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HomeMy WebLinkAboutReso 91-283 - Authorize staff to negotiate a contract with Black & Veatch for professional services associated with Redding Power Plant RESOLUTION NO. 91-285 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING AUTHORIZING STAFF TO NEGOTIATE A CONTRACT WITH BLACK & VEATCH FOR PROFESSIONAL SERVICES ASSOCIATED WITH THE REDDING POWER PROJECT, NOT TO EXCEED $743,020.00, AND AUTHORIZING THE CITY MANAGER TO SIGN THE NECESSARY DOCUMENTATION. WHEREAS, the Electric Department is in need of assistance during the transition period between ownership of the Redding Power Project (Project) and the City' s hiring of sufficient staff to maintain and operate the Plant; and WHEREAS, staff is currently negotiating a professional services contract with Black & Veatch along the lines of the draft Scope of Services and Proposed Compensation Schedule attached hereto; and WHEREAS, the fixed-fee portion of the proposed contract is not to exceed $147,020 . 00, and the time-and-materials portion is not to exceed $596,000. 00, for a total of $743 ,020. 00; and WHEREAS, Project ownership by City is expected on August 5, 1991; and WHEREAS, the last scheduled Council meeting before Project ownership is July 16 , 1991 ; and WHEREAS, it is necessary, at this July 16th Council meeting, for Council to take action to provide adequate maintenance and security for the Project immediately upon taking possession of the Project, to prevent lost or damaged equipment at the Plant; IT IS, THEREFORE, RESOLVED by the City Council of the City of Redding as follows: 1 . The City Manager is hereby authorized to negotiate a contract with Black & Veatch for professional services consistent with the proposed Scope of Services and Compensation Schedule attached hereto and incorporated herein by reference, not to exceed the sum of $743 ,020. 00 . 2. The City Manager is hereby authorized and directed to execute said contract documents on behalf of. the City of Redding; and the City Clerk is hereby authorized and directed to attest the signature of the City Manager and 'to impress the official seal of the City of Redding on the aforesaid documents, when appropriate. I HEREBY CERTIFY that the foregoing Resolution was introduced and read at a regular meeting of the City Council of the City of Redding on the 16th day of July, 1991, and was duly adopted at said meeting by the following vote: AYES: COUNCIL MEMBERS: Arness, Buffum, Moss & Dahl NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: Fulton ABSTAIN: COUNCIL MEMBERS: None MIKE DAHL, Mayor City of Redding ATTEST: FORM PROVED: ETHEL A. NICHOLS, City Clerk R DALL A. HAYS, C ty Attorney 2 ATTACHMENT A REDOING POWER CARETAKING AND ENGINEERING SUPPORT SERVICES SCOPE OF SERVICES The following summarizes the scope of services associated with the caretaking effort and permitting and management support support of the City' s acquisition of the Redding Powerproject. in Black & Veatch Construction, Inc. (Contractor) through its affiliate Townsend and Bottum, and with assistance from Black & Veatch will provide the services as described below. The dates indicated below are provided to tie compensation estimates to a point in time. Black & Veatch understands that the schedules may be adjusted by up to six months. Task 1.1 - Caretaker Support The Contractor will provide caretaker services associated with the project. The objective of this task is to maintain the project in the as-provided condition from the point of financial closing until the project is assigned to another party by the City. This transfer Is . assumed to occur on or before initiation of modification construction. The work will be performed and documented in such a fashion to facilitate transfer of the work. The task has the following separate subtasks. Task 1.1A - Project Inventory Black & Veatch will inventory the entire project starting on or about July 29, 1991. Black & Veatch will compare its inventory against one previously provided and note any discrepancies to the City. If requested, Black & Veatch will assist the City as requested to resolve any discrepancies. Task 1.19 - Transition to the City's Control The Contractor will review previously developed lay-up and maintenance plans, available Instruction Manuals, Operation Plans, Maintenance Plans, and other documents and, based on the recommendations contained therein, develop a Standby Maintenance Plan. Black & Veatch will assist the Contractor in the development of the Standby Maintenance Plan. The Plan will serve as the basis for the long-term lay-up of the project. The contents of the plan are as follows. a. Document control to ensure a system of filing and recording which provides ready access for efficient maintenance and correction, performance forecasting and costing. In addition, establish a technical library. A-1 ATTACHMENT A b. Computerized planned preventive maintenance program and maintenance management program. c. Spare parts program. d. Control and usage of tools and test' equipment. e. Maintenance/caretaking analysis. f. Weekly planned preventive maintenance/caretaking assignments and schedule. g. Planned preventive maintenance/caretaking list. h. Property accounting and material control system. The Contractor will review the documentation which results from the effort of the current lay-up contractor. Any noted discrepancies between the proposed Standby Maintenance Plan and past lay-up work will be noted to the City. The Contractor will assist the