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Home My WebLink About18. Declare and emergency and consider adopting Resolution No. 2017-027 making findings and authorizing the General Manager under Public Contract Code 22050(b) to execute a construction change order with W.M. Lyles Co. to perform emergency work Page 1 of 10 Item 18. CENTRAL SAN BOARD OF DIRECTORS POSITION PAPER MEETING DATE: AUGUST 3, 2017 SUBJECT: DECLARE AN EMERGENCYAND CONSIDER ADOPTING RESOLUTION N0. 2017-027 MAKING FINDINGS AND AUTHORIZING THE GENERAL MANAGER UNDER PUBLIC CONTRACT CODE 22050(6)TO EXECUTE A CONSTRUCTION CHANGE ORDER WITH W.M. LYLES CO. TO PERFORM EMERGENCY WORK ON THE TREATMENT PLANT PRIMARY SEDIMENTATION TANKS. REVIEWED BY ENGINEERING & OPERATIONS COMMITTEE. SUBMITTED BY: INITIATING DEPARTMENT: EDGAR J. LOPEZ, CAPITAL PROJECTS ENGINEERING AND TECHNICAL SERVICES- DIVISION MANAGER CAPITAL PROJECTS REVIEWED BY: JEAN-MARC PETIT, DIRECTOR OF ENGINEERING AND TECHNICAL SERVICES ANN SASAKI, DEPUTY GENERAL MANAGER Roger S. Bailey Kenton L.Alm General Manager District Counsel ISSUE Declaring an emergency under Public Contract Code Section 22050(b) is required to contract without a formal public bid process. Board of Directors (Board)approval is also required to execute a construction contract change order in an amount exceeding $100,000. BACKGROUND August 3, 2017 Regular Board Meeting Agenda Packet- Page 123 of 132 Page 2 of 10 1 n August of 2016, the sludge collector system in Primary Sedimentation Tank(PST) No. 4 experienced a failure. This system includes the drive, chains, and collector flights, embedded floor and return rails, shafts, sprockets, and other mechanical components. Staff replaced the flights and chains and then conducted a condition assessment. It was noted that the floor rails should be replaced in a near-term project. The rails are original construction, and have been in place since the 1960's and 1970's. Operations has been maintaining these rails and performing minor repairs for many years. The Comprehensive Wastewater Master Plan (CWMP)for the Treatment Plant had identified needs for replacement or rehabilitation of the existing collector chains and flights, embedded rails, as well as other structural, electrical, and equipment replacement and upgrades. That project, the Mechanical & Concrete Renovations, District Project Number 7351, started this Fiscal Year(FY) 2017-18 with design and construction to start early next year to address these issues. The Ten-year Capital Improvement Plan has $6.9 million of improvements with construction continuing through FY 2020-21 for the project. In January of this year, the system in PST No. 1 experienced a major failure, which included replacing components of flights and chain repairs. Fortunately, Operations was able to repair the system prior to the heavy rain events in early February. However, the system failed again in May and staff determined that the root cause of the failure was due to the poor condition and failed sections of the embedded rails. Operations responded by performing temporary repairs to sections of the rails, replacing components of the damaged flights and chains. PST No. 1 was returned to service in June. This allowed staff time to inspect the other three tanks, with the intent to leave time available for necessary repairs prior to the upcoming wet weather season (starting October 31). The repairs on PST No. 1 required three to four weeks, including weekends, overtime, and significant plant resources. Given that the systems have experienced three failures in the past year, Operations and Engineering concludes that replacement of the most corroded and deteriorated parts is required to insure that the systems are fully operational and reliable the next rainy season. To date, three of the four tanks have been inspected and staff concludes replacement of the embedded floor rails on PST Nos. 1 and 2, and replacing the flights and chains on PST Nos. 2 and 3 is required this summer rather than in the next year or two as contemplated by the CW MP. PST No. 4 is scheduled for inspection during the week of July 31 and it is anticipated that some level of emergency work will also be required on that tank. Primary sedimentation tanks play a major role in the treatment process and are critical to meet our NPDES permit, especially during the higher flows experienced in the wet weather season. Failures to the collector systems discussed above certainly will impact the process and present the risk violating this permit. Based on experience, staff strongly recommends to