DATE: JUNE 25, 2024
DEPARTMENT: PUBLIC WORKS DEPARTMENT
FROM: DAVID JACOBS, P.E., L.S., PUBLIC WORKS DIRECTOR
BY: VICTOR SANCHEZ, ASSISTANT ENGINEER
TITLE: INDUSTRIAL WASTEWATER TREATMENT FACILITY SEDIMENT REMOVAL PROJECT, CIP NO. 9368 RECOMMENDED MOTION:
It is recommended that the City Council approve a Resolution:
Approving plans and specifications for the Industrial Wastewater Treatment Facility Sediment Removal Project CIP No. 9368; Approving the transfer of funds from certain CIP balances to the Industrial Wastewater Treatment Facility Sediment Removal Project, CIP 9368, to fully fund the project; and Awarding a contract to American Process Group, LLC for the Industrial Wastewater Treatment Facility Sediment Removal Project, CIP No. 9368, in the amount of $5,988,344 for Base Bid 1.
EXECUTIVE SUMMARY:
Extreme precipitation from the 2023 winter storms inundated the Industrial Wastewater Treatment Facility (IWTF) with flood waters from the nearby Salinas River. The flood waters caused damage to earthen berms, levees, an overflow basin, and deposited a layer of sediment across the percolation ponds. The Industrial Wastewater Treatment Facility Sediment Removal Project is a maintenance project to remove sediment and restore the percolation capacity of the percolation ponds and aeration lagoon.
The City is pursuing funding from the Federal Emergency Management Agency (FEMA) and California Office of Emergency Services (CalOES) for flood related damages. It is anticipated that FEMA will pay 75% of the costs of flood related damages. It is also anticipated that CalOES will reimburse 75% of the remaining 25% that is not anticipated to be covered by FEMA.
On March 12, 2024, 2 bids were electronically received and publicly opened and examined via a Zoom meeting. American Process Group LLC was found to be the apparent low, responsible, and responsive bidder. The bid included two base bid options. Although the American Process Group LLC came in below the Engineer’s Estimate, at this time the City only has funding to move forward with Base Bid 1, provided funding from other CIP projects is allocated to this project. To fully fund this project, funds from other CIP projects will be required.
BACKGROUND:
The City of Salinas owns and operates an Industrial Wastewater Collection and Conveyance System (IWCCS) which takes agricultural process water from 26 industrial users. The wastewater is conveyed for disposal or recycling to the Industrial Waste Treatment Facility (IWTF) located south of the City, adjacent to the Salinas River.
The extreme precipitation from the 2023 winter storms resulted in elevated water levels in the Salinas River. As a result, the IWTF was inundated with flood waters in January and March 2023. This caused damage to earthen berms, levees, an overflow basin, and deposited a layer of sediment across the percolation ponds. The deposited sediment has significantly impacted the percolation capacity of the ponds and has since limited its ability to infiltrate of the industrial wastewater to the underlying soils. In response, the City contracted with Carollo Engineers to provide design, construction support and construction management services as authorized by Salinas City Council Resolution No. 22762 (N.C.S.).
On March 12, 2024, two bids were electronically received and publicly opened and examined via Zoom meeting with the following results (see Exhibit A – Bid Tabulation sheet for details).
Table 1: BID RESULTS
Contractor
Based Bid 1
Base Bid 2
Total
American Process Group LLC
$5,988,344
$1,934,131
$7,922,475
Synagro-WWT, Inc.
$15,412,614
$5,446,569
$20,859,183
Engineer’s Estimate
$7,552,486
$2,072,644
$9,625,130
The engineer’s estimate provided by Carollo Engineers for the project is based on unit prices from the 2021 Aeration Lagoon Dredging Project. American Process Group LLC submitted a bid of $5,988,344 for Base Bid 1 and $1,934,131 for Base Bid 2, totaling $7,922,475, which is lower than the engineer’s estimate.
The City is pursuing funding from the FEMA for the flood related damages. It is anticipated that FEMA will pay 75% of the costs of flood related damages and it is anticipated that CalOES will pay 75% of the remaining 25% which is not anticipated to be covered by FEMA. This represents a net reimbursement of 93.75% of the total costs with the City having to fund the remaining 6.25%. FEMA and CalOES funding may be requested for the percolation ponds (Base Bid 1); therefore, Staff recommends only awarding Base Bid 1 to the apparent low responsive and responsible bidder, American Process Group LLC for the total amount of $5,988,344.
Construction is anticipated to begin in summer of 2024, weather permitting, and be completed by late fall 2024.
The City recommends that funding be reallocated from the below referenced CIP projects, in the amounts identified, to the Industrial Wastewater Treatment Facility Sediment Removal Project, CIP 9368.
