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Home My WebLink About03.a. Contract for $11,449,000 w/ Bid Add for $1,213,000 to C. Overaa & Co. for Aeration Basins Diffuser Replacement, Ph.1, DP100019; and a PE agreement to HDR Engineering for $1,000,000Page 1 of 7 Item 3.a. DCENTRALSAN BOARD OF DIRECTORS POSITION PAPER DRAFT MEETINGDATE: JULY10,2023 SUBJECT: REVIEW DRAFT POSITION PAPER TO AWARD A CONSTRUCTION CONTRACT I N THE AMOUNT OF $11,449,000 TO C. OVERAA & CO., THE LOWEST RESPONSIVE AND RESPONSIBLE BIDDER FOR AERATION BASINS DIFFUSER REPLACEMENT, PHASE 1, DISTRICT PROJECT 100019; INCLUDE AWARD OF AN ADDITIVE BID ITEM IN THE AMOUNT OF $1,213,000 FOR SEISMIC UPGRADES; EXECUTE A PROFESSIONAL ENGINEERING SERVICES AGREEMENT INANAMOUNT NOTTO EXCEED $1,000,000 WITH HDR ENGINEERING, INC. TO PROVIDE ENGINEERING SERVICES DURING CONSTRUCTION; AND FIND THE PROJECT IS EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITYACT (CEQA) SUBMITTED BY: INITIATING DEPARTMENT: WILLIAM GRANT, ASSOCIATE ENGINEER ENGINEERING AND TECHNICAL SERVICES - CAPITAL PROJECTS REVIEWED BY: CRAIG MIZUTANI, SENIOR ENGINEER EDGAR J. LOPEZ, PROVISIONAL DIRECTOR OF ENGINEERING AND TECHNICAL SERVICES GREG NORBY, DEPUTY GENERAL MANAGER ISSUE The Board of Directors (Board) must consider award of the contract or reject bids within 50 days of the bid opening. Authorization is also required for the General Manager to execute a professional engineering services agreement in an amount over $200,000. BACKGROUND The existing aeration system in the treatment plant (plant) is not able to reliably maintain consistent air levels across the basins due to the deficient and fouling diffuser system. The concrete basin plenums have been a problem for many years and waste energy. This has led to concerns over the ability to consistently meet National Pollutant Discharge Elimination System (NPDES) discharge limits, future nutrient removal requirements, and the overall useful life of the aeration basins system. A detailed condition assessment of the aeration system was completed as part of the Steam and Aeration July 10, 2023 EOPS Regular Committee Meeting Agenda Packet - Page 3 of 45 Page 2 of 7 Blower Systems Renovations, District Project 7349. The assessment recommended diffuser replacement, mechanical asset rehabilitation/replacement, controls upgrades, concrete repairs, and structural improvements. This Project is intended to address these issues to prolong the remaining useful life of the aeration basins and to continue meeting regulatory requirements and coordinate with potential future changes in mind, such as nutrient removal. This Project generally consists of the renovation of Aeration Basins Tank 1 A, 1 B, 1 C & 1 D, and includes demolition, structural, mechanical, electrical, instrumentation, and controls associated with diffuser replacement. The Project is located within the plant, as identified in Attachment 1. Central San and HD Engineering, Inc. (HDR) prepared the plans and specifications for the Project. The Engineer's Estimate for construction is $16,000,000. This Project was advertised on May 1 and May 8, 2023. Seven (7) sealed bids ranging from $11,449,000 to $17,885,100 were received and publicly opened on June 6, 2023. The Engineering Department conducted a technical and commercial review of the bids and determined that C. Overaa and Co. (Overaa) is the lowest responsive and responsible bidder. A summary of bids received is shown in Attachment 2. The bids received were very competitive, and Overaa has reviewed their escrow documents and has no issues with their pricing. Overaa is on site at the plant and currently working on two other capital projects. Bids for seismic strengthening with fiber -reinforced polymer (FRP), an additive bid item, ranged from $445,129 to $1,408,000. The Engineer's Estimate is $2,200,000, and Overaa provided a bid price in the amount of $1,213,000. This item was included in the Project as an additive item because there was uncertainty whether the Contractors would be able to complete the work within the seasonal constraints provided in the contract. Overaa, the specialty FRP contractor, and staff have discussed this topic, and the schedule can accommodate the proposed work. Therefore, staff recommends including this work to improve seismic performance of the structures and due to the savings received in the low bid. Central San will administer the construction contract and provide contract administration, survey, office engineering, and submittal review. Construction inspection will be provided by a third party who will supplement staff on an as -needed basis. Staff recommends that HDR, the designer of the Project, be retained to provide engineering services during construction (ESDC) for Phase 1, as well as RAS Piping Renovations, DP 100051, which was awarded at the March 16, 2023 Board Meeting. Staff has negotiated the scope of work and fees for the ESDC work to be performed on an as -needed basis. CEQA: Staff has concluded that this Project is exempt from the California Environmental Quality Act (CEQA) under Central San's CEQA Guidelines Section because it involves minor alterations to existing public facilities involving no expansion of use. Approval of this Project will establish the Board of Directors' independent finding that this Project is exempt from CEQA. ALTERNATIVES/CONSIDERATIONS 1. Reject all bids, which is not recommended because of the favorable bid pricing and the need to restore reliable aeration air to the biological process within the basins. 