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Home My WebLink About06.a. Award contract for DAF Tanks Renovation, District Project 7309Central Contra Costa Sanitary District 6-a. ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: May 15, 2014 Subject: DECLARE BID FROM INDUSTRIAL COATING AND RESTORATION NONRESPONSIVE; AWARD A CONSTRUCTION CONTRACT, AND AUTHORIZE THE GENERAL MANAGER TO EXECUTE CONTRACT DOCUMENTS SUBJECT TO SUBMITTAL REQUIREMENTS WITH W.M. LYLES COMPANY FOR THE CONSTRUCTION OF THE DAF TANKS RENOVATION, DISTRICT PROJECT 7309; APPROVE CONTINGENCY PROJECT FOR $866,550; AND APPROVE A SUPPLEMENTAL AUTHORIZATION FOR $267,000 TO THE TREATMENT PLANT PROGRAM CONTINGENCY ACCOUNT OF THE FISCAL YEAR 2013 -14 CAPITAL IMPROVEMENT BUDGET Submitted By. Initiating Dept. /Div.: Brad Leidecker, Associate Engineer Engineering / Capital Projects REVIEWED AND RECOMMENDED FOR BOARD ACTION: 1 E. Lopez - Senior Engineer 't� [!I- A. Antkowiak - Capital Projects Division Manager ` le K. Alm oger S. S. Bailey Counsel for the District General Manager ISSUE: On April 16, 2014, six sealed bids were received and opened for the construction of the Dissolved Air Flotation (DAF) Tanks Renovation, District Project 7309. The Board of Directors must award the contract or reject bids within 50 days of the bid opening. The Board has to approve all contingency allocations above $100,000. RECOMMENDATION: Find that the project is exempt from the California Environmental Quality Act (CEQA); declare bid from Industrial Coating and Restoration nonresponsive; award a construction contract to W.M. Lyles Company; and authorize the General Manager to execute the Contract Documents subject to favorable review of insurance certificates, bond submittals, appropriate Contractor license, and any other required submittals (SUBMITTALS); approve contingency project for $866,550; and approve a supplemental authorization for $267,000 to the Treatment Plant Program contingency account of the Fiscal Year (FY)2013 -14 Capital Improvement Budget. FINANCIAL IMPACTS: Approximately $966,550, including design, bid price, contingency, inspection, and construction management. Staff has already spent approximately $100,000 on the prebid expenditures from the FY 2012 -13 Treatment Plant Program contingency account. As of today, the FY 2013 -14 Treatment Plant Program contingency account has approximately $600,000 remaining in it, and a supplemental authorization to this account is necessary to complete the project. C: \Users \danderson\AppData \Local \Microsoft \Windows \Temporary Internet Files \Content.Outlook \DVCG8C5G \7309- PP Award final.docxPage 1 of 7 POSITION PAPER Board Meeting Date: May 15, 2014 Subject: DECLARE BID FROM INDUSTRIAL COATING AND RESTORATION NONRESPONSIVE; AWARD A CONSTRUCTION CONTRACT, AND AUTHORIZE THE GENERAL MANAGER TO EXECUTE CONTRACT DOCUMENTS SUBJECT TO SUBMITTAL REQUIREMENTS WITH W.M. LYLES COMPANY FOR THE CONSTRUCTION OF THE DAF TANKS RENOVATION, DISTRICT PROJECT 7309; APPROVE CONTINGENCY PROJECT FOR $866,550; AND APPROVE A SUPPLEMENTAL AUTHORIZATION FOR $267,000 TO THE TREATMENT PLANT PROGRAM CONTINGENCY ACCOUNT OF THE FISCAL YEAR 2013 -14 CAPITAL IMPROVEMENT BUDGET ALTERNATIVES /CONSIDERATIONS: Reject all bids, which is not recommended. The District recently experienced a major failure of DAF Tank 1, which prompted emergency action by the Board. The renovation work under this project is critical, and staff does not recommend postponing the project and risking another failure. Should this project be re -bid, the project will be postponed until summer 2015 as the protective coating application is best performed in the dry season when temperature and humidity conditions are optimal. No other projects will be impacted by this contingency project. BACKGROUND: The District uses three DAF tanks, installed in 1986, to thicken secondary sludge. In April 2013, DAF Tank 1 required emergency repairs as a result of significant metal loss and failure of the rotating skimmer arms and tank. Following the failure, each of the DAF tanks was sequentially taken out of service for detailed inspection and condition assessment. While inspection results showed Tank 1 was in the worst condition, it was recommended that