HomeMy WebLinkAbout03.a. Review draft Position Paper to authorize the General Manager to execute a professional engineering services agreement with MWH Constructors, Inc. in an amount not to exceed $400,000 for constructability review and related pre-bid services for the S Page 1 of 11
Item 3.a.
CENTRAL SAN BOARD OF DIRECTORS
vie POSITION PAPER
Hill Tim DRAFT
MEETING DATE: DECEMBER 10, 2019
SUBJECT: REVIEW DRAFT POSITION PAPER TOAUTHORIZE THE GENERAL
MANAGER TO EXECUTE A PROFESSIONAL ENGINEERING SERVICES
AGREEMENT WITH MWH CONSTRUCTORS, INC. INANAMOUNT NOTTO
EXCEED $400,000 FOR CONSTRUCTABILITY REVIEW AND RELATED
PRE-BID SERVICES FOR THE SOLIDS HANDLING FACILITY
IMPROVEMENTS, DISTRICT PROJECT 7348
SUBMITTED BY: INITIATING DEPARTMENT:
NATE 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' (Board) authorization is required for the General Manager to execute a professional
engineering services agreement in an amount greater than $100,000.
BACKGROUND
The Solids Handling Facility Improvements, District Project 7348 (solids project), is currently under
design and expected to be ready for bid in early 2020. Prior to the bid advertisement, staff will provide a
project update at a future Board Meeting. The design of the project is being done by Black and Veatch
(B&V) and includes renovation of the following major solids handling processes:
• Sludge Blending and Storage
• Sludge Dewatering
• Multiple Hearth Furnaces (MHFs)
• Building and MHFs Seismic Improvements
• Air Pollution Control (Wet Scrubbers)
• Ash Handling Improvements
Due to the size and complexity of this project, staff has determined that third-party construction
management and inspection (CM) is required. The scope of work for CM is divided into two parts:
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1. Pre-bid services that include constructability review, confirmation of construction cost estimate,
review of bid documents, and assistance with upcoming general contractor and electrical
subcontractor pre-qualifications.
2. Construction management, including inspection services, specialty inspection services, start-
up/commissioning services, project documentation, and other related services.
Staff issued a formal Request for Proposal on September 9, 2019, to provide third-party construction
management that would include pre-bid services, construction management, inspection, special
inspection, and other related services. Central San received proposals from eight CM firms: 4Leaf, Inc,
Carollo Engineers, CDM Smith, Consolidated CM, HDR, K&B Construction Inspection Services, Inc,
Kennedy Jenks, and MWH Constructors. B&V was not allowed to submit as it would be a conflict of
interest to perform construction management on their own design.After reviewing the proposals and
conducting interviews with the top four ranking firms (Carollo Engineers, CDM Smith, HDR, and MWH
Constructors), staff selected MW H Constructors (MW H)for this project. MW H is a national construction
firm. With their involvement as CM, they will be not be able to bid on the construction project.
Staff received the solids project 90-percent design submittal on November 25, 2019. A construction
management review of the submittal is needed at this time in order for B&V to incorporate such input into
the final design. Staff is requesting this initial agreement with MWH in order to begin part 1 identified
above to complete the pre-bid services.
One specific tool that MWH employs in their constructability review is a time lapse Three Dimensional
(3D) computer drafting model for the construction progression. Using B&V's 3D design model and
construction schedule, MWH will analyze the sequence of construction to detect conflicts and identify
potential construction sequence issues. MW H will also review the engineer's estimate and provide a
second opinion from a contractor's point of view. With over 700 sheets of drawings and over 1700 pages
of technical specifications, staff needs additional support that MWH will provide.
Staff will request an increase in the MWH agreement for additional construction support services for the
duration of the project upon award of the construction contract.
ALT ERNAT IVES/CONSIDERAT IONS
The Board could consider the following alternatives or provide other direction:
1. Choose not to authorize the agreement with the selected CM firm at this time and wait until bids are
opened for the project construction next Spring; however, this is not recommended as these
services are needed now to validate the constructability of the design and confirm the engineer's
cost estimate for the State Revolving Fund (SRF) loan application.
2. The Board may direct staff to perform these activities in-house or differently. Staff is currently
performing review and oversight of the project. However, MWH, being a contractor, has specialized
construction knowledge and experience that is particularly applicable for the Solids Project with the
3D model and schedule analysis. Therefore, this alternative is not recommended.
FINANCIAL IMPACTS
The agreement with MWH for pre-bid services is estimated to cost up to $400,000. These costs were
budgeted under the Solids Handling Facility Improvements on page 182 of the Fiscal Year 2019-20
Capital Improvement Budget.
