HomeMy WebLinkAbout04. Review draft Position Paper to award a construction contract in the amount of $555,000 for construction of the Treatment Plant Energy-Cogeneration Unit Optimization, District Project 7320 to D.W. Nicholson Corporation; 4■
110 Central San
=- BOARD OF DIRECTORS
POSITION
PAPER
Board Meeting Date: May 18, 2017
Subject: AWARD A CONSTRUCTION CONTRACT AND AUTHORIZE THE
GENERAL MANAGER TO EXECUTE CONTRACT DOCUMENTS
SUBJECT TO SUBMITTAL REQUIREMENTS WITH D.W. NICHOLSON
CORPORATION FOR THE CONSTRUCTION OF THE TREATMENT
PLANT ENERGY — COGENERATION UNIT OPTIMIZATION,
DISTRICT PROJECT 7320
Submitted By: Initiating Dept./Div.:
CraigMizutaniSenior Engineer Engineering and Technical
. g Services/Ca ital Projects
ojects
REVIEWED AND RECOMMENDED FOR BOARD ACTION:
E. Lopez— Division Manager
JM. Petit— Director of Engineering and Technical Services
Roger S. Bailey
General Manager
ISSUE: On April 19, 2017, three (3) bids were received and opened for the construction
of the Treatment Plant Energy — Cogeneration Unit Optimization, District Project 7320
(Project). The Board of Directors (Board) 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 Project aligns with Central San's Energy Policy and Strategic
Plan as follows:
• This Project has a simple payback period of two (2) years (minimum 15 years per
Energy Policy);
• Goal 2, Strategy 1 — Strive to Achieve 100-percent Permit Compliance by
installing a carbon monoxide (CO) catalyst to reliably operate the system below
regulatory CO limits; and
• Goal 3, Strategy 2 Manage Costs by optimizing the power production of the
treatment plant to reduce costs.
The purpose of this project is to increase energy efficiency, reduce utility costs, and
decrease CO emissions at the treatment plant. There has been a significant increase in
PG&E costs due to CO emission limits imposed by the BAAQMD on the cogeneration
system. Based on utility bills last year, the yearly increase is approximately $300,000.
This Project will reduce CO emissions by installing an oxidation catalyst, and increase
energy efficiency for operation during hot weather operations by installing an
evaporative cooling system. These improvements will help ensure regulatory
compliance and reduce the added PG&E costs.
Page 1 of 6
POSITION PAPER
Board Meeting Date: May 18, 2017
subject: AWARD A CONSTRUCTION CONTRACT AND AUTHORIZE THE
GENERAL MANAGER TO EXECUTE CONTRACT DOCUMENTS
SUBJECT TO SUBMITTAL REQUIREMENTS WITH D.W. NICHOLSON
CORPORATION FOR THE CONSTRUCTION OF THE TREATMENT
PLANT ENERGY -- COGENERATION UNIT OPTIMIZATION,
DISTRICT PROJECT 7320
Central San staff and Carollo Engineers (Carollo) prepared the plans and specifications
for the Project. The Engineer's estimate for construction was $600,000 and was revised
to $650,000 to include replacement of the obsolete and old reverse osmosis system that
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supplies purified water to the cogeneration system and needed for the evaporative
cooler. This Project was advertised on March 17 and 27, 2017. Three sealed bids
ranging from $555,000 to $739,000 were received and publicly opened on April 19,
2017.
The Engineering Department conducted a technical and commercial review of the bids
and determined that D.W. Nicholson Corporation is the lowest responsive and
responsible bidder with a total bid amount of $555,000. A summary of bids received is
shown in Attachment 2.
Staff recommends retaining Carollo to provide support services during the construction
phase, which includes reviewing shop drawings and submittals, responding to design
questions, evaluating change order requests, performing site visits to verify compliance
with the design, electrical inspection, coordination with Solar Turbines, and other related
activities. An as-needed construction support services agreement amendment with a
cost ceiling of $90,000 has been negotiated with Carollo. On November 3, 2016, the
Board authorized a professional consulting agreement for $120,000 with Carollo for the
design of the project. The new cost ceiling for the Carollo ,a reementincluding the
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amendment, will be $210,000.
ALTERNATIVES/CONSID►ERATIONS: Reject all bids, which is not recommended. Not
performing the Project will result in additional PG&E costs of $300,000 or more per year
to the Operations and Maintenance Budget.
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.
