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Home My WebLink About04. Award a construction contract in the amount of $2,342,000 to C. Overaa & Co. for Steam Renovations, Phase 1A DP 100032; Authorize the GM to amend a Professional Engineering Services (PES) Agreement with HDR, Inc. in an amount not to exceed $200,000O��ENTRAL MEETING DATE: OCTOBER 17, 2024 BOARD OF DIRECTORS POSITION PAPER Page 1 of 6 Item 4. SUBJECT: AWARD A CONSTRUCTION CONTRACT IN 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. IN AN 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 QUALITYACT (CEQA) SUBMITTED BY: MIKE ZUBRZYCKI, ASSOCIATE ENGINEER INITIATING DEPARTMENT: ENGINEERING AND 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 September 4, 2024, two sealed bids were received and opened for the construction of the Steam Renovations, Phase 1 A, District Project 100032. The Board of Directors (Board) must consider award of a construction 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 October 17, 2024 Regular Board Meeting Agenda Packet - Page 72 of 209 Page 2 of 6 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. 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 October 17, 2024 Regular Board Meeting Agenda Packet - Page 73 of 209 Page 3 of 6 is the best alternative for costs and staff delivery. 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 1A, 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 Board approval. RECOMMENDED BOARD ACTION Award a construction contract in the amount of $2,342,000 to C. Overaa & Co., the lowest responsive and responsible bidder for the Steam Renovations, Phase 1 A, District Project 100032; authorize the General Manager to amend a professional engineering services (PES) agreement with HDR Engineering, Inc. in an amount of $200,000 for engineering services during construction; amend a PES agreement with MW H Constructors, I nc. in an amount of $300,000 for construction management services; and consider the project exempt from the California Environmental Quality Act (CEQA). Strategic Plan Tie -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-Bid/P reconstruction Estimate October 17, 2024 Regular Board Meeting Agenda Packet - Page 74 of 209 N 0 150 300 FEET F-1 PROJECT AREA CONSTRUCTION ACCESS ROUTING /�,I n_n A� 0 PUMP AND BLOWER BUILDING /I n nnnn V: � S DW L A COSTA SP.f1i71.!Y .)�"RIC mmm � n \ NORTH CLARIFIERS AERATION TANKS Page 4 of 6 NORTH BASIN SOUTH BASIN El Attachment STEAM RENOVATIONS PHASE 1A 1 DISTRICT PROJECT 100032 02 j41 jun 4i e Attachment STEAM RENOVATIONS PHASE 1A 1 DISTRICT PROJECT 100032 Page 5 of 6 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 October 17, 2024 Regular Board Meeting Agenda Packet - Page 76 of 209 DATE: September 4, 2024/2 PM Page 6 of 6 ATTACHMENT 3 STEAM RENOVATIONS, PHASE 1A DISTRICT PROJECT 100032 POST-BID/PRECONSTRUCTION ESTIMATE *Original project scope has been phased to UPCCAA 2022-012, 1A and 1B. Design costs for all phases have been included in the estimate. October 17, 2024 Regular Board Meeting Agenda Packet - Page 77 of 209 % 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 1B. Design costs for all phases have been included in the estimate. October 17, 2024 Regular Board Meeting Agenda Packet - Page 77 of 209