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Home My WebLink About03.a. Construction Contract Change Order $405,000 Auburn Constructors, LLC Electric Blower Improvements, DP 100015; Treatment Plant Piping PH10, DP 7369; Budget Transfer $895,000 from CIB ContingencyPage 1 of 13 Item 3.a. DCENTRALSAN BOARD OF DIRECTORS POSITION PAPER DRAFT MEETING DATE: MARCH 6, 2024 SUBJECT: REVIEW DRAFT POSITION PAPER TO AUTHORIZE THE GENERAL MANAGER TO EXECUTE A CONSTRUCTION CONTRACT CHANGE ORDER IN THE AMOUNT OF $405,000 WITH AUBURN CONSTRUCTORS, LLC TO REMOBILIZE AND COMPLETE CONSTRUCTION OF THE ELECTRIC BLOWER IMPROVEMENTS, DISTRICT PROJECT 100015AND TREATMENT PLANT PIPING RENOVATIONS, PHASE 10, DISTRICT PROJECT 7369; AND AUTHORIZE A BUDGET TRANSFER IN THE AMOUNT OF $895,000 FROM THE CAPITAL IMPROVEMENT BUDGET CONTINGENCY SUBMITTED BY: INITIATING DEPARTMENT: NANCY MOLINA, ASSOCIATE ENGINEER ENGINEERINGAND TECHNICAL SERVICES - CAPITAL PROJECTS REVIEWED BY: CRAIG MIZUTANI, SENIOR ENGINEER EDGAR J. LOPEZ, CAPITAL PROJECTS DIVISION MANAGER GREG NORBY, DEPUTY GENERAL MANAGER - OPERATIONS ROGER S. BAILEY, GENERAL MANAGER ISSUE Authorization from the Board of Directors (Board) is required to execute a construction contract change order in amount greater than $200,000 and to transfer funds more than $500,000 within the Capital Improvement Program. BACKGROUND On July 15, 2021, the Board authorized a total estimated project budget of $18,845,000, including the pre- purchase of $3,500,000 for three blowers, and awarded an installation and construction contract for $9,594,300 to Auburn Constructors, LLC (Auburn) under the Electric Blower Improvements, District Project 100015 and Treatment Plant Piping Renovations, Phase 10, District Project 7369 (Project). The major Project components and improvements include the following: • Electric Blower Improvements -Installation of three new 35,000 standard cubic feet per minute electric blowers, variable frequency drives (VFDs), chillers, replacement filter houses, major electrical components, and control equipment. March 6, 2024 EOPS Regular Committee Meeting Agenda Packet - Page 3 of 45 Page 2 of 13 Other facility improvements were required in the Pump and Blower Building to accommodate the new large electrical transformers under the Project. I n general, the new facilities will provide full redundancy for backup or emergency conditions for the blowers and allow for safe and reliable operations with the existing standby generators during power outages, PG&E Public Safety Power Shutoffs or planned shutdowns related to other projects like the ongoing Solids Handling Facility Improvements, Phase 1 A. Treatment Plant Piping Renovations, Phase 10 - Renovation and/or replacement of various piping, instrumentation, and equipment in the treatment plant (plant) that have been identified by Engineering, Operations, and Maintenance staff as in need of immediate replacement. This work included replacement of the secondary scum piping system, replacement and improvements to the sodium hypochlorite injection system, and various improvements to the potable water system. The project also plans to replace electrical equipment such as the VFDs for the Primary Effluent pumps and other equipment. Construction of the Project commenced in September of 2021 and was originally scheduled to be completed by November 1, 2022. To date, most of the improvement work in and around the Pump and Blower Building and clarifiers has been completed. The new electric blowers are in operation and the remaining work to be completed are related to the plant renovation project and two long lead electrical items that have been extremely difficult to obtain as detailed below: New specialized and custom motor control centers that include built-in VFDs for the Hypo Chlorite Site 1. 2. Replacement of a customized VFD for the 450 horse -power Primary Effluent Pump 3. This work has also been postponed due to the operational constraint related to the wet weather season ending in April -May. Auburn demobilized from the plant as of September 2023. Staff has been working and negotiating a change order with Auburn using the contract provisions allowed to complete the Project. After several meetings, staff reached a cost to perform the remaining work noted above along with the associated impacts and additional costs such as remobilization and demobilization, costs for subcontractors, time extension, equipment, materials, and allowable costs for labor. I n addition to the contractor's costs, staff is requesting additional