RPVCCA_CC_SR_2013_05_21_H_San_Ramon_Canyon_Contract_Change_OrderCITY OF
MEMORANDUM
RANCHO PALOS VERDES
TO:
FROM:
DATE:
SUBJECT:
HONORABLE MAYOR &CITY COUNCIL MEMBERS
LES JONES,INTERIM DIRECTOR OF PUBLIC WORK
May 21,2013
APPROVE VALUE ENGINEERING CONTRACT
CHANGE ORDER FOR SAN RAMON PROJECT
REVIEWED:CAROLYN LEHR,CITY MANAGER S?f~fY..
Project Manager:Ron Dragoo,Senior Engine~~
RECOMMENDATION
Authorize the Interim Director of Public Works to execute Change Order Number 1 to
the San Ramon Canyon Stormwater Flood Reduction Project with L.H.Woods and
Sons,Inc.
BACKGROUND/DISCUSSION
The City Council authorized a construction contract with L.H.Woods and Sons,Inc.at
their March 5,2013 meeting.The contract requires the Contractor to install
approximately 4,000 feet of pipe from San Ramon Canyon to the Pacific Ocean.
The specifications for the construction of the San Ramon Canyon Stormwater Flood
Reduction Project call for the use of a proprietary steel pipe manufactured by Permalok
pipe as follows:
"Fifty four inch (54")outside diameter steel pipe and fittings used for this project
shall be "Permalok"Steel Pipe (Class 3,DSAW,shop rolled and welded from
commercial grade steel plating that carries a yield strength of 35ksi in accordance
with Permalok specifications)or pre-approved exact equal.Each pipe length is
anticipated to be twenty-feet (20')long and comes with a Permalok "Push Ring"
and "RTV Silicone Sealant"."Permalok"steel pipe has a prefabricated interlocking
pipe joining system that does not require field welding to make the required field
connections (except at elbow bends or wall thickness transition connections)..."
The pipe system was recommended by the design engineer Harris &Associates.Staff
accepted the design engineer's recommendation to use the Permalok pipe system.
H-1
This system was used during the construction of the McCarrell Canyon storm drain
system,and it nearly eliminates the need for field welding and lining at the pipe joints.
Permalok pipe is proprietary and patented.The pipe has a male end with machined
teeth on the male end and corresponding teeth on the female end,which allows the
pipe to lock into place when forced together.The typical way of joining steel pipes is to
weld them together.
As previously mentioned,Permalock pipe was successfully used for the McCarrell
Canyon Project in a similar application several years ago.However there were/are a
number of shortcomings,which include the need to do extensive amounts of repairs to
the pipe lining,which had been damaged during transportation.A second issue is that
of the epoxy lining that was used by Permalok,which is strong,also is brittle and has
not performed as well as expected,based upon a recent inspection of the pipe in
McCarrell Canyon.
Permalok pipes used during the McCarrell Canyon construction were manufactured in
St Louis and delivery and handling of the pipes was a major concern.The pipes
manufactured at the Permalok facility in Missouri are shipped by road to another facility
about 20-miles away in Illinois for coating and lining.The completed products are
loaded onto rail cars and shipped to a marshaling yard for shipment to a rail head in
Kansas City.They continue on their journey and once again go through marshaling
before being shipped to another rail-head.This process is repeated 2 or 3 more times
before they arrive at Barstow,where they wait for the appropriate window (which is
sometimes several days)to negotiate the Cajon Pass before arriving at Rancho
Cucamonga,where the pipes are off loaded and delivered to a staging yard.The pipes
then are loaded and shipped to the field by road when required.With all the handling,
the pipes sustain a fair amount of damage to the epoxy coating and the lead-time
between manufacture and delivery is extensive and unpredictable.
Staff is proposing waving the requirement for the contractor to use the proprietary
"permalok"product and accept the Contractor's proposal for an approved alternative
steel pipe.
