REPORT TO THE CITY COUNCIL
November 3, 2016
FROM: THOMAS C. ESQUEDA, Director
Department of Public Utilities
THROUGH: KEVIN L. NORGAARD, PE, Supervising Professional Engineer
Department of Public Utilities - Wastewater Management Division
BY: SARAH AGUILA, Senior Engineering Technician
Department of Public Utilities - Wastewater Management Division
SUBJECT
Title
Actions pertaining to Digester #2 Rehabilitation at the Regional Wastewater Reclamation Facility (Bid File 3470) (Council District 3)
1. Adopt a finding if Categorical Exemption of Class 1, pursuant to Section 15301(b) (Existing facilities) of the California Environmental Quality Act Guidelines
2 .***RESOLUTION - 23rd amendment to Annual Appropriation Resolution (AAR) No. 2016-118
appropriating $630,000 for Rehabilitation of Digester #2 at the Regional Wastewater Reclamation
Facility (Requires 5 affirmative votes)
3. Award a $543,070 contract to F.D. Thomas, Inc., of Central Point, Oregon
Body
RECOMMENDATION
Staff recommends the City Council adopt a finding of Class 1 categorical exemption, pursuant to Section 15301(b) (existing facilities) of the California Environmental Quality Act (CEQA) Guidelines for Digester #2 Rehabilitation at the Regional Wastewater Reclamation Facility (Facility), adopt the 23rd AAR No. 2016-118 appropriating $630,000 for Rehabilitation of Digester #2 at the Facility, and award a contract in the amount of $543,070 to F.D. Thomas, Inc., of Central Point, Oregon, for Digester #2 Rehabilitation at the Facility.
EXECUTIVE SUMMARY
During routine inspections, it was discovered that Digester #2 at the Facility has failing coating causing it to leak methane into the atmosphere. This construction contract will replace the coatings and seal the leaks. The Department of Public Utilities, Wastewater Management Division is seeking to award a contract to F.D. Thomas, Inc. for the work and an Annual Appropriation Resolution to allocate the necessary funding.
BACKGROUND
Digester #2 is one of thirteen anaerobic digesters at the Regional Wastewater Reclamation Facility. The digesters are used in treatment of the solids generated at the Facility to eliminate pathogens and volatile organic compounds. During inspection of Digester #2, it was discovered that gasses were escaping through cracks in the roof of the digester. Leaking methane to the atmosphere is against the San Joaquin Valley Air Pollution Control District rules. Also methane is highly flammable and leaking methane is a potential fire/explosion hazard. The work of this project includes the removal and replacement of the failing interior coatings. The project also includes application of a ferric corrosion eliminator and a new roof coating.
Plans and specifications were prepared for the project. A Notice Inviting Bids was published on August 22, 2016, and posted on the City’s website. The specifications were distributed to eight prospective bidders, and faxed to nine Builder Exchanges. The Bid will expire November 23, 2016, 64 days after the September 20, 2016 bid opening. Three sealed bid proposals were received and publicly opened on September 20, 2016. The bid proposal prices were $543,070, $568,420- and $690,200.
F.D. Thomas, Inc. was the lowest responsive and responsible bidder with a submitted bid of $543,070. Staff determination was posted on the City’s website. Staff recommends that the City Council award a construction contact in the amount of $543,070 to F.D. Thomas, Inc. as the lowest responsive and responsible bidder. Their bid price is 8.6% above the original Engineer’s Estimate of $500,000.
ENVIRONMENTAL FINDINGS
Staff has performed a preliminary environmental assessment for Digester #2 Rehabilitation at the Facility and has determined that it falls within Class 1 Categorical Exemption set forth in the California Environmental Quality Act (CEQA) Guidelines, Section 15301(b) (existing facilities) because this contract involves restoration or rehabilitation of deteriorated or damaged structures, facilities, or mechanical equipment. Furthermore, staff has determined that none of the exceptions to Categorical Exemptions set for in the CEQA Guidelines, Section 15300.0 apply to this project.
LOCAL PREFERENCE
Local preference was not implemented because the non-local bidder exceeded the allowable preference.
FISCAL IMPACT
Funds were not budgeted for this project in FY17. This project is an emergency repair due to the discovery of the leaking methane gas. This construction project has no impact on the General Fund and is located in Council District 3. Funds in the amount of $630,000 are available in the Sewer Enterprise Fund 40501: the AAR is necessary to allocate funds for the project.
Attachments:
23rd AAR No. 2016-118
Bid Evaluation & Fiscal Impact Statement
Vicinity Map
Contract