TO:Andrew P. Powers, City Manager
FROM:Clifford G. Finley, Public Works Director
DATE:February 27, 2024
SUBJECT: Unit W Wastewater Interceptor Improvements (CI 5445) RECOMMENDATION:
1. Approve the project design, specifications, and Addenda Nos. 1 and 2 for construction of the Hill Canyon Treatment Plant (HCTP) Unit W Wastewater Interceptor Improvements Project (CI 5445).
2. Award construction contract for HCTP Unit W Wastewater Interceptor Improvements Project (CI 5445) to MMC, Inc. of La Palma, CA, in the amount of $3,855,000, plus a contingency of $385,500.
3. Approve Seventh Amendment to Professional Services Contract No. 12186- 2019 with AECOM Technical Services, Inc. (AECOM) of Los Angeles, CA, for Construction Phase Support Services on the Unit W Wastewater Interceptor Improvements Project (CI 5445) in the amount of $133,600 for a revised not-to- exceed amount of $431,349, plus extra services of $13,400, and extend the term of the agreement to December 31, 2025.
4. Approve Single-Source Designation and Professional Services Agreement with Padre Associates, Inc. (Padre) of Ventura, CA, for Environmental Permit Assistance and Monitoring Services on the Unit W Wastewater Interceptor Improvements Project (CI 5445) in the not-to-exceed amount of $83,468, plus extra services of $8,350, with a term ending June 30, 2025.
5. Approve budget appropriation in the amount of $1,386,000 from A/C #624-0000- 341-9900 (Wastewater Fund, Net Position) to A/C #624-8220-682-8300 (Unit W Wastewater Interceptor Improvements Project CI 5445).
6. Authorize expenditure in the amount of $4,479,318 ($3,855,000 construction contract, $385,500 construction contract contingency, $133,600 for construction support services and testing, $13,400 for extra services, $83,468 for environmental permit assistance and $8,350 for extra services) from A/C #624-8220-682-8300 (Unit W Wastewater Interceptor Improvements Project, CI 5445).
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9 7. Delegate authority to the City Engineer to approve changes in the design, plans, specifications, and working details of the project on work directives and change orders up to the project approved contingency amount.
8. California Environmental Quality Act (CEQA): A Mitigated Negative Declaration (MND) was approved for this project by City Council on February 22, 2022.
FINANCIAL IMPACT:
$1,386,000 Increase to Adopted FY 2023-24 Wastewater Fund Budget. $1,386,000 increase in budget is requested for the Unit W Wastewater Interceptor Improvements Project (CI 5445). $1,700,000 is included in the Adopted FY 2023-24 Wastewater Capital Fund Budget and $1,616,377 was carried over from FY 2022-23 to FY 2023-24 for CI 5445, for a total budget of $3,316,377. The estimated total project cost for CI 5445 is $4,985,966.
BACKGROUND:
The City’s HCTP provides tertiary-level wastewater treatment for the community. As part of the overall wastewater collection and treatment system, large-diameter wastewater interceptor pipelines were installed to transport the wastewater from the community and deliver it to the HCTP. The Unit W Wastewater Interceptor is a gravity collection pipeline that originates near the Oaks Mall and transports a large volume of wastewater along the Arroyo Conejo Creek to the HCTP (Attachment #1).
The Unit W pipeline was installed in the 1960s and improvements have been made over the decades. In the lower portion of the interceptor, the original 1960s Unit W pipeline consisted of a 30-inch diameter pressurized pipeline with two major wastewater access structures (Structure W-1 and Structure W/F). The structures enable the wastewater interceptors to be controlled and accessed by staff.
This project involves important rehabilitation to some of the City’s largest and most essential wastewater interceptor pipelines which will prolong the life of current assets and reduce overall risks and maintenance costs to the wastewater pipelines. This portion of wastewater interceptor pipelines is nearing the end of its service life, is located deep in the canyon, and is difficult to access.
This scope of the project will review the existing condition of the two pipelines towards the south headworks at the HCTP, a distance of approximately 5,000 feet.
The project also includes installing a temporary wastewater bypass pipeline to the HCTP’s headworks whereby closed-circuit television (CCTV) work can be performed on the inside of the wastewater pipelines as well as installation of new Unit W Wastewater Interceptor Improvements (CI 5445)
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9 access holes. In addition, three of the existing isolation valves are non-functional due to mechanical failure, and these will be replaced as well.
The condition assessment of the existing facilities involved with this project is the first phase of a potential two-phase project. Once this project is completed and the necessary internal pipeline CCTV information is obtained, staff will assess the requirements for the second phase of this project. The second phase is included under CI 5681 in the Adopted FY 2023-2025 Capital Improvement Program budget.
On August 27, 2019, AECOM, a professional engineering firm, was selected through a competitive Request for Proposals (RFP) process to prepare an asset assessment of a portion of the Unit W Pipeline Project. City Council awarded the design contract for Phase 1 of the Unit W Condition Assessment Project to AECOM for $75,000. Six Amendments have been processed to date for additional design phases and services, as well as time extensions totaling $222,749 for a total current not-to-exceed amount of $297,749.
Padre was issued a Task Order in May 2019 in the amount of $44,781.20 to assist the City with obtaining the environmental regulatory permits associated with the proposed construction project. Padre prepared the Mitigated Negative Declaration (MND) in accordance with CEQA guidelines. City Council adopted the MND and Mitigation Monitoring Program for the project on February 22, 2022.
