HomeMy WebLinkAbout03.b. Award construction contract in the amount of $2,342,000 to C. Overaa & Co. for Steam Renovations, Phase 1A DP 100032; authorize general manager to amend agreement with HDR Engineering; Amend agreement with MWH Constructors, Inc. and exempt from CEQPage 1 of 10
Item 3.b.
DCENTRALSAN
BOARD OF DIRECTORS
POSITION PAPER
DRAFT
MEETING DATE: OCTOBER 2, 2024
SUBJECT: REVIEW DRAFT POSITION PAPER TO AWARD A CONSTRUCTION
CONTRACT I N THE AMOUNT OF $2,342,000 TO C. OVERAA & CO., THE
LOWEST RESPONSIVE AND RESPONSIBLE BIDDER FOR THE STEAM
RENOVATIONS, PHASE 1A, DISTRICT PROJECT 100032; AUTHORIZE
THE GENERAL MANAGER TO AMEND A PROFESSIONAL ENGINEERING
SERVICES (PES)AGREEMENT WITH HDR ENGINEERING, INC. INAN
AMOUNT OF $200,000 FOR ENGINEERING SERVICES DURING
CONSTRUCTION; AMEND APES AGREEMENT WITH MWH
CONSTRUCTORS, I NC. I N AN AMOUNT OF $300,000 FOR
CONSTRUCTION MANAGEMENT SERVICES; AND CONSIDER THE
PROJECT EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY
ACT (CEQA)
SUBMITTED BY:
MIKE ZUBRZYCKI, ASSOCIATE ENGINEER
NATHAN HODGES, SENIOR ENGINEER
INITIATING DEPARTMENT:
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
On September 4, 2024, two sealed bids were received and opened for the construction of the Steam
Renovations, Phase 1A, District Project 100032 (Phase 1A). The Board of Directors (Board) can award a
contract or reject bids within 50 days of bid opening. Authorization is also required for the General
Manager to amend a PES agreement for amounts greater than $200,000.
BACKGROUND
The existing steam system is a vital and critical component of Central San's wastewater treatment plant
energy profile as it is designed to capture and recover energy from the heat produced by electrical power
generation and furnace operations. The steam system was recently investigated under detailed condition
assessments and has significant overall life remaining in the system. However, several safety
improvements and or replacement items have been identified and included into the Capital Program to
maximize the system's performance and useful life.
October 2, 2024 EOPS Regular Committee Meeting Agenda Packet - Page 14 of 42
Page 2 of 10
On March 3, 2022, the Board authorized the Steam Renovations, Phase 1 project and a PES with HDR
Engineering, Inc. (HDR) for final design and bidding services. On May 16, 2024, the Board authorized an
amendment to the PES agreement with HDR, and the Steam Renovations, Phase 1 project was split into
two phases, 1 A and 1 B. Phase 1 A focuses on needed improvements to the steam system in the Pump &
Blower Building, while Phase 1 B is located in the Solids Conditioning Building. The Phase 1 B design is
expected to be completed later this year.
The Phase 1 A work consists of relocation of several pipelines, replacement of two waste steam heat
exchangers, and tube replacement in the two aeration turbine exhaust condensers. The condensers,
installed in 1976 and located under the aeration turbines, use final effluent to cool steam into condensate.
Each condenser contains 2,300 copper cooling tubes that are heavily corroded. This project will
rehabilitate the condensers with retubing, internal recoating, and recertification.
Staff and HDR prepared the Phase 1A project documents. The project was advertised on July 16 and
July 23, 2024. The engineer's estimate for construction was $2,500,000. Two sealed bids at $2,342,000
and $3,095,000 were received and publicly opened on September 4, 2024. Capital Projects conducted a
technical and commercial review of the bids and determined that C. Overaa & Co. is the lowest responsive
and responsible bidder with a bid amount of $2,342,000. A summary of bids received is shown in
Attachment 2.
Central San, with the support of MW H Constructors, I nc. (MW H), will administer the construction contract
and provide construction management of the project. MW H is currently working with C. Overaa & Co. and
staff on the large Solids Handling Facility I mprovements, Phase 1 A project and including these services is
the most efficient and best use of resources for the project. Using the Solids Handling Facility
I mprovements, Phase 1 A project construction management team will be more efficient for Central San
staff (Engineering and Operations) for this construction work. It will reduce the number of meetings and
coordination that would be typical if other parties were involved. MW H's current agreement is valued at
$11,000,000 and including the proposed services at $300,000 will result in a new cost ceiling of
$11,300,000.