The General Contractor L.H.Woods &Sons has proposed substituting the Permalok
steel pipe with a conventional welded steel pipe using similar specifications for the steel
used in the fabrication of the pipe.The alternative steel pipe is manufactured by North
West Pipe in California.The pipes will be lined using a polyurethane lining,which has
excellent wear properties,is more flexible than epoxy and is less prone to chipping.It
also can be repaired more easily if it becomes damaged over time by rocks and debris
that enter the pipe.Staff believes the proposed flexible pipe lining material and process
to install the lining is superior to the epoxy lining in the Permalock pipe that was
specified in the City's bid documents.The pipe will be joined with a 3"bell lap and
welded together conforming to specific welding standards.The joints will be lined with
the polyurethane liner in the field under controlled conditions.The vast majority of all
large diameter steel piping used through the country is installed using the bell lap
welded method previously described.
The substitute pipe is manufactured and lined in the same facility located in Southern
California and is shipped directly to the job site by road,minimizing the amount of
handling and minimizing the chances to damage the pipe lining.
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Harris and Associates are the design engineers for the San Ramon Project;they are
not steel pipe specialists,so to evaluate the adequacy of the proposed steel pipe,the
City contracted with Kennedy Jenks,an independent steel pipe specialist consulting
firm to perform a technical comparison between the two products.Kennedy Jenks
found the proposed substitute pipe to be an equivalent product to the Permalock pipe.
Staff believes the proposed pipe lining material and process to be superior to the epoxy
lining specified by the City in its original plans and specifications.Harris &Associates,
the Engineer of Record has accepted Kennedy Jenks findings.
The contractor has provided the City with all of the costs associated with using both
products,which shows a total saving of $630,688.80.City staff has reviewed the
numbers and verified that they are an accurate representation of the savings.The
California Public Contract Code Section 7101 states:
"The state or any other public entity in any public works contract awarded to the lowest bidder,may
provide for ·the payment of extra compensation to the contractor for the cost reduction changes in the
plans and specifications for the project made pursuant to a proposal submitted by the contractor.The
extra compensation to the contractor shall be 50 percent of the net savings in construction costs as
determined by the public entity.For projects under the supervision of the Department of Transportation or
local or regional transportation entities,the extra compensation to the contractor shall be 60 percent of the
net savings,if the cost reduction changes significantly reduce or avoid traffic congestion during
construction of the project,in the opinion of the public entity.The contractor may not be required to
perform the changes contained in an eligible change proposal submitted in compliance with the provisions
of the contract unless the proposal was accepted by the public entity."
Proposals of this type submitted by contractors are typically referred to as value
engineering proposals.If the proposal is accepted by the City,the Public Contract
Code requires that the savings initiated by the contractor must be shared on a 50:50
basis between the City and the contractor.Therefore the savings offered to the City for
this material change is $315,334.40.
Staff believes,based on technical review of the proposed materials that the two types
of pipe are equivalent,and the steel pipe proposed by the Contractor is preferable
because the polyurethane lining offered with the substitute pipe is less brittle than the
lining of the Permalock pipe.Staff is also concerned about the Permalok pipe delivery
schedule.
For all of these reasons,Staff recommends the acceptance of the Contractor's Value
Engineering offer,which represents a saving of $315,334.40 to the project and requests
the City Council to authorize Change Order Number 1 to the San Ramon Stormwater
Floodwater Reduction Project to formalize the change.
CONCLUSIONS
Adopting staff's recommendation will authorize the Interim Director of Public Works to
execute the attached Contract Change Order,changing the contract requirements to
allow use of the steel pipe and lining proposed by the Contractor.
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FISCAL IMPACT
Adopting staff's recommendation will reduce to overall cost of construction by
$315,334.40.
Attachment:A)
B)
C)
Contract Change Order Number 1
Report from Kennedy Jenks
Letter from Harris and Associates
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Project:
30940 Hawthorne Blvd.
Palos Verdes,CA 90275
Rancho
San Ramon Canyon Storm Drain System Project
Change Order #
Attention:Mike Ireland
L.H.Woods &Sons,Inc.