The final CM scope of work and fee is currently being negotiated with MWH and the final cost ceiling will
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be presented for Board authorization when staff awards the construction contract, which is expected in late
Summer 2020. Depending on the services recommended by staff, the total agreement may reach over
$6.5 million.
COMMITTEE RECOMMENDATION
The Engineering and Operations Committee reviewed this subject at its meeting on December 10,
2019, and recommended
RECOMMENDED BOARD ACTION
Authorize the General Manager to execute a professional engineering services agreement with MW H
Constructors, I nc. in amount not to exceed $400,000 for constructability review and related pre-bid
services for the Solids Handling Facility Improvements, District Project 7348.
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 1 - Manage assets optimally throughout their lifecycle, Strategy 2- Facilitate long-term capital renewal and
replacement
ATTACHMENTS:
1. Presentation
December 10, 2019 Special EOPS Committee Meeting Agenda Packet- Page 5 of 18
Page 4 of 11
I� SOLIDS HANDLING FACILITY IMPROVEMENTS
DISTRICT PROJECT 7348 UPDATE AND
CONSTRUCTION MANAGEMENT
- Engineering & Operations Committee
December 10, 2019
Jean-Marc Petit
Director of Engineering and Technical Services
Edgar J. Lopez
Capital Projects Division Manager
_ I
RECOMMENDED
SOLIDS HANDLING FACILITY PROJECT
1 2 7 4 5 8 3 6
I
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I _
SLIIOOE BLENOINL/STOAAOE LIMEAOOITION CENTAIf116EOEWATEAINO NIILTICLE HEAQTH AIQE0111RION SLSSEISNVL ASHHANNLINCAND EMEAOENOYS E
SYSTEM NANALES E9NT0.0L ALTAOFIT LOADOOT .-UT
2
CENTRAL SAN
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December 10, 2019 Special EOPS Committee Meeting Agenda Packet- Page 6 of 18
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PROJECT STATUS
• Key equipment pre-selected KEY EQUIPMENT PRE-SELECTED
at 12-20-18 Board meeting.
• Received 90%Design r
Submittal on 11/25/19, ca„ftfhgesial —Wc!4 =
includes 700 drawings and �alio�u
pages of technical
T-
1,700 "°'°��'
from schwing
specifications. cakeNnnps(4)
Air P*
-
• Completed Request for
• irfkpuYon
Proposal(RFP)for third- cwwi —
party contract documents L
om
review and construction Inc.
management(CM)services.
Vlde,mm pv,nmtnr X..:D,n N.,rn
3
PROJECT SCHEDULE
• Send a State Revolving Fund
Application update to the State
before 12/31/2019.
• Complete a third-party contract �•
documents review by MWH
Constructors(MWH)for CM
services by March 2020.
Schedule general• and electrical subcontractor
informational workshops for
r
early January 2020.
• Pre-qualify general contractors
and electrical subcontractors
by February 2020.
• Complete final contract
L
ments to be ready foring by end of March 2020.
ate Board and requestorization to advertise—
2020. -- -- —
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December 10, 2019 Special EOPS Committee Meeting Agenda Packet- Page 7 of 18
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SOLIDS PROJECT SITE AND STAGING AREAS
R
?�'•'�� Fume •�i
H'"Zr Ash L0.3tl61I1
P:� y B0.4jir:n
CENTRALSAN
ANTICIPATED DESIGN AND CONSTRUCTION
SCHEDULE
Equipment Pre-Selection
Final Design
Constructability Review
by CM and Contractor IIS
Pre-Selection
Bid and Award Phase
Construction
CM Services
IJ luipment Pre-Selection:January 2018—September 2018
Final Design Phase:May 2018—March 2020
Constructability Review by CM and Pre-Selection of Contractor:December 2019—March 2020
Bid&Construction Phase:April 2020—December 2023
Construction will require careful coordination with Operations and Maintenance .CENTRALSAN
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December 10, 2019 Special EOPS Committee Meeting Agenda Packet- Page 8 of 18
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ANTICIPATED CASH FLOW FOR PROJECT
FORECASTED OVER THE NEXT FIVE YEARS AS OF
DECEMBER 20, 2018
$30 M
FY 19-20 Budget
$25M — for DP 7348:
$93.4M*
$20 M - -
■rngin—Wr Pmliml—y oespnlOEx Testirg
•Cenvd San Manage.en[
$15 M ■[o�:vi�<ne:ioN��svua�+M�,owmeM
■[ennrueden
$10 M
■[vuw�•M ra�,c,�wt
$5 M
0
0
o FYfi]718 FY20FB•19 FT1019.]U FY?onF71 FY]�]F•]7 FYtOQl•79
* Revised Total Project Cost Estimate is$120-130M**
**SRF Loan is estimated up to$99M to fund part of the project `J,
CENTRALSAN
RUil
_ II
• CM will manage construction project while Central San stafffocuses on project impact to daily
operations and maintenance.