HDR will provide engineering services during construction, submittal review, and inspection on an as -
needed basis. HDR's fee for construction phase services is $200,000; the current agreement is valued at
$1,850,000 and including the proposed services will result in a new cost ceiling of $2,050,000. HDR was
hired to perform the construction duties; however, Central San does not include the costs until at time of
award.
Pending award of the project, the General Manager shall execute the Contract Documents subject to
submittal requirements.
CEQA
Staff has concluded that the project is exempt from CEQA under Central San's CEQA Guidelines
because it includes 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 equipment and rehabilitate the
condensers. Other options for construction management exist; however, the action recommended by staff
is the best alternative for costs and staff delivery.
October 2, 2024 EOPS Regular Committee Meeting Agenda Packet - Page 15 of 42
Page 3 of 10
FINANCIAL IMPACTS
The total estimated project cost is $5,408,000, which includes planning, design, consultant, construction
contract, contingency, and staff costs as detailed in Attachment 3. Note that this cost includes the Uniform
Public Construction Cost Accounting Act Project 2022-12, Phase 1 A, and Phase 1 B costs through
August 2024. The amount is expected to increase as the Phase 1 B design progresses.
The project is listed in the Fiscal Year 2024-25 Budget on page 275, Steam Renovations, Phase 1,
District Project 100032, with a total estimated project budget of $12,500,000. There is adequate funding
this and next fiscal year for the project improvements as approximately $4,100,000 is available in the
budget to date.
COMMITTEE RECOMMENDATION
The Engineering and Operations Committee reviewed this matter at its meeting on October 2, 2024 and
recommended
RECOMMENDED BOARD ACTION
Staff recommends the following Board actions:
1. Award a construction contract in the amount of $2,342,000 for the construction of Steam
Renovations, Phase 1A, District Project 100032 to C. Overaa & Co., the lowest responsive and
responsible bidder;
2. Authorize the General Manager to amend a professional engineering services agreement with HDR
Engineering, Inc. in an amount of $200,000 for engineering services during construction;
3. Authorize the General Manager to amend a professional engineering services agreement with MW H
Constructors, I nc. in an amount of $300,000 for construction management services; and
4. Find that District Project 100032 is exempt from CEQA.
Strategic Plan re -In
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 1 - Reduce and eliminate risks of injury or illness, 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-B id/P reconstruction Estimate
4. Presentation
October 2, 2024 EOPS Regular Committee Meeting Agenda Packet - Page 16 of 42
Page 4 of 10
N
i
0 150 300
FEET
a PROJECT AREA
CONSTRUCTION
ACCESS ROUTING
/�,I
PUMP AND
BLOWER
BUILDING
E I
F: � 7@muC-S DW
CENTRAL G S i'7A COSTA S.kN.7kVY O1S3 i K
� n \
NORTH
CLARIFIERS
AERATION
TANKS
SOUTH
BASIN
El
STEAM RENOVATIONS PHASE 1A
DISTRICT PROJECT 100032
NORTH
BASIN
41
n�F0
e
Attachment
1
Page 5 of 10
ATTACHMENT 2
STEAM RENOVATIONS, PHASE 1A
DISTRICT PROJECT 100032
SUMMARY OF BIDS
PROJECT NO.: 100032 NO. OF ADDENDA: 2 DATE/TIME: SEPTEMBER 4, 2024/2:00 PM
PROJECT NAME: STEAM RENOVATIONS, PHASE 1A
PROJECT MANAGER: MIKE ZUBRZYCKI
PROJECT LOCATION: 5019 IMHOFF PLACE. MARTINEZ. CALIFORNIA
ENGINEER'S ESTIMATE: $2,500,000
NO.
BIDDER
BID PRICE
1
C. Overaa & Co.
$2,342,000
Richmond, California 94801
2
Saboo Inc.
$3,095,000
Brentwood, California 94513
BIDS OPENED BY /s/ Katie Young
DATE: September 4, 2024/2 PM
October 2, 2024 EOPS Regular Committee Meeting Agenda Packet - Page 18 of 42
Page 6 of 10
ATTACHMENT 3
STEAM RENOVATIONS, PHASE 1A
DISTRICT PROJECT 100032
POST-BID/PRECONSTRUCTION ESTIMATE
% Of
Construction
No.
