REPORT TO THE CITY COUNCIL
October 20, 2016
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
Actions Pertaining to the Engineering Services to Evaluate Solids Digestion and High Strength Waste Handling Systems at the Fresno/Clovis Regional Wastewater Reclamation Facility (Council District 3)
1. ***RESOLUTION - 19th amendment to the Annual Appropriation Resolution No. 2016-118 appropriating $366,600 for engineering services to evaluate solids digestion and high strength waste systems (Requires 5 affirmative votes)
2. Award a professional engineering services contract for $351,600, with $10,000 contingency, to Black & Veatch Corporation, of Rancho Cordova, California
Body
RECOMMENDATION
Staff recommends the Council appropriate the project funding and approve the agreement award to Black & Veatch Corporation, for the Evaluation of solids digestion and handling of high strength waste (Waste) at the Fresno/Clovis Regional Wastewater Reclamation Facility (Facility).
EXECUTIVE SUMMARY
The City of Fresno has successfully operated the anaerobic digestion processes at the Facility for approximately sixty years. The purpose of this project is to ensure the Facility is optimizing three different interrelated processes; the digester gas production, solids destruction and Waste handling.
BACKGROUND
The Facility has successfully operated an anaerobic digestion process for approximately sixty years and power generation facility for many years. The gas generated by the anaerobic digestion process is currently conditioned to near pipeline quality and made available for use in the Facility power generating turbines, hot water boiler, or both. Under normal operating conditions at the Facility, the gas consumed far exceed the gas production. The excess gas consumed must be purchased from the PG&E pipeline. The purpose of this contract has four main parts. The first piece is a review of physical processes for efficiencies, second is the evaluation of regulations and trends for digestion, third, is the review of Waste handling and finally the development of projected quantities and characteristics of the waste streams. The consultant will then develop a report to include recommendations to increase gas production, reduce sludge hauling costs and keep up with regulatory trends. These projects will be prioritized and have preliminary budgetary cost estimates. This contract provides for several joint meetings with the two other consultants working on the overall project as detailed below.
Following Fresno Municipal Code Chapter 4, Article 1 and Administrative Order 6-19, the Department of Public Utilities notified in excess of one hundred consulting firms requesting a statement of qualification and project proposals. The Department received eight qualifications. Five separate consultants were interviewed on February 29, 2016. After reviewing the qualifications and information presented in the interview process it was decided to divide the overall project into three separate distinct pieces. These pieces were: the diversion of digester gas into the natural gas pipeline, the analysis of the most financially efficient technology of generating onsite electrical power, and finally the review and last the analysis of digester efficiencies and condition assessment. After reviewing all of the statement of qualifications and cost proposals, it was determined that Black and Veatch was the most qualified provide the most benefit for the City for the evaluation of solids digestion and Waste handling. A consultant services agreement has been negotiated in the amount of $351,600 and $10,000 contingency.
ENVIRONMENTAL FINDINGS
By the definition provided in the California Environmental Quality Act Guidelines (CEQA) Guidelines Section 15378 the award of these contracts does not qualify as a “project” for the purposes of CEQA.
LOCAL PREFERENCE
Local preference was not implemented because staff believes the number of local businesses is less than three.
FISCAL IMPACT
This consultant services contract has no impact to the General Fund and is located in Council District 3. This project was anticipated to be part of the larger “Regional Wastewater Reclamation Facilities Master Plan Update” originally budgeted in FY14. The planned outcome of this contract will be to develop a long term plan to optimize energy costs for the Facility. Funds in the amount of $366,600 are available in the Sewer Enterprise Fund 40501; the AAR is necessary to allocate the funds for the contract.
Attachments:
19th AAR No. 2016-118
Consultant Agreement
Fiscal Impact Statement
Vicinity Map