BOARD AGENDA MEMORANDUM
SUBJECT:
Title
Report of Bids Received and Award of Construction Contract to Odin Construction Solutions, Inc., in the sum of $3,754,817, for Construction of Uvas Creek Levee Rehabilitation Project Phase 2, Project No. 62084001, Task No. 5175, Contract No. C0648, (Gilroy) (District 1).
End
RECOMMENDATION:
Recommendation
A. Ratify Addendum No. 1 to the Contract Documents for the Uvas Creek Levee Rehabilitation Project Phase 2;
B. Award the Construction Contract to Odin Construction Solutions, Inc., in the sum of $3,754,817; and
C. Approve a contingency sum of $375,482, and authorize the Chief Executive Officer (CEO) or designee to approve individual change orders up to the designated amount.
Body
SUMMARY:
During FY2018, the Watersheds Operations and Maintenance Division requested Watersheds Design and Construction Division to address the levee erosion caused by squirrels which burrowed holes along approximately one mile of levee slopes at Uvas Creek, downstream of Miller Avenue to end of the levee (Project). Despite implementation of a long-term burrowing animal abatement program, animal burrows continue to persist throughout the levee’s landside and riverside slopes along the entire length of the creek. If left unabated, the current condition could cause levee failure by sloughing, slumping, and/or piping through the levee during high storm events. To maintain the U.S. Army Corps of Engineers’ “Acceptable” ranking for a certified levee, construction for Phase 2 of this Project is proposed for this year. The Phase 1 construction, which started in September 2018, was completed in May 2019. Phase 1 addressed levee conditions for the outboard slope of the levee, while Phase 2 addresses the inboard slope of the levee (Attachment 1).
The levee restoration project is being performed separately for the inboard slope and outboard slope phases, since California Department of Fish and Wildlife (CDFW) claimed jurisdictional rights to the inboard slope of the levee (Phase 2) and has required Santa Clara Valley Water District (Valley Water) to obtain a Streambed Alteration Agreement (SAA). To remain in good faith with the project construction schedule and expectations originally conveyed to City of Gilroy and the public, staff pursued implementing construction work for the outboard slope of the levee (Phase 1) in September 2018, while the inboard levee, Phase 2 was coordinated with CDFW to obtain the SAA for Phase 2.
The scope of the Project is to: A) repair damage to approximately 4,100 feet of the inboard face of the levee, downstream of Miller Avenue towards the end of the levee, which is downstream of West Luchessa Avenue, adjacent to the City of Gilroy Sports Park; B) reduce frequent maintenance costs associated with levee erosion repair; C) reduce the risk of levee/bank slope failure due to damage caused by burrowing animals; and D) rehabilitate approximately 6,700 feet of the access road/trail from Miller Avenue to the end of the levee.
The City of Gilroy and Valley Water are entering into an agreement to improve the current condition of the access road/trail from Miller Avenue to the end of the levee, for which the City has allocated $270,000 in fiscal year 2019-2020 for this agreement. The City Council approved the agreement on May 20, 2019.
This Project, including Phase 1 and Phase 2, is a covered activity included in the Santa Clara Valley Habitat Plan (VHP). A VHP “Certificate of Compliance” was issued for the Project in August 2018, pursuant upon VHP fee payment for restoration of both inboard and outboard levee slopes. Based on the VHP certification, future levee maintenance and rehabilitation work within the same project limits can be performed for a period of 50 years without any additional fees. Valley Water will utilize the VHP permits to comply with the federal and state endangered species laws, as prescribed by the VHP.
Valley Water received the draft SAA from CDFW on May 6, 2019 and the conditions and requirements of the SAA have been incorporated into the bid documents. CFDW confirmed by voice mail on May 22, 2019 that the final SAA should be issued on May 23, 2019.
Addendum Ratification
One Addendum (Attachment 2) was issued during the bid period to clarify the Project Contract Documents and answer bidders’ questions. To formally incorporate the addendum into the Project Phase 2 Contract Documents, staff recommends that the Board ratify this addendum.
Contract Award
Seven (7) bid proposals were received and opened on May 15, 2019. The bid proposal is summarized in Table 1 - Bid Results.
Staff has reviewed the bid proposals and recommends that the construction contract for the Project Phase 2 be awarded to Odin Construction Solutions, Inc. for the following reasons:
1. All bid entries and requirements in the proposal submitted by Odin Construction Solutions, Inc. are in order;
2. Odin Construction Solutions, Inc.’s. license is current, active and in good standing;
3. Odin Construction Solutions, Inc. is in compliance with the requirements of the California Labor Code section 1771.1. Odin Construction Solutions, Inc. and its subcontractors are registered with the California Department of Industrial Relations and qualified to perform public works pursuant to section 1725.5 of the Labor Code; and
4. Odin Construction Solutions, Inc. has complied with the District’s Small Business Enterprise (SBE) Outreach Program by submitting a Good Faith Effort that complies with the requirements of the contract.
