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Home My WebLink About03.c. Review draft Position Paper to authorize the General Manager to: 1) increase the construction contract contingency by an additional $465,000 for the Plant Operations Building Seismic Upgrades and Server Room Relocation, District Projects 7362 and 8 Page 1 of 20 Item 3.c. CENTRAL SAN BOARD OF DIRECTORS POSITION PAPER DRAFT MEETING DATE: NOVEMBER 19, 2019 SUBJECT: REVIEW DRAFT POSITION PAPER TO AUTHORIZE THE GENERAL MANAGER TO: 1) INCREASE THE CONSTRUCTION CONTRACT CONTINGENCY BYAN ADDITIONAL $465,000 FOR THE PLANT OPERATIONS BUILDING SEISMIC UPGRADES AND SERVER ROOM RELOCATION, DISTRICT PROJECTS 7362 AND 8243; AND 2) TRANSFER $465,000 FROM THE CAPITAL IMPROVEMENT BUDGET CONTINGENCY TO FUND THESE PROJECTS SUBMITTED BY: INITIATING DEPARTMENT: NATHAN HODGES, SENIOR ENGINEER ENGINEERING AND TECHNICAL SERVICES- CAPITAL PROJECTS REVIEWED BY: EDGAR J. LOPEZ, CAPITAL PROJECTS DIVISION MANAGER JEAN-MARC PETIT, DIRECTOR OF ENGINEERING AND TECHNICAL SERVICES ISSUE Board of Directors' authorization is required to increase the contract contingency above the budgeted amount at time of award. BACKGROUND The Plant Operations Building (POB) Seismic Upgrades and Server Room Relocation, District Projects (DP) 7362 and 8243 (Project), was awarded to CWS Construction Group, Inc. (CWS) on November 1, 2018. This Project is currently under construction and was aimed to address the following needs: • Seismic deficiencies associated with the POB, including Operations staff offices and the main treatment plant (plant) Control Room, Board Room, and Multi-Purpose Room (MPR). This included asbestos and lead paint abatement required during demolition; • Identified risks (seismic and security) associated with increased use of the MPR for Central San meetings, public use, and Emergency Operations Center(EOC); • I mprove reliability and eliminate the risk of interrupted services (business and plant operations) associated with the location of the Information Technology (IT) server room, which is currently located in a flood prone basement; November 19, 2019 EOPS Regular Committee Meeting Agenda Packet- Page 10 of 56 Page 2 of 20 • Public restroom accessibility and ADA(Americans with Disabilities Act) compliance near the MPR and Headquarters Office Building (HOB) lobby; • Improve Permit Counter area due to increased daily demand; and • Security concerns identified at the HOB lobby and MPR. CWS' bid consisted of a base bid amount and three additive bid items. The base bid included the seismic upgrades to the POB, improvements to the MPR, including public restrooms, and construction of a new server room. Staff recommended and the Board awarded the additive bid item to renovate the HOB lobby. The remaining two other additive bid items were not included in the award to CWS. The award resulted in a construction contract of$5,665,000 and a contract contingency of 10 percent. Staff is requesting an increase of the contingency through the transfer of the balance of the Capital Improvement Budget (CI B)for Fiscal Year(FY) 2019-20 contingency($465,000). This would increase contingency from 10 percent to 18.2 percent of authorized contract contingency. The primary drivers for the use of contingencies to date are Central San-directed change orders. The main reason for requesting additional funds is to allow staff to have the resultant contingency capacity to address anticipated change orders, and to complete the Project. Central San-directed costs include additional construction effort to modify elements of the Project, most of which are associated with the POB, to address: 1) mechanical (HVAC), electrical and plumbing (MEP), structural, architectural (including roofing and insulation), and environmental issues (lead paint and asbestos removal) and challenges encountered during construction that were unknown at the time of bid; 2) requests from the plant Operations staff; and 3) additional work related to other POB improvements. Another reason for the budget increase is to potentially purchase the three office trailers (including all furnishings) installed by CWS to temporarily relocate POD staff. These trailers will be used in future construction projects (e.g. Solids Handling Facility Improvements, DP 7348 (Solids Project) and Filter Plant and Clearwell Improvements, DP 7361)which will all require similar construction office trailers. This would save Central San from requiring contractors to furnish and then decommission temporary office trailers for each major construction project forecasted to be ongoing for the next decade at the plant. The costs for the trailers will be funded through the Solids Project. 