Agenda 02/23/2010 Item #10C
Agenda Item No. 10C
February 23. 2010
Page 1 of 11
EXECUTIVE SUMMARY
Recommendation to award a constrnction contract in the amount of $2,904,563.00 for the
North County Regional Water Treatment Plant "Finished Water Quality and Odor
Control Compliance Project" to Cardinal Contractors, Inc., Bid #10-5423, Project Number
71002.
OBJECTIVE; The public purpose is to meet operational and reliability needs, to meet the
demand for potable water, and to stay in compliance with all regulatory requirements at the
North County Regional Water Treatment Plant (NCRWTP).
CONSIDERATION: On June 24, 2008, Agenda Item lOG, the Board of County
Commissioners (Board) adopted the 2008 Water Master Plan Update that identified the
requirement for improving finished water quality and odor control at the NCRWTP. The
proposed scope of work is consistent with the 2008 Water Master Plan Update, Project 71002,
"NCRWTP High Total Dissolved Solids Reverse Osmosis Design, Construction, and Supply,"
Section 8, Table 8-2, page I of 5, line 26.
The design for the entire NCRWTP 2-MilIion Gallons per Day (MGD) Reverse Osmosis
Program is complete; however, the water department intends to implement the program in two
phases;
I. NCRWTP Finished Water Quality and Odor Control Compliance Project - Replacement of
the degasifier system and the addition of an odor control system in fiscal year 20 I 0, to
improve the quality of finished water, the efficiency of the water treatment processes, and the
efficiency of controlling odors.
2. NCRWTP Raw Water Quality Compliance Project - Future construction of 2-MGD of
reverse osmosis capacity to treat groundwater that has changed in quality (high total
dissolved solids) making four high production wells unusable, significantly reducing the
production capacity of the wellfield. Continued eastward movement of the plume of
groundwater high in total dissolved solids has the potential to negatively impact additional
wells, further reducing the production of the wellfield. This phase is being deferred and will
be implemented at an event -driven later date.
Finished water quality at the NCRWTP is very difficult and costly to maintain. Turbidity and
nitrification are difficult to control. Turbidity and nitrification events tend to cause rapid
degradation of chlorine, which in turn threatens the ability to remain in compliance with water
quality, disinfection, and pH levels. Maintaining all of these items is critical for sustaining
compliance in potable water quality, thereby ensuring public health. During nitrification events
costly, large-scale system flushing and temporary increases in the amount of very expensive
disinfection chemicals are utilized. While the Water-Sewer District has not had any such event
lead to a requirement for a public notification, there is significant risk of not complying with
regulations until the degasification equipment is upgraded. In addition to improving water
quality, the improved degasification process will provide an annual savings in chemicals and
labor costs of approximately $450,000. Reference the attached Business Case for further details.
Executive Summary
NCRWTP Finished Water Quality and Odor Control Compliance, Project 71002
Page 2
Agenda Item NO.1 OC
February 23. 2010
Page 2 of 11
Additional savings will be realized by the county purchasing the major equipment directly,
thereby avoiding sales tax.
The existing odor control system is not a direct public health concern; however, the system is
marginal and occasionally odor complaints are received from residents in the area surrounding
the plant. The construction of four new degasifier towers and one new odor control scrubber will
ensure that the NCRWTP remains in compliance with the Public Utilities Division's "good
neighbor" policy of generating no offsite odors.
Deferring the Raw Water Quality Project (Phase 2 of the original program) does represent an
operational risk; without the 2-MGD of high pressure reverse osmosis equipment, there is the
potential for saltwater to migrate into the wells that are currently used, rendering them unusable.
However, the risk is expected to be manageable in the short term. Long term, the project
wellfield consultant, Camp Dresser & McKee, predicts that the migration of saltwater into the
aquifer will eventually occur, and it will be necessary to mitigate this degradation of the water
supply by constructing the additional 2-MGD ofreverse osmosis capacity that will use the four
wells that are currently unusable as the raw water source for the project. Each existing well
represents a capital investment of approximately $1,000,000; Phase 2 of the project will recover
the lost capital investment in infrastructure of the currently unusable four wells, and will protect
the capital investment that we have in other potentially impacted wells in the well field.
Currently, this requirement, defined as Phase 2, is not programmed until after 2015, unless there
is an earlier change in wellfield water quality conditions.
Value engineering activities were conducted at the 60 and 90 percent design completion
milestones. These reviews identified key cost-drivers, generated alternatives through the use of
creative thinking, and resulted in filling the need reliably at the lowest life-cycle cost without
sacrificing project requirements for safety, quality, operations, maintenance, and environmental
protection.
