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HomeMy WebLinkAboutAgenda Report - July 16, 2014 I-031."AGENDA ITEM Crrv or Lopr Coutucl r, Com MUNIcATToN AGENDA TITLE:Adopt Resolution Declaring an Emergency Condition at White Slough Water Pollution Control Facility Digesters No. 1 and No. 2 and Authorizing City Manager to Order Required Actions and Execute the Necessary Contracts to Replace the Roofs of the Digesters and Appurtenant Equipment and Appropriating Funds ($3,100,000) MEETING DATE: July 16,2014 PREPARED BY: Public Works Director RECOMMENDED ACTION: Adopt resolution declaring an emergency condition at White Slough Water Pollution Control Facility Digesters No. 1 and No. 2 and authorizing City Manager to order required actions and execute the necessary contracts to replace the roofs of the digesters and appurtenant equipment and appropriating funds in the amount of $3,100,000. BACKGROUND INFORMATION: White Slough Water Pollution Control Facility (WSWPCF) has four covered anaerobic digesters that serve the purpose of breaking down sewage sludge that enters the plant. Digesters No. 1 and No. 2 were part of the original plant construction in 1967 and were built with floating roofs that adjust based on the level of the sludge. Digester No. 3 was added in 1989 and Digester No. 4 was added in 2007 at a cost of $1,900,000. The plant is designed to run with only three digesters, with a fourth temporarily down for cleaning and maintenance. The waste discharge permit requires the City to have three operational digesters with one redundant digester to accommodate maintenance of the other three ln the summer of 2013, Digester No. 2 was taken out of service to be cleaned and to have a new mixing system installed. Neil O. Anderson consultants performed a structural evaluation of the concrete floor and sides, along with a visual inspection of the steel roof during the last cleaning cycle 20 years ago. No abnormalities were noted, although testing of the roof's steel thickness was not performed. After bringing the digester back online, it was discovered on May 27,2014, there was a leak in the seal around the floating roof of Digester No. 2. Staff responded by cleaning the roof with a City vacuum truck. During the cleaning, staff discovered a latent defect in the roof. Although the roof appeared sound to visual inspection, the vacuum line punched a hole through the paint revealing the metalfailure. Digester No. 2 was immediately taken out of service, as it cannot function without a sealed air tight and anaerobic environment. Photos have been included as Exhibit A. On May 28, 2014, staff tested the structural integrity of the roof of Digester No. 1 and found it also had deteriorated and cracks around the periphery were visible. Digester No. 1 is currently in service operating at full capacity. The concern is that Digester No. 1 will fail completely and there will not be sufficient capacity in the remaining digesters to handle the incoming flows of sludge. Additionally, the combined capacity of Digesters No. 3 and No. 4 is not sufficient to meet the permitting requirements, and APPROVED TM r K:\WP\PROJ ECTS\SEWER\WSWPCF\D¡gesterRepairs\CDigesterRoof. doc er 7 t9t2014 Adopt Resolution Declaring an Emergency Condition at White Slough Water Pollution Control Facility Digesters No. 1 and No. 2 and Authorizing City Manager to Order Required Actions and Execute the Necessary Contracts to Replace the Roofs of the Digesters and Appurtenant Equipment and Appropriating Funds ($3, 1 00,000) July 16,2014 Page 2 the City may be subject to fines from the State should we have a discharge of partially treated sludge The maximum fine for discharging partially treated sludge is $25,000 per day, but the fine is often reduced and/or negotiated based on the agency's level of response to the emergency. Following an assessment of the situation, City staff reviewed alternative solutions with our design consultant, West Yost & Associates (WYA). \l/YA designed the most recent White Slough expansions in 2004 (Tertiary Facilities) and 2007 (Phase 3 lmprovements). WYA recommends converting both floating roofs on Digesters No. 1 and No. 2 to fixed roofs. Given the current state of the digesters, two project delivery methods were discussed. The first is the standard design, bid, build (DBB) method and the second is the guaranteed maximum price (GMP) method. The preliminary construction cost estimate for replacing the roofs on both digesters, performing seismic upgrades of both structures, adding new mixing equipment to Digester No. 1, and associated construction work, engineering, permits, and inspection is presented in Exhibit B and is approximately $3.1 million. This preliminary estimate is conservative in order to cover uncertainties