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HomeMy WebLinkAbout03.d. Construction Contract Change Order with C. Overaa & Co. to expand the treatment plant contractor staging area un the Solids Handling Facility Improvements, Phase 1A, DP 7348Page 1 of 3 Item 3.d. DCENTRALSAN MEETINGDATE: JULY15,2024 BOARD OF DIRECTORS POSITION PAPER DRAFT SUBJECT: REVIEW DRAFT POSITION PAPER TO AUTHORIZE THE GENERAL MANAGER TO EXECUTE A CONSTRUCTION CONTRACT CHANGE ORDER IN THE AMOUNT NOT TO EXCEED $380,000 WITH C. OVERAA & CO. TO EXPAND THE TREATMENT PLANT CONTRACTOR STAGING YARD UNDER THE SOLIDS HANDLING FACILITY IMPROVEMENTS, PHASE 1A, DISTRICT PROJECT 7348 SUBMITTED BY: INITIATING DEPARTMENT: EDGAR J. LOPEZ, CAPITAL PROJECTS ENGINEERING AND TECHNICAL SERVICES - DIVISION MANAGER CAPITAL PROJECTS REVIEWED BY: GREG NORBY, DEPUTY GM - ENGINEERING & OPERATIONS ROGER S. BAILEY, GENERAL MANAGER ISSUE Authorization from the Board of Directors (Board) is required to execute a construction contract change order in an amount greater than $200,000. BACKGROUND The Solids Handling Facility I mprovements, Phase 1 A, District Project 7348 (Solids Project) was awarded with an approximately $200,000,000 total estimated project budget on September 7, 2023. The Solids Project is the largest single renovation job at the treatment plant (plant) since the Stage 5A expansion in the 1970's. In preparation of a larger scale construction project, Central San invested over $5,000,000 performing improvements to the plant contractor staging yard, which included relocating and building new facilities for the Operations maintenance workshops, construction of a new Imhoff Place entrance and contractor parking, public recreational vehicle waste station, security guard facilities, and camera systems and more. For several reasons, mostly security purposes, the staging areas for contractors are identified in the Project Documents for the plant and other projects within the Martinez campus. The Solids Project's general contractor is C. Overaa & Co. (Overaa) from Richmond, CA. Overaa has mobilized and continues to make substantial progress on the construction of the project. The planned activities are scheduled to increase with two major subcontractors, Haskell (Mechanical) and Con J. Franke Electric I nc., who have not fully mobilized and will by the end of this calendar year. There is a need July 15, 2024 Special EOPS Committee Meeting Agenda Packet - Page 65 of 85 Page 2 of 3 for additional staging area based on Overaa's subcontractors, storage for Central San's purchased equipment (scrubbers, centrifuges, and cake pumps), contractor parking, and other plant construction projects awarded to Overaa. Additional staging is also needed for the construction of the Aeration Basins Diffuser Replacement project (Diffuser Project). Both projects are under construction by Overaa. The Diffuser Project was originally planned to be under construction after the Solids Project. However, due to the delay in awarding the Solids Project and the need to optimize the secondary process to meet pending regulations, the contractor staging yard is overburdened and space is needed. The most practical and cost-effective solution for additional space is to expand the contractor staging yard to the north and onto the surcharge pile, which is regulated under a Land Use Covenant and an enforceable Agreement with the Department of Toxic Substances Control (DTSC) due to the presence of contaminated soil within the capped area. Based on communication with the DTSC, using the surcharge pile for the use of contractor staging and parking is allowed, pending the final review of the plans and other requirements for dust control and soil cap maintenance to ensure integrity of the cap. Staff and Overaa have developed a plan to improve the surcharge pile to meet the DTSC requirements and the plan will be shared with the DTSC for approval. The proposed work under the plan includes limited and minor grading and overall will be an increase to the height of the surcharge pile as the majority will be overlay with engineered rock base materials. Fabric and coarse rocks will be used to stabilize the existing soils as a suitable base for vehicles and equipment loading. The communications with the DTSC have been favorable. Once final approval is granted, Overaa will be able to begin the work. The surcharge pile is approximately 5 acres, and the expansion of the contractor staging area will take up just over half of the area. California Environmental Quality Act (CEQA) Staff has concluded that this project is exempt from 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 An alternative would be not to expand the contractor staging area and pay for an alternative instead of the surcharge pile location. This approach is not recommended since the proposed change order is the most cost-effective solution and provides additional benefits such as high and controlled security compared to allowing contractors access to other parts of the plant. In addition, the proposed expansion will benefit several future projects, especially the UV Disinfection Replacement project which will impact the current contractor yard by eliminating a significant portion to build the new structures. Staff has explored several options within and outside the plant. However, these options are farther away and would make it difficult to transport large equipment or heavier items without adding significant costs. The proposed expansion is adjacent and near a twenty-four hours seven days a week guard facility. FINANCIAL IMPACTS The estimates and costs provided by Overaa have been reviewed by the project construction team and is in compliance with the additional work provisions allowed in the contract specifications. The construction contract change order is estimated at $380,000 and includes all the materials and work needed to expand the contractor staging yard. The Solids Project has adequate contingency approved by the Board at $13,000,000. Approximately $248,000 of change orders have been issued as of May. With approval of the proposed change order, there will be roughly $12,372,000 remaining in the project contingency. The type of work required is within the means of the Solids Project construction contract. It is in Central San's best interest to conduct this additional work under a construction contract change order. The July 15, 2024 Special EOPS Committee Meeting Agenda Packet - Page 66 of 85 Page 3 of 3 contractor staging yard is fully being utilized by Overaa and will be for the next three years or longer. Bidding the work under normal public bidding procedures is not recommended since Overaa would be impacted by another contractor in or around the staging yard. Contractor payments are covered under the State Revolving Fund (SRF) loan for the project. Staff will submit these costs for SRF reimbursement; however, this work has additional benefits for Central San beyond the scope of work under the Solids Project. Therefore, a portion of the costs or none may be reimbursed depending on SRF review. COMMITTEE RECOMMENDATION The Engineering and Operations Committee reviewed this matter at its special meeting on July 15, 2024, and recommended RECOMMENDED BOARD ACTION Authorize the General Manager to execute a construction contract change order in the amount not to exceed $380,000 with C. Overaa & Co. to expand the treatment plant contractor staging yard under the Solids Handling Facility Improvements, Phase 1 A, District Project 7348. Strategic Plan re -In 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 2 - Execute long-term capital renewal and replacement program July 15, 2024 Special EOPS Committee Meeting Agenda Packet - Page 67 of 85