Bid #10-5423 was advertised on December 30, 2009; 1,136 notices were mailed and 165
prospective bidders downloaded plans and specifications. On February 5, 2010, sealed bids for
the construction of this project were opened. Eight bids were received and are summarized in
the fo llowing table;
BIDDER
Cardinal Contractors, Inc.
Mitchell and Stark Construction Co., Inc.
TLC Diversified
John Reynolds and Sons
John J. Kirklin
Douglas N. Higgins, Inc.
Westra Construction
AH Salace Construction Group
BID
$2,904,563.00
$3,116,416.00
$3,308,350.00
$3,347,332.00
$3,350,432.00
$3,365,872.00
$4,016,332.00
$4,054,000.00
Executive Summary
NCRWTP Finished Water Quality and Odor Control Compliance. Project 71002
Page 3
Agenda Item No. 10e
February 23.2010
Page 3 of 11
Section XiX of the Collier County Purchasing Policy, has a provision for Local Vendor
Preference (L VP). Purchasing Staff has extended a right to match offer to Mitchell and Stark
Construction Co., Inc., a local contractor who has agreed to match the overall low bid of
$2,904,563.00.
Shortly after receiving Mitchell & Stark's matching offer, staff was contacted by the apparent
lowest bidder, Cardinal Contractors, Inc., which maintains that it qualifies for the local vendor
preference. Cardinal Contractors had filed the required L VP affidavit with its bid, but
purchasing staff was initially unable to verifY whether Cardinal Contractors has a local address
or a Collier County occupational license, both of which are pre-requisites for qualifYing as
"local" under the L VP policy.
Subsequently, staff met with Cardinal Contractors and learned that Cardinal Contractors has
been the prime contractor on a wastewater plant expansion project for the City of Marco Island
and has had an office trailer on the construction site for nearly two years. They anticipate
remaining on site for at least another full year. Further, Cardinal Contractors provided evidence
of holding Collier County occupational licenses in the past, but stated that they were told by the
Collier County Tax Collector's Office in recent years that they no longer needed an occupational
license in Collier County due to changes in state law. Additionally, Cardinal Contractors stated
on their L VP affidavit that they presently have twenty employees who are Collier County
residents.
The facts regarding Cardinal Contractors in this matter are strikingly similar to those pertaining
to the award of lIB 08-5106 in September 2008. In that instance, Astaldi Construction
Corporation was the apparent low bidder. Like Cardinal Contractors, Astaldi did not have a
current occupational license, despite efforts to obtain one through the Tax Collector's Office;
Astaldi did not have a traditional pennanent local address; and, Astaldi had a construction office
on a jo b site within Collier County and had been there for several months prior to bidding the
new contract. As with Cardinal Contractors, Astaldi employed several Collier County residents.
Staff brought the AstaIdi situation to the Board on September 9, 2008, and after reviewing the
facts in that situation, the Board deemed Astaldi Construction Corporation to be "local" under
the L VP policy and subsequently awarded Astaldi the pending contract. Based on that action
and the similarity of the facts in this case, staff is recommending that the offer from Mitchell &
Stark to match Cardinal Contractors's bid offer be declined and that the Board award ITB 10-
5423 to Cardinal Contractors, Inc., in the amount of $2,904,563.00. This amount is 26-percent
less than the $3,933,000.00 revised engineer's estimate provided by the Engineer of Record,
HDR Engineers, Inc. (A letter of recommendation from the Engineer of Record is attached.)
The recommended award price includes all bid items except Item 2 which will be procured
separately.
FISCAL IMPACT: Funding is available in and is consistent with the FYIO Capital Budget
approved by the Board on September 24, 2009. The source of funding is the Water User Fee
Fund (412).
Executive Summary
NCRWTP Finished Water Quality and Odor Control Compliance. Project 71002
Page 4
Agenda Item No. 10e
February 23.2010
Page4 of 11
LEGAL CONSIDERATIONS: This item has been reviewed and approved by the County
Attorney's Office and is legally sufficient.-JBW
GROWTH MANAGEMENT IMP ACT: This project meets current Growth Management Plan
standards to insure the viability of public facilities.
RECOMMENDATION: That the Board of County Commissioners, Ex-officio the Governing
Board of the Collier County Water-Sewer District:
1. Award Bid 10-5423 "NCRWTP Finished Water Quality and Odor Control Compliance" to
Cardinal Contractors, Inc.
