HomeMy WebLinkAbout19.b. Committee Minutes - Engineering & Operations 04-20-2021 Page 1 of 16
Item 19.b.
CENTRALSAN
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CENTRAL CONTRA COSTA SANITARY DISTRICT
May 6, 2021
TO: HONORABLE BOARD OF DIRECTORS
FROM: KATIE YOUNG, SECRETARYOF THE DISTRICT
SUBJECT: APRIL 20, 2021 - ENGINEERING & OPERATIONS COMMITTEE - CHAIR
WILLIAMS AND MEMBER LAURITZEN
Attached are minutes of the above Committee meeting.
ATTACHMENTS:
1. Minutes of 04-20-21 meeting
2. (Handout) Item 5.a. Presentation from meeting
May 6, 2021 Regular Board Meeting Agenda Packet- Page 198 of 239
Page 2 of 16
CENTRAL SAN
CONTRACENTRAL • DISTRICT 5019 •
REGULAR MEETING OF THE BOARD OFDIxECToxs:
TAD J PILECKI
CENTRAL CONTRA COSTA President
ILLIAMS
SANITARY DISTRICT DAPIDR. tProTem
Tem
President Pro
ENGINEERING & OPERATIONS BARBARA D.HOCKETT
COMMITTEE MARIAH N.LAURITZEN
MICHAEL R.MCGILL
MINUTES PHONE: (925)228-9500
FAX: (925)372-0192
Tuesday, April 20, 2021 www.centralsan.org
10:00 a.m.
(All attendees participated via videoconference)
Committee:
Chair David Williams
Member Mariah Lauritzen
Guests:
Grant Carone, Carone & Company, Inc. (left after Item 5.a.)
Kim Carone, Counsel for McGuire & Hester (left after Item 5.a.)
Lloyd Carone, Carone & Company, Inc. (left after Item 5.a.)
Bruce Daseking, McGuire & Hester (left after Item 5.a.)
Mike Falk, HDR, Inc. (joined during Item 4.a., left after Item 4.b.)
Mike Hester, McGuire & Hester (left after Item 5.a.)
Holly Kennedy, HDR, Inc. (joined during Item 4.a., left after Item 4.b.)
Ray Kong, Counsel for Carone & Company, Inc. (left after Item 5.a.)
Randy Somerday, McGuire & Hester (left after Item 5.a.)
Staff.
Roger S. Bailey, General Manager (joined during Item 5.a.)
Kenton L. Alm, District Counsel
Katie Young, Secretary of the District
Phil Leiber, Director of Finance and Administration (joined during Item 5.a.)
Steve McDonald, Director of Operations
Jean-Marc Petit, Director of Engineering and Technical Services
Danea Gemmell, Planning and Development Services Division Manager
Edgar Lopez, Capital Projects Division Manager
Neil Meyer, Plant Maintenance Division Manager
Nitin Goel, Senior Engineer (left after Item 4.b.)
Nathan Hodges, Senior Engineer (left after Item 5.a.)
Sasha Mestetsky, Senior Engineer (joined during Item 5.a.)
Nate Morales, Senior Engineer
Sean Sullivan, Electrical Shop Supervisor (left after Item 5.b.)
Amelia Berumen, Provisional Assistant to the Secretary of the District
May 6, 2021 Regular Board Meeting Agenda Packet- Page 199 of 239
Page 3 of 16
Engineering & Operations Committee Minutes
April 20, 2021
Page 2
1. Notice
This meeting was held in accordance with the Brown Act as in effect under the
State Emergency Services Act, the Governor's Emergency Declaration related
to COVID-19, and the Governor's Executive Order N-29-20 issued on March
17, 2020 that allowed attendance by Board Members, District staff, and the
public to participate and conduct the meeting by teleconference,
videoconference, or both. The agenda included instructions for options in which
the public could participate in the meeting.
2. Call Meeting to Order
Chair Williams called the meeting to order at 10:00 a.m.
3. Public Comments
No public comments.
Mr. Petit requested Item 5.a. be taken out of order as the first item of business.
Chair Williams agreed and proceeded to Item 5.a.
