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HomeMy WebLinkAbout1998-04-27 City Council (24)City City of Palo Alto Manager’s Report TO:HONORABLE CITY COUNCIL FROM:CITY MANAGER DEPARTMENT: PUBLIC WORKS DATE:APRIL 27, 1998 CMR:203:98 SUBJECT:APPROVAL OF AN AMENDMENT NO. 2 TO CONTRACT C6085795 WITH CH2M HILL INC. FOR THE FINAL DESIGN AND PERMIT SERVICES TO REHABILITATE THE INCINERATORS AT THE REGIONAL WATER QUALITY CONTROL PLANT. RECOMMENDATION Staff recommends that Council: Approve and authorize the Mayor to execute Amendment No. 2 (Attachment A) to Contract No. C6085795 with CH2M HILL Inc., in the amount of $715,000 for the final design and permit services to rehabilitate the incinerators at the Regional Water Quality Control Plant (RWQCP). The contract is structured so that Phase I, covering preliminary design and geotechnical investigations, will be funded out of the current FY1997-98 budget, not to exceed $100,000. Funding for Phase II includes the balance of the contract costs, or $615,000, and has been included in the proposed FY 1998-99 Wastewater Treatment Capital Improvement budget, contingent upon Council approval. Authorize the, City Manager or her designee to negotiate and execute one or more change orders to the contract with CH2M HILL for related, additional but unforeseen work which may develop during the project, the total -value of which shall not exceed $50,000. BACKGROUND On May 28, 1996, Contract No. C6085795 was awarded to CH2M HILL(CMR:278:96). The contract required CH2M HILL to provide full services in phases, from planning through construction, for the Solids Facility, pending approval by Council. Under the basic contract, CH2M HILL prepared the Solids Facility Plan for a fee of $400,000. The Plan evaluated various options, and provided the recommendation to rehabilitate the incinerators and add a dryer in the future. The planning phase was covered underthe basic contract. CMR:203:98 Page 1 of 3 On Sept 22, !997, Council approved Amendment No. 1 to the contract (CMR:389:97). Under Amendment No. 1, CH2M HILL prepped the Negative Declaration for the rehabilitation of ~ the incinerators and the addition of a dryer. The fee for Amendment No. 1 was $45,000. ¯ Amendment No. 2 to the contract will provide the design and permit services for repairs and improvements to the incinerators as described in the Negative Declaration, with provisions for the future addition of the dryer. The fee for this amendment is $715,000. The preliminary design and geotechnical investigation are scheduled to be completed this June. The final design and permit services are scheduled to proceed in July 1998, upon written notice to proceed from the City. The scope and fee for the remaining services are to be established at later dates, and are subject to Council approval. RESOURCE IMPACT On March 16, 1998, the Palo Alto City Council approved in concept staff’s funding proposal for Palo Alto to issue tax exempt bonds to finance the RWQCP incinerator rehabilitation project. AS part of that CMR (CMR:165:98), Council also approved Amendment No. 6 to the basic Partners’ agreement, which included provisions that each Partner agency approve Palo Alto acting as lead agency in the issuance of tax exempt bonds to finance the incinerator rehabilitation, and that each agency agreed to pay its proportionate share of debt service to Palo Alto over the life of the bonds. Concurrently, the City Councils of Los Altos and Mountain View also approved this amendment. Funds for the preliminary design and geotechnical investigation shall not exceed $100,000, and are included in the FY 1997-1998 Wastewater Treatment Capital Improvement budget. Funds for the ,remaining design and permit services have been included in the proposed FY 1998-99 Wastewater Treatmelat Capital Improvement budget. The proposed 1998-99 funding includes the design fee, and the future years’ capital budgets will include the construction dollars, contingent on Council approval. The construction and design costs will be reimbursed from bond proceeds approximately August 1999. The design and construction costs are estimated-to total $6.2 million. POLICY IMPLICATIONS The recommendations in this staff report are consistent with City policies. ENVIRONMENTAL REVIEW On February 23, 1998, Council approved the Negative Declaration prepared