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HomeMy WebLinkAbout07. Award contract for Outfall Improvements (Phase 7), DP 7353 Page 1 of 15 Item 7. CENTRAL SAN BOARD OF DIRECTORS POSITION PAPER MEETING DATE: APRIL 16, 2020 SUBJECT: AWARD A CONSTRUCTION CONTRACT IN THE AMOUNT OF $4,447,000 TO POWER ENGINEERING CONSTRUCTION COMPANY, THE LOWEST RESPONSIVE BIDDER FOR THE OUTFALL IMPROVEMENTS - PHASE 7, DISTRICT PROJECT 7353; AUTHORIZE UP TO A 15-PERCENT CONTINGENCY; AND AUTHORIZE THE GENERAL MANAGER TO TRANSFER $700,000 WITHIN THE CAPITAL IMPROVEMENT BUDGET SUBMITTED BY: INITIATING DEPARTMENT: MARK WENSLAWSKI, ASSOCIATE ENGINEERING AND TECHNICAL SERVICES- ENGINEER CAPITAL PROJECTS REVIEWED BY: RITA CHENG, ASSOCIATE ENGINEER NATHAN HODGES, SENIOR ENGINEER EDGAR J. LOPEZ, CAPITAL PROJECTS DIVISION MANAGER JEAN-MARC PETIT, DIRECTOR OF ENGINEERING AND TECHNICAL SERVICES Roger S. Bailey Kenton L. Alm General Manager District Counsel ISSUE The Board of Directors (Board) must award the contract or reject bids within 50 days of the bid opening. Authorization is required for the General Manager to execute the Contract Documents subject to submittal requirements, include up to a 15-percent contract contingency, and transfer funds above $500,000 in the Capital Improvement Budget (CI B). April 16, 2020 Regular Board Meeting Agenda Packet- Page 80 of 208 Page 2 of 15 BACKGROUND During normal operation, Central San discharges treated effluent to Suisun Bay through the 72-inch diameter reinforced concrete pipeline, referred to as the outfall. Constructed in 1958, the outfall runs primarily underground for nearly 19,000 feet, including a submarine section close to 1,700 feet in length. The outfall has approximately 1,500 joints and 23 steel manhole risers on the land portion. The submarine section extends from the shoreline edge into the Suisun Bay and consists of 11 diffusers and three manhole access structures that rise above the water surface, which are used to identify the location of the submerged manholes and provide a working maintenance platform. Every five to ten years, Central San drains the outfall, verifies the alignment, assesses the physical integrity of the pipe joint seals, and makes any necessary repairs. Inspections and repairs of the outfall started around 1985 under the original Outfall Improvements - Phase 1 project. Central San has conducted six project phases prior to the Outfall Improvements - Phase 7, District Project 7353 (Outfall Phase 7). As part of the last Outfall Improvements - Phase 6 project in 2012, the outfall was dewatered, inspected, repaired, and surveyed. Over 1,500 pipe joint seals were inspected, 368 joints were repaired with new seals, and ballast rocks were deployed in Suisun Bay to stabilize the submarine section of the outfall. Of the total 1,500 joints, approximately 950 joints have been repaired since the construction of the outfall. In 2017, Central San hired divers to perform an external inspection of the submarine diffuser lines and wooden manhole access structures straddling the outfall pipeline. The 11 diffusers and the piles were all found to be in good working condition; however, some of the braces, platforms, and ladders on the manhole structures are missing or in need of immediate repair to ensure structural integrity. I n July 2019, corrosion consultants conducted a condition assessment of the manhole risers on the land portion of the outfall and found moderate to high corrosion on many of the risers. The consultants recommended installation of galvanic anodes and test stations, as well as a new anti-corrosive coating system on the manhole risers, to ensure the structural integrity of the manhole risers and prevent future leaks. The National Pollutant Discharge Elimination System (NPDES) Permit CA0037648, Order No. R2-2017- 0009 (Permit) requires Central San to properly operate and maintain its outfall. The NPDES Permit states that"Central San plans to conduct an outfall inspection and necessary repairs during the current