June 21, 2022
Public Works
DATE: June 21, 2022
TO: Mayor Butt and Members of the City Council
FROM:
Joe Leach, P.E., Public Works Director
Mary Phelps, Project Manager
Subject: Contract Amendment to Increase Total Contract Budget for the Project to Replace the Grit and Aeration Project Located at the Richmond Wastewater Treatment Plant
FINANCIAL IMPACT: Increase the contract amount budgeted for the Grit and Aeration Basin project located at the Richmond
Wastewater Treatment Plant in the amount of $3,500,000
for an amount not to exceed $45,606,488 which will be
funded from the $50,000,000 state revolving fund loan
received from the California Water Quality Control Board Org/Obj code 4003-40322931-400708-01X10).
PREVIOUS COUNCIL
ACTION:
March 16, 2021 (Resolution 28-21)
STATEMENT OF THE
ISSUE:
City staff is recommending City Council approval to
increase the contract budget for the Grit and Aeration
Basin project located at the Richmond Wastewater
Treatment Plant. This project is being managed by
Veolia, with the construction subcontract awarded to
Shimmick Construction Company, Inc., a contractor from
Oakland, California, and the engineering during
construction subcontract awarded to Carollo Engineers, a consultant from Walnut Creek, California.
RECOMMENDED ACTION:
ADOPT a resolution to increase the contract budget for
the Grit and Aeration Basin project located at the
Richmond Wastewater Treatment Plant, in the amount of
$3,500,000, for a total amount not to exceed $45,606,488 - Water Resource Recovery (Joe Leach 620-5478 / Mary
Phelps 621-1269).
AGENDA
REPORT
June 21, 2022
DISCUSSION:
The City of Richmond and Veolia Water (Veolia) have implemented the High Priority Critical Improvements Projects at the City's Wastewater Treatment Plant (WWTP), which is managed and operated by Veolia. The purpose of the projects is to replace aging and unreliable infrastructure, improve treatment operating efficiency, comply with future discharge regulations, and improve the functionality of the existing WWTP. The improvements were identified through previous planning efforts, including the 2010 WWTP Master Plan and the 2016 WWTP Facility Plan.
On March 16, 2021, City Council approved two (2) Resolutions
Resolution 28-21 to appropriate the amount of $42,106,48, including a contingency in the amount of $2,760,943 for the replacement of the Grit and Aeration Basin.
Resolution 29-21 to accept the State Water Resources Control Board’s State Revolving Fund (SRF) Loan.
Eight (8) Contract Change Orders (Attachment 2) have been approved by the City in the amount of $2,493,560, which has almost depleted the original Contract Contingency allocation.
There have been additional unforeseen items that need to be addressed that are itemized in Attachment 3. To cover these additional costs, the contract will need to be increased an additional $3,500,000, for a total amount not to exceed $45,606,488.
As previously stated, the project will be paid from the $50,000,000 state revolving fund (SRF) loan received from the State Water Quality Control Board.
The Water Resource Recovery Division of the Public Works Department will continue managing the project Task Authorization to Veolia, and Veolia Water West Operating Services, Inc. will continue managing the subcontracts with Shimmick Construction Company, Inc.
Public Works staff is requesting City Council adopt the resolution increasing the contract amount for Shimmick to continue the work on the Grit and Aeration Project at the Wastewater Treatment Plant.
DOCUMENTS ATTACHED:
Attachment 1 – Resolution
Attachment 2 – Exhibit 1 – Current Change Orders
Attachment 3 - Additional Contingency Budget items for Grit and Aeration Project