4. Items for Committee Recommendation to Board
The following item and balance of the agenda was heard immediately after the
conclusion of Item 5.a.
a. Review draft Position Paper to authorize the General Manager to execute
a construction contract change order in the amount of $419,500 with
Mountain Cascade, Inc. to include Tier 4 emissions control equipment for
the Pump Station Upgrades, Phase 1, District Project 8436; and authorize
a budget transfer in the amount of $420,000 from the Capital Improvement
Budget Contingency
Mr. Lopez reviewed the presentation and information included in the
agenda material. He stated that the generators are a key of piece of
equipment needed for the project. With the required change by the Bay
Area Air Quality Management District (BAAQMD) to include Tier 4
emission control equipment to reduce nitrogen oxide, a major concern is
the ripple effect on the construction schedule and the contractor's work at
these sites. He stressed that time is of the essence for this decision to
move forward and to stay on schedule because the work must be
completed during the dry weather season, as stipulated in the contract
documents.
Mr. Petit discussed staff and District Counsel's parallel coordination
meetings with BAAQMD. Mr. Alm shared that BAAQMD was well
represented in the joint meeting and clearly stated their position that they
May 6, 2021 Regular Board Meeting Agenda Packet- Page 200 of 239
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Engineering & Operations Committee Minutes
April 20, 2021
Page 3
received direction from the State Board and did not have a choice to
modify their position at this point.
With their stance given, staff inquired whether Central San could resubmit
the project submittal for the construction permit authorization at each site.
The BAAQMD agreed to the request and committed to a two-week review
turnaround. The application was resubmitted on April 12.
Mr. Petit said that the contractor, also concerned with the emissions
change and timing, issued warning that further delay could start a time-
delay claim. Staff shared the contractor's warning with BAAQMD.
Although different avenues to challenge this requirement have
commenced, the outcome will be a lengthy development. Therefore, staff
recommends moving forward with the purchase and installation of the
additional emissions equipment since waiting for BAAQMD's ultimate
decision cannot further delay the project.
Chair Williams, concerned with the added cost, requested staff keep the
Board apprised of any developments with BAAQMD. Mr. Petit stated he
hoped to have additional information at the time this goes before the full
Board and, if not, would provide an update when available.
Mr. Lopez proceeded with his presentation. He explained a budget
transfer is requested for this additional scope since staff believes the
current contract contingency will likely incur added electrical costs,
especially since construction, namely the electrical portion, is in the early
stages. If the budget transfer were approved, this change would be within
9% of the total construction contract, below the standard 10% threshold.
Chair Williams discussed his opinion on project budgets. He asked
whether staff was attempting to balance the budget during the project to
be under budget at the end. Mr. Petit echoed Mr. Lopez'explanation and
added that staff wants to be able to effectively manage unforeseen scope
changes with the contractor.
The additional required equipment and its associated work had not been
factored in previously. As such, should a large problem occur, staff wants
to be able to quickly respond and avoid any further delays. Moreover, staff
does not want the contractor to be impacted by the internal request
process during a critical time because the intended contract contingency
was instead used for the emissions work. Mr. Petit offered that the Board
has the option to not grant the budget transfer.
Member Lauritzen stated that it was valid to give economy to manage the
process of execution.
May 6, 2021 Regular Board Meeting Agenda Packet- Page 201 of 239
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Engineering & Operations Committee Minutes
April 20, 2021
Page 4
Chair Williams further declared his uncertainty with the budget transfer.
However, after additional discussion, since this change was so unique and
brought on by a regulatory agency, he did not want to impede staff in
managing the project.
The Committee concurred on Board approval as recommended by staff.
COMMITTEE ACTION: Recommended Board approval.
b. Review draft Position Paper to approve the Phase 2 - Aeration Basins
Diffuser Replacement and Seismic Upgrades Project in the Fiscal Year
2020-2021 Budget and funding from the Steam and Aeration Blower
Systems Renovations, District Project 7349; and authorize the General
Manager to amend an existing agreement with HDR, Inc. to include final
design services in an amount not to exceed $1,856,000, increasing the
cost ceiling to $5,326,000
Mr. Petit reviewed the presentation included in the agenda material. He
stated that the overall message of slide 7 was that the data shows an
increase in trend in the Sludge Volume Index (SVI); lower values are
desired for proper operation. The increase in turbidity impacts the capacity
of the activated sludge process as well as the quality of effluent going
through ultraviolet (UV) disinfection and the overall stress on the UV
system.
