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HomeMy WebLinkAbout07-06-2011 Operations Committee Agenda Packets A4 1, Orange County Sanitation District s Wednesday, July 6, 2011 Regular Meeting of the 5:00 P.M. Operations Committee Administration Building Board Room 10844 Ellis Avenue Fountain Valley, CA (714) 593-7130 AGENDA PLEDGE OF ALLEGIANCE: DECLARATION OF QUORUM: PUBLIC COMMENTS: If you wish to speak,please complete a Speaker's Form and give it to the Clerk of the Board. Speakers are requested to limit comments to three minutes. REPORTS: The Committee Chair and the General Manager may present verbal reports on miscellaneous matters of general interest to the Committee Members. These reports are for information only and require no action by the Committee. CONSENT CALENDAR: 1. Approve Minutes of May 4, 2011, Operations Committee meeting. 2. Recommend to the Board of Directors to: Approve a Reimbursement Agreement with the City of Fullerton for costs incurred for the modification of Orange County Sanitation District facilities within State College Boulevard,the Newhope-Placentia&Cypress Trunk Replacements, Project No. 2-65, in an amount not to exceed $5,050,000, in a form approved by General Counsel. 3. Recommend to the Board of Directors to: A. Approve a budget increase of $196,000 for Replacement of the Rocky Point Pump Station, Contract No. 5-50, for a total budget amount of$20,947,000; and B. Approve a contingency increase of $335,320 (4%) to the construction contract with Kiewit/Mass, a Joint Venture, for Replacement of the Rocky Point Pump Station, Contract No. 5-50, for a total contingency of $1,173,620 (14%). 07/06/11 Operations Committee Agenda Page 1 of 4 4. Recommend to the Board of Directors to: A. Approve a Purchase Agreement with Jamison Engineering for On-Call Contractor Support Services, Specification No. S-2011-483BD, for the period July 1, 2011 through June 30, 2012 for a total annual amount not to exceed $875,272.00, with four one-year renewable options; and B. Approve a contingency of $87,527.20 (10%), annually, if needed. 5. Approve a contingency increase of $14,742 (14%) to the Professional Consulting Services Agreement with RBF Corporation for Permanent Upgrades to Plant Security Barriers, Project No. J-108, for a total contingency of $25,272 (24%). 6. Recommend to the Board of Directors to: A. Award a contract to Polydyne, Inc. for the purchase of Anionic Polymer, Specification No. C-2011-47613D, for the period September 1, 2011 through August 31, 2012, for a unit price of $2.75 per active pound delivered, plus applicable sales tax for a total annual amount not to exceed $413,000 with four one-year renewal options; and B. Approve an annual unit price contingency of $41,300 (10%) 7. A. Approve Professional Consultant Services Agreement with Lionakis to provide On-Call Architectural and Landscaping Consulting services,for Specification No. FR-2011-479BD for the period of September 1, 2011 through August 31, 2012, with four one-year renewable options, for an annual amount not to exceed $100,000; and B. Approve an annual contingency of $20,000 (20%) NON-CONSENT CALENDAR: 8. A. Approve Plans and Specifications for the P1 Various Locations HVAC Upgrade/Replacement, Project No. FE07-28, on file at the office of the Clerk of the Board; B. Approve Addendum Nos. 1 and 2 to the plans and specifications; C. Receive and file bid tabulation and recommendation; D. Reject the low bid from Retrofit Technology, Inc., as "Non-Responsive" for omitting a price for Bid Item No. 1; E. Award a construction contract to Bon Air, Inc., for P1 Various Locations HVAC Upgrade/Replacement, Project No. FE07-28, for an amount not to exceed $105,000; and F. Approve a contingency of $21,000 (20%). 07/06/11 Operations Committee Agenda Page 2 of 4 9. Recommend to the Board of Directors to: A. Approve a Professional Design Services Agreement with The Austin Company to provide professional design services for Title 24 Access Compliance and Building Rehabilitation Project, Project No. P1-115, for an amount not to exceed $2,200,000; and, B. Approve a contingency of $220,000 (10%). 10. Recommend to the Board of Directors to: A. Approve a Professional Design Services Agreement with Brown and Caldwell for Sludge Dewatering and Odor Control at Plant No.2, Job P2-92, providing for engineering design services for the amount not to exceed $5,682,963; and, B. Approve a contingency of $568,296 (10%). 11. Recommend to the Board of Directors to: Authorize the General Manager to negotiate and subsequently approve Amendment No. 5 to the Agreement with Air Products and Chemicals, Inc., for Private Operation and Maintenance of Oxygen Generation System at Plant No. 2, Purchase Order #43063-OB to include the following: A. Extend the agreement with Air Products and Chemicals, Inc. for an additional three (3) month period beginning February 2, 2012, through April 30t", 2012, at the current monthly rate of $27,411.76, and B. Authorization for Air Products to refurbish the liquid oxygen storage and delivery system, for a total amount not to exceed $1,300,000; and C. Approve a contingency of $260,000 (20%) for the liquid oxygen refurbishment. 12. Recommend to the Board of Directors to: Adopt Resolution No. OCSD 11-XX, Adopting a Policy Regarding the Transfer of Local Sewers. INFORMATIONAL ITEMS: 13. Revising the Delegation of Authority DEPARTMENT HEAD REPORTS: ( Outfall Land Section and OOBS Piping Rehabilitation (Herberg) 07/06/11 Operations Committee Agenda Page 3 of 4 OTHER BUSINESS AND COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY: ADJOURNMENT: The next Operations Committee meeting is scheduled for Wednesday, September 7, 2011, at 5:00 p.m. Accommodations for the Disabled: Meeting Rooms are wheelchair accessible. If you require any special disability related accommodations, please contact the Orange County Sanitation District Clerk of the Board's office at(714)593- 7130 at least 72 hours prior to the scheduled meeting. Requests must specify the nature of the disability and the type of accommodation requested. Agenda Posting: In accordance with the requirements of California Government Code Section 54954.2,this agenda has been posted outside the main gate of the Sanitation District's Administration Building located at 10844 Ellis Avenue, Fountain Valley,California,not less than 72 hours prior to the meeting date and time above. All public records relating to each agenda item, including any public records distributed less than 72 hours prior to the meeting to all,or a majority of the Board of Directors, are available for public inspection in the office of the Clerk of the Board. NOTICE TO DIRECTORS: To place items on the agenda for the Committee Meeting, items must be submitted to the Clerk of the Board 14 days before the meeting. Maria E.Ayala Clerk of the Board (714)593-7130 ma ala ocsd.com 07/06/11 Operations Committee Agenda Page 4 of 4 OPERATIONS COMMITTEE Meeting Date To Bd. of Dir. 07/06/11 7/27/11 AGENDA REPORT Item Number Item Number 2 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Jim Herberg, Assistant General Manager Project Manager: Wendy Smith SUBJECT: Newhope-Placentia & Cypress Trunk Replacements, Project No. 2-65 GENERAL MANAGER'S RECOMMENDATION Approve a Reimbursement Agreement with the City of Fullerton for costs incurred for the modification of Orange County Sanitation District facilities within State College Boulevard, the Newhope-Placentia & Cypress Trunk Replacements, Project No. 2-65, in an amount not to exceed $5,050,000, in a form approved by General Counsel. SUMMARY The City of Fullerton (City), in conjunction with Orange County Transportation Authority (OCTA) is performing the State College Boulevard Grade Separation Project (Grade Separation Project) which consists of lowering the grade of State College Boulevard so it passes underneath the railroad tracks. Existing utilities and minor cross streets in the area will be impacted. Construction of the Grade Separation Project will require the abandonment, realignment, and upsizing to Orange County Sanitation District (OCSD) facilities within the project limits (Sewer Modification Project). Modifications to OCSD facilities within the project limits will necessitate the upsizing of an OCSD facility downstream of the project limits to Kimberley Avenue (Sewer Extension Project). See attached exhibit for project limits. The City will provide bidding services and administer the design contract for the Sewer Modification Project. Design and permit acquisition costs have been enveloped into the Grade Separation Project. OCSD's share of the estimated construction cost is $3,000,000. The City will also provide bidding services and administer the design contract for the Sewer Extension Project. Design and permit acquisition will cost OCSD $250,000. OCSD's construction cost for the Sewer Extension Project is $1,800,000. PRIOR COMMITTEE/BOARD ACTIONS N/A Page 1 of 2 ADDITIONAL INFORMATION The Grade Separation Project scope consists of lowering the grade of State College Boulevard below the BNSF Railroad. Subsequently all utilities located in State College and arterial streets will be realigned; the majority of which are proposed to be relocated in a non-exclusive easement on private property located east of the eastern most right