Fund
Project
Project Name
Appropriation Adjustment
1000
9147
Boiler Replacement
(900,000)
1000
9153
Downtown Traffic & Parking Study
(50,000)
1000
9161
Geographic Information Systems
(20,000)
1000
9226
Fleet Consolidation Replacement
(35,000)
1000
9230
Vibrancy Plan Infrastructure
(853)
1000
9313
City Hall Elevator
(140,000)
1000
9322
Vendor Permit Implementation
(40,000)
1000
9338
IWTF Expansion Project
(400,000)
1000
9351
Finance Service Counter
(47,800)
1000
9533
Electric Locking System
(123,328)
1000
9612
City Hall Improvements
(100,000)
1000
9718
Reroof Public Buildings
(22,149)
1000
9720
Sidewalk & Drainage Repairs
(955,015)
1200
9123
Fleet Service Trucks
(24,877)
1200
9153
Downtown Traffic & Parking Study
(13,798)
1200
9197
E-Fleet Replacement
(25,371)
1200
9226
Fleet Consolidation Replacement
(201,376)
1200
9231
Vibrancy Plan State Highways
(42,851)
1200
9232
Vibrancy Plan Parking
(2,663)
1200
9271
Urban Forestry Equip Replacement
(127,439)
1200
9273
Fleet Vehicles Replacement
(3,491)
1200
9720
Sidewalk & Drainage Repairs
(1,000,000)
1200
9981
Street Preventative Maintenance Program
(1,000,000)
6200
9130
Salinas River Maintenance Program
(60,000)
6200
9321
Salinas Storm Water Management
(900,000)
6200
9794
IW Treatment Facility Repairs
(1,000,000)
5800
9368
IWTF Flood Damage Repairs
7,236,012
Upon reimbursement from FEMA and CalOES, the City will return the reimbursed monies into the respective funds’ fund balances as identified and will be used to balance future operating and CIP budgets. These CIP funds are not part of the FY 24-25 approved budget, as a result, shifting these funds should have minimal impact on these projects.
CEQA CONSIDERATION:
The City of Salinas has determined that the project is exempt from the California Environmental Quality Act (CEQA) Guidelines (Section 15301(c), Class I) because the work will be maintenance of an existing water reservoir.
Furthermore, the project does not qualify for any of the exceptions to the categorical exemptions found at CEQA Guidelines Section 15300.2 as all exceptions do not relate to the project scope of work for this project.
STRATEGIC PLAN INITIATIVE:
The proposed project meets the City Council’s goal of Infrastructure and Environmental Sustainability (City of Salinas Strategic Plan 2022-2025) by maintaining and improving City facilities.
DEPARTMENTAL COORDINATION:
This project will rely on coordination between the Wastewater and Water, Waste and Energy (WWE) Division and the Environmental & Maintenance Services Division in the Public Works Department. WWE will coordinate the overall execution of the IWTF repair efforts with input and field support from the Environmental & Maintenance Services Division staff. Staff will coordinate payment and reimbursement with the Finance Department.
FISCAL AND SUSTAINABILITY IMPACT:
For Base Bid No. 1, FEMA is expected to reimburse the City 75% of the costs of the flood related damages and CalOES is anticipated to reimburse 75% of the remaining 25%. This represents a net reimbursement of 93.75% of the total costs with the City funding the remaining 6.25%. Thus, for the $5,988,344 cost of Base Bid No. 1, the City’s portion will be $374,271.50.
Base Bid No. 2 is not fundable under FEMA or CalOES guidelines. The City would need to fully fund the cost of Base Bid No. 2.
The total project funding available as of May 6, 2024, for CIP 9794 – IW Treatment Facility Repairs and CIP 9794 – IWTF Flood Damage Repairs is as follows:
Source
Available Funds
CIP 9794 – IW Treatment Facility Repairs
$406,357.91
CIP 9368 – IWTF Flood Damage Repairs
$0
Total Balance
$406,357.91
ANTICIPATED PROJECT COSTS
Expenditure Description
Anticipated Expenditure
Base Bid 1 (Award)
$5,988,344
Contingency (10%)
$598,834
Direct Project Cost Subtotal
$6,587,178
Inspection (5%)
$299,417
Administrative Overhead
$50,000
City Staff Project Management and Admin. (5%)
$299,417
Soft Project Cost Subtotal
$648,834
Project Direct Costs
$6,587,178
Project Soft Costs
$648,834
TOTAL PROJECT COSTS
$7,236,012
Based on the tabulation above and the CIP transfers the project is funded in its entirety and includes direct costs, contingency, and indirect costs.
ATTACHMENTS:
Resolution
Exhibit A – Bid Tabulation Sheet
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