permit cycle" (referenced in Attachment F, Section 11.b. of the Permit), which expires in May 2022. As part of the Outfall Phase 7 project, the land portion of the outfall will be inspected and assessed. During the inspection, the contractor will retest the pipe joints in a similar fashion to the work performed in the past, make any repairs, and install newjoint seals, as necessary. Repairs on the three wooden trestle structures over the submarine section will be performed. Galvanic anodes and test stations will be installed at each of the 23 outfall steel manhole risers for corrosion control. The outfall will be surveyed internally to monitor and verify its alignment as compared to past surveys. The outfall is bedded in Bay mud soil, a condition that could subject the pipe to potential settlement and movement. The Outfall Phase 7 project will also include seismic improvements to the 9000 Structure (a concrete valve box structure used to divert flow to the Filter Plant and/or to Suisun Bay), replacement of two 60-inch diameter valves on the outfall, installation of a new access manhole at the treatment plant, and replacement of two large standby effluent valves in the Pump and Blower Building.A project map is shown in Attachment 1. During the six-month construction period, treated effluent will be diverted to the holding basin for discharge to Lower Walnut Creek via the wet weather bypass Weir Structure at the treatment plant, in accordance with all applicable permits. The latest 2017 NPDES Permit includes a provision to use the wet weather bypass structure that was constructed in 2011 for outfall maintenance and repairs. Central San is required to comply with bypass monitoring under the Outfall projects. Staff worked with the Regional Water Resource Board to ensure these provisions were included in the Permit in anticipation of maintenance work on the outfall during the permit term. April 16, 2020 Regular Board Meeting Agenda Packet- Page 81 of 208 Page 3 of 15 Staff has been coordinating and working with various regulatory agencies under this project, including the San Francisco Bay Regional Water Control Board, United States Army Corps of Engineers, San Francisco Bay Conservation and Development Commission, California Department of Fish and Wildlife, and other agencies. These permits include restrictions associated with impacts avoidance and minimization to protect sensitive species, limiting the construction window to the dry weather season, and biological monitoring surveys before and during construction. Central San staff, with assistance from Complete Project Solutions, prepared the project specification documents. The Engineer's estimate for construction was $4,000,000. This Project was advertised on January 31 and February 6, 2020. Two sealed bids, $4,447,000 and $5,286,683, were received and publicly opened on March 3, 2020. The Capital Projects Division conducted a technical and commercial review of the bids and determined that Power Engineering Construction Company(Power Engineering) is the lowest responsive and responsible bidder with a bid amount of$4,447,000. The low bid was approximately 11 percent above the Engineer's estimate. Staff evaluated the low bid and determined that, in general, almost every item was slightly above the Engineer's estimate, which accounted for six percent of the difference with the remaining five percent due to bypass pumping and specialty coating costs. The second low bidder had similar costs, except for a$700,000 mobilization cost since that contractor is from Southern California. Based on this information, staff believes that the costs presented in the low bid are reasonable and justified. Power Engineering is familiar with the scope of work due to their experience successfully completing the Outfall Improvements - Phase 5 project in 2003.A summary of bids received is shown in Attachment 2. Central San staff will administer the construction contract and provide contract management and administration. Construction inspection