City in evaluating the effects of any lay-up deficiencies. Task 1.1C - Standby Maintenance The Contractor will implement the Standby Maintenance Plan, provide custodial services, and 24-hour site security. The Contractor will maintain records of maintenance and repair activities and maintain a log of all on-site activities. The Contractor will acquire miscellaneous tools and expendables necessary to support his work. Any tools or equipment acquired by the Contractor and which is treated as a pass through expense will become the property of the City at the completion of the work. The Contractor intends to use direct hires in the support of this effort. To the extent practical , the Contractor plans to use personnel , who were previously involved in operation, lay-up or maintenance of the project. Task 1.10 - Transition to Others The Contractor will cooperate with the City in the transition from the Contractor providing caretaking services to others. The Contractor assumes that complete responsibility for caretaking will be transferred prior to the initiation of modification construction. Up until the point of transfer, the Contractor will continue to implement the Standby Maintenance Plan. A-2 ATTACHMENT A During the transition period, the Contractor will provide the successor or prospective successors with access to the Standby Maintenance Plan and maintenance records. Once a successor is selected, the Contractor will jointly develop turnover procedures to ensure continuous lay-up support and will assist the City in monitoring the successor' s lay-up and maintenance effort. Task 1.2 - Additional Lay-Up Work As a result of previous investigations and inaction by current owners, lay-up activities recommended by other consultants and not currently Implemented, may need to be undertaken. For those items which cannot be reasonably performed by the caretaking staff, the Contractor, using the services of Black & Veatch for specification and drawing preparation, will assist the City in completing the required work. The work anticipated includes the following. o Developing procurement packages o Preparing specifications and drawings for each procurement package o Evaluating bids o Providing construction management services for the lay-up work The lay-up work will be done by other contractors. The services of these contractors will be acquired through competitive bidding and using the City's procurement process and purchasing documentation. Task 1.3 - Liquidation Support Black & Veatch, through Black & Veatch Construction, Inc. and/or Townsend and Bottum, will assist the City in the liquidation of assets, Including equipment, buildings, and parts associated with the site. Such support will primarily include developing a liquidation plan and assisting the City in implementing that plan. Task 2.1 - Project Permitting Black & Veatch will assist the City in securing the transfer of existing permits and licenses and acquiring any new permits and licenses necessary to support modification and operation of the project. The work includes the following subtasks. A-3 ATTACHMENT A Task 2.1A - Engineering Support Black & Veatch will perform engineering evaluations to determine the proposed configuration of the facility to be licensed. The work will include developing project descriptions and drawings which depict the project and anticipated construction activities associated with the modification work. Black & Veatch assumes that sufficient site characterization work exists and is available to Black & Veatch to support the licensing and final engineering for the project and that additional on-site investigations are not required. Task 2.1B - Permit Application Preparation Black & Veatch will prepare applications to transfer existing permits and licenses from the previous owner-operator-licensee to the City. Black & Veatch will also prepare applications for any new licenses associated with the electric generating facilities. Black & Veatch will provide licensing expertise and technical support to assist the City in transferring and/or obtaining the licenses, permits, and approvals for modification and operation of the Redding Power facility as identified in the Independent Engineers Report and summarized as follows. IA. Transfer/Modification of Air Permit to Operate o Application for permit transfer and associated analysis will be performed by Black & Veatch. o Black & Veatch assumes no daily or annual Increase in NO emissions plus limits on annual operating hours as- necessary, -- or -- 18. Application for New Air Permit to Operate (If required) o Black & Veatch will provide offset modeling of 5 sources and BACT/LAER analysis. o Black & Veatch assumes National Weather Service meteorological data is used for modeling and no preconstruction air quality monitoring required. 2. Transfer of Wastewater Discharge Permit o Application for permit transfer and preparation of new wastewater discharge report performed by Black & Veatch. A-4 ( _ _ .