1. Mechanical, electrical, structural, architectural, environmental issues, and challenges encountered during the construction: a) POB Remodeling and Rehabilitation - While the POB houses administrative offices on the first floor, it is also a plant process building housing the Control Room, significant plant related MEP, electrical services and existing electrical interconnections to critical plant equipment and controls. The Project specifications and drawings identified new MEP work to be performed within the POB that staff had to integrate into the existing systems. Due to the intricacies and lack of reliable as-built drawings of the existing systems, MEP and especially electrical systems, we encountered several vulnerabilities to the POB electrical system which led to some temporary electrical shutdowns.As a result, the contractor was directed and paid to scan all floors for electrical conduit to thoroughly investigate all electrical circuits, including adding electrical equipment so that future shutdowns would be prevented.As the POB remodeling work is still under construction and not completed, these challenges and issues are ongoing and additional cost will be incurred to resolve these issues until the Project is completed. b) POB Steel Framing Modifications - During the installation of the complex and substantive steel framing for the seismic retrofit, the steel connections had to be modified numerous times to November 19, 2019 EOPS Regular Committee Meeting Agenda Packet- Page 11 of 56 Page 3 of 20 accommodate existing building structural elements and contractor requests for changes. Like the electrical issues listed above, existing as-built drawings of the structural POB were limited. Opportunities to conduct extensive field verifications during the design were not feasible. Therefore, the structural engineer had to re-design and modify many of the connections to adapt the design to actual field conditions and to accommodate contractor's means and methods. As the work is not completed, these steel framing modifications are ongoing and additional cost will be incurred to resolve these issues until the Project is completed. c) Server Room -Additional subgrade civil preparation work had to be done for the new server room once the excavation was completed to add electrical conduits. Building control joints and roofing details were required to be modified to connect the existing POB structure with the new server room structure. Additional electrical conduits were needed to be installed for the server room to accommodate the future cooling requirements; this work is now completed. d) Lead Paint, Asbestos, and POB Atrium - During the modifications of the existing steel, lead paint and asbestos removal was identified. I n addition, removal of asbestos in the sidewalls of the planters and water feature box (pool) in the POB atrium area by the lunch room is needed. Removal and abandonment of the planters and of the pool will make better use of the space in the atrium area. I n addition, the pool uses potable water and requires unnecessary ongoing maintenance which would be eliminated. The planters are in disrepair and cause some safety and potential health concerns. This abatement work needs to proceed before the finished space is completed and staff moves back into the building; this work is ongoing. 