will be performed by one of Central San's existing consultant inspection as-needed agreements. Central San will continue services with Zentner Planning and Ecology for environmental consulting services. Coronavirus COVID-19 Impact: On March 31, 2020, Contra Costa County Health Services (County) issued a shelter-in-place order(HO- COVI D19-03)that is in effect until May 3, 2020. Assuming the Board awards this construction contract at the April 16, 2020 meeting, construction field activities are tentatively expected to start in July/August and be completed by January of 2021. The main focus of the project consists of dewatering and performing outfall pipe joint and manhole repairs. These tasks must be completed by the end of October 2020 due to the bypass permitting and contract milestones. Other activities included in the scope of the project do not have permitting restrictions. Staff has reviewed Power Engineering's proposed schedule and has discussed in detail with the contractor the guidance provided by the County and State, as related to COVI D-19, and potential schedule changes.At this time, staff and the contractor do not anticipate any significant changes since the outfall outage and related construction can be completed in three months as proven by other Outfall phases and is clearly specified in the construction contract milestones. The remaining work can be completed when the outfall is back in service. Staff has sent a letter to Power Engineering informing them of the COVI D-19 restrictions. I n a written response, the president of Power Engineering has agreed that his company would be willing and able to perform the contract under a two-step Notice to Proceed (NTP) approach. The first NTP will authorize shop drawing preparation and procurement of the equipment and materials necessary for the project. No mobilization will be allowed under the first NTP. The second NTP will allow the contractor to mobilize for construction, which would start the contractual completion time of 170 calendar days. Staff anticipates issuing the second NTP by late July or early August. Staff recommends proceeding with Outfall Phase 7 now as it is an essential infrastructure for reliable operations and maintenance of the outfall. April 16, 2020 Regular Board Meeting Agenda Packet- Page 82 of 208 Page 4 of 15 CEQA At the November 7, 2019 meeting, the Board independently found this project to be exempt from the California Environment Quality Act (CEQA) under CEQA Guidelines Section 15301.A Notice of Exemption was filed with the Contra Costa County Clerk on November 8, 2019. ALTERNATIVES/CONSIDERATIONS Alternatives to this project, such as deferment or reduction of project scope, are not recommended by staff because proper maintenance of the outfall is required by the NPDES Permit and it is critical to operations.A reduced scope (i.e., removing the seismic and large critical valves replacement) could pose higher operational and regulatory risks, which could lead to more costly repairs in the future. This alternative is not recommended. The Board may elect to reject all bids and provide another alternative, which is not recommended. Rebidding the project would postpone the construction to next summer and would unlikely result in any cost savings. Staff contacted several contractors that were on the plan holder's list to determine why Central San only received two bids. Most contractors stated that the project work was very specialized and not appealing under low bid conditions. Postponing Outfall Phase 7 will have a significant cascading effect on the capital improvement Treatment Plant Program. This would impact construction timing on several critical projects, such as the Influent Pump Electrical Improvements. The sequencing of these projects is predicated on first completing Outfall Phase 7. These critical projects will address equipment that has already passed their expected useful life and it is not recommended to further defer their replacement, including the critical valves