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Home My WebLink About03.b. Review draft Position Paper to approve a new project; award a construction contract in the amount of $610,500 to Aztec Consultants, Inc., the lowest responsive bidder for the Sludge Blending Tank Repairs, District Project 6172; find that the Projec Page 1 of 6 Item 3.b. CENTRAL SAN BOARD OF DIRECTORS POSITION PAPER DRAFT MEETING DATE: JUNE 4, 2019 SUBJECT: REVIEW DRAFT POSITION PAPER TO APPROVE A NEW PROJECT; AWARD A CONSTRUCTION CONTRACT IN THE AMOUNT OF $610,500 TO AZTEC CONSULTANTS, INC., THE LOWEST RESPONSIVE BIDDER FOR THE SLUDGE BLENDING TANK REPAIRS, DISTRICT PROJECT 6172; FIND THAT THE PROJECT IS EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITYACT (CEQA); AND AUTHORIZE UP TO A 15- PERCENT CONTINGENCY SUBMITTED BY: INITIATING DEPARTMENT: CLINT SHI MA, SENIOR ENGINEER ENGINEERING AND TECHNICAL SERVICES- CAPITAL PROJECTS REVIEWED BY: NATHAN HODGES, SENIOR ENGINEER EDGAR J. LOPEZ, CAPITAL PROJECTS DIVISION MANAGER JEAN-MARC PETIT, DIRECTOR OF ENGINEERING AND TECHNICAL SERVICES ISSUE The Board must award the contract or reject bids within 50 days of the bid opening. Board authorization is required for the General Manager to establish a new capital project and transfer funds in an amount greater than $200,000. Authorization is also required for the General Manager to execute the Contract Documents subject to submittal requirements and include up to a 15-percent contingency. BACKGROUND The sludge blending tank (SBT) and lime tanks are critical assets used in the solids process at the wastewater treatment plant. Lime is added to the sludge (primary and secondary mix)for dewatering and incineration purposes and stored in the SBT. The SBT has an inner diameter and wall height of 60 feet and 35 feet respectively, and a maximum capacity of 767,000 gallons. Over time, the lime infused sludge builds up on the inner walls of the piping, valves, and other system components. Narrowing of the pipe gradually obstructs the flow, which adversely affects the solids handling process. The Sludge Blending Tank Repairs, District Project (DP) 6172 (Project)will restore the capacities for the sludge blending and lime injection systems, replace several 12-inch plug valves with new pinch valves, rehabilitate piping, and allow for inspection and condition assessment of the existing underground SBT piping for the Solids Handling Facility Improvements, DP 7348 (Solids Project). The proposed plan under the Solids Project will be to use the existing SBT as a storage tank during routine furnace burn outs and as an June 4, 2019 EOPS Regular Committee Meeting Agenda Packet- Page 5 of 19 Page 2 of 6 emergency storage tank, which is not expected to happen until Fiscal Year(FY) 2022-23 or slightly later. A map showing the location of the Project site is shown in Attachment 1. Cleaning the sludge blending system is a five-year preventative maintenance (PM)task that is completed by outside contractors. The last occurrence was in FY 2012-13, which was coordinated under a previous capital project. Any PM work under the Project will be accounted for and charged to the Operating budget. The capitalized portion such as the valve replacements, piping rehabilitation or similar work, and inspection will be charged to the Solids Project. Combining the efforts between the Operations Department and Capital Projects is more cost effective by reducing the time for equipment shutdown and total work required to access these facilities. Central San staff prepared the plans and specifications for the Project. The Engineer's estimate is $525,000. This Project was advertised on May 7 and 14, 2019. One sealed bid for$610,500 was received and publicly opened on May 28, 2019. The Capital Projects Division conducted a technical and commercial review of the bids and determined that Aztec Consultants, Inc. (Aztec) is the lowest responsive and responsible bidder. Upon review of the bid provided by Aztec, staff noted the increase over the Engineer's estimate was due in part to the cleaning cost of the lime tanks and the associated waste disposal. I n addition,Aztec is familiar with Central San's treatment plant and has successfully completed other construction projects, including the SBT work completed in FY 2012-13. A summary of the bid opening is shown in Attachment 2. Central San will administer and