• Identify cost efficiencies throughout the project from a constructor's point of view.
• Help identify and mitigate project risks.
• Provides daily input related to contractor's schedule and view as well as changed management.
• Tracks SRF loan required documentation.
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December 10, 2019 Special EOPS Committee Meeting Agenda Packet- Page 9 of 18
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PROJECT CONSTRUCTION ORGANIZATIONAL CHART
CENTRAL SAN PROJECT
MANAGEMENTTEAM
• Coordinate with Central San staff
and all parties
• Manage project budgets
• Approve progress payments,
invoices,change orders(COs),etc.
• Major decision maker
CENTRAL SAN CONSTRUCTION MANAGEMENT DESIGN ENGINEERS
O&M STAFF (MWH Constructors) Services During
• Construction
Construction Management
• Review and Daily Inspection (B&V)
implement CONTRACTOR --- Document tracking __
Revshutdowns (submittals,Request for Answer submittals
IFI
• Operating and Information(RFI),COs,DIRs) AnsweStartup support
Maintenance of Safety oversight
• Design clarifications
Solids Bldg. Point of contact with Review Final O&M
Processes Contractor
manuals and asset
• Commissioning Progress meetings information
• Review payments Produce electronic
• Manage and review project's record drawings
schedule
• Coordinate shutdowns
• Specialty inspection
(Electrical or others) _
• Commissioning �l
• Manage project closeout
CM SELECTION PROCESS
• Staff issued a formal RFP on September 9, 2019 to provide
third-party construction management that would include pre-bid
services, construction management, inspection, special
inspection, and other related services.
• Central San received proposals from eight CM firms: 41-eaf,
Inc., Carollo Engineers, CDM Smith (CDM), Consolidated CM,
HDR, Inc. (HDR), K&B Construction Inspection Services, Inc.,
Kennedy Jenks, and MWH. Black &Veatch Corporation (B&V)
was not allowed to submit, as it would be a conflict of interest to
perform construction management on their own design.
• After reviewing the proposals and conducting interviews of the
top four ranking firms (Carollo Engineers, CDM, HDR, and
MWH), staff selected MWH for this project. MWH is a national
construction firm and with their involvement as CM, they will be
not be able to bid on the construction project.
` io
CENTRAL SAN
5
December 10, 2019 Special EOPS Committee Meeting Agenda Packet- Page 10 of 18
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WHY MWH
tME CONSTRUCTORS?
.IIF ui� l
n �
• With over 700 sheets of drawings and over 1,700
■, pages of technical specifications,staff needs additional
support and MWH has the experienced staff to help.
One specific tool that MWH employs in their
constructability review is to build a time lapse 3-
dimensional(31D)computer drafting model for the
construction progression.Using B&V's 3D design
model and construction schedule,MWH will analyze
the sequence of construction to detect clashes and
- identify potential construction sequence issues.
+� MWH will also review the engineer's estimate and
provide a second opinion from a contractor's point of
view.
fi-
i
ry�* 11
Introducing Constructors
MWH TODAY CMc by the Numbers
• 20%'Owned by Senior Leadership lM%.up
• In excess of$1 B Bonding (exclusive of SFPUC a,nt°^0W$2 B in Wet tore Cape al
$1B project) mp o.emen[p ajeds
• Staff of 2,200+ years delirenng co.0m construcnan
fJver management elfPerlM1[e
• Stand-Alone Global Construction and CM
10 water/wasaerrater
Services Company aI rnta CM Team Treatment Plant New
ENR an.
Expanslan contracts rn
QWastewater T-1-1 Plants /// the Past SVears
��
MWH
W Sewerage&So[�tl Waste Partnere ���d� n[Wa[er(Was[ewater
OCONSTRUCTORS®Water Te Inn nt&De I.nati-Ptante with mo re than cheaa In Laldornla
®Water Transmission Lines
N Building a Better World 0 Water sopPiy
60 CMSwater Focused Profass,onals
based in LaVarnia
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DIGITAL DELIVERY TO SUPPORT SCHEDULE, COST AND
CONSTRUCTABILITY REVIEWS
Construction BIM Project Review
Critical LSuLce
q
...............
L-----
INPUT
INPUT FROM DESIGN BIM MANAGE AND AS-BUILT INTEGRATION
AND SCHEDULE TEAMS COORDINATE [Enhanced with Mobile and Reality Capture]
13
STAFF RECOMMENDATION
Staff recommends that the Board authorize the General
Manager to execute a professional engineering services
agreement with MWH Constructors in an amount not to
exceed $400,000 for constructability review and related
pre-bid services for the Solids Handling Facility
Improvements, District Project 7348.
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QUESTIONS?
15
CENTRALSAN
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