HomeMy WebLinkAbout03.b. Amend existing professional engineering services agreement for MWH Constructors for CM Services; Amend existing PE agreement for Stantec and budget transfer from CIB Contingency DP 7361Page 1 of 5
Item 3.b.
CDr EENI RAL SAN BOARD OF •'
�J POSITION PAPER
CENTRAL CONTRA COSTA SANITARY DISTRICT �
� •
MEETINGDATE: JULY15,2024
SUBJECT: REVIEW DRAFT POSITION PAPER TO AUTHORIZE THE GENERAL
MANAGER TO AMEND AN EXISTING PROFESSIONAL ENGINEERING
SERVICES AGREEMENT IN AN AMOUNT NOT TO EXCEED $300,000 WITH
MWH CONSTRUCTORS, INC. (MWH), INCREASING THE AGREEMENT
FROM $3,200,000 TO $3,500,000 FOR CONSTRUCTION MANAGEMENT
SERVICES; AMEND AN EXISTING PROFESSIONAL ENGINEERING
SERVICES AGREEMENT IN AN AMOUNT NOT TO EXCEED $580,000 WITH
STANTEC, INCREASING THE AGREEMENT FROM $5,852,000 TO
$6,432,000; AND AUTHORIZE A BUDGET TRANSFER I N THE AMOUNT OF
$2,320,000 FROM THE CAPITAL IMPROVEMENT BUDGET CONTINGENCY
FOR THE FILTER PLANT AND CLEARWELL IMPROVEMENTS, PHASE 1A,
DISTRICT PROJECT 7361
SUBMITTED BY: INITIATING DEPARTMENT:
CRAIG MIZUTANI, SENIOR ENGINEER ENGINEERING AND TECHNICAL SERVICES -
CAPITAL PROJECTS
REVIEWED BY: EDGAR J. LOPEZ, CAPITAL PROJECTS DIVISION MANAGER
GREG NORBY, DEPUTY GM - ENGINEERING & OPERATIONS
ROGER S. BAILEY, GENERAL MANAGER
ISSUE
Authorization from the Board of Directors (Board) is required to execute an amendment to a professional
engineering services agreement for amounts greater than $200,000 and transfer more than $500,000
within the Capital Improvement Program.
BACKGROUND
On August 20, 2020, the Board awarded a $26.6 million construction contract to C. Overaa & Co.
(Overaa), a $1,300,000 amendment to Stantec for engineering services during construction (ESDC), and
a $2,100,000 agreement to provide construction management (CM) services with MWH Constructors, I nc.
(MWH) for the Filter Plant and Clearwell I mprovements, Phase 1 A, District Project 7361 (Project). At time
of award, the ESDC and CM costs total approximately 12.4 percent of the construction costs. The bid
provided by Overaa was significantly competitive and below the engineer's estimate by $8,000,000, not
including any additive bid items. Overaa was also about $3,000,000 below the second lowest bidder.
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This project includes major civil, electrical, instrumentation and controls, mechanical, and process
renovations and improvements for the Recycled Water/Filter Plant area. Major elements of the project
include:
• Construction of two new recycled water storage tanks and associated filtered effluent lift station
• Construction of a new 12kV electrical substation, including feeders, transformers, switchgear, and
motor control centers (MCCs)
• Replacement of pump motors and variable frequency drives (VFDs)
• Rehabilitation of one of the existing four filters with new underdrain system and media
• Raising of levees near Wet Weather Basin C and construction of new roadways around the clearwell
Construction of the Project commenced in October 2020 and was scheduled to be completed by October
14, 2022. The completion date has been revised several times due to supply chain -related delays in
equipment delivery. Most notably, delivery of major electrical components such as VFDs, transformers,
and MCCs was delayed by months. The delay in electrical equipment has had a trickle -down effect on the
entire Project. Currently, it is anticipated that the completion of the Project will extend to early 2025. To
ensure the continuation of Stantec's ESDC through the end of the project, an additional $580,000 in
funding is required and $300,000 for CM under MW H. Staff has been managing the resources as
efficiently and effectively to support the progress of the construction since the original completion date. At
times, staff has supplemented the service to be cost effective where feasible. 85 percent of the original
contract work is complete with construction activities scheduled to ramp up in late July as all electrical
items are on site. The remaining construction work includes some electrical installations, wire terminations,
start-up, and commissioning. Construction is expected to continue until the end of this calendar year.