-r- ATTACHMENT A i 3. Transfer of City of Redding Use Permit 4. Transfer of Permit to Operate Steam Boiler 5. Obtain a new EPA Low Volume Hazardous Waste Generator Identification Number in City' s name. 6. Mosquito Abatement District Approval Except as covered by Tasks 2.2 and 2.3, any additional approvals which may become necessary for modification and operation of the Redding power facility can be provided under modified or separate scope of services. Black & Veatch assumes that the City or others will prepare applications as required to support City or other facilities on the site including any electric substations and transmission lines and other City facilities. The City will obtain all land and water rights necessary to support the project including title searches and legal surveys, if required. Task 2.2t - Consultation Support Black & Veatch will consult as required with local , state, and federal resource agencies regarding securing the necessary transfer of licenses and permits and any new licenses and permits required to modify and operate the electric generating facility. This work shall include initial consultations on filing requirements, coordinating and conducting consultation meetings, expediting agency review and processing of filings, and supporting any statutory public hearing required in the licensing and permitting of the electric generating project. Task 2.2 - Fuel Gas Service Support Black & Veatch will assist the City in completing any permit applications and other obligations of the City to ensure and/or expedite Installation of fuel gas service to the site. The support primarily covers working with local gas supply interests, resource agencies, and other City departments. The support is not envisioned to include direct support in gas supply (commodity) contract or transmission contract negotiations. Task Z.3 - Permits to Remove Existing Facilities If required to support liquidation of any existing assets, Black & Veatch will assist the City in securing any permits or compiling with any regulations regarding the liquidation of the facilities. A-5 ATTACHMENT A Task 2.4 - Project Management Support Black & Veatch will provide home office engineering services and, on a short-term basis (less than 12 months) , an engineer to work in the Electric Department offices as directed by Electric Department management to assist in planning and implementing the activities necessary to complete the modifications and restart of the project. The Engineer will assist the City as requested on the following subtasks. For work performed in Redding when requested by Redding, the City will provide the Engineer with office space, furnishings, telecommunications, office supplies, a personal computer and associated software, and clerical and drafting support to the same level as a City employee engaged in the support of the work. Task 2.4A - Site Master Plan Black & Veatch will work with the City and its various departments to develop a master plan for the use of the site. Black & Veatch will assist the Electric Department to insure that the areas needed to modify, operate and maintain the Redding Power electric generating facility .and to construct, maintain and operate a future simple-cycle or combined cycle facilities are preserved. Task 2.4B - Engineering Services Support Black & Veatch will assist the City in developing a request for proposals and evaluating proposals to secure engineering or design-build services for the boiler modifications and interconnection facilities. If this task is performed by Black & Veatch, Black & Veatch understands that it will be prohibited from providing subsequent engineer or design- build services. Task 2.4C - Schedule and Cost Control Black & Veatch will assist the City in establishing a management control schedule, cost estimate, and cash flow to support modifications and initial operation of the electric generating facility. The work will use project management and spreadsheet PC-based programs, compatible with or provided by the City. Task 2.40 - 0>W Plan Black & Veatch will assist the City In developing an Operation and Maintenance (0&M) Plan for the electric generating facility. The plan will identify the major 0&M work and the approach to be employed by the City in implementing the plan. The plan will include descriptions of any required O&M procedures which must be developed and identify the parties and level of effort required to complete the development. The plan will identify minimum staffing requirements, employee A-6 ATTACHMENT A qualifications (for key operating personnel) , and how the services will be obtained, 1 .e. direct hires or service contractors. The plan will also outline training requirements, both initial and on-going, for key operating personnel and how the training will be achieved. i A-7 ATTACHMENT B REDDING POWER CARETAKING AND ENGINEERING SUPPORT SERVICES COMPENSATION This attachment covers compensation for Caretaking and Engineering Support Services for the Redding Power facility. The anticipated scope of services is summarized In Attachment A. The assumed schedule includes beginning work on or about July 29, 1991, and completing tasks on or about the start of construction. Black & Veatch understands that the actual schedule may be adjusted up to six months. The assumptions provided were used to arrive at the estimated costs. The rates are based on 1991 rates and will Increase at the end of 1991 and on an annual basis with the general rate of inflation. The proposed compensation varies by task and are summarized as follows. Some of the tasks will be done on a time and material basis. For these tasks, Black & Veatch has provided an estimate to perform the work indicated or support 12-months of caretaking. Other tasks are proposed on a cost not-to-exceed basis, and an upper limit is provided for these tasks. A contingency has been added to any not-to-exceed costs to cover uncertainty in the scope of final services. The contingency accounts will be used only with the concurrence of the Electric Department regarding the