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Home My WebLink About2024-10-29; Municipal Water District; ; Acceptance of Bids and Award of a Contract to Creative Home dba CHI Construction, Inc. for Construction of the Valve Replacement Phase III, Capital Improvement Program PrCA Review GH Meeting Date: Oct. 29, 2024 To: President and Board Members From: Scott Chadwick, Executive Manager Staff Contact: Timothy Smith, Utilities Maintenance Planner timothy.smith@carlsbadca.gov, 760-421-6434 Stephanie Harrison, Utilities Technical Services Manager stephanie.harrison@carlsbadca.gov, 442-339-2310 Subject: Acceptance of Bids and Award of a Contract to Creative Home dba CHI Construction, Inc. for Construction of the Valve Replacement Phase III, Capital Improvement Program Project No. 5019-F Districts: All Recommended Action Adopt a Carlsbad Municipal Water District Board of Directors resolution accepting bids and awarding a contract to Creative Home dba CHI Construction, Inc. for construction of the Valve Replacement Phase III Project in an amount not to exceed $3,823,800 and appropriating $562,000 from the Water Replacement Fund to Capital Improvement Program Project No. 5019-F. Executive Summary The Carlsbad Municipal Water District’s Water Valve Repair/Replacement Program repairs or replaces broken water valves throughout the system to ensure reliable water delivery, reduce water loss and help maintain high service levels to customers. This phase of the multi-year program will install 87 valves at 26 prioritized locations throughout the CMWD’s service area, as shown in Exhibit 2. Staff recommend that the CMWD Board accept the bids for the Valve Replacement Phase III Project and award a construction contract to Creative Home dba CHI Construction, Inc. in an amount not to exceed $3,823,800. An additional appropriation of $562,000 is required to fully fund the project. The CMWD Board of Directors approval is required for all formally bid contracts when the value exceeds $200,000 under Carlsbad Municipal Code Sections 3.28.080(C), 3.28080(E) and 3.28.080(I)(6). Explanation & Analysis Project overview The CMWD is committed to effectively manage the district’s assets to ensure it can continue to provide superior water service. The district’s Water Valve Repair/Replacement Program, Capital Improvement Program, or CIP, Project No. 5019-F, is designed to fix or replace valves that have Oct. 29, 2024 Item #8 Page 1 of 8 MUNICIIPAL WATER D IISTRIC'f Staff Report been determined to be inoperable during routine maintenance checks or operational procedures. In addition to replacing broken valves, the CMWD plans to replace any valves that are on the same fitting as the broken valves and of the same age. Staff will also install an additional valve on the same fitting if it will provide better system control. The project also includes installation of various pieces of equipment at each site to enable safe draining, refilling and protection of the pipelines during maintenance activities. This phase of the project, Project No. 5019-F, will install 87 valves at 26 key locations, categorized in the following table, as shown in Exhibit 2. Bid Process • The CMWD Board of Directors approved the plans and specifications and authorized the Secretary to the Board to advertise to receive bids for the project on June 11, 2024, Resolution No. 1737. • The district received six bids for construction of the project on July 24, 2024. • Staff reviewed these bid documents and determined that Creative Home DBA CHI Construction, Inc. was the lowest responsive and responsible bidder. • The online bid form omitted a line item for traffic control; however, the handwritten bid of $3,823,800 that was simultaneously submitted included the price of the omitted line item as $2,600. The Board may waive this bid mistake because it was not material, and the needed pricing was included in the bid, in the contractor’s handwritten proposal. The construction contract for the project will contain general performance standards, technical specifications, and notification requirements to minimize disruptions and a one-year warranty period. Construction is expected to take about a year. The construction contract includes charges that may be assessed for each day in excess of the time specified for completion of the work. Fiscal Analysis The total project cost of $4,980,940 is summarized in the table below. The project will be funded as part of the Water Valve Repair/Replacement Program, CIP Project No. 5019, as CIP Project No. 5019-F. An additional $562,000 appropriation is required to fully fund the project. There are sufficient reserves in the Water Replacement Fund to fund the increased costs. Valve Replacement Phase III Project Capital Improvement Program Project No. 5019-F Existing valves to be replaced 57 New valves to be installed to improve system operations 30 TOTAL 87 Oct. 29, 2024 Item #8 Page 2 of 8 The table below provides a summary of the available funds and estimated costs. Carlsbad Municipal Code Sections 3.28.040(C)(5) and 3.28.090(B) authorize the Executive Manager or designee to approve change orders in an amount equal to the contingency set at the time the project is awarded, which for this project is $573,570. Next Steps With approval of the CMWD