2115 La Mirada Drive
CA 92801
Description I Quantity Unit Price
1
Vista,
Amount
Value Engineering to supply and install an approved alternative 54"steel pipe for the project.The cost saving
is shared at a 50:50 ratio with the contractor.All expenses,including the hiring of a certified independent -50%I 630,668.80 ILS
welding inspector are included in the net saving.Note:This CO is subject to final approval of the submittals by
Harris &Associates and acceptance by the City Council.
Total
Original Contract Value
Total Value of all Previous Change Orders
Total Revised Contract Sum Prior to this Change Order
Value of this Change Order
New Contract Sum
Change in Contract Days
Revised Contract Completion Date
-315,334.40
-315,334.40
15,140,000.00
0.00
15,140,000.00
-315,334.40
14,824,665.60
o
4/6/2014
Accepted:LH Woods &Sons
By
Date:_
Construction Manager
By
Date:_
Authorized:
By
Rancho Palos Verdes
Date:_
H-
5
Attachment B)
Kennedy'.Jenks Consultants
8 April 2013
Memorandum
To:
From:
Subject:
Mr.Alan Braatvedt ~
City of Rancho Palos Verdes
James Bowland P.E.C6640~~
Pipe Material Evaluation for tan Ramon Storm Drain Project
K1J ProjectNumber
The purpose of this memo is to present our opinion on the use of Northwest Pipe supplied spiral
welded and polyurethane lined and coated steel pipe with heat shrink sleeves for exterior joint
coating versus Permalok epoxy lined welded steel pipe with an epoxy coating for the San
Ramon Storm Drain Project.
Background
The 4,100 linear foot long pipe will be used as a storm drain and be subject to heavy debris flow
and very high water velocities.Approximately 200 linear feet will be installed in a "slant drain"
mined tunnel as the pipe approaches the ocean outfall.A second 1,850 linear foot portion of the
pipe will be installed in a steel ribbed and timber lagging tunnel.In both trenchless installations
the annular space between the carrier pipe and tunnel will be fully grouted.The remainder of the
pipe will be installed using open cut trenching and use imported sand as backfill or concrete if
cover is less than two feet.
Evaluation
This section presents our evaluation of the materials and will compare the steel used to
fabricate the pipe,the pipe joints,and the linings and coatings.
Steel Pipe Materials
The Permalok pipe is a rolled and sheet welded steel cylinder constructed of 35,000 pound per
square inch (psi)yield strength steel.Permalok's web site states that they use a minimum
ASTM A36 structural or ASTM A572 plate steel.The Northwest supplied steel pipe is spiral
welded AWWA specified C200 pipe that will have ASTM A1018 or plate welded ASTM A572
Grade 40 (40 ksi)steel.The A572 material is used when the pipe wall thickness exceeds the
capabilities of the spiral weld machine,and the pipe has to be manufactured using rolled steel
plate.
The Northwest pipe steel is eqUivalent in strength to the Permalok pipe,and the AWWA
manufacturing standards will add extra quality assurance and quality control to the
manufacturing process.
u;~amesbowland\san ramon\pipe_memo_san ramon 8apr2013.docx @ Kennedy/Jenks Consultants,Inc
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Kennedy/Jenks Consultants
Memorandum
Mr.Alan Braatvedt
8 April 2013
Page 2
Pipe Joints
The Permalok pipe uses a proprietary T5 machined joint ring to join 20-foot lengths of pipe
during assembly in the field.The joint is designed primarily for tunnel casing installation.The
joint is designed to transfer jacking loads between pipe sections and maintain the alignment
between pipe pieces.The T5 joint is not water tight and is not designed for pressure pipe
applications.
