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HomeMy WebLinkAbout06. Authorize professional engineering services agreements for rebid of Solids Handling Facility Improvements Page 1 of 4 Item 6. CENTRAL SAN BOARD OF DIRECTORS POSITION PAPER MEETING DATE: NOVEMBER 18, 2021 SUBJECT: AUTHORIZE THE GENERAL MANAGER TO EXECUTE THREE PROFESSIONAL ENGINEERING SERVICES AGREEMENTS TO REBID THE CRITICAL ELEMENTS OF THE SOLIDS HANDLING FACILITY IMPROVEMENTS, DISTRICT PROJECT 7348 WITH: 1. CDM SMITH IN AN AMOUNT NOT TO EXCEED $850,000; 2. ARCSINE ENGINEERING I N AN AMOUNT NOT TO EXCEED $600,000; AND 3. GHD, I NC. I N AN AMOUNT NOT TO EXCEED $500,000 SUBMITTED BY: INITIATING DEPARTMENT: NATHAN HODGES, SENIOR ENGINEER ENGINEERING AND TECHNICAL SERVICES- CAPITAL PROJECTS REVIEWED BY: 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) authorization is required for the General Manager to execute a professional engineering services agreement in an amount greater than $200,000. BACKGROUND On October 21, 2021, the Board authorized the General Manager to sign an initial agreement with the State of California Division of Finance under the State Revolving Fund (SRF) loan program for the Solids Handling Facility Improvements, District Project 7348 (Solids Project), with the understanding that the project would be repackaged and reduced in scope to only include urgent or critical infrastructure needs and meet design criteria that would not conflict with potential early adoption of digesters to the wastewater treatment plant. November 18, 2021 Regular Board Meeting Agenda Packet- Page 31 of 112 Page 2 of 4 Staff held workshops and solicited input from internal stakeholders to determine which of the original project elements needed to be constructed now, which elements may be constructed later, or can be deferred to a future capital project(s) or possibly deleted altogether. Concurrent with this rescoping effort, staff issued a Request for Proposal (RFP)for professional engineering services to plan for the long-term solids handling. The reduced Solids Project becomes a project to bridge Central San to new, long-term solids process technology changes. The planned window for this transition is 10 years. With this approach, any original Solids Project scope elements will be implemented if there is a strong reliability or regulatory driver. Otherwise, scope elements will be postponed, deleted altogether, or ultimately decided after the long-term solids planning is complete. After consolidating stakeholders' input, the reduced Solids Project scope will include: 1. Replacing the wet scrubbers. 2. Replacing the centrifuges and cake pumps. 3. Replacing the furnace burners. 4. Other miscellaneous equipment associated with the above items or urgent items that are critical to Operations, such as deteriorated piping and failing systems. There are other smaller project elements that will be reviewed with the selected design consultants to determine if these elements should be constructed at this time. The most significant of these are the electrical and control system modifications or improvements. Seismic improvements will also be reviewed and addressed separately from the reduced Solids Project. Other project scope elements such as new sludge blending tanks and an ash handling facility are examples of systems that will await final solids planning before determining the exact extent of work that should be performed now and what should be deferred or deleted. It should be noted that staff is not recommending to continue with the original lead consultant, Black and Veatch Corporation (B&V), to repackage the project for bid. Central San has received the building information modeling and computer-aided design drawing files from B&V, as well as other deliverables such as specifications and calculations to allow for the new project team an expedient process to rebid the work and build on past efforts. With this reduced scope for the Solids Project, staff is selecting an experienced team of consultants to repackage the existing technical documents. This effort includes utilizing the existing design as much as possible and enough redesign to meet the new project objectives. New Project Team HDR, Inc. (HDR) and Degenkolb Engineers (Degenkolb)were selected as part of the original Solids Project design team in 2016 and will continue to support their respective scope of work. HDR was responsible for architectural and non-seismic structural design. Degenkolb was responsible for the seismic design of the building and furnaces. Staff prepared and posted a RFP on PlanetBids and the Central San website for supplemental, third-party review, and on-call engineering services for the Solids Project. On August 26, 2021, 10 proposals were received. After evaluation: 1. CDM Smith was selected as the lead consultant and will work with Central San staff and the other specialty consultants stated above to repackage and deliver the job to bid, provide review of the mechanical design of the centrifuges and cake pumps, as well as become the lead consultant to coordinate with staff and all other specialty consultants. November 18, 2021 Regular Board Meeting Agenda Packet- Page 32 of 112 Page 3 of 4 2. GHD, Inc. was selected for the wet scrubbers and incinerators. 3. ArcSine Engineering (ArcSine)was selected for electrical and control systems. 4. Ewing Construction Services (Ewing)was selected to provide contract administration support and cost estimating review. All these consultants will become the engineers of record, and stamp and seal all deliverables. Staff expects that they will all continue into construction to help support Central San if the project is awarded. ALTERNATIVES/CONSIDERATIONS Alternative 1 - Continue with the original lead consultant, B&V, to repackage the project for bid. This is not recommended by staff. Hiring a new lead team and specialty consultants will allow the project to be third- party reviewed and ensure that the systems meet Central San's expectation and standards. Alternative 2 -Another alternative would be to select only a single firm to provide all the services. This option was considered by staff but ultimately determined to not be an optimal approach for this project. The design is not changing for the scope items being constructed. The firms will be confirming the design approach remains the same and staff expects some minor design changes to accommodate the revised project scope. The selected firms are bringing specific specialization and experience to the various scope items. FINANCIAL IMPACTS The total cost to rebid the reduced Solids Project is estimated at$2.6 million, which includes consultant services for$2.2 million and staff time of$400,000. Several agreements are within the General Managers authority(less than $200,000) and include the following: 1. HDR for architectural and non-seismic structural engineering services. 2. Degenkolb for seismic engineering design services. 3. Ewing for contract review and assistance, and cost estimating review. Agreements requiring Board authorization include: 1. CDM Smith for$850,000. 2. ArcSine for electrical and control systems for$600,000. 3. GHD, Inc. for wet scrubbers and incinerators for$500,000. The Solids Project is listed on page 236 of the Fiscal Year 2021-22 District Budget and has sufficient funds to complete the repackaging and bid of the project. COMMITTEE RECOMMENDATION The Engineering and Operations Committee reviewed this matter at its November 9, 2021 meeting and recommended approval. November 18, 2021 Regular Board Meeting Agenda Packet- Page 33 of 112 Page 4 of 4 RECOMMENDED BOARD ACTION Authorize the General Manager to execute three professional engineering services agreements to rebid the critical elements of the Solids Handling Facility Improvements, District Project 7348, which include: 1. CDM Smith in an amount not to exceed $850,000. 2. Aresine Engineering in an amount not to exceed $600,000. 3. GHD, Inc. in an amount not to exceed $500,000. Strategic Plan re-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 November 18, 2021 Regular Board Meeting Agenda Packet- Page 34 of 112