funding to cover construction management, staff, and other consultant costs previously spent and to close the project. The proposed change order will include the time required to complete the work and will not commence until all equipment is on site and Central San is ready for installation. As of now, Auburn is expected to return in May and complete the work by August of this year. CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA- At its July 15, 2021 meeting, the Central San Board of Directors independently found that this Project is exempt from CEQA under Central San's CEQA Guidelines Section 15301, since it involves replacement of existing sewer facilities at substantially the same locations and with the same purpose and level of activity as the facilities being replaced. March 6, 2024 EOPS Regular Committee Meeting Agenda Packet - Page 4 of 45 Page 3 of 13 ALTERNATIVES/CONSIDERATIONS There is only one practical alternative outside staff's approach and is noted below: Alternative 1 — Do not complete the remaining contract work with Auburn and do not authorize a construction contract change order. This alternative would require staff to renegotiate final contract costs and the remaining items would need to be installed by a different contractor through other contractual solutions such as another project. The remaining work is a high priority and includes critical assets and recommended to be replaced this summer. Auburn has purchased all equipment and other materials for the Project, and their workmanship has been of high quality and very well received by staff. Auburn is also already familiar with the site and the challenges associated with the construction sequence. The change order being recommended is the most economical solution and lowers the risk of additional delays or other complications for the needed replacement work. FINANCIAL IMPACTS The additional costs needed for the Project is $895,000, which includes the $405,000 change order, $430,000 for construction management, and $60,000 for contingency to close the Project. The current total estimated project budget is $18,845,000 and includes costs spent to date as follows: • $13,104,000 construction costs including equipment contract (94 percent spent) • $ 2,250,000 construction management (112 percent spent) • $ 1,440,700 contract contingency (98% allocated for change orders) • $ 2,050,000 planning and design (100 percent spent) $18,845,000 Upon Board approval, the new total estimated project budget will be $19,740,000. The $895,000 funding required will be transferred from the Capital Improvement Budget Contingency account, which has $2,565,000 available this fiscal year. COMMITTEE RECOMMENDATION The Engineering and Operations Committee reviewed this matter at its March 6, 2024 meeting and recommended RECOMMENDED BOARD ACTION Staff recommends the following: Authorize the General Manager to execute a construction contract change order in the amount of $405,000 with Auburn Constructors, LLC to remobilize and complete the Electric Blower Improvements, District Project 100015 and Treatment Plant Piping Renovations, Phase 10, District Project 7369; and 2. Authorize a budget transfer in the amount of $895,000 from the Capital Improvement Budget Contingency to fund the Project. Strategic Plan Tie -In GOAL ONE: Customer and Community Strategy 1— Deliver high -quality customer service March 6, 2024 EOPS Regular Committee Meeting Agenda Packet - Page 5 of 45 Page 4 of 13 GOAL TWO: Environmental Stewardship Strategy 1 - Achieve compliance in all regulations 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 March 6, 2024 EOPS Regular Committee Meeting Agenda Packet - Page 6 of 45 Page 5 of 13 March 6, 2024 Electric Blower Improvements, District Project (DP) 100015 and Treatment Plant (TP) Piping Renovations, Phase 10, DP 7369 Additional Budget and Change Order Request Engineering and Operations Committee Meeting Edgar J. Lopez, P.E. Capital Projects Division Manager 1 Two Projects Combined 1.Electric Blower Improvements: Three New 1MW Magnetic Bearing Electric Blowers and Electrical Panels Three New Chillers Three New Filter Houses Canopy Covered Medium Voltage Switchgear and Transformers 2 Attachment 1 i Fkl March 6, 2024 EOPS Regular Committee Meeting Agenda Packet - Page 7 of 45 1 Page 6 of 13 New Electric Blowers New Blower System Improvements March 6, 2024 EOPS Regular Committee Meeting Agenda Packet - Page 8 of 45 2 Page 7 of 13 Second Project Background 4 2. TP Piping Renovations, Phase 10: Replaced Scum Piping, Gates, and