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Home My WebLink About04.a. Review draft Position Paper to authorize the General Manager to execute a construction contract change order in an amount not to exceed $300,000 with McGuire and Hester Construction, Inc. to include the Tertiary Membrane Pilot Installation under th Page 1 of 8 Item 4.a. CENTRAL SAN BOARD OF DIRECTORS . , , . POSITION PAPER . , DRAFT MEETING DATE: AUGUST 10, 2021 SUBJECT: REVIEW DRAFT POSITION PAPER TO AUTHORIZE THE GENERAL MANAGER TO EXECUTE A CONSTRUCTION CONTRACT CHANGE ORDER IN AN AMOUNT NOT TO EXCEED $300,000 WITH MCGUIRE AND HESTER CONSTRUCTION, INC. TO INCLUDE THE TERTIARY MEMBRANE PILOT INSTALLATION UNDER THE CONTRACTOR STAGING IMPROVEMENTS, DISTRICT PROJECT 7375 SUBMITTED BY: INITIATING DEPARTMENT: AMANDA CAUBLE, ASSOCIATE ENGINEER ENGINEERING AND TECHNICAL SERVICES- PDS-PLANNI NG AND APPLI ED RESEARCH REVIEWED BY: DAN FROST, SENIOR ENGINEER DANEA GEMMELL, PLANNING AND DEVELOPMENT SERVICES DIVISION MANAGER EDGAR LOPEZ, CAPITAL PROJECTS DIVISION MANAGER JEAN-MARC PETIT, DIRECTOR OF ENGINEERING AND TECHNICAL SERVICES ISSUE Authorization from the Board of Directors (Board) is required to execute a construction contract change order in an amount greater than $200,000. BACKGROUND On May 6, 2021, the Board awarded a $4.0 million construction contract to McGuire and Hester Construction, Inc. (M&H)for the Contractor Staging Improvements, District Project (DP) 7375 (Staging Project). Construction of the Staging Project started in June and is scheduled to be completed by the end of the year. The contractor scope of work includes civil improvements, installation of new utilities, and other similar work within the wastewater treatment plant (plant)to improve safety, security, and site access for construction projects. The Applied Research and Innovations Project, DP 7315, funds several pilot opportunities within the plant aimed to validate new technology, improve or optimize wastewater processes, or plan for future regulatory changes and impacts. One pilot effort that is moving forward in Fiscal Year(FY) 2021-22 is the Tertiary Membrane Pilot Project (Pilot Project)that was presented on December 14, 2020 to the Real Estate, August 10, 2021 Special EOPS Committee Meeting Agenda Packet- Page 4 of 31 Page 2 of 8 Environmental and Planning Committee. The Pilot Project includes a 150-gallons per minute tertiary membrane (three modules) pilot system and dual-stage reverse osmosis to better inform the viability of membranes for recycled water production, as pre-treatment, and or potential advanced recycled water opportunities. Staff considered multiple established manufacturers to pilot and decided to use Toray Membrane,Asahi, and Nanostone Water. These manufacturers were selected because they represent the vast majority of implemented systems used to generate recycled water. If Central San chooses to continue with membrane filtration, other manufacturers not included in this Pilot Project could still be evaluated and considered. Carollo Engineers, Inc. is providing the membrane pilot system as well as the membrane units. The findings of the pilot will assist in refining the operating parameters used in scaling up to a full-scale installation and for estimating potential capital or operations and maintenance costs. The pilot equipment is scheduled to arrive in early August of this year and will be installed north of the existing Laboratory and west of the secondary clarifiers. Building the pilot system requires demolition, concrete, utilities, and other work similar to the Staging Project. Therefore, staff requested a quote from M&H for all the necessary work to install the pilot. Staff did not receive additional quotes since other contractors were not interested in performing the work considering that M&H was already on site, performing the same type of scope, and has specialized training in hazardous materials in the event hazardous soils are found during excavation. Staff has reviewed the quote by M&H and finds that the pricing received is acceptable since it matches the bid pricing for the Staging Project which was competitively bid early this year. California Environmental Quality Act(CEQA) At its May 6, 2021 meeting, the Central San Board independently found that this project is exempt from CEQA Guidelines Section 15061(b)(3), since it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. This certainty is based on Central San's past experience with construction projects of this nature, the relatively small areas involved, and the Central San's mitigating construction specifications. These specifications are standardized general and special conditions that are made part of the project bid documents to address environmental considerations, such as protecting trees and riparian areas, as well as compliance with applicable federal, state, county, district, municipal and local laws, ordinances, orders, and regulations. ALTERNATIVES/CONSIDERATIONS Staff considered several alternatives and does not recommend any of the following: Alternative 1 — Do not proceed under a construction contract change order and issue the installation work as a separate public works project and bid. Time is of the essence since staff was able to acquire a pilot system for the plant. Available membrane pilot systems that can fulfill Central San's specific goals are difficult to find as staff experienced last year when the pilot from another vendor could not be obtained within the timeframe needed. This alternative would be more costly