2. Accommodate Requests from the Plant Operations: Additional work to accommodate requests made by Operations during construction include: a) POB restrooms and shower/locker room facilities: I n order to perform the heavy structural modifications in these facilities, they had to be closed to staff during the construction. Initially, it was anticipated that staff would use other Central San restrooms and shower/lockers facilities; however, due to the Memorandum of Understanding labor provisions and requirements, temporary shower and locker room facilities (one for each gender)were installed for the Project. The cost for additional rental will continue until staff can move back into the POB and use the locker rooms and showers. With the remodeling of the existing POB locker rooms and showers coming to an end, the additional rental cost for these temporary facilities should be ending too. b) Modifications to add offices to accommodate the consolidation of the regulatory compliance engineers, manager, and POD staff to the POB office space area. This work is completed. c) Minor re-design of the administration area. This work is completed. d) Upgrades and replacement of some of the existing power source to better protect plant electrical equipment. This activity is ongoing. 3. Additional Work Related to other POB improvements: Other improvements to the POB that were added to CWS' scope of work include: a)Additional security modifications to the MPR doors in order to accommodate emergency exit procedures and restrict public access to the plant. This work is ongoing. b) Re-routing of the existing HOB lobby electrical to provide for improved safety and access. This work is completed. November 19, 2019 EOPS Regular Committee Meeting Agenda Packet- Page 12 of 56 Page 4 of 20 ALTERNATIVES/CONSIDERATIONS Alternative 1: Reject the additional contingency amount, which is not recommended. The current contingency of 10 percent is insufficient to cover all the work stated above and to pay for normal change orders expected to complete a project of this size and complexity. This Project is still under construction and the additional funds are needed to complete the Project. Alternative 2: Revise the approved percentage of the requested additional contingency amount to a lower percentage of dollar amount. The current contingency of 10 percent is insufficient to cover all the work stated above and to pay for normal change orders expected to complete a project of this size and complexity. This Project is still under construction and the additional funds are needed to complete the Project. Under this alternative, staff may need to come back to the Board for additional funds at a later Board meeting in order to complete the Project. Purchasing the three office trailers from CWS is a long-term cost saving to Central San as compared to rental cost that would need to be incurred on future capital projects that are coming up at the plant site. These office trailers would be used and made available for future construction to house Construction Management staff, inspectors, project administration staff, and to provide spaces to hold construction progress meetings. FINANCIAL IMPACTS To date, a total of$494,454 has been issued in change orders and charged to the Project. This constitutes 8.73 percent contract contingency. Staff is requesting to increase the construction contract contingency by an additional $465,000 for the Plant Operations Building Seismic Upgrades and Server Room Relocation, District Projects 7362 and 8243. This is the remaining amount of the C I B Contingency available for FY 2019-20 which would be transferred from the Capital Program Contingency to fund these projects. The General Manger will transfer the funds needed upon approval by the Board of the additional contingency. Staff will continue to closely manage the construction and review all contractor submitted potential change order requests.Any contingency funds not used will be returned to the Sewer Construction Fund. COMMITTEE RECOMMENDATION The Engineering and Operations Committee reviewed and discussed this subject on November 19, 2019, and its recommendation will be presented to the Board at the November 21, 2019 meeting. RECOMMENDED BOARD ACTION Authorize the General Manager to: 1. Increase the construction contract contingency by an additional $465,000 for the Plant Operations Building