REPORT TO THE CITY COUNCIL
June 16, 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: ORLANDO M. GONZALEZ, PE, Professional Engineer
Department of Public Utilities - Wastewater Management Division
SUBJECT
Title
Actions pertaining to construction of the Headworks Odor Control System Replacement and Relocation at the Regional Wastewater Reclamation Facility (RWRF) (Bid File 3464) (Council District 3)
1. ***RESOLUTION - 53rd amendment to the Annual Appropriation Resolution No. 2015-104 appropriating $1,570,500 (Requires 5 affirmative votes)
2. Adopt a finding of Categorical Exemption of Class 3, pursuant to Section 15303 of the California Environmental Quality Act Guidelines
3. Award a Construction Contract to Hal Hays Construction Inc. of Riverside, California in the amount of $8,296,900
Body
RECOMMENDATION
Staff recommends that City Council appropriate the project funding for the Odor Control System Replacement and Relocation, adopt a finding of Class 1 categorical exemption, pursuant to Section 15301 (d) (Existing facilities) of the California Environmental Quality Act (CEQA) Guidelines and award a construction contract the amount of $8,296,900 to Hal Hays Construction Inc. of Riverside, California.
EXECUTIVE SUMMARY
The Department of Public Utilities Wastewater Management Division is seeking to award a construction contract for the construction of the Headworks Odor Control System Replacement and Relocation. The existing odor control system in the Headworks Facility has passed its useful life and as a result, the system has become inefficient and costly to maintain. Staff recommends the City Council award the construction contract in the amount of $8,296,900 to Hal Hays Construction Inc. of Riverside, California. The new odor control system will enable the RWRF to reduce operation, maintenance and chemical costs.
BACKGROUND
The existing Odor Control System for the Headworks facility at the RWRF consists of 3 chemical scrubbers. Each scrubber processes approximately 30,000 cubic feet of air per minute (CFM) for a total of 90,000 CFM. These scrubbers are costly to operate and maintain. The scrubbers use costly chemicals to scrub the air which is then returned to the sewer system for processing. These scrubbers are more than 20 years old and the 25 foot tall 12 foot diameter fiberglass containment vessels are beginning to fail and must be replaced. The requirements for the replacement of these systems are set forth in the San Joaquin Valley Air Pollution Control District rules. The rules state that emissions from the Headworks Facility must comply with Volatile Organic Chemical emissions limits per the Facility permit.
The existing Odor Control System ductwork has been recently upgraded to chemical resistant materials therefore this project scope will only be for the replacement of the OCU’s. It was determined that the 3 chemical scrubber systems should be replaced with two new ecofriendly systems. In an effort to expedite and reduce construction costs, the two new odor control systems were bid and awarded as two separate pre-purchase and novation agreements. The first systems is a carbon filter system which will treat 30,000 CFM the cleaner air which is exhausted from the space conditioned for operator safety. The second is a larger more expensive biological system for the 60,000 CFM of air being exhausted from the spaces where raw wastewater is being conveyed.
The new OCU system will not increase capacity; however it will provide an environmentally friendly and cost efficient system. The construction will begin in fall 2016. Because the new environmentally friendly technology being installed has a larger foot print, the construction project will require two duct bridges from the existing facility across a drive to an empty field where the new systems will be installed.
The design consultant prepared schematic drawings and specifications for the replacement Odor Control Systems. The specifications required bidders to comply with specific performance and a high level experience requirement. On April 11, 2016, the Headworks Odor Control System Replacement and Relocation was advertised. The specifications were distributed to fourteen prospective bidders, and nine Builder Exchanges. The public bid opening was on May 17, 2016. Seven bids were received. The bid proposal prices range from $8,296,900 to $10,263,630.97.
Staff has determined Hal Hays Construction Inc. of Riverside, California, is the lowest responsive and responsible bidder with a submitted bid of $8,296,900. Its bid price is 0.03% below the original Engineer’s Estimate of $8,300,000. Staff determination was posted on the City Website on May 19, 2016.
The City Attorney’s Office has reviewed and approved the construction contract as to form.
ENVIRONMENTAL FINDINGS
Staff has performed a preliminary environmental assessment for the Headworks Odor Control System Replacement and Relocation and has determined that it falls within Class 3 Categorical Exemption set forth in CEQA Guidelines, Section 15303 because the project consists of the installation of new OCU facilities replacing outdated facilities within an existing, developed industrial site. The addition of the new facility will not result in the parcel containing more structures than are allowable. Furthermore, none of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines, Section 15300.2 apply to this project.
LOCAL PREFERENCE
Local preference was not implemented. The lowest bidders were not local business; in addition, the local contractor that bid the project was over $700,000 higher than the lowest bid.
FISCAL IMPACT
The project is identified in the five year capital improvement plan and included in the adopted five year rate model. Funds in the amount of $7,000,000 for the installation and procurement of the Odor Control System Replacement project are budgeted and will be appropriated from the 2016 Sewer Enterprise Fund No. 40501. The fiscal impact of this contract will be $8,646,900.
Attachments:
53rd AAR No. 2015-104
Bid Evaluation
Fiscal Impact Statement
Conditional Use Permit
Headworks Odor Control System Replacement and Relocation Construction Contract