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HomeMy WebLinkAbout07. Award contract for the Filter Plant & Clearwell Improvements, Ph. 1A, DP 7361 Page 1 of 8 Item 7. CENTRAL SAN BOARD OF DIRECTORS POSITION PAPER MEETING DATE: AUGUST 20, 2020 SUBJECT: AWARD A CONSTRUCTION CONTRACT IN THE AMOUNT OF $26,584,000 TO C. OVERAA & COMPANY, THE LOWEST RESPONSIVE BIDDER FOR THE FILTER PLANTAND CLEARWELL IMPROVEMENTS, PHASE 1A, DISTRICT PROJECT 7361; FIND THATTHE PROJECT IS EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITYACT (CEQA); AND AUTHORIZE THE GENERAL MANAGER TO: (1)AMEND AN EXISTING AGREEMENT WITH STANTEC CONSULTING SERVICES, INC. IN AN AMOUNT NOT TO EXCEED $1,300,000 FOR ENGINEERING SERVICES DURING CONSTRUCTION, AND (2) EXECUTE A PROFESSIONAL ENGINEERING SERVICES AGREEMENT I N AN AMOUNT NOTTO EXCEED $2,100,000 WITH MWH CONSTRUCTORS, INC. FOR CONSTRUCTION MANAGEMENT SERVICES SUBMITTED BY: INITIATING DEPARTMENT: CHATHURAABEYRATHNA, ASSOCIATE ENGINEERING AND TECHNICAL SERVICES- ENGINEER CAPITAL PROJECTS REVIEWED BY: CRAIG MIZUTANI, SENIOR ENGINEER EDGAR J. LOPEZ, CAPITAL PROJECTS DIVISION MANAGER JEAN-MARC PETIT, DIRECTOR OF ENGINEERING AND TECHNICAL SERVICES Roger S. Bailey General Manager 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 and to execute professional engineering services agreements over the amount of$200,000. August 20, 2020 Regular Board Meeting Agenda Packet- Page 50 of 200 Page 2 of 8 BACKGROUND Coronavirus (COVID-19) Impact: The Filter Plant and Clearwell Improvements, Phase 1A, District Project 7361 (Project), is expected to start field construction activities this year and be completed by October of 2022. The construction contract for this Project includes provisions and costs to mitigate and prevent the spread of COVI D-19, which includes handwash stations, personal protective equipment, and other safety items or practices recommended by the State Occupational Safety and Health Administration and guidelines from the Contra Costa County Health Services. History and Project Approach with Future Recycled Water Projects: Central San's recycled water facilities have provided a reliable supply of recycled water to its wastewater treatment plant (plant) since 1977. I n the mid-1990s, Central San modified these facilities to produce California Title 22 Water Quality Requirements for Recycled Water(Title 22) and delivery to off-site customers in Zone 1. While Central San's plant remains the largest user of recycled water, some of the recycled water facilities are nearing the end of their useful lives, which is leading to reliability concerns and the need to address critical infrastructure at the Filter Plant and Clearwell (storage and distribution facilities). On May 3, 2018, the Board authorized an agreement with Stantec Consulting Services, I nc. (Stantec)to provide design services for the Filter Plant and Clearwell I mprovements. Stantec reviewed the condition of the facilities, provided disinfection alternatives, hydraulics, seismic assessment, process and automation solutions, and alternative filtration technology information. Staff and Stantec took a long-term approach on this Project and evaluated the possible impacts of future projects, including the Concord Community Reuse Project and the Water Exchange Project. When looking at possible solutions, the team evaluated Central San's immediate needs, which include the most critical items that require replacement to restore reliability, and that would not conflict with or potentially leave stranded assets when other projects are implemented like the Water Exchange Project. Several recent failures have shaped and focused staff's recommendations for the recycled water facilities. The east Clearwell cover experienced failures leading to a repair project that included decommissioning the east cell and doing improvements to allow the west cell to operate. In 2018, a high-voltage (12kV) electrical feeder from Substation 82 (Central San's main PG&E interconnection)to Substation 40 at the Filter Plant failed. Substation 40 experienced another failure in early 2019, which triggered a cascading series of events that led to a 16-minute, plant-wide power outage. These incidents reflect that, despite staff's good operation and maintenance practices, the recycled water facilities are showing signs of significant deterioration, which is starting to impact reliability. Staff recommended