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HomeMy WebLinkAbout03.b. Review draft Position Paper to award a construction contract in the amount of $1,834,000 to W.M. Lyles Co., the lowest reponsive bidder for the Treatment Plant Piping Renovations, Phase 9, District Project 7330Item 3.b. CENTRAL SAN BOARD OF DI RECTORS POSIT ION PA PER DRAFT M E E T ING D AT E:MA R C H 13, 2018 S UB J E C T: R E V I E W D R A F T P O S I T I O N PA P E R TO AWA R D A C O NS T R UC T I O N C O NT R A C T I N T HE A MO UNT O F $1,834,000 TO W.M. LYL E S C O., T HE L O W E S T R E S P O NS I V E B I D D E R F O R T HE T R E AT ME NT P L A NT P I P I NG R E NO VAT I O NS, P HA S E 9, D I S T R I C T P R O J E C T 7330; C O NS I D E R E X E MP T I O N F R O M T HE C A L I F O R NI A E NV I R O NME NTA L Q UA L I T Y A C T (C E Q A); A ND A UT HO R I Z E UP TO A 20-P E R C E NT C O NT I NG E NC Y. S UB M I T T E D B Y: C R A I G MI Z UTA NI , S E NI O R E NG I NE E R I NI T I AT I NG D E PART M E NT: E NG I NE E R I NG A ND T E C HNI C A L S E RV I C E S- C A P I TA L P R O J E C T S RE V IE WE D B Y:E D G A R J . L O P E Z , C A P I TA L P R O J E C T S D I V I S I O N MA NA G E R J E A N-MA R C P E T I T, D I R E C TO R O F E NG I NE E R I NG A ND T E C HNI C A L S E RV I C E S IS S UE On F ebruary 28, 2018, one sealed bid was received and opened for the construction of the Treatment Plant Piping Renovations, P hase 9, D istrict Project 7330 (P roject). T he B oard of D irectors (B oard) must award the contract or reject bids within 50 days of the bid opening. A uthorization is also required f or the General Manager to execute the C ontract Documents subject to S ubmittal requirements and include up to 20-percent contingency. B AC K G RO UND D uring the main treatment plant (plant) expansion project in the 1970s (Stage 5 A project), numerous above-grade, below-grade, and tunnel piping systems were installed throughout the plant. T hese systems convey wastewater, sludge, steam, air, and other utility services between the various process areas of the plant. F ailures of such systems reduce the reliability and can adversely impact the treatment process. T his Project will renovate and/or replace various piping, instrumentation and associated equipment in the plant that have been identified and coordinated by E ngineering, and Operations and Maintenance staf f . T he scope of work includes, but is not limited to, replacement or improvements to various piping systems, valves, valve actuators, pumps, and the S olids C onditioning B uilding gas earthquake valve. T he P roject also includes improvements to the plant’s domestic water system. T he air gap tank will be March 13, 2018 EOPS Regular Committee Meeting Agenda Packet - Page 14 of 87 Page 1 of 9 replaced and improvements to increase security and reliability to the system shall be constructed. Additional domestic water piping improvements such as replacing and upgrading backflow preventers, installing an online chlorine residual analyzer, and testing stations have been included in the P roject. C entral San and B lack & Veatch Corporation prepared the plans and specif ications for the project. T he Engineer’s estimate for construction was $2,500,000. T his project was advertised on F ebruary 8 and F ebruary 13, 2018. One sealed bid for $1,834,000 was received and publicly opened on F ebruary 28, 2018. T he E ngineering D epartment conducted a technical and commercial review of the bid and determined that W.M. Lyles C o. is the lowest responsive and responsible bidder. A summary of bids received is shown in Attachment 2. C entral San will administer the construction contract and will provide contract management, administration, survey, resident engineering, and submittal review. Construction inspection will be provided under Central San’s existing agreement with Harvest Technical Services. B lack & Veatch Corporation was the designer of the water system upgrades and staf f will issue a contract f or construction support services under this project. CE QA: Staf f has concluded that this project is exempt f rom C E Q A under Central S an’s C E Q A Guidelines Section 15302, because it involves replacement of existing sewer f acilities at substantially the same locations and with the same purpose and level of activity as the facilities being replaced. Approval of this project will establish the Boards’ independent finding that this project is exempt from C E Q A . ALT E RNAT I V E S /C O NS I D E RAT IO NS On December 21, 2017, the Board approved a contingency project in the amount of $800,000 for the water system upgrades at the plant, which also includes the Headquarters Office Building. T he scope of work for this contingency project was identified by Black & Veatch C orporation and included into the Project for bid. I n addition, the Treatment Plant (T P ) Urgent R epairs, District P roject 7314, scope of work has been added to the P iping Phase 9 project f or bid purposes. T he T P Urgent R epairs project was intended to allow Central S an the ability to use a contractor on a multi-year basis to repair small urgent projects. D ue to the unsuccessful attempt f or similar services in the C ollection System Program, staf f added the identif ied items to the P iping Phase 9 project. Both projects, the Water Upgrades and T P Urgent R epairs scope was bid under the P iping Phase 9 project due to the similar nature of the construction work and for contract ef f iciencies. An alternative would be to reject the bid, which is not recommended. F