REPORT TO THE CITY COUNCIL September 27, 2018 FROM: MICHAEL CARBAJAL, Director Department of Public Utilities THROUGH: DEJAN PAVIC, Supervising Professional Engineer Department of Public Utilities - Utilities Planning & Engineering BY: RAUL GONZALEZ, Professional Engineer Department of Public Utilities - Utilities Planning & Engineering SUBJECT ..Title Actions pertaining to the Design of a New Central Boiler Plant at the Fresno/Clovis Regional Wastewater Reclamation Facility (Council District 3) 1. Award a consultant services agreement in the amount of $200,000 and a contingency of $10,000 to Lawrence Engineering Group, for professional engineering services for the Design of a New Central Boiler Plant at the Fresno/Clovis Regional Wastewater Reclamation Facility (Council District 3) 2. Authorize the Director of Public Utilities, or designee, to sign agreement on behalf of the City ..Body RECOMMENDATIONS Staff recommends the City Council award a consultant services agreement in the amount of $200,000 and a contingency of $10,000 to Lawrence Engineering Group, for the Design of a New Central Boiler Plant at the Fresno/Clovis Regional Wastewater Reclamation Facility (RWRF) and authorize the Director of Public Utilities, or designee, to sign agreement on behalf of the City. EXECUTIVE SUMMARY The Department of Public Utilities, Wastewater Management Division, seeks to design a new Central Boiler Plant at the RWRF. The existing boiler is near the end of its reliable service life. The 25-year old boiler, which provides essential heat to the digesters, has no redundancy in case of failure. BACKGROUND Commissioned in 1993 during the 68 million gallon per day (MGD) expansion of the RWRF, the boiler plant provided heat to the ten existing digesters and capacity for an additional two more future digesters. In 1997 the 80 MGD expansion project added two digesters. With the addition of the thirteenth digester during the Organics Upgrade Expansion Project (completed in 2009), the existing boiler reached its heating capacity. The rated capacity of the existing boiler is approximately 13 BTU/hr while the heating demand is 13.9 BTU/hr during winter months. Another situation that has developed recently is that the Boiler Plant has no redundancy. When the Power Generation Facility (PGF) was in operation, it served as a redundant heat source for the RWRF. However, the PGF was decommissioned in 2017 due to aging equipment and increasing maintenance costs. Consequently, this left the RWRF with no redundant heat source for plant digesters. Heat is essential to the biological process within a digester, especially during winter months. In the event of a prolonged failure of the boiler system, the biological digestion will cease within 48 hours and the RWRF will be in violation of state and federal regulations. This consultant services agreement will provide services for design of a two-phase central Boiler Plant. Phase 1 would provide the design for a 700 horsepower (HP) redundant boiler to be constructed immediately. Phase 2 would provide the design of a second 700 HP boiler to replace the existing boiler when decommissioned. It is estimated that the Phase 2 boiler will be needed by the year 2023, when population projections indicate that a fourteenth digester should begin construction. Following the Fresno Municipal Code Chapter 4, Article 1 and Administrative Order 6-19 of February 6, 2017, the Department of Public Utilities posted a Request for Qualifications on the City's Planet Bids website on May 11, 2018. Three Statements of Qualifications (SOQ) were received. Two of the three consultants which submitted SOQs were considered highly qualified and were asked for proposals. Lawrence Engineering Group was selected as the firm most qualified to provide the best value to the City. Staff negotiated a professional services fee of $200,000 with a contingency of $10,000 for professional engineering services. A standard consultant services agreement is used. Upon approval by the City Council, the agreement will be executed by the Director of Public Utilities or designee. 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 implemented and Lawrence Engineering Group is a local business. FISCAL IMPACT This design contract has no impact on the General Fund and is located in Council District 3. Funds in the amount of $3,158,800 are included in the Fiscal Year 2019 budget within the Sewer System Enterprise Fund (40501) for this design project and the construction project to follow. Attachments: Consultant Service Agreement (Attachment 1) Fiscal Impact Statement (Attachment 2) Vicinity Map (Attachment 3)