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HomeMy WebLinkAbout03.b. Review draft Position Paper to conduct a public hearing to consider adopting Resolution No. 2019-___ finding that, in accordance with California Public Contract Code Section 7201, the Pump Station Upgrades - Phase 1, District Project 8436, is subst Page 1 of 14 Item 3.b. CENTRAL SAN BOARD OF DIRECTORS vie POSITION PAPER Hil Tim DRAFT MEETING DATE: JULY 9, 2019 SUBJECT: REVIEW DRAFT POSITION PAPER TO CONDUCTA PUBLIC HEARING TO CONSIDER ADOPTING RESOLUTION NO. 2019- FINDING THAT, IN ACCORDANCE WITH CALIFORNIA PUBLIC CONTRACT CODE SECTION 7201, THE PUMP STATION UPGRADES - PHASE 1, DISTRICT PROJECT 8436, IS SUBSTANTIALLY COMPLEX JUSTIFYING AN INCREASED CONSTRUCTION CONTRACT RETENTION AMOUNT OF TEN PERCENT; AND SUBSEQUENTLY FIND THAT THE PROJECT IS EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITYACT (CEQA) SUBMITTED BY: INITIATING DEPARTMENT: KEITH GELLERMAN, ASSOCIATE ENGINEER ENGINEERING AND TECHNICAL SERVICES- CAPITAL PROJECTS REVIEWED BY: SASHA MESTETSKY, SENIOR ENGINEER EDGAR J. LOPEZ, CAPITAL PROJECTS DIVISION MANAGER JEAN-MARC PETIT, DIRECTOR OF ENGINEERING AND TECHNICAL SERVICES KENTON L.ALM, DISTRICT COUNSEL ISSUE California Public Contract Code Section 7201 states that the maximum a public agency may hold as the construction contract retention is five percent. However, a public agency may find, at a properly noticed and normally scheduled Board hearing, that a project is substantially complex so as to justify that a higher amount of retention should be withheld. BACKGROUND The Public Contract Code states that the maximum amount a public agency can withhold on a construction contract is five percent. A public agency's governing body may increase the retention amount, via a properly noticed Board hearing on a specific project, by making a finding that the project is sufficiently complex to justify the increased retention. Staff requests that the Board conduct a hearing to consider increasing the construction contract retention from five percent to ten percent for the Pump Station Upgrades - Phase 1, District Project (DP) 8436 (Project). July 9, 2019 Special EOPS Committee Meeting Agenda Packet- Page 13 of 42 Page 2 of 14 The finding to increase the construction contract retention must be made prior to bidding the Project. If approved by the Board, the increased retention amount and resolution will be included in the bid documents. The Project is currently scheduled to advertise for public bid in late August and early September of this year. The Project proposes renovation at three pump stations, including two of the largest pump stations at Central San, Moraga and Orinda Crossroads Pump Stations. The Moraga Pump Station is located at 1790 School Street in Moraga, adjacent to a creek and near a school. The Orinda Crossroads Pump Station is at 10 Camino Pablo in Orinda at Theatre Square. The complex elements of the Project include, but are not limited to: • Upgrading electrical and controls for the new electrical wet weather pumps, including new switchgear and variable speed drives; • Upgrading backup generators and automatic transfer switch improvements; • Replacing the wet weather diesel engine driven pumps with electric motors at the Moraga and Orinda Crossroads Pump Stations; • Reconditioning or replacing pumps, valves, and gates; • Replacing/adding surge tanks; • Replacing six dry-pit pumps with new submersible pumps (bid alternate); • Adding grinders to the Moraga Pump Station (bid alternate); • All construction must occur at fully operational pump stations where no alternative redirection of flows are available; and • Stations located in high-use residential and midtown commercial areas. Due to the complexity of the work, long equipment lead times, and wet weather construction restrictions, the Project is expected to require a minimum of 24 months to complete. The construction cost estimate for the Project at the 90-percent design stage including all bid alternates is approximately$24 million. The general contractor, subcontractors, and suppliers will have to carefully coordinate the work to ensure the timely and safe completion of the Project. I