of way boundary. OCSD facilities consist of a 10 to 12-inch sewer located along the west side of State College Boulevard and an 18-inch sewer located along the east side of State College Boulevard. The proposed design will intercept flows with a 30 to 36-inch sewer north of Santa Fe Avenue and reconnect to the existing 18-inch sewer approximately 725 feet south of Valencia Drive. These improvements will accommodate the projected increases in flow for this section of sewer from planned developments and growth and be designed to convey potential wet weather surcharges. The remaining portion of the existing 18-inch sewer from the reconnection point of the Grade Separation Project south to Kimberley Avenue will impact OCSD ability to maintain the facility; therefore, the City of Fullerton's contractor will extend the larger pipe size to Kimberley Avenue and reconnect it with an existing 33-inch pipe. OCSD will provide inspection services for all OCSD sewer facilities. Construction management and support services will be negotiated in a subsequent agreement prior to awarding the construction contracts. Project bidding will begin in April 2013 and the construction contract awarded in June 2013. Construction is scheduled to begin in September 2013 and finish in December of 2015. CEQA The City of Fullerton has filed all required CEQA documentation. BUDGET/DELEGATION OF AUTHORITY COMPLIANCE This request complies with authority levels of the Sanitation District's Delegation of Authority. The project budget is sufficient for the recommended action (FY 2010-11 & 2011-12: Section 8, Page 18). Project contingency funds will be used for this agreement. Date of Approval Contract Amount Contingency 07/27/11 $5,050,000 $300,000 (6%) ATTACHMENTS Exhibit A WS:sa:gc Page 2 of 2 FA' f 1 Q -41 ti ..ra.r ' I14 RIIt. rn „ c ;o m 3 `A a � . GRADE SEPARATION PROJECT W c/) Iz c/) m m Z CD cL m D m I CDCA a z n �, z -i • CD n I , !� •cn m CD 0 CD acn rn ' r '■+�- --•STATE COLLEGE BLVD.,---- f --- - � it SEWER EXTENSION _ . PROJECT SEWER MODIFICATION PROJECT 1 a 14jifa� 1I1iJ • t Yr j ' is ~ ' ,. #351.� �` ' .. . ..�, d��� fi 7• � �, ,�, .fy' - OPERATIONS COMMITTEE Meeting Date To Bd.of Dir. 07/06/11 07/27/11 AGENDA REPORT Item Number Item Number 3 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Jim Herberg, Assistant General Manager Project Manager: Martin Dix SUBJECT: REPLACEMENT OF THE ROCKY POINT PUMP STATION, CONTRACT NO. 5-50 GENERAL MANAGER'S RECOMMENDATION A. Approve a budget increase of $196,000 for Replacement of the Rocky Point Pump Station, Contract No. 5-50, for a total budget amount of $20,947,000; and B. Approve a contingency increase of $335,320 (4%) to the construction contract with Kiewit/Mass, a Joint Venture, for Replacement of the Rocky Point Pump Station, Contract No. 5-50, for a total contingency of $1,173,620 (14%). SUMMARY The purpose of this project is to replace the existing 70-year old Rocky Point Pump Station with a new pump station that meets national and state codes, utilizing the current Orange County Sanitation District (Sanitation District) Design Guidelines. The project will include a new pump station and appurtenances located on property acquired from the International Bay Clubs, Inc. by the Sanitation District. The highest risk portion of the work is constructing new gravity sewers and force mains in West Coast Highway, a roadway heavily congested with traffic and underground utilities. Although the majority of the sewer work is complete, including crossing the highway with a 12-inch gravity sewer, several associated changes from the original design were performed under force account. Since a contingency increase of 10% was approved in February 2011, site conditions have created the potential to exceed the authorized construction contingency. To cover any further unexpected field conditions or interferences, staff has determined that the contingency budget of 10% is inadequate and requests an additional contingency of $335,320 (4%), for a total project contingency of $1,173,620 (14%). PRIOR COMMITTEE/BOARD ACTIONS February 2011 — Approved a contingency increase of $335,320 (4%) to the construction contract with Kiewit/Mass, a Joint Venture, for Replacement of the Rocky Point Pump Station, Contract No. 5-50, for a total contingency of $838,300 (10%). Page 1 of 3 August 2009 — Awarded a construction contract to Kiewit/Mass, a Joint Venture for Replacement of the Rocky Point Pump Station, Contract No. 5-50, for a total amount not to exceed $8,383,000; and, approve a contingency of$502,980 (6%). ADDITIONAL INFORMATION The sewer work in West Coast Highway has undergone numerous design changes as a result of design omissions and undisclosed utilities. The added costs associated with the sewer work and traffic control changes so far are estimated to be $463,000, and may increase if additional unforeseen conditions are encountered. As the summer peak driving season approaches, the Contractor must still perform sewer tie-ins, sewer abandonments, and adjust the traffic control in stages to lessen the impact of highway work to motorists, bicyclists, and the neighboring businesses. Also, the abandonment of the existing pump station must be done in stages to minimize the risk of installation of an 8-inch city sewer below an OCSD force main. The cast iron force main is 60 years old and must be kept in service until the new station is operational. If this force main were to fail during the installation of the city sewer, thousands of gallons of sewage could spill into the Newport Bay. Resequencing this work until the new station is operational adds cost and time to the project, but limits the potential for a sewage spill should the unexpected occur. During the shoring of the pump station, the Contractor claims to have encountered soils four times more dense than defined in Contract Documents, resulting in more time and cost than originally planned. The Contractor submitted a total cost claim of$321,992 for the additional shoring effort as well as an additional time impact. Sanitation District staff finds merit in the Contractor's claim, but has yet to settle on time and cost impacts. The cost of this differing site conditions claim, together with the sewer and traffic control costs identified above, amount to $785,000. Fortunately, pump station changes, namely electrical, mechanical, instrumentation and controls, and architecture have been relatively small, but may increase and consume contingency during commissioning, adding more uncertainty to budgetary constraints. Additional staff costs are anticipated if construction takes longer than expected. A budget increase of $196,000 is being requested to cover the additional change order and staff costs. While this additional funding is being requested, it should also be noted that this project budget was reduced by over $10 million at the start of construction in the 2010-11 budget due to a favorable bid environment. CEQA The Final Environmental Impact Report (EIR) for the Replacement of Rocky Point Pump Station, Contract No. 5-50, was certified by the Sanitation District's Board of Directors on August 25, 2004. The Notice of Determination was filed with the State Clearinghouse on August 27, 2004. Page 2 of 3 BUDGET/DELEGATION OF AUTHORITY COMPLIANCE This request for increase in the project contingency complies with authority levels of the Sanitation District's Delegation of Authority. This item has been budgeted (Line Item 05-50: Section 8, Page 24), but the budget is insufficient for the recommended action. These funds will be offset by reductions within the CIP Budget. Date of Approval Contract Amount Contingency 08/26/09 $8,383,000 $502,980 (6%) 02/23/11 $335,320 (4%) 07/27/11 $335,320 (4%) Total Contingency $1,173,620 (14%) JH:MD:el:gc Page 3 of 3 OPERATIONS COMMITTEE Meeting Date To Bd. of Dir. 07/06/11 07/27/11 AGENDA REPORT Item Number Item Number 4 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Jim Herberg, Assistant General Manager Project Manager: Doug Kanis, Senior Engineer SUBJECT: AWARD OF ON-CALL CONTRACTOR SUPPORT SERVICES SPECIFICATION NO. S-2011-483BD GENERAL MANAGER'S RECOMMENDATION A. Approve Purchase Agreement with Jamison Engineering for On-Call Contractor Support Services, Specification No. S-2011-48313D, for the period July 1 , 2011 through June 30, 2012 for a total annual amount not to exceed $875,272.00, with four one-year renewable options; and B. Approve a contingency of $87,527.20 (10%), annually, if needed. SUMMARY Management of corrosion is critical to maintain the Orange County Sanitation District's (Sanitation District) facilities. Part of the corrosion management plan is to inspect the various facilities and make repairs as needed. When a significant corrosion problem is identified, as within a large sewer pipe, the problem should be abated as soon as possible. A contractor is needed in most cases to make the needed repairs. Proposals for On-Call Contractor Support Services were received and evaluated from three interested contractors. Staff recommends awarding a purchase agreement to Jamison Engineering, who was deemed top-ranked among the proposers. PRIOR COMMITTEE/BOARD ACTIONS April 2010 - Approved Change Order No. 1 to Contract Purchase Order No. 103530-OB with Jamison Engineering Contractors, Inc. for