perform this work immediately under an emergency declaration. This requires use of an outside contractor due to the amount of construction work required to be completed prior to the wet weather season. The construction factors include long lead times (6-8 weeks)for the proprietary flights and chains, time needed for shut downs and acceptance testing, and staff's inability to conduct a formal design and bid process in time to complete the work before the wet weather season. Staff has requested formal proposals from three qualified General Contractors (W.M. Lyles Co., D.W. Nicholson Corporation, and Manito Construction)that are currently working on Central San projects. Using one of these contractors that is already under contract and mobilized will allow work to begin almost immediately. We received two competitive proposals (W.M. Lyles Co. and D. W. Nicholson Corporation). Staff is recommending W.M. Lyles Co., which is working on the Headworks Screening Upgrade project and propose to complete the work under change order. Staff spent time working with these contractors to obtain competitive and complete proposals. Several meetings were arranged with field tours and inspections to allow for more accurate pricing and site-specific constraints. I n addition, the costs received for the parts are in line with previous orders placed by Central San in the past. August 3, 2017 Regular Board Meeting Agenda Packet- Page 124 of 132 Page 3 of 10 Staff has concluded that this project is exempt from the California Environmental Quality Act (CEQA) under Central San CEQA Guidelines Section 15302, since it involves replacement of existing facilities at the same location and with the same purpose.Approval of the Resolution will establish the Board's independent finding that this project is exempt from CEQA. ALT ERNATIVES/CONSIDERATIONS 1) Finish the design and bid the project, which is not recommended. 2)Approach other contractors to obtain additional proposals, which is not recommended due to time constraints, potential delays in delivery of parts, and contractors are in high demand and busy. 3) Perform the work in-house; however, staff does not have sufficient resources to complete the work by the wet weather season and maintain other staff functions. FINANCIAL IM PACTS The cost for the project this year is estimated at$800,000, which includes staff time, testing, contractor costs, and contingency. Based on the unit pricing provided by W.M. Lyles Co., the change order is estimated to cost between $600,000 to $750,000. Staff will have the change order costs after PST No. 4 has been evaluated. The Mechanical & Concrete Renovations, District Project Number 7351, is included in the FY 2017-18 Capital I mprovement Budget(CI B) on page 163 with a current FY budget of$560,000. Upon Board authorization of this position paper, the General Manager will transfer$240,000 from the C I B Contingency account to the Mechanical & Concrete Renovations budget as authorized under the Capital Improvements Program limits in Resolution 2016-046 (General Manager Authority). To date, there is $1.5 million in the FY 2017-18 C I B Contingency account. This action will leave a remaining contingency balance of$1.26 million for other projects. COMMITTEE RECOMMENDATION The Engineering and Operations Committee reviewed this subject at the special meeting on July 31, 2017.An update will be provided at the Board Meeting. RECOMMENDED BOARD ACTION Declare an Emergency and allow the General Manager to execute a change order with W.M. Lyles Co. based on the time necessary to complete the work prior to the wet weather season. Strategic Plan re-In GOAL TWO: Strive to Meet Regulatory Requirements Strategy 1 - Strive to Achieve 100% Permit Compliance in Air, Water, Land and Other Regulations GOAL FIVE: Maintain a Reliable Infrastructure Strategy 2- Facilitate Long-term Capital Renewal and Replacement ATTACHMENTS: 1. Proposed Resolution 2. PowerPoint Presentation August 3, 2017 Regular Board Meeting Agenda Packet- Page 125 of 132 Page 4 of 10 The proposed Resolution will be distributed prior to the Board Meeting on August 3, 2017. August 3, 2017 Regular Board Meeting Agenda Packet- Page 126 of 132 PROPOSED RESOLUTION TO AUTHORIZE A CHANGE ORDER FOR EMERGENCY WORK AT THE TREATMENT PLANT PRIMARY SEDIMENTATION TANKS Board Meeting August 3, 2017 Presented by Edgar J. Lopez, PE Capital Projects Division Manager August 3. 2017 RPnt1Ia.RnaM Macfinn Ancnria Parkcf-Pana 177 of 1.19 �V 4 ■� 1 t R y� S r 1 ftrl• I _ f ` 4t I � _ • f I .' 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