2. Authorize the Chairman to sign the standard construction contract after review and approval
by the County Attorney's Office.
PREPARED BY: Tom Chmelik, P.E., PMP, Principal Project Manager, Public Utilities
Division.
Agenda Item No. 10e
February 23. 2010
Page 5 of 11
COLLIER COUNTY
BOARD OF COUNTY COMMISSIONERS
Item Number:
Item Summary:
10C
Recommendation to award a construction contract in the amount of $2.904.563 for the North
County Regional Water Treatment Plant Finished Water Quality and Odor Control
Compliance Project to Cardinal Contractors. Inc., Bid #10-5423, Project Number 71002. (Jim
DeLony. Public Utilities Administrator)
2/23/2010 9:00:00 AM
Meeting Date:
Prepared By
Tom Chmellk
Project Manager, Senior
Date
Public Utilities Division
Public Utilities Engineering
9/16/2009 12:57:09 PM
Approved By
Pamela Libby
Manager - Operatlons~WaterlWW
Date
Public Utilities Division
Water
2/4/2010 12:47 PM
Approved By
Jennifer White
Assistant County Attorney
Date
County Attorney
County Attorney
2/5/2010 2: 20 PM
Approved By
Paul Mattausch
Director - Water
Date
Public Utilities Division
Water
2/5/20103:22 PM
Approved By
Phil E. Gramatges, P .E.
Project Manager, Principal
Date
Public Utilities Division
Public Utilities Engineering
2/8/20103:38 PM
Approved By
Thomas Wldes
Director - Operations Support - PUD
Date
Public Utilities Division
Utilities Finance Operations
2/9/20108:21 AM
Approved By
Tom Chmellk
Project Manager, Senior
Date
Public Utilities Division
Public Utilities Engineering
2/9/201011:00 AM
Approved By
Scott Johnson
Purchasing Agent
Date
Administrative Services
Division
Purchasing & General Services
2/9/201012:14 PM
Approved By
OMB Coordinator
Date
County Manager's Office
Office of Management & Budget
2/12/201012:50 PM
Agenda Item NO.1 Oe
February 23. 2010
Page60f11
Approved By
Steve Carnell
Director ~ Purchasing/General Services
Date
Administrative Services
Div iSle"
Purchasing & General Services
2/16/201011:52 AM
Approved By
Jeff Klatzkow
County Attorney
Date
2/16/20101:19 PM
Approved By
Susan Usher Management/Budget Analyst, Senior Date
Office of Management & 2/16/20104:03 PM
Budget Office of Management & Budget
Approved By
Mark Isackson Management/Budget Analyst, Senior Date
Office of Management & 2/16/20104:08 PM
Budget Office of Management & Budget
Approved By
James W. Delany Date
County Attorney County Attorney 2/16/20104:S1 PM
COLLIER COUNTY GOVERNMENT
PUBLIC UTILITIES PLANNING AND PROJECT MANAGEMENT DEPARTMENT
Agenda Item No. 10e
February 23. 2010
Page 7 of 11
BUSINESS CASE FOR:
71002 NCRWTP Finished Water Quality and Odor Control Compliance Project
(Sub-project of 71002 NCRWTP High TOS RO Exp Program)
NEXUS TO MASTER PLAN: 2008 Water Master Plan Update
Table 8-2, page 1 of 5, Line 29, Fund 411 for original program
FY10 Budgeted Amount: $ 5.500.000
1. Initiative action and recommendation
Finished water quality at the NCRWTP has been very difficult and costly to maintain. This is
because the degasification equipment is undersized, making turbidity and nitrification
difficult to control. Turbidity and nitrification events tend to cause rapid degradation of
chlorine, which in turn cause potential concerns with water quality, disinfection, and pH
levels. Maintaining all of these items is critical for ensuring public health. Further, the
existing odor control system is marginal, and occasionally odor complaints occur.
To overcome these problems and to remain in compliance, large quantities of expensive
chemicals are added to achieve the desired level of water quality and odor control. When
water demand increases, there will be significant issues with water quality and odor control.
In fact, the NCRWTP cannot operate at capacity due to the turbidity problems caused by
insufficient degasification.
This project addresses these concerns by constructing four replacement degasifiers and
one additional odor control unit.
2. Benefits of the initiative action
Tangible benefits:
. Public health improvement by being able to stay in compliance and deliver high quality
water in a sustainable, reliable manner.
. Annual estimated savings of $300,000 in chemical use cost at current pricing.