all tanks receive new protective coatings, structural and various repairs as a result of corrosion and wear. The project initially included structural and protective coating rehabilitation to DAF Tanks 2 and 3. However, during design, staff identified corroded conduits and other electrical deficiencies that require replacement. Therefore, this project will also include electrical upgrades that will build the electrical raceways to current industrial standards. DAF Tank 1 will receive additional rehabilitation that was not performed or identified during the 2013 emergency efforts. Overall, this project will increase the reliability and extend the useful life of the tanks and improve corrosion protection. The DAF tank system is a critical part of the solids handling process, and disruption or failure to this equipment has major impacts to the operations of the furnace and sludge dewatering systems. The project work areas are shown in Attachment 1. Complete Project Solutions, Inc. and District staff prepared the plans and specifications for the project. The Engineer's estimate for construction of the DAF Tanks Renovation, District Project 7309, is $550,000. This project was advertised on April 1 and 8, 2014. Six sealed bids ranging from $529,000 to $762,500 were received and publicly opened on April 16, 2014. The Engineering Department conducted a technical and commercial review of the bids and determined that Industrial Coating and Restoration's bid was incomplete due to Industrial Coating and Restoration's failure to submit Part III - Bid Forms — Section 7, Noncollusion Declaration to be Executed by Bidder and Submitted with Bid and, Page 2 of 7 POSITION PAPER Board Meeting Date: May 15, 2014 subject DECLARE BID FROM INDUSTRIAL COATING AND RESTORATION NONRESPONSIVE; AWARD A CONSTRUCTION CONTRACT, AND AUTHORIZE THE GENERAL MANAGER TO EXECUTE CONTRACT DOCUMENTS SUBJECT TO SUBMITTAL REQUIREMENTS WITH W.M. LYLES COMPANY FOR THE CONSTRUCTION OF THE DAF TANKS RENOVATION, DISTRICT PROJECT 7309; APPROVE CONTINGENCY PROJECT FOR $866,550; AND APPROVE A SUPPLEMENTAL AUTHORIZATION FOR $267,000 TO THE TREATMENT PLANT PROGRAM CONTINGENCY ACCOUNT OF THE FISCAL YEAR 2013 -14 CAPITAL IMPROVEMENT BUDGET therefore, the bid was nonresponsive. The noncollusion declaration is a specific statutory requirement under California Public Contract Code Section 7106. Because Industrial Coating and Restoration's bid was nonresponsive, W.M. Lyles Company became the lowest responsive and responsible bidder with a bid amount of $617,000. The W.M. Lyles bid is over the engineer's estimate, however staff believes that re- bidding the project in almost a year will not provide significant cost savings considering the work involved to rebid, the raising costs of materials and labor, and bid climate uncertainty. Performing the work during the late fall or winter months will add significant costs to the project due to the extra equipment and energy involved to allow for the appropriate coatings application conditions. A summary of bids received is shown in Attachment 2. The District will perform construction management and will provide contract administration, office engineering, and submittal review. Assistance with field inspection and specialty inspections will be provided by Complete Project Solutions, Inc. and Bay Area Coating Consultants, Inc. (BACC). The funds required to complete this project, as shown in Attachment 3, are $866,550. The total cost of the DAF Tanks Renovation, District Project 7309, is anticipated to be $966,550. This project was initiated in FY 2012 -13 during the emergency repair with a $100,000 allocation from the FY 2012 -13 Treatment Plant Program contingency budget. To complete the project, an allocation of $866,550 will be necessary from the FY 2013 -14 Treatment Plant Program contingency account, which exceeds the budgeted allocation by approximately $267,000. Currently, the FY 2013 -14 Treatment Plant Program contingency account has approximately $600,000 remaining. A supplemental authorization of $267,000 will be needed to fund the project from the FY 2013 -14 Treatment Plant Program contingency account and Board approval of the contingency project. Staff has concluded that this project is exempt