Title
Adopt a Resolution to Authorize the City Manager to Execute Amendment 3 to a Consulting Services Agreement with Terraphase Engineering, Inc. For Environmental Design Services for a Treatment Wetland at the City of San Leandro Water Pollution Control Plant
Staffreport
COUNCIL PRIORITY
• Infrastructure
• Sustainability & Resiliency
SUMMARY
In October 2019, Terraphase Engineering was selected through a competitive process as design consultant for the Treatment Wetland Project at the Water Pollution Control Plant (WPCP). The scope of the project has evolved to also include reuse of stockpiled soil from prior upgrades at the WPCP as the first phase of the Treatment Wetland construction. Staff requests an amendment to the Terraphase agreement to include a pilot scale project to test the process for mixing the soil and produce the specifications necessary to bid the project based on the results of the test.
RECOMMENDATIONS
Staff recommends City Council adopt a Resolution to approve and authorize the City Manager to execute an amendment to the Consulting Services Agreement (CSA) with Terraphase Engineering, Inc. for design services for Treatment Wetland project for an additional $266,624.
BACKGROUND
In April 2018, the San Francisco Bay Restoration Authority (SFBRA) awarded a $538,926 Measure AA grant to the City to plan, design and permit a multi-benefit Treatment Wetland. This project will remove nitrogen, phosphorus and other contaminants from a portion of the WPCP discharge water through a combination of advanced treatment technology and a constructed open water wetland in an existing storage basin.
In October 2019, Terraphase Engineering was selected through a competitive process to support the design phase of the project. Two additional amendments to the original contract included additional design tasks deemed necessary to move the project along.
The existing storage basin needs to be partially filled to allow construction of the project. There is approximately 26,000 yards of soil stockpiled from excavations during the plant upgrade project. The basin contains a similar amount of material left over from when it was an active part of the treatment process. The stockpiled soil and the existing material need to be mixed with cement to allow sufficient soil strength to support equipment for the remaining construction.
Placement of the soil stockpile was originally part of a separate project that predated the Treatment Wetland project. However, over the course of the design and permitting, it was combined with overall Treatment Wetland construction. It was not included in the original scope of Terraphase’s agreement.
The additional scope of work includes conducting a pilot test of the cement mixing process. A small portion of the soil stockpile will be mixed with the existing pond material and allowed to harden. Terraphase has already conducted an RFP process to select a contractor for the pilot test and selected Odin Environmental. The additional scope includes hiring Odin as a subcontractor and work related to conducting the pilot test.
Terraphase will then use the results of the pilot study to create the specifications necessary for an invitation for bids for this part of the project. It also includes budget to modify the specifications for the rest of the project.
Analysis
The Treatment Wetland project has received approximately $6.7 million in grants to support the construction of the project, including approximately $3.7 million from the San Franciso Bay Restoration Authority and approximately $3 million from the US Environmental Protection Agency. This project is part of the design phase and may not be eligible for reimbursement under these grants. However, it will move the overall project closer to construction, which is expected to commence in 2025.
This amendment will add $266,624 for a total not to exceed amount of $1,177,863. Of this, $99,300 is to pay the subcontractor with the remainder for coordination and design work.
The agreement with Terraphase Engineering initiated on October 15, 2019, covered design and permit assistance to start the treatment wetland project. An additional amendment to the current contract with Terraphase is needed to continue the planning prior to implementation phase through a pilot test to determine a soil stabilization method most appropriate at the location of the new wetland treatment facility. The amendment increases the scope of the contract to include this pilot test, which adds $266,624 to compensation with a total not to exceed amount of $1,177,863 as well as the terms of the contract, extending to June 30, 2025.
After the pilot is completed, Terraphase will prepare plans and specifications to be used in soliciting bids for the full-scale implementation of the soil project. To allow sufficient time for the soil to settle, the soil placement is planned for summer of 2025 with the remaining construction to occur in 2026. The construction project will be funded with a combination of grant funds and funds from the Water Pollution Control Plant Enterprise Fund.