Mr. McDonald and Mr. Petit spoke about the SVI increase and the
operation concern it poses. Mr. McDonald advised that a "good plant"runs
at 100-150 SVI. This situation, similar to a condition another agency
encountered, is due to a lack of oxygen transfer into the aeration basins.
In discussion of the Phase 2 project intent, in addition to deteriorating
diffusers, mechanical deficiencies and necessary controller
enhancements, seismic upgrades are also needed. Mr. Petit noted that
many of the needs associated with the aeration basins project are similar
to the recent Mechanical and Concrete Renovations project.
Mr. Petit defined the estimated $68 million Steam and Aeration Blower
Systems Renovations (Steam Project) was lowered to $51 million for
Phase 1 - Electric Blowers Improvement, Phase 2 will further decrease the
budget but will leave adequate funds to complete the remaining steam
portion of the initial project.
Staff intends to procure the equipment at the 30% Design level and bid the
diffusers for technical criteria in addition to price. He concluded that the
overall project is a lengthy process.
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Engineering & Operations Committee Minutes
April 20, 2021
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Member Lauritzen stated the project is overdue and was supportive of the
improvement plan.
Chair Williams asked how this project meshes with the Nutrient Removal
project. Mr. Petit stated that the $10-11 million estimated in the Ten-Year
Capital Improvement Plan for the Nutrient Removal-Level 1 project will be
used for this project as staff plans to optimize the existing available
tankage. Chair Williams inquired whether staff has thought about various
nutrient alternatives, to which Mr. Petit replied yes and it would be
coordinated with the Water Exchange Project. Under all considered
alternatives, the use of the existing secondary treatment is being
maintained and, therefore, there would be no stranded assets.
The Committee concurred on Board approval as recommended by staff.
COMMITTEE ACTION: Recommended Board approval.
5. Other Items
Item 5.a. was heard out of order, immediately after Item 3.
a.* Continue discussion of the construction contract bid protest and award
associated with the Contractor Staging Improvements, District Project
7375
[Background: This matter was originally presented to the Committee on
April 7 and to the Board of Directors on April 15, 2021. It was announced
at the Board meeting that the original staff recommendation had since
been changed to reject all bids. At the meeting, the issue was discussed
at length, with public comment, the Board continued its determination
pending further Committee and staff review. This item continued that
discussion.]
Mr. Lopez provided the attached presentation to address and discuss
several questions from the Board meeting and how staff plans to proceed
with its original recommendation at the May 6 Board meeting.
As represented in slide 4, conversation continued about issues with the
bid from Carone & Company, Inc. (Carone), centered around material
errors in Bid Items 5 and 6. Additionally, slide 5 discussed other non-
responsive contract requirement actions of Carone associated with timely
filing of a bid protest, or the non-filing of an actual bid protest.
Mr. Lopez briefly explained the need of the Contractor Staging
Improvements project, its correlation to the extensively discussed Solids
Handling Facility Improvements (Solids Project) currently out to bid, and
the concern that these recent events may delay or impact that project.
May 6, 2021 Regular Board Meeting Agenda Packet- Page 203 of 239
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Engineering & Operations Committee Minutes
April 20, 2021
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Staff evaluated several alternatives and decided on a contingency plan, if
needed, to continue the staging project. He advised that an addendum to
the Solids Project is pending to include the alternative as an additive bid
item that could be deleted later if it is unnecessary.
Therefore, after additional staff review of all of the bids and
correspondence received, and with a contingency plan in place, Mr. Lopez
concluded staff found no issue with the McGuire & Hester(M&H) bid and
will revert to its original recommendation.
Mr. Lopez provided clarification to a question posed by Member Lauritzen
regarding the staff recommendation and bids received, after which she
stated her support as presented.
In response to an inquiry of Chair Williams regarding the short-term
approach, Mr. Lopez stated that the contingency plan would move the
Solids Project along; however, several staging project scope items remain
to be remedied, such as security, if the staging project were to be delayed.
Several in-depth questions were asked by Chair Williams to District
Counsel and staff and a lengthy discussion followed. Some of the main
discussion is summarized below:
• Bid pricing from Carone - column clearly stated per ton for the two-
unit prices in question. Is there a significant impact to Carone
correcting their bid and requesting an additional $138,000? Mr.