on the outfall. Therefore, this alternative is not recommended. FINANCIAL IMPACTS The total estimated project cost is $6,200,000, which includes planning, design, construction contract, contingency, and construction management as shown in Attachment 3. The Outfall Phase 7 is included in the Fiscal Year(FY)2019-20 Cl B on page 186 with an estimated total project budget of$5,500,000. Accordingly, an additional $700,000 is required to fund the project. To do so, staff recommends a transfer of$380,000 from Danville Sewer Renovations, Phase 3, since that project was bid under the total project estimate. The remainder of the necessary funding, $320,000, is anticipated to be transferred from other capital projects this year as resources are identified, and through project close out savings. Financial Impact Table: Amount 0 Funds budgeted this FY 2019-20 for this Project $ 5,500,000 ❑ Funds taken from current FY 2019-20 Cl B contingency $ 0 Funds transferred from current FY 2019-20 projects: 0 a. Updated forecast; estimated savings from project available: Danville Sewer Renovations, Phase 3, District Project 8456 $ 380,000 ❑ b.Acceleration of funds for project that is budgeted in future year $ 0 ❑ c. Combined project scope forbidding purposes: DP $ 0 0 d. Potential future year budget impact (May be mitigated through (1) savings from close-outs of current year projects; (2) re-prioritizing future year projects; (3) cost savings on future year projects) $ 320,000 Total Cost $ 6,200,000 April 16, 2020 Regular Board Meeting Agenda Packet- Page 83 of 208 Page 5 of 15 COMMITTEE RECOMMENDATION The Engineering and Operations Committee reviewed this matter at the March 17, 2020 meeting and recommended approval. It should be noted that the Committee meeting took place on March 17, the date of the first shelter-in-place order issued by Contra Costa County Health Services. The second order, issued on March 31, contained more restrictive language regarding allowable projects. As stated above, staff recommends that the Outfall Phase 7 project be determined as an "essential infrastructure" which requires necessary operations, maintenance and repairs, and serves an essential governmental function. RECOMMENDED BOARD ACTION Staff recommends the following: 1. Award a construction contract in the amount of $4,447,000 to Power Engineering Construction Company, the lowest responsive bidder for the Outfall Improvements - Phase 7, District Project 7353; 2. Authorize the General Manager to execute Contract Documents subject to submittal requirements and include up to a 15-percent contingency; and 3. Authorize the General Manager to transfer$700,000 within the Capital Improvement Budget. Strategic Plan re-In GOAL ONE: Provide Exceptional Customer Service Strategy 3- Maintain a strong reputation in the community 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 GOAL FOUR: Develop and retain a highly trained and innovative workforce Strategy 3- Meet or exceed industry safety standards GOAL FIVE: Maintain a Reliable Infrastructure Strategy 1 - Manage assets optimally throughout their lifecycle ATTACHMENTS: 1. Project Location Map 2. Summary of Bids 3. Post Bid/P reconstruction Estimate 4. Presentation April 16, 2020 Regular Board Meeting Agenda Packet- Page 84 of 208 Page 6 of 15 \For Continuation, See N 1 Attachment 1 b o zoo aoo FEET ` Q o PROJECT AREA 4 at¢` PROJECT AREA 2 % `apt FdFo<¢bay %�°F � � O ' iMNoff 00, ' PROJECT AREA 3 ; Existing 72" Outfall Line � O ° CS 1 O ' O PROJECT AREA 1 HHWCgwALN X09' 4 °ga�;d��g ayo� Ware HOB Ppp •J Annex NpB • Se as Attachment Y CENTRAL SAN OUTFALL IMPROVEMENTS - PHASE 7 ' District Project 7353 la Project Location N Page 7 of 15 SUBMARINE WEIR STRUCTURE N PORTION OF OUTFALL 0 1000 2000 ` FEET r r r D r r , RpP q< _ rr�rr ON, WATERER n �a s8p MANHOLE RISER (TYP) s- l ti O r �11 _ 3 r7 i N r7 WE- OE 1 �vE NE DR TREATMENT PLANT iM PROPERTY ' LEGEND `° a • MANHOLE OR ACCESS HATCH I O CENTRAL SAN OUTFALL IMPROVEMENTS - PHASE 7 Attachment ' District Project 7353 