related to the seismic upgrade requirements, cleaning effort, demolition of the existing roofs, and piping modifications. The GMP approach consists of City staff and WYA negotiating with a contractor the maximum price the project will cost to construct. The GMP process also offers a shared savings incentive to the contractor for completing the project under the maximum contract price amount. The incentive is negotiated with the contractor and is typically a percentage of the unused contract amount (i.e., 40 percent) going to the contractor, with the City keeping the remainder (i.e., 60 percent). Once a contract is in place, the contractor's team can begin designing the new roof system, including a seismic retrofit of the existing structures, while simultaneously removing the damaged roof, beginning the cleaning process, and ordering the new roofs. This overlap in timing using the GMP compared to the DBB process bid process allows the project to be delivered five months sooner than the conventional DBB approach. Staff and WYA recommend negotiating the GMP contract with Western Water Constructors, lnc., of Santa Rosa and Overaa Construction, of Richmond. Western Water Constructors and Overaa Construction are well equipped to successfully complete the project, given that they have done similar digester roof modifications, have utilized the GMP method, and have successfully completed major construction projects for the City. Western Water Constructors completed the last two major WSWPCF upgrades that included construction of Digester No. 4. Overaa Construction recently completed the Water Treatment Facilities construction project. Staff believes this situation to be an emergency given the health and safety risk associated with the potential of both Digester No. 1 and Digester No. 2 being out of service. Section 22050 of the Public Contract Code allows for public facilities to be repaired or replaced in an emergency without giving notice for bids. This action requires four-fifths vote by the governing body and requires the finding that the emergency will not permit a delay resulting from the competitive solicitation for bids. ln order to repair the roofs in the least time possible, staff recommends moving fonruard with the GMP approach in repairing both digesters. Digester No. 2 would be upgraded first, followed by Digester No. 1. The preliminary schedule for the repairs indicates Digester No. 2 could be back online around April 2015 if utilizing the GMP approach or September 2Q15 lf utilizing the DBB approach. Full project completion, including the repairs to Digester No. 1 and No. 2, is estimated to be November 2015 for GMP or April 2016 for DBB. An alternative to staff's recommendation is to repair Digester No. 2 utilizing the GMP K:\WP\PROJ ECTS\SEWER\WSWPCF\DigesterRepairs\CD¡gesterRoof .doc 71912014 Adopt Resolution Declaring an Emergency Condition at White Slough Water Pollution Control Facility Digesters No. 1 and No. 2 and Authorizing City Manager to Order Required Actions and Execute the Necessary Contracts to Replace the Roofs of the Digesters and Appurtenant Equipment and Appropriating Funds ($3, 1 00,000) July 16,2014 Page 3 approach and to repair Digester No. 1 utilizing the DBB approach. lt is uncertain whether substantial cost savings could be realized if contracted separately. The Wastewater Fund can accommodate this unexpected capital maintenance expense by rescheduling and refining the scope of future capital maintenance projects with the objective to minimize future rate adjustments. FISCAL IMPACT Preliminary construction cost estimate to repair Digester No. 2 is approximately $t,400,000 and to repair Digester No. 1 is approximately $1,700,000. FUNDING AVAILABLE: Request Appropriation: Wastewater Capital (17M93): $3,100,000 n Ayers Deputy City Manager/lnternal Services Director F.W tn Public Works Director Prepared by Sean Nathan, Associate Civil Engineer FWS/SN/pmf Attachments cc: Associate Civil Engineer Nathan City Engineer/Deputy Public Works Director Wastewater Plant Supervisor K:\WP\PROJ ECTS\SEWER\WSWPCF\DigesterRepairs\CDigesterRoof. doc 7t9t2014 Exhibit A – Photos The hole in the floating roof of Digester No. 2 Rust along the side of the floating roof is further indication of corrosion EXHIBIT B CITY OF LODI WHITE SLOUGH WATER POLLUTION CONTROL FACILITY DIGESTER NO. 1 AND NO. 2 PRELIMINARY CONSTRUCTION COST ESTIMATE Digester No. 2 Element Cost 1 Digester No. 2 Improvements (Fixed Roof and Appurtenant Facilities) $930,000 2 Supervision and Job Overhead $156,000 3 Contingencies (10%) $110,000 4 Engineering Design and Construction Period Services $122,000 5 Construction Management and Inspection (6%) $72,000 TOTAL DIGESTER NO. 2 ESTIMATED COST $1,390,000 Digester No. 1 1 Digester No. 1 