Presenters: Environmental Services Department
Mariana Chavez - Vazquez, Deputy Director, RWF CIP
Alicia Alba, Principal Engineer, RWF CIP
San José City Council Item No. 6.1 March 1, 2022
Digested Sludge Dewatering Facility
Approval of Amended and Restated ContractCIP
Project History
–
PMP and Biosolids Transition Planning
Approval of Plant Master Plan
• Incorporated Milpitas Guiding Principles
• Recommended new Biosolids Management Program
2013
Approval of Biosolids Transition Strategy
• Proceed with temperature-phased anaerobic digestion (TPAD) process, New Dewatering Facility, retirement of lagoons and drying beds, postponement of on-site thermal and greenhouse drying facilities, and procurement of various off-site disposition service contracts Approval of Odor Control Implementation Plan
• Completion of Phase 1 and decommissioning of lagoons and drying beds needed to achieve RWF’s odor goal and fence line (Phase 1: DTFU, New Headworks, New Dewatering Facility, and East PC Rehabilitation) 2015
Approval of Design-Build Contract with Walsh Construction Company (Prelim. Services) & Completion of Biosolids Disposition Market Assessment
• Limited capacity around SF Bay Area with no single service provider with sufficient capacity • Increasing prices to beneficially use biosolids
2019
Approval of Dewatered Biosolids Management Strategy
• Procure short-term contracts for off-site beneficial use of the RWF’s dewatered biosolids, develop an on-site fertilizer facility, and permit local natural and working lands to receive biosolids Issued RFP for Transportation and Beneficial Use Services for Dewatered Biosolids 2021
Senate Bill 1383 Regulations Take Effect
• Goal: Reduce short-lived climate pollutants in landfills • Organic waste definition includes biosolids and its use as ADC is considered landfill disposal 2022
2 Drivers for Dewatering Facility
3 Position RWF to have multiple and diversified end
use options
Reduce Odors in the Community
Reduce footprint of Biosolids Processing area and
enable other land use
Provide Flexibility to respond to regulatory
changes and market preferences
Current and Future Biosolids Management
4 Lagoons
(~3 years)
Drying Beds
(~6 months)
Newby Island Landfill (ADC)
Regional
Wastewater Facility
Current Practice: ~3,000 truck
trips to transport 50k
-
60k wet
tons of biosolids from drying
beds for ADC to Newby Island
Landfill (75%
-
80% dry)
Future Practice: ~5,000 truck
trips to transport ~120k wet tons
of biosolids from the Dewatering
Facility for beneficial use (20%
-
25% dry)
Design Build Contract
-
2 Phases
Original Contract
5 Preliminary Services Phase
• Awarded in June 2019 to
Walsh
• $7.4M plus 10% contingency,
including:
• Permitting,
• Subsurface investigations
• Condition assessments
• Design to 60%
• GMP
• Status: Completed Nov. 2021
• Early Work Package for
$10.0M initiated in July 2021
Design-Build Phase
• $131M (includes EWP) plus
10% contingency
• Including:
• Permitting
• Construction
• Engineering Services
• Startup and
commissioning
• Acceptance testing
• Transitional Services
• Notice to Proceed: March 2022
• Final Completion: July 2025
Amended Contract
Contract
Negotiations
Dewatering Project Overview
–
Site Location
6 Main Dewatering
Site
Sludge
Transfer Pump
Station
DS Storage &
Pump Station
Sites
Pipeline Corridor
G Street
Rendering of New Dewatering Facility
7 Cake Bins and
Load out Bays
2nd Floor Dewatering Building
(Centrifuges, Process Area)
1st Floor Dewatering Building
(Centrifuge Feed Pumps and
Polymer Blenders)
Cake Conveyors
Electrical Room
Personnel Area
SVAWPC
View of Access from
Zanker
Road
8 View of Centrifuges for Dewatering Sludge
9 Centrifuges
Polymer and
Sludge Feed
Cake
Conveyors
Amended Contract Negotiations
Issues and Challenges:
– Market conditions due to COVID impacts have led to supply chain issues resulting in higher cost escalation and schedule impacts:
» Lack of inventory leading to longer material/equipment procurement times » Subcontractor bid prices expiring within 30 to 60 days compared to usual 90-120 days » Higher subcontractors' bids e.g Glazing, HVAC, Fencing, Curb and Gutter, Landscaping, Paving, Electrical, Misc. Metals.
Steps taken to ensure fair pricing:
– Open book pricing by design-builder (early cost model) – Value Engineering (Program Practice)
– Independent cost estimate reviews, analyses and benchmarking (Program Practice)
– Competitive bidding of subcontractor and supplier packages – Collaborative risk management: DB contingency; market escalation risk – Negotiation of Fixed Price Contract:
» Reduced Walsh’s Price from $134.7M to $131.2M
» Increased Walsh’s Delay Liquidated Damage from $1,000 per day to $7,000 per day
10 Cost Evolution of Price
11 $127.5
$119.9
$133.8
$134.9
$131.2
$137.2
$131.2
-$9.7M
-$7.6M
+$13.9M
+$1.1M -$3.7M
GMP Development
Project Cost Summary
12 Fixed Price Build-Up
• Final Design (60-100%)
• Engineering Services
During Construction
• Construction
− Direct Costs
− General Conditions
− Overhead and Profit
− DB Contingency
− Escalation
− Allowances
Total Fixed Price: DB Final Design + ESDC ($3.7M) + Construction (incl. EWP) ($127.5M) =131.2M City
Project Delivery
$22.6M
DB
Final Design
+ ESDC
$3.7M
City-held
Contingency
$12.1M
Construction $127.5M
DB
Prelim. Services
$8.2M
Total Project Cost: $174M
Recommendation
1. Approve the Amended and Restated Design-Build Contract (Amended Contract) with Walsh Construction for the final design, construction, commissioning and acceptance testing of the Digester Sludge Dewatering Project at the San José-Santa Clara Regional Wastewater Facility with a base Fixed Price of $131,161,646.
2. Approve a ten percent construction contingency (excluding the EWP price) in the amount of $12,115,379 for adjustments to the base Fixed price in accordance with the Amended Contract.
13