2. Reject the additive bid item for seismic strengthening of the basin structures with FRP in the amount of $1,213,000. This work is a preventative measure to protect the aeration basins in the event of a seismic event and to upgrade the structures to current seismic code for underground tanks. Preparing the basins for this type of work or any shutdown requires a significant amount of work by staff. Postponing the seismic improvements and conducting the work as a standalone Project would significantly increase the project costs for the work, as additional cleaning and protecting the new diffuser system would be required along with other activities. Allowing the FRP work to be installed before the new diffuser system is installed is a cost -benefit to the Project. July 10, 2023 EOPS Regular Committee Meeting Agenda Packet - Page 4 of 45 Page 3 of 7 FINANCIAL IMPACTS The total estimated project cost is $20,879,000, which includes the planning, design, bidding, construction contract, District -furnished equipment (diffuser system), construction management, consultants, and contingency, as detailed in Attachment 3. This Project is a phase of the Aeration Basins Diffuser Replacement, DP 100019, included in the Fiscal Year (FY) 2023-24 Capital I mprovement Budget (CI B) on page 266 with a total estimated project budget of $59,480,000. This Project, Phase 1, was estimated at $25,000,000; therefore, a savings of upwards of $4,121,000 is expected. The adjustments to future budgets will be made after the award of the Project. COMMITTEE RECOMMENDATION The Engineering and Operations Committee reviewed this matter at its meeting on July 10, 2023, and recommended RECOMMENDED BOARD ACTION Staff recommends the following: 1. Award a construction contract in the amount of $11,449,000 for the construction of the Aeration Basins Diffuser Replacement, Phase 1, District Project 100019, to C. Overaa & Co., the lowest responsive and responsible bidder; 2. Award the additive bid item for fiber -reinforced polymer seismic strengthening in the amount of $1,213,000, increasing the construction contract to $12,662,000; 3. Authorize the General Manager to execute the Contract Documents subject to submittal requirements: and 4. Authorize the General Manager to execute a professional engineering services agreement in an amount not to exceed $1,000,000 with HDR Engineering, Inc. to provide engineering support during construction services; and 5. Find the project is exempt from the California Environmental Quality Act (CEQA) Strategic Plan Tie -In GOAL ONE: Customer and Community Strategy 1— Deliver high -quality customer service 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 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 July 10, 2023 EOPS Regular Committee Meeting Agenda Packet - Page 5 of 45 Page 4 of 7 ATTACHMENTS: 1. Project Location Map 2. Summary of Bids 3. Post B id/P reconstruction Estimate July 10, 2023 EOPS Regular Committee Meeting Agenda Packet - Page 6 of 45 Page 5 of 7 Aeration Basins Diffuser Replacement, Phase 1 District Project 100019 Map Date: 6/21/2023 rro Martinez fr Project Location Detail Area Concord Pleasant Hill 0 _ o O o q) Q� 3 o Coo c ❑ 0 OJ 0 as Q Project Location Q District -Owned Property Note: 0 200 400 Map Displayed in North American Datum of 1983 Attachment Central San data as of June 2023. H Feet California State Plane, Zone III FIPS O403, US Feet 1 July 10, 2023 EOPS Regular Committee Meeting Agenda Packet - Page 7 of 45 Page 6 of 7 ATTACHMENT 2 AERATION BASINS DIFFUSER REPLACEMENT, PHASE 1 DISTRICT PROJECT 100019 SUMMARY OF BIDS PROJECT NO.: 100019 NO. OF ADDENDA: 3 DATE/TIME: JUNE 6, 2023 /2 PM PROJECT NAME: AERATION BASINS DIFFUSER REPLACEMENT, PHASE 1 PROJECT MANAGER: WILLIAM GRANT PROJECT LOCATION: 5019 IMHOFF PLACE, MARTINEZ, CA ENGINEER'S EST.: $16,000,000 NO. BIDDER BID PRICE 1 C. Overaa & Co. $11,449,000 Richmond, CA 94801 2 GSE Construction Company, Inc. $12 996 600 Livermore, CA 94551 ' 3 W.M. Lyles Co. $14,444,800 Fresno, CA 93711 4 Mountain Cascade, Inc. $15,290,964 Livermore, CA 94550 5 Garney Pacific, Inc. $16,070,000 Tracy, CA 95391 6 Anvil Builders, Inc. $16,963,000 Emeryville, CA 94608 7 Myers & Sons Construction LLC $17 885 100 Sacramento, CA 95838 ' BIDS OPENED BY: /s/Eileen Hansen DATE: 6/6/23 July 10, 2023 EOPS Regular Committee Meeting Agenda Packet - Page 8 of 45 Page 7 of 7 ATTACHMENT AERATION BASINS DIFFUSER REPLACEMENT, PHASE 1 DISTRICT PROJECT 100019 POST-BID/PRECONSTRUCTION ESTIMATE No. Item Description Amounts % Construction Cost 1 CONSTRUCTION a. Construction Contract $11,449,000 b. Additive Bid Item - Seismic FRP $1,213,000 c. Contingency at 15% $1,717,000 d. Equipment Pre -purchase (Diffuser/Breakers) $950,000 SUBTOTAL - CONSTRUCTION $15,329,000 100% 2 CONSTRUCTION MANAGEMENT a. District Forces Operations $250,000 Construction Management $1,050,000 b. Outside Services Inspection $650,000 Specialty inspection and material testing $250,000 Engineering Support (HDR) $1,000,000 SUBTOTAL - CONSTRUCTION MANAGEMENT $3,200,000 21 % 3 PREBID EXPENDITURES a. Engineering (Staff and Consultant) $2,350,000 SUBTOTAL - PREBID EXPENDITURES $2,350,000 15% 4 TOTAL PROJECT COST $20,879,000 July 10, 2023 EOPS Regular Committee Meeting Agenda Packet - Page 9 of 45