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Home My WebLink About03.a. Award a Construction Contract in the Amount of $1,035,000 to Alfred Conhagen, Inc. of California for the Aeration Unit 1 Steam Turbine Overhaul, District Project 100054; and Find Exempt from CEQAPage 1 of 6 Item 3.a. CD BOARD OF •' CENTRAL CONTRA COSTA SANITARY DISTRICT POSITION PAPER DRAFT i MEETING DATE: JUNE 20, 2023 SUBJECT: REVIEW DRAFT POSITION PAPER TO AWARD A CONSTRUCTION CONTRACT I N THE AMOUNT OF $1,035,000 TO ALFRED CONHAGEN, I NC. OF CALI FORNIA, FOR THE AERATION UNIT 1 STEAM TURBI NE OVERHAUL, DISTRICT PROJECT 100054;AND FIND THAT THE PROJECT IS EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITYACT (CEQA) SUBMITTED BY: INITIATING DEPARTMENT: ZACHARY LEE, ASSOCIATE ENGINEER ENGINEERINGAND TECHNICAL SERVICES - CAPITAL PROJECTS REVIEWED BY: CLINT SHIMA, SENIOR ENGINEER EDGAR J. LOPEZ, PROVISIONAL DIRECTOR OF ENGINEERING AND TECHNICAL SERVICES NEIL MEYER, PROVISIONAL DIRECTOR OF OPERATIONS GREG NORBY, DEPUTY GENERAL MANAGER ISSUE On May 17 and 24, 2023, the Aeration Unit 1 Steam Turbine Overhaul, District Project 100054 (Project) was advertised for public bid and zero (0) responsive bids were received. Central San has met the statutory requirements for public bidding and now proposes to directly enter into a construction contract with Alfred Conhagen Inc. of California (Conhagen) for the project. BACKGROUND Central San has two aeration units that can provide essential oxygen to the secondary process and other vital systems at the treatment plant. During normal operations, one unit runs continuously while the other is ready as the standby backup. These units are alternated based on Operations and Maintenance considerations and were overhauled in 2004. Both units have not required major maintenance work or activities since the overhaul, until last year, when Aeration Unit 2 was found to have significant wear within the steam turbine side of the equipment. Maintenance and Capital Projects staff collaborated to urgently repair the equipment, performed a major overhaul, and returned the unit back to service in preparation for the peak aeration season. June 20, 2023 Special EOPS Committee Meeting Agenda Packet - Page 3 of 19 Page 2 of 6 The aeration units are original from the 1970s treatment plant expansion and are roughly 50 years of age. Since the units are alternated, each unit has an estimated operating time of 25 years. The failure experience in Aeration Unit 2 is rare, and according to maintenance history, this is the first time that any of the units have had such repair work completed. Steam turbines can have significant life spans when properly maintained and are well known to have operational life that often exceeds 50 years. Based on expert input and condition assessments, the aeration units have a minimum of 20 years of remaining life and performing an overhaul to Aeration Unit 1 is recommended by staff to reliably operate both units for years to come. This Project will overhaul the Aeration Unit 1 steam turbine and trip safety valves, which includes removing existing diaphragms and rotor from the steam turbine to clean and conduct damage assessment, carrying out necessary modifications to the spare rotor to put it in the steam turbine, machining the nozzle block and labyrinth seal, along with new throttle valve seats, plunger, stem, snap ring, and carbons for the throttle valve. This Project is expected to be completed in 90 days. Aeration Unit 2 will be operated during this time with the new neuro blowers as backup to maintain the treatment plant process. Central San staff prepared the plans and specifications for the Project. The Engineer's estimate is $1,100,000. One bid of $1,035,000 from Conhagen was received and publicly opened on June 7, 2023. Upon review of the bid documents, a material omission or mistake was discovered. Conhagen's bid did not include the required bid bond at the time of bid. Conhagen had forgotten to include the bid bond and provided proof after the bid had been opened. Not including a bid bond is grounds for declaring a bid non - responsiveness and staff can not recommend any remedy to correct the mistake as a bid bond is a material item. District legal has reviewed staff's recommendation and is confident the District has met the statutory obligations for fair and public bidding, and Central San can now enter into a negotiated contract directly for the work with a Contractor. Conhagen has been contacted by staff and is willing to honor the bid price received on June 7th for the project. Conhagen is a specialty contractor that is uniquely qualified to perform the services required under the project and has worked at Central San in the past as they successfully repaired Aeration Unit No. 2 last year. Central San will administer the