On-Call Contractor Support Services for the period July 1 , 2009 through June 30, 2010, from a total annual amount not to exceed $229,129.70, to a total annual amount not to exceed $350,000. April 2010 - Approved Change Order No. 2 to Contract Purchase Order No. 103530-OB with Jamison Engineering Contractors, Inc. for On-Call Contractor Support Services for the period July 1 , 2010 through June 30, 2011, from a total annual amount not to exceed $229,129.70, to a total annual amount not to exceed $500,000. DW-102 Board AR, Rev 10/04/10 Page 1 of 4 April 2010 - Approved a contingency for the period July 1, 2010 through June 30, 2011, for $50,000 (10%), if needed. April 2009 - Approved authorization to issue a Purchase Agreement with Jamison Engineering Contractors, Inc. for On-Call Contractor Support Services, Specification CS-2009-40313D, for the period July 1, 2009 through June 30, 2010 for a total annual amount not to exceed $229,129.70, with four one-year renewable options. April 2009 - Approved contingency of $22,912.97 (10%), annually, if needed. ADDITIONAL INFORMATION In 2002, Sanitation District staff determined that a program to improve prediction, control, and prevention of corrosion would improve the Sanitation District's efficiency and effectiveness in asset management. As a result, staff recommended and the Board approved SP-68-1, Corrosion Management. The objective of Corrosion Management is to implement and maintain a comprehensive program to extend the useful life of the Sanitation District's assets. The program includes performing assessments for programmatic needs, identifying corrosion risk, condition assessment, developing alternative evaluations and maintenance strategies, and developing support documents to implement the preferred alternatives for repair, rehabilitation, or replacement. This data is utilized by the Asset Management Division to optimize life extension and life cycle cost for the Sanitation District's assets while maintaining an acceptable level of service. Gathering condition assessment information on our infrastructure is necessary to effectively manage and safely maintain the Sanitation District assets. Remotely operated Closed Circuit TV (CCTV) is used on our sanitary sewers, plant piping, and assets to quickly gather information. Often personal entry is required to gain added data discovered during the CCTV work. This is typically performed on medium and large diameter pipelines and facilities where physical entry is possible. When the data being gathered indicates damage to the concrete or other materials, repairs are then needed to extend short-term life. Repair work is performed and inspected to the Sanitation District's Engineering standards. Performing the work at this time is cost effective. When the extent of the repairs is significant, subconsultants are then needed to perform additional assessments and assist with the preparation of assessment reports and comprehensive scopes of work for repair projects. The completed project documents are then forwarded to the appropriate department for execution. Preparing assessment reports and scopes of work during the assessment work, as opposed to hiring a separate subconsultant to mobilize, perform confined space entry, collect data, and develop scopes of work, will allow for a cost savings to the Sanitation District. This is both time and business efficient. DW-102 Board AR, Rev 10/04/10 Page 2 of 4 A Request for Proposal (RFP) was made available to firms who were registered on the OCSD "On-Line" Bidding System including a scope of work for on-call Contractor support services for condition assessments of assets including: pipelines, sewers, manholes, wet wells, tunnels, and other structures. Three proposals were received, however one proposal did not include all of the required elements and was deemed non-responsive. An evaluation committee consisting of five staff members was established and the staff members evaluated each proposal and scored them using the predefined evaluation criteria and weighting for the following: ( Qualifications of Firm (35%) ( Proposed Staffing (30%) ( Cost & Price (35%) Staff reviewed and ranked the proposals and Jamison Engineering was the top-ranked proposer. TABLE 1 PROPOSAL EVALUATION Consultant Jamison Downstream Evaluator Engineering Services Reviewer A 555 490 Reviewer B 390 325 Reviewer C 520 520 Reviewer D 520 390 Reviewer E 420 355 Overall Score 2,405 2,080 Cost Score 1,490 1,750 Total Score 3,895 3,830 Ranking 1 2 Proposal Fee $875,272 $746,342 Staff recommends approval of a Purchase Agreement with Jamison Engineering for a total amount not to exceed $875,272 per year for the first contract period (July 2011 — June 2012) with an annual contingency of $87,527.20 (10%) if needed to account for inflation and unforeseen field conditions that may need immediate response while performing the assessments. CEQA N/A DW-102 Board AR, Rev 10/04/10 Page 3 of 4 BUDGET/DELEGATION OF AUTHORITY COMPLIANCE This Purchase Agreement complies with authority levels of the Sanitation District's Delegation of Authority. The selection process was conducted in accordance with the Sanitation District's adopted policies and procedures. This assessment work has been budgeted under SP-68-1, Corrosion Management: Section 8, Page 74 and the repair tasks have been budgeted under Collection Facilities Operations and Maintenance, Repairs and Maintenance: Section 6, Page 84, and Mechanical and Reliability Maintenance, Repairs and Maintenance: Section 6, Page 104. Date of Approval Contract Amount Contingency 07/27/11 $875,272.00 $87,527.20 (10%) JB:DK:sa:gc DW-102 Board AR, Rev 10/04/10 Page 4 of 4 OPERATIONS COMMITTEE Meeting Date To Bd. of Dir. 07/06/11 AGENDA REPORT Item Number Item Number 5 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Jim Herberg, Assistant General Manager Project Manager: Victoria Pilko SUBJECT: Permanent Upgrades to Plant Security Barriers, Project No. J-108 GENERAL MANAGER'S RECOMMENDATION Approve a contingency increase of $14,742 (14%) to the Professional Consulting Services Agreement with RBF Corporation for Permanent Upgrades to Plant Security Barriers, Project No. J-108, for a total contingency of $25,272 (24%). SUMMARY This project provides a new 1,300-foot long, 8-foot tall masonry block wall along the north perimeter of Reclamation Plant No. 1 , and other appurtenances including improved signage, landscaping, lighting, and electronic security systems. Phase 1 of this project was completed on November 15, 2010. Phase 2, which includes site landscaping, construction of the monuments, signage installation, and electronic security improvements, was started on May 2, 2011 . Additional contingency funds are needed to provide additional design services to incorporate design changes to utility crossings, landscape changes due to unknown utilities, and additional services to reflect actual site conditions on the project record drawings. PRIOR COMMITTEE/BOARD ACTIONS December, 2009 - Awarded a Professional Consultant Services Agreement to RBF Consulting to provide construction support services for Permanent Upgrades to Plant Security Barriers, Project No. J-108, for an amount not to exceed $105,301; and approved contingency of $10,530 (10%). ADDITIONAL INFORMATION The scope of services during construction includes the review of submittals, responses to requests for information, review of change orders, and assistance with commissioning and close-out activities. The contingency increase is due to numerous unknown utilities and the need to change the design to accommodate nine utility crossings and changes in landscape design along Ellis Avenue, as well as additional efforts to reflect those changes in the record drawings which were completed for the Phase 1 portion of this project. DW-102 Board AR, Rev 10/04/10 Page 1 of 2 CEQA This project was determined to be categorically exempt in accordance with Section 15301 (b). A Notice of Exemption was filed on August 24, 2007. BUDGET/DELEGATION OF AUTHORITY COMPLIANCE This request complies with authority levels of the Sanitation District's Delegation of Authority. This item requests contingency increase to complete the project. This item has been budgeted (FY 2010-11 Section 8, Page 99) and the budget is sufficient for the recommended action. Date of Approval Contract Amount Continaencv 12/16/09 $105,301 $10,530 (10%) 07/06/11 $14,742 (14%) $25,272 (24%) JH:DF:VP:el:gc DW-102 Board AR, Rev 10/04/10 Page 2 of 2 OPERATIONS COMMITTEE Meeting Date To Bd. of Dir. 07/06/11 07/27/11 AGENDA REPORT Item Number Item Number 6 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Ed Torres, Director of Operations and Maintenance SUBJECT: CONTRACT FOR ANIONIC POLYMER, SPECIFICATION NO. C-2011-476 B D GENERAL MANAGER'S RECOMMENDATION A. Award a contract to Polydyne, Inc. for the Purchase of Anionic Polymer, Specification No. C-2011-476BD, for the period September 1, 2011 through August 31, 2012, for a unit price of $2.75 per active pound delivered, plus applicable sales tax for a total annual amount not to exceed $413,000 with four one-year renewal options; and B. Approve an annual unit price contingency of $41,300 (10%). SUMMARY Two chemicals, anionic polymer and ferric chloride are added to the primary influent at both plants to