HomeMy WebLinkAbout04.b. Announcement Of Intent to Bid the Solids Handling Facility Improvements, Phase 1a, District Project 7348Page 1 of 8
Item 4.b.
DCENTRALSAN
MEETING DATE: FEBRUARY6, 2023
BOARD OF DIRECTORS
POSITION PAPER
SUBJECT: REVIEW DRAFT POSITION PAPER TO RECEIVE ANNOUNCEMENT OF
INTENTTO BID THE SOLIDS HANDLING FACILITY IMPROVEMENTS,
PHASE 1A, DISTRICT PROJECT 7348; AND GRANT AUTHORITY TO THE
GENERAL MANAGER TO AMEND FOUR EXISTING PROFESSIONAL
ENGINEERING SERVICES AGREEMENTS TO COMPLETE FINAL DESIGN
AND SUPPORT THE BID PHASE OF THE PROJECT, AS MAYBE NEEDED
UP TO A COMBINED TOTAL NOT TO EXCEED $750,000
SUBMITTED BY: INITIATING DEPARTMENT:
NATHAN HODGES, SENIOR ENGINEER ENGINEERING AND TECHNICAL SERVICES -
CAPITAL PROJECTS
REVIEWED BY: EDGAR J. LOPEZ, CAPITAL PROJECTS DIVISION MANAGER
DANEA GEMMELL, PROVISIONAL DIRECTOR OF ENGINEERING AND
TECHNICAL SERVICES
KENTON L. ALM, DISTRICT COUNSEL
ISSUE
The current delegated authority for the General Manager to amend the design agreements issued for the
Solids Handling Facility I mprovements, Phase 1 A, District Project 7348 (Solids Phase 1 A) is $100,000.
I n order to have continuity of as -needed consulting services to support staff through the final design and
bid phase of the Solids Phase 1 A project without delay, staff is requesting the Board grant the General
Manager delegated authority to amend consulting agreements up to $350,000, as may be needed;
however, not to exceed a combined total of $750,000.
BACKGROUND
Preparing and publicly bidding the Solids Phase 1 A is Central San's top priority in the Capital
Improvement Program. This project will improve life safety at the wastewater treatment plant, replace
critical assets and infrastructure, and provide new air pollution control equipment to stay in compliance with
air quality regulations. The major project scope includes, but is not limited to, the following:
Replacing and upgrading the wet scrubbers;
Replacing the solids dewatering equipment (centrifuges and cake pumps);
Making incinerator improvements including burner replacement, updating the control console, and
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replacement of various incinerator appurtenances;
• Building seismic improvements; and
• Optimized electrical and control system replacements focused on the systems being renovated.
The scope above represents the most critical items that were previously bid under the original Solids
Handling Facility Improvements project in early 2021. The remaining scope, which is not included in Solids
Phase 1 A, of ash handling, sludge blending, and other electrical improvements are still under evaluation by
staff and outside consultants. The total estimated project cost for the original solids handling
improvements was approximately $261 million. Staff recommended not to proceed with the original project
and in November of 2021, the Board authorized the redesign and path forward with the Solids Phase 1 A.
The Solids Phase 1A is scheduled to be advertised on March 9 and March 16, 2023. The bid opening is
scheduled for early May 2023, but may be extended depending on questions or input from bidders. The
bid schedule includes a six -week period for bid evaluation and review of State Revolving Fund (SRF)
documents. The bid documents include a 120-calendar day period in which bids cannot be withdrawn to
accommodate the SRF review, which is common practice for large debt financed projects.
Supporting the bid process, addressing contractor or vendor questions, providing outreach can be
significantly important to achieve competitive and successful results. Unlike the previous bid, the Solids
Phase 1 A will not pre -qualify bidders. The project documents identify specific experience and technical
requirements to ensure that capable contractors can bid.
As part of the Solids Phase 1A, staff has updated the pre -selected equipment contracts associated with
the proposed improvements. These include the air pollution control equipment, centrifuges, and cake
pumps. Central San plans to execute or purchase these items directly from the equipment vendors and
coordinate installation with the awarded contractor.
Staff anticipates that finalizing the bid documents, supporting the bid process, reviewing the results, and
equipment contracts will take significant efforts within the five -month period prior to recommending an
award to the Board by July of this year. The Central San team leading these efforts are managing several
professional engineering services agreements and is recommending to increase the agreements costs for
the following consulting firms:
• CDM Smith, Inc. (Lead and dewatering designer);
• ArcSine Engineering (Electrical);
• G HD, Inc. (Incinerator and air pollution control); and
• HDR Engineering, Inc. (Structural non -building seismic)
Providing bid services and costs can vary depending on the input received from bidders. The agreements
noted above are on an as -needed basis when supporting the bid phase. In lieu of revising all the
agreements to a potential high -cost scenario, staff is proposing to allow the General Manager the
delegation to revise the agreements based on Central San's needs during the bidding process. The
authority to increase the agreement value will be used for additional design services, addenda, researching
bid alternatives or vendors, support open houses or field tours, supplement services that would normally
be handled by staff, and many other critical services to help Central San receive the best price obtainable
for this project.
ALTERNATIVES/CONSIDERATIONS
The Board could consider the following alternatives or provide other direction.
