For City Council and Rialto Utility Authority Meeting [August 9, 2022]
TO: Honorable Mayor and City Council
APPROVAL: Marcus Fuller, City Manager
From: Thomas J. Crowley, P.E., Utilities Manager
Title
Request City Council/Rialto Utility Authority Board to (1) Approve Final Construction Work Authorization to Rialto Water Services in the amount of $2,982,691 for the Construction of Riverside Avenue Central Water Improvements Project, and (2) Authorize the City Manager to Execute All Related Documents.
(ACTION)
Body
BACKGROUND:
In preparation for the paving of Riverside Avenue from the Metro Link Railroad Tracks south to San Bernardino Avenue, Riverside Avenue Central Project, the City of Rialto (City) and Rialto Water Services (RWS) evaluated the status of the existing City-owned water lines and water services located in this section of Riverside Avenue. This is the second Phase of the multi-phase project. Date for substantial & final completion is October 31, 2022.
During a previous Council meeting on 9/24/2021, the council authorized the Street Overlay and reconstruction of Riverside Avenue Central Project, Phase 2. With that direction City Staff and Rialto water Services began the evaluation of the water and sewer infrastructure in this section of Riverside Avenue.
ANALYSIS/DISCUSSION:
Below is the scope of work for the improvements that have been identified:
• Construct 950± linear feet of 12-inch Class 350 Ductile Iron Pipe waterline along Riverside Avenue between Metro Link Railroad Tracks and South Street including all required horizontal and vertical fittings and couplings, 12-inch, and 8-inch resilient seated gate valves, thrust protection including restrained joints and thrust blocks and testing and disinfection of the lines prior to putting back in service.
• Construct service connection laterals, install water meters, fire services, fire hydrant laterals, and other appurtenances within the project limits.
• Chosen Subcontractor shall be responsible for installing “hot mix” temporary pavement after the work is complete and maintaining the temporary pavement for a period of approximately 2 months or until the permanent paving is completed by the City of Rialto.
• Subcontractor shall be responsible for preparing and obtaining approvals on the Traffic Control Plans, implementing traffic control throughout the duration of the work.
• Subcontractor shall be responsible for coordinating sequence of work, schedule, and work with the City’s paving contractor to meet the City’s paving contractor’s paving schedules.
• RWS/Veolia shall provide Project Management, Construction Management, inspection support oversight, and engage the services of a Geotechnical consultant to provide compaction testing of all temporary pavement.
Based on City’s direction, Veolia Capital Program Management (CPM) team issued the Request for Bids (RFB) documents to nine local contractors with previous experience performing similar work:
• J.R. Pipeline Co. Ltd.
• Mladen Buntich Construction Co. Ltd.
• A.M. Ortega Construction Inc.
• Henkels & McCoy,
• Doty Brothers Construction Co.
• W.M. Lyles Co.
• Ferreira Construction and
• C.P. Construction.
Two contractors, C.P. Construction and Ferreira Construction, participated in the onsite non-mandatory pre-bid meeting that was conducted on July 7, 2022. Based on questions from the bidders, RWS/Veolia issued Bid Addendum #1 on July 12, 2022, to address Contractors’ questions and extend the bid due date from July 14, 2022, to July 19, 2022.
Additionally, Veolia CPM team called and followed up with all the contractors and requested to submit bids on the project. However, due to the workload of contractors, aggressive construction schedule, challenges sourcing pipes & materials, and manpower shortages, several bidders declined to submit proposals. Bids were opened on July 19, 2022, and two Bids were received.
Following is the bid opening result for the water improvement upgrades between the Metro Link Railroad Tracks south to and San Bernardino Avenue along Riverside Avenue:
• C.P. Construction - $2,159,401
• Ferreira Construction - $3,840,600
The Engineers Estimated cost for this project is $2,018,025 as presented to the Water Subcommittee in April 2022.
Veolia performed a detailed bid analysis and bid leveling and has found C.P. Construction to be complete and responsive. C.P. Construction has committed to meeting the project completion deadline date of October 31, 2022, while Ferreira Construction has informed Veolia that they would not be able to meet the project completion deadline of October 31, 2022, and the earliest completion date that Ferreira Construction agreed to is around June 2023, due to limited crews and availability of materials.
Therefore, City staff and RWS/Veolia recommend awarding the construction Subcontract for water line improvements along Riverside Avenue between the Metro Link Railroad Tracks south to San Bernardino Avenue. to C.P. Construction for an amount of $2,159,401.
RWS/Veolia has completed the following activities in preparation for the Riverside Avenue Central Water Improvement project:
• Engaged the services of Engineering Resources of Southern California (ERSCI) for providing the 30% design for the project and engineering services during construction for an amount of $75,000.
• Veolia will engage the services of a geotechnical subcontractor for compaction testing in the amount not to exceed $50,000, which is also included in this authorization request.
Staff is requesting authorization a Final Construction Work Authorization (FCWA) in the amount of $2,982,691 for replacement and service connection work on the existing ductile iron pipe, service laterals and temporary hot mix paving along Riverside Avenue between the Metro Link Railroad Tracks south to San Bernardino Avenue. The final FCWA is included as Attachment 1.
This includes Veolia’s contractual markups of 20% and a project contingency of 15% for any additional design support and resolving any unforeseen conditions during project construction, since this project was bid with 30% complete drawings due to schedule constraints. Any uncommitted contingencies shall revert to the City.
This item was presented to the Water Subcommittee (Mayor Robertson / Mayor Pro Tem Scott) at the July 27, 2022, meeting. The Water Subcommittee recommends the City Council, and the Rialto Utility Authority approved the FCWA with RWS.
ENVIRONMENTAL IMPACT
This report is not a “Project” as defined by the California Environmental Quality Act (CEQA). Pursuant to Section 15378(a), a “Project” means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. According to Section 15378(b), a Project does not include: (5) Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.
GENERAL PLAN CONSISTENCY
This action is consistent with Guiding Principle 3 in the General Plan:
Our City government will lead by example, and will operate in an open, transparent, and responsive manner that meets the needs of the citizens and is a good place to do business.
Approval of this action also complies with the City of Rialto General Plan Goal and Policies:
Goal 3-8: Promote affordable and quality water service capable of adequately meeting normal and emergency water demands to all areas in Rialto.
Policy 3-8.7: Develop new sources of water supply, including drilling additional water wells that are free from perchlorate, and expanding recycling water opportunities.
Policy 3-8.8: Work with municipal water districts to explore new water conservation opportunities within Rialto.
Policy 3-8.9: Conserve potable water and utilize reclaimed water for meeting landscaping and irrigation demands as much as possible.
LEGAL REVIEW
The City Attorney has reviewed and recommends approval of the staff report.
FINANCIAL IMPACT:
Operating Budget Impact
The Utility Authority will absorb the operating costs, within the existing Concession Agreement.
Capital Improvement Budget Impact
The total amount for the FCWA is $2,982,691. The full cost of this project will be funded with the remaining water Facility Improvement Plan Funds held by Rialto Water Services in the Capital Trust Account.
RECOMMENDATION
Staff recommends that the City Council/Rialto Utility Authority Board
(1) Approve Final Construction Work Authorization to Rialto Water Services in the amount of $2,982,691 for the Construction of Riverside Avenue Central Water Improvements Project, and
(2) Authorize the City Manager to Execute All Related Documents.