HomeMy WebLinkAbout09.d.1)a) Action Summary-Engineering & Operations Committee 03-11-15Central
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Sanitary District
REGULAR MEETING OF THE BOA RD OF DIRECTORS
CENTRAL CONTRA COSTA MICHAEL R.MCCILL
SANITARY DISTRICT President
ENGINEERING & OPERATIONS TADJPILECKI
President Pro Tent
COMMITTEE PAUL HCAUSEY
JAMES A. NEJEDLY
DAVID R. WILLIAMS
ACTION SUMMARY PHONE: (925) 228 -9500
FAX: (925) 676 -7211
Chair Causey www.centralsan.org
Member Nejedly
Wednesday, March 11, 2015
3:00 p.m.
2 "d Floor Conference Room
5019 Imhoff Place
Martinez, California
PRESENT: Chair Paul Causey, Member Jim Nejedly, General Manager Roger Bailey,
Deputy General Manager Ann Sasaki, Provisional Capital Projects Division Manager
Edgar Lopez, Director of Administration David Heath, Accountant Amal Lyon, Director of
Engineering and Technical Services Jean -Marc Petit, Senior Engineer Thomas Brightbill
(left after Item 3.), Senior Engineer Craig Mizutani (left after Item 8.a.), Senior
Administrative Technician Christina Gee
Call Meeting to Order
Chair Causey called the meeting to order at 3:00 p.m.
2. Public Comments
None.
3. Review draft position paper to approve a contingency project in the amount of
$290,000 from the Fiscal Year (FY) 2014 -15 Collection Systems Program
Contingency Account for the Martinez Easement Acquisition 2015 -18 Project
Director of Engineering and Technical Services Jean -Marc Petit explained that a
separate project number has been created to track costs specific to easement
acquisition costs for projects in the City of Martinez.
Chair Causey stated that it was his understanding that staff was directed by the
Committee to perform an evaluation of the funding options it could offer the City
and the possibility of creating an assessment district. Mr. Petit explained that the
Engineering & Operations Committee Action Summary
March 11, 2015
Page 2
Martinez Sewer Renovations, Phase 4, Project did not include the easement
acquisition costs under the project, and the action requested is being suggested
to cover this expense.
Chair Causey also requested that the contingency amount be more clearly
explained in the position paper and noted that it was unclear to him whether
there were enough contingency funds left in the Collection System Program
Contingency Account. Provisional Capital Projects Division Manager Edgar
Lopez explained that there were sufficient funds in the collection system program
contingency, and he would rephrase the language associated with the use of
contingency more clearly in future position papers.
Member Nejedly recommended that easement acquisition costs for projects in
Martinez be taken from individual Martinez sewer renovation projects. This was
presented as an alternative in the position paper, and Member Nejedly believed
this method would be easier for staff to track the easement acquisitions.
Chair Causey agreed with Member Nejedly's recommendation. He also
requested that the Committee receive a report on the easements and funding
alternatives for Martinez- related projects, specifically, noting that the City of
Martinez should continue to fulfill its financial commitment to provide easements
for the sewers that were annexed to the District.
COMMITTEE ACTION: Recommended that easement acquisition costs for
projects in the city of Martinez be taken from individual Martinez sewer
renovation projects and requested a report on easements and funding
alternatives for Martinez.
4. Receive mid -year status report on the FY 2014 -15 Capital Improvement Budget
(CIB)
Mr. Lopez gave the presentation included in the agenda packet. He noted that
the total budgeted project expenditures on slide 4, project variances, was revised
to $2,417,000.
With regard to the Centrifuge Project in the Treatment Plant Program, which is
currently in a pilot testing phase, Chair Causey stated his belief that the number
of centrifuges the District has is redundant. Chair Causey stated that he would
be interested in the results of the study, specifically regarding the recommended
future use of centrifuges at the District and how many are needed.
Member Causey also noted that he still wished to receive a report on specific in-
house versus consultant construction inspection costs. He requested hard
numbers in a comparison of the salaries.
COMMITTEE ACTION: Received the report.
Engineering & Operations Committee Action Summary
March 11, 2015
Page 3
5. Receive information on the Lafayette Sewer Renovations, Phase 9, District
Project 8421
Mr. Lopez stated that the project is currently out to bid, and the information
presented is intended to be a preview of the project to preempt questions that
may arise from the Committee at the award stage.
Mr. Petit asked whether the Committee felt it was beneficial to receive
information on the project or other projects prior to the draft award position paper.
Member Nejedly stated that he did not need to see a project multiple times and
that he would prefer to see it only at the time of the award. Member Causey
stated that if a project is projected to be over budget, he would like to receive
information at this stage.
COMMITTEE ACTION: Received the information and provided input to
staff.