for the project (CMR:141:98). ATTACHMENTS Amendment No. 2 for Contract C6085795 CMR:203:98 Page 2 of 3 PREPARED BY: Bill Miks, Manager RWQCP DEPARTMENT HEAD: GLENN S. ROBERTS Director of Public Works E~LYT-IA~SON Assistant City Manager CMR:203:98 Page 3 of 3 AMENDMENT NO. TWO TO CONTRACT NO. C6085795 BETWEEN THE CITY OF PALO ALTO AND CH2M HILL, INC. This Amendment No.Two to Contract No. C6085795 ("Contract") is entered into , by and between the CITY OF PALO ALTO, a chartered city and a municipal corporation of the State of California ("CITY"), and CH2M HILL, INC., a Florida corporation, located at iiii Broadway, Suite 1200, Oakland, CA 94607-7046. (,,CONSULTANT,,).- RECITALS: WHEREAS, the Contract was entered into between the parties for the provision of professional services described in contract C6085795; and WHEREAS, the parties wish to amend the Contract; NOW, THEREFORE, in consideration of the covenants, terms, conditions, and provisions of this Amendment, the parties agree: follows: SECTION i.Section 5 is hereby amended to read as "SECTION 5. COMPENSATION 5.1 CITY will compensate following services and work: CONSULTANT for the 5.1.1 In consideration of the full performance of the Basic Services, including all authorized reimbursable expenses, CITY will pay CONSULTANT a fee not to exceed Nine Hundred Ninety Thousand Dollars ($990,000). The amount of compensation will be calculated in accordance with the hourly rate schedule set forth in Exhibit "B", on a time and materials basis, up to the maximum amount set forth in this Section. The. fees of the consultants, who have direct contractual relationships with ~ONSULTANT, will be approved, in advance, by CITY. CITY reserves the right to refuse payment of such fees, if such prior approval is not obtained by CONSULTANT. 5.1.2 In consideration of the full performance of Additional Services, the amount of compensation set forth in Exhibit "B" will not exceed One Hundred Seventy Thousand Dollars ($170,000). The rate schedules may be updated by CONSULTANT only once each calendar year, and the rate schedules will not become effective for purposes of this Contract, unless and until CONSULTANT gives CITY thirty (30) days’ prior written notice of the effective date of any revised rate schedule. 9S0406 syn 0071397 1 5.1.3 The full payment of charges for extra work- or changes, or both, in the execution of the Project will be made, provided such request for payment is initiated by CONSULTANT and authorized, in writing, by the project manager. Payment will be made within thirty (30) days of submission by CONSULTANT of a statement, in triplicate, of itemized costs covering such work or changes, or-both. Prior to commencing such extra work or changes, or both, the parties will agree upon an estimated maximum cost for such extra work or changes. CONSULTANT will not be paid for extra work or changes~ including, without limitation, any design work or change order preparation, which is made necessary on account of CONSULTANT’s errors, omissions, or oversights. 5.1.4 Direct personnel expense of employees assigned.to the execution of the Project by CONSULTANT will include only the work of architects, engineers, designers, job captains, draftspersons, specification writers and typists, in consultation, research and design, work in producing drawings, specifications and other documents pertaining to the Project, and in services rendered during construction at the site, to the extent such services are expressly contemplated under this Contract. Included in the cost of direct personnel expense of these employees are salaries and mandatory and customary benefits such as statutory employee benefits, insurance, sick leave, holidays and vacations, pensions and similar benefits. 5.1.5 Direct Expenses are those costs incurred on or directly for the project including, but not limited to, reasonable and necessary transportation cost, including current rates for CH2M HILL’s vehicles; meals and lodging; laboratory tests and analysis; computer services; word processing services, telephone, printing, reproduction charges; all reasonable and necessary costs associated with outside consultants, subconsultants and other outside services and facilities; and other similar costs. Reimbursement for Direct Expenses will be on the basis of actual charges when furnished by commercial sources and on the basis of current rates when furnished by CH2M HILL. A service charge for i0 percent (10%) will be added to Direct Expenses. 