HomeMy WebLinkAbout06. Authorize the General Manager to amend a professional Engineering Services agreement up to $450,000 with HDR Engineering, Inc.Item 6.
BOARD OF DI RECTORS
POSIT ION PA PER
M E E T ING D AT E:MAY 16, 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 A ME ND A P R O F E S S I O NA L
E NG I NE E R I NG S E RV I C E S A G R E E ME NT UP TO $450,000 W I T H HD R
E NG I NE E R I NG, I NC., I NC R E A S I NG T HE C O S T C E I L I NG TO $1,850,000
F O R A D D I T I O NA L D E S I G N S E RV I C E S A ND I MP R O V E ME NT S UND E R T HE
S T E A M R E NO VAT I O NS, P HA S E 1, D I S T R I C T P R O J E C T 100032
S UB M I T T E D B Y:
MI K E Z UB R Z YC K I , A S S O C I AT E E NG I NE R
NAT HA N HO D G E S , S E NI O R 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: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 of the B oard of D irectors (B oard) is required for the General Manager to execute an
amendment to a prof essional engineering services agreement for amounts greater than $200,000.
B AC K G RO UND
On March 3, 2022, the Board authorized the Steam Renovations, P hase 1 (P roject) and a professional
engineering services agreement for $1,400,000 with HD R E ngineering, I nc. (HD R) f or f inal design and
bidding services. T he P roject addresses the treatment plant steam system’s immediate needs and is
coordinated with other potential steam system phases. T he scope of work was developed af ter extensive
condition assessment evaluations under the A eration and E nergy Upgrades project.
Staf f and HD R have been progressing with the bid package and with design at 90 percent f or the initial
scope items in the P ump and B lower B uilding (P&B B ) and the S olids C onditioning B uilding (S C B ).
Approximately 50 percent of the construction work is within the S C B, which consists of replacing portions
of the boiler f eed water (B F W ) system that are critical for the operation of the waste heat boilers, auxiliary
May 16, 2024 Regular Board Meeting Agenda Packet - Page 42 of 500
Page 1 of 3
boilers, and cogeneration heat recovery boiler. B oiler operation produces steam which drives the aeration
system, a large part of why the steam system is so critical to treatment plant operations.
T he B F W system was installed in the 1970s as part of the 5A Treatment P lant E xpansion project, and the
original design was based upon additional equipment and loads in the S C B that were never installed. A
detailed evaluation of the B F W system was part of the final design scope and was submitted in J une of
2023. HD R’s evaluation included a detailed piping stress analysis which staf f agreed would be necessary
to address saf ety and operational concerns with the system. T he analysis has exposed deficiencies and
concerns with the existing B F W system beyond the initial project. F or example, pipe fittings not rated f or
system pressure and insufficient pipe supports for thermal expansion and seismic restraint.
T he project team attempted to resolve the deficiencies identified in the B F W evaluation within the original
scope and fee, however, it became clear that the ef f ort required was greater than anticipated. T he entire
B F W system needed to be analyzed and subsequently designed as a complete system. I n other words,
the B F W pump replacement (an original scope of work item) could not be finalized independently f rom the
B F W piping. T he B F W system deficiencies, combined with the need to maintain an operational and
reliable steam system during construction, led to the decision to design an entirely new B F W system
(pumps and piping) parallel to the existing system. T his design ef f ort was not anticipated nor included in
the original scope of work.
T his additional effort by HD R will result in a new B F W system that meets current saf ety standards and
operational requirements for the steam system. T he design ef f ort includes replacing two steam-driven
B F W pumps and one electric pump with three electric pumps sized to current steam demands and
redundancy needs, and new piping sized f or current flows and pressures.
However, due to the additional time required to design the B F W system and the urgent need to complete
the improvements in the P&B B , HD R will be splitting the work into two separate bid packages. T he f irst
package will include replacement of the steam condenser units and all work within the P&B B . T hese units
have shown degrading condition over recent inspections and the loss of these units would remove a steam
aeration turbine from operation. T he design work for the B F W and other improvements in the S C B will be
completed by the end of the year. By separating these scope items into two separate construction
contracts with staggered schedules, staff can better mitigate risks to treatment plant operations.
T he additional design identif ied with the B F W system and splitting the original bid package requires more
design budget at a level of effort that is estimated not to exceed $450,000. As completion of the S C B bid
package nears, staf f will evaluate the coordination with the Solids Handling F acility I mprovements, P hase
1 A (S olids Phase 1 A ) project construction.
C alifornia E nvironmental Quality Act (C E Q A)
At the March 4, 2022 Board meeting, the Board independently found that the P roject is exempt from
C E Q A under C entral San’s C E Q A Guidelines Section 15301, since it involves repairs, maintenance, and
minor alterations to an existing sewage f acility with no increase in capacity; and Section 15302 since it
involves replacement of existing public f acilities at the same location and with the same purpose. Any
capacity increases are f or non-growth inducing, wet weather purposes. No further action is anticipated.
ALT E RNAT I V E S /C O NS I D E RAT IO NS
T he authorization being requested will allow the design to include the additional B F W scope needed to
properly replace the major system components and allow the construction flexibility recommended by
Operations and E ngineering. S taff has already started evaluating the timing of the S C B work, including the
increased B F W scope, with the S olids Phase 1 A project and determining the best time for its
replacement. T he Board could provide other direction or not authorize the design amendment, however
rejecting the amendment is not recommended since the major B F W equipment (pumps) has known
May 16, 2024 Regular Board Meeting Agenda Packet - Page 43 of 500
Page 2 of 3
deficiencies and is nearing the end of its useful lif e.
F I NANC IAL I M PAC T S
T he existing HD R agreement (No. 32135) has a cost ceiling of $1,400,000. T he amendment would add
$450,000, resulting in a new cost ceiling of $1,850,000.
T he current engineer ’s estimate f or construction is $8,000,000, therefore the design represents
approximately 23 percent of the estimated construction costs. T his design percentage is higher than seen
in typical District projects (15 percent); however, this project is highly specialized, and the B F W evaluation
needed for making decisions added signif icant time and cost. I n addition, the design requires a high level
of accuracy and detail to renovate the system considering saf ety and operational constraints.
T he P roject is listed in the F iscal Year 2023-24 Budget on page 267 with a total estimated project budget
of $16,000,000. T here is adequate funding available in the P roject budget.
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 meeting on May 8, 2024 and
recommended approval.
RE C O M M E ND E D B O ARD AC T I O N
Authorize the General Manager to amend a prof essional engineering services agreement up to $450,000
with HD R Engineering, I nc., increasing the cost ceiling to $1,850,000 for additional design services and
improvements under the S team R enovations, Phase 1, District P roject 100032.
Strategic Plan Tie-I n
G O A L TW O: Environmental Stewardship
Strategy 1 - Achieve compliance in all regulations, Strategy 4 - I dentify and advance sustainability initiatives, including
reducing energy usage and emissions
G O A L FI VE: Safety and Security
Strategy 1 - Reduce and eliminate risks of injury or illness, 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
May 16, 2024 Regular Board Meeting Agenda Packet - Page 44 of 500
Page 3 of 3