Seismic Upgrades and Server Room Relocation, District Projects 7362 and 8243; and 2. Transfer$465,000 from the Capital Improvement Budget Contingency to fund these projects. Stratedc 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 November 19, 2019 EOPS Regular Committee Meeting Agenda Packet- Page 13 of 56 Page 5 of 20 GOAL FIVE:Maintain a Reliable Infrastructure Strategy 2- Facilitate long-term capital renewal and replacement, Strategy 3- Protect District personnel and assets from threats and emergencies ATTACHMENTS: 1. Presentation November 19, 2019 EOPS Regular Committee Meeting Agenda Packet- Page 14 of 56 Page 6 of 20 POB SEISMIC UPGRADES, 11 DISTRICT PROJECT (DP) 7362 & SERVER ROOM RELOCATION, DP 8243 UPDATE Engineering and Operations Committee November 19, 2019 Jean-Marc Petit Director of Engineering and Technical Services Edgar J. Lopez Capital Projects Division Manager PRESENTATION OUTLINE • Project Background • Project Drivers • Construction Update • Headquarters Office Building (HOB)Lobby: Reception, Permit Counter and Public Restroom • Multi-Purpose Room (MPR)and MPR Public Restrooms • Lockers/Showers in the Plant Operations Building (POB) • POB Offices • Temporary Office Trailers • Temporary Locker Rooms and Lockers • Server Room • Budget Status • Change Orders(CO)To Date • Increase in Project Contingency Requested • Financial Impact • Alternatives • Staff. Recommendations 2 CENTRALSAN 1 November 19, 2019 EOPS Regular Committee Meeting Agenda Packet- Page 15 of 56 Page 7 of 20 PROJECT BACKGROUND • Several key project elements were identified over the past nine years in the Capital Improvement Budgets(CIBs),2009 Seismic Study,and reaffirmed in both the Comprehensive Wastewater Master Plan(CWMP)and Security Study in 2017 • A Request for Proposal(RFP)was issued in 2016 for a preliminary design consultant for the server room,following flooding and damage to the servers in the basement.A RFP was issued in 2017 for a design consultant for the POB seismic project and general facility improvements • MWAArchitects was selected and the design contract awarded on May 18,2017 for a combined project • Combined POB Seismic Upgrades,DP 7362 and Server Room Relocation,DP 8243 into one bid package and is funded from many CIB projects and programs • Completed Design between May 2017—July 2018 • Previously presented to the Engineering&Operations(E&O)Committee on July 9,2018 for an update on project status and recommendation approval to advertise project to bid.Presented to the Board on July 19,2018 for approval to advertise project to bid • Completed Design and Advertised for Bid on July 31 and August 5,2018.Opened bids on September 10,2018 • Presented to the E&O Committee on September 17,2018 and authorized by the Board on November 1,2018 • Tour of POB Seismic Retrofit Project(Special Board Meeting)on July 11,2019 3 ❑ Staging P✓ed i POB Main Eau ❑ o MPR m Temporary POD � Staff Relocation ® s4 Lo6hy _ ImprpvemeMS Temporary POD New Senw S- Relocation = \\�. Room AREA htAP cencrar conga cosec ,�rr.�erui r:tic Sanrtuy District POB SEISMIC UPGRADES&SERVER ROOM RELOCATION DISTRICT PROJECT 7362&8243 1 PROJECT LOCATION 4 01451MV912,ME 2 November 19, 2019 EOPS Regular Committee Meeting Agenda Packet- Page 16 of 56 Page 8 of 20 ISSUES AND CONCERNS BEING ADDRESSED BY THIS PROJECT: 1. Seismic deficiencies associated with the POB, MPR (also used as the Emergency Operations Center(EOC)), Board Room, and Operations staff offices and main Control Room, and asbestos abatement required in the ceiling plenums; 2. Identified risks (seismic and security)associated with increased use of the MPR for Central San meetings, public use, and EOC; 3. Improve reliability and eliminate the risk of interrupted services (business and plant operations)associated with the location of the Information Technology (IT)server room, which is currently located in a flood prone area; 4. Public restroom accessibility and ADA(Americans with Disabilities Act)compliance near the MPR and HOB lobby; 5. Improve Permit Counter area due to increased daily demand; and 6. Security concerns identified with HOB lobby and MPR. ` 5 CENTRALSAN POD AND MPR SEISMIC IMPROVEMENTS POD Offices and W = _ Facilities Basement —• _ - �,:�� ems_ b. �3 B and tro oom �n P D O Includes Lead Paint and Asbestos Abatement 6 3 November 19, 2019 EOPS Regular Committee Meeting Agenda Packet- Page 17 of 56 f I HEAVY DUTY STRUCTURAL SEISMIC BRACING CENTRALSAN r 40 STRUCTURAL SEISMIC BRACING STRUCTURAL SEISMIC BRACING i� all ��=s CENTRALSAN MPR SEISMIC BRACING S CENTRALSAN YliI 'T�y-4 i STRUCTURAL WORK 1 IN MPR ��i l � • �_ ;1 �t l i POB HALLWAY BY MPR • •- • 1 • •' -• • • ' •- •. .