5.1.6 The full payment of pending CONSULTANT services shall be as set forth in the amendment to this contract upon approval by CITY’S City Council. follows: 5.2 The schedule of payments will be made as 5.2.1 Payment of the Basic Services will be made in monthly progress payments in proportion to the quantum of services performed, or in accordance with any other schedule of payment mutually agreed upon by the parties, as set forth in Exhibit "B", or within thirty (30) days of submission, in triplicate, of such requests if a schedule of payment is not specified. Final payment will be made by CITY after 980406 syn 0071397 2 CONSULTANT has submitted all Deliverables, including, without limitation, reports which have been approved by the project manager. 5.2.2 Payment of the Additional Services will be made in monthly progress payments for services rendered, within thirty (30) days of submission, in triplicate, of such requests. 5.2.3 No deductions will be made from CONSULTANT’s compensation on account of.penalties, liquidated damages, or other sums withheld by CITY from payments to general contractors." SECTION 2. Exhibit "~’ entitled "Scope of Services" is hereby amended to read as set forth in the attachment to this Amendment, which is incorporated in full by this reference: SECTION 3. Except as herein modified, all other provisions of the Contract, including any .exhibits and subsequent amendments thereto, shall remain in full force and effect. IN WITNESS WHEREOF, the parties have by their duly authorized representatives executed this Amendment on the date first above written. ATTEST:CITY OF PALO ALTO City Clerk APPROVED AS TO FORM: Senior Asst. City Attorney APPROVED: Mayor CH2M HILL, INC. Taxpayer I.D. No. 59-0918189 Assistant City Manager Director of Public Works Acting Director of Administrative Services Risk Manager Attachment: EXHIBIT "A": SCOPE OF SERVICES 9g0406 syn 0071397 CERTIFICATe. OF ACKNOWLEDGMENT (Civil Code § 1189) STATE OF COUNTY OF ))) On ~-[(D-q~o , before me, the undersigned, a nota[y public ¯ in and for said County, personally appeared personally known to me (or proved to me On the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument, and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. 980406 syn 0071397 4 ATTACHMENT A-2 to Exhibit A of CONTRACT C6085795 Scope of Work Final Design and Permitting Palo AltoRWQCP Incinerator Rehabilitation Consultant shall perform the final design and permit activities for the rehabilitation of the incinerators. The design shall meet the operating and environmental goals of the RWQCP. ~ Operational Goal The operational goal of the rehabilitation is to provide reliability, redundancy, and flexibility for the safe operation of the two existing incinerators. It is anticipated that rehabilitation would provide the RWQCP with two incinerators that will likely operate reliably and safely for a minimum of 15 years, with the normal scheduled maintenance. Each rehabilitated incinerator will have a rated capacity of 32 dry tons per day (DTD) at 28 percent feed solids. The RWQCP will normally operate one incinerator and keep one incinerator as a standby. The operating incinerator is expected to operate at approximately 80 percent of its rated capacity, 80 percent of the time. The incinerator will rotate duty once a year to reduce thermal stress and to allow for preventative maintenance. During high flow periods, the RWQCP will operate both incinerators at partial loads,, total throughput will not exceed the currently permitted 60 DTD. The design shall accommodate the addition of a thermal dryer in the future for peak shaving. Environmental Goal The environmental goal of the rehabilitation is to reduce pollutant releases to air, land, and water. The pollutants of special concern are dioxins (including furans), mercury, and cadmium. The rehabilitation should achieve the minimum reduction of the pollutants of concern as identified in the Solids Facility Plan. The anticipated reduction of dioxin is a minimum of 90 percent. The equipment and design of the system shall be such as to require equipment vendors to achieve 90 percent reduction or reduction to detectable