than staff's recommendation since staff would have to involve two contractors since the pilot will be delivered soon and bidding would require several months to finalize a new construction contract. Staff also estimates that the costs would be higher since a new contractor would have to mobilize and likely pay higher costs in handling low amounts of hazardous soils. Alternative 2 — Postpone the pilot to another time or don't conduct piloting. This is not recommended due to the inability to provide valuable data to make informed decisions on future Capital Projects such as the Filter Plant and Clearwell Improvements — Phase 1 B, Project DP 7361, Water Exchange Project DP 7368, other projects, or potential possibilities. The action being recommended by staff is the most economical solution and expedites the completion of the Pilot Project. August 10, 2021 Special EOPS Committee Meeting Agenda Packet- Page 5 of 31 Page 3 of 8 FINANCIAL IMPACTS The total estimated price to install the pilot system is $300,000. This includes materials, equipment, labor, and a 15 percent contingency. The total estimated budget for the Pilot Project is $750,000, which includes planning, design of the pilot system, pilot equipment, M&H installation costs, contingency, testing, staff and consultant time. The Applied Research and Innovations Project has approximately$1.2 million available to date and has adequate funding for the Pilot Project, no additional budget is required. COMMITTEE RECOMMENDATION The Engineering and Operations Committee reviewed this matter at its August 10, 2021 meeting and recommended RECOMMENDED BOARD ACTION Authorize the General Manager to execute a construction contract change order in an amount not to exceed $300,000 with McGuire and Hester Construction, Inc. to include the Tertiary Membrane Pilot Installation under the Contractor Staging Improvements, District Project 7375. Strategic Plan Tie-In GOAL TWO:Environmental Stewardship Strategy 1—Achieve 100%compliance in all regulations, Strategy 3—Support regional development of local water supply GOAL SIX:Innovation and Optimization Strategy 2—Improve and modernize operations through technology and efficiency measures ATTACHMENTS: 1. Presentation August 10, 2021 Special EOPS Committee Meeting Agenda Packet- Page 6 of 31 Page 4 of 8 ._ UPDATE ON MEMBRANE PILOT PROJECT AND REQUEST TO AUTHORIZE A CHANGE ORDER FOR CONSTRUCTION = Jean-Marc Petit, Director of Engineering and Technical Services Edgar Lopez, Capital Projects Division Manager Amanda Cauble,Associate Engineer Engineering and Operations Committee Meeting August 10, 2021 1 1 PROJECT OBJECTIVES 1 . Proof of concept using tertiary membrane filtration for producing Title 22 recycled water with Central San's secondary effluent 2. Evaluate multiple established membrane manufacturers and refine operating parameters 3. Pilot a dual-stage reverse osmosis skid to better inform the viability of membranes as pre-treatment and for potential future advanced recycled water opportunities ffwaffiw�qff.ml Iz 2 August 10, 2021 Special EOPS Committee Meeting Agenda Packet- Page 7 of 31 1 Page 5 of 8 ISOMETRIC VIEW OF MEMBRANE SKID I PHOTO OF MEMBRANE SKID ISOMETRIC VIEW CENTRAL SAN ' 3 3 40 �SN[.M1StGED I50 d —'.' !1 loll ITY R NJ _ - rod r�xx:l-ss F u�wuwr,Franl ��,�. + �w dinE��bi Rur mrr ry rein 4 August 10, 2021 Special EOPS Committee Meeting Agenda Packet- Page 8 of 31 2 Page 6 of 8 FINANCIAL IMPACT • The total estimated price to install the pilot system is $300,000. (This includes materials, equipment, labor, and 15% contingency.) • The total estimated budget for the Tertiary Membrane Pilot Project (Pilot Project) is $750,000, which includes planning, design of the pilot system, pilot equipment, McGuire and Hester Construction Inc. (M&H) installation costs, contingency, testing, staff and consultant time. • The Applied Research and Innovations Project, District Project (DP) 7315 has approximately $1 .2 million available to date and has adequate funding for the Pilot Project, no additional budget is required. - IS 5 PILOT SCHEDULE • August — September 2021 : Delivery of pilot, install, and preparation. • October 2021 — January 2022: Operate and receive pilot data for an estimated 4 months. • February —April 2022: Draft and finalize findings and report. ' 6 6 August 10, 2021 Special EOPS Committee Meeting Agenda Packet- Page 9 of 31 3 Page 7 of 8 ALTERNATIVES • Alternative 1 — Do not proceed under a construction contract change order and issue the installation work as a separate public works project and bid. This is not recommended. • Alternative 2 — Postpone the pilot to another time or don't conduct piloting. This is not recommended due to the inability to provide valuable data to make informed decisions on future Capital Projects such as the Filter Plant and Clearwell Improvements — Phase 1 B, Project DP 7361 , Water Exchange Project DP 7368, other projects, or potential possibilities. The action being recommended by staff is the most economical solution and expedites the completion of the Pilot Project. 1 7 RECOMMENDATIONS • Authorize the General Manager to execute a construction contract change order in an amount not to exceed $300,000 with McGuire and Hester Construction Inc. to include the Tertiary Membrane Pilot Installation under the Contractor Staging Improvements, District Project 7375. I8 8 August 10, 2021 Special EOPS Committee Meeting Agenda Packet- Page 10 of 31 4 Page 8 of 8 QUESTIONS? CENTPAL SAN9 August 10, 2021 Special EOPS Committee Meeting Agenda Packet- Page 11 of 31 5