Item Description
Amounts
Cost
1
CONSTRUCTION
a. Construction Contract 1A
$ 2,342,000
b. Contingency at 15%
$ 351,000
SUBTOTAL - CONSTRUCTION
$ 2,693,000
100%
2
CONSTRUCTION MANAGEMENT
a. District Forces
- Operations
$ 30,000
- Construction Management
$ 75,000
b. Outside Services
- HDR Engineering, Inc. (ESDC and Inspection)
$ 200,000
- MWH Constructors, Inc. (CM Services)
$ 300,000
- Specialty Coating Inspection (Blanket Agreement)
$ 20,000
SUBTOTAL - CONSTRUCTION MANAGEMENT
$ 625,000
23%
3
PREBID EXPENDITURES ESTIMATE*
a. Engineering (Staff and Consultant) Phase 1A
$ 300,000
11%
b. Engineering (Staff and Consultant) Phase 1B
$ 1,595,000
c. UPCCAA Project 2022-012 Safety Related Work
$ 195,000
SUBTOTAL - PREBID EXPENDITURES
$ 2,090,000
4
TOTAL ESTIMATED PROJECT COST
$ 5,408,000
* Original project scope has been phased to UPCCAA 2022-012, 1A and 1 B. Design costs for all phases have been
included in the estimate.
October 2, 2024 EOPS Regular Committee Meeting Agenda Packet - Page 19 of 42
Attachment 4
Page 7 of 10
Background
Steam Renovations, Phase 1 project
authorized in March 2022
Steam Renovations, Phase 1 split into two
phases in May 2024
Phase 1A— Pump & Blower Building
Phase 1B — Solids Conditioning Building
100% design expected in November
2024
Work completed through Uniform Public
Construction Cost Accounting Act (UPCCAA)
Project 2022-012
New boiler sample stations installed
Safety related work
October 2, 2024 EOPS Regular Committee Meeting Agenda Packet - Page 20 of 42
Page 8 of 10
Phase 1A: Pump & Blower Building Scope
Waste Steam Exchangers
Aeration Blower Turbine Condensers
Phase 1A: Pump & Blower Building Scope
Temporary relocation of 20" 3W
pipe, installation of new 20" valve,
relocation of miscellaneous
pipelines to provide access
Replacement of 2,300 copper tubes
in each condenser, coating of tube
sheets and water boxes, cutting and
welding shell
Inspection, testing, and
recertification of condensers
Aeration Blower Turbine Condensers (Internal)
October 2, 2024 EOPS Regular Committee Meeting Agenda Packet - Page 21 of 42 2
Page 9 of 10
Bid Results
Advertised on July 16 and July 23, 2024
Engineer's Estimate: $2,500,000
Bid Opening on September 4, 2024
Two bids received:
C. Overaa & Co. was low bidder at
$2,342,000
Saboo Inc. was second bidder at
$3,095,000
Total Budget
Current total estimated project cost is $5,408,000
Includes planning, design, consultant,
construction contract, contingency, and staff
costs
i
Includes UPCCAA Project 2022-012, Phase
1A, and Phase 16 costs through August 2024
Project is listed in Fiscal Year 2024-25 Budget er '�'I
Steam Renovations, Phase 1 listed on p. 275
Total estimated project budget is
$12,500,000 I
� I
Adequate funding this and next fiscal year,
with approximately $4,100,000 available in
the allocated budget to date
October 2, 2024 EOPS Regular Committee Meeting Agenda Packet - Page 22 of 42 3
Page 10 of 10
Recommended Board Action
Award a construction contract in the amount of
$2,342,000 for the construction of Steam
Renovations, Phase 1A, District Project 100032 to C.
Overaa & Co., the lowest responsive and responsible
bidder;
Authorize the General Manager to amend a
professional engineering services (PES) agreement in
an amount of $200,000 with HDR Engineering, Inc.
for engineering services during construction;
Authorize the General Manager to amend a PES
agreement in an amount of $300,000 with MWH
Constructors, Inc. for construction management
services; and
Find that the project is exempt from CEQA.
Questions
October 2, 2024 EOPS Regular Committee Meeting Agenda Packet - Page 23 of 42 4