construction contract and provide contract administration, inspection, and office engineering. Consultant services maybe required as needed. CEQA Staff has concluded that this Project is exempt from CEQA under Central San CEQA Guidelines Section 15301, since it involves minor alterations to existing public facilities involving no expansion of use. Approval of this Project will establish the Board's independent finding that this Project is exempt from CEQA. ALTERNATIVES/CONSIDERATIONS This Project was derived from the emergency work performed last year. The steam turbines and system were evaluated under the Steam and Aeration Blower Systems Renovations, District Project (DP) 7349. Staff developed a future concept and project under DP7349 to potentially replace the aeration units with a steam generator to provide electricity for the electric blowers (currently the new emergency blowers). The steam generator concept has several benefits, such as improved energy efficiency and additional redundancy. The steam turbine is listed in the Ten -Year Capital Improvement Plan as the Steam Renovations, Phase 2, planning starting in about four years, Fiscal Year (FY) 2027-28 and may change depending on the drivers or the business case and timing for a steam generator. June 20, 2023 Special EOPS Committee Meeting Agenda Packet - Page 4 of 19 Page 3 of 6 As an alternative, the Board could not enter into the contract and recommend options such a re -bidding or potentially negotiate the same scope with another contractor. Staff has evaluated these alternatives and do not recommend proceeding in that manner for the following reasons: 1) turbine contractors are limited in California as the work is specialized and found more in the mid and east coast of the country. 2) Only one other bidder was interested and informed staff that they did not participate since pricing would have been higher than the engineer's estimate. 3) Time is of the essence as staff recommends this work to be completed within the timeframe identified in the project. . FINANCIAL IMPACTS The total estimated project cost is approximately $1,271,000 which includes design, bid price, contingency, inspection, and construction management as detailed in Attachment 3. This Project is included in the FY2023-24 Budget on page 277 and has a total budget of $1,200,000. Remaining amount is within staff authority and will be funded from the Capital Improvements Budget contingency account. COMMITTEE RECOMMENDATION The Engineering and Operations Committee reviewed this matter at the June 12, 2023 meeting and recommended RECOMMENDED BOARD ACTION Staff recommends the following: 1. Find that the Project is exempt from CEQA; 2. Award a construction contract in the amount of $1,035,000 to Conhagen, for the Aeration Unit 1 Steam Turbine Overhaul, District Project 100054; and 3. Authorize the General Manager to execute the Contract Documents subject to submittal requirements. Strategic Plan Tie -In 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. Post B id/P reconstruction Estimate June 20, 2023 Special EOPS Committee Meeting Agenda Packet - Page 5 of 19 Page 4 of 6 D ■ !z� 0 200 400 FEET Basin A South PROJECT AREA AERATION UNIT OVERHAUL Al \� 04, s 0 SOLIDS \�\ NDITIONI BUILDIN 1� I \ o 0 0 II 0 CL IERS (SOU UAD) n j PRIMARY O S DIMENTATI N TANKS u ❑ PbMP ANJ BLOWER BUI DING -- o % ° —L POD HOB of IMHOFF PLACE Central Contra Costa Attachment Sanitary District AERATION UNIT 1 STEAM TURBINE OVERHAUL ' DISTRICT PROJECT 100054 1 LOCATION MAP June 20, 2023 Special EOPS Committee Meeting Agenda Packet - Page 6 of 19 Page 5 of 6 ATTACHMENT 2 AERATION UNIT 1 STEAM TURBINE OVERHAUL DISTRICT PROJECT 100054 SUMMARY OF BIDS PROJECT NO.: 100054 NO. OF ADDENDA: 0 DATE/TIME: JUNE 7, 2023 /2 PM PROJECT NAME: AERATION UNIT 1 STEAM TURBINE OVERHAUL PROJECT MANAGER: ZACHARY LEE PROJECT LOCATION: 5019 IMHOFF PLACE, MARTINEZ, CA ENGINEER'S EST.: $1,100,000 NO. BIDDER BID PRICE 1 Alfred Conhagen Inc. of California $1,035,000 Benicia, CA 94510 BIDS OPENED BY: /s/Stacey Durocher June 20, 2023 Special EOPS Committee Meeting Agenda Packet - Page 7 of 19 DATE: June 7, 2023 Page 6 of 6 ATTACHMENT 3 AERATION UNIT 1 STEAM TURBINE OVERHAUL DISTRICT PROJECT 100054 POST-BID/PRECONSTRUCTION ESTIMATE No. Item Description Amounts % Of Construction Cost 1 CONSTRUCTION a. Construction Contract $1,035,000 b. Contingency at 15% $156,000 SUBTOTAL - CONSTRUCTION $1,191,000 100% 2 CONSTRUCTION MANAGEMENT a. District Forces - Construction Management $50,000 - Operations Support $10,000 SUBTOTAL - CONSTRUCTION MANAGEMENT $60,000 5% 3 PREBID EXPENDITURES a. Engineering (Planning, Design, Drafting, POD Coordination) $20,000 SUBTOTAL - PREBID EXPENDITURES $20,000 2% 4 TOTAL ESTIMATED PROJECT COST $1,271,000 June 20, 2023 Special EOPS Committee Meeting Agenda Packet - Page 8 of 19