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HomeMy WebLinkAbout05.b. Execute a purchase agreement with Trojan Technologies, Group ULC for ultraviolet (UV) disinfection equipment and special services for the UV Disinfection Replacement, District Project 100012; and amend existing agreement with Carollo EngineersPage 1 of 14 Item 5.b. DCENTRALSAN MEETING DATE: JANUARY5, 2023 BOARD OF DIRECTORS POSITION PAPER DRAFT SUBJECT: REVIEW DRAFT POSITION PAPER AUTHORIZING THE GENERAL MANAGER TO: 1. EXECUTE A PURCHASE AGREEMENT I N AN AMOUNT NOT TO EXCEED $5.5 MILLION WITH TROJAN TECHNOLOGIES, GROUP ULC FOR ULTRAVIOLET (UV) DISINFECTION EQUIPMENTAND SPECIAL SERVICES FOR THE UV DISINFECTION REPLACEMENT, DISTRICT PROJECT 100012; AND 2. AMEND AN EXISTING PROFESSIONAL ENGINEERING SERVICES AGREEMENT WITH CAROLLO ENGINEERS IN AN AMOUNT NOT TO EXCEED $4.4 MILLION, INCREASING THE COST CEILING TO $5.3 MILLION, FOR FINAL DESIGN SERVICES SUBMITTED BY: INITIATING DEPARTMENT: AMANDA CAUBLE, ASSOCIATE ENGINEER ENGINEERING AND TECHNICAL SERVICES - CAPITAL PROJECTS REVIEWED BY: EDGAR J. LOPEZ, CAPITAL PROJECTS DIVISION MANAGER ISSUE The Board of Directors (Board) authorization is required for contracts or professional engineering services agreement above $200,000 in the Capital Program. BACKGROUND Central San built the existing UV Facilities to replace gaseous chlorination disinfection for the treatment plant (plant) effluent in 1994. Fischer -Porter was the original manufacturer, patent holder, and is no longer in business. The patent rights were sold several times, first to Elsag Bailey, then ABB, and now belongs to I ronbrook UV of Canada. Most of the current UV system has been in service for roughly 29 years and requires substantial maintenance, lamp replacement, and frequent chemical cleaning of UV banks. For wet weather operation, the UV system has a capacity of between 90 to 100 million gallons per day (MGD). The treatment plant is designed to handle up to 127 MGD. Thus, the existing UV system at its current location and downstream infrastructure creates a bottleneck effect in the secondary treatment process, limiting the discharge of disinfected final effluent during peak wet weather events. January 5, 2023 EOPS Regular Committee Meeting Agenda Packet - Page 13 of 34 DRAFT Page 2 of 14 On January 11, 2021, Central San initiated a formal public solicitation for engineering services for the UV Disinfection Replacement Project, District Project 100012 (UV Project), and seven consulting engineering firms responded with qualified and responsive proposals. Carollo Engineers Inc. (Carollo) ranked as the top firm and was recommended to be the designer, or engineer of record, for the UV Project. On April 15, 2021, the Board authorized the General Manager to execute a professional engineering services agreement with Carollo in an amount not to exceed $900,000 for planning and pre -design services. To date, a condition assessment of the existing UV system was performed under the UV Project that evaluated alternative state-of-the-art disinfection technologies, such as LED UV, ozone, peracetic acid, and sodium hypochlorite disinfection to determine the optimal disinfection system for Central San. Based on a comprehensive evaluation, continuing with UV disinfection technology was determined as the best path forward. The new UV disinfection system is planned to be constructed adjacent to the south clarifiers and provides multiple benefits. First, it frees the existing UV areas for future secondary capacity needs that may arise due to potential nutrient regulations. Second, it alleviates the existing hydraulic bottleneck in the secondary treatment plant, limiting the discharge of disinfected final effluent during the peak wet weather events as the new UV system will be sized to 127 MGD. As part of the pre -design, Carollo developed the equipment selection package that consists of technical drawings and specifications for UV equipment manufactures. The UV equipment manufactures were determined by performing Business Case Evaluations and included the input of Operations and Maintenance staff. Staff recommended to pre -select the UV equipment manufacturer under a competitive and qualified bid process to complete the UV Project final