Electrical for Both North and South Quad Clarifiers Replaced Centrate Piping in the Solids Conditioning Building Replaced 3W HP and LP Piping Replaced Hydropneumatic 1W Tank, Piping, Compressor, and Electrical Panels 3WHP Pumps 1 and 2 Variable Frequency Drive (VFD) Replacements Boiler Chemical Piping Replacementk4 S. Hypo Site 1 Improvements Replace Primary Effluent VFD 5 _PpWEREX ._ 1 � Awarded Project Budget July 2021 General Contractor: Auburn Constructors, LLC (Auburn) Construction Contracts: Contingency: Construction Costs: Construction Management: Prebid Expenditures (Design): Total Estimated Project Budget: I $ 13,104,300 $ 1,440,700 (10.9%) $ 14,545,000 (100%) A $ 2,250,000 (15.5%) B S 2,050,000 (14.1%) C $ 18,845,000 (A+B+C) March 6, 2024 EOPS Regular Committee Meeting Agenda Packet - Page 9 of 45 3 Page 8 of 13 Contract Status Today Construction Contracts: Contingency Approved: Change Orders: $13,104,000 ($800K remains) $1,440,700 (98% allocated) Agreed Extra Work at Roughly $970,000 To Date $450,000 of Costs Being Reviewed Time Extensions, Auburn Demobilized on September 1, 2023 Current Plan to Finish Auburn Demobilized after Blowers Commissioned Waiting for Electrical Gear to Arrive and Schedule Work after April Issue a Change Order to Remobilize and Complete the Remaining Work All Equipment Must Be Onsite Prior to Moving Forward to Be More Efficient and Cost Effective_ Major Work includes Hypo Site 1 Improvements and Primary Effluent VFD ' �, Replacement E:3 March 6, 2024 EOPS Regular Committee Meeting Agenda Packet - Page 10 of 45 4 Page 9 of 13 0 Change Order Scope Total Cost of $405,000 and Includes: Mobilization and Demobilization Costs Costs for Subcontractors, Such as Coatings Costs of Labor and Installation Equipment Insurance and Bonding Costs Extended Time to Complete the Work within 90 Calendar Days Weather Related Construction Constraints Prevents Future Claims SI] March 6, 2024 EOPS Regular Committee Meeting Agenda Packet - Page 11 of 45 5 Page 10 of 13 Overall Budget Request Change Order: $ 405,000 Additional Construction Management: $ 430,000 ** Contingency to Close Out: 60,000 Total Budget Needed: $ 895,000 Original Completion Date: November 1, 2022 Estimated Completion Date: August 1, 2024 (20 mo.) * Change order costs of $405K and $800K contract work remaining, total of $1.2 million. ** CM budget overspent by $230,000 to date due to extended construction time. 11 Reasons for Extended Time Major Electrical Equipment Procurement i Electric Blower Improvements �. MV Switchgear oil Busway r� Selector Panel TP Piping Renovations, Phase 10► VFDs (3) 07 Motor Control Centers (3) 12 March 6, 2024 EOPS Regular Committee Meeting Agenda Packet - Page 12 of 45 6 Page 11 of 13 Reasons for Extended Time CIO and Project Costs COVID Supply Chain Issues.,, Operational Constraints and Coordination —� Complex Project Specialized Equipment Temporary Equipment Used.. Change Orders for Additional Work Longer Duration for Construction Management Costs 13 Revised Project Budget Construction Contracts: Change Orders: Contingency Close Out: New Construction Costs Construction Management: Prebid Expenditures: 14 $ 13,104,000 $ 1,840,000 (14.0%) $ 60,000 $ 15,004,000 (100%) $ 2,686,000 (17.9%) $ 2,050,000 (13.7%) $ 19,740,000 (4.7% Overrun) March 6, 2024 EOPS Regular Committee Meeting Agenda Packet - Page 13 of 45 Page 12 of 13 Bid Results and Initial Cost Savings PROJECT NOS.: 100015 & 7369 NO. CF ADDENDA: 2 DATEFFIME: JULY 1. 2021112.00 PM PROJECT NAME: ELECTRIC BLOWER IMPROVEMENTS& TREATMENT PLANT PIPING RENOVATIONS. PHASE 10 PROJECTMANAGER: NANCYMOLINA PROJECT LOCATION: 5019 IMHOFF PLACE MARTINEZ, CA ENGINEER'S ESTIMATE: $14,000000 NO. BIDDER BID PRICE 1 Aubum Constructors, LLC S9,394,390 Sacramento, Califomia 2 C. Overaa & Co. 510,462.,000 Richmond, California 3 Mountain Cascade, Inc. 510,979.,D47 Livermore, Califomia 15 A Recommended Board Actions Staff recommends the following: Authorize the General Manager to execute a construction contract change order in the amount of $405,000 with Auburn Constructors, LLC to remobilize and complete the Electric Blower Improvements, District Project 100015 and Treatment Plant Piping Renovations, Phase 10, District Project 7369; and Authorize a budget transfer in the amount of $895,000 from the Capital Improvement Budget Contingency to fund the Project. 16 ;.f March 6, 2024 EOPS Regular Committee Meeting Agenda Packet - Page 14 of 45 8 Page 13 of 13 Questions? 17 March 6, 2024 EOPS Regular Committee Meeting Agenda Packet - Page 15 of 45 9