DATE: December 3, 2024
TO: Mayor and City Council
FROM: Director of Public Works
SUBJECT: Adopt a Resolution Approving the Plans and Specifications and Calling for Bids for the Water Resource Recovery Facility’s (WRRF) New Administration and Laboratory Project, Project No. 07786
RECOMMENDATION
That Council adopts the attached resolutions (Attachments II and Attachment III) Approving the plans and specifications for the Water Resource Recovery Facility’s (WRRF) New Administration Building and Laboratory Project, Project No. 07786, and calling for construction bids to be received on January 28, 2025; and Approving the use of certain sole source products in the plans and specifications for the WRRF New Administration Building and Laboratory Project
SUMMARY
The Water Resource Recovery Facility (WRRF) treats an average flow of approximately eleven million gallons per day (MGD) and meets current requirements to discharge treated effluent to the deep waters of the San Francisco Bay. The existing Administration and Laboratory Building at the WRRF is obsolete and is no longer adequate to house WRRF staff. In June of 2020, the Phase II Facilities Plan Recommended Replacement of the Existing Administration Building and Laboratory. The deficiencies of the existing building are expected to be further exacerbated by the Regional Water Quality Control Board’s issuance in July 2024 of the Regional Watershed Permit, which is projected to eventually trigger further increases in staffing needs at the WRRF.
The WRRF New Administration Building and Laboratory Project includes the construction of a two-story operations and laboratory building with a solar carport parking lot in the footprint of the old administration building and parking lot. Design is currently at 100% and ready to be advertised for bidding. To comply with the California Environmental Quality Act (CEQA), an Initial Study/Mitigated Negative Declaration (IS/MND) was prepared that outlines mitigations which have been incorporated into the bid documents.
The IS/MND and Site Plan Review were Approved by the Planning Director on September 30, 2024.
As this project’s design and CEQA document are complete, staff are recommending that the drawings and specifications be approved for and advertised for bidding.
The specifications include provisions to allow sole-sourcing of specific brands of several items including card readers for site and building access, key switch system for emergency Fire Department access, programmable logic controllers for control of plant equipment, and variable frequency drives.
BACKGROUND
The existing Administration Building was originally constructed in 1970, which at the time included offices for the plant superintendent and laboratory supervisor, an operations center, locker rooms, and a small laboratory. In 1981, the building was modified to include a breakroom/training room. It expanded again in 1994 to accommodate increased laboratory space requirements. Since it was last modified, the WRRF has seen increased staffing levels due to increasing regulatory requirements. Consequently, the existing facilities can no longer efficiently accommodate the space needs and functional requirements of daily operations. Engineering staff are currently housed in a temporary trailer at the WRRF site. Staffing levels are anticipated to continue to increase with the recycled water system as well as the expansion of the treatment process to incorporate nutrient reduction.
In June of 2020 Black and Veatch completed the Phase II Facilities Plan, which recommended a number of improvements to the WRRF, including the replacement of the existing Administration Building and Laboratory. On July 5, 2022, Council Authorized an Agreement with Brown and Caldwell for design services for the Phase II Improvements Projects, which consists of significant upgrades throughout the WRRF, including replacement of the Administration Building and Laboratory. On December 6, 2022, Council authorized to Amend the PSA with B&C for final design services for the Administration and Laboratory Building.
The WRRF New Administration Building and Laboratory Project includes the construction of a 21,600 square foot two-story administration and laboratory building and a new parking lot. The design is at the 100% design stage and the Consultant is currently incorporating final review comments from the City, construction management team, building department, and planning department into the final bid documents. To comply with CEQA, an IS/MND was prepared and posted for public comment on July 26, 2024. The CEQA document was adopted by the City of Hayward Planning Director on September 30, 2024, and a notice of determination was filed with the County on October 3, 2024, The Site Plan Review was also approved by the Planning Director on September 30, 2024. The mitigations outlined in the IS/MND have been incorporated into the bid documents, and the project will comply with the Conditions of Approval issued by the Planning Director.
Staff have applied for building permits and grading permits and anticipate receiving these permits before the start of construction. The project is scheduled to advertise bid documents in December 2024 and receive bid proposals by January 28, 2025. Construction is anticipated to start around March 2025 and to last around 27 months.
The project is eligible under the WIFIA funding program, which will finance 49% of the project cost. For the remaining 51% of the project cost, the staff will look to the option of financing through other sources such as municipal bonds, which require further analysis of the rate and fee impacts.
On November 15, 2016, Council passed a resolution authorizing a Community Workforce Agreement (CWA) with the Alameda County Building Trades Council (BTC), which applies to City projects with construction costs of $1,000,000 or more. The agreement requires contractors to use local union hiring halls, encourages contractors to employ Hayward residents or Hayward Unified School District graduates, and requires hired workers to pay union dues and other benefit trust fund contributions, etc. The CWA agreement applies to this Project because the construction cost estimate is more than $1,000,000.