from CEQA under District CEQA Guidelines Section 15301 since it involves minor alterations to an existing public facility involving negligible or no expansion of use. Approval of this project will establish the Board of Directors' independent finding that this project is exempt from CEQA. Page 3 of 7 POSITION PAPER Board Meeting Date: May 15, 2014 subject. DECLARE BID FROM INDUSTRIAL COATING AND RESTORATION NONRESPONSIVE; AWARD A CONSTRUCTION CONTRACT, AND AUTHORIZE THE GENERAL MANAGER TO EXECUTE CONTRACT DOCUMENTS SUBJECT TO SUBMITTAL REQUIREMENTS WITH W.M. LYLES COMPANY FOR THE CONSTRUCTION OF THE DAF TANKS RENOVATION, DISTRICT PROJECT 7309; APPROVE CONTINGENCY PROJECT FOR $866,550; AND APPROVE A SUPPLEMENTAL AUTHORIZATION FOR $267,000 TO THE TREATMENT PLANT PROGRAM CONTINGENCY ACCOUNT OF THE FISCAL YEAR 2013 -14 CAPITAL IMPROVEMENT BUDGET RECOMMENDED BOARD ACTION: Staff recommends the following: Find that the project is exempt from CEQA, 2. Declare the bid from Industrial Coating and Restoration nonresponsive, 3. Award a construction contract in the amount of $617,000 for the construction of the DAF Tanks Renovation, District Project 7309, to W.M. Lyles Company, the lowest responsive and responsible bidder, 4. Authorize the General Manager to execute the Contract Documents subject to SUBMITTAL requirements, 5. Approve contingency project for $866,550, and 6. Approve a supplemental authorization for $267,000 to the Treatment Plant Program contingency account of the FY 2013 -14 Capital Improvement Budget. Attached Suoportinq Documents: 1. Project Location Map 2. Summary of Bids 3. Post -Bid / Preconstruction Estimate Page 4 of 7 ATTACHMENT 1 DAF TANKS RENOVATION DISTRICT PROJECT 7309 LOCATION MAP "N' Sludge Thickeers Substation 73 n Holding Basin g q°i0Ut11 Mechanical Maintenance Bldg. Controlls Building DAFTANK3 SAND BLAST ARFA Bldg. & Ground Shop Substation 81 DAF TANK 2 ;�, CONTRACTOR DAFTANK1 STAGING ture Substation 33 AREA _ k�tfJuent Diversion 6;dg, Sludge Storage Tanks �`- Garden i 1 North Clarifiers South Clarifiers (Sec. ;Sed. Tanks) a ants Pum Station - Substation 34 SubStatio t i n �.._ .... ......._... k. ` Maintenance &s, -, .M -•... .,• ,. .. Reliability Center -'(h Standby Power Bldg, Primary Sedimentation Tanks Area C:\ Users \danderson\AppData \Local \Microsoft \Windows \Temporary Internet Files \Content.Outlook \DVCG8C5G \7309- PP Award final.docxPBge 5 of 7 ATTACHMENT 2 DAF TANKS RENOVATION DISTRICT PROJECT 7309 SUMMARY OF BIDS PROJECT NO.: 7309 NO. OF ADDENDA: 1 DATE/TIME: APRIL 16,2014/2:00 PM PROJECT NAME: DAF TANKS RENOVATION PROJECT MANAGER: BRAD LEIDECKER PROJECT LOCATION: 5019 IMHOFF PLACE, MARTINEZ, CALIFORNIA ENGINEER'S ESTIMATE: $550,000 NO. BIDDER BID PRICE 1 Industrial Coating and Restoration $529,512 Oceanside, CA 92054 2 W.M. Lyles Company $617,000 West Sacramento, CA 95691 3 TPA Construction, Inc. $647,000 Rocklin, CA 95765 4 Pacific Infrastructure Corp. $661,000 Pleasanton, CA 64566 5 Aztec Consultants, Inc. $739,399 San Ramon, CA 94583 6 D.W. Nicholson Corp. $762,500 Hayward, CA 94540 BIDS OPENED BY /s/ Elaine R. Boehme, CMC DATE April 16, 2014 C:\ Users \danderson\AppData \Local \Microsoft\Windows \Temporary Internet Files \Content.Outlook \DVCG8C5G \7309- PP Award final.docx Page 6 of 7 ATTACHMENT 3 DAF TANKS RENOVATION DISTRICT PROJECT NO. 7309 pnsT_Rin i PRFCONSTRUCTION ESTIMATE No. Item Description Amounts % Construction Cost 1. CONSTRUCTION a. Construction Contract $617,000 b. Contingency at 15% $92,550 SUBTOTAL - CONSTRUCTION COST $709,650 100% 2. CONSTRUCTION MANAGEMENT a. District Forces - Engineering $50,000 - Construction Management $30,000 - POD Coordination $10,000 b. Consultants - Structural Engineering Construction Services and Inspection (CPS) $60,000 - NACE Certified Coatings Inspection (BACC) $12,000 SUBTOTAL - CONSTRUCTION MANAGEMENT $162,000 23% 3. PREBID EXPENDITURES a. Engineering (Staff and CPS) $95,000 SUBTOTAL - PREBID EXPENDITURES $95,000 13% 4. TOTAL PROJECT COST $966,550 5. FUNDS AUTHORIZED TO DATE $100,000 6. ADDITIONAL ALLOCATION NEEDED TO COMPLETE PROJECT (Line 4 - Line 5) C:\ Users \dandersonWppData \Local \Microsoft \Windows \Temporary Internet Files \Content.Outlook \DVCG8C5G \7309- PP Award final.docx Page 7 of 7