HomeMy WebLinkAboutStaff Report 4.E 12/18/2017Agenda Item #4.E
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DATE: December 18, 2017
TO: Honorable Mayor and Members of the City Council through City Manager
FROM: Da . �J, ASCE — Director, Public Works and Utilities
Jason Beatty, P.E. — Senior Civil Engineer
SUBJECT: Resolution Authorizing Award of Contract for the Biomass to BioFuel Project
RECOMMENDATION
It is recommended that the City Council adopt the attached Resolution Authorizing Award of
Contract for the Biomass to BioFuel (13213) Project.
BACKGROUND
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 of early 2018.
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 is intended to 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 13213 Project.
This contract incorporates two wastewater capital improvement projects, the CNG Fueling
Station — C66501518 and Ellis Creek High Strength Waste Facilities — C66401728. These
projects were originally planned to be executed sequentially, but time constraints on the CEC
grant and economy of scale efficiencies point to the need for both construction phases to be
executed simultaneously.
This action supports several of the City of Petaluma's goals in protecting the natural
environment, including reducing GHGs and reliance on fossil fuel, and establishing a sustainable
local economy that meets the needs of the community's residents and employers as outlined in
the General Plan, including:
Goal 4 -G -3: Air Quality— Improving air quality and meeting all Federal and State ambient air
quality standards and goals by reducing the generation of air pollutants from stationary and
mobile sources;
Goal 4 -G -4: Energy— Reducing reliance on non - renewable energy sources;
Goal 4 -G -6: Greenhouse Gas Emissions — Reducing the contribution to greenhouse gases from
existing sources and minimizing the contribution of greenhouse gases from new construction and
sources; and
Goal 9 -P -1 Economic Vitality and Opportunity — Retain and attract `basic' economic activities
that bring dollars into the local economy by exporting products and services.
DISCUSSION
Contract documents were prepared by consulting engineers Carollo Inc. and Kennedy Jenks, and
a Notice Inviting Bids was issued on September 26, 2017. On November 16, 2017, five bids
were received as summarized below. The one bid alternate, Bid Alternate A, is to replace the
existing wet polymer system used for dewatering bio- solids with a dry polymer system.
Name of Bidder I Base Bid Total I Bid Alt A
Myers & Sons Construction, LP*
$8,272,100
$686,000
Pacific Infrastructure Corp.
$8,974,000
$524,000
Western Water Constructors, Inc.
$8,980,000
$770,000
Mountain Cascade, Inc.
$9,206,082
$290,000
C. Overaa & Company
$9,498,000
$290,000
Engineer's Estimate
$7,841,000
$ 610,000
* Lowest Responsible Bidder
Bids were ranked in accordance with the specifications by the base bid amount. The lowest
responsible bidder, Myers & Sons Construction, has performed similar work for Linda County
Water Department Wastewater Treatment Plant, South County Regional Wastewater Authority,
and County of Sacramento. Staff verified that Myers & Sons Construction possesses the required
Class A California Contractor's License, number 944155, which expires on March 31, 2018,
which is appropriate for the work. The bid alternate is not recommended based on recent pilot
testing of the wet polymer system, which showed uncertainty in the performance of the polymer.
The change to a dry polymer system may be evaluated again in the future once the high strength
waste and biogas process is up and running and the new biosolids characteristics have stabilized.
Construction is scheduled to begin in January 2018 and will continue for 240 working days,
contingent upon weather conditions. Construction management will be conducted by City staff
with assistance from Carollo Engineers and Kennedy /Jenks Consultants, the project's design
engineers. A third party consultant will provide support for geotechnical and special testing
during construction.
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It is recommended that the City Council authorize the City Manager to execute a contract for the
13213 Project with the apparent low bidder, Myers & Sons Construction, for the Base Bid Total of
$ 8,272,100.
FINANCIAL IMPACTS
The proposed action will not cause any unanticipated negative impact on the existing CIP
budget. Based on the bids and allowing for a reasonable contingency, it appears that, combined,
the projects will be substantially under budget. The projects, CNG Fueling Station — C66501518
and Ellis Creek High Strength Waste Facilities — C66401728, are funded primarily with Waste
Water Capital funds with a $3,000,000 grant from the California Energy Commission to be
applied toward the CNG Fueling Station.
Waste Water Capital funds will be reallocated from the High Strength Waste project to the CNG
Fueling Station Project and unused funds will be returned to the appropriate account for future
projects.
