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Home My WebLink About05.j. Award contract for Laboratory HVAC Upgrade and Repair Project, DP 7319 Central Contra Costa Sanitary District 14—W&A i' BOARD OF DIRECTORS , POSITION PAPER Board Meeting Date: April 7, 2016 Subject: AWARD A CONSTRUCTION CONTRACT AND AUTHORIZE THE GENERAL MANAGER TO EXECUTE CONTRACT DOCUMENTS SUBJECT TO SUBMITTAL REQUIREMENTS WITH INTEGRA CONSTRUCTION SERVICES, INC. FOR THE CONSTRUCTION OF THE LABORATORY HVAC UPGRADE AND REPAIR PROJECT, DISTRICT PROJECT 7319 Submitted By:I Initiating Dept./Div.: Craig Mizutani, Senior Engineer Engineering and Technical Services/Capital ProjeAs REVIEWED AND RECOMMENDED FOR BOARD ACTION. E. Lopez—Capital Projects Division Manager "r"P L JM. Petit—Director of Engineering and Technical Services Roger S.Bailey General Manager ISSUE: On March 22, 2016, one sealed bid was received and opened for the construction of the Laboratory HVAC Upgrade and Repair Project, District Project 7319. The Board of Directors must award the contract or reject bids within 50 days of the bid opening. Authorize the General Manager to execute the Contract Documents subject to SUBMITTAL requirements. BACKGROUND: The Capital Improvement Budget (CIB) Priority Ranking for this project is critical and the work aligns with the District's Strategic Plan, specifically Goal No. 6, which is "Maintain a Reliable Wastewater Infrastructure." The Wastewater Treatment Plant Laboratory Building's (Lab) primary purpose is to conduct testing to monitor compliance with the District's National Pollutant Discharge Elimination System Permit. In 2015, laboratory staff completed over 15,000 analytical tests and performed approximately 11,000 hours of laboratory work within the Lab. The testing and storage equipment utilized in the Lab is temperature sensitive and the building heating, ventilation, and air conditioning (HVAC) system is specialized for the work conducted in the testing areas. The major Lab HVAC system components consist of a 150-ton chiller, large air handler, coils, pumps, exhaust fans, and an energy management controls system which operates 24 hours per day. The original equipment was installed when the new laboratory was constructed in 2001. One (or possibly both) chiller compressor failed last summer (2015) and could not be repaired without significant costs and downtime. This chiller was approximately 14-years old, experiencing many failures, obsolete, and was being evaluated for replacement at the time of failure. The expected life for a chiller averages close to 20 years, and a significant repair was made on the chiller in the winter of 2011. Repairing the chiller again was not a viable alternative since the costs of the repairs could not be fully determined and any work performed by the repair company would not Page 1 of 6 POSITION PAPER Board Meeting Date: April 7, 2016 subject AWARD A CONSTRUCTION CONTRACT AND AUTHORIZE THE GENERAL MANAGER TO EXECUTE CONTRACT DOCUMENTS SUBJECT TO SUBMITTAL REQUIREMENTS WITH INTEGRA CONSTRUCTION SERVICES, INC. FOR THE CONSTRUCTION OF THE LABORATORY HVAC UPGRADE AND REPAIR PROJECT, DISTRICT PROJECT 7319 be guaranteed. The Board was notified at the August 6, 2015, Board meeting that a rental portable chiller was needed, and has been in service since that time. The temporary rental unit is an industrial-size chiller mounted outside the Lab on a flatbed trailer. Since that time, staff has conducted a detailed analysis of the system. The analysis included the cause of failure, the best replacement methods, and efficiency and reliability improvements to the overall HVAC system. Staff hired Taylor Systems Engineering (TSE) to recommend the most cost-effective chiller replacement alternative and other system improvements. Several alternatives were compared, including: replacement in kind, replacement with a ground-level, water-cooled chiller, and addition of thermal (i.e., ice) storage. TSE recommended replacement in kind, and designed the new chiller with additional upgrades to help improve the overall reliability of the system. This project will install a new 150-ton, air-cooled industrial grade chiller, modify the air handling unit, and perform control upgrades as recommended by TSE for increased efficiency. The project scope involves mechanical, structural, electrical, and controls work. The project work area is shown in Attachment 1. Staff prepared the bid documents with TSE providing the technical specifications and project drawings. The Engineer's estimate for construction was $575,000. This project was advertised on March 4 and 8, 2016. One sealed bid of $645,838 was received and publicly opened on March 22, 2016. The Engineering Department conducted a technical and commercial review of the bid and determined that Integra Construction Services, Inc. is the lowest responsive and responsible bidder with a base bid amount of $645,838 and an