Improvements (Fixed Roof, Appurtenant Facilities and Mixer Facilities) $1,198,000 2 Supervision and Job Overhead $140,000 3 Contingencies (10%) $130,000 4 Engineering Design and Construction Period Services $88,000 5 Construction Management and Inspection (6%) $88,000 TOTAL DIGESTER NO. 1 ESTIMATED COST $1,644,000 TOTAL DIGESTER NO. 1 AND NO. 2 ESTIMATED COST $3,034,000 RESOLUTION NO. 2014- A RESOLUTION OF THE LODI CITY COUNCIL FINDING A PUBLIC EMERGENCY EXISTS REQUIRING THE IMMEDIATE REPAIR OF DIGESTERS NO. 1 AND NO. 2 AT THE WHITE SLOUGH WATER POLLUTION CONTROL FACILITY; AUTHORIZINc THE CITY MANAGER TO ORDER REQUIRED ACTIONS AND TO EXECUTE THE NECESSARY CONTRACTS; AND FURTHER APPROPRIATING FUNDS ====== == ========= ============== ================= ======= =============== == WHEREAS, the City of Lodi's Digesters No. 1 and No. 2 at the White Slough Water Pollution Control Facility (WSWPCF) were constructed as part of the original plant construction in 1967; and WHEREAS, on May 27,2014, it was discovered that there was a leak in the seal around the floating roof of Digester No. 2, and it was immediately taken out of service as it cannot function without a sealed airtight and anaerobic environment; and WHEREAS, on May 28, 2014, staff tested the structural integrity of the roof of Digester No. 1 and found it is also deteriorating with visible cracks around the periphery; and WHEREAS, should Digester No. 1 fail completely there will not be sufficient capacity in the remaining two digesters to handle the incoming flows of sludge; and WHEREAS, the capacity of Digesters No. 3 and No. 4 is not sufficient to meet our waste discharge permit requirements, and the City could be subject to fines of up to $25,000 per day from the State should there be a discharge of partially treated sludge; and WHEREAS, there are health and safety risks associated with the potential of both Digester No. 1 and Digester No. 2 being out of service at the same time; and WHEREAS, staff and the City's design consultant, West Yost Associates (\fúYA), recommend utilizing a guaranteed maximum price (GMP) method to repair the digesters as this would provide Digester No. 2 online approximately five months sooner than the conventional design, bid, build method; and WHEREAS, staff and WYA alserecommend negotiating eUp-een+raet(sfwith Western Water Constructors, lnc., and Overaa Construction. to obtain the lowest price GMP contract: and WHEREAS.Western Water Constructors. lnc. and Overaa Constructio n whieh are well equipped to successfully complete the project, given that they have done similar digester roof modifications, have utilized the GMP method, and successfully completed major construction projects with the City; and WHEREAS, Section 22050 of the Public Contract Code allows for public facilities to be repaired or replaced in an emergency without giving notice for bids. NOW, THEREFORE, BE lT RESOLVED that the Lodi City Council does hereby make the emergency finding required by the Public Contracts Code to dispense with the City bidding requirement for this project due to an unacceptable delay resulting from the competitive bid process, that immediate repairs are necessary to Digesters No. 1 and No. 2 at the White Slough Water Pollution Control Facility, the health and safety risks associated with the potential of both Digesters No. 1 and No. 2 being out of service at the same time, and the significant risk that delaying the necessary repairs could result in the City violating the requirements of its waste discharge permit resulting in State imposed fines; and BE lT FURTHER RESOLVED that the City Council does hereby authorize the City Manager to order required actions, and negotiate and execute necessary contract(s) with Western Water Constructors, lnc., gland Overaa Construction, in an amount up to $3,100,000 for the emergency repairs of Digesters No. 1 and No. 2 at the White Slough Water Pollution Control Facility; and BE lT FURTHER RESOLVED that funds in the amount of $3,100,000 be appropriated for the project from the Wastewater Capital account. Dated: July 16,2Q14 I hereby certify that Resolution No. 2014-- was passed and adopted by the City Council of the City of Lodi in a regular meeting held July 16, 2014, by the following vote: AYES: COUNCIL MEMBERS - NOES: COUNCIL MEMBERS - ABSENT: COUNCIL MEMBERS - ABSTAIN: COUNCIL MEMBERS - JENNIFER M. ROBISON City Clerk 2014- RESOLUTION NO. 2014-127 A RESOLUTION OF THE LODI CITY COUNCIL FINDING A PUBLIC EMERGENCY EXISTS REQUIRING THE IMMEDIATE REPAIR OF DIGESTERS NO. 1 AND NO. 2 AT THE WHITE SLOUGH WATER POLLUTION CONTROL FACILITY; AUTHORIZING THE CITY MANAGER TO ORDER REQUIRED ACTIONS AND TO EXECUTE THE NECESSARY CONTRACTS; AND FURTHER ===========fir::rilr9i=y}::-===-==================== WHEREAS, the