limits. The rehabilitated incinerators must meet all current permit requirements and the known future permit requirements. The Consultant shall keep apprised of the regulatory activities and potential changes, and keep the RWQCP informed of the latest proposed regulations. Any water used in the incinerator process, including the scrubber water, is intended to be recycled to the headwork of the plant. The RWQCP currently meets all permit requirements but is close to its discharge limit for mercury and the interim limit for copper. Following completion of construction and startup, a detailed, comprehensive testing program will be conducted on the air and liquid systems. The goal is to verify performance and assess the level of pollutants actually in the plant effluent and subsequently to recommend additional treatment facilities and disposal techniques to handle the recycle stream, if necessary. The design shall make provisions for the future addition of the recycled stream treatment train. ATTACHMENT A-2 to EXHIBIT A of CONTRACT C6085795 1 ¯ "SCOPE OF WORK FINAL DESIGN AND PERMI’VI’ING PALO ALTO RWQCP INCINERATOR REHABILITATION Project Components The design shall include the following components, in general. The consultant shall also meet and review design requirements, strategy, and details with the City staff prior to the final design. Incinerator Improvements Visually inspect both incinerator shells. Conduct ultrasonic thickness measurements over the shell of the non-operating incinerator to help detect reductions of shell thickness that are not detectable by human vision. Repair the identified areas of cracking, bulging, heavy corrosion/thin steel on the shell of each incinerator. Repair will generally be accomplished by cutting out the flaws and welding on new steel patches. 3.At each flaw, inspect the refractory and/or insulation. Specify repair as may be necessary. (The repair is anticipated to be a performance specification and/or design). 4.Paint the steel shell on each incinerator. Inspect the hearths in Incinerator No. 2. Rebuild Hearth No. 5 on Incinerator No. 1 and, as may be necessary, for Incinerator No. 2. (This is a performance specification and/or design). Replace all exhaust ducting on each incinerator. Replace the ID fans using variable speed drives. Replace the combustion air fans and cooling fans. Add a new external afterburner and a two-stage Venturi scrubber (Venturi Pak potential sole-source). The installation is assumed to be outside of and adjacent to the north side of the incinerator building. Equipment will not be covered but will be installed behind a screening wall. Review and evaluate ways to improve the distribution of sludge to the top hearth. Revise or replace the rabble arm or teeth for more even distribution. Convert the top hearth of each incinerator to a burning hearth from its current function as an afterburner. 10.Replace the incinerator control system, including: ¯ID fan control ¯Main shaft control ATTACHMENT A-2 to EXHIBIT A of CONTRACT C6085795 2 SCOPE OF WORK FINAL DESIGN AND PERMIq-FING PALO ALTO RWQCP INCINERATOR REHABILITATION ¯Air/fuel control 11.Make provisions for the future addition of a scalping dryer and recycled flow treatment system. 12.Add a small electrical room inside the existing incinerator building to house the electrical gear for the incinerator scum system and equalization facilities. 13.If necessary, replace the center drive shaft and/or upper and lower bearings. 14.Replace the existing ash transfer/bagging system with a system that will transfer and either bag the ash or load trucks. The system should include a loading site that ~an hold approximately one day’s ash production and be located outside the incinerator building. Solids Equalization 1.Add a new steel, solids equalization/storage tank. The tank will be approximately 100,000 gallons, 25 feet in diameter, and 30 feet tall. Tank will include two approximate 15-hp submersible mixers. Tank is assumed to be pile-supported. 2.Add two new variable speed, discharge pumps. Pumps will discharge to the existing belt press feed piping. 