolution 82-19
Attachment 5 – Resolution 84-19
Attachment 6 – Baykeeper Settlement Agreement