REPORT TO THE CITY COUNCIL
October 8, 2015
FROM: THOMAS C. ESQUEDA, Director
Department of Public Utilities
BY: KEVIN L. NORGAARD, PE, Supervising Professional Engineer
Department of Public Utilities - Wastewater Management Division
SUBJECT
Title
Reject all proposals received for the 2-Megawatt Solar Energy Facility at the Fresno-Clovis Regional Wastewater Reclamation Facility (Bid File 3380) (Council District 3)
Body
RECOMMENDATION
Staff recommends the City Council reject all proposals received for the 2-Megawatt (MW) Solar Energy Facility at the Fresno-Clovis Regional Wastewater Reclamation Facility (RWRF).
EXECUTIVE SUMMARY
The Department of Public Utilities (DPU), Wastewater Management Division is seeking to reject all proposals received for the 2- MW Solar Energy Facility at the Fresno-Clovis Regional Wastewater Reclamation Facility. A single proposal was received. The proposal was 13 percent above the engineer’s estimate.
BACKGROUND
In August 2010 (and amended in April 2012), the Fresno City Council approved a consultant services agreement with Parsons Water and Infrastructure Inc. to initiate the planning, permitting, and design of Phase 1 of the Tertiary Treatment and Disinfection Facility (TTDF) Project and the 2-MW Solar Energy Facility, located at the RWRF. The TTDF is currently under construction and is approximately 50 percent complete.
In conjunction with the TTDF, a new 2-MW Solar Energy Facility was proposed to be constructed to help counter the increased electrical demand. The amended contract provided for the preparation of a “Design/Build Request for Proposal Package” for a new 2-MW Solar Energy Facility, amending State Revolving Fund (SRF) application package, and engineering support during proposal and construction phases. A State Revolving Fund loan with a rate of 1.7 percent has been obtained for this design/build contract which anticipated $14,325,000 as the price.
The Design/Build Request for Proposal was advertised April 1, 2015. Specification packages were distributed to eleven prospective proposers. The public opening of proposals was on May 5, 2015. A single proposal was received. Outreach was performed by the City of Fresno’s Purchasing Department to determine why only one proposal was submitted. Reasons ranged from strictness of the requirements of the Request for Proposal to not having adequate resources to cover a project of this size. The proposal has been evaluated by the Purchasing Division and has been deemed to be responsible and responsive. The proposal has also been evaluated for technical compliance with the specifications by the City’s consultant, an Evaluation Committee, and the City of Fresno Attorney’s Office and found to meet the requirements. However, it has been decided to reject all proposals and re-advertise the Request for Proposals. Staff is in the process of revising the technical proposal documents and Proposer Qualification requirements to help provide a more competitive proposal package when advertised.
ENVIRONMENTAL FINDINGS
By the definition provided in the California Environmental Quality Act (CEQA) Guidelines Section 15378, the rejection of all bids does not qualify as a “project”, for the purposes of CEQA.
LOCAL PREFERENCE
The local preference did not affect the award of this project because DPU, Wastewater Management Division is seeking to reject all proposals received for the 2-MW Solar Energy Facility.
FISCAL IMPACT
The rejection of all proposals will result in no financial impact to the General Fund or Sewer Enterprise Fund. This project is identified in the five-year capital improvement plan and included in the five year financial model and will not impact the General Fund. Funds in the amount of $14,325,000 were budgeted in the FY15 Sewer Enterprise Fund No. 40527.
Attachment:
Bid Evaluation