CIP Project Budget (Dollars in $000)
Total Project
Budget
Revised Project
Budget
CNG Fueling Station — C66501815
$ 5,915
$ 7,447
Ellis Creek High Strength Waste
Facilities — C66401728
$ 8,592
$ 5,987
Total Funds
$14,507
$13,434
The below is a more detailed breakdown of the projects' revised budgets following award:
CNG Fueling Station
C66501518
Uses (Dollars in $000)
Total Project
Budget
Revised Project
Budget
Planning/Environmental
$ 70
$ 45
Land/Easements
-
-
Design
$1,055
$ 590
Legal Services
-
-
Administration
-
-
Construction Contracts
$3,690
$5,488
Construction Management
$ 367
$ 675
Contingency
$ 599
$ 599
CIP Overheads
$ 135
$ 50
Total Uses
$5,915
$7,447
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Sources (Dollars in $000)
Total Project
Budget
Revised Project
Budget
California Energy Comma Grant
$3,000
$3,000
Waste Water Capital
$2,915
$4,447
Total Funds
$5,915
$7,447
Note: City staff salary and benefits costs are included in appropriate project
phases for the project, and owner - supplied equipment costs are included in construction budgets.
Ellis Creek High Strength Waste Facilities
C66401728
Uses (Dollars in $000)
Total Project
Budget
Revised Project
Budget
Planning/Environmental
$ 20
$ 20
Land/Easements
-
-
Design
$ 907
$ 817
Legal Services
-
-
Administration
-
-
Construction Contracts
$6,200
$3,965
Construction Management
$ 400
$ 490
Contingency
$ 930
$ 615
CIP Overheads
$ 135
$ 80
Total Uses
$8,592
$5,987
Sources (Dollars in $000)
Total Project
Budget
Revised Project
Budget
Waste Water Capital
$8,592
$5,987
Total Funds
$8,592
$5,987
Note: City staff salary and benefits costs are included to appropriate project
phases for the project and owner - supplied equipment costs are included in construction budgets.
ATTACHMENTS
1. Resolution
2. Location Map
Attachment 1
RESOLUTION AUTHORIZING AWARD OF CONTRACT
FOR THE BIOMASS TO BIOFUEL (B2B) PROJECT
WHEREAS, City staff has prepared construction bid documents and advertised for
construction of the Biomass to Biofuel (132B) Project, which consists of CNG Fueling Station,
Project Number 066501518 and Ellis Creek High Strength Waste Facilities, Project 066401728,
( "the Project "); and
WHEREAS, in accordance with the City of Petaluma Charter and Municipal Code,
California Public Contract Code Section 20162 and other applicable law, City staff solicited bids
for the Project; and
WHEREAS, the Project was bid on September 26, 2017, and five bids were received and
opened on November 16, 2017 in accordance with applicable law; and
WHEREAS, the lowest responsible bid for the base bid was submitted by Myers & Sons
Construction, LP from Sacramento, California for $8,272,100; and
WHEREAS, staff recommends the construction contract be awarded for the base bid for
a total contract amount of $8,272,100; and
WHEREAS, staff has determined that the Contractor's bid is responsive and satisfies the
bidding requirements for the Project; and
WHEREAS, staff has verified that Myers & Sons Construction, LP possesses a valid
California Contractor's License, Class A, number 944155 that is acceptable for the Project; and
WHEREAS, on January 4, 2016, the City Council, by Resolution No. 2016 -007 N.C.S.
certified the Water Recycling Facility and River Access Improvements EIR January 2016
Addendum, approved the revisions to the project, and made findings of fact.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of
Petaluma hereby:
1. Approves the Transfers of $1,532,000 and $1,073,000 from Ellis Creek High Strength
Waste Facilities, Project No. C66401728 to CNG Fueling Station, Project No.
066501518 and Waste Water Capital accounts, respectively.
2. Approves the revised project budgets for the Ellis Creek High Strength Waste Facilities,
Project No. C66401728 and the CNG Fueling Station, Project No. C66501518.
3. In accordance with the City of Petaluma Charter and Municipal Code, California Public
Contract Code Section 20162 and other applicable law, waives any and all non-
conformance in the bid of Contractor for the 13213 Project, Project Numbers C66401728
and C66501518 and finds the bid of $8,272,100 to be the lowest, responsive bid and
further finds that Myers & Sons Construction, LP is the lowest responsible bidder.
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4. Awards the contract for the B2B Project, Project Numbers 066401728 and 066501518 to
Myers & Sons Construction, LP in the amount of $8,272,000, the amount of the lowest
responsive base bid, conditioned on Myers & Sons Construction, LP timely executing the
project contract and submitting all required documents, including but not limited to,
executed bonds, certificates of insurance, and endorsements, in accordance with the
project bid documents.
5. Approves a construction contract contingency of $1,214,000.
6. Directs staff to issue a notice of award to Myers & Sons Construction, LP.
7. Authorizes and directs the City Manager to execute the project contract on behalf of the
City of Petaluma upon timely submission by Myers & Sons Construction, LP of the signed
project contract and all other required documents, including but not limited to, executed
bonds, certificates of insurance, and endorsements, in accordance with the project bid
documents.
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BIOMASS TO BIOFUEL (13213) PROJECT
LOCATION MAP
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PROJECT SIT
Attachment 2
Date: December 4, 2017
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• City of Petaluma �� L U
PROJECT SITE
Public Works and Utilities
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