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Home My WebLink About11. Award a construction contract in the amount of $665,676 to Mesa Energy Systems, Inc., for the Headworks Chiller Replacement District Project 100010O��ENTRAL MEETING DATE: AUGUST 15, 2024 BOARD OF DIRECTORS POSITION PAPER Page 1 of 7 Item 11. SUBJECT: AWARD A CONSTRUCTION CONTRACT IN THE AMOUNT OF $665,676 TO MESA ENERGY SYSTEMS, INC., THE LOWEST RESPONSIVE AND RESPONSIBLE BIDDER FOR THE HEADWORKS CHILLER REPLACEMENT, DISTRICT PROJECT 100010; AUTHORIZE THE GENERAL MANAGER TO EXECUTE THE CONTRACT DOCUMENTS SUBJECT TO SUBMITTAL REQUIREMENTS; AND CONSIDER PROJECT EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITYACT (CEQA) SUBMITTED BY: INITIATING DEPARTMENT: NANCY MOLINA, ASSOCIATE ENGINEER ENGINEERINGAND TECHNICAL SERVICES - NATHAN HODGES, SENIOR ENGINEER CAPITAL PROJECTS REVIEWED BY: EDGAR J. LOPEZ, CAPITAL PROJECTS DIVISION MANAGER GREG NORBY, DEPUTY GM - ENGINEERING & OPERATIONS Roger S. Bailey General Manager ISSUE On July 16, 2024, three sealed bids were received and opened for the construction of the Headworks Chiller Replacement, District Project 100010 (Project). The Board of Directors (Board) must award the contract or reject bids within 50 days of the bid opening. BACKGROUND The Headworks Control Building (Headworks) is a critical facility at the wastewater treatment plant in Martinez used to pump and convey all influent flows from the collection system to the primary process facilities and/or the wet weather basins during peak rain events. Headworks houses six Influent pumps and motors, their associated variable frequency drives, major electrical gear, electrical systems for the automated bar screens, screenings handling, and disposal facility. To cool and maintain safe operating temperatures for the electrical equipment, Headworks has an existing 50 -ton chiller (chiller) as part of the HVAC system serving the building. The chiller is located on the roof and also serves the cooling needs for August 15, 2024 Regular Board Meeting Agenda Packet - Page 43 of 189 Page 2 of 7 the operator control room. The chiller began to fail last year and currently is out of service. Operations installed a rental chiller and will continue to use the temporary system until the chiller can be replaced and upgraded. This Project will replace the chiller and associated components and upgrade the controls. In addition, the scope of work includes upgrades that will allow for future permanent connections for more accessible power and backup systems (rental or fixed). The project site is identified in Attachment No. 1. Central San, Taylor Engineering (HVAC Specialist), and Complete Project Solutions, Inc. (Structural) prepared the plans and specifications for the Project. The Engineer's Estimate for construction was $420,000. This Project was advertised on June 12 and June 17, 2024. Three sealed bids ranging from $665,676 to $867,000 were received and publicly opened on July 16, 2024. The Capital Projects Division conducted a technical and commercial review of the bids and determined that Mesa Energy Systems, Inc. (Mesa) is the lowest responsive and responsible bidder with a bid amount of $665,676. References for Mesa were contacted, and staff received satisfactory feedback. A summary of bids received is shown in Attachment No. 2. The lowest bid received was approximately 58 -percent above the engineers estimate and was due to the new chiller and electrical work costs being higher than anticipated. Staff is recommending to award to Mesa based on receiving several bids from qualified bidders and that Central San continues to incur rental chiller costs of $7,000 a month. Central San will administer the construction contract and provide contract administration, office engineering, manage consultant services, inspection, and submittal. CEQA: Staff has concluded that this Project is exempt from the 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's independent finding that this Project is exempt from CEQA. ALTERNATIVES/CONSIDERATIONS Reject all bids, which is not recommended, due to the need to replace the Headworks chiller and to stop incurring rental fees associated with the temporary system. Rebidding the project will likely not result in any cost savings. FINANCIAL IMPACTS The total estimated project