HomeMy WebLinkAbout2022-10-18; Municipal Water District; ; Acceptance of Bids, Award of Contract to Burtech Pipeline Incorporated and Authorization of Additional Appropriation for the Palomar Airport Waterline Realignment ProjectCA Review _RMC_
Meeting Date: Oct. 18, 2022
To: President and Board Members
From: Scott Chadwick, Executive Manager
Staff Contact: Dave Padilla, Utilities Engineering Manager
dave.padilla@carlsbadca.gov, 442-339-2356
Keri Martinez, Utilities Senior Engineer
keri.martinez@carlsbadca.gov, 442-339-2354
Subject: Acceptance of Bids, Award of Contract to Burtech Pipeline Incorporated
and Authorization of Additional Appropriation for the Palomar Airport
Waterline Realignment Project
District: 2
Recommended Actions
Adopt a resolution accepting bids, awarding a contract to Burtech Pipeline Incorporated, a
California corporation, for an amount not to exceed $1,494,920, and authorizing an additional
appropriation in an amount of $23,000 from the Water Replacement Fund for construction of
the Palomar Airport Waterline Realignment, Capital Improvement Program Project No. 5055.
Executive Summary
The Carlsbad Municipal Water District owns and operates a system of water distribution mains
at the San Diego County McClellan-Palomar Airport. The Palomar Airport Waterline
Realignment Project will remove aging asbestos-cement and steel pipelines and replace them
with new PVC pipe.
The CMWD Board of Directors approved the plans, specifications and contract documents for
the project on June 21, 2022, (Resolution No. 1678) authorizing staff to advertise the project for
construction bids. Staff advertised the project, and, on Sept. 7, 2022, received four bids. The
lowest responsive and responsible bidder was Burtech Pipeline Incorporated, with a bid of
$1,494,920.
Staff recommend the CMWD Board award the construction contract to Burtech for an amount
not to exceed $1,494,920. Staff also request that the CMWD Board authorize an additional
appropriation of $23,000 from the Water Replacement Fund for the project.
Carlsbad Municipal Code Section 3.28.080 – Construction projects, subsections (C) and (I)(6)
require the CMWD Board’s approval for all formally bid contracts when the value exceeds
$200,000.
Oct. 18, 2022 Item #5 Page 1 of 9
MUNICIIPAL WATER D IISTRIC'f
Staff Report
Discussion
Overview
The San Diego County McClellan-Palomar Airport is located at 2198 Palomar Airport Road in
Council District 2. CMWD’s water distribution mains provide potable water service and fire
protection for the airport’s operations and tenants. The mains are comprised of steel, polyvinyl
chloride – or PVC – and asbestos-cement pipelines installed at various times over past decades.
The project realigns the distribution system to remove from service approximately 1,300 feet of
pipe located under the commercial ramp, taxiway and in close proximity to former landfill
areas, as shown in the location map provided as Exhibit 2. A total of 1,610 feet of new PVC pipe
will be installed to replace aging asbestos-cement and steel pipelines, and 1,800 feet of pipeline
will be abandoned in place.
The complete scope of the project in the city’s request for proposals was to construct a total of
1,965 feet of water pipeline at the site. Staff are recommending reducing the scope to replacing
and installing pipeline in the two most critical areas so that the project will stay within its
budget with minimal additional appropriation.
The work will temporarily disrupt domestic water and fire service to the airport lobby and
aircraft maintenance hangars and cause temporary traffic impacts during construction.
Temporary highlines and phased construction will be used to reduce these impacts as much as
possible. Staff will continue to coordinate with airport staff during the project to minimize the
disruptions. Airport management is aware of these temporary impacts and supports the
project.
Bid schedules
Three bid schedules with different scopes of work were developed and advertised to provide
the CMWD Board with options on the scope of work to be awarded if the bids exceeded the
budgeted funds.
Under California Public Contract Code 20103.8(b), the basis for determining the lowest
responsive bid is the sum of all the bid schedules, schedules A, B and C, which are detailed
below. The CMWD Board may make its choice based on the total of Bid Schedule A alone or the
total of schedules A, B and C combined, or any combination of the schedules.
• Bid Schedule A for Segments A and D represents the most critical work: to construct 400
feet of 12-inch and 900 feet of 10-inch PVC pipe to abandon the existing pipeline in the
airport taxiway and operating areas, and to realign the new pipeline out of the
operating taxiway to provide a looped water system
• Bid Schedule B for Segment B sought to construct 355 feet of 10-inch PVC pipe to
replace the existing segment of steel pipe in the western area of the airport
• Bid Schedule C for Segment C is also critical: to construct 300 feet of 10-inch and 60 feet
of 8-inch PVC pipe to replace existing steel pipe in the eastern area of the airport that is
more than 40 years old
The bids exceeded the budgeted funds, so staff therefore recommend removing Bid Schedule B
from the project and awarding a contract to construct the improvements described in bid
schedules A and C.