Petit replied yes, the dollar amount is significant, but the amount is
not the issue. Carone submitted a letter that acknowledged the
error made to those bid items after the bid opening. Mr. Alm
advised that non-material errors can be waived, which is not the
case here. It is inappropriate to allow a change after the bid has
been submitted. It is not the dollar amount, but the change of bid
after the fact and with errors of material.
• Unbalanced bids are not allowed in public proiects, is there a cutoff
that this would not be an issue? Mr. Alm reiterated it is not the
dollar amount here. He opined that a material error associated with
the Class I disposal was significantly lower and reversed with Class
11, resulting in potential loss to the company, and vice-versa, a
potential loss to the District on Class II disposal.
• In the field, how would the District be at a disadvantage?
Mr. Lopez stated the Class 11 hazardous materials (Bid Item 6) is
the disadvantage and is significantly higher than other bids. The
amounts reflected on the "soil cap"are estimates, which can be
more once soil is scraped and tested.
May 6, 2021 Regular Board Meeting Agenda Packet- Page 204 of 239
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Engineering & Operations Committee Minutes
April 20, 2021
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• Another letter from Carone said to disregard their previous letter
and they would honor their price, how does that factor? Mr. Alm
stated that the letter indicated acknowledgement of the error in the
bid; therefore, the District should not award to that bidder. Mr. Petit
added that Mr. Carone verbally stated to staff that he would likely
ask for changes later.
Chair Williams stated he was also prepared to support the staff
recommendation.
Mr. Alm reminded the Committee that the hearing would continue before
the Board and there were public participants in attendance at this meeting
that may want to speak. After hearing their views, it may prompt the
Committee to ask for more information.
Public Comment:
1. Carone & Company, Inc.: Mr. Carone stated his Counsel, Mr. Kong,
was in attendance to speak on his behalf. Mr. Kong stated that the
error made ends up being in the District's favor. He said numbers
are not a valid reason to throw out his client's bid and Carone
agreed to honor their price - Carone is the lowest bidder.
Regarding the question of imbalance, Mr. Kong stated that there
were imbalances in every bid, and noted other bid items within
M&H's submittal. He opined that the District's focus on Bid Items 5
and 6 is not a fair or valid reason to reject their bid.
He continued that a statement within the April 15 Position Paper
was incorrect: "...unreasonable to assume any contractor would
honor significantly low prices for disposal of Class I contaminated
soils.'; stating that Carone is bound to honor the contract.
Moreover, in response that Carone may ask for a change order
later, was also not reason to reject in his opinion since the change
order itself could be rejected.
Mr. Kong concluded saying Carone had done their research and is
willing to take the risk of the Class I price difference. The basis to
reject their bid is improper on a variety of levels and noted that
M&H's figures have not been raised as an issue at all. He opined
the real option should be to reject all bids and rebid the project.
2. McGuire & Hester. Kim Carone, Counsel for M&H then spoke,
stating M&H supports staff on their original recommendation. She
continued that the law is clear- Carone made a mistake and the
District is bound to reject their bid because it is a material
difference. M&H is the responsive and responsible bidder and is
May 6, 2021 Regular Board Meeting Agenda Packet- Page 205 of 239
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Engineering & Operations Committee Minutes
April 20, 2021
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ready to proceed, adding that staff already deemed M&H to be
responsive and responsible. She concluded, in summary, clerical
and material errors were put in writing; Carone needs to be deemed
non-responsive
Response and continued discussion:
Mr. Kong stated Carone sent their letter at the request of the District which
otherwise would not have been sent— the District requested something in
writing. Mr. Petit replied that the March 18 letter from Carone was sent at
their own volition, which renders their bid non-responsive. Mr. Lopez
added that the District would never tell a bidder to change their numbers.
In the end, the Committee concurred with staff's recommendation and that
the matter will be determined by the full Board at the May 6 meeting.
COMMITTEE ACTION: Received the update, held discussion, and
deferred the matter to the full Board for determination.
At this point, the Committee reverted to the original agenda order, beginning with
Item 4.a.
b. Receive update on a recent ArcFlash incident at Substation 33
Mr. Morales presented the information included in the agenda materials,
which included an overview of this event and the challenges with
electrical-type work and incidents that can occur- especially with older
equipment.