design with Carollo. The UV manufacturer will also assist in the final design and the pre -purchase contract is intended to be assigned to an installation contractor. Equipment pre -selection and including a UV manufacturer to the final design brings the following advantages: • Construction drawings and specifications will be based on the vendor's actual equipment; • Results in a very complete overall design for the installation contractor, particularly Process and Instrumentation Diagrams (P&I Ds) and Electrical drawings, as the manufacturer's submittals will be approved during design; • Improves overall cost estimate during design; and • Reduces change orders or potential delays in the project timeline. On September 13, 2022, staff advertised a formal Request for Qualifications and Bids on PlanetBids for UV disinfection equipment and design support services. On October 14, 2022, Central San received qualification and bid packages from Trojan Technologies (Trojan) and Wedeco (owned by Xylem). Each bid submittal package contained two parts: Part 1 - Qualifications and Part 2 - Bid. Qualifications included technical requirements, ability to meet dose and disinfection requirements, successful installations designed for municipal wastewater in North America sized similarly to Central San. Central San staff and Carollo conducted an extensive evaluation of the qualifications and determined both suppliers met the qualifications. Bids included costs for UV lamps, banks, sensors, cables, electrical components such as power distribution centers, electrical control panels including programmable logic controllers (PLCs); design services to coordinate the shop drawings with the installation design, workshops with staff and support; optional services such as an extended warranty, equipment storage, cost for an optional additional bank per channel, price escalation or de-escalation, and additional as -needed design services. The equipment basis of selection is a low-cost selection based on a present worth analysis of capital and select operational costs (annual electrical use, annual replacement costs for lamps, ballasts, sleeves, sensors and wipers) over 25-years. Staff opened the bids of both qualified suppliers on November 1, 2022, and received a cost of $9,395,917.54 from Trojan and $11,384,862 from Wedeco. Trojan is the responsive and responsible low bidder. The UV equipment cost for Trojan is $4,341,760 and close to the January 5, 2023 EOPS Regular Committee Meeting Agenda Packet -Page 14 of 34 DRAFT Page 3 of 14 Engineer's estimate of $4,000,000. Wedeco was slightly lower in capital costs but more costly to operate and maintain at a future cost of $2,000,000 more than Trojan. Central San will pay the manufacturer for approved submittals and the installation contractor will pay the balance of the total equipment cost when the purchase agreement is assigned to them. The Bid also required pricing to be provided for additional scope and services. After a detailed evaluation of the optional services, staff is recommending the following be added to the contract: • Storage of UV Disinfection system for up to six months for $18,300. • Three-year warranty extension for $190,117. • Allowance for additional as -needed design assistance for $100,000. • One additional UV bank per channel for $595,000, if needed. An additive item for storage of the UV disinfection system was included due to the possible shift in schedule due to securing electrical equipment to power the UV system under installation contract. Electrical gear is currently the longest lead item for the UV Project and has been difficult to procure within the last two years. Operations staff modified the dissolved oxygen (DO) setpoints in the aeration tanks since June 2022. This modification improved effluent quality and increased ultraviolet transmittance (UVT), one of the UV design parameters. Staff wanted to include the extra UV bank per channel as a conservative measure to meet permit requirements in the event the DO setpoints did not consistently improve water quality. During design, staff will monitor UVT and remove the extra bank from the design if staff and the design team feel Central San will be able to meet disinfection requirements without the extra