enhance the removal of organics and improve the settling of suspended solids during primary treatment. This is referred to as the chemically enhanced primary treatment (CEPT) process. It is estimated that 121,000 active pounds of anionic polymer will be required during this contract period. PRIOR COMMITTEE/BOARD ACTIONS May 2008: The Board of Directors authorized a price increase to P.O. 102634-OB, Specification No. C-2006-273, of $0.15/active lb. for a total price of $3.00/active lb., due to the increase in the cost of the raw materials used to manufacture anionic polymer coupled with higher fuel prices. ADDITIONAL INFORMATION This procurement was competitively bid with three bidders participating in on-site performance testing in accordance with the OCSD's adopted policies and procedures. Two bids were received with the lowest responsive and responsible bidder being Polydyne, Inc. Form No.DW-102-2 Revised 06/07/11 Page 1 CEQA N/A BUDGET/DELEGATION OF AUTHORITY COMPLIANCE This request complies with authority levels of the Sanitation District's Delegation of Authority. This item has been budgeted in Division 830 and 840 Operating Budget Line Item 52011. Date of Approval Contract Amount Contingency 07/27/11 $413,000 10% Form No.DW-102-2 Revised 06/07/11 Page 2 OPERATIONS COMMITTEE Meeting Date To Bd. of Dir. 07/06/11 AGENDA REPORT Item Number Item Number 7 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Nick Arhontes, Director, Facilities Support Services Engineering Manager: Mark Esquer, Facilities Support Services SUBJECT: On-Call Architectural and Architectural Landscaping Consulting Services Specification No. FR-2011-479BD GENERAL MANAGER'S RECOMMENDATION A. Approve Professional Consultant Services Agreement with Lionakis to provide On-Call Architectural and Landscaping Consulting services, for Specification No. FR-2011- 479BD for the period of September 1 , 2011 through August 31 , 2012, with four one-year renewable options, for an annual amount not to exceed $100,000; and B. Approve an annual contingency of $20,000 (20%). SUMMARY The Service Agreement consists of providing On-Call Architectural and Architectural Landscaping Consulting Services. The work will generally include professional services such as preparing concept and design sketches, preparing drawings, developing specifications; among other associated services necessary for the repair, modification or replacement work in existing facilities. These types of minor projects or activities are not required to comply with the statutes for construction of public works. A Request for Proposal (RFP) was publicly advertised and also sent to firms registered with Orange County Sanitation District (OCSD). Proposals were received from ten (10) firms and the proposals were evaluated by a panel consisting of three (3) members overseen by the Purchasing Division's Senior Buyer in accordance with OCSD's policies and procedures. Staff recommends awarding a Professional Consulting Services Agreement to Lionakis for a total fee not to exceed $100,000. PRIOR COMMITTEE/BOARD ACTIONS None. ADDITIONAL INFORMATION Division 330 Facilities Engineering was established as a part of the Beyond 2012 re- organization. They are responsible for developing and implementing projects to support repair, modification, and equipment replacement in existing facilities. Page 1 of 4 The projects range from replacing pumps in the treatment plant to replacing old air conditioning units on the buildings, repairs to the collection facilities, structures and grounds. Many of the repair activities for the buildings and grounds require the services of Architects and Landscaping Design professionals to help develop plans and specifications as needed. This also assists in developing bid documents to outsource work. This will help staff expedite the completion of more projects. Task orders will be assigned to the contract by the Purchasing Manager throughout the contract duration, in accordance with the Delegation of Authority, Resolution No. 07-04. The proposed Service Agreement is for a one (1) year period, with authorizations to renew annually based on successful performance of work. Staff will use the Consulting Services on an as-needed basis and does not guarantee the Consultant a minimum amount of work annually. The maximum annual contract amount is limited to the approval amount requested. OCSD does not have a staff Architect or Landscape Architect. It is not currently cost effective to recommend adding staff for this type of support work. Existing staff does not have expertise in Architectural and/or Landscaping Design specialties. The use of these services will also help reduce time spent by staff on project development. Staff evaluation of Proposals: A Request for Proposal (RFP) was advertised publicly and also to firms who were registered on OCSD's On-Line Bidding System. Ten (10) proposals were received. A staff evaluation committee was established to evaluate each proposal using the predefined weighting and evaluation criteria as follows: ( Qualification of firm (40%) ( Proposed Staffing & Project Organization (20%) ( Work Plan (20%) ( Cost & Price (20%) One (1) of the ten (10) firms did not meet the minimum initial scoring criteria of 350 points. Lionakis received a top score of 2,341 points out of a possible 3,000 points as shown in the table on page 3. Lionakis was evaluated highly because they are well experienced in Architectural work. Their "Civic Team" has a long service record with cities as well as state and federal agencies; including the city of Fountain Valley, city of Huntington Beach, County of Sacramento, State of California Department of General Services, and the U.S. Postal Service, among many other public agencies. Lionakis understood the schedule requirements and are able to distinguish between long and short-range schedule requirements depending on project size and complexity. They showed expertise in budget management. Their designs result in lower than average change order rates of less that 1% for new construction and less than 3% for renovation projects. They were established in California in 1909. Page 2 of 4 Lionakis also provides a good systematic approach to quality control and quality assurance utilizing milestone reviews and checklists as well as peer reviews within their organization. Their proposed work plan contains many key phases that align well with OCSD's project approach. All proposals were accompanied by a sealed fee proposal estimate. The fee proposal estimates were not opened until the proposals were evaluated and a firm was selected in accordance with Resolution No. OCSD 07-04, Section 5.07. Based on the combination of fees, qualifications, project staffing, organization, and work-plan, staff recommends awarding the Contract to Lionakis. The fee proposal was based on a sample project in order to objectively evaluate the anticipated cost toward direct labor and best value. This approach is helpful in evaluating proposals for on-call services as tasks can vary in scope and complexity. The fee proposal was only used for comparison purposes and to obtain cost information from each proposer. As part of the fee proposal, the proposers were required to provide a cost proposal form with specified labor hours along with an hourly rate sheet. The lowest fee proposal for the sample project received the highest number of cost score points. The revised fee of $100,000 is based on the anticipated but not guaranteed amount of work in the first year. Payments for work completed are always based on the hourly rate sheet in effect. Consultant Lionakis GPA AECOM SLO Fleming Stern Dev. MIG Kennar Evaluator One d Reviewer A 700 700 700 550 700 550 600 700 550 Reviewer B 405 376 457 406 398 460 370 387 403 Reviewer C 680 580 560 600 400 460 400 420 460 Cost Score 556 484 398 536 581 528 600 436 484 Total 2,341 2,140 2,115 2,092 2,079 1,998 1,970 1,943 1,897 Score Ranking 1 2 3 4 5 6 7 8 9 Fee $43,128 $49,524 $60,193 $44,675 $41,241 $45,409 $39,941 $54,960 $49,466 Proposal Revised $100,000 Fee CEQA N/A BUDGET/DELEGATION OF AUTHORITY COMPLIANCE This request complies with authority levels of OCSD's Delegation of Authority. This Service Agreement has been budgeted in the Operating Funds, Division 330, Line Item 147. Funding is also budgeted in Small Capital Equipment Replacement Project, SP-34, in Section 8; page 113, of the 2010-11 , 2011-12 budget. Page 3 of 4 Date of Approval Contract Amount Contingency 7/06/11 $100,000 $20,000 (20%) NJA:MAE:dms Page 4 of 4 OPERATIONS COMMITTEE Meeting Date To Bd.of Dir. 07/06/11 AGENDA REPORT Item Number Item Number 8 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Jim Herberg, Assistant General Manager Project Manager: Dean Fisher SUBJECT: P1 VARIOUS LOCATIONS HVAC UPGRADE / REPLACEMENT, PROJECT NO. FE07-28 GENERAL MANAGER'S RECOMMENDATION A. Approve Plans and Specifications for the P1 Various Locations HVAC Upgrade/ Replacement, Project No. FE07-28, on file at the office of the Clerk of the Board; B. Approve Addendum Nos. 1 and 2 to the plans and specifications; C. Receive and file bid tabulation and recommendation; D. Reject the low bid from Retrofit Technology, Inc., as "Non-Responsive" for omitting a price for Bid Item No. 1. E. Award a construction contract to Bon Air, Inc., for P1 Various