HomeMy WebLinkAbout06. Amend agreement with JT Thorpe & Son, Inc. for repairs to the Multiple Hearth Furnace Refractory Page 1 of 2
Item 6.
CENTRAL SAN BOARD OF DIRECTORS
' POSITION PAPER
MEETING DATE: FEBRUARY 15, 2018
SUBJECT: AUTHORIZE THE GENERAL MANAGER TO AMEND A SERVICES
AGREEMENT WITH J.T. THORPE & SON, I NC. 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
9
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Roger S. Bailey
General 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.
February 15, 2018 Regular Board Meeting Agenda Packet- Page 22 of 79
Page 2 of 2
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
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
recommends Board approval.
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 FIVE: Maintain a Reliable Infrastructure
Strategy 1 - Manage Assets Optimally Throughout Their Lifecycle
February 15, 2018 Regular Board Meeting Agenda Packet- Page 23 of 79