to divide the Filter Plant and Clearwell Improvements into three phases, with the most critical elements proceeding first, as follows: • Phase 1A (immediate replacement needs): Electrical renovation, recycled water storage tanks, Clearwell pump improvements, rehabilitation of one of the four existing filters (additive bid item), and Basin C modifications. • Phase 1 B (within five to ten years): Rehabilitation of the remaining three filters and the Filter Building, other electrical replacement, upgrades to the Applied Water Pump Station (AW PS), hydraulic improvements to bypass the Forebays, and adding a chlorine contact basin. This phase would complete the remainder of the renovations to meet the long-term needs for the plant and Zone 1 customers. • Phase 2: Improvements to provide additional recycled water supply to serve the future Concord Community Reuse Project. (Phase 2 is not included in the Fiscal Year(FY) 2020-21 Ten-Year August 20, 2020 Regular Board Meeting Agenda Packet- Page 51 of 200 Page 3 of 8 Capital Improvement Plan and budget.) Project Scope and Bidding: On October 17, 2019, the Board authorized staff to proceed with the final design of Phase 1 A. The Project focuses primarily on providing reliable recycled water storage, distribution to end users, and address deficient electrical systems. In addition, it includes rehabilitating one of the four existing filters. Soil produced from the partial demolition of the Clearwell will be used to raise the wet weather overflow Basin C embankment and its roadways which is critical for flood protection at the plant. Central San staff, with assistance from Stantec, prepared the project documents. The Engineer's estimate for construction is $31,000,000 for the base scope of work, which includes a new electrical Clearwell substation, demolition and regrading of the Clearwell, addition of two new storage tanks, recycled water pump modifications, and the Basin C improvements. Two additive bid items were included for the replacement of Filter No. 3 and electrical improvements to the Applied Water Pump Station (AW PS). The total for the additive items was estimated at$3,500,000 ($2,750,000 for Filter No. 3 and $750,000 for the AW PS). This Project was advertised on June 8 and 15, 2020. The bid documents included life cycle costs based on the selection of steel or concrete recycled water storage tanks. These life cycle costs were used to allow for more competition between the two types of structures and was recommended due to the limited pool of tank contractors for each material of construction. The life cycle costs were added to the contractor's base bid price for the purpose of award. However, the actual construction contract will include the bidder's base bid price plus any additive bid items selected by Central San. Eight sealed bids were received and publicly opened on July 29, 2020, with an adjusted base bid price ranging from $23,710,000 to $37,265,000. The Capital Projects Division conducted a technical and commercial review of the bids and determined that C. Overaa & Company(Overaa) is the lowest responsive and responsible bidder with an adjusted base bid amount of $23,710,000 as shown in Attachment 2. Staff contacted Overaa regarding the low bid amount and they confirmed that they are comfortable with their bid. Overaa is currently completing the Mechanical and Concrete Renovations, District Project 7351, and are performing well on that project. Overaa provided a base bid price of$23,070,000 and included steel tanks within their bid. The additive bid items totaled $3,514,000 and was in line with the Engineer's estimate of$3,500,000. Staff is recommending to proceed with the work and include the additive items to the construction contract. Replacing the filter will increase reliability of the Filter Plant since the existing filter is in poor condition. The AW PS pumps and electrical upgrades were initially scheduled under Phase 1 B but were reprioritized to Phase 1 A due to concerns about the condition of the variable frequency drives that are showing signs of failure and, therefore, need to be replaced sooner. Staff will recommend awarding a contract for $26,584,000, which includes the base bid price and the additive items. The bid documents notified all bidders and included specification that allowed Central San to add or not accept the additive items to the construction contract. Several