When this project began, the WRRF was named the Water Pollution Control Facility (WPCF). As such, some supporting project documentation, such as the plans, specifications and CEQA document, continue to refer to the facility as the WPCF. One component of the project is to update site and building signage to reflect the recent name change.
DISCUSSION
PROJECT SCOPE
The WRRF New Administration Building and Laboratory Project, Project No. 07786, includes the construction of a new 21,600 square foot two-story administration and laboratory building and a new parking lot on the footprint of the existing administration building and existing parking lot. The existing facility has reached the end of its useful life. The new building will house management, administration, operations, maintenance, engineering, and laboratory functions.
The project includes the following components:
Interior Floor Plan: The new Administration Building and Laboratory project will include a waiting and reception area, sample receiving room, laboratory rooms, mud room, men’s and women’s lockers with showers, laboratory gas storage, and work rooms on the first floor. The second floor includes a control room, office spaces, meeting rooms, breakroom and training room, and storage spaces. The designed floor plan and equipment layout were coordinated with the City’s current operations and maintenance team.
Structure: The steel-framed structure has a spread footing foundation with architectural metal cladding and window wall systems on the exterior. The building reaches about 32 feet high.
Exterior Features and Landscaping: The new project will add a new trash enclosure, bike lockers and racks, automatic gate entryway, and amphitheater seating. A bus parking and drop-off area is included for visitors. Installation of new fencing and camera is included at both automatic entrance gates for additional security. The new landscaping and planting areas around the perimeter of the building will be irrigated with recycled water. Three existing trees at the site will be removed and replaced with 27 new trees.
Parking Lot: The parking lot has a total of sixty-two (62) parking spaces with thirteen (12) spots dedicated to electric vehicle (EV) charging station spaces. Nineteen (19) parking spaces will be EV charging stations ready for potential future developments. Twenty-three (23) of the compact parking spaces will be under a 75kW solar array canopy to generate renewable energy. The parking lot has five (5) accessible parking spaces with EV charging station capabilities for two (2) of the accessible parking spaces.
Lab Dedication: Farid Ramezanzadeh served as the City’s Laboratory Supervisor from April 2003 until his passing in an accident in September 2022, only a few months shy of his planned retirement. Farid was actively involved in the planning stage of the laboratory portion of the Administration Building, and the laboratory layout. On December 5, 2023, the Council approved to dedicate the new laboratory facility to Farid to commemorate his life and many accomplishments that he achieved throughout his nearly 20 years of service to the City of Hayward as well as his dedication to advancing the water industry.
LEED Certification: The building is designed for LEED Silver certification and will be of all-electric design. It does not utilize any natural gas for heating appliances.
Notice to proceed will be issued following the bid opening in January 2025. Construction is anticipated to begin in March 2025 and is estimated to take approximately 27 months to complete. After the new administration building is occupied, the demolition of the old building and installation of the new parking lot can begin.
SOLE SOURCE ITEMS
As this project is a City facility, some items will be specified with no equal so as to match other City facilities as well as other components on site. The Public Contract Code prohibits “calling for a designated material, product, thing, or service by specific brand or trade name unless the specification is followed by the words “or equal.” This ensures competitive bidding and potentially lower cost to taxpayers. The Public Contract Code Section 3400(c) allows a particular material, product, thing, or service to be designated by specific brand or trade name for the following purpose(s):
(1) In order that a field test or experiment may be made to determine the product’s suitability for future use.
(2) In order to match other products in use on a particular public improvement either completed or in the course of completion.
(3) In order to obtain a necessary item that is only available from one source. (4) In order to respond to an emergency declared by a local agency.
The majority of the materials, products, and services specified for this project are either performance based or include specific brands and follow by the “or equal” clause; however, there are several products and services that will be specified with specific brands only without the “or equal” clause since these are essential to the project. The following items will be sole sourced so that brands other than the ones specified below will not be considered:
Card readers for wireless entry shall be Schlage Allegion, so as to ensure consistency and compatibility with other City facilities.
Key switch for Fire Department gate access shall be Knox Box for consistency with other City facilities.
Programmable logic controllers (PLCs) shall be Allen Bradley ControlLogix to ensure consistency with other SCADA components on the site of the WRRF.
Variable frequency drives (VFDs) shall be Allen Bradley Powerflex 755 so as to match other variable frequency drives at the WRRF site
ECONOMIC IMPACT
The new Administration Building and Laboratory will accommodate a projected increase in staff levels due to increasing regulatory requirements at the WRRF and increase in future wastewater flows. The new Administration Building and Laboratory will support the overall Phase II Improvements Project, which will keep the WRRF incompliance with regulations and accommodate future population growth throughout Hayward.
