The URL can be used to link to this page

Home My WebLink About11. Authorize increase in contract contingency by $465,000 for POB Seismic Upgrades and Server Room Relocation, DP 7362 & 8243, and transfer $465,000 from Capital Improvement Budget Page 1 of 20 Item 11. CENTRAL SAN BOARD OF DIRECTORS POSITION PAPER MEETING DATE: NOVEMBER 21, 2019 SUBJECT: 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 Roger S. Bailey General Manager 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; November 21, 2019 Regular Board Meeting Agenda Packet- Page 56 of 91 Page 2 of 20 • 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; • Public restroom accessibility and ADA (Americans with Disabilities Act) compliance near the MPR and Headquarters Office Building (HOB) lobby; • I mprove 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-Phase 1A, 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 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 November 21, 2019 Regular Board Meeting Agenda Packet- Page 57 of 91 Page 3 of 20 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 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. In 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 and locker room facilities: I n order to perform the heavy structural modifications in these facilities, they had to be closed to staff during construction. Initially, it was anticipated that staff would use other Central San restrooms and shower and locker room 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 November 21, 2019 Regular Board Meeting Agenda Packet- Page 58 of 91 Page 4 of 20 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. 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 upcoming 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. November 21, 2019 Regular Board Meeting Agenda Packet- Page 59 of 91 Page 5 of 20 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 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 21, 2019 Regular Board Meeting Agenda Packet- Page 60 of 91 11. Updated Presentation ATTACHMENT 1 POB SEISMIC UPGRADES, 11 DISTRICT PROJECT (DP) 7362 & SERVER ROOM RELOCATION, DP 8243 UPDATE Board Meeting November 21, 2019 - Jean-Marc Petit Director of Engineering and Technical Services Edgar J. Lopez Capital Projects Division Manager 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 Plant Operations Building(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 2 KWHIM-1912,ME 1 staying �❑ POB ~ea i Main Sate MPR 0 Tempmary Pvo' Staff Relocation Lobby mr—ements Temporary POC] New$pn@q Staff Relocation = Roam I ARERAM P Centrd Coma Cpl ,ti'rAL'H]1t\r sanitary of:rrict POB SEISArIiC:IIPi;RAUE5&SERVER ROOM RL:LUL'AIlU\ DISTRICT PROJECT 7362&$243 1 PROJECT LOCATION 3 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 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; Security concerns identified with HOB lobby and MPR; and 6. Asbestos and lead paint abatement as required. r--� 4 CENTRALSAN 2 -�irihwvm. 'ri, yppp u . .- .. . . .- . ... SCD CENTRAL SAN � 1 yF� _ I I �- 1 HEAVY DUTY STRUCTURAL SEISMIC BRACING CENTRAL SAN i, STRUCTURAL SEISMIC BRACING STRUCTURAL SEISMIC BRACING _ � I 41, S CENTRAL SAN MPR SEISMIC BRACING • y. 11�10 4 � �c=CD CENTRALSAN � 4 Ste. STRUCTURAL WORK IN MPR MPR +fie• _-,-— -=- --.. _ CENTRALSAN ��. 1 � 1► Lt 1! t+ POB HALLWAY BY MPR POB OFFICES r' ��=CD CENTRALSAN ~r POD OFFICES STRUCTURAL SEISMIC q ' BRACING CENTRAL SAN POB STAFF SHOWER AND LOCKER ROOMS ��=CD CENTRALSAN } I` I ASBESTOS AND LEAD REMOVAL �c=CD CENTRALSAN I IT Staff �� ■i�!�'��'��SO� f ISTT / IM Him, h 60M W-c�CD - CENTRALSAN rs SERVER ROOM r' RELOCATION PROJECT ' ti . ' y 1a. __- '•�.+k`_. _i•• Tri;':`'��,.+1�! pl CENTRALSAN iL ■ CENTRALSAN MPR PUBLIC RESTROOMS L ��=CD CENTRALSAN ANEW ~ r--- � low r HOB LOBBY Change Order Timeline $130,000 10% $110,000 8% $90,000 6% $70,000 — $50,000 4% $30,000 2% $10,000 01-Nor18 12-Mar-19 06-M1y-19 04-tun-19 1 111-11 14-tun-19 25-Jul-19 26-Sep-19 08-Oct-19 24-0c1-19 19-011-19 0% 5(10,000) NTP 1 2 3 5 6 7 9 10 11 12 $130,000) �pmount —Percent of Contract —Cumulative Percentage -2% FT odate,a total of$494,454 has been issued in change orders and charged to the Project. 23 his constitutes 8.73 percent Project contingency. Change Order Analysis for POB Seismic and Server Room Projects Change Orders Percentage to Date Change Orders Amount to Date 29.76% $147,128 makwom, Ir 5.97% $29,513 •Architectural •Electrical •Fire IT•Shower Trailers •Numbing/Meth. •Structural/Environ $494,454 or 8.73%of Project contingency 12 PENDING PROJECT BUDGET INCREASE Pending/Possible Project Costs by Percentage Pending/Possible Project Costs by Amount 1.12% Ilk $5,200 ANAg 0.86% IN18FOO, •Architectural •Electrical •HVAC •IT •Structural/Environmental •E#ended Project Duration •Project Unassigned $465,000 from Capital Improvement Budget contingency zs BUILDING RETROFIT PROJECTS OFTEN REQUIRE ADDITIONAL BUDGET • Seismic Improvements for HOB, DP 8226, had a total project budget at award for$5,716,000, included 15% contingency. Added $225,000 for budget overrun. • Pump and Blower Building Seismic Upgrades, DP 7291, was not determined by a traditional low bid (since no bids were originally received). Contract was done as a Guaranteed Maximum Price Agreement and awarded for$6,780,000. This project exceeded the total project budget of$829,000. However, this project finished under budget. 26 CENTRALSAN 13 HISTORY OF PROJECT OVERRUN FOR CENTRAL SAN Over the past six years, only 3 projects out of 45 projects valued at approximately $125,000,000, that are closed, have required additional funding after award during construction: • FY 14-15: 9 closed projects, 1 overrun -Walnut Creek Sewer($9,000) • FY 15-16: 10 closed projects, zero overrun • FY 16-17: 13 closed projects, 1 overrun -4737 property improvements ($23,000) • FY 17-18: 5 closed projects, zero overrun • FY 18-19: 8 closed projects, 1 overrun - Grayson Creek Project ($1 M+) Over the past six years, 0.82% overrun for construction awards 21 CENTRALSAN 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. 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. 28 CENTRALSAN 14 REVISED TOTAL ESTIMATED PROJECT BUDGET Total Estimated Project Cost at Award-November 1,2018 which includes 10 percent*project contingency on$5,665,500 award to $ 8,125,000 CWS 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. 29 _aCENTRALSAN 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. 30 CENTRALSAN 15 QUESTIONS? CENTRALSAN 16