. Annual estimated savings of $75,000 in media replacement cost.
. Annual estimated savings of $25,000 in plant labor cost.
. Annual estimated savings of $50,000 in distribution flushing cost.
. Considering the total estimated savings of $450,000 per year, a 15.56% internal rate of
return, and a 6-year payback on the investment is expected. As chemical prices
continue to rise, the payback period will decrease favorably. The existing degasifiers are
17 -years old, and there is every indication that the new degasifiers will last at least that
long. Therefore, the project will pay for itself during the equipment's useful life.
Agenda Item No. 10e
February 23. 2010
Page 8 of 11
Intangible benefits:
. Supports the Good Neighbor Policy by reducing the likelihood of odor complaints. This
becomes more beneficial as demand increases.
. Protects property values by creating a sustainable odor-free environment.
. Extends equipment life by using fewer aggressive chemicals that degrade materials.
. Protects the environment by using fewer chemicals.
. Saves fossil fuels and reduces carbon emissions through reduced chemical
transportation.
. Improves inherent job safety due to: more ergonomic degasifier access, new clean-in-
place system, less frequent media replacements, and less chemical usage.
This project ensures that the mission of maintaining regulatory compliance and meeting
customer demand will be accomplished. This benefit, together with the additional tangible
and intangible benefits, outweighs the project cost.
3. Risk of not takinq the action
Finished water quality at the NCRWTP has been very difficult and costly to maintain. This is
because the degasification equipment is aging and undersized, making turbidity and
nitrification difficult to control. Turbidity and nitrification events tend to cause rapid
degradation of chlorine, which in turn causes potential compliance concerns with water
quality, disinfection, and pH levels. Maintaining all of these items is critical for remaining in
compliance and ensuring public health. During nitrification events, costly, large-scale
system flushing and temporary increases in the amount of expensive disinfection chemicals
used may be needed. While the Water-Sewer District has not had any such event lead to a
public notification, the risk of not complying with regulations remains greater until the
degasification equipment is upgraded.
4. Whv is this action the best value solution
HDR has provided the best-value design based on the terms and conditions of their
contract. Together, HDR and Staff bid the construction of this initiative consistent with
providing best-value to the rate-payers of Collier County.
5. Other option to the action
Repairing the equipment will not provide the needed benefits that the new equipment will
offer. The current degasifiers are undersized, and are being increased from 11-feet to 13-
feet in diameter. The new odor control unit is being added because the three existing units
do not have enough capacity.
The County can elect to do nothing and retain the current processes and their inherent risks
and costs. Doing so increases the likelihood of public notifications, and accepts an annual
additional operating cost of approximately $450,000.
6. What criteria does this initiative address (e.q., Public Health. SafelY. AUIR. Compliance.
meets demand. etc...)
Public Health, Regulatory Compliance, and Meet Demand.
Name: Tom S. Chmelik, PE
Title: Principal Project Manager
Date: February 5, 2010
uc;p......
q;~r
_.~
""Ol
E ~:?
$ co a..
-:J
"'~
"0.0
cOl
Olu..
Cl
<l:
.
.
.
, J
,
i . ~ ~ iI ~ ~ !
" 0' , '-
f ~ ~ " a > > > , . ,
~ ri
, ~ ~ ~ ! ! i !!
. . ~
" ~ . , , , , , !
I . ~ ~ . " > >
. . ri ri
. . ~ ~ ~ ~ ~ .
. " ;\ ~ ~ ~ ~ , , , , 0 , !
. ~ ~ .1: > z
i . ri ri
.
,
~ . . iI ~ ~- . ~ ; iI
z " ~. ~ ~ . . . ~ , , , , , '-
. . a . a
. . ri " . ri
g
]
. . ~ iI. ~ ~ i
t " iiI ~ ~ ~ ~ ~ , , , , 0 ,
f ~ > z >
i " ri
~
,
I . ~ ~ ~ . ~ ~ ~ ~
, u " ~ ~
~ . ~ ~ N a ~ , , , '- , '-
, . ii ri ri
d
,
I . ~ ~ ~ ~ ~ ~ ~
" g ~ g ~ ~ , , , 0 ,
, f ~ ~ ~ " z >
i . , .
.
I
.
, ~ ! !
I . iI ~
" 8" ~ ~ l '- '- '- '- '- '-
. ~ " iii ~
, . , . .
.
.
<
! I 0 . I I r
1 . ! ,
. ~
!
I " ! . .
! & I I .
. ! I > > j
. I ! i
! u !