Board and once the contract documents are fully executed, staff will issue a purchase order, schedule a pre-construction meeting with Creative Home dba CHI Construction, Inc. and issue a notice to proceed for construction of the project. Construction is estimated to begin in early 2025. The duration of the construction is estimated to be 250 working days, excluding rain days and change orders that may extend the contract duration, with estimated completion in early 2026. Environmental Evaluation The City Planner, through the process outlined in Carlsbad Municipal Code Section 19.04.060, has determined that this project is exempt from the California Environmental Quality act under CEQA guidelines pursuant to Section 15302(c) Replacement or Reconstruction, which applies to projects involving the replacement or reconstruction of an existing utility system and/or facility involving negligible or no expansion of capacity. None of the exceptions described in CEQA Section 15300.2 are applicable to this project. Exhibits 1. Carlsbad Municipal Water District Board of Directors resolution 2. Location map Water Valve Repair/Replacement Program Capital Improvement Program Project No. 5019 Total appropriation to date $9,780,000 Total expenditures and encumbrances to date -$5,360,783 Total available balance $4,419,217 Valve Replacement Phase III Project Capital Improvement Program Project No. 5019-F Construction contract - Creative Home DBA CHI Construction, Inc. -$3,823,800 Construction contingency (15%) -$573,570 Construction management and engineering support, inspection and materials testing, staff and consultant (estimated) -$573,570 Community outreach during construction (estimated) -$10,000 Total estimated construction cost -$4,980,940 Remaining balance -$561,723 Additional appropriation requested (rounded) $562,000 Oct. 29, 2024 Item #8 Page 3 of 8 RESOLUTION NO. 1750 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE CARLSBAD MUNICIPAL WATER DISTRICT OF THE CITY OF CARLSBAD, CALIFORNIA ACCEPTING BIDS AND AWARDING A CONTRACT TO CREATIVE HOME DBA CHI CONSTRUCTION, INC. FOR CONSTRUCTION OF THE VALVE REPLACEMENT PHASE Ill PROJECT IN AN AMOUNT NOT TO EXCEED $3,823,800 AND APPROPRIATING $562,000 FROM THE WATER REPLACEMENT FUND TO CAPITAL IMPROVEMENT PROGRAM PROJECT NO. 5019-F WHEREAS, the Carlsbad Water District, or CMWD, Board of Directors has determined that it is necessary, desirable, and in the public interest to replace broken valves at prioritized locations and make other improvements at the same locations through the Valve Replacement Phase Ill Project, Capital Improvement Program, or CIP, Project No. 5019-F; and WHEREAS, on June 11, 2024, through adoption of Resolution No. 1737, the CMWD Board of Directors approved plans and specifications, and authorized the Secretary to the Board to advertise to receive bids for the project; and WHEREAS, on July 24, 2024, six sealed bids were received for construction ofthe project; and WHEREAS, the lowest responsible and responsive bidder was Creative Home dba CHI Construction, Inc. in an amount of $3,823,800; and WHEREAS, the online bid form submitted by Creative Home dba CHI Construction, Inc. omitted a line item for traffic control; however, the handwritten bid of $3,823,800 that was simultaneously submitted included the price of the omitted line item as $2,600; and WHEREAS, the CMWD Board may waive this bid mistake because it was not material, and the needed pricing was included in the bid, in the contractor's handwritten proposal; and WHEREAS, Carlsbad Municipal Code Sections 3.28.080(() and 3.28.080(1)(6) require the CMWD Board of Directors to award all formally bid contracts when the value exceeds $200,000; therefore, the Project is subject to this requirement; and WHEREAS, Project No. 5019-F requires an additional appropriation of $562,000 from the Water Replacement Fund to complete the project; and WHEREAS, Carlsbad Municipal Code Section 3.28.040(C)(S) authorizes the Executive Manager or designee to approve change orders in the amount equal to the contingency set at the time the project is awarded, which is $573,570 for the project; and Exhibit 1 Oct. 29, 2024 Item #8 Page 4 of 8 Exhibit 2 5019-F Oct. 29, 2024 Item #8 Page 7 of 8 I G-4 REVIEWED BY: RECORD DRAWING CITY OF CARLSBAD 1----------------X/X/XXXX ENGINEERING DEPARTMENT DA TE RECORD PLANS FOR: ;::t1~J~~O:O~C::N1~r'~~A'= ==· DRAWING NO. DCHWKNDBBYY: ~ CMWD VALVE REPLACEMENT BY OMRS. 1D lHE BEST l<NO'M..EDGE OF xxx-X :__i,.u___ PHASE III ~~~~~~l!ON PR(MD£D IS RVWD BY:___KH_ I!::;;;;;;;;;;;,,;;;;;;;~===~!=======H============u 1s1rE No.: KEYPLAN n 1 G NF"ELDER SHEET PROJECT NO. I ACCEPTBD BY: I \., _BrightPoopl,.RlghtSolutlons. A_ OF 60 X/X/XXXX ~ Dm'l'RICT KNGINBl!R DATE INSPECTOR 5019-FOct. 29, 2024 Item #8 Page 8 of 8 I G-3 REVIEWED BY: RECORD DRAWING II--------------X/X/XXXX DATE INSPECTOR CITY OF CARLSBAD ENGINEERING DEPARTMENT RECORD PLANS FOR: lHIS RECORD DRAl'!NG HAS BEEN PREPARED, DRAWING NO. OWN BY: _.c.eR_ CMWD VALVE REPLACEMENT r/~~-t:~~==~ CHKDBY:_fil_ ~~~11011 PRO\'!DfD IS xxx-X RVWD BY:__KcL PHASE III !:========U======,r======;11srTE NO.: KEYPLAN r I ~ SHEET PROJECT NO. I ACCEPTED BY: I ( KLEINFELDER 3 OF 60 X/X/XXXX ~---, Brlght-•'~RlghtSolutloru. ----==;-:;==-----~ •~ DISTR!m' BIIGINBl!R DATE