Oct. 18, 2022 Item #5 Page 2 of 9
Easements
A new water easement will be required for construction of the new pipelines, and an existing
easement will be quitclaimed, that is, relinquished, in areas where the existing pipeline will be
abandoned once the project is complete. Since there is no anticipated future use of the existing
easement area for public water system purposes once the pipeline is abandoned, the district
can quit its claim to that easement after the project is complete.
The project requires dedication of approximately 15,000 square feet of a new 20-foot-wide
water easement for the construction of pipe Segments A and D. In accordance with Section 3(b)
of CMWD Board Resolution No. 996, adopted Sept. 9, 1997, the executive manager is
authorized to accept a grant of easement to the CMWD for public purposes upon the advice of
counsel and if recommended by the district engineer. Accordingly, the executive manager will
sign any new deeds or grants of easements necessary to construct the project.
Options
Staff provide the following options for the CMWD Board’s consideration:
1. Accept bids, award a contract to Burtech for construction of work under Bid Schedules A
and C for an amount not to exceed $1,494,920 and authorize an additional
appropriation of $23,000 from the Water Replacement Fund
Pros
• Allows for critical pipe replacement, realignment and abandonment in segments
A, C and D
• Decreases the cost of the contract to be awarded to stay within available project
budget
• The project improves reliability and safety associated with pipeline operation
and maintenance outside of an operating taxiway, in the main airport roadway
and adjacent to aircraft hangars
• Project reduces the risk associated with potential pipe breaks and emergency
repairs in proximity to the airport and closed landfill areas
Cons
• The work does not include replacement of steel pipe in Segment B
• Deferring the remaining work in Segment B could result in potentially higher
replacement costs in future years
2. Accept bids, award a contract to Burtech for construction of the entire project (Bid
Schedules A, B and C) for an amount not to exceed $1,879,130, and authorize an
additional appropriation of $464,760, which includes additional contingency, from the
Water Replacement Fund
Pros
• The project improves reliability and safety associated with pipeline operation
and maintenance outside of an operating taxiway and all other project areas
• The project reduces the risk associated with potential pipe breaks and
emergency repairs in proximity to the airport and closed landfill areas
Cons
• Requires an additional budget appropriation of $464,760, which includes
additional contingency funds and is the highest cost alternative
Oct. 18, 2022 Item #5 Page 3 of 9
3. Accept bids and award a contract to Burtech for construction of work under Bid
Schedule A only for an amount not to exceed $1,111,270
Pros
• Allows for critical pipe replacement, realignment and abandonment in Segments
A and D
• Decreases the cost of the contract to be awarded
• The project improves reliability and safety associated with pipeline operation
and maintenance outside of an operating taxiway and in the main airport
roadway
• The project reduces the risk associated with potential pipe breaks and
emergency repairs in proximity to the airport and closed landfill cells
Cons
• The work does not include replacement of aging steel pipe in Segments B or C
• Deferring the remaining work in Segments B and C results in a higher risk of
pipeline leaks or breaks, emergency water shutdowns and emergency
construction in the airport
• Could potentially result in higher replacement costs in future years
4. Do not adopt a resolution accepting the bids and do not award the contract for the
project
Pros
• Funds could be used for other water projects
• No disruption to domestic water and fire service to the airport lobby and aircraft
maintenance hangars would occur
• No traffic impacts would occur because of construction
Cons
• Increases risk of pipe leaks or breaks, emergency water shutdowns and
emergency construction in the aircraft taxiway and adjacent to maintenance
hangars
• Creates delays to rebid the project and award a construction contract
• Potential increase in construction costs if rebid and awarded in future years
Staff recommend the CMWD Board’s approval of Option 1.
Fiscal Analysis
The original project estimate was $2,128,000. The bids received reflect an increase in costs for
materials and construction labor above the engineer’s estimate. Further, the construction
phasing requirements necessary to reduce water service impacts increase the duration of
construction and related costs for construction management and inspection. An additional
funding appropriation in the amount of $23,000 from the Water Replacement Fund is needed
to construct the recommended work included in the two bid schedules.
Oct. 18, 2022 Item #5 Page 4 of 9
A summary of the estimated project costs and available funds is shown in the table below:
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 of contract award, which is $224,240 for the project.
Next Steps
Upon the CMWD Board’s acceptance of the bids and award of the construction contract to
Burtech for Option 1, staff will issue a purchase order, schedule a pre-construction meeting
with the contractor and issue a notice to proceed with construction expected to begin in
December 2022.
Construction will last an estimated 11 months, with completion estimated in late 2023. If the
CMWD Board selects Options 2 or 3 instead, this construction schedule will be extended by an
estimated three months for Option 2 or reduced by an estimated three months for Option 3.
Upon completion of the project, staff will return to the CMWD Board to recommend approving
the quitclaim of the no-longer-needed water pipeline easement.
The project is expected to be completed in early 2024 (for Option 1).
Environmental Evaluation
The project classifies as a replacement or reconstruction of existing utility or facilities involving
negligible or no expansion of capacity and is exempt from environmental review under the
California Environmental Quality Act Guidelines Section 15302(c). Staff filed a notice of
exemption with the San Diego County Clerk on Aug. 8, 2022, in compliance with Section 21152
(b) of the California Public Resources Code.