To summarize, Substation 33 is located near the north clarifier in the
treatment plant. A contractor was pulling wiring while on a ladder and
encountered a faultily fastened piece of equipment which fell during the
wire pull and created the arc flash. Some clarifier equipment did go down
momentarily but was quickly reenergized by the electrical staff.
Fortunately, and most importantly, no one was injured.
Following this event, representatives from various divisions reviewed the
incident. Valuable lessons were learned, and processes were
implemented for future equipment maintenance. Going forward, staff
electricians will have additional items to check during their preventative
maintenance responsibilities, such as barrier fasteners being properly
secured. Mr. Morales had mentioned earlier in his presentation that with
the number of upcoming plants projects, even more contractors will be on
site interacting with the facility, thus, staff worked quickly to move forward
with solutions.
May 6, 2021 Regular Board Meeting Agenda Packet- Page 206 of 239
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Engineering & Operations Committee Minutes
April 20, 2021
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Mr. McDonald stated that the equipment is very old, and no one was at
fault in this incident. He assured the Committee that operational steps
were taken, and a system is in place to make things safer for everyone
working around the various plant equipment.
Member Lauritzen stated it is often the case that contractors have a higher
injury rate than staff and that staff is responsible to keep contractors safe.
Hence, she was glad that immediate steps were taken to mitigate further
future issues.
COMMITTEE ACTION: Received the update.
C. Receive Capital Projects Division Quarterly Report (January to March) on
capital projects, active consultant contracts, change order log, and
schedule of bids and awards
This item was heard after Item 8.
Mr. Lopez explained a bid scheduling change of two District Projects (DP)
depicted on the Schedule of Bids and Awards (last page of the report).
Staff decided to combine the Electric Blower Improvements-Phase 1,
DP 100015 with the Piping Renovations-Phase 10, DP 7369 to
consolidate bid efforts that would include similar job tasks and contractor
trades and to obtain the best overall contract price. Since similar work
covers both projects, it was deemed more efficient to have one team
complete the two projects, both contractor and staff wise.
Chair Williams observed some consultant contracts have received 8-9
revisions, and asked staff to comment. Mr. Lopez stated that typically the
agreements do not have so many revisions; however, some of the
agreements have been in place for multiple years. As such, some of the
revisions were executed simply for time, while other amendments may
have included scope of work or task dollars. Mr. Petit added that some
projects are more complicated and require more contract revisions, such
as the Solids Project. He stressed that even though some agreements
may require multiple revisions, staff closely monitors all contracts.
COMMITTEE ACTION: Received the report.
6. Announcements
None.
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Engineering & Operations Committee Minutes
April 20, 2021
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7. Suggestions for Future Agenda Items
a. Receive list of upcoming agenda items and provide suggestions for any
other future agenda items
COMMITTEE ACTION: Received the list.
8. Future Scheduled Meetings
Tuesday, May 11, 2021 at 11:00 a.m.
Tuesday, May 25, 2021 at 11:00 a.m. (Special meeting)
Tuesday, June 1, 2021 at 11:00 a.m.
9. Adjournment— at 11:55 a.m.
* Attachment
May 6, 2021 Regular Board Meeting Agenda Packet- Page 208 of 239
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Item 5.a.
(Handout)
CONTRACTOR STAGING IMPROVEMENTS
DISTRICT PROJECT 7375
STAFF RECOMMENDATIONS FOR AWARD
Engineering and Operations Committee Meeting
April 20, 2021
r Edgar J. Lopez, P.E.
Capital Projects Division Manager
BID SUMMARY
ENGINEER'S ESTIMATE: $4.000.DOQ
NO. BIDDER BID PRICE
1 Carone&Company, Inc. $3,819,790`
I2 McGuire&Hester $4,001,000
3 O.C.Jones&Sons, Inc. $4,249,500
4 NT Construction, Inc. $4,506,700
5 Aztec Consultants,Inc. $4,731,300
Bid non-responsive.
Bid Opening: March 18, 2021
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May 6, 2021 Regular Board Meeting Agenda Packet- Page 209 of 239
Page 13 of 16
BID ITEMS 5 AND 6 COMPARISON
Bid Item 5Bid Item B
Extended Cost Extended Cost
Aztec Consultants,Ina $4.9,000 $56,001]
McGuire&Hasler $285,000 $12,000
NTK Construction,Inc- $325,000 $44,000
.................