6. Receive information on the M1 Cured -In -Place Piping (CIPP) Rehabilitation,
District Project 8424
Mr. Lopez stated that, similar to Item 5., the information presented was of a
preliminary and informational nature, as bids have not been received for the
project. The Committee had no questions on the presentation included in the
packet.
COMMITTEE ACTION: Received the information.
7. Review draft position paper to award construction contract for the Treatment
Plant Safety Enhancements, Phase 4, and the Plant Operations Department
(POD) Americans with Disabilities Act (ADA) Improvements, District Project 7311
and discuss bid protest
Mr. Lopez stated that, since the agenda packet was distributed, staff has decided
to recommend that the Board reject all bids and re -bid the project with a
simplified scope.
COMMITTEE ACTION: Reviewed and recommended that the Board reject
all bids for the project.
8. Standing Items
tems
*a. Review schedule and discuss upcoming bids and awards and discuss
change orders over $50,000, if needed
Engineering & Operations Committee Action Summary
March 11, 2015
Page 4
• Review draft position paper amending existing sole source
resolution for Solar Turbines under the Cogen Controls Upgrade
Project, District Project 7308
This item was taken out of order, directly after Item 3. Senior
Engineer Craig Mizutani distributed an updated position paper
(attached) and described the need for the Board to amend the
resolution. The change order amount and project budget increase
to pay the amount to Solar Turbines is within the General Manager's
authority for projects.
COMMITTEE ACTION: Reviewed and recommended the Board
rescind Resolution 2013 -032 and adopt a new resolution.
• Receive General Manager Announcement to the Board for Concord
Landscape Project, Phase 2, recycled water connections.
Engineer's construction estimate is $75,000
Mr. Lopez stated that the Phase 2 work will be a continuation of
work done in Phase 1 to provide recycled water service to Zone 1
customers. It will funded with the Concord Landscape Project
budget and no additional monies are required. This work was
anticipated during the original project scope. The Board will receive
a General Manager Announcement to this effect in the March 19
agenda packet. Awarding a construction contract below $100,000 is
within the General Manager's authority limits.
COMMITTEE ACTION: Received the information.
b. Receive report regarding any projects approaching a budget overrun within
the 15 percent General Manager Authority, if needed — No staff report
COMMITTEE ACTION: None.
C. Receive presentation on projects whose costs exceed 20 percent of the
number quoted in the Capital Improvement Budget Allocation (CIBA), not
including the 15 percent General Manager contingency
Staff noted that, with the Committee's direction under Item 3., the projected
Martinez Easement Acquisition 2015 -18 costs will be paid under the
Martinez 4 project, and this most likely will require additional funding to the
project.
COMMITTEE ACTION: Received the report.
Engineering & Operations Committee Action Summary
March 11, 2015
Page 5
9. Announcements
a. Future scheduled meetings:
Wednesday, April 8, 2015 at 3:00 p.m.
Wednesday, May 13, 2015 at 3:00 p.m.
Wednesday, June 10, 2015 at 3:00 p.m.
COMMITTEE ACTION: Received the announcements.
10. Suggestions for future agenda items
Chair Causey stated that, in the past, the Board has received the full CIB
binder in January. He requested to receive the FY 2015 -16 binder as early
as possible. Mr. Petit stated that staff will include the CIB in the agenda for
the May 13, 2015 Engineering & Operations Committee meeting and is in
the process of reformatting the binder. Staff will aim to provide the binder
at least a week in advance of the May 13 meeting.
11. Adjournment — at 3:58 p.m.
* Attachment
fi Central Contra Costa Sanitary District
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BOARD OF DIRECTORS
POSITION PAPER DRAFT
Board Meeting Date: March 19, 2015
subject: RESCIND RESOLUTION NO. 2013 -032 AND ADOPT NEW RESOLUTION
TO INCREASE THE COST LIMIT FOR SOLE - SOURCE PAYMENTS TO
SOLAR TURBINES, INC, FOR THE COGEN CONTROLS UPGRADE,
DISTRICT PROJECT 7308
Submitted By: Initiating Dept. /Div.:
Craig Mizutani, Senior Engineer
REVIEWED AND RECOMMENDED FOR BOARD ACTION:
E. Lopez — Capital Projects Prov. Division Manager
J -M Petit — Director of Engineering and Technical K. Alm Roger S. Bailey
Services Counsel for the District General Manager
ISSUE: Board approval is requested to amend Resolution 2013 -032 to increase the
contract limits listed in the resolution from $650,000 to $750,000 for Solar Turbines, Inc.
(Solar Turbines). Board authorization is required to amend an existing resolution.
RECOMMENDATION: Rescind Resolution No. 2013 -032 and adopt new resolution to
increase the authorization of the General Manager for a sole- source contract with
Solar Turbines from $650,000 to $750,000.