Compliance testing and acceptance for Title 22 conducted by staff and Stantec will continue into the first
quarter of 2025.
Stantec is the design engineer for the Project and is providing ESDC, as well as permitting,
commissioning, and technical services to verify the new recycled water tanks meet California State
recycled water requirements (Title 22), as implemented by the Division of Drinking Water. Over the course
of the project, the following revisions to Stantec's agreement have been made:
• Obtaining approval from the State to utilize computational fluid dynamics (CFD) in lieu of full scale
testing for certain tests of the new tanks and hydraulic structures
• Preliminary design for replacement of obsolete electrical gear (i.e. MCC 43)
• Replacement of electrical feeders
• Mechanical and HVAC upgrades to the Filter Building electrical areas
Stantec's agreement costs of $5,852,000 consist of the original planning, predesign, and detailed design
of the original Filter Plant and Clearwell Improvements prior to the splitting and creation of Phases 1 A and
1 B. Phase 1 A is in construction, while Phase 1 B is in detailed design scheduled to be completed this year.
The agreement was revised on two occasions to also include ESDC on August 20, 2020, for the
construction of Phase 1 A and again on May 18, 2023.
As for MW H, the cost ceiling for the agreement was increased from $2,100,000 to $2,600,000 at the
September 2, 2021 Board meeting for additional services. Then, due to supply chain -related construction
delays, MW H's agreement was extended and increased from $2,600,000 by $400,000 at the May 18,
2023 Board meeting. Staff included an additional $200,000 on November 20, 2023 under the General
Manager's delegated authority. The current total contract amount is $3,200,000. An additional $300,000 is
required to complete the CM services. The value of the CM services is expected to be over 50 percent
the original estimate and contract value, however the construction duration has exceeded the time
anticipated by over two years or 100 percent.
The original construction contract amount was $26,584,000. To date, with the addition of approved change
orders, the current contract value is $29,214,436. The value of outstanding and future change orders is
anticipated to be approximately $650,000. Outstanding and future change orders include some of the
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following additional expenses: removal of the clearwell dividing wall, switchgear wiring, fire department
access road, electrical feeder testing, turbidimeters, and changes for State of California Title 22 recycled
water compliance. The total construction contract amount at project completion is anticipated to be
$29,864,000.
To date, $39,610,777 has been spent on the project. It is anticipated that at the completion of the project,
with the additional costs for CM services and the other listed additional expenses, the total project cost will
be approximately $42,709,000. The current budgeted amount for the project is $40,389,000. Therefore,
an additional $2,320,000 will be required to complete the project.
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA)
At its August 20, 2020 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.
ALTERNATIVES/CONSIDERATIONS
Staff considered several alternatives and does not recommend any of the following:
Alternative 1 — Do not amend the ESDC contract with Stantec and complete the Project utilizing District
staff. This is not recommended as Stantec has provided in-depth ESDC services and has intimate
knowledge of the design that would be difficult to provide at this point in the project. Stantec has the
technical knowledge and services to help support the Title 22 certification required by the State of
California.
Alternative 2 — Do not amend the existing ESDC or CM agreements and complete the services utilizing
one of the other consulting firms with as -needed services to complete the Project. The District has several
engineering and construction -related services agreements with other consulting firms. However, those
firms would have to learn the details of a project that has been ongoing for over four years. The cost and
time required to bring another firm on -board makes this alternative unfeasible.
FINANCIAL IMPACTS
The total cost to complete all aspects of the project is estimated at $42,709,000 which includes planning,
engineering, design, construction, testing, CM services, regulatory expenses, contingency, and all other
necessary expenses.