cost is $950,000 which includes planning, design, construction contract, contingency, consultant, and staff time as detailed in Attachment No. 3. The chiller replacement was identified under the Air Conditioning and Lighting Renovations (AC & Lighting). This title was renamed to the current Project name to replace the Headworks chiller. The scope and implementation of the AC & Lighting has changed, as the lighting will be handled under a PG&E lighting program using the Operating budget. The air conditioning replacements will be handled under other Treatment Plant Program projects. The Project requires $875,000 to be completed and staff is recommending to use the Capital Improvement Budget contingency account, which has adequate funds remaining. To date, there is $1,480,000 available for the current fiscal year. Pending award, the remaining contingency funds will be $605,000, as detailed in Attachment No. 4. August 15, 2024 Regular Board Meeting Agenda Packet - Page 44 of 189 Page 3 of 7 COMMITTEE RECOMMENDATION The Engineering and Operations Committee reviewed this matter at its meeting on August 7, 2024 and recommended approval. RECOMMENDED BOARD ACTION Award a construction contract in the amount of $665,676 to Mesa Energy Systems, I nc., the lowest responsive and responsible bidder for the Headworks Chiller Replacement, District Project 100010; authorize the General Manager to execute the Contract Documents subject to submittal requirements; and consider project exempt from the California Environmental Quality Act (CEQA). Strategic Plan Tie -In GOAL ONE: Customer and Community Strategy 1— Deliver high-quality customer service GOAL TWO: Environmental Stewardship Strategy 1 - Achieve compliance in all regulations, Strategy 4 - Identify and advance sustainability initiatives, including reducing energy usage and emissions 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. Project Location Map 2. Summary of Bids 3. Post-Bid/P reconstruction Estimate 4. CI B Contingency Summary August 15, 2024 Regular Board Meeting Agenda Packet - Page 45 of 189 N i 0 150 300 FEET PROJECT AREA CONSTRUCTION ACCESS ROUTING / �,I CFF CMN NORTH BASIN Page 4 of 7 v CNORTH P o `\0 LARIFIERS O� O AERATION TANKS AyO,�� O SOUTH 02 BASIN , O SOUTH O �•e CLARIFIERS O O O \\\ t O O n 0 EADWORK� BUILDING �O PRIMARY o TANKS 680 as 4 CENTRAL SAN Attachment HEADWORKS CHILLER REPLACEMENT 1 ' DISTRICT PROJECT100010 Page 5 of 7 ATTACHMENT 2 HEADWORKS CHILLER REPLACEMENT DISTRICT PROJECT 100010 SUMMARY OF BIDS PROJECT NO.: 100010 NO. OF ADDENDA: 2 DATE/TIME: JULY 16, 2024/2 PM PROJECT NAME: HEADWORKS CHILLER REPLACEMENT PROJECT MANAGER: NANCY MOLINA PROJECT LOCATION: 5019 IMHOFF PLACE, MARTINEZ, CA 94553 ENGINEER'S EST.: $420,000 NO. BIDDER BID PRICE 1 Mesa Energy Systems, Inc. $665,676 San Leandro, California 94577 2 S&H Construction, Inc. $698,600 Fremont, California 94538 3 C. Overaa & Co. $867000 Richmond, California 94801 ' BIDS OPENED BY: /s/ Katie Young August 15, 2024 Regular Board Meeting Agenda Packet - Page 47 of 189 DATE: July 16, 2024 Page 6 of 7 ATTACHMENT 3 HEADWORKS CHILLER REPLACEMENT DISTRICT PROJECT 100010 POST-BID/PRECONSTRUCTION ESTIMATE No. Item Description Amounts % of Construction Cost 1 CONSTRUCTION a. Construction Contract $665,676 b. Contingency at 15% $99,324 SUBTOTAL - CONSTRUCTION $765,000 100% 2 CONSTRUCTION MANAGEMENT a. District Forces - Risk Management/IT/Controls $25,000 - Operations $15,000 - Construction Management/General Inspection $50,000 b. Outside Services -Specialty Inspection $5,000 -Taylor Engineering (ESDC) $10,000 -Complete Project Solutions (ESDC) $5,000 SUBTOTAL - CONSTRUCTION MANAGEMENT $110,000 14% 3 PREBID EXPENDITURES a. Engineering (Staff and Consultant) $75,000 SUBTOTAL - PREBID EXPENDITURES $75,000 10% 4 TOTAL ESTIMATED PROJECT COST $950,000 August 15, 2024 Regular Board Meeting Agenda Packet - Page 48 of 189 Page 7 of 7 ATTACHMENT NO. 4 CIB CONTINGENCY SUMMARY FY 2024-25 CIB Contingency: Original Amount $ 5,000,000 Large Diameter Pipeline Inspection Program, Phase 1, DP 8443, Transfer $ (1,200,000) Filter Plant & Clearwell Improvements, Phase 1A, DP 7361, Transfer $ (2,320,000) Headworks Chiller Replacement, DP 100010, Transfer (Pending) $ (875,000) Remaining amount available: $ 605,000 August 15, 2024 Regular Board Meeting Agenda Packet - Page 49 of 189