Locations HVAC Upgrade/Replacement, Project No. FE07-28, for an amount not to exceed $105,000; and F. Approve a contingency of $21 ,000 (20%). SUMMARY This project will replace the existing Cooling Tower at the Chiller Building located at the Orange County Sanitation District (Sanitation District) Plant No. 1. Work elements include demolition of the existing cooling tower, and the installation of a new cooling tower with the same capacity as the existing tower. Work activities also include the installation of a new hydraulic level control device, motor starters, power and control wiring, and a water filter. ProjectLine Technical Services, Inc. completed the plans and specifications for P1 Various Locations HVAC Upgrade/Replacement, Project No. FE07-28, in February 2011 . Five (5) sealed bids were received on March 29, 2011 . After evaluation of the bids by the Sanitation District Evaluation Team, the lowest bid, submitted by Retrofit Technology, Inc., was deemed to be "Non-Responsive" for its failure to separately price and accurately reflect cost associated with each line item in its bid. The Sanitation District Evaluation Team recommends awarding the contract to the second lowest, responsive and responsible bidder, Bon Air, Inc., for $105,000. The Page 1 of 2 period for written protest began May 21, 2011, and ended on May 27, 2011. One written protest was received by the Sanitation District on June 1, 2011. Retrofit Technology, Inc. protested the Sanitation District's determination that Retrofit Technology, Inc. was deemed a Non-Responsive Bidder. The Sanitation District has denied the protest. Retrofit Technology, Inc. has indicated that it will not pursue this issue further. Summary information on the bid opening for P1 Various Locations HVAC Upgrade/Replacement, Project No. FE07-28, is as follows: Project Budget $341,750 Construction Contract Budget (FE07-28) $180,000 Engineer's Construction Estimate $125,000 Lowest, Responsive, Responsible Bid $105,000 High Bid $133,500 PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION The contractor selection was conducted in accordance with the Sanitation District's adopted policies and procedures. Bidder Amount of Bid Retrofit Technology, Inc. $ 94,979.00 Bon Air, Inc. $105,000.00 Fix My AC, Inc. $118,796.12 Trinity Process Solutions, Inc. $128,193.03 Apex Construction, Inc. $133,500.00 CEQA A Notice of Exemption was filed for this project on May 5, 2008. BUDGET/DELEGATION OF AUTHORITY COMPLIANCE This request complies with authority levels of the Sanitation District's Delegation of Authority. This item has been budgeted (2010-2011 Budget Update, Section 8, Page 97, FE-P1). Date of Approval Contract Amount Contingency 07/06/11 $105,000 $21,000 (20%) JH:DD:DF:el:aln:gc Page 2 of 2 OPERATIONS COMMITTEE Meeting Date To Bd. of Dir. 07/06/11 07/27/11 AGENDA REPORT Item Number Item Number 9 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Jim Herberg, Assistant General Manager CIP Project Manager: Wendy Sevenandt SUBJECT: TITLE 24 ACCESS COMPLIANCE AND BUILDING REHABILITATION PROJECT, PROJECT NO. P1-115 GENERAL MANAGER'S RECOMMENDATION A. Approve a Professional Design Services Agreement with The Austin Company to provide professional design services for Title 24 Access Compliance and Building Rehabilitation Project, Project No. P1-115, for an amount not to exceed $2,200,000; and, B. Approve a contingency of $220,000 (10%). SUMMARY The Professional Design Services Agreement includes preliminary design, final design, and bid support services for the design of Title 24 accessibility improvements and rehabilitation improvements to the support buildings and trailers at Plant No. 1 and to relocate the Collections Facilities Maintenance staff from Plant No. 2 to Plant No. 1. A Request for Proposal was sent to three firms and three proposals were received. Based on the overall qualifications and expertise, staff recommends awarding a Professional Design Services Agreement to The Austin Company for a total fee not to exceed $2,200,000. PRIOR COMMITTEE/BOARD ACTIONS February 2011 — Approved Amendment No. 1 to the Agreement with City of Fountain Valley for Permitting of Interim Improvements of the Orange County Sanitation District, providing for updated completion schedule and project list, in a form approved by General Counsel. April 2010 - Approved an Agreement with the City of Fountain Valley for Permitting Improvements of the Orange County Sanitation District within the City of Fountain Valley, in a form approved by General Counsel. Page 1 of 3 ADDITIONAL INFORMATION The purpose of this project is to provide Title 24 accessibility improvements to the support facilities stipulated in an agreement with the City of Fountain Valley. During the development of the scope of work, staff developed a list of rehabilitation items that were necessary to maintain the support facilities. These include such items as air conditioning replacement, installation of cell phone repeaters, roof replacements, roof access and fall protection, lighting improvements, painting, and other miscellaneous upgrades to allow compliance with current building codes. This project also performs the required tasks to relocate the Collections staff from Plant No. 2 to Plant No. 1 . Acknowledging the importance of using an architectural consultant for this Project, the Orange County Sanitation District (Sanitation District) issued a Request for Qualifications (RFQ) for Professional Architectural Services. The RFQ was distributed electronically to one hundred and eleven (111) firms on the prospective proposer list maintained by the Sanitation District. Seven (7) Statement of Qualifications (SOQ) were received on September 24, 2010. Prior to receipt of SOQs, a 4-member Evaluation Team was formed. The evaluation criteria specified in the RFQ included four (4) Parts as follows: ( Firm Experience and Staffing ( Title 24 Experience in the past 5 years ( Other Experience of Interest ( Quality and Arrangement of the SOQ The top three ranked firms were invited to participate in the Request for Proposal (RFP) process. Staff Evaluation of Proposals: On April 14, 2011, the Sanitation District issued an RFP to the three top-ranked firms from the SOQ process. On May 16, 2011, three proposals were received. A panel consisting of five Sanitation District staff reviewed and ranked each of the proposals in accordance with Resolution No. OCSD 07-04, Section 5.07. Proposal evaluation criteria included six parts as follows: ( Understanding of the scope of work ( Technical approach ( Management approach ( Staff qualifications ( Related project experience, and ( Project schedule Following the technical proposal evaluations, interviews were conducted on May 23, 2011 with the three proposers. The proposal review panel ranked The Austin Company as the most qualified firm. Page 2 of 3 All proposals were accompanied by a sealed fee proposal. The fee proposals were not opened until the proposal evaluation process was complete, interviews conducted and the results compiled. Staff met with the top ranked firm and reviewed the Fee Proposal. A negotiated amount was achieved. The negotiations consisted of: ( Scope review and suitability of the proposed hours to execute the work ( Review of critical components in each subsection of the Project and hours ( Correction for profit and overhead calculations ( Subconsultant participation and associated scopes of work ( Direct costs ( Acknowledgement of the Sanitation District's budget development process Staff recommends awarding the architectural design services contract to The Austin Company for a not-to-exceed amount of $2,200,000. PROPOSAL EVALUATION TABLE PROPOSERS & SCORE EVALUATORS AECOM AUSTIN MVA Reviewer A 720 820 870 Reviewer B 620 840 800 Reviewer C 530 830 650 Reviewer D 580 760 540 Reviewer E 850 940 1040 Overall Score 3300 4190 3900 Ranking 3 1 2 Proposal Fee $1,544,967 $2,507,758 $2,460,535 Negotiated Fee NA $2,200,000 NA CEQA A Notice of Exemption was filed for this project on January 5, 2011 . BUDGET/DELEGATION OF AUTHORITY COMPLIANCE This request complies with authority levels of the Sanitation District's Delegation of Authority. This item has been budgeted under Project No. P1-115 Title 24 Access Compliance and Building Rehabilitation Project and the budget is sufficient for the recommended action (Line item: Section 8, Page 103). Date of Approval Contract Amount Contingency 07/27/2011 $2,200,000 $220,000 (10%) JDH:WS:el:gc Page 3 of 3 OPERATIONS COMMITTEE Meeting Date To Bd. of Dir. 07/06/11 07/27/11 AGENDA REPORT Item Number Item Number 10 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Jim Herberg, Assistant General Manager CIP Project Manager: Dean Fisher SUBJECT: SLUDGE DEWATERING AND ODOR CONTROL AT PLANT NO. 2, PROJECT NO. P2-92 GENERAL MANAGER'S RECOMMENDATION A. Approve a Professional Design Services Agreement with Brown and Caldwell for Sludge Dewatering and Odor Control at Plant No.2, Job P2-92, providing for engineering design services for the amount not to exceed $5,682,963; and, B. Approve a contingency of $568,296 (10%). SUMMARY The Professional Design Services Agreement includes a Preliminary Design Report (PDR), Final Design and construction documents (plans and specifications) and a Supplemental Environmental Impact Report (SEIR). A