Table 1 - Bid Results
|
Company |
Bid Amount |
Award Amount |
|
Odin Construction Solutions, Inc. |
$3,754,817 |
$3,754,817 |
|
Granite Rock Company |
$3,954,813 |
|
|
Sukut Construction, LLC. |
$3,989,180 |
|
|
Granite Construction Company |
$4,105,350 |
|
|
PMK Construction, LLC |
$4,291,740 |
|
|
Kiewit Infrastructure West Co |
$4,874,505 |
|
|
Hosley Corporation/Gordon N Ball, Inc |
Non-Responsive |
|
|
Engineer’s Estimate: $4,498,025 |
Contingency Funds
If the Board awards the contract, staff recommends approval of $375,482 (10% of the contract price) in contingency funds for the Project Phase 2 to allow staff to quickly address unforeseen or changed site conditions and other unanticipated occurrences, without causing unnecessary delays or consequential costs to the Project Phase 2.
The contingency amount was estimated due to known and unknown risks, such as:
1. Unanticipated variances in quantities and cost of various lump sum items estimated in the Bid Proposal;
2. Differing site conditions;
3. Concealed conditions and/or field conditions that may be different from the baseline or as-built information used in preparation of Project Contract Documents;
4. Coordination issues and risks associated with weather conditions and unplanned water impacts to the work; and
5. Potential delays in utility relocations and shut down by utility companies.
Approval of individual change orders will be made up to the designated amounts as follows:
Engineering Unit Manager: $100,000
Deputy Operating Officer: Up to the total amount of the contingency
Public Outreach
District staff has been diligently coordinating with City of Gilroy (City) staff on the development of the Project. On March 6, 2018, District staff met with City staff and presented the proposed project to them in the field. Additionally, on June 18, 2018, District staff along with Board of Director John Varela, made a presentation to the City Council on the overview of the project. The City has been very receptive to the Project and the flood protection benefits of the Project to the community. During March 2019, project update flyers were also sent to City residents regarding planned completion of the Phase 1 project in May 2019 and work schedule for the Phase 2 project from June through October 2019.
During construction, steps will be taken to minimize impacts associated with Project Phase 2, including noise and construction traffic. No construction work will be permitted just prior to, during and immediately after each of the Gilroy Garlic Festival and Fourth of July events. Before implementing the construction work, staff will update the project information link in the District’s website, and mailout a Project update flyer to the neighborhood community, informing them of potential issues, as appropriate. Project Phase 2 Contract Documents include requirements and measures to minimize impacts during construction.
Outreach to Bidders
The Notice to Bidders was sent to certified Small Business Contractors that have the appropriate license. Chambers of Commerce, and plan rooms (Builder Exchanges) and District’s own web site were used to solicit interest in the Project Phase 2 work from prospective Contractors. Contractors were contacted through the Building Construction & Trades Council, and contractors were contacted using the District’s own Master Contractor Database.
Cost Share Agreement with City of Gilroy
Valley Water and the City are entering into a cost share agreement, which was approved by the City council on May 20, 2019, and will be submitted to Valley Water’s Chief Executive Officer for execution.
For the cost-share bid items, the City will reimburse Valley Water for a maximum amount of $270,000 for specific construction elements pertinent to trail pavement restoration work. The existing trail condition is subpar with various minor and major asphalt pavement cracks, and the City is requesting Valley Water repair the trail’s asphalt pavement condition after completion of the main Project work. This pavement repair of the trail would be implemented at the end of Project Phase 2 construction work.
Mitigation for Removed Trees
The Agreement includes a cost-share element and mitigation for native trees removed as part of the Project Phase 1. Six (6) trees within the City’s right of way (City trees) and twenty-three (23) trees within Valley Water’s right of way (Valley Water’s trees) were removed. The species removed were native Valley Oak and Coast Live Oak trees. As part of the City’s tree removal permit condition, the City requested Valley Water replant the City trees with same type of species at one-to-one ratio with 15-gallon container plants close to where they were originally removed or replanted close to within the existing tree corridor adjacent to the outboard side of the levee. To address the U.S. Army Corps of Engineers’ (USACE) fifteen-foot setback for woody growth from the outboard toe hinge of the levee, Valley Water directed the Contractor to perform the replanting of the City trees to comply with the USACE requirements. For the twenty-three (23) Valley Water’s trees, the City did not require tree-replacement mitigation, but instead is requiring Valley Water to pay the City directly an in-lieu-fee of $31,600, so that the City can plant replacement trees at the desired and appropriate locations within its jurisdiction.
Next Steps
If the Board approves the recommendations, staff will proceed with administering the Project Phase 2 construction, which is anticipated to begin mid-June, pending biological clearance, and be completed by mid-October 2019.
FINANCIAL IMPACT:
The cost of construction for Project Phase 2 is $4,130,299, including the recommended contingency funds, which is consistent with the FY 2019-23 Capital Improvement Program. There are sufficient funds available in the FY2019-20 Watershed Asset Rehabilitation Program (WARP) budget to cover this cost. The funding source for the WARP is the Watersheds Stream Stewardship Fund 12.
For Project Phase 1, the District’s payment to the City of $31,600, as a fee in lieu of replacing the twenty-three (23) trees, shall be a separate payment via Agreement with the City, and this payment is not a part of the cost of construction. The funding source for this item will also be from the WARP, which is part of the Watersheds Stream Stewardship Fund 12.
CEQA:
The District is the lead agency under the California Environmental Quality Act for the Project.
The Final Initial Study/Negative Declaration was adopted by the Board on July 10, 2018.
ATTACHMENTS:
Attachment 1: Map
Attachment 2: Addendum No. 1
Attachment 3: Project Delivery Process Chart
UNCLASSIFIED MANAGER:
Manager
Ngoc Nguyen, 408-630-2632