HomeMy WebLinkAbout03.a. Review draft Position Paper to approve a contingency project in the amount of $800,000 for Water System Upgrades at the treatment plant and authorize the General Manager to transfer funds within the Capital I mprovement BudgetPage 1 of 3
Item 3.a.
' CENTRAL SAN BOARD OF DIRECTORS
POSITION PAPER
� DRAFT
MEETING DATE: DECEMBER 12, 2017
SUBJECT: REVIEW DRAFT POSITION PAPER TO APPROVE A CONTINGENCY
PROJECT IN THE AMOUNT OF $800,000 FOR WATER SYSTEM
UPGRADES AT THE TREATMENT PLANT AND AUTHORIZE THE GENERAL
MANAGER TO TRANSFER FUNDS WITHIN THE CAPITAL IMPROVEMENT
BUDGET
SUBMITTED BY:
EDGAR J. LOPEZ, CAPITAL PROJECTS
INITIATING DEPARTMENT:
ENGINEERING AND TECHNICAL SERVICES -
DIVISION MANAGER CAPITAL PROJECTS
REVIEWED BY: JEAN -MARC PETIT, DIRECTOR OF ENGINEERING AND TECHNICAL
SERVICES
ROGER S. BAILEY GENERAL MANAGER
ISSUE
Board authorization is required to include a contingency project in the Capital Improvement Budget (CIB)
for an amount that exceeds $100,000. Board authorization is also required to transfer funds above
$500,000.
BACKGROUND
The Treatment Plant (plant) consists of over 4,400 assets ranging in age with most of the equipment
installed around 40 years ago. Overtime, equipment, piping systems, and other associated assets require
rehabilitation or replacement to continue a high-level and reliable service. One system that is critical for
daily staff operations and for the plant is the potable water system, known as the 1 -Water System. The
water for this system is supplied by the Contra Costa Water District through a Central San air gap tank
then distributed to several uses throughout the plant property via pumps and other associated equipment
owned and operated by Central San. The 1 -Water System has a vast piping network that serves the
Headquarters Office Building, Plant Operations Building, Solids Conditioning Building, Laboratory, over
50 eye wash stations, showers and bathrooms, and many other locations and uses within the plant.
Staff has hired Black & Veatch (B&V) to evaluate, provide recommendations, and update the maintenance
backflow prevention program for the 1 -Water System. I n addition, B&V will also provide design
documents for items that require upgrading or near-term replacement. Improvements done under this
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project will also include recommendations provided under the Central San Security and Vulnerability study
for this system.
CEQA
Staff has concluded that this project is exempt from the California Environmental Quality Act (CEQA)
under Central San's 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's independent
finding that this project is exempt from CEQA.
ALT ERNAT IVES/CONSIDERAT IONS
The Ten -Year Capital Improvement Plan recommends a program starting in FY 2019-20 that includes
rehabilitation of the 1 -Water System. Staff is proposing to expedite replacement of the most important
items such as the air gap tank and backflow prevention upgrades, the remainder of the system will still be
included in the proposed program.
Replacement of the air -gap tank will require approval and permitting from the Contra Costa Water District.
Due to the urgency of this project, staff may include the water system upgrades as part of the Piping
Renovations - Phase 9, District Project 7330, which is scheduled to bid soon, or the work may be
performed under a change order with an existing plant contractor. If a change order is feasible, staff may
seek further approval from the Board.
B&V is currently under contract for planning and design services in the plant. A contract revision for
$200,000 will be added for this project and authorized under the General Manager authority. I n Section 10
of the adopted General Manager Authority Resolution No. 2016-046, it states that the General Manager
can amend a Professional Engineering Services Agreement up to 15% of the original contract amount.
The Board authorized an original contract with B&V for $2,000,000.
FINANCIAL IMPACTS
The total estimated project cost for the water system upgrades is $800,000, which includes consulting
costs of $200,000, staff time of $100,000, and construction costs of $500,000 including contingency.
There are not enough contingency funds currently available in the Cl B for this project. Staff recommends
transferring the funds from other capital improvement projects in order to complete the upgrades this fiscal
year (FY). The transfer will include $600,000 from the Furnace Burner Upgrades, District Project 7359,
and other projects in the treatment plant program. The scope of Furnace Burner Upgrades is under
predesign and being coordinated with the Solids Handling Facility Improvements - Phase 1 project and
construction has been rescheduled to late FY 2018-19.
COMMITTEE RECOMMENDATION
The Engineering and Operations Committee reviewed this matter at the December 12, 2017 meeting and
recommended approval of the project.
RECOMMENDED BOARD ACTION
Staff recommends the following:
1. Find that the project is exempt from CEQA;
2. Approve a contingency project for $800,000 for the water system upgrades at the treatment plant; and
3. Authorize the General Manager to transfer the funds within the Capital Improvements Budget.
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GOAL FIVE: Maintain a Reliable Infrastructure
Strategy 3 - Protect District Personnel and Assets from Threats and Emergencies
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