FINANCIAL IMPACTS: A total of $99,898. This project is included in the Fiscal Year
(FY) 2014 -15 Capital Improvement Budget (CIB) and the total estimated project cost is
$1.38 Million, which includes the $750,000 Solar Turbines contract.
ALTERNATIVES /CONSIDERATIONS: None.
BACKGROUND: On September 5, 2013, the Board authorized a sole source contract
with Solar Turbines for construction within the Cogen Controls Upgrade Project. The
project was undertaken to replace the outdated /obsolete fuel and control systems of the
District's cogeneration turbine. The upgrade was a requirement to allow the District to
enter into a long -term maintenance agreement with Solar Turbines. The upgrade was
completed in May of 2014 and the District will be entering into a long -term maintenance
agreement this fiscal year.
The Board adopted Resolution No. 2013 -032 authorizing "the General Manager to enter
into a sole- source contract with Solar Turbines in an amount not to exceed $650,000 for
the installation of the fuel and controls upgrade... ". The position paper for the resolution
stated that "the estimated Solar Turbines contract cost for the upgrade is $650,000."
This was based on estimates and proposals at the time of development of the Contract
with Solar Turbines. Two contracts with Solar Turbines were issued by the District.
The first was a "lump sum" contract for supply of the control panel and fuel system
components. The second contract for the installation of the equipment was on a "time
and materials" basis. The total of the two contracts was estimated at $635,112.
Page 1 of 3
POSITION PAPER
Board Meeting Date: March 19, 2015
N
Subject RESCIND RESOLUTION NO. 2013 -032 AND ADOPT NEW RESOLUTION
TO INCREASE THE COST LIMIT FOR SOLE - SOURCE PAYMENTS TO
SOLAR TURBINES, INC, FOR THE COGEN CONTROLS UPGRADE,
DISTRICT PROJECT 7308
During construction, additional hardware (Prosoft Modicon Interface Modules) was
required to allow for testing of the new control panels for compatibility with the District's
Modicon system. The cost of the modules was approximately $27,000. In addition, costs
were incurred for sales tax and shipping that were not included in the material supply
purchase order. Finally, additional costs were incurred during installation due to the
unique nature of the District's equipment. Specifically, the control panels contain
specialized equipment that allows it to interface with the District's Modicon SCADA
system. This is one of only a handful of applications where Solar Turbines has
interfaced with Modicon as part of their package systems.
The total cost from Solar Turbines at the end of the work totaled $749,897.30. This
amounts to $99,897.30 over the estimated cost of $650,000 and is within the General
Manager's authority for construction change orders. However, the resolution cost limit of
$650,000 will need to be raised in order to process the final contract invoices.
The Cogen Controls Upgrade is included in the FY 2014 -15 CIB on page TP -17.
The total estimated project costs shown in the CIB is $1.30 Million. The final project cost
is estimated to be $1.38 Million, which includes the final contract costs by Solar
Turbines. To complete the payment, an additional allocation of $84,000 will be required
from the FY 2014- 15 Treatment Plant Program. This amount is within the General
Manger's authority for project overruns within 15 percent of the total project costs. Staff
has conducted a budget analysis of the FY 2014 -15 Treatment Plant program and
concluded that there are sufficient funds as shown in the following table:
FY 2014 -15 Allocation Budget
TP Program
Authorized Estimated Allocations for Projects, Includes
Contingency.
$
4,486,000
Supplemental Board Authorizations
$
519,450
Allocations Returned from Closeouts
$
0
Total Board Authorized FY 2014 -15 Allocations
$
5,005,450
FY 2014 -15 Allocations to Date
$
1,905,450
This Allocation for DP 7308
$
84,000
Remaining Unallocated Budget
$
3,016,000
Page 2 of 3
POSITION PAPER
Board Meeting Date: March 19, 2015
Subject RESCIND RESOLUTION NO. 2013 -032 AND ADOPT NEW RESOLUTION
TO INCREASE THE COST LIMIT FOR SOLE - SOURCE PAYMENTS TO
SOLAR TURBINES, INC, FOR THE COGEN CONTROLS UPGRADE,
DISTRICT PROJECT 7308
COMMITTEE RECOMMENDATION: The Engineering and Operations Committee
reviewed this position paper at its meeting on March 11, 2015 and recommended » ».
RECOMMENDED BOARD ACTION: Staff recommends rescinding Resolution
No. 2013 -032 and adopting a new resolution to increase the cost limit from $650,000 to
$750,000 for sole- source payments to Solar Turbines, Inc. under the Cogen Controls
Upgrade, District Project 7308.