Palomar Airport Water Line Realignment
Capital Improvement Program Project No. 5055
Total available funding $2,145,240
Construction contract $1,494,920
Construction contingency (15%) $224,240
Construction management, inspection, material testing, services (estimated) $359,000
Engineering services during construction $40,000
Communications (estimated) $20,000
Staff time (estimated) $30,000
Total estimated project costs $2,168,160
Additional funding needed $23,000
Oct. 18, 2022 Item #5 Page 5 of 9
Public Notification and Outreach
This item was noticed in accordance with the Ralph M. Brown Act, and it was available for
public viewing and review at least 72 hours prior to the scheduled meeting date.
Before construction begins, the public will be notified of the construction activities through
signage, email messages, the city website and other city communication channels. The
construction contractor will also be required to notify the public of construction activities via
changeable message signs, door hangers, letters to residents and/or “NO PARKING” signs, as
applicable.
Exhibits
1. Carlsbad Municipal Water District Board resolution
2. Location map
Oct. 18, 2022 Item #5 Page 6 of 9
RESOLUTION NO. 1685
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE CARLSBAD
MUNICIPAL WATER DISTRICT OF THE CITY OF CARLSBAD, CALIFORNIA,
ACCEPTING BIDS, AWARDING A CONTRACT TO BURTECH PIPELINE
INCORPORATED, A CALIFORNIA CORPORATION, FOR AN AMOUNT NOT TO
EXCEED $1,494,920 AND AUTHORIZING AN ADDITIONAL APPROPRIATION IN
AN AMOUNT OF $23,000 FROM THE WATER REPLACEMENT FUND FOR
CONSTRUCTION OF THE PALOMAR AIRPORT WATERLINE REALIGNMENT
PROJECT
WHEREAS, the Carlsbad Municipal Water District, or CMWD, Board of Directors of the City of
Carlsbad, California has determined that it is necessary, desirable and in the public interest to realign
and replace the water distribution pipelines it owns at the County of San Diego McClellan-Palomar
Airport for the Palomar Airport Waterline Realignment, Capital Improvement Program, or CIP, Project
No. 5055, or Project; and
WHEREAS, on June 21, 2022, the CMWD Board adopted Resolution No. 1678, approving plans,
specifications and contract documents and authorizing advertisement for bids for construction of the
Project; and
WHEREAS, on Sept. 7, 2022, staff received four bids for construction of the Project; and
WHEREAS, Burtech Pipeline Incorporated, a California corporation, submitted the lowest
responsive and responsible bid, in an amount of $1,494,920; and
WHEREAS, the total project cost is estimated at $2,168,160; and
WHEREAS, funds in the amount of $2,145,240 are available in the CIP Project No. 5055, for
project costs in the current fiscal year; and
WHEREAS, an additional appropriation in the amount of $23,000 will be appropriated from the
Water Replacement Fund; and
WHEREAS, 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 of contract award, which is $224,240 for the Project; and
WHEREAS, the City Planner has determined that the Project is categorically exempt from the
California Environmental Quality Act, or CEQA, pursuant to CEQA Guidelines Section 15302(c), as a
replacement or reconstruction of existing utility and/or facilities, and that no exception to the
exemption as set forth in CEQA Guidelines section 15300.2 applies.
Exhibit 1
Oct. 18, 2022 Item #5 Page 7 of 9
NOW, THEREFORE, BE IT RESOLVED by the Carlsbad Municipal Water District Board of Directors
of the City of Carlsbad, California, as follows:
l.That the above recitations are true and correct.
2.That the bid of $1,494,920 submitted by Burtech Pipeline Incorporated is accepted and
the CMWD Board President is hereby authorized and directed to execute a contract for
the Palomar Airport Waterline Realignment, CIP Project No. 5055.
3.That the Deputy City Manager, Administrative Services, is authorized to appropriate
additional Water Replacement Funds in the amount of $23,000 for construction of the
Palomar Airport Waterline Realignment, CIP Project No. 5055.
4.That the Executive Manager or designee is hereby authorized to approve construction
change orders up to $224,240.
5.That the award of this contract is contingent upon Burtech Pipeline Incorporated
executing the required contract and submitting the required bonds and insurance
policies, as described in the contract, within 20 days of adoption of this Resolution. The
Executive Manager may grant reasonable extensions of time to execute the contract
and assemble the required bonds and insurance policies.
PASSED, APPROVED AND ADOPTED at a Special Meeting of the Board of Directors of the
Carlsbad Municipal Water District on the 18th day of October, 2022, by the following vote, to wit:
AYES:
NAYS:
ABSENT:
Hall, Blackburn, Bhat-Patel, Acosta, Norby.
None.
None.
t,.,,FAVIOLA MEDINA, City Clerk Services Manager r (SEAL)
Oct. 18, 2022 Item #5 Page 8 of 9
LOCATION MAP
PROJECT NAME PROJECT EXHIBIT
NUMBER 3
Exhibit 2
Oct. 18, 2022 Item #5 Page 9 of 9
NOT TO SCALE
PROJECT
SITE
PALOMAR AIRPORT WATERLINE
REALIGNMENT PROJECT 5055-1