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  AGENDA ITEM NO. L.2.       
Meeting Date: 09/21/2021  

SUBJECT:
Consideration of a First Amendment to the Contract with GSE Construction Company, Inc. for construction of the Wastewater Treatment Plant Improvements Project - Phase 1B increasing the contract amount by $751,219 to offset the costs for additional construction elements, and authorization of an additional appropriation of $751,219 from the Wastewater Fund (Municipal Utilities and Engineering Director Harris)
MOTION(S):

If the City Council determines that staff’s recommendation is appropriate, the following motions are provided:
  1. I move that the City Council approve the First Amendment to the Contract with GSE Construction Company, Inc. for construction of the Wastewater Treatment Plant Improvements Project - Phase 1B; and
     
  2. I further move that the City Council authorize an additional appropriation of $751,219 from the Wastewater Fund.
RECOMMENDATION:

Staff recommends that City Council approve the First Amendment to the Contract with GSE Construction Company, Inc. for construction of the Wastewater Treatment Plant Improvements Project - Phase 1B, and authorize an additional appropriation in the amount of $751,219 from the Wastewater Fund.
DISCUSSION:

On November 3, 2020, City Council approved a construction contract with GSE Construction Company, Inc. (GSE) for construction of the Wastewater Treatment Plant (WWTP) Improvements Project - Phase 1B (Project) in the amount of $6,128,100. City Council also determined the Project is categorically exempt from further environmental review in accordance with Section 15301 of the State's guidelines implementing the California Environmental Quality Act. The Project installs the following equipment:
 
  • Fine screens and associated equipment - Fine screens remove debris to prevent damage to the recently installed MBR membranes.
  • Ejector priming system upgrade - Ejector priming is the process of removing air from permeate vessel to prevent air lock of pumps.
  • Scour Blowers and associated equipment - Scour blowers create and provide air scouring, which in turn provides premium efficiency and operational efficiencies. The blowers operate on a 24-hour basis, producing scour air that backwash the filter media.
  • Digester boilers and heat exchangers - This system maintains proper temperature for bacteria to decompose sewage sludge and produce digester gas.
  • Gas conditioning system - Cleans and conditions the gas to burn cleaner in the boilers in order to meet air quality regulations.
Supervisory control and data acquisition (SCADA) system instrumentation and integration was not part of the Phase 1B Project scope of work, and was intended to be completed under a separate contract with the City's On-Call SCADA services provider, Tesco Controls, Inc. (Tesco). This work was included in the FY 20/21 Wastewater Services Budget, but was not expended. It was later determined that this work was outside the existing Tesco On-Call SCADA Services Agreement scope of work. In order to ensure newly installed Project equipment would be operated and monitored efficiently through SCADA, a Change Order to the GSE Agreement for SCADA instrumentation and integration was authorized. The scope of this work included communication scheduling protocols, control panel design, loop diagrams, equipment and control strategy, and generation of equipment designs and standards. The negotiated cost for this additional scope of work was $313,344.
 
Additionally, a fine screen Impure Plant Water (IPW) pump station was not included in Phase 1B Project, and was planned to be included in the Phase 2 portion of the Project. The IPW system supplies water for cleaning and backwashing the newly installed fine screens. Field tests conducted recently by WWTP staff indicate that the existing IPW system does not provide adequate pressure and flow when other systems are operating simultaneously, which would void the fine screen manufacturer's warranty. An engineering analysis of the IPW system parameters, including a design for a new independent IPW pump station based on the findings, was recently completed during the Phase 2 Project design. The negotiated cost to construct this IPW pump station is $437,875, including all labor, materials, and installation.

Staff recommends an amendment to the construction contract with GSE, increasing the contract amount by $751,219 for a revised contract amount of $6,879,319, and an additional appropriation in the amount of $751,219 from the Wastewater Fund to offset the costs for these additional construction elements.
ALTERNATIVES:

Council may decline approval of the First Amendment to this construction contract. However, doing so would jeopardize safe and efficient operation of the City's Wastewater Treatment Plant.
 
STRATEGIC PLAN:

Objective C: Infrastructure. Rehabilitate outdated infrastructure to maintain operations of the existing Wastewater Treatment Plant.
SUBMITTED BY:
John R. Harris, Municipal Utilities and Engineering Director

RECOMMENDED BY:
Charles M. Duggan Jr., City Manager

REVIEWED BY:
Daniel J. McHugh, City Attorney
Janice McConnell, Assistant City Manager
Danielle Garcia, Management Services/Finance Director
Kevin Watson, Utilities Operations Manager
Kyle Wagner, Construction Manager

PREPARED BY:
Goutam K. Dobey, Engineering Manager
  

Fiscal Impact
Fiscal Year: FY 2021-22
Revenue Generating: Yes
Appropriation Required Y/N: Yes
Amount: $751,219
Budgeted Y/N: No
Account No.: 521900
Discussion:
The recommended Council action includes an additional appropriation of $751,219 from the Wastewater Fund. The Wastewater Fund (521) balance includes $2,747,291 in Treatment Plant Reserve, of which $751,219 will be released to fund the additional project construction elements. Following the appropriation and release of reserves, the remaining balance of this reserve fund will be $1,996,072.
Attachments
A. First Amendment to GSE Contract
Exhibit "A" to the First Amendment
B. Executed Contract with GSE (Reference only)
C. Additional Appropriation Form


    

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