Staff has been in contact with potential bidders, aiming to get as much interest as possible. If competitive,
bidders often identify opportunities to refine the design for constructability savings and ease. These
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opportunities allow for better pricing and lower the risk in estimating a construction project. Staff can
recommend amendments for each designer for Board approval, but would prefer the flexibility in allowing a
higher limit for the General Manager's authority to avoid costs overruns during the bid phase.
FINANCIAL IMPACTS
The final preparation of the contract documents and bid phase for the Solids Phase 1 A can reach up to
approximately $1,000,000 of which a total of $750,000 is in consultant costs and $250,000 in staff time.
The engineering agreements for CDM Smith, Inc. (CDM), GHD, Inc. (GHD), ArcSine Engineering
(ArcSine), and HDR Engineering, Inc. (HDR) currently total $3,350,000. If the $750,000 is used during
the five -month timeframe, the revised total will be $4,100,000. Staff expects a higher amount,
approximately $350,000 will be used with CDM, and the remainder with the other three consultants. CDM
is the lead consultant and will assist the Central San team with the majority of activities. A final account of
the consultant costs will be presented to the Board after bids have been received and award of a
construction contract is considered. The current totals for each consultant are shown in the table below:
Consultant
Current Agreement Cost
Estimated Amendment Cost
CDM
$1,400,000
$350,000
GHD
$800,000
$125,000
ArcSine
$800,000
$150,000
HDR
13K 000
$125,000
Total:
$3,350,000
$750,000
The Engineer's estimate for construction is $132,000,000. The total estimated project budget is
$192,000,000 and includes costs spent to date, detailed design, consultant costs, staff time, construction
contract, construction management, and 20-percent contingency.
The Clean Water State Revolving Fund (SRF) program is a federal -state partnership that provides
communities low-cost financing for a wide range of water quality infrastructure projects. Staff has been
coordinating and working with the state for SRF funding for this project. Central San received approval for
a total of $173.1 million and the initial funding agreement has been executed. Upon successful award of
Solids Phase 1A and establishment of the final construction budget, a final SRF agreement will be
executed.
There is adequate funding in the Solids Phase 1 A project to support the estimated costs to bid the project.
COMMITTEE RECOMMENDATION
The Engineering and Operations Committee reviewed this matter at its February 6, 2023 meeting and
recommended
RECOMMENDED BOARD ACTION
Staff recommends the following Board actions related to the Solids Handling Facility Improvements -
Phase 1A, District Project 7348:
1. Receive announcement of intent to advertise bidding of the Project in March 2023; and
2. Grant an increase to the General Manager's delegated authority to amend four existing professional
engineering services agreements (ArcSine Engineering, CDM Smith, Inc., GHD, Inc., and HDR
Engineering, Inc.), as needed, up to $350,000 with a cumulative total not to exceed $750,000 for
final design and bid phase engineering services needed for the Project.
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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. Presentation
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February 6, 2023
Solids Handling
Facility
Improvements,
Phase 1A Update
Bid Announcement and
Consultant Support Services
Edgar J. Lopez, P.E.
Capital Projects Division Manager
Nathan Hodges, P.E.
Senior Engineer
Introduction
Solids Handling Facility Improvements, Phase 1
began in 2017
Solids Handling Facility Improvements, Phase 1A
(Phase 1A) began in November 2021
Reduced scope from Phase 1 ($261 million (M))
Consultants selected and confirmed scope
Re -design as needed and prepare new contract
documents
Phase 1A 100% Final Design and ready to bid by
March 2023
Phase 1A complies with current and future air
regulations, increases safety through seismic and
other improvements, and replaces aging
infrastructure
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Schedule
Phase I A
r Project Acceptance
men I I , I .
Phase IA Phase IA
Bidding Construction
Budget/Funding
Summary
Consultant Authorization
CDM Smith, Inc., GHD, Inc., ArcSine
Engineering, and HDR Engineering, Inc.
Total Estimated Amendments Cost:
$750,000
Amendments cover final design, bidding,
support to staff, re -design, addenda, etc.
Other Existing Agreements
Degenkolb Engineers, Inc., Stanley Chilson,
LLC, and Carollo Engineers, Inc.
U
Project Budget
Engineer's Estimate $132 M
Contingency $13 M
Total Project Cost $192 M
Project Funding
State Revolving Fund Approved $173.1 M
ftCENTPAL SAN
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Phase 1A is Coordinated with
Future Planning (Phase 2)
Planning effort to update long term solids management
strategy for next 50 years + includes Phase 1A improvements
Includes:
Evolving regulations
Condition assessments of other assets
including steam system
Flexibility for changes in solids load that
may occur with nutrient removal scenarios
Estimated remaining useful life for multiple
hearth furnaces (MHFs) and support
equipment after Phase 1A
MACT50 will affect timing of additional air
emissions equipment and Phase 2
Final alternative would construct fluidized bed
incinerators in a new building. Like the MHFs, sludge
would be converted to ash and waste heat recovered
Phase 2 estimated at $400-$500 M and require 7 to 9
years to complete
Initiating Phase 2 at the optimal time would maximize
value of existing infrastructure while minimizing costs to
maintain reliable MHF operation until decommissioning
Z'l_R) CENTRALSAN
Recommendation
Increase the General Manager's
delegated authority to amend
existing professional engineering
services agreements up to
$350,000, with a cumulative total
not to exceed $750,000 for services
needed under the project
/r<�]rLCENTRAL SAN
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Questions?
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