HomeMy WebLinkAbout08. 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 100015 and Treatment PItem 8.
BOARD OF DI RECTORS
POSIT ION PA PER
M E E T ING D AT E:MA R C H 21, 2024
S UB J E C T: A UT HO R I Z E T HE G E NE R A L MA NA G E R TO E X E C UT E A C O NS T R UC T I O N
C O NT R A C T C HA NG E O R D E R I N T HE A MO UNT O F $405,000 W I T H
A UB UR N C O NS T R UC TO R S, L L C TO R E MO B I L I Z E A ND C O MP L E T E
C O NS T R UC T I O N O F T HE E L E C T R I C B L O W E R I MP R O V E ME NT S ,
D I S T R I C T P R O J E C T 100015 A ND T R E AT ME NT P L A NT P I P I NG
R E NO VAT I O NS, P HA S E 10, D I S T R I C T P R O J E C T 7369; A ND A UT HO R I Z E A
B UD G E T T R A NS F E R I N T HE A MO UNT O F $895,000 F R O M T HE C A P I TA L
I MP R O V E ME NT B UD G E T C O NT I NG E NC Y
S UB M I T T E D B Y:
NA NC Y MO L I NA , A S S O C I AT E E NG I NE E R
I NI T I AT I NG D E PART M E NT:
E NG I NE E R I NG A ND T E C HNI C A L S E RV I C E S-
C A P I TA L P R O J E C T S
RE V IE WE D B Y:C R A I G MI Z UTA NI , S E NI O R E NG I NE E R
E D G A R J . L O P E Z , C A P I TA L P R O J E C T S D I V I S I O N MA NA G E R
G R E G NO R B Y, D E P UT Y G E NE R A L MA NA G E R - O P E R AT I O NS
R oger S . B ailey
General Manager
IS S UE
Authorization from the B oard of D irectors (B oard) 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 C apital
I mprovement Program.
B AC K G RO UND
On J uly 15, 2021, the B oard 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 f or
$9,594,300 to A uburn Constructors, L L C (Auburn) under the Electric B lower I mprovements, D istrict
Project 100015 and Treatment Plant Piping Renovations, P hase 10, District P roject 7369 (Project). T he
March 21, 2024 Regular Board Meeting Agenda Packet - Page 47 of 195
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major Project components and improvements include the f ollowing:
Electric B lower I mprovements - I nstallation of three new 35,000 standard cubic f eet per minute
electric blowers, variable frequency drives (V F D s), chillers, replacement filter houses, major
electrical components, and control equipment.
Other f acility improvements were required in the Pump and Blower Building to accommodate the
new large electrical transf ormers under the Project.
I n general, the new f acilities will provide full redundancy for backup or emergency conditions f or the
blowers and allow for safe and reliable operations with the existing standby generators during power
outages, P G&E Public Safety Power Shutoffs or planned shutdowns related to other projects like
the ongoing Solids Handling F acility I mprovements, P hase 1A.
Treatment P lant P iping R enovations, Phase 10 - R enovation and/or replacement of various piping,
instrumentation, and equipment in the treatment plant (plant) that have been identified by Engineering,
Operations, and Maintenance staf f as in need of immediate replacement. T his 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. T he project
also plans to replace electrical equipment such as the V F Ds f or the Primary Effluent pumps and
other equipment.
C onstruction of the P roject commenced in S eptember of 2021 and was originally scheduled to be
completed by November 1, 2022. To date, most of the improvement work in and around the P ump and
Blower Building and clarif iers has been successf ully completed.
T he 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:
1. New specialized and custom motor control centers that include built-in V F D s for the Hypo Chlorite
Site 1.
2. Replacement of a customized V F D for the 450 horse-power Primary Effluent P ump 3. T his work
has also been postponed due to the operational constraint related to the wet weather season ending
in April-May.
Staf f and A uburn agreed that it would be in the best interest to demobilize f rom the plant in order to control
contract costs and avoid major work inefficiencies. A uburn was completely demobilized as of S eptember
1, 2023 and the plan was to return once the remaining electrical items are on site. S taff has since been
working and negotiating a change order with Auburn using the contract provisions allowed to complete the
Project. After several meetings, staff reached a mutually agreed cost to perform the remaining work noted
above including the related impacts and additional costs such as remobilization and demobilization, costs
for subcontractors, time extension, equipment, materials, and allowable costs for labor.
T he proposed change order will include the time required to complete the work and will not commence
until all equipment is on site and Central S an is ready f or installation. A s of now, Auburn is expected to
return in May and complete the work by A ugust of this year.
T hroughout the construction, Auburn has been great to work with and been reasonable and helpful. T heir
experience as an engineering contractor has been beneficial to C entral San and has produced a high-
quality product and installation. I n addition to the contractor’s costs, staff is requesting funding to cover
construction management, staff, and or other consultant costs needed to close the project.
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C AL IF O RNI A E NV I RO NM E NTAL Q UAL I T Y AC T (C E Q A)
At its J uly 15, 2021 meeting, the Central S an Board of Directors independently f ound that this P roject is
exempt from C E Q A under C entral San's C E Q A Guidelines Section 15301, since it involves replacement
of existing sewer f acilities at substantially the same locations and with the same purpose and level of
activity as the f acilities being replaced.
ALT E RNAT I V E S /C O NS I D E RAT IO NS
T here is one practical alternative outside staf f ’s approach and is noted below:
Alternative 1 – D o not complete the remaining contract work with Auburn and do not authorize a
construction contract change order. T his alternative would require staf f to renegotiate f inal contract costs
and the remaining items would need to be installed by a different contractor through other contractual
solutions such as another project. T he remaining work is a high priority and includes critical assets and
recommended to be replaced this summer. A uburn has purchased all equipment and other materials for
the P roject, and their workmanship has been of high quality and very well received by staff. A uburn is also
already familiar with the site and the challenges associated with the construction sequence.
T he change order being recommended is the most economical approach and signif icantly reduces the risk
of contractor claims.
F I NANC IAL I M PAC T S
T he additional costs needed f or the Project is $895,000, which includes the $405,000 change order,
$430,000 f or construction management, and $60,000 for contingency to close the P roject.
T he 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 f or change orders)
$ 2,050,000 planning and design (100 percent spent)
$18,845,000
Upon B oard approval, the new total estimated project budget will be $19,740,000. T he $895,000 f unding
required will be transf erred f rom the C apital I mprovement Budget Contingency account, which has
$2,565,000 available this f iscal year.
C O M M I T T E E RE C O M M E ND AT IO N
T he E ngineering and Operations Committee reviewed this matter at its March 6, 2024 meeting and
recommended B oard approval.
RE C O M M E ND E D B O ARD AC T I O N
Staf f recommends the following:
1. Authorize the General Manager to execute a construction contract change order in the amount of
$405,000 with A uburn Constructors, L L C to remobilize and complete the Electric B lower
I mprovements, District P roject 100015 and Treatment P lant P iping R enovations, Phase 10, D istrict
Project 7369; and
2. A uthorize a budget transfer in the amount of $895,000 from the Capital I mprovement B udget
C ontingency to fund the P roject.
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Strategic Plan Tie-I n
G O A L O N E: Customer and C ommunity
Strategy 1 – Deliver high-quality customer service
G O A L TW O: Environmental Stewardship
Strategy 1 - Achieve compliance in all regulations
G O A L FI VE: Safety and Security
Strategy 2 - Protect personnel and assets from threats and emergencies
G O A L S I X: I nfrastructure Reliability
Strategy 1 - Manage assets optimally, Strategy 2 - Execute long-term capital renewal and replacement program
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