3.Tank contents will be vented to the incinerator air systems for odor control. Project Phases The project will be implemented in the following phases. Preliminary Design, Data Development 1.Meet and discuss with plant personnel the project scope, strategy, and criteria for the design process. Site inspection to confirm the condition of all equipment and systems as identified "in the Incinerator Inspection Report and Solids Facility Plan. A detailed inspection will be done on the non-operating incinerator. 3.Identify and map the size and location of all incinerator flaws that can be visually detected. or detected through an ultrasonic thickness gauge. ATTACHMENT A-2 to EXHIBIT A of CONTRACT C6085795 3 SCOPE OF WORK FINAL DESIGN AND PERMITTING PALO ALTO RWQCP INCINERATOR REHABILITATION Technical Memoranda will be concise and focus on providing design definition. They will include a detailed description of modifications. Upon City approval of the proposed modifications, the consultant shall prepare additional sketches (including plan and major sectional views), sizing criteria, equipment performance specifications, electrical/I&C requirements, and interfacing with the existing system. a.Prepare a technical memorandum addressing the solids equalization/feed modifications.. b. Prepare a technical memorandum addressing the new air emissions abatement train. c. Prepare a technical memorandum addressing the new auxiliary equipment. d. Prepare a technical memorandum addressing the new incinerator system controls. eo Prepare a technical memorandum showing the size, configuration, location, and utility requirements for the future, scalping dryer. Identify interface points with the revised incinerator layouts. Include any necessary interface facilities with the recommendation for facilities identified in 3a through 3d above. f.Prepare a technical memorandum addressing the ash system modifications. Prepare also a preliminary process and instrumentation drawing. g. Prepare a technical memorandum addressing the solids equalization/storage tank. Geotechnical evaluation for the structures to be constructed on the north and south side of the incinerator building. Work shall include two borings to 75 feet with sampling at 5-foot intervals. A technical memorandum will be prepared summarizing the results of the sampling/testing (Atterberg limits, P-200, sieve, moisture content, consolidation, and UU shear strength) and the foundation recommendation, including tip elevations and lateral capacities. Update the preliminary construction Cost estimate prepared at the conclusion of the Facility Planning phase. The estimated shall be itemized so that costs for individual components may be assigned to different City budgets. 7.Prepare a preliminary construction schedule. Conduct review workshops with plant personnel to present and review the work. a.Conduct one detailed scoping meeting at the beginning of the work to solicit and resolve input from plant personnel. ATTACHMENT A-2 to EXHIBIT A of CONTRACT C6085795 4 .. SCOPE OF WORK FINAL DESIGN AND PERMIqqqNG PALO ALTO RWQCP |NC|NERATOR REHABIL|TATION b.Conduct one workshop at the approximate mid-point of the preliminary design. c.Conduct one workshop at the conclusion of preliminary design. Final Design Final design shall not proceed without a written "notice-to-proceed with final design" from the City. Final Design, 50 Percent 1. Prepare a 50 percent design submittal including: a. Major plan and sectional drawings. b. Major equipment specifications c. P&IDs and loop descriptions approximately 90 percent complete. d. Electrical one-line drawings. 2.Prepare a 50 percent, revised construction cost estimate and construction schedule. 3.Conduct review workshops with plant personnel. a. Conduct one at the approximate mid-point. b. Conduct one at the submittal time. Final Design, 90 Percent Prepare a 90 percent design submittal including: a. Complete P&IDs and loop descriptions. b. All specification sections, complete. Specifications shall incorporate City’s standard "boiler plate" specifications. c. All drawings, complete. d. Conduct a review workshop. e. Prepare a construction cost estimate and a construction schedule Final Design, 100 Percent 1.Prepare final, bid-ready contract documents, including all appropriate changes resulting from review comments made on the 90 percent submittal. 2.Revise the construction cost estimate and construction schedule according to the review revisions that may have been incorporated. 