1 b Project Location nrd N O - Page 8 of 15 ATTACHMENT 2 OUTFALL IMPROVEMENTS - PHASE 7 DISTRICT PROJECT 7353 SUMMARY OF BIDS PROJECT NO.: 7353 NO. OF ADDENDA: 0 DATE/TIME: MARCH 3, 2020/2:00 PM PROJECT NAME: OUTFALL IMPROVEMENTS - PHASE 7 PROJECT MANAGER: MARK WENSLAWSKI PROJECT LOCATION: 5019 IMHOFF PLACE, MARTINEZ, CALIFORNIA ENGINEER'S ESTIMATE: $4,000,000 NO. BIDDER BID PRICE 1 Power Engineering Construction Company $4,447,000 Alameda, California 2 ABHE & Svoboda, Inc. $5,286,683 Alpine, California BIDS OPENED BY /s/Katie Young DATE: March 3, 2020 April 16, 2020 Regular Board Meeting Agenda Packet- Page 87 of 208 Page 9 of 15 ATTACHMENT 3 OUTFALL IMPROVEMENTS - PHASE 7 DISTRICT PROJECT 7353 POST-BID/PRECONSTRUCTION ESTIMATE No. Item Description Amounts Construction Cost 1 CONSTRUCTION a. Construction Contract $4,447,000 b. 15% Contingency $643,000 c. Permits $100,000 SUBTOTAL - CONSTRUCTION COST $5,190,000 100% 2 CONSTRUCTION MANAGEMENT a. District Forces - Construction Management (includes survey) $350,000 - Operations Support $100,000 b. Consultants - Engineering Support During Construction $60,000 - Inspection $150,000 SUBTOTAL - CONSTRUCTION MANAGEMENT $660,000 13% 3 PREBID EXPENDITURES a. Staff Engineering and Operations $350,000 SUBTOTAL - PREBID EXPENDITURES $350,000 7% 4 TOTAL ESTIMATED CONSTRUCTION COST $6,200,000 April 16, 2020 Regular Board Meeting Agenda Packet- Page 88 of 208 ATTACHMENT 4 Item 7. (Updated Presentation) OUTFALL IMPROVEMENTS - PHASE 7 DISTRICT PROJECT 7353 Board Meeting April 16, 2020 Jean-Marc H. Petit, P.E. Director of Engineering and Technical Services Edgar J. Lopez, P.E. Capital Projects Division Manager 1 UPDATE SINCE MARCH 17, 2020 ENGINEERING & OPERATION (E&O) COMMITTEE MEETING • Bid Open on March 3, 2020 • E&O Committee on March 17, 2020 • Questions at E&O to Staff: F—r Contact RWQCB and discuss NPDES permit constraints and requirements in U light of COVID-19? • Contact Apparent Low Bidder Contractor to discuss response to COVID-19? • Board Meeting on April 16, 2020 • Staff recommend award to Power Engineering V d&ML2 CENTRALSAN1 Did we speak to the RWQCB about a delay in the NPDES permit • Yes,we did speak to RWQCB since E&O. Our permit manager when contacted by Lori Schectel (Environmental and Regulatory Compliance Manager)stated that the timing of the Outfall repair is up to Central San. There are no specific requirements for the Outfall to be repaired this summer(only that we notify and get approval 10 days before proceeding with the Project—and we sought and received this approval in December 2019). • Our current NPDES permit fact sheet(Page F6)describes that the Discharger(Central San) inspects and repairs its Outfall about every 5-10 years and that Central San has scheduled an inspection and repair during this permit cycle ending May 31,2022.This was last done in 2012. The permit doesn't specifically require that the Outfall be repaired. The permit language does refer to required maintenance by Discharger."C.Discharge at Discharge Point No.001 is prohibited when treated wastewater does not receive an initial dilution of at least 44:1 under chronic conditions,as modeled.Compliance shall be achieved by proper operation and maintenance of the discharge outfall to ensure that it for its replacement, in whole or part)is in good working order and is consistent with,or can achieve better mixing than,that described in Fact Sheet section IV.C.4.a.The Discharger shall address measures taken to ensure this in its application for permit reissuance." • Most of the references to the Outfall in our NPDES permit relate to terms of the diversion of discharge and associated monitoring requirements and,which Central San negotiated during our NPDES permit renewal in 2017 to ensure efficiency when we start the Project. This allows the se of the Wet Weather Bypass Structure to Discharge in Walnut Creek. 