June 25, 2024
Public Works
DATE: June 25, 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
Subject:
Sodium Bisulfite Facility and Chlorine Building Upgrade Project Completion and Financial Close-Out
FINANCIAL IMPACT: The increase of the contract in the amount of $666,419 will be paid from the Wastewater Enterprise Fund
(40322931-400708-01N10).
PREVIOUS COUNCIL
ACTION:
July 27, 2021 - Resolution 97-21
STATEMENT OF THE
ISSUE:
The upgrade of the Sodium Bisulfite Facility and Chlorine Building is ready for close-out, having been beneficially occupied. Eight change orders increased costs by
$666,419 due to unforeseen conditions. City Council
approval is sought to accept the project as complete and to allocate additional 2019A Wastewater Bonds funds to
cover these expenses.
RECOMMENDED ACTION:
ADOPT a resolution to increase the contract for the
Sodium Bisulfite (SBS) Project in the amount of $666,419 for a total amount not to exceed $7,096,210; and
ACCEPT the Sodium Bisulfite (SBS) Facility and Chlorine Building upgrade project as complete – Public Works
Department (Daniel Chavarria 510-620-5478 / Robert
Armijo 510-620-5477).
AGENDA
REPORT
June 25, 2024
DISCUSSION:
The West County Agency (WCA) Sodium Bisulfite (SBS) Facilities Improvements project is a joint effort between the City of Richmond, WCW, Veolia Water and supported by various engineering design and construction consultants. The SBS Facilities remove chlorine from combined effluent discharged from both treatment plants prior to final discharge to San Francisco Bay. The facilities are located at the City's treatment plant in Point Richmond and while jointly owned, they are operated by the City of Richmond (Veolia).
Design began in mid-2020 and construction started in the second half of 2021. Costs for this project are split 65 percent and 35 percent between the City of Richmond and West County Wastewater District (WCW), respectively.
On July 27, 2021, the City Council adopted Resolution No. 97-21, authorizing a construction contract with Veolia Water with a subcontract to Myers & Sons Construction for the upgrade of the Sodium Bisulfite (SBS) Facility and Chlorine Building at the Richmond Wastewater Treatment Plant. The total authorized amount was $6,429,791, which included a 15 percent contingency. The project was to be partially funded through the 2019A Wastewater Bonds and Wastewater Enterprise Funds. This project was identified as a critical Capital Improvement Project necessary for improving the quality of the treated water flowing into the San Francisco Bay.
Many issues and challenges were uncovered which could not have been foreseen until starting construction and proceeded with the necessary field work. The facilities were generally in poor condition, drawings and information (much of it 40 years or older) the project was bid on were not always complete or accurate and there were certain conditions uncovered that were previously unknown.
During the course of the project, eight change orders totaling $1,457,740 were necessary to address unforeseen conditions and additional required work, bringing the total project cost to $7,096,210. These changes were critical to the successful completion of the project and were within the expected contingencies for projects of this complexity and scale.
Project costs are detailed as follows:
A. Construction Contract Amount $5,638,470
B. Approved Change Orders $1,457,740
C. Total Project Cost $7,096,210
D. Prior Amount Approved by City Council (Res. 97-21) $6,429,791 Amount Outstanding $ 666,419
It is now proposed that the City Council adopt the resolution and accept this project as complete and authorize the allocation of an additional $666,419 from the Wastewater
June 25, 2024
Enterprise Fund to cover the costs associated with the approved change orders. This allocation will enable the final payments to be made to Veolia Water and close out the project financially.
The project has been completed within the scope, quality standards, and compliance requirements set forth by the City of Richmond and has significantly improved the functionality and environmental compliance of the wastewater treatment facility.
Staff is requesting Council approval of the project and payment of the outstanding balance.
DOCUMENTS ATTACHED:
Attachment 1 – Resolution
Attachment 2 – Resolution 97-21
Attachment 3 – SBS Tank list of Change Order costs
Attachment 4 – Veolia Task Authorizations (contract)