The total project budget at the time of award was $38,589,000 and increased to $40,389,000. To date,
$39,610,777 has been spent and detailed in Attachment No. 1. Staff recommends increasing the total
project budget by $2,320,000 to cover the additional project costs caused by supply -chain equipment and
schedule delays, which would result in a new total project budget of $42,709,000 (approximately 110.6
percent of the original total project budget). Roughly 30 percent of the project costs is estimated to be for
planning, design, and construction management or 41 percent related to the construction costs. Typical
projects can range at a value of 25-35 percent of the construction costs; therefore, this project is estimated
to be over by 6-16 percent due to the low bid price received and the two years of added time to construct
the project.
Adequate funds are available within the Fiscal Year (FY) 2024-25 Capital Improvement Budget
Contingency; therefore, upon Board approval, a budget transfer in the amount of $2,320,000 would be
completed to fund this additional scope of work. To date, there is adequate funding of $3,800,000 in the FY
2024-25 Contingency account. With the approval of the proposed $2,320,000 budget transfer, there will be
$1,480,000 remaining in the account.
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COMMITTEE RECOMMENDATION
The Engineering and Operations Committee reviewed this matter at its special meeting on July 15, 2024
and recommended
RECOMMENDED BOARD ACTION
Staff recommends the following:
1. Authorize the General Manager to amend an existing professional engineering services agreement in
an amount not to exceed $300,000 with MW H, increasing the agreement from $3,200,000 to
$3,500,000 for construction management services;
2. Authorize the General Manager to amend an existing professional engineering services agreement in
an amount of $580,000 with Stantec, increasing the agreement from $5,852,000 to $6,432,000 for
engineering services during construction; and
3. Authorize a budget transfer in the amount of $2,320,000 from the FY 2024-25 Capital Improvement
Budget Contingency to fund the construction of the Filter Plant and Clearwell Improvements, Phase
1A, District Project 7361.
Strategic Plan re -In
GOAL TWO: Environmental Stewardship
Strategy 1 - Achieve compliance in all regulations, Strategy 3 - Be a partner in regional development of local water
supply
GOAL FIVE: Safety and Security
Strategy 1 - Reduce and eliminate risks of injury or illness, Strategy 2 - Protect Personnel and assets from threats and
emergencies
GOAL SIX: Infrastructure Reliability
Strategy 2 - Execute long-term capital renewal and replacement program
ATTACHMENTS:
1. Total Estimated Project Costs Update
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ATTACHMENT 1
FILTER PLANT AND CLEARWELL IMPROVEMENTS, PHASE 1A
DISTRICT PROJECT 7361
TOTAL ESTIMATED PROJECT COSTS UPDATE
No.
Item Description
Current Budget
Proposed
Increases
Revised Budget
1
CONSTRUCTION
a. Construction Contract w/ additive items
$26,584,000
$26,584,000
b. Contingency
$2,735,000
$800,000
$3,535,000
d. Permit
$100,000
$100,000
SUBTOTAL - CONSTRUCTION
2
CONSTRUCTION MANAGEMENT
a. District Forces
- Project Management
$1,075,000
$240,000
$1,315,000
- Operational Support
$325,000
$150,000
$475,000
- Regulatory Support
$220,000
$150,000
$370,000
b. Consultants
- Stantec ESDC*
$1,550,000
$580,000
$2,130,000
- MWH Construction Management Services*
$3,000,000
$300,000
$3,300,000
- Material Testing
$300,000
$100,000
$400,000
- Geotechnical
$100,000
$100,000
SUBTOTAL - CONSTRUCTION MANAGEMENT
3
PREBID EXPENDITURES
a. Engineering - Planning and Pilot Studies
$2,000,000
$2,000,000
b. Engineering - Design and Permitting
$2,300,000
$2,300,000
c. Permitting
$100,000
$100,000
4
TOTAL COSTS
$40,389,000
$2,320,000
$42,709,000
* Consultant budgets only for construction phase, agreements includes planning, design services, and constructability
reviews as well as services for the Phase 1 B project. Ex. MWH Construction review in design $200k.
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