REPORT TO THE CITY COUNCIL
January 17, 2019
FROM: MICHAEL CARBAJAL, Director
Department of Public Utilities
THROUGH: DEJAN PAVIC, Supervising Professional Engineer
Department of Public Utilities - Utilities Planning & Engineering
BY: MATTHEW BULLIS, Professional Engineer
Department of Public Utilities - Utilities Planning & Engineering
SUBJECT
Title
Approve a Consultant Services Agreement with Carollo Engineers, Inc., for an amount not to exceed $906,350 for preparation of engineering design of a new Waste Gas Flare unit for the Fresno/Clovis Regional Wastewater Reclamation Facility (Citywide)
Body
RECOMMENDATION
Staff recommends that City Council approve a Consultant Services Agreement with Carollo Engineers, Inc. (Carollo), for an amount of $906,350 for the design of a new Waste Gas Flare unit for the Fresno/Clovis Regional Wastewater Reclamation Facility (RWRF) and authorize the Director of Public Utilities, or designee, to sign the contract on behalf of the City of Fresno (City).
EXECUTIVE SUMMARY
The Department of Public Utilities (DPU), Wastewater Management Division, is seeking approval of a Professional Consultant Services Agreement with Carollo Engineers, Inc., to prepare project plans for design of a new Waste Gas Flare unit for the RWRF. The RWRF currently uses a 1,100 Standard Cubic Feet Per Minute (SCFM) flare to burn excess waste gas generated from the digester units. However, since 2017 gas volume has exceeded the flare’s burn capacity. To comply with air pollution permit requirements and to meet RWRF plant operational needs a temporary rental gas flare has been placed in service. Use of both units allows the plant to comply with San Joaquin Valley Air Pollution Control District (Air District) permit requirements; however, a permanent solution is needed. Carollo would provide the City with new flare design under this agreement.
BACKGROUND
Federal regulations of air pollution vest authority in the local Air District to set conditions on air pollution generators. The City’s continued population growth has resulted in a steady increase of waste gas production at the RWRF, which in turn increases the need for larger capacity flare units to burn excess gas. While the RWRF utilizes an existing 1,100 SCFM flare, an additional 3,200 SCFM flare is needed to meet current demand. Use of both flare units will increase overall flare capacity, improve system redundancy and meet Air District permit requirements. The new flare will be sized to accommodate future waste gas flow increases through year 2030 and will have the ability to operate separately or in tandem with the existing flare.
On June 20, 2017, a Request for Proposal (RFP) was distributed to solicit outside consultants to provide for design-build services for a new waste gas flare unit at the RWRF. Under the design-build scenario the engineering firms and contractors combine resources to design and build the flare as a package contract. No bids were received for this work. Responses from vendors indicated that the project was complex and contained sufficient risk that the design-build teams elected to not bid the work. The contractors indicated they would prefer to bid on standard construction contracts only, separating the design work from the construction activities. Upon conclusion of that RFP, staff was instructed to proceed with a separate RFP to secure an engineering firm to provide the requisite flare design.
On October 20, 2017, a Request for Qualification (RFQ) for the design of the new Waste Gas Flare was posted on the City’s Planet Bids website and an advertisement was placed in the local Business Journal. Statements of Qualifications (SOQ) were received from one consultant, Carollo Engineers, Inc. This project was not budgeted in Fiscal Year 2018; therefore the RFQ was cancelled until Fiscal Year 2019.
On July 23, 2018, to generate project interest, an advance noticing was conducted. This included placing a notice on the City’s Planet Bids website and emails were sent to 45 engineering firms who are on an engineering list maintained by the Department of Public Utilities.
On August 8, 2018, an RFQ advertisement was posted on the City’s Planet Bids website, placed in the local Business Journal, and notices were again sent to 45 engineering firms. An SOQ was received from one consultant, Carollo Engineers, Inc. Upon evaluation of the SOQ documentation, Carollo Engineers, Inc., was determined to be qualified to perform the work and was selected to provide the requested services. Staff negotiated a professional services fee of $906,350 for the listed scope of work. Upon approval by the City Council, the agreement will be executed by the Director of Public Utilities, or designee, who has been delegated this authority by the City Manager.
ENVIRONMENTAL FINDINGS
By the definition provided in the California Environmental Quality Act (CEQA) Guidelines Section 15378 the award of this contract does not qualify as a “project” for the purpose of CEQA.
LOCAL PREFERENCE
Local preference was not applied as only one bid was submitted.
FISCAL IMPACT
There is no impact the General Fund. This project is identified in the five-year Capital Improvement Plan. Funds for this project are budgeted in the Fiscal Year 2019 Wastewater Enterprise Fund No. 53302.
Attachment: Consultant Services Agreement