FINANCIAL IMPACTS: The total estimated project costs is $1,094,000(updated for
FY17-18), which includes planning, predesign, detailed design, bid, construction
contract, contingency, and construction management costs as shown in Attachment 3.
The Project is being funded under the Plant Energy p a Optimization Project 7320 included
in the Fiscal Year 2016-17 Capital Improvement Budget on page 133 with a total
estimated project budget of $1,400,000. The project description, budget, and schedule
Page 2 of 6
POSITION PAPER
Board Meeting Date: May 18, 2017
Subject: AWARD A CONSTRUCTION CONTRACT AND AUTHORIZE THE
GENERAL MANAGER TO EXECUTE CONTRACT DOCUMENTS
SUBJECT TO SUBMITTAL REQUIREMENTS WITH D.W. NICHOLSON
CORPORATION FOR THE CONSTRUCTION OF THE TREATMENT
PLANT ENERGY — COGENERATION UNIT OPTIMIZATION,
DISTRICT PROJECT 7320
revision was presented to the Engineering and Operations committee meeting on
October 21, 2016.
COMMITTEE RECOMMENDATION: The Engineering and Operations Committee
reviewed this subject at the meeting on May 9, 2017, and recommended approval of the
Project.
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 $555,000 for the construction of
the Treatment Plant Energy— Cogeneration Unit Optimization, District Project
7320 to D.W. Nicholson Corporation, the lowest responsible and responsive
bidder;
3. Authorize the General Manager to execute the Contract Documents subject to
submittal requirements and include up to 10-percent contingency; and
4. Authorize the General Manager to execute an amendment with Carollo
Engineers, Agreement 044520, to increase the cost ceiling from $120,000 to
$210,000 to provide as-needed construction support services for the Project.
Attached supporting Documents:
1. Project Location Map
2. summary of Bids
3. Post-Bid/Preconstruction Estimate
Page 3 of 6
ATTACHMENT 1
TREATMENT PLANT ENERGY — COGENERATION UNIT OPTIMIZATION
DISTRICT PROJECT 7320
LOCATION MAP
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Central contra Costa TREATMENT PLANT ENERGY- Attachment
Sanitary District COGENERATION UNIT OPTIMIZATION
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District Project 7320
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Martinez, California
Page 4of6
ATTACHMENT 2
TREATMENT PLANT ENERGY— COGENERATION UNIT OPTIMIZATION
DISTRICT PROJECT 7320
SUMMARY OF BIDS
PROJECT NO.: 7320 NO. OF ADDENDA: 2 DATE/TIME: APRIL 19, 2017, 2:00 PM
PROJECT NAME: TREATMENT PLANT ENERGY-COGENERATION UNIT OPTIMIZATION
PROJECT MANAGER: CRAIG MIZUTANI
PROJECT LOCATION: 5019 IMHOFF PLACE, MARTINEZ, CALIFORNIA
ENGINEER'S ESTIMATE: $650,000
NO. BIDDER BID PRICE
D.W. Nicholson Corporation
1 $5559000
Hayward, California
ACCO Engineered Systems
2 $651,542
San Leandro, California
Blocka Construction, Inc.
3 $739,000
Fremont, California
BIDS OPENED BY: Is/ Elaine R. BoehmejCMC DATE: April 19 2017
Page 5 of 6
ATTACHMENT 3
TREATMENT PLANT ENERGY— COGENERATION UNIT OPTIMIZATION
DISTRICT PROJECT 7320
POST-BID 1 PRECONSTRUCTION ESTIMATE
No. Item Description Amounts % of Total
Estimated
Project Cost
1. CONSTRUCTION
a. Construction Contract $555,000
b. Contingency at 10% $55,500
SUBTOTAL- CONSTRUCTION $610,500 55.80%
2. CONSTRUCTION MANAGEMENT
a. District Forces
- Construction Management $20,000
- Operations Support $15,000
- Control System Integration $20,000
b. Consultants
- Carollo Support Services $90,000
- Inspection $30,000
SUBTOTAL - CONSTRUCTION $175,000 16.0%
MANAGEMENT
3. PREBID EXPENDITURES
a. Staff Engineering and Operations $92,500
b. Consultant Fees $1209000
TOTAL PLANNING AND DESIGN
EXPENDITURES $212,500
c. Prior Expenditures $96,000
SUBTOTAL - PREBID EXPENDITURES $308,500 28.25%
4. TOTAL ESTIMATED PROJECT COST $1,0949000
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