3 OUTFALL IMPROVEMENTS - PHASE 7 OFF SITE • Outfall to Suisun Bay consists of 3.5 miles of 72-inch m diameter reinforced concrete pipe constructed in 1957-58 Wet Weather • Pipe consists of 1,500 joints p 1 4: Structure is outlined in the • Need to dewater pipeline to National allow access for inspections Pollutant Discharge and repairs inside the pipeline Elimination System • Main repairs consist of (NPDES) 7,:_ Permit as installing joint seals and "Deepwater ti repairing corrosion of steel / �. Outfall Bypass Requirements' risers Lvalves MHS) Inspecr . ReleasARVs) Ce4lRAL0 c N GWFALL IMPROVMEHTS-PHASET mwwt PnlwY T 3 1b ' P�oN[t Loudon CENTRALSAN 4 2 OUTFALL IMPROVEMENTS - PHASE 7 PROJECT 3if On Site scope of _ project elements '0 ba MULTIPLE PROJECT ELEMENTS AND SCOPE a o 1.Outfall Inspection and 2.Outfall Inspection and 3.Structure 9000 Structural Repairs Offsite Repairs At Treatment Plant Site Reinforcements t 11 .9 r. CBfnLLYN nm.�..u.c.eue.n,.ewne� -- 7- .. .Y .Installations(23)and ARVs(14) Bay(3 areas) . 4.Manholes Anode Risers 5.Marine Trestle Repairs Suisun 6 '111 6 3 BACKGROUND OUTFALL IMPROVEMENTS PROJECT PHASES i Note 3 d d L L L a a a La d 1985 1988 1998 1999 2003 2012 ao 2013 Order No. Order No. 1' 2-2012-0016 R2-2017-0009 Notes: NPDES No.CA0037648, NPDES No. 1. Wet weather bypass structure constructed by FY 2011-12 April 1,2012 CA0037648, 2. Leakage over outfall reported by Central San to SFRWQCB June 1,2017 3. Last inspection of the outfall in 2012 during Phase 6 Expires May 31,2022 4. Use of wet weather bypass structure included in 2017 NPDES Note a SFRWQCB:San Francisco Regional Water Quality Control Board ' 7 BID RESULTS 0UTFALLIMPROVEMENTS-PHASE 7 DISTRICT PROJECT 7353 SUMMARY OF BIDS PROJECT NO.: 7353 NO.OF ADDENDA:0 DATEFnME:MARCH 3,202012:00 PM PROJECT NAME: OUTFALL IMPROVEMENTS-PHASE 7 PROJECT MANAGER: MARK WENSLAWSKI PROJECT LOCATION: 5019 IMHOF F PLACE MARTINEZ CALIFORNIA ENGINEER'SESTIMATE S4001).00a NO. BIDDER BID PRICE f Power Engineering Construction Company $4,447,000 Alameda,California 2 ABHE&Svoboda,Inc. $5,286,683 Alpine,California CENTRALSAN ' s 4 RESPONSE TO COVID-19 IMPACT On March 30,2020,staff sent a letter to Power Engineering Construction Company (Power Engineering),which stated: • Project may be conditionally awarded with a two-step Notice to Proceed(NTP)approach: • Notice of Award on April 16,2020 would be conditional on a two-step NTP. • Step 1:Issue an initial NTP authorizing Power Engineering to continue administrative and preconstruction activities,including all shop drawing submittals and material procurement.This first NTP will not begin the 170 calendar days for completion. • Step 2:The second NTP will authorize Power Engineering to mobilize for construction as stated in the contract documents.(Staff anticipates issuing the second NTP by late July or early August.) • The president of Power Engineering has acknowledged and agreed to the two-step NTP approach in writing. • On March 31,2020,Contra Costa County Health Services issued a shelter-in-place order that is in effect until May 3,2020.Only Essential Government Functions and Critical Infrastructure projects are allowed,as determined by the Governing Body. • Pending Board award of this construction contract on April 16,2020,construction field activities are tentatively expected to start in July/August 2020 and be completed by January 2021.The dewatering and outfall repairs must be completed by mid October 2020 due to the bypass permitting and contract milestones.Other scope items are not subject to permitting restrictions. • Staff recommends proceeding with the Outfall Improvements-Phase 7 project(Outfall Phase 7) ow as it is an essential infrastructure for reliable operations and maintenance of the outfall. I; 9 TOTAL ESTIMATED PROJECT COSTS ❑UTFA LL I MPROVEMENTS-PHASE 7 DISTRICT PROJECT 7358 POST-B I MPRECONSTRUCTION ESTIMATE No, Item Description Amounts Construction Cost 5 CONSTRUCTION a.Construolion Contract $4,447,000 b.15%Contingency 5643,000 c.Permits 5500,000 SUBTOTAL-CONSTRUCTION COST $5,1913,000 100% 2 CONSTRUCTION MANAGEMENT a.District Forces -Constnxtion Management(includes survey) $350.00 -Operations Support $100,000 A-Consumanls -Engineering Support Ounng Construction $60,000 -Inspection $150,000 SUBTOTAL-CONSTRUCTION MANAGEMENT $660,000 13% 3 PREBID EXPENDITURESa.Staff Engineering and Operations $350,000 SUBTOTAL-PR EBI D ExPENDITU RES $350,000 7% 4 TOTAL ESTIMATED CONSTRUCTION COST $6,200,006 ' m s. t- CENTRALSAN 5 FINANCIAL IMPACT Financial Impact Table: Amount u Funds budgeted this FY 2019-20 for this Project $5,500,000 ❑ Funds taken from current FY 2019 20 C I B contingency $0 Funds transferred from current FY 2019-20 projeets: ❑D a.Updated forecast;estimated savirig s from project available: Danville Sewer Renovations,Phase 3,District Project 8456 $380,000 ❑ h.Acceleration of funds for project that is budgeted in future year $0 ❑ c.Combined projectscope for bidding purposes:DP $0 © d.Petential future year budget impact (May be mitigated through(1)savings from close-outs of current year projects;(2)re-prioritizirig future year projects;(3)cost savings on future year projects] $320,000 Total Cost $6,200,000 11 ALTERNATIVE CONSIDERATIONS Staff does not recommend the following alternatives: • Deferment or reduction of project scope would impact proper maintenance of the outfall,which is required by the NPDES Permit and is critical to operations.A reduced scope could pose higher operational and regulatory risks,which could lead to more costly repairs in the future. • Relect all bids. Rebidding the project would postpone the construction to next summer and would unlikely result in any cost savings. Staff contacted several contractors on the plan holder's list to determine why Central San only received two bids. Most contractors stated that the project work was very specialized and not appealing under low bid conditions. • Postpone Outfall Phase 7.This would have a significant cascading effect on the capital improvement Treatment Plant Program, and would impact construction timing on several critical projects, such as the Influent Pump Electrical Improvements.The sequencing of these projects is predicated on first completing Outfall Phase 7, as they both rely on the use of wet weather basins. These critical projects will address equipment that already has passed their expected useful life and is not recommended to further defer their replacement, including the critical valves on the outfall. ' ,2 ,cCENTRALSAN - 12 6 POTENTIAL RISK AND IMPLICATIONS OF POSTPONING THE PROJECT • Next two summers,the Influent Pump Electrical Improvements project is scheduled to be in construction.That project is critical to Operations and will replace all the VFDs and include various shutdowns of pumps and wetwells. Staff does not recommend delaying that project since two of the five VFDs have already experienced failures, and are beyond their useful life. So that could be postpone the Outfall Project for up to three years (2023)or later. • Last outfall phase was completed in 2012 • Over 60%of the Outfall joints have been repaired since the mid- 1980's. Outfall is in Bay Mud and susceptible to moving which impact the 1,500 joints—Potential in leaks • Need to conduct internal inspection of steel risers and possible repairs, which are corroding. • Critical valves and actuators can only be replaced during a outfall outage. • Valves control the diversion of final effluent so it can be hydraulically k lifted into the ForeBays to supply the recycle water filter plant. > All the permits would have to be redone. Significant staff time CENTRALSAN STAFF RECOMMENDATIONS Staff recommends the following: Award a construction contract in the amount of$4,447,000 for the construction of for the Outfall Improvements - Phase 7, District Project 7353, to Power Engineering Construction Company, the lowest responsive bidder; Authorize the General Manager to execute Contract Documents subject to submittal requirements and include up to a 15-percent contingency; and Authorize the General Manager to transfer $700,000 within the Capital Improvement Program. - �.,4 7 QUESTIONS Aog " CENTRALSAN s