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Home My WebLink About10. Award a construction contract to Industrial Furnace Co., for the Hearth Replacement, DP 100009 Page 1 of 6 Item 10. CENTRAL SAN BOARD OF DIRECTORS POSITION PAPER MEETING DATE: OCTOBER 7, 2021 SUBJECT: AWARD A CONSTRUCTION CONTRACT IN THE AMOUNT OF $447,000 TO INDUSTRIAL FURNACE CO., INC., THE LOWEST RESPONSIVE AND RESPONSIBLE BIDDER FOR THE HEARTH REPLACEMENT, DISTRICT PROJECT 100009; FIND THAT THE PROJECT IS EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITYACT; AND AUTHORIZE UP TO A 25-PERCENT CONTINGENCY SUBMITTED BY: INITIATING DEPARTMENT: CLINT SHI MA, SENIOR ENGINEER ENGINEERING AND TECHNICAL SERVICES- CAPITAL PROJECTS REVIEWED BY: EDGAR J. LOPEZ, CAPITAL PROJECTS DIVISION MANAGER STEVE MCDONALD, DIRECTOR OF OPERATIONS JEAN-MARC PETIT, DIRECTOR OF ENGINEERINGAND TECHNICAL SERVICES Roger S. Bailey General Manager ISSUE On September 16, 2021, two sealed bids were received and opened for the construction of the Hearth Replacement, District Project 100009 (Project). The Board of Directors (Board) must award the contract or reject all bids within 50 days of the bid opening. Authorization is also required for the General Manager to execute the Contract Documents subject to submittal requirements and include up to a 25-percent contingency. BACKGROUND Novel Coronavirus (COVI D-19) 1 mpact: I n the midst of COVI D-19, Central San continues construction activities as an essential service and infrastructure provider under guidelines provided by Contra Costa Health Services, Occupational Safety and Health Administration, state, and federal agencies. The October 7, 2021 Regular Board Meeting Agenda Packet- Page 120 of 200 Page 2 of 6 construction contract includes strict provisions to mitigate the spread of COVI D-19, such as personal protective equipment, handwashing stations, and other safety items, practices, and procedures as guidelines become more restrictive or lessen. Central San's multiple hearth furnaces (MHF) are a critical element of the solids handling process, reducing the amount of sludge that requires hauling by over 90 percent by volume and producing non- hazardous ash used in soil amendment. The two three-story BSP Thermal Systems, Inc. (BSP) incinerators were constructed in the mid-1970s and became operational starting in the mid-1980s. The operation of the furnaces are rotated annually, and maintenance activities are performed on the offline furnace. Maintenance work includes over 60 preventive maintenance and corrective work orders by Central San maintenance shops, as well as work by outside contractors, including ash vacuuming, condition assessment by BSP, and refractory repairs. In June 2021, BSP inspected MHF No. 2 and noted that Hearth No. 9 was on the watch list. During refractory repair work in July, the contractor discovered that Hearth No. 9 bricks shifted and moved while performing repairs. Attempting to operate the furnace for a year-long campaign with an unstable hearth is not recommended. The furnace would be unreliable and unsafe for future work. A collapse of Hearth No. 9 would damage Hearth Nos. 10 and 11. This Project will replace Hearth No. 9 bricks in MHF No. 2 this year as well as Hearth No. 9 in MHF No. 1 in 2022, which is also on the watch list and the next hearth recommended for replacement. Proactive maintenance has allowed most of the original bricks to still be in use. Central San owns a spare set of hearth bricks, which is planned for use in MHF No. 2. The contractor will supply the second set of bricks for MHF No. 1 as part of the Project. It is anticipated that the furnaces will continue to be in operation for at least the next decade. MHF No. 2 work is scheduled to be completed in 2021. Central San staff prepared the plans and specifications for the Project. The Engineer's estimate is $750,000. This Project was advertised on August 24 and 31, 2021. Two sealed bids ranging from $447,000 to $655,500 were received and publicly opened on September 16, 2021. The Capital Projects Division conducted a technical and commercial review of the bids and determined that Industrial Furnace Co., I nc. is the lowest responsive and responsible bidder. A summary of bids is shown in Attachment 2. Central San will administer the construction contract and provide contract administration, inspection, office engineering, and submittal review. California