•- 1 • 0 POB OFFICES r' i i= i ��=CD CENTRALSAN POD OFFICES STRUCTURAL SEISMIC q ' BRACING CENTRAL SAN • •- • 1 • •' �-• • - • -•- •. CENT • • ,14 _ _ e POB STAFF SHOWER AND LOCKER ROOMS ��=CD CENTRALSAN Ma IT Staff �` era-�Aoo •� -- - � � //////•U///9/h.'/J�%9/N///O//////rY///�//////b7.67J/!////fJ//✓.C//.Y/.9fG%HYHB7//H/b. e MC0c� CENTRALSAN • •- • 1 • •' '-• • - MFUMMM '.•- 0 0 • SERVER ROOM RELOCATION PROJECT 3 CENTRALSAN • Page 15 of 20 MPR AND LOBBY PUBLIC ACCESSIBLE ADA RESTROOMS IMPROVEMENTS MPR Public Restrooms: Lobby Public Restroom: I I I 1 e o I oFFFE �1as e 1 I IJ CONS�ROGTION PIAN I" �m Arco CENTRALSAN I ICE — — I vnssAc 9 105E 19 lift �� son f .r y zo CENTRALSAN 10 November 19, 2019 EOPS Regular Committee Meeting Agenda Packet- Page 24 of 56 Page 16 of 20 t- LOBBY AND NEW PUBLIC RESTROOM 22 CENTRAL SAN 11 November 19, 2019 EOPS Regular Committee Meeting Agenda Packet- Page 25 of 56 Page 17 of 20 PERMIT COUNTER IMPROVEMENTS CENTRALSAN REVISED TOTAL ESTIMATED PROJECT BUDGET Total Estimated Project Cost at Award-November 2018 which includes 10 percent project contingency on$5,665,500 award to CWS $ 8,125,000 Additional Project Increase in Contingency $ 465,000 Revised Total Estimated Project Cost-November 2019 $ 8,590,000 To date,a total of$494,454 has been issued in change orders and charged to the Project.This constitutes 8.73 percent Project contingency. Ik za CENTRALSAN -- 12 November 19, 2019 EOPS Regular Committee Meeting Agenda Packet- Page 26 of 56 Page 18 of 20 TEMPORARY STAFF SHOWER AND LOCKER TRAILERS l `J21 y � _ ,•� r CENTRALSAN 1� Owl TEMPORARY STAFF OFFICE TRAILERS Purchasing the three office trailers from CWS is a long-term cost saving to Central San as compared to rental cost that would need to be incurred on future capital projects that are upcoming at the main treatment plant site. 26 CENTRALSAN 13 November 19, 2019 EOPS Regular Committee Meeting Agenda Packet- Page 27 of 56 Page 19 of 20 ALTERNATIVES/CONSIDERATIONS Alternative 1: Reject the additional contingency amount,which is not recommended.The current contingency of 10 percent is insufficient to cover all the work stated above and to pay for normal change orders expected to complete a project of this size and complexity.This Project is still under construction and the additional funds are needed to complete the Project and to purchase the three office trailers. Alternative 2: Revise the approved percentage of the requested additional contingency amount to a lower percentage of dollar amount. The current contingency of 10 percent is insufficient to cover all the work stated above and to pay for normal change orders expected to complete a project of this size and complexity.This Project is still under construction and the additional funds are needed to complete the Project and to purchase the three office trailers. Under this alternative, staff may need to come back to the Board for additional funds at a later Board meeting in order to complete the Project. 27 CENTRALSAN BOARD ACTIONS AND RECOMMENDATIONS Staff recommends the following: 1. Authorize the General Manager to increase the construction contract contingency by an additional $465,000 for the Plant Operations Building Seismic Upgrades and Server Room Relocation, District Projects 7362 and 8243; and 2. Authorize the General Manager to transfer $465,000 from the Capital Improvement Budget Contingency to fund these projects. � z8 CENTRALSAN -- 14 November 19, 2019 EOPS Regular Committee Meeting Agenda Packet- Page 28 of 56 Page 20 of 20 QUESTIONS? 29 CENTRALSAN 15 November 19, 2019 EOPS Regular Committee Meeting Agenda Packet- Page 29 of 56