3.Provide 20 copies of the half-size Contract Documents, one full-size reproducible set of drawings, and an electronic file of the specifications and drawings. ATTACHMENT A-2 to EXHIBIT A of CONTRACT C6085795 5 SCOPE OF WORK FINAL DESIGN .AND PERMI’I~ING PALO ALTO RWQCP INCINERATOR REHABILITATION Permitting Permitting activities shall not proceed without a written "notice-to-proceed with the permitting ¯ service" from the City. Task 1-Pre-A/C Activities These activities cover both the new abatement train and the incinerators minor repairs and equipment in-kind replacement scenarios and activities. Under this task, the following work will be completed. Subtask 1A-Develop and Finalize Proposed Abatement Train and Incinerator Repairs A/C Strategy a. Meet up to two times each with the City and the BAAQMD to determine the best A/C strategy. Each meeting is assumed to be 5 hours, plus preparation and follow-up. Prepare a Memorandum of Understanding to document the process. bo The basic services assumes that the BAAQMD will rule that an A/C and P/0 is not required for the incinerator repairs and replacement-in-kind. If, however, the BAAQMD states that the A/C and P/0 will be required for the incinerator, simple repairs, and in-kind parts replacement, then prepare, as part of the optional services, either a simple updating notice or a minor modification A/C and P/0. Co Prepare one technical memorandum finalizing each incinerator’s baseline emissions, abatement system control efficiencies, and estimated emission reductions (all with backup). The technical memorandum will be prepared after meeting one time with the City and one time with the BAAQMD (as identified under 1.A.a above). Finalize all abatement equipment performance specification and performance testing requirements to be included in the final design. e. Conduct a site tour for the BAAQMD’s permitting engineer. Subtask 1 B-A/C and Banking Application Preparation Activities a. Prepare the A/C application for both the abatement train. The A/C includes the abatement equipment identified in the final design documents. Propose permit conditions covering abatement equipment performance, air emissions limits, record keeping, and potential future performance testing requirements. Note that there is a possibility that some modeling and risk assessment work may be required. This modeling and risk assessment work is included as part of the optional services. Also, if an A/C is required for the incinerator repairs and replacement-in-kind, this effort will be covered as an additional A’ITACHMENT A-2 to EXHIBIT A of CONTRACT C6085795 6 SCOPE OF WORK FINAL DESIGN AND PERMI’VI’ING PALO ALTO RWQCP INCINERATOR REHABILITATION service. b. Prepare the Emissions Banking application. Task 2-Address BAAQMD A/C and Banking Questions and Informational Requests a.Respond to BAAQMD questions regarding the submitted A/C and banking applications. Response is assumed to require one concise technical memoranda and one meeting (as per Task 1.A.a). Optional Tasks Associated with Tasks 1 and 2 Optional services include activities that either may not occur or that cannot be accurately estimated at this time. Those include: a.Attend additional meetings. b.Support BAAQMD Hearing Board activities. c.Provide outreach to the public or to regulatory agencies. d.Modeling and/or risk assessment. e.Prepare an A/C and P/0 for incinerator repairs and replacement-in-kind. Project Schedule Receive a Notice to proceed with preliminary design & geotechnical investigation, May 4, 1998 Begin preliminary design & geotechnical investigation, May 11, 1998 Complete preliminary design & geotechnical investigation, June 12, 1998 Review preliminary design (work stops during review period) Review complete, receive a notice to proceed with f’mal design & permit activities, July 1998 Begin final design and permit activities, July 1, 1998 Submit 50 percent design, September 7, 1998 50 percent review complete, September 21, 1998 (design will stop during review period) ATTACHMENT A-2 to EXHIBIT A of CONTRACT C6085795 7 o " SCOPE OF WORK FINAL DESIGN AND PERMITTING PALO ALTO RWQCP INCINERATOR REHABILITATION Submit 90 percent design, November 16, 1998 90 percent review complete, December 7, 1998 (design will stop during review period) Complete revisions to the 90 percent review comments, December 22, i998 ATTACHMENT A-2 to EXHIBIT A of CONTRACT C6085795 8 ¯ "