Environmental Quality Act (CEQA) Staff has concluded that this Project is exempt from CEQA under Central San CEQA Guidelines Section 15301, since it involves minor alterations to existing public facilities involving no expansion of use. Approval of this Project will establish the Board's independent finding that this Project is exempt from CEQA. ALTERNATIVES/CONSIDERATIONS The Board could provide alternate direction or reject all bids, which is not recommended. FINANCIAL IMPACTS The total estimated cost for this Project is approximately$635,000, which includes design, bid, contingency, inspection, and construction management as detailed in Attachment 3. The Project is accounted for in the Hearth Replacement Project, which is included in the Fiscal Year 2021-22 Capital Improvement Budget on page 251, and has a total of$1,000,000 budgeted for the Project. The remaining balance or savings shall be transferred to the Contingency account. Staff is recommending a 25-percent contingency for the project in case of any unforeseen conditions or October 7, 2021 Regular Board Meeting Agenda Packet- Page 121 of 200 Page 3 of 6 additional repairs that may be needed since the furnace was last inspected. The percentage is higher than the typical 15-percent seen in other renovation projects; however, due to the favorable bid received and a relatively small contract, the additional contingency is recommended. COMMITTEE RECOMMENDATION The Engineering and Operations Committee reviewed this matter at the September 21, 2021 meeting and recommended Board approval. RECOMMENDED BOARD ACTION Staff recommends the following: 1. Find that the Project is exempt from CEQA; 2. Award a construction contract in the amount of$447,000 to Industrial Furnace Co., Inc., the lowest responsible and responsive bidder, for the Hearth Replacement, District Project 100009; and 3. Authorize the General Manager to execute the Contract Documents subject to submittal requirements and include up to a 25-percent contingency. Strategic Plan Tie-In GOAL TWO:Environmental Stewardship Strategy 1—Achieve 100%compliance in all regulations GOAL FIVE:Infrastructure Reliability Strategy 1—Manage assets optimally to prolong their useful life, Strategy 2—Execute long-term capital renewal and replacement program GOAL SEVEN:Agility and Adaptability Strategy 1—Maintain a safe working environment for employees and the public during the COVID-19 pandemic ATTACHMENTS: 1. Project Location Map 2. Summary of Bids 3. Post Bid/P reconstruction Estimate October 7, 2021 Regular Board Meeting Agenda Packet- Page 122 of 200 Page 4 of 6 \ \ DI 0 200 400 •\\\ \• i FEET Basin A South \� s o � oti CONSTRUCTION STAGING AREA = \\\ ® QQNQITIONI q 00 \\\ BUVDING I D \�\ PROJECT AREA I 1 I HEARTH REPLACEMENT 0-00 Aeration CL A IERS Tanks (BOUT UAD) i o PRIMARY 00 S DIMENTATI N i TANKSLi i o13 D D o i ❑ PUMP AND BLOWER % BUILDING D POD HOB j P IMHOFF PLACE Central Contra Costa Attachment Sanitary District HEARTH REPLACEMENT ' DISTRICT PROJECT 100009 1 LOCATION MAP October 7, 2021 Regular Board Meeting Agenda Packet- Page 123 of 200 Page 5 of 6 ATTACHMENT 2 HEARTH REPLACEMENT DISTRICT PROJECT 100009 SUMMARY OF BIDS PROJECT NO.: 100009 NO. OF ADDENDA: 0 DATE/TIME: SEPTEMBER 16, 2021/12:00 PM PROJECT NAME: HEARTH REPLACEMENT PROJECT MANAGER: CLINT SHIMA PROJECT LOCATION: 5019 IMHOFF PLACE, MARTINEZ CA ENGINEER'S ESTIMATE: $750,000 NO. BIDDER BID PRICE 1 Industrial Furnace Co., Inc. $447,000 2 JT Thorpe & Son, Inc. $655,500 BIDS OPENED BY: /s/ Katie Young DATE: September 16, 2021 at 12:00 PM October 7, 2021 Regular Board Meeting Agenda Packet- Page 124 of 200 Page 6 of 6 ATTACHMENT 3 HEARTH REPLACEMENT DISTRICT PROJECT 100009 POST-BID / PRECONSTRUCTION ESTIMATE % of No. Item Description Amounts Construction Cost 1. CONSTRUCTION a. Construction Contract $447,000 b. Contingency at 25% $113,000 SUBTOTAL — CONSTRUCTION COST $560,000 100% 2. CONSTRUCTION MANAGEMENT a. District Forces - Construction Management, Engineering, $30,000 Inspection, As-Builts - Plant Operation Division (POD) Coordination $5,000 SUBTOTAL — CONSTRUCTION MANAGEMENT $35,000 6% 3. PREBID EXPENDITURES a. Engineering (Planning, Design, Drafting, POD Coordination) $30,000 b. Consulting - Chavond-Barry Engineering $10,000 SUBTOTAL — PREBID EXPENDITURES $40,000 7% 4. TOTAL ESTIMATED PROJECT COST $635,000 October 7, 2021 Regular Board Meeting Agenda Packet- Page 125 of 200