I NANC IAL I M PAC T S T he total estimated P roject cost is $3,180,000, including planning, design, bid price, contingency, construction management, and consultant costs as detailed in A ttachment 3. T his P roject will span two fiscal years and is being f unded by the f ollowing three projects as shown in the f ollowing table: F inancial Impact Table:Amount x F unds budgeted this F Y 2017-18 for this project $1,500,000 o F unds taken f rom current F Y 2017-18 C I B contingency $ 0 F unds transferred from current F Y 2017-18 projects : o a. Updated forecast; estimated savings from project available $ 0 o b. Acceleration of f unds f or project that is budgeted in f uture year $ 0 March 13, 2018 EOPS Regular Committee Meeting Agenda Packet - Page 15 of 87 Page 2 of 9 x c. C ombined project scope f or bidding purposes: Water System Upgrades and T P Urgent R epairs $ 1,680,000 o d. P otential future year budget impact (May be mitigated through (1) savings from close-outs of current year projects; (2) reprioritizing future year projects; (3) cost savings on f uture year projects) $ 0 Total Cost $3,180,000 C O M M I T T E E RE C O M M E ND AT IO N T he Engineering and Operations Committee reviewed this project at the meeting on March 13, 2018, and recommended award of the project. RE C O M M E ND E D B O ARD AC T I O N Staff recommends the following: 1. Find that the project is exempt from CE QA; 2. Award a construction contract in the amount of $1,834,000 for the construction of the Treatment Plant Piping Renovations, Phase 9, District Project 7330, to W.M. Lyles Co., the lowest responsive and responsible bidder; and 3. Authorize the General Manager to execute the Contract Documents subject to Submittal requirements and include up to a 20-percent contingency. AT TAC HM E NT S : D escription 1. P roject L ocation Map 2. S ummary of B ids 3. P ost-B id/P reconstruction E stimate 4. P resentation March 13, 2018 EOPS Regular Committee Meeting Agenda Packet - Page 16 of 87 Page 3 of 9 March 13, 2018 EOPS Regular Committee Meeting Agenda Packet - Page 17 of 87 Page 4 of 9 ATTACHMENT 2 TREATMENT PLANT PIPING RENOVATIONS, PHASE 9 DISTRICT PROJECT 7330 SUMMARY OF BIDS PROJECT NO.: 7330 NO. OF ADDENDA: 2 DATE/TIME: FEBRUARY 28, 2018/2:00 PM PROJECT NAME: TREATMENT PLANT PIPING RENOVATIONS, PHASE 9 PROJECT MANAGER: CRAIG MIZUTANI PROJECT LOCATION: 5019 IMHOFF PLACE, MARTINEZ, CALIFORNIA ENGINEER'S ESTIMATE: $2,500,000 NO. BIDDER BID PRICE 1 W.M. Lyles Co. Fresno, California $1,834,000 BIDS OPENED BY: /s/ Katie Young DATE: February 28, 2018 March 13, 2018 EOPS Regular Committee Meeting Agenda Packet - Page 18 of 87 Page 5 of 9 ATTACHMENT 3 TREATMENT PLANT PIPING RENOVATIONS, PHASE 9 DISTRICT PROJECT 7330 POST-BID/PRECONSTRUCTION ESTIMATE * Consultant fees also include Black & Veatch Corporation assistance in water testing, and maintenance standard and procedures. No. Item Description Amounts % of Construction Cost 1. CONSTRUCTION a. Construction Contract $1,834,000 b. 20% Contingency $366,000 SUBTOTAL – CONSTRUCTION COST $2,200,000 100% 2. CONSTRUCTION MANAGEMENT a. District Forces - Construction Management, Engineering $80,000 - Survey and As-Builts $15,000 - Plant Operation Division (POD) Coordination $25,000 b. Consultants - Inspection $90,000 - Black & Veatch Corp. Construction Support $80,000 - Material Testing $5,000 - Structural Engineering $5,000 SUBTOTAL - CONSTRUCTION MANAGEMENT $300,000 14% 3. PREBID EXPENDITURES a. Engineering (Planning, Design and POD Coordination) $450,000 b. Consultant Fees* $230,000 SUBTOTAL - PREBID EXPENDITURES $680,000 31% 4. TOTAL ESTIMATED PROJECT COST $3,180,000 March 13, 2018 EOPS Regular Committee Meeting Agenda Packet - Page 19 of 87 Page 6 of 9 1 TREATMENT PLANT PIPING RENOVATIONS, PHASE 9, DISTRICT PROJECT 7330 Presented by Edgar J. Lopez, PE Capital Projects Division Manager and William Grant, PE Project Manager Engineering & Operations Committee March 13, 2018 Meeting BACKGROUND •Replacement based on: •40-plus years of deteriorating piping and mechanical systems •Reliability needs •Impacts to treatment processes •Coordination between Engineering, Operations and Maintenance •Potable Water System Improvements based on: •Increase security •Reliability to system •Improved testing and maintenance of system March 13, 2018 EOPS Regular Committee Meeting Agenda Packet - Page 20 of 87 Page 7 of 9 2 PROJECT SCOPE OF WORK •Piping 9, District Project 7330 •Various Piping System Replacements and Improvements •Valve Actuator Replacements •Associated Electrical and Control Modifications •Urgent Repairs, District Project 7314 •SCB Earthquake Valve Replacement •Condenser Cooling Pump Replacement •9000 Structure Corrosion Repairs •Potable Water System Upgrades •Air Gap Tank Replacement •Chlorine Residual Analyzer •Backflow Prevention Upgrades •Testing Stations Utility Water Line SCB Earthquake Valve Potable Water System March 13, 2018 EOPS Regular Committee Meeting Agenda Packet - Page 21 of 87 Page 8 of 9 3 STAFF RECOMMENDATION •Staff recommends the following: •Find that the Project is exempt from CEQA; •Award a construction contract in the amount of $1,834,000 for the construction of the Treatment Plant Piping Renovations, Phase 9, District Project 7330, to W.M. Lyles Co., the lowest responsive and responsible bidder; and •Authorize the General Manager to execute the Contract Documents subject to submittal requirements and include up to a 20-percent contingency. QUESTIONS? March 13, 2018 EOPS Regular Committee Meeting Agenda Packet - Page 22 of 87 Page 9 of 9