circumstances, scope, and amount of contingency applied. Task 1.1 - Caretaker Support Unless otherwise indicated, this portion of the work will be done on a time and material basis. Rates for the personnel involved are as . follOw5, Lead Coordinator $528.00 per day plus expenses Plant Supervisor $200.00 per day Plant Staff $130.00 per clay Task 1.1A - Project Inventory The not-to-exceed cost to conduct the inventory and summarize findings is $6,820. This includes a $620 contingency allowance. Any effort to resolve differences are not included. Task 1.1B - Transition to the City's Control The estimated costs for this effort is $10,010. The estimate is based on 15 staff days of effort. Efforts to evaluate and resolve past deficiencies are not included. B-1 • • ATTACHMENT 6 jTask 1.1C - Standby Maintenance Expenses associated with tools and expendables will be invoiced at cast with a 5 percent markup fur administrative services and payment offsets. Engineering services, if required, will be performed by Black & Veatch and billed to Black & Veatch Construction, Inc. on a comparable basis to the compensation provisions between Black & Veatch and the City. Markup of Black & Veatch costs will not be made. Based on the above considerations and assuming five local hires, Black & Veatch estimates the monthly billings to be $35,000 which includes $25,000 in labor and $10,000 in expenses and materials. The total costs for 12-months of caretaking would be approximately $420,000. The above rates include worker compensation and general liability insurance. It is assumed that the City will provide boiler and machinery insurance coverage and that Builder' s Risk is not required due to the nature of the work. It is assumed that Black & Veatch and its subsidiaries and affiliates will be named as additional insured on the City' s policies and that waivers of subrogation to Black & Veatch will be provided. If these assumptions are not correct, 31ack & Veatch through i,ts subsidiary or affiliate can provide these coverages. If required, any incremental insurance costs will be considered as an expense. It is assumed that the City will provide and pay for all utilities. Task 1.1D - Transition to Others The estimated costs for this effort is $10,010. The estimate is based on 15 staff days of effort. Task 1.2 - Additional Lay-Up work The engineering services work will be done on a time and material basis. Based on total lay-up costs of $150,000 or less, the not-to-exceed cost will be $16,500 for engineering services. This estimate includes a $1,500 contingency allowance. Task 1.3 - Liquidation Support This work will be done on a time and material basis. Black & Veatch estimates the costs to be $16,500 for this effort. Task 2.1 - Project Permitting Project Permitting will be done on a time and material basis with an upper limit. The upper limit will not be exceeded without prior concurrences from the City. B-2 ATTACHMENT B Black & Veatch estimates that the project permitting will require 78 staff days of effort assuming annual increases in N0. emissions remain below threshold increments. If threshold incrementsXare exceeded a new air permit must be obtained. This action would increase the level of effort to 142 staff days. Black & Veatch estimates the project permitting costs to be $65,650. This includes a $59910 contingency allowance. Black & Veatch further requests a contingency allowance of $48,960 to be used if the current air permit cannot be transferred and a new permit is required. Task 2.2 - Fuel Gas Service Support This work will be done on a time and expense basis. Black & Veatch estimates the cost to be $10,010 for this effort. Task 2.3 - Permits to Remove Existing Facilities This work will be done on a time and expense basis. Black & Veatch is unaware of any permits to support liquidating assets. Black & Veatch recommends a contingency allowance of $10,000 be established. Task 2.4 .- Project Management Support Project Management Support will be accomplished on a time and expense basis. Black & Veatch estimates the following amounts will be expended to complete the subtasks identified. The daily rate for an engineer in the City's offices is $524 plus expenses. A rate of $900 to $1,050 per day should be budgeted with the variation due to travel expenses. Task 2.4A - Site Master Plan Black & Veatch estimates that $7,425 will cover this task. Task 2.46 - Engineering Services Support Black & Veatch estimates that $10,000 will cover this task. Task 2.4C - Schedule and Cost Control Black & Veatch estimates that $7,425 will cover this task. Task 2.40 - O&M Pian Black & Veatch estimates that $11,000 will cover this task. In summary, the potential cost for the proposed services is as follows. B-3 ATTACHMENT B i I. Not-to-Exceed Tasks: Base Amount Contin enc Task 1.1A S 6,820 6 Task 1.2 16,500 1,500 Task 2. 1 65,650 54 930 Subtotals $89,970 57,050 Base & Contingency $ 4Z�A.20 II. Time and Material Tasks: Task 1.18 $ 10,010 Task 1.1C 420,000 Task 1. 10 10,010 Task 1.3 16,500 Task 2.2 10,100 Task 2.3 10,000 Task 2.4A 7,425 Task 2.4B 10,000 Task 2.4C 7,425 Task 2.40 100 If it is assumed that the Project Manager is assigned to Redding for eight months, the cost for the Project Manager is estimated to be (22 days per month) x (8 months) x ($1,000/day) _ $176,000 III. Recommended total contract not-to-exceed amount: Not-to-Exceed Task $147,020 Time and Material Task Task 1.1C 420,00 Project Management 176,000 0 0 0 Total This price will not be exceeded without prior City authorization. B-4