additive bid amount of $50,827, to provide the rental chiller system during construction. Staff recommends awarding the additive bid item. As stated above, the District is currently renting a chiller for approximately $9,700 a month. Future rental costs and equipment coordination and responsibilities will be transferred to the Contractor at the time of award for the duration of the construction. A summary of bids received is shown in Attachment 2. The District will administer the construction contract and provide construction management services. TSE will be retained to provide submittal review and construction support services. General construction inspection will be performed by a District as-needed inspection company (i.e., Harvest Technical Services) and specialty welding inspection will be performed by Kleinfelder. The new industrial chiller is significantly larger and heavier than the existing commercial unit and, therefore, a significant portion of the construction costs can be attributed to the welded steel structure support base. Page 2 of 6 POSITION PAPER Board Meeting Date: April 7, 2016 subject. AWARD A CONSTRUCTION CONTRACT AND AUTHORIZE THE GENERAL MANAGER TO EXECUTE CONTRACT DOCUMENTS SUBJECT TO SUBMITTAL REQUIREMENTS WITH INTEGRA CONSTRUCTION SERVICES, INC. FOR THE CONSTRUCTION OF THE LABORATORY HVAC UPGRADE AND REPAIR PROJECT, DISTRICT PROJECT 7319 CEQA: Staff has concluded that this project is exempt from the California Environmental Quality Act (CEQA) under District CEQA Guidelines Section 15301, since it involves minor alterations to existing public facilities involving no expansion of use. Approval of this project will establish the Board of Directors' independent finding that this project is exempt from CEQA. ALTERNATIVES/CONSIDERATIONS: Reject the bid, which is not recommended. The project is necessary for the reliable working conditions of the laboratory, and the rental of the temporary chiller would continue if we rebid the project. FINANCIAL IMPACTS: The total project cost is anticipated to be $1,171,500, which includes prior project expenditures, rental chiller costs, design, bid price, construction management, and contingency. This project is included in the Fiscal Year 2015-16 Capital Improvement Budget on page TP-29, with a total estimated project budget of $598,000. Staff has conducted a budget analysis of the Treatment Plant Program budget and concluded that $573,500 is needed from the Treatment Plant contingency account to fund this project. There will be $125,000 remaining in the Contingency account for the Treatment Plant Program this fiscal year. COMMITTEE RECOMMENDATION: The Engineering & Operations Committee will review this project when it meets on April 4, 2016. RECOMMENDED BOARD ACTION: Staff recommends the following: 1. Find that the project is exempt from CEQA, 2. Award a construction contract in the amount of $696,665 for the construction of the Laboratory HVAC Upgrade and Repair Project, District Project 7319, to Integra Construction Services, Inc., the lowest responsible and responsive bidder, and 3. Authorize the General Manager to execute the Contract Documents subject to SUBMITTAL requirements. Attached Supporting Documents: 1. Project Location Map 2. Summary of Bids 3. Post-Bid/Preconstruction Estimate Page 3of6 ATTACHMENT 1 LABORATORY HVAC UPGRADE AND REPAIR PROJECT DISTRICT PROJECT 7319 PROJECT LOCATION MAP N J a® ' FEET x PROJECT SITE j yy &Anonex' DV Central Contra Costa Attachment Sanitary District Laboratory HVAC Upgrade and Repair ' District Project 7319 1 Martinez, California Page 4 of 6 ATTACHMENT 2 LABORATORY HVAC UPGRADE AND REPAIR PROJECT DISTRICT PROJECT 7319 SUMMARY OF BIDS PROJECT NO.: 7319 NO. OF ADDENDA: 2 DATE/TIME: MARCH 22, 2016/2 PM PROJECT NAME: LABORATORY HVAC UPGRADE AND REPAIR PROJECT MANAGER: CRAIG MIZUTANI PROJECT LOCATION: 5019 IMHOFF PLACE, MARTINEZ, CALIFORNIA ENGINEER'S ESTIMATE: $575,000 (ADDITIIVE BID ITEM NOT INCLUDED) NO. BIDDER BASE BID PRICE 1 Integra Construction Services, Inc. $645,838 Pleasanton, CA 94566 Page 5 of 6 ATTACHMENT 3 LABORATORY HVAC UPGRADE AND REPAIR PROJECT DISTRICT PROJECT 7319 POST-BID/ PRECONSTRUCTION ESTIMATE No. Item Description Amounts % Construction Cost 1. CONSTRUCTION a. Construction Contract $645,838 b. Additive Bid Item: chiller rental $50,827 c. Contingency at 5% $34,835 SUBTOTAL - CONSTRUCTION $731,500 100% 2. CONSTRUCTION MANAGEMENT a. District Forces - CM, Engineering $50,000 - POD/Lab Coordination $5,000 b. Consultants - Inspection $50,000 -Taylor Systems Engineering (TSE) $30,000 - Specialty Inspection $25,000 SUBTOTAL - CONSTRUCTION MANAGEMENT $160,000 21.8% 3. PREBID EXPENDITURES a. District Engineering: rental costs, design and POD Coordination $122,000 b. Design Consultant (TSE) $36,000 SUBTOTAL— PREBID EXPENDITURES $158,000 21.6% 4. PAST PROJECT EXPENDITURES FOR OTHER $122,000 WORK 5. TOTAL ESTIMATED PROJECT COST $1,171,500 Page 6 of 6