Attached Supporting Documents:
1. Invoice summary
2. Proposed resolution for sole - source payments to Solar Turbines, Inc.
Page 3 of 3
Solar Turbines Invoice Summary & Delay Impacts of Control Console
Invoice No. *
Amount
Description
13510000982
$70,447.50
Equipment Downpayment
13510001029
$498,772.75
85% material, Installation, Sales Tax on material = $39,920.25
11016016411
$15,258.00
A. Biesemeyer 4/4/14 to 4/10/14
11016016471
$18,690.00
A. Biesemeyer 4/11/14 to 4/17/14
11016016472
$18,690.00
A. Biesemeyer 4/18/14 to 4/24/14
11016016578
$65,596.91
Jon Bendert. 4/18/14 to 5/6/14. 19 days on site (7 proposed)
11016017318
- $27,661.91
Credit memo for inv. 11016016578
11016016658
$10,934.50
Josh Ing. 4/25/14 to 4/28/14 2 days at CCCSD
11016016659
$17,136.00
A. Biesemeyer 4/25/14 to 5/1/14
11016016660
$15,626.00
A. Biesemeyer 5/2/14 to 5/7/14
11016016819
$4,218.00
Eric Senn 7/10/14 to 7/11/14 LEL Sensor Troubleshooting
11016017075
$3,173.00
A. Biesemeyer 7/28/14 to 7/29/14 - Punchlist Items
13510001250
$39,016.55
Prosoft modules & Control Panel /Tool Box Shipping Charges
Total Invoices
$749,897.30
Orig. Contract
$635,112.00
Paid to Date
$648,418.75
Resolution Limit
$650,000.00
Amount Over
Resolution Limit
$99,897.30
* bold = paid
RESOLUTION NO. 2013 -032
A RESOLUTION OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT
APPROVING A SOLE - SOURCE CONTRACT WITH SOLAR TURBINES, INC.
FOR FUEL AND CONTROL SYSTEM UPGRADES TO THE COGENERATION SYSTEM
WHEREAS, the Central Contra Costa Sanitary District's (District) Purchasing Procedures
Manual Section 5.3.15 provides that, in those cases involving a unique or novel product
application required to be used in the best public interest, a governmental entity may
specify such unique or novel product as an appropriate sole source; and
WHEREAS, the District has a Solar Centaur 40 gas turbine generator set as part of its
cogeneration system which is in need of a fuel and control system upgrade; and
WHEREAS, Solar Turbines, Inc.'s proprietary technology can be utilized and incorporated
to upgrade the District's gas turbine generator set, thereby extending the service life of the
turbine and increasing reliability and maintainability; and
WHEREAS, Section 3400(c) of the California Public Contract Code sets forth certain
conditions under which a particular material or product or service may be purchased
without the necessity of competitive bidding; and
WHEREAS, in order to allow for future long -term maintenance, it is prudent to have the
upgrade performed by Solar Turbines, Inc., the original equipment supplier.
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Central Contra
Costa Sanitary District (the Board) as follows:
1. THAT the Board hereby adopts the recitals set forth above as the basis of its
findings.
2. THAT the Board finds the public interest is best served by utilizing the unique
technology and proprietary knowledge that Solar Turbines, Inc., the original
equipment manufacturer, has developed to upgrade the gas turbine generator set,
which is part of the cogeneration system.
3. THAT, in accordance with Section 3400(c) of the California Public Contract Code,
the Board finds that the proprietary technology offered by Solar Turbines, Inc. shall
be utilized in the District's treatment plant to repair, modify and upgrade the
District's Solar Centaur 40 gas turbine generator set, and that a sole- source
contract with Solar Turbines, Inc. meets the criteria set forth in that section.
Central Contra Costa Sanitary District
Resolution 2013 -032
Sole- Source Contract — Solar Turbines, Inc.
Page 2of2
4. THAT that the contract is exempt from the California Environmental Quality Act
(CEQA) under District CEQA Guidelines Section 15301 since it involves repairs to
an existing public facility involving no expansion of use.
5. THAT the Board authorizes the General Manager to enter into a sole- source
contract with Solar Turbines, Inc. in an amount not to exceed $650,000 for the
installation of fuel and control system upgrades to the cogeneration system, Cogen
Controls Upgrade Project, District Project 7308.
PASSED AND ADOPTED this 5th day of September, 2013, by the Board of Directors of
the Central Contra Costa Sanitary District by the following vote:
AYES:
Members:
NOES:
Members:
ABSENT:
Members:
COUNTERSIGNED:
Causey, McGill, Pilecki
None
Nejedly, Williams
Michael R. McGill
President Pro Tern of the Board of Directors
Central Contra Costa Sanitary District
County of Contra Costa, State of California
Elaine R. Boehme, CIVIC
Secretary of the District
Central Contra Costa Sanitary District
County of Contra Costa, State of California
Approved as to form:
Kenton L. Alm, Esq.
Counsel for the District