On January 24, 2023, City Council authorized staff to advertise this project for construction bids. Bids were opened on March 1, 2023; however, because of the high construction bids ranging from $3.4M to $3.7M and only 2 total bids received, City Council rejected all bids at their April 4, 2023, meeting. Staff worked with the design consultant over the Summer and Fall of 2023 to implement design and construction document clarifications and value engineering to clarify the scope of the project, and also personally reached out to more contractors to generate more bidder interest.
DISCUSSION/ANALYSIS:
City Council authorized re-bidding of the project on November 14, 2023, and the Notice Inviting Bids was publicly advertised in the Thousand Oaks Acorn newspaper and posted on the City’s procurement website on November 17, 2023, per Public Contract Code Section 22037 and Thousand Oaks Municipal Code 3-
10.306. Four bids were received and publicly opened on January 24, 2024. The bid results are as follows:
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9 Bidder Bid
1 MMC, Inc. (La Palma, CA) $3,855,000
2 JR. Filanc Construction Co. (Escondido, CA) $4,130,843 3 Blois Construction, Inc. (Oxnard, CA) $4,206,000
4 Lead Builders, Inc. (Thousand Oaks, CA) $4,209,688
The lowest bid received is from MMC, Inc. (MMC) for $3,855,000. The engineer’s estimate is $2,880,000. The discrepancy between the engineer’s estimate and the construction bid amount is reflective of the current construction bidding environment. The California construction cost index has increased 35% since 2021, and construction bids that are 30-50 percent higher than the design estimate are often submitted. Although the current bid is higher than the original bid from April 2023, postponing the project further will likely result in even higher construction costs due to the current bidding environment. Based on the number of bids received, and the consistency of the bid amounts, staff is confident that the cost is reasonable. In addition, this project entails important rehabilitation of some of the City’s largest and most essential wastewater interceptor pipelines which is necessary to reduce overall risks and maintenance costs to the wastewater pipelines.
The bid package submitted by MMC has been reviewed and found to be in order, and no bid protests have been received. Staff recommends awarding the construction contract to MMC.
Design Support Services During Construction
AECOM is the project engineer of record and will provide construction support services required for the project. Construction support services will include responding to requests for information, reviewing material submittals, preparing of final project punch list, and preparing record drawings upon completion. The services will also include field observation and inspection throughout the construction period. Staff recommends approval of the Seventh Amendment to Contract No. 12186-2019 with AECOM for $133,600 (Attachment #2) for a new not-to-exceed amount of $431,349 and extra services of $13,400, along with an extension of the term to December 31, 2025.
Padre is the environmental/biological consultant of record and will also provide construction support services required for the project. Padre’s construction support services will include technical oversight to ensure the requirements of the environmental permits from the California Department of Fish and Wildlife (CDFW) streambed alteration agreement and other required CEQA mitigation monitoring requirements for the project are met. Such mitigation and monitoring activities require services in connection with biological monitoring, breeding bird surveys, and permit compliance documentation during and after project construction.
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9 Staff recommends City Council approve a Single-Source Designation for Padre for the construction phase of the project, under a new Professional Services Agreement in the amount not to exceed $83,468 and extra services of $8,350 and a term expiring on June 30, 2025 (Attachment #3). Padre is uniquely qualified to provide such services based on its expertise and detailed knowledge and familiarity with the project scope, canyons, and requirements of the environmental permits. Padre’s original Task Order No. 1 for the design phase services on this project was part of a larger Task Order that cannot be amended due to the $125,000 amount limit for task orders.
The estimated project costs are as follows:
Design and Engineering (previously approved) $ 412,749.00 Design and Engineering Contingency (previously approved) $ 25,770.00 Isolation Valves Equipment (previously approved) $ 68,129.12 Unit W Construction Contract (this action) $3,855,000.00 Unit W Construction Contingency (this action) $ 385,500.00 Construction Phase Support Services (this action) $ 133,600.00 Const. Phase Support Services Extra Services (this action) $ 13,400.00 Construction Phase Environmental Monitoring (this action) $ 83,468.00 Const. Phase Environmental Monitoring Extra Services (this action) $ 8,350.00 Total Estimated Cost $4,985,966.12
This construction phase is anticipated to start by Summer 2024 and is expected to be fully completed by Spring 2025. The project design, specifications, and Addenda Nos. 1 and 2 were completed by the consultant in November 2023, and are available for review by request to the Public Works Department by e-mail at [email protected] or by phone at (805) 449-2400. A MND was approved for this project by City Council on February 22, 2022.
This project meets City Council’s Top Ten Priorities #6, “Public Works + Infrastructure Investments.”
Community Outreach: This project will be limited to work in the canyon adjacent to the HCTP where the Unit W pipelines are located and is not expected to impact any neighboring residences. The work will be at the south end of the plant and will have limited impact to plant operation. Construction related impacts to hiking trail users will be minimal.
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9 CIP PROJECT PRIORITY (as outlined in FY 2023-24 and FY 2024-25 CIP Program Budget)
Priority Two – Necessary, but not essential, and there could be consequences if deferred.
COUNCIL GOAL COMPLIANCE:
Meets the following City Council goal:
F. Provide and enhance essential infrastructure to ensure that the goals and policies of the Thousand Oaks General Plan are carried out and the City retains its role and reputation as a leader in protecting the environment and preserving limited natural resources.
PREPARED BY: Paul Weinstein, Associate Analyst
Attachments:
Attachment #1 – Vicinity and Location Maps
Attachment #2 – Seventh Amendment to Agreement for AECOM Technical Services, Inc.
Attachment #3 – Professional Services Agreement for Padre Associates, Inc.
Documents Provided Under Separate Cover:
#1 – Project Plans and Specifications
DPW: 850-20\cg\pw\ev\Council\2024\022724\CI 5445\ Unit WW Interceptor Improvements staff report.docx