O C Janes&Sons,Inc- $270,00 $20,000
AVERAGE From Bids $334,750 $33,000
Engineers Estimate $325,000 $.35,000
Carone 8,Company.Inc. $112,500 $137,000
• Carone & Company(Carone)submitted a letter on March 18th
stating a mistake had occurred in their bid and requested an
additional amount of$138,000 with a corrected bid schedule
for a total of$3,957,700.
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CENTRALSAN
RECOMMENDING TO REJECT CARONE'S BID
• Carone, the apparent low bidder, made significant errors for Bid
items#5 and #6 .
• Errors are not considered clerical as they impact pricing and the
cost of the contract as Carone presented in their letter on March
18th (Attachment 4 of the Position Paper). Therefore, the errors
are material. Staff can not recommend an award with material
errors and or a contractor corrected bid total.
• Carone has written that they would perform the work at the original
amount given at bid time. The errors for Bid items#5 and #6 result
in unbalanced bid items. These items are the highest risk for
project costs and unknown conditions, Central San would be at a
disadvantage on Bid item#6. Staff does not recommend
awarding a contract with unbalanced items, resulting in a
disadvantage that is detrimental to the District as stated in
the bid specifications (Volume 1, Part II Instruction to Bidders,
Section 8.)
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May 6, 2021 Regular Board Meeting Agenda Packet- Page 210 of 239
Page 14 of 16
BID PROTEST AND PROCEDURES
Bidders have no later than 5 p.m. of the fifth (5) business day
(March 25th) to submit a protest per the procedures specified:
Staff received a timely bid protest from McGuire & Hester
(M&H) on March 24.
In review of all correspondence, Carone did not follow
several of the protest procedures, as follows:
A bidder may not rely on the Protest submitted by another bidder,
but pursue its own protest in a timely manner.
Carone submitted a letter responding to M&H on March 26th and
stated "Carone would have to strongly consider a bid protest..." .
Carone did not transmit copies to M&H.
Staff did not get a protest as defined in the specifications
by Carone and anything beyond March 25th is untimely.
CENTRALSAN
REVIEW OF M&H BID
When evaluating bids, the project bid specifications is used
by Staff in resolving discrepancies.
M&H Bid did contain minor discrepancies (missing written
word "Dollars" or I" which are noted and addressed in the
bid specifications. These discrepancies are considered
clerical and non-material.
Staff has reviewed and discussed the pricing provided by
M&H and did not find any unbalance between the various
contract items.
Therefore, staff considers M&H's bid to be responsive and
responsible.
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May 6, 2021 Regular Board Meeting Agenda Packet- Page 211 of 239
Page 15 of 16
SOLIDS PROJECT IMPACT
One of the immediate needs for the Contractor Staging
Project is for the Large project currently out to bid (Solids
Project —$120 Million).
• Staff plans to issue an addendum to include a
contingency plan in the event of a delay.
• The contingency plan will include such items as an
alternative entrance and exit for the contractor on Imhoff
Drive. Staff will meet with Refinery for use of parking lots.
• This plan will alleviate concerns for impacting the Solids
project and will be bid as an additive bid item so that the
District can possibly delete it later.
STAFF RECOMMENDED BOARD ACTIONS
• Make findings:
• The Project is exempt from CEQA;
• Reject the bid by Carone&Company, Inc.
• Award the project bids:
• Award a construction contract in the amount of$4,001,000 to McGuire&Hester,the
lowest responsive and responsible bidder for the Contractor Staging Improvements,
District Project 7375;
• Include the additive bid item in the amount of$9,300 for the construction of the
Recreational Vehicle(RV)Receiving Station;
• Authorize the General Manager to:
• Execute the Contract Documents subject to submittal requirements;
• Amend an existing agreement with Woodard&Curran to include engineering
services during construction in the amount of$50,000, increasing the agreement
cost ceiling to$367,000;and
• Authorize a Budget Transfer:
• Transfer$800,000 from the FY 2020-21 CIB Contingency for the inclusion of the
RV Receiving Station and hazardous soil additional budget. `
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QUESTIONS?
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