Request for Proposal was sent to five firms and three proposals were received. Based on the overall qualifications and expertise, staff recommends awarding a Professional Design Services Agreement to Brown and Caldwell for a total fee not to exceed $5,682,963. PRIOR COMMITTEE/BOARD ACTIONS None. ADDITIONAL INFORMATION The Orange County Sanitation District (Sanitation District) operates a sludge dewatering system at Plant No. 2, which is aging and in need of replacement. Project No. P2-92 will replace the existing belt press sludge dewatering system with a new centrifuge sludge dewatering system in a new building. The centrifuge dewatering system will produce a drier sludge cake to reduce sludge hauling requirements and will provide improved ergonomic working conditions in the new building. This project will result in an annual savings of $1.8 million to the biosolids handling and disposal costs. The project will also provide an updated odor control system for the new centrifuge dewatering building as well as the existing solids storage and truck loading facility and satisfy a Sanitation District strategic initiative in completing this odor control work. Page 1 of 3 Staff Evaluation of Proposals: A Request for Proposal was sent to five engineering firms and three proposals were received by the Sanitation District. A panel consisting of five members of the Sanitation District's staff reviewed and ranked each of the proposals in accordance with Resolution No. OCSD 07-04, Section 5.07. The proposals were evaluated in the following six categories: (1) understanding of the scope of work, (2) technical approach, (3) management approach, (4) staff qualifications, (5) related project experience, and (6) schedule. Staff also conducted interviews with each of the three firms to meet the key team members and further explore the firm's proposal. Brown and Caldwell was the top ranked team, as shown in Table 1. All proposals were accompanied by a sealed fee proposal estimate. The fee proposal estimates were not opened until the proposals were evaluated and a firm was selected, in accordance with Resolution No. OCSD 07-04, Section 5.07. Staff recommends awarding the design contract to Brown and Caldwell. TABLE 1 PROPOSAL EVALUATION Consultant Brown & Black & Malcolm Caldwell Veatch Pirnie Evaluator Reviewer A 90% 83% 68% Reviewer B 64% 59% 56% Reviewer C 84% 80% 66% Reviewer D 94% 85% 71% Reviewer E 90% 77% 64% Overall Score 84% 77% 64% Ranking 1 2 3 Proposal Fee $6,975,635 $5,299,311 $5,198,657 Negotiated $5,682,963 Proposed Fee The Sanitation District staff met with Brown and Caldwell to clarify the requirements of the scope of work and negotiate the final fee. During these meetings, the project scope of work and the design process were discussed and clarified. As a result of these meetings, the proposal fee was decreased by $1,292,670 due to scheduling clarifications and an improved understanding of the Sanitation District's project management procedures. There were no revisions to the RFP requirements. The proposed fee is $ 383,652 greater than the second ranked proposer. However, this additional fee provides an added value of 3,315 man hours and 112 drawings, which will contribute to a high quality work product. Page 2 of 3 CEQA A Supplemental Environmental Impact Report will be prepared as part of this project because a new building was not anticipated in the Sanitation District's Program EIR. BUDGET/DELEGATION OF AUTHORITY COMPLIANCE This request complies with authority levels of the Sanitation District's Delegation of Authority. This item has been budgeted and the budget is sufficient for the recommended action. (Line item: Section 8, Page 57). Date of Approval Contract Amount Contingency 07/27/11 $5,682,963 $568,296 (10%) JH:DF:el:gc Page 3 of 3 OPERATIONS COMMITTEE Meeting Date To Bd. of Dir. 07/06/11 07/27/11 AGENDA REPORT Item Number Item Number 11 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Ed Torres, Director of Operations and Maintenance SUBJECT: PLANT NO. 2 OXYGEN GENERATION FACILITIES REFURBISHMENT OF THE LIQUID OXYGEN STORAGE AND DELIVERY SYSTEM GENERAL MANAGER'S RECOMMENDATION Authorize the General Manager to negotiate and subsequently approve Amendment No. 5 to the Agreement with Air Products and Chemicals, Inc., for Private Operation and Maintenance of Oxygen Generation System at Plant No. 2, Purchase Order#43063-OB to include the following: A. Extend the agreement with Air Products and Chemicals, Inc. for an additional three (3) month period beginning February 2, 2012, through April 30t", 2012, at the current monthly rate of $27,411.76, and B. Authorization for Air Products to refurbish the liquid oxygen storage and delivery system, for a total amount not to exceed $1 ,300,000; and C. Approve a contingency of $260,000 (20%) for the liquid oxygen refurbishment. SUMMARY Staff recently completed a Plan of Operation for Secondary Treatment (POST) with the purpose to evaluate the most compliant, reliable and cost-effective strategy for operation of the five (5) secondary treatment processes that will be available to Operations & Maintenance (O&M) by the fall of 2011 . One of the key recommendations from the POST was to discontinue use of the current technology (cryogenic) used to produce oxygen for Plant No. 2's secondary treatment process and replace it short-term (3 to 7 years) with delivery of liquid oxygen and long- term with a more cost effective technology. Based upon a preliminary cost estimate there is an opportunity to save up to $2,300/day (approximately $840,000 annually) by switching over to the use of liquid oxygen in lieu of the current cryogenic technology. Page 1 of 3 OCSD currently contracts with Air Products & Chemicals, Inc. (APCI) to operate and maintain the cryogenic facility and the liquid oxygen storage and delivery system which expires February 2012. Staff recommends that we hire APCI to upgrade/modify the liquid oxygen storage and delivery system to support continuous operation for the short- term (3 to 7 years) or until a more cost effective technology is installed. The liquid oxygen system is currently only used when the cryogenic equipment is down for maintenance or during an emergency. For normal operations, this system is not adequate for cost-effectively and safely servicing continuous operation. The extension of the current APCI agreement is necessary to allow for the installation, start-up, and staff training related to the refurbished liquid oxygen storage and delivery system. Air Products, Inc. (APCI) is uniquely qualified to perform this work as they originally designed and built the entire oxygen supply system, including the cryogenic oxygen generation plant and the liquid oxygen storage and delivery system, and has been responsible for operating and maintaining the entire system since 1989. The APCI fee proposal is consistent with the terms and conditions set forth in the current contract with APCI. This fee proposal was reviewed for reasonableness and completeness by OCSD Staff and OCSD's consultant DWG Associates who is an expert in oxygen production and has experience in designing, building and operating oxygen plants. PRIOR COMMITTEE/BOARD ACTIONS January 2010 — Amend the May 20, 2009 Board Minutes, Item No. 10, approving Amendment No. 4 to the Agreement for Private Operation and Maintenance of Oxygen Generation System at Plant No. 2 with Air Products and Chemicals, Inc., (P.O. 43063- OB), extending the contract for a two-year period beginning February 2, 2010 to February 1, 2012, for an annual amount not to exceed $328,941.12. May 2009 — Approve Amendment No. 4 to extend the contract with Air Products for a two-year period beginning February 2, 2010. June 2004 — Approve Amendment No. 3 to extend the contract with Air Products for a five-year period beginning February 2, 2005 and authorize a sole source rehabilitation of the spare oxygen generation unit by Air Products for an amount not to exceed $401 ,000. June 1997 — Approve Amendment No. 2 to the Agreement for Private Operation and Maintenance of Oxygen Generation System at Plant No. 2. This amendment reduced the operating expenses by $215,000 annually. August 1989 — Board Resolution No. 89-108. This Board action approved the original contract. Page 2 of 3 ADDITIONAL INFORMATION The design of the refurbished liquid oxygen storage and delivery system will meet current OCSD Engineering Standards and all applicable regulatory requirements including OSHA. Implementation of the long-term solution for providing oxygen to the Plant No. 2 secondary treatment process will occur under a separate capital project managed by our engineering department. CEQA N/A BUDGET/DELEGATION OF AUTHORITY COMPLIANCE This request complies with authority levels of the OCSD's Delegation of Authority. The funding for this project will be from Project SP-34 Small Capital Equipment Replacement Project, 2010-11 & 2011-12 Budget Section 8 — Page 133. Date of Approval Contract Amount Contingency 07/27/11 $1,300,000 $260,000 (20%) Page 3 of 3 BOARD OF DIRECTORS Meeting Date To Bd. of Dir. 07/06/11 07/27/11 AGENDA REPORT Item Number Item Number 12 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Nick Arhontes, Director of Facilities Support Services Ann Crafton, Principal Analyst for Facilities Support Services