bank. With procurement complete and the vendor selected, the final design of the UV Project is recommended to move forward. Central San has negotiated a scope and fee with Carollo Engineers for the final design services. Staff is planning to use Carollo to produce up to the 90-percent final design in order to acquire financing from the California State Revolving Fund (SRF). The time required for the design and potential construction of the UV project is noted below: • Complete 90-percent set of project documents by mid-2024 • Final Design and bidding will be based on funding, constructability timeline with other ongoing capital projects, and status of the existing UV system reliability. Bidding is currently estimated in 2025; and • Construction completed by 2029 and in operation by 2030. The existing equipment will have been in service for nearly 37 years and beyond its useful life around this time. Staff is recommending to proceed with the design as stated above, but also because larger and more complex electrical projects take time to complete as experienced with the recent Solids Handling Facility Improvements project. Having the project ready to bid and properly coordinated within the ten-year Capital Improvement Plan will allow Central San to obtain all the useful life from the existing facilities and create a reliable and safe operation replacement timeline of this critical facility at Central San. California Environmental Quality Act (CEQA) Staff has concluded that this project is exempt from the California Environmental Quality Act (CEQA) under Central San's CEQA Guidelines Section 15302 since it involves replacement of existing public facilities at substantially the same location and with the same purpose as the public facilities being replaced. The projects are also exempt under Central San's 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 the Central San's past experience with construction of numerous treatment plant improvement projects of this nature, its long familiarity with the project site, Central San's impact -limiting construction specifications, and the impact -limiting components of the project description. Central San's specifications are standardized general and special conditions that are made part of the project to address environmental considerations, as well as compliance with applicable federal, state, county, district, municipal and local laws, ordinances, orders, and regulations. January 5, 2023 EOPS Regular Committee Meeting Agenda Packet -Page 15 of 34 DRAFT Page 4 of 14 ALTERNATIVES/CONSIDERATIONS The Board may elect to not authorize the purchase agreement and include the equipment for procurement under a general contractor and a Central San construction contract. Central San received a low net present value from a qualified UV equipment vendor and due to the complexity and specialized nature of the installation design, it is recommended to enter into a contract with the vendor to complete shop drawings and finalize the design. The SRF application process and scoring is significantly better when the final design is complete as the project would be viewed as shovel ready. Typically, Central San does not shelve or delay projects for bidding. However, due to the costs and potential impacts with other capital projects such as the Solids Handling Facility Improvements -Phase 1A and the Aeration Diffuser Replacement projects, staff recommends completing the final design and then make sure that other projects do not obstruct or negatively impact operations. Therefore, this alternative is not recommended. FINANCIAL IMPACTS The total anticipated cost for the purchase agreement is $5,500,000, which includes the following: • Item 1: $4,341,761 for UV equipment, spare parts, special tools, design assistance, supervision of installation, testing, training, commissioning, warranty, and support services; • Item 2: $18,600 for storage of UV disinfection equipment for up to six months; • Item 3: $190,117 for a three-year extended warranty; • Item 4: $100,000 for additional as -needed design assistance; • Item 5: $595,000 for an extra bank of UV lamps per channel; and • The remaining amount of $254,522 of contract contingency. Carollo's final design services for the project is