June 18, 2024
Public Works
DATE: June 18, 2024
TO: Mayor Martinez and Members of the City Council
FROM:
Daniel Chavarria, PE, Director of Public Works
Robert Armijo, PE, Deputy Director of Public Works/City Engineer
Jeffrey Barich, PE, Senior Civil Engineer
Mary Phelps, Water Resource Division Manager
Subject:
Grit and Aeration Project, Issuance of a Task
Authorization for Additional Unforeseen Work
FINANCIAL IMPACT: The proposed increase in the budgeted amount for the Grit and Aeration Basin project located at the Richmond Wastewater Treatment Plant, $4,875,580, will be funded
from the $50,000,000 State revolving fund loan received from the California Water Quality Control Board and
Wastewater Fund (40322931-400708-01X10). There will
be no impact on the General Fund.
PREVIOUS COUNCIL
ACTION:
Resolution 29-21 - 03/16/2021
Resolution 28-21 - 03/16/2021
Resolution 88-22 - 06/21/2022
STATEMENT OF THE
ISSUE:
Staff is recommending City Council approval of a task
authorization for additional unforeseen work 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 and the engineering during
construction subcontract awarded to Carollo Engineers, a consultant from Walnut Creek.
AGENDA
REPORT
June 18, 2024
RECOMMENDED ACTION: ADOPT a resolution approving a task authorization for additional unforeseen work for the Grit and Aeration
Basin project located at the Richmond Wastewater
Treatment Plant in the amount of $4,875,580, for a new
total amount not to exceed $50,482,068, for the period
expiration of December 31, 2024 – Public Works
Department (Daniel Chavarria 510-620-5478/Jeffrey
Barich 510-412-2009).
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 Veolia manages and operates. The projects aim 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.
To date the following resolutions have been adopted by City Council:
Resolution 29-21 to accept the State Water Resources Control Board’s State Revolving Fund (SRF) Loan in the amount of $50,000,000 (Attachment 2) Resolution 28-21 to appropriate the amount of $42,106,480, including a contingency in the amount of $2,760,943 for the replacement of the Grit and Aeration Basin (Attachment 3)
Resolution 88-22 to issue Contract amendment #1 with Veolia in the amount of $3,500,000, for a total amount contract amount not to exceed $45,606,488 (Attachment 4)
Twenty (20) Contract Change Orders have been approved by the City for $11,692,800, which have depleted the original contract contingency allocation and associated amendments (Attachment 5). Some of the more costly change orders are since there were many unknowns at the plant due to missing plans and the age of the plant. Other changes were suggested engineering changes that would improve operations and treatment of the wastewater at the treatment plant. To date, a total of $45,606,488 has been paid for the construction portion of this project.
Most change orders allow for a nine (9) percent mark-up for Veolia per the “Agreement”.
However, two (2) of the change orders (#10 and #19) allowed Veolia to earn the full
16.5 percent markup as they were design changes and not part of the original scope.
Since the project is near completion, these should be the last contract change orders and the final task authorization required. The project will be paid from the $50,000,000 State Revolving Fund (SRF) loan received from the State Water Quality Control Board and from the Wastewater Fund.
June 18, 2024
The Water Resource Recovery Division of the Public Works Department will continue managing the project task authorizations issued to Veolia. Veolia will continue managing the subcontracts with Shimmick Construction Company, Inc.
City staff is requesting that the City Council adopt the resolution authorizing the issuance of a task authorization in the amount of $4,875,580 for Veolia via its subcontractor, Shimmick, to continue the work on the Grit and Aeration Project at the Wastewater Treatment Plant. The total project cost shall not exceed $50,482,068 for the construction of the Grit and Aeration project
DOCUMENTS ATTACHED:
Attachment 1 – Resolution
Attachment 2 – Resolution 29-21
Attachment 3 – Resolution 28-21
Attachment 4 – Resolution 88-22
Attachment 5 – Detailed List of Change Orders