City of Lodi's Digesters No. 1 and No. 2 at the White Slough Water Pollution Control Facility (WSWPCF) were constructed as part of the original plant construction in 1967; and WHEREAS, on May 27,2014, it was discovered that there was a leak in the seal around the floating roof of Digester No. 2, and it was immediately taken out of service as it cannot function without a sealed airtight and anaerobic environment; and WHEREAS, on May 28,2014, staff tested the structural integrity of the roof of Digester No. 1 and found it is also deteriorating with visible cracks around the periphery; and WHEREAS, should Digester No. 1 fail completely there will not be sufficient capacity in the remaining two digesters to handle the incoming flows of sludge; and WHEREAS, the capacity of Digesters No. 3 and No. 4 is not sufficient to meet our waste discharge permit requirements, and the City could be subject to fines of up to $25,000 per day from the State should there be a discharge of partially treated sludge; and WHEREAS, there are health and safety risks associated with the potential of both Digester No. 1 and Digester No. 2 being out of service at the same time; and WHEREAS, staff and the City's design consultant, West Yost Associates (WYA), recommend utilizing a guaranteed maximum price (GMP) method to repair the digesters as this would provide Digéstei No. 2 online approximately five months sooner than the conventional design, bid, build method; and WHEREAS, staff and WYA recommend negotiating with Western Water Constructors, lnc., and Overaa Construction, to obtain the lowest price GMP contract; and WHEREAS, as Western Water Constructors, lnc. and Overaa Construction are well equipped to successfully complete the project, given that they have done similar digester roof modìfications, have utilized the GMP method, and successfully completed major construction projects with the City; and WHEREAS, Section 22050 of the Public Contract Code allows for public facilities to be repaired or replaced in an emergency without giving notice for bids' NOW, THEREFORE, BE lT RESOLVED that the Lodi City Council does hereby make the emergeney finding required by the Public Contr:acts Code to dispense with the City bidding requiremðnt fór this þroject due to an unacceptable delay resulting froq the competitive bid process, that immediate repairs are necessary to Digesters No. 1 and No. 2 at the White Slough Water Pollution Control Facility, the health and safety risks associated with the potential of both Digesters No. 1 and No. 2 being out of service at the same time, and the significant risk that delaying the necessary repairs could result in the City violating the requirements of its waste discharge permit resulting in State imposed fines; and BE lT FURTHER RESOLVED that the City Council does hereby authorize the City Manager to order required actions, and negotiate and execute necessary contract(s) with Wéstern Water Constructors, lnc., or Overaa Construction, in an amount up to $3,100,000 for the emergency repairs of Digesters No. 1 and No. 2 at the White Slough Water Pollution Control Facility; and BE lT FURTHER RESOLVED that funds in the amount of $3,100,000 be appropriated for the project from the Wastewater Capital account. Dated: July 16,2014 I hereby certify that Resolution No. 2014-127 was passed and adopted by the City Council of the City of Lodi in a regular meeting held July 16, 2014, by the following vote: AYES COUNCIL MEMBERS - Hansen, Johnson, Mounce, Nakanishi, and Mayor Katzakian NOES: ABSENT: ABSTAIN COUNCIL MEMBERS - None COUNCIL MEMBERS - None COUNCIL MEMBERS - None KA tÀ**-"r^-' CK ive Secretary 2014-127 Emergency Digester Repairs Item I -3 July 16, 2014 Existing Condition •Digesters installed 1967 •Four heated anaerobic digesters •Treat solids prior to land application •No. 2 cleaned 2013 •No. 1 cleaned 1990 •Three required with one redundant unit •No. 2 is not operational •No. 1 is marginally operational Existing Condition Hole in Digester No. 2 Roof Rust Ring Around Floating Roof Emergency Declaration •Allows dispensing with normal bid process •Regional Board will view emergency response as a positive •Time savings = 5 months •4 of 5 votes required •Status report at each regular meeting Emergency Repairs •Demolition and cleaning concurrent with design and permitting •Seismic upgrades •Modify piping •New top mounted roofs •New mixers in digester No. 1 Guaranteed Maximum Price (GMP) •Hybrid of time and materials/lump sum •Pay is T & M plus fee •Pay capped at fixed price ceiling •Cost savings shared •West Yost Associates –construction manager –Drawings and specifications –GMP negotiations –Project management Basis of Award •Construction Bid •Project Manager •Mark Up Percent •Overall Best Value Questions?