HomeMy WebLinkAboutStaff Report 5.E 07/17/2017Agenda Item #5.E
DATE: July 17, 2017
TO: Honorable Mayor and Members of the City Council through City Manager
FROM: DaSt.SCE — Director, Public Works and Utilities
Larry iJy, P.E.— Deputy Director, Public Works and Utilities
SUBJECT: Resolution Approving Award of Purchase Order to Unison Solutions, Inc. for
Bio -Methane Processing Equipment for the Biomass-to-Biofuel Project at the
Ellis Creek Water Recycling Facility
RECOMMENDATION
It is recommended that the City Council adopt the attached Resolution Approving Award of a
Purchase Order to Unison Solutions, Inc. for Bio -Methane Processing Equipment for the
Biomass-to-Biofuel (B2B) Project at the Ellis Creek Water Recycling Facility.
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The City's Ellis Creek Water Recycling Facility (ECWRF) has been in operation since early
2009 and currently processes an average dry weather daily flow of 4.8 million gallons per day.
As described in previous Council meetings, wastewater loading increases and the need for
process redundancy require the City to add a second anaerobic digester and other ancillary
improvements. The second anaerobic digester at the ECWRF is currently under construction
with a projected completion in 2017.
On January 4, 2016, the City accepted a $3 million grant from the California Energy
Commission (CEC) to transform methane gas produced in the anaerobic digestion process into
compressed natural gas (CNG), which will be used to fuel City refuse collection vehicles. With
the addition of a second digester, ECWRF will have sufficient excess capacity to receive high
strength waste feedstock from local food and beverage industries to produce additional bio -
methane. The construction of a high strength waste receiving facility, bio -methane processing
equipment, and CNG fueling station are the essence of the Biomass-to-Biofuel (B2B) Project.
The designs for these parts of the project are currently underway with 90% design submittals
received by City staff.
As outlined in the attached Resolution N.C.S. 2017-021, approved by City Council on February
6, 2017, the innovative gas treatment system manufactured by Unison Solutions, Inc. is the only
known biogas treatment system that has a proven track record to successfully produce natural gas
at the relatively low biogas flow rates, 100 cubic feet per minute or less, needed for the B2B
project. This previous Resolution authorized City staff to develop the documents necessary to
enter into a sole source purchase contract with Unison Solutions, Inc., and bring the award of the
purchase contract forward for City Council approval.
DISCUSSION
Negotiations with Unison Solutions, Inc. to supply bio -methane processing equipment to meet
project specifications as outlined by the project designer, Kennedy/Jenks Consultants were
conducted. A Request for Quotation was issued on June 22, 2017 and a quotation and proposal
from Unison that met the project requirements was received on June 22, 2017. The purchase
quotation for the bio -methane processing equipment is $873,987, which is within 5% of the
engineer's estimate.
FINANCIAL IMPACTS
The total 2017/18 CIP budget for the CNG Fueling Station, account C66501518, is $5,915,000
with $3,000,000 in funding for this project being provided through a CEC grant. The proposed
action is currently budgeted and therefore will not cause any unanticipated fiscal impacts. No
General Funds will be expended on this action.
ATTACHMENTS
1. Resolution
2. Location Map
3. Resolution No. 2017-021 N.C.S. —Exhibit A
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Attachment 1
RESOLUTION APPROVING AWARD OF PURCHASE ORDER
TO UNISON SOLUTIONS, INC. FOR BIO -METHANE PROCESSING
EQUIPMENT FOR THE BIOMASS-TO-BIOFUEL PROJECT AT THE
ELLIS CREEK WATER RECYCLING FACILTY
WHEREAS, the City of Petaluma, in-line with original objectives of the Ellis Creek Water
Recycling Facility (ECWRF) and the General Plan 2025, wishes to complete the Biomass-to-
Biofuel (13213) Project which would modify the ECWRF to accept High Strength Waste from
local food and beverage industries and convert it to compressed natural gas for use in the City's
refuse collection vehicles; and
WHEREAS, the California Energy Commission, on March 9, 2016, awarded a $3 million grant
to the City of Petaluma to complete the 13213 Project; and
WHEREAS, the innovative gas treatment system manufactured by Unison Solutions, Inc. is the
only biogas treatment system that has a proven track record to successfully produce renewable
natural gas at the relatively low biogas flow rates needed for the 13213 Project; and
WHEREAS, Resolution N.C.S. 2017-021 authorized City staff to develop the documents to
necessary to enter into a purchase contract with Unison Solutions, Inc., and bring the award of
the purchase contract forward for City Council approval; and
WHEREAS, negotiations with Unison Solutions, Inc. to supply bio -methane processing
equipment to meet project specifications were conducted and an acceptable proposal from
Unison was received on June 22, 2017; and
WHEREAS, it is recommended the City award of a purchase Order to Unison Solutions, Inc. for
bio -methane processing equipment for the 13213 Project at the ECWRF.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Petaluma
hereby authorizes the City Manager to award a Purchase Order to Unison Solutions, Inc. for bio -
methane processing equipment for the 13213 Project at ECWRF for an amount not to exceed
$873,987.