n the event that claims should arise from subcontractors or suppliers, a ten-percent retention is more likely to provide sufficient funds to help address such notices or claims. Staff believes that the Project is sufficiently complex to justify a ten-percent construction contract retention as the planned improvements require major modifications to the mechanical, electrical, instrumentation, and controls systems at the Moraga, Orinda Crossroads, and Flush Kleen Pump Stations. Staff anticipates that the general contractor will use a number of subcontractors and suppliers and that the coordination of this work will be challenging. CEQA: Staff has concluded that this project is exempt from CEQA under Central San's 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.Any capacity increases are for non-growth inducing, wet weather purposes.Approval of this Project will establish the Board's independent finding that this Project is exempt from CEQA. ALT ERNAT IVES/CONSIDERAT IONS The Board has increased retention on construction contracts on several projects, including the Primary Renovations, DP 7285 and more recently on the Headworks Screening Upgrades, DP 7327. The decision to increase the retention amount was beneficial for each project since it allowed staff enough funds to help resolve issues with equipment or disputes with subcontractors. July 9, 2019 Special EOPS Committee Meeting Agenda Packet- Page 14 of 42 Page 3 of 14 The Board may elect to not hold the hearing and keep the retention amount at five-percent or provide another alternative. However, this is not recommended due to the substantial complexity of the Project. FINANCIAL IMPACTS No financial impact is expected. General contractors may choose to increase their bid to cover the costs of holding additional retention; however, staff believes it would likely be minimal, if any, since bidders are under low bid requirements in order to compete for the contract. COMMITTEE RECOMMENDATION The Engineering and Operations Committee reviewed this matter at its meeting on July 9, 2019 and recommended RECOMMENDED BOARD ACTION Staff recommends the following: 1.Adopt a resolution finding that, in accordance with California Public Contract Code Section 7201, the Pump Station Upgrades - Phase 1, District Project 8436, is substantially complex and justifies increasing the construction contract retention amount from five percent to ten percent; and 2. Find that the Project is exempt from CEQA. Strategic Plan Tie-In GOAL TWO: Strive to Meet Regulatory Requirements Strategy 1 - Strive to achieve 100%permit compliance in air, water, land, and other regulations, Strategy 2- Strive to minimize the number of sanitary sewer overflows, Strategy 3- Comply with all federal, state, and local regulations related to District administration GOAL FIVE:Maintain a Reliable Infrastructure Strategy 3- Protect District personnel and assets from threats and emergencies ATTACHMENTS: 1. Presentation July 9, 2019 Special EOPS Committee Meeting Agenda Packet- Page 15 of 42 Page 4 of 14 PUMP STATION (PS) UPGRADES DISTRICT PROJECT 8436 pPHASE 1 UPDATE Engineering and Operations Committee July 9, 2019 E—, .lean-Marc Petit, Director of Engineering and Technical Services Edgar J. Lopez, Capital Projects Division Manager -- 4 PS UPGRADES PHASING • Phase 1, District Project 8436: • Orinda Crossroads PS .- ' Sa [uy6bMn • Moraga PS Pumpfu[bn -- • Flush Kleen PS � McHbr � ;onmld Maln PYmp SlitlOn Me ering 5[atlan 0 • Concord Metering i Vault Improvements (Under construction with other project) • Phase 2: Scheduled for FY 2019-20 to startR_�� design • Martinez PS PumpSW[lon Alamo' • Fairview PS a,�Maaga — • Maltby PS - Z -.L 1 July 9, 2019 Special EOPS Committee Meeting Agenda Packet- Page 16 of 42 Page 5 of 14 MORAGA - ORINDA CROSSROADS PUMP STATIONS • Facilities deliver a majority of wastewater flows from Orinda and Moraga and are critical facilities T- • � Moraga and Orinda Crossroads _ Pump Stations scope includes: • Major electrical upgrades • Instrumentations and controls upgrades • New standby power systems • New wet weather pumping: Electric driven pumps ~" • Replace surge tanks 13 ALTERNATE BID ITEMS Alternate Bid Items: • Orinda Crossroads and Moraga Pump Stations • Install dry pit submersible pumps for added resiliency • Wet weather casing replacement or rehab depending on inspection • Moraga PS Only • Install mechanized grinders ` Ic 4 2 July 9, 2019 Special EOPS Committee Meeting Agenda Packet- Page 17 of 42 Page 6 of 14 FLUSH KLEEN PUMP STATION Oldest PS in our System (1950) Major Improvements: Electrical, instrumentation and controls improvements and upgrades Replace standby power - generator � 4 ANTICIPATED SCHEDULE 100% Design Acceptance — August 6, 2019 Pre-qualifying general contractor and electrical subcontractors prior to advertising (On Going) • Public outreach ongoing with City (On Going) • Advertise — August 26, 2019 • Bid Opening — October 7, 2019 • Engineering & Operations Committee — October 15, 2019 • Board Award — November 7, 2019 • Notice to Proceed — November 28, 2019 • Complete construction by Spring 2022 (Majority of work during summer of 2020 and 2021) � 6 3 July 9, 2019 Special EOPS Committee Meeting Agenda Packet- Page 18 of 42 Page 7 of 14 CURRENT AND FUTURE BOARD ACTIONS Current: • Increase construction contract retention from 5% to 10% due to the complexity of the project Future (at award): • Construction Management Services (Request for Proposals in process) • Engineering Support Services during Construction with V.W. Housen and Associates (currently negotiating) p _ RECOMMENDED BOARD ACTIONS • Adopt a resolution finding that, in accordance with California Public Contract Code Section 7201, the Pump Station Upgrades - Phase 1, District Project 8436, is substantially complex to justify increasing the construction contract retention amount from 5% to 10%; and • Find that the Project is exempt from CEQA 4 July 9, 2019 Special EOPS Committee Meeting Agenda Packet- Page 19 of 42 Page 8 of 14 QUESTIONS? 9 ADDITIONAL INFORMATION 5 July 9, 2019 Special EOPS Committee Meeting Agenda Packet- Page 20 of 42 Page 9 of 14 PUMP STATION UPGRADES PROJECT PROJECT DESIGN, BID,AND CONSTRUCTION SCHEDULE r1mpY Cmres✓ rnc. Abp. ...r.r. wrnar,. i� wwfeowl o„q^eiuu - w.rq C d�an•I�n,N+W v in�lF�vbk.�wmr aprr�ry I 11 SCOPE AT ORINDA CROSSROADS PS • Largest pump station for Central San , oft • List of improvements included in the F �' Project: • Major electrical, instrumentation and controls improvements and upgrades • Replace diesel engines on wet weather pumps with electric motors • Install standby power to drive both dry - and wet weather pumps • Upgrade surge protection • Structure code upgrades • Alternate bid to install dry-pit submersible pumps for added a resiliency ` de 1 i, 2 6 July 9, 2019 Special EOPS Committee Meeting Agenda Packet- Page 21 of 42 Page 10 of 14 SCOPE AT MORAGA PS • Second largest Central San PS • List of improvements included in the �. Project: • Major electrical, instrumentation and controls improvements and _ upgrades • Replace diesel engines on wet weather pumps with electric motors • Install standby power to drive both dry and wet weather pumps • Upgrade surge protection • Structure code upgrades Alternate bids: • Install dry pit submersible pumps for added resiliency • Install of mechanized grinders (currently manual cleaning) I.13 MORAGA AND ORINDA CROSSROADS PUMP STATION OPTIONS EVALUATION FOR WET WEATHER PUMPS • Option 1: Engine Driven Wet Weather Pumps. Replace engines with new engines and controls and refurbish the existing wet weather pumps • Option 2:All-Electric Driven Wet Weather Pumps. Replace engines with electric motors, refurbish the existing wet weather pumps and install new standby generator to drive all (dry and wet weather) pumps. • Option 3: Hybrid Option. Replace Waukesha engines with electric motors, refurbish the existing wet weather pumps and install new standby generator to drive (dry and one wet weather) pumps. Maintain Caterpillar engines to drive wet weather pumps at each station and upgrade the engines controls. Recommended and implementing Option 2. �;14 7 July 9, 2019 Special EOPS Committee Meeting Agenda Packet- Page 22 of 42 Page 11 of 14 ------------- rw...ouacv I_CENTRALSANI ewe I 15 — Mgt­Tnz� SLIMY- - - - •-=--- a --^�-..�,.'. 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