HomeMy WebLinkAbout03.b. Review draft Position Paper to amend an agreement with J.T. Thorpe & Son, Inc in an amount not to exceed $11,500, bringing cost ceiling to $103,800 for repairs to the multiple hearth furnace refractory Page 1 of 2
Item 3.b.
CENTRAL SAN BOARD OF DIRECTORS
' POSITION PAPER
DRAFT
MEETING DATE: FEBRUARY2, 2018
SUBJECT: REVIEW DRAFT POSITION PAPER TO AUTHORIZE THE GENERAL
MANAGER TO AMEND A SERVICES AGREEMENT WITH J.T. THORPE &
SON, INC. I N AN AMOUNT NOT TO EXCEED $11,500, BRINGING THE COST
CEILING TO $103,800, FOR REPAIRS TO THE MULTIPLE HEARTH
FURNACE REFRACTORY
SUBMITTED BY: INITIATING DEPARTMENT:
CLI NTSHIMA, SENIOR ENGINEER OPERATIONS-RELIABILITYENG INEERING
REVIEWED BY: ANN SASAKI, DEPUTY GENERAL MANAGER
NEIL MEYER, PLANT MAINTENANCE DIVISION MANAGER
ISSUE
In accordance with purchasing procedures, Board authorization is required for the General Manager to
amend a services agreement when the total amount exceeds the staff authority of $100,000.
BACKGROUND
Central San operates two multiple-hearth furnaces to incinerate sludge before it is hauled off for disposal. Each
furnace is operated in alternating years, which allows for preventive maintenance activities before beginning its
year-long operation. There are approximately 70 preventative maintenance procedures and multiple contractors
hired to complete all the critical activities that must occur prior to starting up the furnace. One of these activities
is the refractory repair. Every year staff hires the original equipment manufacturer, BSP Thermal, to perform a
thorough inspection. BSP Thermal provides a report, which includes recommended repairs. Refractory repair
work is competitively bid out to implement the recommendations, as well as address outstanding issues. This
year, 11 of 40 burner blocks were identified for replacement, which is more than the usual. J.T. Thorpe & Son,
Inc. submitted a low bid of$92,300, and was awarded the contract.
Upon removing the burner blocks, J.T. Thorpe & Son, Inc. discovered deep voids between the steel shell
and the inner refractory wall. Staff contacted BSP Thermal who confirmed that patching these areas was
necessary. Staff proceeded with the work at that time because the additional costs would have increased
if J.T. Thorpe & Son, I nc. stopped and remobilized at a later date to complete the work. The cost for
these additional repairs was $11,500, bringing the total contract amount slightly above the $100,000
General Manager authority limit. For this reason, staff is seeking the Board's approval to amend the
February 2, 2018 EOPS Regular Committee Meeting Agenda Packet- Page 9 of 12
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contract.
ALTERNATIVES/CONSIDERATIONS
The Board could decide to not authorize an amended agreement with J.T. Thorpe & Son, I nc. for the
additional refractory repair work. However, that is not being recommended as J.T. Thorpe & Son, Inc.
completed these repairs for the reasons stated above.
FINANCIAL IMPACTS
Funds to cover this contract amendment are available in the Plant Maintenance Fiscal Year (FY) 2017-18
Budget.
COMMITTEE RECOMMENDATION
The Engineering and Operations Committee reviewed this position paper on February 2, 2018, and ...
RECOMMENDED BOARD ACTION
Authorize the General Manager to amend a services agreement with J.T. Thorpe & Son, I nc. in an amount
not to exceed $11,500, bringing the cost ceiling to $103,800, for repairs to the multiple hearth furnace
refractory.
Strategic Plan Tie-In
GOAL TWO: Strive to Meet Regulatory Requirements
Strategy 2- Strive to Minimize the Number of Sanitary Sewer Overflows
February 2, 2018 EOPS Regular Committee Meeting Agenda Packet- Page 10 of 12