REPORT TO THE CITY COUNCIL May 11, 2017 FROM: THOMAS C. ESQUEDA, Director Department of Public Utilities THROUGH: KEVIN L. NORGAARD, PE, Supervising Professional Engineer Department of Public Utilities BY: SARAH AGUILA, Senior Engineering Technician Department of Public Utilities - Wastewater Management Division SUBJECT ..Title Actions pertaining to Digesters 1 and 13 Cleaning and Rehabilitation of Digester 1 at the Regional Wastewater Reclamation Facility (Bid File 3524) (Council District 3) 1. Adopt findings of Categorical Exemption Class 1, pursuant to Section 15301(d) (Existing facilities) and Categorical Exemption Class 2, pursuant to Section 15302(c) (Replacement or reconstruction) of the California Environmental Quality Act Guidelines 2. Award a $943,360 contract to Universal Coatings, Inc., of Fresno, California ..Body RECOMMENDATIONS Staff recommends that City Council adopt findings of Categorical Exemption Class 1, pursuant to Section 15301(d) (Existing facilities) and Categorical Exemption Class 2, pursuant to Section 15302(c) (Replacement or reconstruction) of the California Environmental Quality Act Guidelines (CEQA) and award a $943,360 contract to Universal Coatings, Inc., of Fresno, California. EXECUTIVE SUMMARY Periodic cleaning of the 13 Digesters and routine inspections is required to keep the facility functioning within regulatory requirements. During a routine inspection of Digester 1, it was discovered that methane gas was leaking into the atmosphere through cracks in the roof of the digester. This construction contract will clean the Digesters 1 and 13, and prepare digester 1 for rehabilitation. The Department of Public Utilities, Wastewater Management Division is seeking to award a contract in the amount of $943,360 to Universal Coatings, Inc., of Fresno, California, for the cleaning of Digesters 1 and 13 and the Rehabilitation of Digester 1. BACKGROUND Digesters 1 and 13 are 2 of 13 anaerobic digesters at the Regional Wastewater Reclamation Facility. The digesters are used in treatment of the solids generated at the Facility to eliminate pathogens and volatile organic compounds. The digesters range in size from 860,000 to 1,870,000 gallons. Over the period of approximately 7 years these digesters accumulate debris (i.e. sludge, sand, plastics and hair). This project will remove all the accumulated debris from the digesters and allow for the inspection of the interior surface of Digester 13 and rehabilitation of Digester 1. The debris will be screened and transported to an appropriate class landfill, and the sludge will be dewatered, and then disposed of with the other biosolids from the facility. During pre-cleaing exterior inspection of Digester 1, it was discovered that gasses were escaping through cracks in the roof of the Digester. These gasses contain methane and hydrogen sulfide. Following cleaning of Digester 1, this project includes the removal and replacement of the failing interior coating, application of a ferric corrosion inhibitor, and a new roof coating. Plans and specifications were prepared for the project. A Notice Inviting Bids was published on February 24, 2017, and posted on the City's website. The specifications were distributed to 9 prospective bidders, and faxed to 13 Builder Exchanges. The bid will expire on May 31, 2017, 64 days after the March 28, 2017 bid opening. Five sealed bid proposals were received and publicly opened on March 28, 2017. The bid proposal prices range from $943,360 to $1,134,667. Universal Coatings, Inc., was the lowest responsive and responsible bidder with a submitted bid of $943,360. The staff determination was posted on the City's website. Staff recommends the City Council award a construction contract in the amount of $943,360 to Universal Coatings, Inc., as the lowest responsive and responsible bidder. ENVIRONMENTAL FINDINGS Staff has performed a preliminary environmental assessment and has determined that this project falls within Categorical Exemption Class 1, pursuant to Section 15301(d) (Existing facilities) and Categorical Exemption Class 2, pursuant to Section 15302(c) (Replacement or reconstruction) of the CEQA Guidelines because this project involves rehabilitation and replacement of existing sewer mains. Therefore, 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 because the lowest responsive and responsible bidder is a local business. FISCAL IMPACT Funds in the amount of $1,107,000 were budgeted in FY17. This construction contract has no impact on the General Fund and is located in Council District 3. Attachments: Bid Evaluation and Fiscal Impact Statement Contract Vicinity Map