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Home My WebLink About03. Approve Water System Upgrades project at the treatment plant in amount of $800,000Page 1 of 5 Item 3. ' CENTRAL SAN BOARD OF DIRECTORS POSITION PAPER MEETING DATE: DECEMBER 21, 2017 SUBJECT: APPROVE A CONTINGENCY PROJECT IN THE AMOUNT OF $800,000 FOR WATER SYSTEM UPGRADES AT THE TREATMENT PLANT, FIND THAT THE PROJECT IS EXEMPT FROM CALIFORNIA ENVIRONMENTAL QUALITYACT (CEQA), AND AUTHORIZE THE GENERAL MANAGER TO TRANSFER FUNDS WITHIN THE CAPITAL IMPROVEMENT BUDGET. APPROVAL RECOMMENDED BYTHE 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 Roger S. Bailey General Manager ISSUE Board of Directors (Board) authorization is required to include a contingency project in the Capital Improvement Budget (CI B) 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 December 21, 2017 Regular Board Meeting Agenda Packet - Page 32 of 107 Page 2 of 5 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. In addition, B&V will also provide design documents for items that require upgrading or near-term replacement like the air gap tank, backflow device replacements, and testing staions. Improvements done under this 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 Fiscal Year (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 -percent 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 project contingency. There are not enough contingency funds currently available in the CI B for this project. Staff recommends transferring the funds from other capital improvement projects in order to complete the upgrades this 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 the Furnace Burner Upgrades is under predesign and being coordinated with the Solids Handling Facility I mprovements-Phase 1 project and construction has been rescheduled to late FY 2018-19. Amount ❑ Funds budgeted this FY 2017-18 for this project $ 0 ❑ Funds taken from current FY 2017-18 C1 B contingency $ 0 December 21, 2017 Regular Board Meeting Agenda Packet - Page 33 of 107 Page 3 of 5 Funds transferred from current FY 2017-18 projects: ❑ a. Updated forecast; estimated savings from project(s) available $ 0 0 b. Acceleration of funding for the project that is budgeted in future $ 600,000 year already identified in the C I P c. Potential future year budget impact on the C I P 0 (May be mitigated through (1) savings from close-outs of current $ 200,000 year projects; (2) reprioritizing future year projects; (3) cost savings on future year projects) Total Current Year Cost $ 800,000 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 $800,000 within the Capital Improvement Budget. Strategic Plan Tie -In GOAL FIVE: Maintain a Reliable Infrastructure Strategy 3 - Protect District Personnel and Assets from Threats and Emergencies ATTACHMENTS: 1. Presentation December 21, 2017 Regular Board Meeting Agenda Packet - Page 34 of 107 APPROVE A CONTINGENCY PROJECT WATER SYSTEM UPGRADE Edgar J. Lopez, P.E. Board Meeting December 21, 2017 PROJECT BACKGROUND The 1 -Water System has a vast piping network that serves the Headquarters Office Building, Plant Operations Building, Solids Conditioning Building, Laboratory, over 50 eyewash stations, showers and bathrooms, and many other locations and uses within the plant i - ve - Page 4 of 5 1 December 21, 2017 Regular Board Meeting Agenda Packet - Page 35 of 107 Page 5 of 5 PROJECT SCOPE Staff has hired Black & Veatch (B&V) to perform the following tasks: :y • Consolidate existing record drawings and update 1 • Evaluate, provide recommendations, and update the maintenance backflow prevention program • Provide design documents for items that require upgrading or near-term replacement such as: • Air gap tank • Backflow device replacements • Testing stations • Improvements done under this project will also include recommendations provided under the I - it Central San Security and Vulnerability study for this system 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 $800,000 within the Capital Improvement Budget '00�11101L 2 December 21, 2017 Regular Board Meeting Agenda Packet - Page 36 of 107