estimated at $4,400,000. The UV Project is listed in the Fiscal Year (FY) 2022-23 Budget on page 231 at a total estimated project budget of nearly $68,500,000. There are adequate funds within the current budget and future budget for the final design of this project. COMMITTEE RECOMMENDATION The Engineering & Operations Committee reviewed this matter at its January 5, 2023 meeting and recommended RECOMMENDED BOARD ACTION Staff recommends the following Board action to authorize the General Manager to: 1. Execute a purchase agreement in an amount not to exceed $5.5 million with Trojan Technologies, Group ULC for ultraviolet (UV) disinfection equipment and special services for the UV Disinfection Replacement, District Project 100012; and 2. Amend an existing professional engineering services agreement with Carollo Engineers in an amount not to exceed $4.4 million, increasing the cost ceiling to $5.3 million, for final design services. January 5, 2023 EOPS Regular Committee Meeting Agenda Packet -Page 16 of 34 DRAFT Page 5 of 14 Strategic Plan Tie -In GOAL TWO: Environmental Stewardship Strategy 1 - Achieve compliance in all regulations, Strategy 4 - Identify and advance sustainability initiatives, including reducing energy usage and emissions GOAL FOUR: Governance and Fiscal Responsibility Strategy 3 - Maintain financial stability and sustainability GOAL FIVE: Safety and Security Strategy 2 - Protect Personnel and assets from threats and emergencies GOAL SIX. Infrastructure Reliability Strategy 1 - Manage assets optimally, Strategy 2 - Execute long-term capital renewal and replacement program ATTACHMENTS: 1. Project Location Map 2. Summary of Bids 3. Presentation January 5, 2023 EOPS Regular Committee Meeting Agenda Packet -Page 17 of 34 DRAFT Page 6 of 14 Ultraviolet (UV) Disinfection Replacement Project District Project 100012 Location Map Date: 10/11/2022 Martinezetail Area Concord X \ Pleasant H d n W� I n 1 c J. Y oc Project jam Location m AA Q District -Owned Property Q Project Location and Number Note: 0 400 800 Map Displayed in North American Datum of 1983 Attachment Central San data as of October 2022. H Feet California State Plane, Zone III FIPS O403, US Feet 1 January 5, 2023 EOPS Regular Committee Meeting Agenda Packet -Page 18 of 34 DRAFT Page 7 of 14 Attachment 2 Central Contra Costa Sanitary District REQUEST FOR QUALIFICATIONS AND BID ULTRAVIOLET DISINFECTION EQUIPMENT FOR THE ULTRAVIOLET DISINFECTION REPLACEMENT District Project No. 100012 Draft Summary of Bids Bid Opening: November 1, 2022, 11:00 AM Engineer's Estimate: $4,000,000 No. Bidder Total Bid 1 Trojan Technologies Group ULC $9,395,917.54 2 Xylem Water Solutions USA, Inc./Wedeco $11,384,862.00 Subcontractor Lists Subcontractor Work Description Contractor 1 None Contractor 2 None Bids Opened By: /s/Katie Young January 5, 2023 EOPS Regular Committee Meeting Agenda Packet - Page 19 of 34 DRAFT Page 1 of 1 Page 8 of 14 Attachment 3 1 UV System Background In 1994, Central San installed 18 banks of i UV lamps under the UV Facilities (District Project 7100) in 6 channels In 2006, another 6 banks were added under the UV Expansion Project (DP 7240)�%' in 2 additional channels Fischer -Porter was the original manufacturer and patent holder. The i rights sold several times and now belong to Ironbrook UV in Canada 2 January 5, 2023 EOPS Regular Committee Meeting Agenda Packet - Page 20 of 34 DRAFT 1 Page 9 of 14 Drivers for UV Disinfection Replacement Project Aging Infrastructure • Majority of UV system planned to be in service for nearly 40 years • Staff has excelled at keeping system reliable and operational Sustainability/Optimization • Energy -efficient improvements • Smarter controls (i.e., dosage based on UV transmittance and flows) • Easier maintenance - built-in cleaning systems 3 Proposed UV System Location and Flow Path Removes Hydraulic Bottlenecks 4 MGD = Million gallons per day EXSTI aG � NEW • • O OUT M5ERJIGE Capacity • Review process improvements or optimizations to gain capacity • Addressing hydraulic bottleneck to increase capacity to 127 mgd Regulations • Comply with regulations as disinfection is critical for discharge permit • Use existing basins if -and -when regulations become more restrictive 1. I January 5, 2023 EOPS Regular