REPORT TO THE CITY COUNCIL April 9, 2015 FROM: THOMAS C. ESQUEDA, Director Department of Public Utilities THROUGH: STEPHEN A. HOGG, Assistant Director Department of Public Utilities - Wastewater Management Division BY: KEVIN L. NORGAARD, PE, Supervising Professional Engineer Department of Public Utilities - Wastewater Management Division SUBJECT ..Title Actions pertaining to professional engineering services related to the Downtown Recycled Water Facility (Council District 3) 1. ***RESOLUTION - 45th amendment to the Annual Appropriation Resolution (AAR) No. 2014-95 to appropriate $3,138,600 for design and construction support services for the Downtown Recycled Water Facility (Requires 5 affirmative votes) 2. Award a Professional Services contract to Parsons Water and Infrastructure, Inc., a Delaware corporation, in the amount of $4,128,592 to provide design and construction support services ..Body RECOMMENDATION The Department of Public Utilities is recommending Council appropriate additional funding and award a design contract to Parsons Water and Infrastructure for design and services throughout the construction of the Downtown Recycled Water Facility ("Facility"), and associated sewer pump station and piping. EXECUTIVE SUMMARY The Department of Public Utilities, Wastewater Management Division is seeking to award a professional engineering contract for the development and design of the Facility. Consultant services will extend from preliminary design through support during construction. These services include environmental analysis, assist in applying for State Revolving Fund loans if appropriate, public outreach, and collection system modification designs. Staff recommends that the City Council adopt the 45th AAR No. 2014-95 and award a contract in the amount of $4,128,592 to Parsons Water and Infrastructure, Inc. BACKGROUND The City has adopted the Urban Water Management Plan and a Recycled Water Master Plan. One key goal of these plans is to provide 25,000 acre-feet per year of potable water offsets by 2025. The usage of recycled water to offset potable water will conserve valuable drinking water resources. The Department of Public Utilities is also required by the Central Valley Regional Water Quality Board to adequately treat wastewater and manage the groundwater quality beneath the percolation ponds located at the Regional Wastewater Reclamation Facility ("Regional Facility"). The groundwater quality in the area around the Regional Facility is directly impacted by the quality and quantity of water being percolated into the ground through the surrounding percolation ponds. Advanced treatment and redirect use of advanced treated water reduces the loading through the percolation ponds and reduces potential impacts to the quality of the groundwater. In 2013 the City of Fresno adopted the Recycled Water Master Plan to help address the City's water supply needs, reduce the effluent loading on groundwater at the Regional Facility, and provide a roadmap for recycled water implementation. These Council actions will allocate necessary funds and award a contract for the design of the new Facility. This project starts the process of developing the infrastructure necessary to support the recycled water distribution system in Downtown Fresno. The Facility will be a new satellite wastewater treatment plant designed to treat up to 3 million gallons per day ("mgd") of recycled water. The facility will be a "scalping" plant with solids being returned to the sanitary sewer. The plant will utilize Membrane Bio Reactor technology and Ultra Violet disinfection, with treated effluent meeting Title 22 standards. Recycled water meeting Title 22 standards is considered eligible for unrestricted-use. The Facility will provide state-of-the-art wastewater treatment while housed in a structure aesthetically compatible with the surrounding architecture. The consultant will provide hydraulic analysis, compliance with California Environmental Quality Act ("CEQA") statutes and guidelines, State Revolving Fund application support if applicable, permitting, public outreach, design development, construction documents, bidding phase support, and support during construction. Staff negotiated a consultant services fee of $3,628,592 with a contingency of $500,000 for professional engineering services. The City Attorney has approved this contract as to form. ENVIRONMENTAL FINDINGS By the definition provided in the CEQA Guidelines Section 15378, the award of this Professional Services contract does not qualify as a "project" as provided by CEQA. LOCAL PREFERENCE In compliance with AO-6-19 and Fresno Municipal Code Section 4-109, which provide for local preference for all projects not funded by State or Federal government primary preference did not apply because there were less than three local firms providing the highly specific consulting services requested. FISCAL IMPACT This project has no fiscal impact to the General Fund and is located in Council District 3. This project is identified in the five year capital improvement plan. Funds in the amount of $1,000,000 for the design of this project are budgeted in the 2015 Sewer Enterprise Fund No. 40501. The fiscal impact of this contract will be $4,128,592. Funds do exist and are available in the Sewer Enterprise Fund 40501. An AAR is necessary to move the additional funding for this project from the Sewer Enterprise Operating Fund. Attachments: * Annual Appropriations Resolution * Contract