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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