manage the construction contract, provide contract administration, inspection, office engineering, and submittal review. CEQA Staff has concluded that this Project is exempt from CEQA under Central San CEQA Guidelines Section 15301, since it involves minor alterations to existing public facilities involving no expansion of use, and CEQA Guidelines Section 15302, since it involves replacement of existing public facilities at the same location and with the same purpose. Approval of this Project will establish the Board's independent finding that this Project is exempt from CEQA. ALTERNATIVES/CONSIDERATIONS The Board could provide alternate direction or reject all bids, which is not recommended. FINANCIAL IMPACTS The total estimated cost for this Project is approximately$776,000, which includes design, bid, contingency, inspection, and construction management as shown in Attachment 3. Staff anticipates that the costs associated with the Operations budget to be $300,000. The capital cost related to the Project is estimated at$476,000 and will be charged under the Solids Project under a new project number, DP 6172. Upon approval of the Project and construction contract, the General Manager will transfer the required capital funds from the Solids Project. There is adequate funding for this work in the Operating and Solids Project budgets. The transfer will be categorized as "A. Bundling/Unbundling" in the ongoing analysis of C I B transfers presented quarterly. COMMITTEE RECOMMENDATION The Engineering and Operations Committee reviewed this matter at the June 4, 2019 meeting and recommended June 4, 2019 EOPS Regular Committee Meeting Agenda Packet- Page 6 of 19 Page 3 of 6 RECOMMENDED BOARD ACTION Staff recommends the following: 1. Approve a new project in the amount of$776,000 entitled Sludge Blending Tank Repairs, District Project 6172; 2. Find that the Project is exempt from CEQA; 3. Award a construction contract in the amount of $610,500 for the construction of the Sludge Blending Tank Repairs, District Project 6172, to Aztec Consultants, I nc. the lowest responsive bidder; and 4. Authorize the General Manager to execute the Contract Documents subject to submittal requirements and include up to a 15-percent contingency. Strategic Plan re-In GOAL TWO: Strive to Meet Regulatory Requirements Strategy 1 - Strive to achieve 100%permit compliance in air, water, land, and other regulations GOAL THREE: Be a Fiscally Sound and Effective Water Sector Utility Strategy 2- Manage costs ATTACHMENTS: 1. Project Location Map 2. Summary of Bids 3. Post Bid/P reconstruction Estimate June 4, 2019 EOPS Regular Committee Meeting Agenda Packet- Page 7 of 19 Page 4 of 6 Di 0 200 400 FEET Basin A South ° CONSTRUCTION STAGING AREA — ® SOLIDS NDITIONI BUILDIN PROJECT AREA It 0 SLUDGE BLENDING TANKS a i 0 Aeration CLA IERS Tanks (SOUT UAD) I o PRIMARY I S DIMENTATI N i TANKS i zc I ❑ El0 �i I ❑ PUMP AND BLOWER BUILDING POD HOB P�-PG IMHOFF PLACE f Central Contra Costa Attachment Y sanitary District SLUDGE BLENDING TANK REPAIRS DISTRICT PROJECT 6172 1 LOCATION MAP N ar Committee Meeting Agenda Packet- Page 8 of 19 Page 5 of 6 ATTACHMENT 2 SLUDGE BLENDING TANK REPAIRS DISTRICT PROJECT 6172 SUMMARY OF BIDS PROJECT NO.: 6172 NO. OF ADDENDA: 1 DATE/TIME: MAY 28, 2019/2:00 PM PROJECT NAME: SLUDGE BLENDING TANK REPAIRS PROJECT MANAGER: MARK CAVALLERO PROJECT LOCATION: 5019 IMHOFF PLACE, MARTINEZ, CALIFORNIA ENGINEER'S ESTIMATE: $525,000 NO. BIDDER BID PRICE 1 Aztec Consultants, Inc. $610,500 San Ramon, California BIDS OPENED BY /s/Katie Young DATE: May 28, 2019 June 4, 2019 EOPS Regular Committee Meeting Agenda Packet- Page 9 of 19 Page 6 of 6 ATTACHMENT 3 SLUDGE BLENDING TANK REPAIRS DISTRICT PROJECT 6172 POST-BID / PRECONSTRUCTION ESTIMATE % of No. Item Description Amounts Construction Cost 1. CONSTRUCTION a. Construction Contract $610,500 b. Contingency at 15% $90,500 SUBTOTAL — CONSTRUCTION COST $701,000 100% 2. CONSTRUCTION MANAGEMENT a. District Forces - Construction Management, Engineering, $30,000 Inspection, As-Builts - Plant Operation Division (POD) Coordination $5,000 SUBTOTAL - CONSTRUCTION MANAGEMENT $35,000 5% 3. PREBID EXPENDITURES a. Engineering (Planning, Design, Drafting, POD Coordination) $40,000 SUBTOTAL - PREBID EXPENDITURES $40,000 6% 4. TOTAL ESTIMATED PROJECT COST $776,000 June 4, 2019 EOPS Regular Committee Meeting Agenda Packet- Page 10 of 19