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HomeMy WebLinkAbout07. Authorize an amendment to an existing professional services agreement with Degenkolb Engineers, Inc. for DP 7348, increasing cost ceiling to $334,000 Page 1 of 3 Item 7. CENTRAL SAN BOARD OF DIRECTORS POSITION PAPER MEETING DATE: AUGUST 18, 2022 SUBJECT: AUTHORIZE THE GENERAL MANAGER TO AMEND AN EXISTING PROFESSIONAL ENGINEERING SERVICES AGREEMENT IN AN AMOUNT NOT TO EXCEED $284,000 WITH DEGENKOLB ENGINEERS, INC., INCREASING THE AGREEMENT FROM $50,000 TO $334,000 TO PROVIDE SEISMIC DESIGN SERVICES FOR THE SOLIDS HANDLING FACILITY IMPROVEMENTS, PHASE 1A, DISTRICT PROJECT 7348 SUBMITTED BY: INITIATING DEPARTMENT: NATHAN HODGES, SENIOR ENGINEER ENGINEERING AND TECHNICAL SERVICES- CAPITAL PROJECTS REVIEWED BY: EDGAR J. LOPEZ, CAPITAL PROJECTS DIVISION MANAGER L Roger S. Bailey General Manager ISSUE The Board of Directors'authorization is required for the General Manager to execute an amendment to an existing professional engineering services agreement above $200,000. BACKGROUND The Solids Handling Facility Improvements, Phase 1 A, (Project) is under design and includes critical infrastructure replacement and upgrade of the incinerator air pollution control equipment within the treatment plant's Solids Conditioning Building (SCB)to meet regulatory standards. The original Solids Handling Facility Improvements (Solids Project) included several project elements that were deferred or under re-evaluation, such as a new ash handling facility, improved sludge blending tanks, major electrical replacement, and seismic upgrades to bring the SCB and the existing incinerators in line with current seismic performance standards. Staff has continued to evaluate seismic alternatives with Degenkolb Engineers, Inc. (Degenkolb) in parallel with the Project. Degenkolb was tasked to evaluate the SCB seismic improvements with the approach to minimize disruption to process operations, increase safety for staff (especially at the existing stairwells), reduce August 18, 2022 Regular Board Meeting Agenda Packet- Page 49 of 76 Page 2 of 3 impact to existing SCB systems, and move most of the construction work to the building exterior.As seismic upgrades or safety levels are determined by Central San, another objective was to maximize seismic performance without taking the SCB or incinerators and solids processes fully offline. Seismic improvements for the incinerators, such as the base isolators, have been removed from the Project. However, the new proposed design will significantly lower the amount of displacement from 24 inches to 6- inches (depending on incinerator elevation, can also range from 3 to 9-inches) during a major earthquake. Staff evaluated several ideas with Degenkolb since the work within the SCB has been minimized. I n the end, Degenkolb presented a concept that meets Central San's stated objectives and substantially improves the expected seismic performance of the SCB, which includes: • Exterior buttresses at North-East and South-West corners; • Strengthen beams and beam-column connections at buttresses; • New brace at the North-West corner of SCB; • Strengthen existing braces; and • A design that can be used with future modifications to meet the current design criteria for critical facilities. Degenkolb has extensive experience with seismic engineering in general and specifically with the SCB. Degenkolb designed the first seismic improvements for the SCB in the 1980s. The current Degenkolb team conducted the assessment of the SCB seismic performance in 2009 and was selected in December 2016 as part of the design team for the Solids Project.At the November 18, 2021 Board Meeting, the Board was informed that Degenkolb would continue to provide seismic engineering services as part of the Project and an agreement within the General Manager's authority was executed at a cost ceiling of$50,000. Staff has negotiated a scope and fee with Degenkolb to complete bid documents for the buttresses and other seismic upgrades, including bid services. The bid documents for the seismic work will be included with the Project as an alternate bid item. The cost for the additional services is estimated at$284,000. ALTERNATIVES/CONSIDERATIONS An alternative would be to not make any seismic improvements to the SCB. Staff considered this alternative as part of the Solids Project rescoping effort; however, making the proposed seismic improvements to the SCB resolves many of the seismic performance deficiencies at a reasonable cost. These improvements will protect staff working in the SCB and the critical process equipment. A consideration known and evident to staff is that the SCB contains more than solids process equipment, it also includes the main components of the steam system or heat recovery systems and power generation for the treatment plant. These systems and the incinerators have significant remaining life (20 plus years) when properly maintained. Therefore, the building is needed for the near term and likely in the future. The proposed design allows for a staged or phase improvement plan that in time when other systems are in place, the SCB may be improved to obtain the highest level of seismic performance. FINANCIAL IMPACTS Degenkolb's services as described above is $284,000. The original agreement amount to evaluate alternatives was $50,000; thus, the new cost ceiling for the agreement will be $334,000. There is adequate remaining budget in the Project to fund the new seismic design. The preliminary construction estimate for the seismic upgrades is between $15 million and $20 million. I n comparison, the Solids Project bids received last year included seismic upgrades at a cost from $40 August 18, 2022 Regular Board Meeting Agenda Packet- Page 50 of 76 Page 3 of 3 million to $60 million and roughly$20 million or more in solids hauling and disposal due to the seismic work. The proposed Project does not include solids hauling or disposal as the seismic work will be mainly completed from outside the SCB. Budget for seismic upgrades to the SCB are included in the Ten-Year Capital I mprovement Plan— Solids Handling Facility Improvements, Phase 1 B Seismic. $32,950,000 has been budgeted starting in Fiscal Year 2023-24. COMMITTEE RECOMMENDATION The Engineering and Operations Committee reviewed this subject at the August 3, 2022 meeting and recommended approval. RECOMMENDED BOARD ACTION Authorize the General Manager to amend an existing professional engineering services agreement in an amount not to exceed $284,000 with Degenkolb Engineers, I nc., increasing the agreement from $50,000 to $334,000 to provide seismic design services for the Solids Handling Facility I mprovements, Phase 1 A, District Project 7348. Strategic Plan re-In GOAL TWO: Environmental Stewardship Strategy 1 -Achieve compliance in all regulations GOAL FIVE: Safety and Security Strategy 2- Protect personnel and assets from threats and emergencies GOAL SIX: Infrastructure Reliability Strategy 2- Execute long-term capital renewal and replacement program August 18, 2022 Regular Board Meeting Agenda Packet- Page 51 of 76