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HomeMy WebLinkAbout08. Receive bid announcement of Solids Handling Facility Improvements-Phase 1A, and authorize exception to the General Managers Authority to amend existing agreements for bid phase services Page 1 of 5 Item 8. CENTRAL SAN BOARD OF DIRECTORS POSITION PAPER MEETING DATE: FEBRUARY23, 2023 SUBJECT: RECEIVE BID ANNOUNCEMENT OF THE SOLIDS HANDLING FACILITY IMPROVEMENTS-PHASE 1A, DISTRICT PROJECT 7348; AND GRANTAN EXCEPTION TO BOARD POLICY NO. 037, DELEGATION OFAUTHORITY TO GENERAL MANAGER, TO AMEND FOUR EXISTING PROFESSIONAL ENGINEERING SERVICES AGREEMENTS, AS MAYBE NEEDED, UP TO A COMBINED TOTAL NOTTO EXCEED $750,000 FOR FINAL DESIGNAND BID PHASE SUPPORT SERVICES 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 Roger S. Bailey Kenton L. Alm General Manager District Counsel ISSUE The 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 per Board Policy No. B P 037. 1 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 an exception to the General Manager delegated authority limits to amend consulting agreements, as may be needed; however, not to exceed a combined total of$750,000 for services rendered under this Project. February 23, 2023 Special Board Meeting Agenda Packet- Page 60 of 122 Page 2 of 5 BACKGROUND Preparing and publicly bidding the Solids Phase 1A is Central San's top priority in the Capital I mprovement 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 replacement of various incinerator appurtenances; • Building seismic improvements; • Optimized electrical and control system replacements focused on the systems being renovated; and • Phase 1A is designed to achieve 15 years-plus of reliability with these critical facilities. 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 planned for 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 1 A, 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 February 23, 2023 Special Board Meeting Agenda Packet- Page 61 of 122 Page 3 of 5 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. This proposed exception to the General Manager's authority is a temporary allowance to complete the Solids Phase 1 A final design and bid period services. For reference,Attachment 1 provides an excerpt from the Board Policy, Exhibit A, that focuses on the Capital I mprovement Program Authorization Limits. 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 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 (Phase 1 and Phase 1A), detailed design, consultant costs, staff time, construction contract, construction management, and 20-percent contingency.A final account of all project costs will be presented at time of award. The Clean Water State Revolving Fund 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. February 23, 2023 Special Board Meeting Agenda Packet- Page 62 of 122 Page 4 of 5 COMMITTEE RECOMMENDATION The Engineering and Operations Committee reviewed this matter at its February 6, 2023 meeting and recommended approval. 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 exception to the General Manager's delegated authority under Board Policy No. BP 037 to allow an increase to four existing professional engineering services agreements (ArcSine Engineering, CDM Smith, Inc., GHD, Inc., and HDR Engineering, Inc.), as may be needed, with a cumulative total not to exceed $750,000 for final design and bid phase engineering services the Project. 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 ATTACHMENTS: 1. BP 037 Exhibit A Excerpt- Capital Authorization Limits February 23, 2023 Special Board Meeting Agenda Packet- Page 63 of 122 Page 5 of 5 Number: BP 037 DELEGATION OF AUTHORITY TO GENERAL MANAGER Page 9 of 9 EXHIBIT A Capital Improvement Program Authorization Limits Action General Manager Board Approve Capital Improvement Plan and Budget None No limit (CIPICIB) Transfer funds to individual project budgets $500,000 or less Greater than$500,000 Professional Consulting Services Enter into Technical Consulting Services $200,000 or less Greater than$200,000 Agreements Professional Engineering Services Amend Amend Agreements<_$2 million $100,000 or less 2 Greater than$100,000 Agreements Amend Agreements>$2 million $200,000 or less 2 Greater than$200,000 Transfer funds from CIB contingency account to $200,000*or less per Greater than$200,000* projects not included in the CIB project 3 Authorize purchase of individual equipment Not to exceed the limit of the No limit items Equipment Budget Authorize supplemental funds to program budgets None No limit and contingency account Award construction contracts 4 $200,000*or less Greater than$200,000* Authorize Additive $200,000*or less Greater than$200,000* Construction No limit; if greater than$200,000, Change Orders Deductive informational announcement to Not applicable Board Authorize subcontractor substitutions All substitutions unless protested Substitutions protested by by subcontractor subcontractor Accept construction projects All projects Informational announcement to Board Close out projects All projects Memo provided to Board at fiscal yearend Acquire easements $200,000 or less Greater than$200,000 Limited by the remaining balances of the applicable program and contingency account. 2 This limit is cumulative. 3 Limited by the remaining balance of the applicable contingency account. 4 Bid protests and rejection of all bids must go to Board with the exception of those under$200,000 and which fall under the provisions of the Uniform Public Construction Cost Accounting Act(UPCCAA)(California Public Contract Code§§22042 and 22042.5). *These limits shall be raised concurrently with changes to the UPCCAA(California Public Contract Code§22032(a),representing the threshold above which formal bidding is required. February 23, 2023 Special Board Meeting Agenda Packet- Page 64 of 122