Previous Actions
October 15, 2018 - Reso. No. 2018-30; Resolution of the City of San Leandro City Council to Accept Grant Funds of $538,926 from the San Francisco Bay Restoration Authority for San Leandro's Treatment Wetland for Pollution Reduction, Habitat Enhancement, and Shoreline Resiliency Project (Project No. RA-007)
October 17, 2019 - Reso. No. 2019-160; Resolution of the City of San Leandro City Council to Approve and Authorize the City Manager to Execute a Consulting Services Agreement with Terraphase Engineering, Inc., in the amount not to exceed $789,036 for Design and Permitting Services of a New Treatment Wetland at the Water Pollution Control Plant; Authorize the City Manager to Execute Contract Amendments Up to 20% (or $157,807) and an Appropriation of the Water Pollution Control Plant Enterprise Fund Balance in the Amount of $501,917 for Fiscal Year 2019-20
April 4, 2024 - Reso. No. 2024-029; Resolution to Adopt a Mitigated Negative Declaration (MND) for the San Leandro Water Pollution Control Plant Treatment Wetland and Shoreline Resilience Project in Accordance with the Requirements of the California Environmental Quality Act (CEQA)
July 15, 2024 - Reso. No. 2024-089; Resolution to Authorize the City Manager to Accept a Grant for $3,734,489 from the San Francisco Bay Restoration Authority for San Leandro’s Treatment Wetland for Pollution Reduction, Habitat Enhancement, and Shoreline Resiliency.
July 15, 2024 - Reso. No. 2024-091; Resolution to Authorize the City Manager to Accept a Grant for $2,975,303 from the United States Environmental Protection Agency for Pollution Reduction, Habitat Enhancement, and Shoreline Resiliency.
Applicable General Plan Policies
• Policy EH-1.8 Sea Level Rise. Consider the effects of projected sea level rise in the design and planning of all development, recreational improvements, and infrastructure along the San Leandro shoreline.
• Action EH-1.8. A: Adaptation Plans. Develop long-term adaptation plans which minimize the potential for coastal flooding on public and private properties near the San Leandro shoreline. Periodically evaluate the risk to homes, businesses, parks, and other features and take steps to protect or fortify these areas to reduce damage potential.
• Policy CSF-6.4 Wastewater Collection and Treatment. Maintain efficient, environmentally sound, and cost-effective wastewater collection and treatment services in San Leandro.
Environmental Review
Pursuant to the California Environmental Quality Act (CEQA), the City of San Leandro prepared the “San Leandro Water Pollution Control Plant Treatment Wetland and Shoreline Resilience Project Initial Study/Mitigated Negative Declaration” (MND). The City Council adopted the Final MND on April 2, 2024.
Financial Impacts
Approval of this action will authorize the City to enter into a third amendment of the CSA with Terraphase Engineering for environmental design services associated with the Treatment Wetland project for an estimated cost of $266,624. An existing project, WPCP Dirt Relocation (account 593-52-229), to relocate soil was generated during the plant upgrade and currently has $2,248,360 previously appropriated funds available. This project is no longer necessary because the soil relocation will be done as the first phase of the Treatment Wetland project. Therefore, funds are proposed to be reallocated to the Treatment Wetland project (account 593-52-276) to fund a portion of the City’s required match for the remaining design and construction of the Treatment Wetland project.
There is no impact to the Water Pollution Control Plant Fund or General Fund with this action.
ATTACHMENTS
Attachment A: Resolution for Terraphase CSA Amendment 3
Attachment B: Amended scope of work and compensation schedule
Attachment C: Amendment 2 to CSA with Terraphase
Attachment D: Amendment 1 to CSA with Terraphase
Attachment E: Original CSA with Terraphase
PREPARED BY: Ramya Sankar, Management Analyst II, Water Pollution Control Division
Hayes Morehouse, Water Pollution Control Manager