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CNG FUELING STATION ELLIS CREEK
LOCATION MAP
Attachment 2
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Date :January 23, 2017
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City of Petaluma
PROJECT SATENV E Public Works and Utilities
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Attachment 3 - Exhibit A to Resolution
Resolution No. 2017-021 N.C.S.
of the City of Petaluma, California
RESOLUTION TO DISPENSE WITH FORMAL BID PER PUBLIC CONTRACT
CODE SECTION 3400, AND PETALUMA MUNICIPAL CODE SECTION 4.05.050
FOR ACQUISITION IN CONJUNCTION WITH THE BIOMASS-TO-BIOFUEL
PROJECT AT ELLIS CREEK WATER RECYCLING FACILITY
WHEREAS, California Public Contract Code Section 3400, subdivision (b), generally
prohibits state and local agencies and their officials from issuing bid specifications for public
works projects that limit bids to particular firms or designate items being acquired by brand
name, unless bidders are permitted to propose items equal to those specified by brand name; and
WHEREAS, Section 3400, subdivision (c) includes an exception that permits state and
local agencies and their officials to designate a material, product or service being procured by
brand or trade name in certain specified circumstances, including to obtain a necessary item that
is only available from one source; and
WHEREAS, for the exception in Section 3400, subdivision (c) to apply, the awarding
agency or its designee must make a finding that is described in the bid invitation or request for
proposals that a material, product or service is designated by brand or trade name for one of the
reasons permitted under that subdivision; and
WHEREAS, Section 4.04.050 of the Petaluma Municipal Code allows formal bidding
procedures to be dispensed with when the commodity can be obtained from only from one
vendor; and
WHEREAS, the common law recognizes a bidding exception for circumstances where
competitive bidding of public contracts otherwise required by statute may be excused, including
circumstances where the contract is such that competitive proposals would be unavailing or
would not produce an advantage, and the advertisement for competitive bid would thus be
undesirable, impractical, or impossible (Graydon v. Pasadena Redevelopment Agency (1980)
104 CA3d 631); and
WHEREAS, the Petaluma Biomass-to-Biofuel project requires a biogas treatment
system with the capability to remove contaminants in the biogas produced at the Ellis Creek
Water Recycling Facility to produce renewable natural gas that complies with Society of
Automotive Engineers Standards for Compressed Natural Gas Vehicle Fuel- SAE J1616; and
WHEREAS, producing vehicle fuel fiom biogas is a relatively new and innovative
approach, and based on this, the City was successful in winning a $3 million grant from the
California Energy Commission for the Petaluma Biomass-to-Biofuel project; and
WHEREAS, an innovative gas treatment system manufactured by Unison Solutions, Inc.
is the only known biogas treatment system that has a proven track record to successfully produce
RNG at the relatively low biogas flow rates, 100 efin or less, needed for the Petaluma Biomass-
to-Biofuel project; and
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Resolution No. 2017-021 N.C.S. Page 1
WHEREAS, the City included Unison Solutions, Inc, on its project team in its grant
application to the CEC as the vendor to furnish the gas treatment system; and
WHEREAS, staff has recommended that the City negotiate a sole source contract with
Unison Solutions, Inc, to furnish and install its biogas treatment system; and
WHEREAS, after negotiations with Unison Solutions Inc., the award of the contract will
be brought forth for City Council approval in a future resolution.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Petaluma
as follows:
1. The City Council finds in accordance with California Public Contract Code Section 3400,
subdivision (c), Section 4.04.050 of the Municipal Code, and the holding in Graydon v.
Pasadena Redevelopment Agency (1980) 104 CAM 631 that Unison Solutions, Inc. is the
only know manufacturer of gas treatment equipment that will meet the requirements of the
City's Petaluma Biomass-to-Biofuel project.
2. City Staff are hereby authorized and directed in accordance with California Public
Contract Code Section 3400 Section 4.04.050 of the Municipal Code, and the holding in
Graydon v. Pasadena Redevelopment Agency (1980) 104 CA3d 631 to develop
documents necessary to enter into a contract with Unison Solutions, Inc. to furnish and
install its biogas treatment system for the Petaluma Biomass-to-Biofuel project.
3. This resolution shall become effective upon its adoption.
4. If any section, subsection, sentence, clause, phrase or word of this resolution is for any
reason held to be unconstitutional, unlawful or otherwise invalid by a court of competent
jurisdiction or preempted by state legislation, such decision or legislation shall not affect
the validity of the remaining portions of this resolution. The City Council of the City of
Petaluma hereby declares that it would have adopted this resolution and each and all
provisions thereof irrespective of the fact that any one or more of said provisions be
declared unconstitutional, unlawful or otherwise invalid.
Under the power and authority conferred upon this Council by the Charter of said City.
REI+ERENCE : I hereby certify the foregoing Resolution was introduced and adopted by the Ali roved jos to
Council of the City of Petaluma at a Regular meeting on the 6`h day of February, form
2017, by the following vote; ( I/
City
AYES: Albertson, Vice Mayor Barrett, Mayor Glass, Healy, Kearney, King, Miller
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST:
City Clerk _Mayor
Resolution No. 2017-021 N.C.S.
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