The Northwest pipe uses a bell and spigot double lap weld joint.The pipe joint is water tight
and is the industry standard for steel water and sewer pipes.This joint is not designed for pipe
jacking;however the double welding gives the pipe joint an equivalent strength of the adjacent
steel cylinder for buckling (static and live loads)and longitudinal forces from thermal expansion
and contraction.
Since the Permalok pipe uses a mechanical joint it will not perform as well as a continuously
welded pipe if cathodic protection is used for protecting the exterior of the pipe.While it is our
experience that the Permalok pipe is electrically continuous (Freeport Regional Water Authority
Segment 1 Bruceville Tunnel 2008),it is not designed to be electrically continuous without joint
bonding.
For this application the Northwest double welded bell and spigot joint is at least equivalent due
to its water tightness and electrical continuity.Also note that since the pipe will not be used for
pipe jacking the Permalok T5 joint is not needed.
Linings and Coatings
The Permalok pipe specified has an interior lining of 80 mils of "Tnemec Series 431 Perma-
Shield PL"and an exterior coating of 30 mils of Sherwin Williams Duraplate.Northwest Pipe is
proposing to use a 100%solids polyurethane lining from Lifelast (Lifelast 210).The lining
thicknesses proposed by Northwest Pipe are the same as specified for the epoxy products.
Table 1:Physical Characteristics presents a summary comparison between the epoxy and
polyurethane products physical characteristics from ASTM testing.Examining the physical
characteristics reveals that both products are very similar in abrasion resistance,hardne.ss,and
adhesion.The polyurethane is slightly better in impact resistance and is far superior when it is
deformed.With the superior deformation characteristics the polyurethane will remain a "plastic"
material after it cures while the epoxy becomes a hard and brittle material.Both materials
exhibit very similar resistances against corrosive agents normally found in wastewater and are
recommended for protection of steel surfaces in severe wastewater conditions.This chemical
resistance should extend to the resistance against salt water corrosion from atmospheric
exposure of the pipeline near the ocean outfall.
u:'jamesbowlandlsan ",mon\plpe_memo_san ",mon Sapr2013.doex €I Kennedy/Jenks Consultants,Inc.
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Kennedy/,Jenks Consultants
Memorandum
Mr.Alan Braatvedt
8 April 2013
Page 3
Table 1:Physical Characteristics
Parameter Epoxy-Tnemec Series 431
Abrasion (ASTM D4060)76 mg
Hardness-Shore D Hardness 78
Adhesion to steel (ASTM D4551)1,769 psi
Deflectio~No cracking following 5%ring
deflection
Flexibility (ASTM D522)N/A
Polyurethane-Lifelast 210
69.4 mg
74±3
>1,500 psi
N/A
No cracking or delaminating on 1"
mandrel
Impact resistance (ASTM G14)160 in-Ibs (from NASSCO spec)180 in-Ibs.
Field coating the Permalok pipe would only be used when the pipe joints are welded for joint
restraint,the field coating would be the same epoxy used for shop coating the exterior of the
pipe.The Northwest pipe would use an 80 mil heat shrink sleeve for the exterior of the pipe
joints and hand or spray applied Lifelast 210 for the interior pipe joints.While the field coating of
the Northwest pipe would be more laborious it is better than the Permalok pipe since it is thicker
on the exterior joints and 100%of the interior joints would be coated.With the Permalok pipe
there is a possibility of corrosion at the pipe joints since the joint seam is not coated.
It is our opinion that the polyurethane lining material would be superior to epoxy in an extremely
abrasive environment with debris flows since it is less susceptible to chipping from debris and
cracking from pipe deflection.In addition all the pipe joints are coated reducing corrosion at the
pipe joints.
Summary
In summary it is our opinion that the steel pipe cylinder.pipe joint,and coatings being proposed
are at least equivalent to the Permalok pipe that was specified and add advantages that include:
•Manufacturing to AWWA standards,
•Water tight and electrically continuous pipe joint.