strategies were evaluated and tested to optimize the filtration capabilities of the existing gravity filters. Stantec and staff tested and performed a business case analysis for the following four alternatives: 1. Continue with aluminum sulfate (alum) as the coagulant and continue to use existing media 2. Continue with alum and replace filter media to a larger particle size 3. Change to a proprietary coagulant polymer and reuse existing filter media 4. Change to a proprietary coagulant and replace filter media Under a separate study, staff evaluated a Tertiary Membrane Alternative Analysis. Preliminary evaluation indicated that while a membrane would provide higher water quality(i.e., lower solids and turbidity), the August 20, 2020 Regular Board Meeting Agenda Packet- Page 52 of 200 Page 4 of 8 capital cost would be approximately 20-percent higher than gravity filters. I n addition, the Operations and Maintenance cost is also higher due to electrical costs and replacement of the membranes. Therefore, staff recommends proceeding with the upgrade to Filter No. 3 under Phase 1A. Construction Management: Staff will oversee and coordinate the Project with the help of a construction management firm and engineering support from Stantec. Stantec was selected to provide pre-design, final design, and engineering services during construction (ESDC) under a formal Request for Proposal (RFP) in January of 2018 which included the scope and anticipated costs for the Project. ESDC includes submittal and shop drawing review, responding to contractor design questions, design clarifications, other designer support services, and support with Title 22 verification. Staff recently issued a RFP to provide third-party construction management(CM) services that would include a construction manager, inspection, specialty inspection, and start-up and commissioning services. Central San received proposals from six firms: Carollo Engineers, Inc.; Consolidated CM; EPC Consultants; HDR Engineering, Inc.; MWH Constructors, Inc.; and Psomas. Stantec 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 an interview, staff selected MWH Constructors, Inc. CEQA: Staff has concluded that this Project is exempt from CEQA under District CEQA Guidelines Section 15302, because it involves alteration of an existing sewer facility at substantially the same locations and with the same purpose and level of activity as the facilities being replaced.Approval of this Project will establish the Board's independent finding that this Project is exempt from CEQA. ALTERNATIVES/CONSIDERATIONS The Board could consider the following alternatives, which are not recommended by staff: 1. Award the base bid only($23,070,000) and reject both additive bid items (totaling $3,514,000)for the Project. Improvements to Filter No. 3 were included to address a poor performing and deficient filter at$2,715,000, and improvement to the Applied Water Pump Station at$799,000 were included to increase resiliency by replacing the variable frequency drives and pumps which are at the end of their useful life. 2. Award the base bid and any combination of the additive bid items. 3. Reject all bids, which is not recommended. This Project will address several critical infrastructure deficiencies at the Filter Plant and provide long-term storage reliability for the recycled water systems for the plant and Zone 1 customers. FINANCIAL IMPACTS The total estimated project cost is $37,998,000, which includes planning, filter piloting, design, construction contract, contingency, construction management, and consultant costs as shown in Attachment 3. The Project is included in the FY 2020-21 Budget on page 257 with an estimated total project budget of$38,589,000. The current Stantec agreement value is $3,262,000. The amendment for ESDC has been negotiated to an estimated value of$1,300,000, which will result in a new agreement value of$4,562,000. August 20, 2020 Regular Board Meeting Agenda Packet- Page 53 of 200 Page 5 of 8 COMMITTEE RECOMMENDATION The Engineering and Operations Committee reviewed this subject at the August 4, 2020 meeting and recommended approval of the project. RECOMMENDED BOARD ACTION Staff recommends the following: 1. Find that the Project is exempt from CEQA; 2. Award a construction contract, including the additive bid items, in the amount of$26,584,000 to C. Overaa & Company, the lowest responsive bidder for the