Committee Meeting Agenda Packet - Page 21 of 34 DRAFT 2 Page 10 of 14 New UV Facilities Location Near the South Clarifiers UV Equipment Supplier Scope of Work UV Disinfection Equipment UV modules, lamps, sensors, power distribution center, lamp and control cables, cleaning and lift mechanisms, controls, instrumentation and controls Spare Parts and Tools Lamps, ballasts, cables, sensors, etc. Design Assistance Shop drawings, design workshops, design support including instrumentation and controls Installation Support Factory testing, field services, including coordinating with the Installation Contractor during Construction for the installation of the equipment, assisting during startup and testing, training, and programming January 5, 2023 EOPS Regular Committee Meeting Agenda Packet -Page 22 of 34 DRAFT 3 Page 11 of 14 Bid Process Timeline UV Disinfection Replacement Project presented to Engineering and Operations (E&O) Committee on March 30, 2021, and announced at the Board meeting on April 15, 2021 Staff posted Request for Qualifications and Bid for UV Disinfection equipment and services on September 13, 2022 Received two submittal packages on October 14, 2022; staff reviewed the qualifications part of each bid package and determined both met all qualifications 7 Bid Results The basis of selection for the vendor was lowest present worth costs consisting of capital and select operational costs (annual electrical use, annual replacement costs for lamps, ballasts, sleeves, sensors and wipers) over 25-years Opened bid packages on November 1, 2022; and received costs of $9,395,917 from Trojan Technologies and $11,384,862 from Wedeco The UV equipment cost for Trojan Technologies is $4,341,760; the Engineer's estimate was $4,000,000 8 January 5, 2023 EOPS Regular Committee Meeting Agenda Packet -Page 23 of 34 DRAFT 4 Page 12 of 14 Total Estimated Equipment Contract Value The total anticipated cost for the vendor contract is up to $5,500,000, which includes the following Item 1: $4,341,761 for UV equipment, spare parts, special tools, design assistance, supervision of installation, testing, training, commissioning, warranty, and support services Item 2: $18,600 for storage of UV disinfection equipment for up to 6 months Item 3: $190,117 for an extended warranty Item 4: $100,000 for additional as -needed design assistance Item 5: $595,000 for an extra bank of UV lamps per channel Remaining amount at around 5% as contingency Amend Engineering Agreement Carollo Engineers, Inc. selected after a competitive formal public solicitation and proposal process Scope of Services include all engineering services from planning to engineering services during construction Final design services negotiated up to $4.4 Million (M) Staff intends to limit scope to 90-percent final design for SRF Loan Application process Staff will not proceed to 100-percent until construction timeline and funding is more accurate SRF = State Revolving Fund 10 January 5, 2023 EOPS Regular Committee Meeting Agenda Packet -Page 24 of 34 DRAFT 5 Page 13 of 14 Project Schedule r 90-percent Design completion by mid-2024 AL 100-percent Design and bidding in 2025, \ at the earliest New UV facilities operational and 4 permitted by 2030; existing UV Facilities turned off and are potential back-up facility - until basins are needed for other uses _ .. . 11 Total Project Budget The total estimate project budget is nearly $68.5 M Mdate® Equipment purchase contract $1,800,000 $0 $1,800,000 anticipated in construction budget $4,680,000 $1,300,000 $5,980,000 Design includes consultant and staff Construction $0 $60,7000,000 $60,700,000 costs 12 January 5, 2023 EOPS Regular Committee Meeting Agenda Packet -Page 25 of 34 DRAFT 6 Page 14 of 14 Authorize the General Manager to: Execute a purchase contract with Trojan Technologies Group ULC for Ultraviolet Recommended Disinfection Equipment and special Board Action services in an amount not to exceed $5,500,000 Amend an existing professional engineering services agreement with Carollo Engineers, Inc. in an amount not to exceed $4.4 million, increasing the cost ceiling to $5.3 million, for final design services for the UV Project 13 14 January 5, 2023 EOPS Regular Committee Meeting Agenda Packet - Page 26 of 34 DRAFT 7