•Lining has an increased resistance to impact and deformation,and
•Interior and exterior of pipe are lined and coated during installation.
cc:David Ferguson,Los Angeles
u:\!amesbowlandlsan ramon'l>ipe_memo_san ramon 8epr2013.docx IJ Kennedy/Jenks Consullents.Inc.
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Attachment C)
,----_._--_.-.--\
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L.H.WOODS &SONS,INC.
general tEngineerine Contractors •
*REV'ISWE"D
~~
S U~STiT\JTt=:
(NOT "'$p...rJ
""PPfL'OlJf5,D
~~U~l-)
rIJ REVfEWED X-rIJ RESUBMmAl
NOT REQUIRED
o NOTE CORRECTIONS 0 RESUBMIT
fJ REJECTED
9Ailbment has been revelwed for general
conformance and compliance wiltl the design concepl
of the l!tOje(:t and infQtmationgiven In the COl'l1racl
DocI.Itrlenls.(Any action shoWn is subject 10 the
requireInenls 01 \he COntract Documents).AwtWal of
8 specific ilem does not include approval 01 tna
assembly of which the item 15 iii component.
ConlraQtol'Is re$pOllslble for.COnflnt}ing1Jt*_..I...8ocmSfllI~8.~.ociates101.•d taetlfllqUO$of construction:rl!~•fng the War!<wllh 1hat of aN
other trades and performing all Work io ill safa and
sati$faetory manner.Any discrepenckls between
Contract Doct.Imenlll and Contractors sUbmlttaJ $hall
be the responsibility of Contractor.
May 14,2013
City of Rancho Palos Ve
30940 Hawthome Blvd.
Rancho Palos Verdes,C
Mr.Alan Braatvedt
San Ramon Canyon Sto
05/09/2013 submittal #36
DATE:
TO:
ATTN:
RE:
Oear,Alan.
following
2.,.old
~~~~
each one of the pipes and specials is numbered With it's position In the alignment.Also,
the Slant drain Is 20'segments with no exterior coating and the Rib Lag Is 25'segments
with no exterior coating (It would be dlffloult for cross-use here).Lay drawings for e.ach
segment will be supplied accordingly.Northwest Pipe Company will also respond to the
request.
3.LHWS has proposed to use a Single Double Pass weld on the Interior of the piping
system.This Is a watertight welded system,meeting all the requirements of the AWW A
and AWS,that would withstand test pressures of 200 PSI,far greater than any.(perma-
10k)joint would,as they are not considered water tight.Currently,I do not believe that
the AWWA allows a perma-Iok joint for water conveyance.
4.All of the spiral welded pipe is suitable for jacking into place.This is a common practice
regUlarly undertaken in all 50 states with spiral welded pipe.LHWS has completed more
than 150 locations in the past 50 years,where spiral welded carrier pipe Is jacking Into a
host tunnel or pipe.NW Pipe will also supply a list of the hundreds of projects and
agencies that have also successfully done so.The pipe will be plaoed onto skids in the
Pit,lined up with the pipe previous pushed into place,Inserted to the stop fine and then
finally tack welded on the 00 in four locations so that the pipe can be pushed into the
tunnel segment.Once the entire alignment Is pushed into place all of the interior double
pass welding will be completed.Northwest Pipe Company will also respond to the
request.
1.
Corporate Office:2115 La Mirada Drive •Vista.CA 92081 •(760)599·5500 •Fax:(760)599·5510
H-9
L.H.WOODS &SONS,INC.
qeneraCfEngineering Contractors •
5.The details for the 1"pipe and velocity reducer rings will be supplied with the detailed lay
drawings.Northwest Pipe Company wiJI also respond to the request.
6.Full lining repair of the hold backs will be completed.
7.The credit for the approved alternate and/or equal is ongoing.
Respectfully yours,
Michael Ireland
GENERAL ENGINEERING CONTRACTORS
Corporate Office:2115la Mirada Drive •Vista,CA 92081 •(760)599-5500 •Fax:(760)599·5510
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