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HomeMy WebLinkAboutStaff Report 4.C 06/18/2018DATE: June 18, 2018 TO: FROM: Honorable Mayor and Members of the City Council through City Manager Dan St. John, F.ASCE — Director, Public Works and Utilities Jason Beatty, P.E. — Senior Civil Engineer, Public Works and Utilities SUBJECT: Resolution Approving Award of a Bid to Luxfer-GTM Technologies, LLC for Compressed Natural Gas Trailers 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 Bid to Luxfer-GTM Technologies, LLC for Compressed Natural Gas Trailers for the Biomass- to-Biofuel Project at the Ellis Creek Water Recycling Facility 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. 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 and is projected to be completed this summer. 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 Trailers (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 (HSW) feedstock from local food and beverage industries to produce additional bio -methane. The construction of a HSW receiving facility, bio -methane processing equipment, and CNG fueling station are the essence of the Biomass-to-Biofuel (B2B) Project. These phases of the project are also in construction and approximately 10% complete. An alternatives analysis of methods of conveying the CNG from the Ellis Creek Water Recycling Facility to the refuse hauler's facility at 1309 Dynamic St. was completed. Alternatives included mobile fueling with the subject trailers, constructing a pipeline from ECWRF to the refuse hauler's site, and injecting gas into PG&E's pipeline at ECWRF then pulling gas at 1309 Dynamic Street. Transporting the fuel via trailers was found to be the best alternative, when compared to constructing 4.5 miles of gas pipeline with additional costs and risks associated with the interconnection with PG&E pipelines. This action supports several of the City of Petaluma's goals in protecting the natural environment, including reducing greenhouse gases 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 This purchase order is for two CNG trailers with 500 diesel gallon equivalent capacity that can be towed behind a 1 -ton pick-up. One trailer would be connected to the gas processing station at ECWRF to be filled while the other trailer is connected to the time -fill fueling station that will distribute gas to the refuse trucks overnight. The trailers will be swapped out each morning, six days a week. Petaluma Refuse and Recycling followed by Recology provided input on the design of this project. A request for quotation was sent out as a public bid, and three known manufacturers of CNG trailers were notified of the bid opportunity. Only one quotation was provided by Luxfer-GTM Technologies, LLC from Berkeley, CA, at $361,001 for two trailers. Because of the innovative nature of this project a limited response was expected and the price for the trailers was determined to be reasonable and in-line with costs estimated from market research. FINANCIAL IMPACTS The cost of purchasing, operating, and maintaining these trailers was accounted for in the financial analysis of this project. The total 2017/18 CIP budget for the CNG Fueling Station, account C66501518, and the HSW Receiving Facility, account C66401728, is $13,434,000 with $3,000,000 in funding for the CNG Fueling Station, including these trailers, 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 2 Attachment 1 RESOLUTION APPROVING AWARD OF A BID TO LUXFER-GTM TECHNOLOGIES, LLC FOR COMPRESSED NATURAL GAS TRAILERS 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 (132B) 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, mobile fueling was determined to be the best alternative for transpol ting gas from ECWRF to the City's franchised refuse hauler's facility; and WHEREAS, a request for quotation for two (2) Compressed Natural Gas (CNG) trailers was publicly bid on May 17, 2018, and one (1) bid was received on May 30, 2018 in accordance with applicable law; and WHEREAS, Luxfer-GTM Technologies, LLC provided the only responsible bid for the CNG trailers; and WHEREAS, due to the advanced technology needed, the low amount of bidders is to be expected and it is recommended the City award of the bid to Luxfer-GTM Technologies, LLC for two (2) CNG trailers for the 132B 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 the bid to Luxfer-GTM Technologies, LLC for two (2) CNG trailers for the 132B Project at ECWRF for an amount not to exceed $361,001. CNG FUELING STATION ELLIS CREEK LOCATION MAP PROJECT SI Attachment 2 Date :January 23, 2017 City of Petaluma PROJECT SITE W E Public Works and Utilities A - Department X855 4