. j R ~ > .
, l . . ~
.
, u <
0 0 g
u j J I
. i
t '- I . u
. J . J
.. j ~ I
J , . J
, . .
I . ,
. j
. N . ~
~ . . ~ ~ .
. ,
. , ffi ffi .
. . . 3 0 ~
~ , ~ ~ <
. ~
0 > ffi
. ; g
u . . g , I
~ ~ ~ ~ ~ 0
. < 0 0 .
. N
. - " . . ~
.
iil.!
}
~
~
~
[
Februalyl6,201O
.1
Mr. Tom Chmelik, P.E:
Principal Project M~nllger
ColiierCoUllty Public Utilities Division
3301E. Tamiami Trail, Bldg: H, 3rd Floor
. :Naples, Florida 34112 .:
Re: Recommendation of A ward - Cardinal Contractors, Inc.
. .. ,'.,'" '.'. ':.: .......
NCRWTP - Degasifier and Odor Control Ilxpansion, Bid 10;5423
. ..
. Dear Mr. Chmelik: .
Eight bids were received on Feb"uary ~, 2010 for the referenced project. Cardinal Contractors, Inc. was the
apparent low bidder witti a Total Lump SUIl1Bid amount or'$2,904,563.00. Mitchell'& Stark Constructi.on
Co., Inc. submitted the apparent second low bid of$3,116,416. These bid amounts do not inclnde Bid.
Altel11ate Item No.2.
. The excellentbid prices received are a:reflection ofthe number of bidders competing in an' extremely'
comp.etitive bidding climate. The original Engineer's Estimate of $5,600,000 was made hi febmary 2009
when stimulus money was ~n.ticipated to increase constructio!l activity and reduce contractor competition.
'That did'not occur. To improve co'mpetition, an additional vendor was added for the degasification and odor
.controi equipment. As a result of value engineering activities, deductive alternates were added to allow for
. fiberglass-only vessels versus' fibe,'glass-PVC composite' vessels'. All ofthese changes and the omission of .
Item 2 of the Bid Tabulationresulted in a revised Engineer's Estimate ~f$3,933,000. . .
Cardinal Contl'lictors, Inc. and Mitcheil & Stark Consirnction Co., Inc. have both completed projects for the
County and have perfonned acceptably. Based on our:review of the bids and knowledge of these Contractor's'
. . qualifications, vie recommend that the construction contract for the referenced project be ,,,yarded to'the .
apparent qualified low bidder. . .
If yim have any questions, please contact us.
Si!1cerely, . .
HDR Engineering, Inc.
'~{Jp-'
. Project Mimager
. HOR En.gln..rfl1.;Inc" '.
5426 Bay Center
Drive. Suite 400
Tampa, FL.. 33609
Pho'ne: 813-282.2300
Fax: 813.282-2430
www.hdrlnc.com
uo~
o~~
0_
,"0
,,~
N~
E c:-'"
"'roO)
~:JCtI
ro~CL
".0
,,'"
",LL
If
N
0
0
- ...
...
0 >=
Z ~
-
"
..
.~
<>.
...
-
..
'"
1!:
IS
...
5
'.:!
IS
~
1!:
IS
...
5
'.:!
IS
1:
IS
1!:
IS
':!
IS
'"
5
~
B
...
5
'"
5
~
5
B
...
5
'"
~
<1
1:
IS
..
"
"
,!!!
ii.
E
o
<.>
'0
~
-
"
o
<.>
~
o
'C
o
'C
"
nl
!2
iii
"
CJ
::l
~
..
Q
Q
N
~
iIi
E >- "
nl Z :5
z w 0
- > ., ;;
" w u ~ ~
.. " .,
.- ~ tl
2 - ~
.. .. 12
<>. " '~ c
8 e 0
"
.. 0
'"
~
;;
'"
>=
-
~
.s
nl
3:
'C
~
III
'E
u:
<>.
~t>
a:.e.
<.> 2
z<>.
~i
~ os.
U"
2.
O .! o1J
1lI~'1U
1: ~o e'
::I_~a.
~~;M
n:l.2 j?:~
Q !l'= "I
=r:t:~o
.E",Oi
't>Slii:s!N
eo1iilDO
"C(,)~:.r~
8€i1il~
c: o.r:.'O' C1l
o Z III ....QE
;::; IU 'S a.
g.si:LBi
1il~~li
15 g ~:a
lJ . a. E
(llM......O
'D~[iiu
~..,.- E 0:
!~~::;
....N~l:
..,,1-8