construction of the Filter Plant and Clearwell I mprovements, Phase 1 A, District Project 7361; and 3. Authorize the General Manager to: a. Execute the Contract Documents subject to submittal requirements; b. Amend an existing agreement with Stantec Consulting Services I nc. in an amount not to exceed $1,300,000, increasing the cost ceiling to $4,562,000 to include engineering services during construction and Title 22 support; and c. Execute an agreement with MW H Constructors, I nc. in an amount not to exceed $2,100,000 for construction management services. Strategic Plan re-In GOAL ONE: Customer and Community Strategy 1—Deliver high-quality customer service, Strategy 2—Maintain a positive reputation GOAL TWO: Environmental Stewardship Strategy 1—Achieve 100% compliance in all regulations GOAL FOUR: Workforce Development Strategy 4—Meet or exceed industry safety standards GOAL FIVE: Infrastructure Reliability Strategy 1—Manage assets optimally to prolong their useful life, Strategy 3—Protect personnel and assets from threats and emergencies ATTACHMENTS: 1. Project Location Map 2. Summary of Bids 3. Post Bid/P reconstruction Estimate August 20, 2020 Regular Board Meeting Agenda Packet- Page 54 of 200 Page 6 of 8 ill 'I � iiP ii N 0 250 500 FEET ISI I� ill li ill 11 1 BASIN C LEVEE I,n 111 RAISE '11 II � SII 11 !11 II Basin B j 1 \ Basin C 111 1 r11 11 11 '1 11 dl 11 �1 ,I ',w!11 11 '11 11 �1I II 11 I �I 11 [Alum ;11 11 CONSTRUCTION Basin C Sludge Ponds STAGING AREA x'11 1I1 SUBSTATION 48 11 f O RECYCLED WATER II 11 o PUMP STATION jj11 11 J j CLEARWELL AND ,�11 111 RECYCLED WATER 11 STORAGE TANKS 1 11 FILTER j,1I 11 PLANT CONSTRUCTION j 1 11 I SUBSTATION 40 STAGING AREA EAPPLIED WATER II 3 ' PUMP STATION 0 D FILTERED WATER LIFT STATION 11 Basin A 11 I North 11 SUBSTATION 82 CENTML SAN FILTER PLANT AND Attachment CLEARWELL IMPROVEMENTS, PHASE 1A 1 DISTRICT PROJECT 7361 LOCATION MAP August 20, 2020 Regular Board Meeting Agenda Packet- Page 55 of 200 Page 7 of 8 ATTACHMENT 2 FILTER PLANT AND CLEARWELL IMPROVEMENTS, PHASE 1A DISTRICT PROJECT 7361 SUMMARY OF BIDS PROJECT NO.: 7361 NO. OF ADDENDA: 4 DATE/TIME: JULY 29, 2020/2:00 PM PROJECT NAME: FILTER PLANT AND CLEARWELL IMPROVEMENTS, PHASE 1A PROJECT MANAGER: CHATHURA ABEYRATHNA PROJECT LOCATION: 5019 IMHOFF PLACE, MARTINEZ, CALIFORNIA ENGINEER'S ESTIMATE: $31,000,000 (BASE BID) NO. BIDDER ADJUSTED BASE BID PRICE * BASE BID PRICE 1 C. Overaa & Company $23,710,000 $23,070,000 Richmond, CA 2 Auburn Constructors, LLC $27,374,300 $26,734,300 Sacramento, CA 3 Shimmick Construction Company, Inc. $27,640,500 $27,000,500 Suisun City, CA 4 Western Water Constructors, Inc. $28,326,600 $27,686,600 Santa Rosa, CA 5 Mountain Cascade, Inc. $29,704,905 $29,064,905 Livermore, CA 6 Steve P. Rados, Inc. $32,953,000 $32,313,000 Sacramento, CA 7 Flatiron West Inc. $34,045,000 $33,405,000 Benicia, CA 8 Balfour Beatty $37,265,000 $37,175,000 Fairfield, CA *Adjusted base bid price is the basis for award and includes life cycle costs between the steel and concrete storage tank options. BIDS OPENED BY: /s/ Katie Young DATE: July 29, 2020 at 3:00 p.m. via livestream due to COVID-19 August 20, 2020 Regular Board Meeting Agenda Packet- Page 56 of 200 Page 8 of 8 ATTACHMENT 3 FILTER PLANT AND CLEARWELL IMPROVEMENTS, PHASE 1A DISTRICT PROJECT 7361 POST-BID/PRECONSTRUCTION ESTIMATE No. Item Description Amounts Construction Cost 1 CONSTRUCTION a. Construction Contract with Additive Items $26,584,000 b. 7.5% Contingency $1,994,000 c. Title 22 Reporting &Acceptance (Stantec*) $200,000 d. Permit $100,000 SUBTOTAL- CONSTRUCTION $28,878,000 100% 2 CONSTRUCTION MANAGEMENT a. District Forces - Project Management $775,000 -Operational Support $225,000 - Regulatory Support $120,000 b. Consultants -Stantec ESDC* $1,100,000 - MWH Construction Management Services $2,100,000 - Material Testing $200,000 - Geotechnical $100,000 SUBTOTAL- CONSTRUCTION MANAGEMENT $4,620,000 16% 3 PREBID EXPENDITURES a. Engineering - Planning and Pilot Studies $2,000,000 b. Engineering - Design and Permitting $2,400,000 8% c. Permitting $100,000 SUBTOTAL- PREBID EXPENDITURES $4,500,000 16% 4 ITOTAL ESTIMATED PROJECT COSTS I 1 1 $37,998,000 *The Stantec agreement amendment will include$1.1 million for engineering services during construction (ESDC)and $200,000 for Title 22 support(listed under construction). August 20, 2020 Regular Board Meeting Agenda Packet- Page 57 of 200