SUBJECT: POLICY FOR LOCAL SEWERS TRANSFERS GENERAL MANAGER'S RECOMMENDATION Adopt Resolution No. OCSD 11-XX. A Resolution of the Board of Directors of Orange County Sanitation District Adopting a Policy Regarding the Transfer of Local Sewers. SUMMARY In accordance with the Five Year Strategic Plan, staff has been working with several cities and agencies to transfer local sewer facilities that do not serve a true regional purpose to the appropriate local jurisdictions. To answer their staff's questions and to support additional discussions with local sewer jurisdictions, staff with the support of the General Counsel, has drafted a policy resolution for consideration by the Board of Directors. Staff believes that adoption of the policy resolution will help expedite processes. PRIOR COMMITTEE/BOARD ACTIONS November 2010: Five-Year Strategic Plan, Business Principles Goals #2, page 18. Local Sewer Services-"Transfer back to cities and sanitary districts local sewer assets that are not serving a true regional purpose". ADDITIONAL INFORMATION Approval of the resolution will provide criteria to support what constitutes a local or regional sewer facility. This resolution will assist staff in executing local sewer transfers by providing standardized guidelines to be used with the local jurisdictions. Once the local sewers are transferred to local agencies, OCSD will be able to focus its resources on the construction, ownership, operations, and maintenance of facilities which have a regional purpose. ATTACHMENT Resolution No. OCSD 11-XX Page 1 of 1 RESOLUTION NO. OCSD 11-XX A RESOLUTION OF THE BOARD OF DIRECTORS OF ORANGE COUNTY SANITATION DISTRICT ADOPTING A POLICY REGARDING THE TRANSFER OF LOCAL SEWERS WHEREAS, the core function of the Orange County Sanitation District ("Sanitation District") is to treat and dispose of wastewater generated within its jurisdiction, a 463-square- mile area of central and northwest Orange County. The Sanitation District operates a regional network of trunk sewers that delivers the area's wastewater to the Sanitation District's treatment and disposal facilities. A "trunk sewer" is a sewer that receives wastewater from many tributary sewers over a large area. Cities, sanitary districts, and one water district within the Sanitation District's jurisdiction operate local networks of tributary sewers that convey wastewater from individual properties to the Sanitation District's regional collection system; and WHEREAS, over the years the Sanitation District and/or its predecessor agencies have, for a variety of site-specific reasons, acquired and operated certain local sewer facilities. Today, the Sanitation District owns and operates approximately 176 miles of local sewers, which represents about 3% of the local sewers within the Sanitation District's service area. The remaining ninety-seven percent (97%) of the local sewers within the Sanitation District are owned and operated by cities, sanitary districts, and one water district; and WHEREAS, in the interest of efficiency, the Sanitation District should focus its resources on the regional network of trunk sewers, and leave operation of local sewers to the cities, sanitary districts, and the water district. The Sanitation District should own and operate local sewers only in exceptional situations, such as when no qualified provider of local sewer service is available; and WHEREAS, one of the goals set forth in the Sanitation District's current Five Year Strategic Plan is to transfer to cities and sanitary districts all "local sewer assets that are not serving a true regional purpose" by Fiscal Year 2012-2013. NOW, THEREFORE, the Board of Directors of the Orange County Sanitation District does hereby resolve, determine, and order as follows: Section 1: Sanitation District staff shall work with cities and sanitary districts to transfer all local sewer facilities to the appropriate city or sanitary district. Section 2: For purposes of this Resolution, the term "local sewer facilities" generally includes, but is not necessarily limited to, the following: Sewers that connect directly to parcels and/or private sewer laterals; Tributary sewers that feed into the Sanitation District's regional trunk sewers; Any sewer for which a city or sanitary district charges a user fee to operate or maintain. 766336.2 For purposes of this Resolution, the term "local sewer facilities" generally does not include trunk sewers that collect and convey wastewater from two or more jurisdictions to one of the Sanitation District's two wastewater treatment plants. Section 3: In those exceptional cases where the Sanitation District deems it necessary to own and operate a local sewer, the Sanitation District should, where feasible, recover the costs of constructing, operating, and/or maintaining the local sewer through a user fee imposed on those users who benefit from the local sewer. PASSED AND ADOPTED at a regular meeting held , 2011. Board Chair Date ATTEST: Clerk of the Board 766336.2 OPERATIONS COMMITTEE Meeting Date To Bd. of Dir. 07/06/11 07/27/11 AGENDA REPORT Item Number Item Number 13 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Lorenzo Tyner, Director, Finance and Administrative Services SUBJECT: REVISING THE DELEGATION OF AUTHORITY RESOLUTION GENERAL MANAGER'S RECOMMENDATION Information Only SUMMARY As a result of the August 2010 reorganization and continual efforts toward an efficient and effective procurement process, updates to the current Purchasing Resolution and Delegation of Authority are now recommended. These updates are proposed to ensure that new contracting and procurement controls are established, outreach and contracting opportunities enhanced, and general "housekeeping" changes implemented. This resolution was last updated in February 2007. The major changes proposed are summarized in the attached spreadsheet entitled, "Summary of Proposed Changes to the Delegation of Authority." Most changes can be categorized as housekeeping or minor improvements, adding terms and definitions for better understanding, better clarifying authorities, and reformatting the document for ease of use. PRIOR COMMITTEE/BOARD ACTIONS Resolution No. 07-04: Establishing Policies and Procedures for the Award of Purchasing Orders and Contracts; Award of Public Works Project Contracts; Award of Professional Services Contracts; and Delegation of Authority to Implement said Policies and Procedures were approved by the Board of Directors on February 28, 2007. ADDITIONAL INFORMATION Although past Delegation of Authority revisions have improved the Orange County Sanitation District's (Sanitation District) ability to operate more efficiently and effectively, additional corrections and improvements are still needed. Examples include: Capital Improvement Program (CIP) With the Sanitation District's focus moving from major capital improvements to facilities rehabilitation and secondary treatment standards, the General Manager's delegated DW-102 Board AR, Rev 10/04/10 Page 1 of 2 authority should be adjusted to include additional flexibility with respect to the change order process. Changes in authority levels are restricted to the capital improvement process. These changes will streamline the change order approval process and will bring the authority levels in line with those for other types of procurements. Also, a new open engineering contracts prequalification process which encourages more participation at the Sanitation District is included. Additional oversight responsibilities by Contracts Administration to review and approve these change orders are incorporated. Contracts Administration resides in the Administrative Services Department outside of Construction and Design activities. Cooperative Contracts By expanding the Sanitation District's availability to a broader range of Cooperative (Piggyback) government contracts, additional cost savings can be achieved by pooling buying power from other large government agency or government agency consortiums. CEQA N/A BUDGET/DELEGATION OF AUTHORITY COMPLIANCE N/A ATTACHMENT Summary of Proposed Changes to the Delegation of Authority MD:gc DW-102 Board AR, Rev 10/04/10 Page 2 of 2 SUMMARY OF PROPOSED CHANGES TO THE DELEGATION OF AUTHORITY ARTICLE TITLE DESCRIPTION OF CHANGE RATIONALE FOR CHANGE Recital Of Findings Housekeeping level changes. Housekeeping level changes. II Terms And Definitions Terms added and defined. Some existing terms 15 new terms were added and defined. were revised for clarification. Some existing terms were revised for clarification. III Delegation Of Authority Housekeeping level changes. Housekeeping level changes. IV Operational Supplies, Housekeeping level changes. Housekeeping changes, including a re-ordering of Materials, Equipment & Sections from lowest to highest dollar values. Services, Including Professional Service Consultants (Excluding Public Works Construction Contracts Or Professional Design Service Agreements) V Professional Design Services Housekeeping level and other changes. In addition to housekeeping level changes, the Agreements layout of this section has been re-ordered due to the addition of new sections. V Professional Design Services This section adds a prequalification program for This change will result in a broad outreach to the Agreements various disciplines