The construction cost of the overall Phase II Project, including the Administration Building and Laboratory, is estimated to up to $309 million. It is anticipated that these improvements will substantially impact rates, resulting in increases over the current sewer rates over the next ten years, and the sewer connection fees.
FISCAL IMPACT
Staff have applied for a loan from the United States Environmental Protection Agency (EPA) through the Water Infrastructure Financing and Innovation Act (WIFIA) to assist in paying for the Phase II Project in the amount of 49% of the total project costs. Staff are anticipating finalization of the loan in Spring of 2025. The remainder of the project would primarily be funded through tax exempt municipal bonds, which are not yet issued. Staff continue to monitor if applying for a State Revolving Fund (SRF) loan is feasible and are seeking grants as well. Budget adjustments will be brought forward to the Council through the annual budget approval process. The WRRF Administration Building and Laboratory Project is eligible for funding through the WIFIA loan, and any municipal bonds would be sized to accommodate the funding of the Administration Building and Laboratory.
The FY 2025 through FY 2034 Capital Improvement Project (CIP) includes funding for Project 07786 New Administration Building and Laboratory Project described in the Sewer Improvement Fund (Fund 612). Table 1 shows the project as described in the approved CIP.
Table 1. Sewer Improvements Funding
Fund
Project No.
Description
Budget
612
07786
WRRF New Administration Building and Laboratory Project $44,979,000
The breakdown for project costs is as follows for Project No. 07786:
Total Project Cost
Engineering Services (Consultant)
$4,705,159
Preconstruction and Construction Management (Consultant) $3,547,923
Construction Contract (Estimated)
$36,600,000
Construction Contingency (10% of Construction Contract) $3,660,000
Total
$48,513,082
The construction cost shown above is an estimate and is less than what is currently being considered in the WIFIA loan documents. This number is somewhat higher than what was previously presented to Council, and is also higher than the current number listed in the CIP once contingency and soft costs are included. This is primarily due to updates in the cost estimate of some construction materials, most notably structural steel. Should the construction cost exceed the funds currently allocated in the CIP, staff will request that additional funds be appropriated to cover the additional cost.
STRATEGIC ROADMAP
This agenda item supports the various goals of Council’s Strategic Roadmap. The Administration Building and Laboratory Project is an integral part of the Phase II Improvements Project, which will address infrastructure needs and improvements to increase the reliability of the City’s treatment plant, construct process improvements to meet more stringent nutrient limits in accordance with upcoming regulatory requirements, and prepare the WRRF for projected sea level rise, while supporting the goals of Council.
Specifically, this item relates to the implementation of the following projects:
Confront Climate Crises & Champion Environmental Justice.
Mitigate Climate Crisis Impacts through Resilient Design and Community Engagement Project C14b: Implement Shoreline Master Plan, including mitigating sea level rise in the industrial corridor through building requirements and outreach Invest in Infrastructure.
Invest in Water Supplies, Sanitation Infrastructure & Storm Sewers Project N19: Update Water Pollution Control Facility Phase II Plan
SUSTAINABILITY FEATURES
This project will help the City’s maintenance staff and engineers to conduct testing and maintain the equipment needed to treat wastewater efficiently and adequately before discharging into San Francisco Bay.
The Administration Building and Laboratory design will meet State and local requirements related to sustainability (i.e., California Building Code, California Energy Code, Hayward Reach Code, etc.) which require certain levels of energy efficiency, resource conservation, material recycling, etc. In addition, the building has been designed to meet Leadership in Energy and Environmental Design (LEED) standards for a Silver Certification, or better. The Administration Building and Laboratory will also include a 75kW solar array in the parking lot to generate renewable energy. The new landscaping around the building will consist of low maintenance, low water use plantings and will be irrigated with recycled water from the WRRF.
PUBLIC CONTACT
As part of the funding process, an environmental study (Initial Study and Mitigated Negative Declaration) was posted for public review and comment.
There is currently a website hosted on the City’s website that posts periodic updates throughout the multi-year duration of the project. This will continue.
NEXT STEPS
If the Council approves the project, staff will advertise the construction project for public bidding and turn to the Council for the award of the construction contract after construction bids have been received and reviewed.
The following schedule has been developed for this project:
Receive Bids
January 28, 2025
Award Construction Contract
February 28, 2025
Notice to Proceed
March 2025
Construction Completion
May 2027
The project is anticipated to be completed in May 2027. Staff aims to issue the notice to proceed in March 2025 to begin the material procurement to accommodate for any long lead times for the building and start mobilization. Staff will turn to the Council for the award of the construction services after bids are received and reviewed.
Prepared by: Nancy Tran, Assistant Civil Engineer
Reviewed by: Kyle Carbert, Senior Utilities Engineer
Recommended by: Alex Ameri, Director of Public Works
Approved by:
____________________________
Dustin Claussen, Interim City Manager
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