within the engineering field. engineering consultant community for the purpose The prequalification program will result in the of identifying a pool of highly qualified firms that will Section 5.03 Prequalification establishment of a list of consultants who meet offer OCSD the best overall service. Program OCSD's qualification criteria in various disciplines. Consultants on the established prequalified lists will be provided with access to proposing opportunities for specific projects. Proposing opportunities will consist of a Request for Proposal (RFP) process similar to the current process. The term of the list will be no greater than 3 years. June 22, 2011 Page 1 SUMMARY OF PROPOSED CHANGES TO THE DELEGATION OF AUTHORITY ARTICLE TITLE DESCRIPTION OF CHANGE RATIONALE FOR CHANGE Professional Design Services This subsection addresses the situation where This proposed change raises the threshold for sole Agreement staff determines that there is only one qualified source consultant procurements to be forwarded to V firm to perform services for a specific project the appropriate Standing Committee to $100,000. Section 5.04 Major Capital with unique needs. The Staff Evaluation The increase simply makes the General Manager's Projects: Selection of Committee may make a recommendation for level of sole source authorization consistent with his Professional Design award to that one firm to the appropriate existing $100,000 approval authority throughout the Consultants— Procedure Standing Committee when the estimated value DOA. of the proposed work is in an amount greater Subsection G. Specialized than $100,000. This is an increase of$50,000 Services from the existing DOA. V Professional Design Services Facilities Repair Services added to the scope of The existing DOA limits the scope of Facilities Agreement Facilities Engineering consultant services. Engineering to public works projects. The Beyond 2012 reorganization incorporated Facilities Repair on Section 5.05 Facilities non-public works projects into the scope of the Engineering Project: Annual Facilities Engineering division. The proposed change Budget Approval aligns the DOA with the Beyond 2011 reorganization as regards Facilities Engineering and Facilities Repair projects. V Professional Design Services This proposed revision specifies that a This change will result in a broad outreach to the Agreement prequalification process shall be used to engineering consultant community for the purpose establish a master list of consultants to perform of identifying a pool of highly qualified firms that will Section 5.06 Facilities the required design and professional services offer OCSD the best overall service. Engineering or Facilities Repair needed for Facilities Engineering and Facilities Project: Prequalification Repair projects. Process and Task Order Management Section A. June 22, 2011 Page 2 SUMMARY OF PROPOSED CHANGES TO THE DELEGATION OF AUTHORITY ARTICLE TITLE DESCRIPTION OF CHANGE RATIONALE FOR CHANGE V Professional Design Services Raises the annual fiscal year contract limitation An additional $50,000 per year, per consultant Agreement for the Facilities Engineering/Facilities Repair agreement has been added to fund design or consultants from $200,000 per year to $250,000 professional services necessary for Facilities Repair Section 5.06 Facilities per year. projects. Engineering or Facilities Repair Projects: Prequalification Process and Task Order Management Subsection E. Public Works Construction Housekeeping level changes. Housekeeping level changes. VI Contracts VI Public Works Construction The language contains revised language to The statutory threshold for informal bidding was Contracts provide for changes to the California Public recently changed from $35,000 to $175,000. Contract Code relative to the issue of the Section 6.01: Purpose and informal bidding threshold. OCSD does not currently utilize informal bidding Scope. practices, but the flexibility to do so could be of benefit. VI Public Works Construction This section has been added to allow OCSD to The ability to prequalify contractors will be Contracts establish a prequalification program for beneficial to OCSD to ensure that contractors have contractors seeking to bid on OCSD projects. proven experience in specific scopes of work or Section 6.04: Prequalification specific work environments, meet financial, safety of Contractors Seeking to Bid and other responsibility criteria. Contract awards on Public Works Projects will continue to be based on the lowest responsive, responsible bidder. June 22, 2011 Page 3 SUMMARY OF PROPOSED CHANGES TO THE DELEGATION OF AUTHORITY ARTICLE TITLE DESCRIPTION OF CHANGE RATIONALE FOR CHANGE VI Public Works Construction This section has been added to allow OCSD to This update is proposed to bring current Board and Contracts utilize the design-build method of project legislatively approved practice and the DOA into Section 6.05: Design-Build delivery in accordance with the requirements of alignment. the California Public Contract Code, as may be amended from time to time. VII Award Authorization Housekeeping level changes and reorganization Housekeeping level changes and reorganization of of sections. sections. VII Award Authorization This Section has been reorganized into In the existing DOA, Section 7.01C "Amendments & A. Original Purchase Orders, Agreements Change Orders to Existing Agreements" identified 7.01: All Purchase Orders, and Contracts change authorization for public works contracts Agreements, Contracts, B. Amendments entered into prior to July 1, 2007. The purpose was Amendments and Change C. Change Orders to Public Works to address authorizations for public works contracts Orders. Contracts that did not have an established contingency. As of this point, all contracts have an established contingency, so this section is no longer needed. VII Award Authorization C. Change Orders to Public Works Contracts The purpose for delegating staff the authority to authorize changes in the work within the approved 7.01: All Purchase Orders, Under the list of Delegated Authorized contingency Agreements, Contracts, Authority, Staff Levels A, B & C are added as is to expedite the processing of change orders, which Amendments and Change parties authorized to approve Change Orders will result in faster payments to contractors for Orders within the approved project contingency. The changed work. levels of authorization are higher than Staff Overall staff accountability will increase since C. Change Orders to Public Levels A,B &C established in 7.01A Original individual staff members will be directly responsible Works Contracts Purchase Orders, Agreements and Contracts, for authorized changes in the work within their and are noted below. designated level, within the approved contingency. Contracts Administration will now review all field change orders, rather than just changes in excess of$35,000. June 22, 2011 Page 4 SUMMARY OF PROPOSED CHANGES TO THE DELEGATION OF AUTHORITY ARTICLE TITLE DESCRIPTION OF CHANGE RATIONALE FOR CHANGE VII Award Authorization, Staff Level 7.01A 7.01C See above. Continued [Original awards] [Changes to Public Works] 7.01: All Purchase Orders, C $ up to 2,000 Less than or = Agreements, Contracts, $5,000 Amendments and Change B $2,001 - $5,000 $ 5,001 - $10,000 Orders A $5,001 - $10,000 $ 10,000 - $25,000 C. Change Orders to Public Division Works Contracts Manager $10,001-$25,000 Department Head/ Director $25,001-$50,000 $25,001 - $50,000 Assistant General Manager/ General Manager $50,001 - $100,000 $50,001 -$100,000 Standing Committee and Board level authorizations not changed. VII Award Authorization A. Under the Director of Engineering's The existing DOA limits the scope of Facilities authorized authority, adds a limit of$50,000 per Engineering projects to public works. The Beyond 7.02: Task Orders for Facilities agreement per year for facilities repair projects, 2012 reorganization incorporated facilities repair for Engineering and Facilities as previously discussed in Section 5.06, non-public works into the responsibilities of the Repair Projects subsection E. Facilities Engineering Division. The proposed change aligns the DOA with the Beyond 2011 reorganization, and adds authorization of up to $50,000 per consultant agreement per year to the Director of Engineering for design or professional services associated with Facilities Repair. June 22, 2011 Page 5 SUMMARY OF PROPOSED CHANGES TO THE DELEGATION OF AUTHORITY ARTICLE TITLE DESCRIPTION OF CHANGE RATIONALE FOR CHANGE VII 7.03 Public Works Projects Adds a provision which authorizes the General The existing DOA was silent on the handling of C. Substitution of Subcontractors Manager to approve and execute all contractor subcontractor substitutions. The proposed change is requested substitutions of subcontractors. consistent with the California Pubic Contract Code provides that an awarding body or its duly authorized officer may consent to subcontractor substitutions. This change will allow OCSD to process subcontractor substitutions in a more expedited fashion. VIII Training, Meetings and Related Housekeeping level changes. Housekeeping level changes. Travel Expenses IX Miscellaneous Housekeeping level changes. Housekeeping level changes. June 22, 2011 Page 6