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HomeMy WebLinkAbout11673RESOLUTION NO. 11673 A RESOLUTION AWARDING A CONSTRUCTION CONTRACT IN THE AMOUNT OF $2,220,000.00 TO MILENDER WHITE CONSTRUCTION COMPANY, AND SETTING FORTH $266,400.00 FOR CONTINGENCIES, FOR SOLAR POWER INSTALLATION AT THE JAMES R. DIIORIO WATER RECLAMATION FACILITY, AND AUTHORIZING THE PURCHASING AGENT TO EXECUTE THE SAME WHEREAS, competitive bids for the Project No. 09 -067 (WWL02B) James R. Dilorio Water Reclamation Facility, Ammonia and Nutrient Removal, Section 6 — Solar Power have been received and examined, and; WHEREAS the proposal of Milender White Construction Company. Of Arvada, Colorado, was the lowest of those bids determined to be responsive; BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. A contract for the Project No. 09 -067 (WWL02B) James R. Dilorio Water Reclamation Facility, Ammonia and Nutrient Removal, Section 6 — Solar Power with Milender White Construction Company. be, and the same is hereby awarded to said bidder in the amount of $2,220,000.00. SECTION 2. The Purchasing Agent is hereby authorized to execute said contract on behalf of Pueblo, A Municipal Corporation, and the City Clerk shall affix the seal of the City thereto and attest the same. SECTION 3. In addition to the amount of the bid set forth, as aforementioned, an additional amount as stipulated in this section is hereby established for contingencies and additional work. Contingencies and Additional Work ......... $266,400.00 SECTION 4. Funds for said project shall be from the Sewer User Fund. A77ESTED SY: CITY CLERK INTRODUCED: August 24, 2009 BY: Judy Weaver COUNCILPERSON APPR t)' 40 �- PRESIDENTof City Council Background Paper for Proposed RESOLUTION AGENDA ITEM # M -1 DATE: AUGUST 24, 2009 DEPARTMENT: WASTEWATER DEPARTMENT GENE MICHAEL, DIRECTOR TITLE A RESOLUTION AWARDING A CONSTRUCTION CONTRACT IN THE AMOUNT OF $2,220,000.00 TO MILENDER WHITE CONSTRUCTION COMPANY, AND SETTING FORTH $266,400.00 FOR CONTINGENCIES, FOR SOLAR POWER INSTALLATION AT THE JAMES R. DIIORIO WATER RECLAMATION FACILITY, AND AUTHORIZING THE PURCHASING AGENT TO EXECUTE THE SAME ISSUE Should the City Council award a construction contract in the amount of $2,220,000.00 to Milender White Construction Company, for construction of a Solar Power Array at the James Dilorio Water Reclamation Facility? RECOMMENDATION Approve this Resolution. BACKGROUND The James R. Dilorio Water Reclamation Facility (WRF) operates under a Colorado Pollution Discharge Elimination System Permit (CPDES). This permit allows reclaimed wastewater to be released into state waters and is based upon state law. Electric power is the primary operating cost component for the wastewater treatment process. The State of Colorado has adopted newer, stricter regulations on the release of ammonia and nutrients into state waters. Additional treatment to achieve compliance with these new regulations will require additional consumption of electric power. The installation of a solar photovoltaic array to provide a portion of the electric power needed to operate the Water Reclamation Facility will help the City to control operating costs in the long term. Copies of the bid sheet and the Engineer's Recommendation for Award are attached. FINANCIAL IMPACT A federal loan under the American Recovery And Reinvestment Act of 2009 in a maximum principal amount of $1,500,000, for the purposes of financing the construction of the solar photovoltaic array to provide alternative electric energy to the James R. Dilorio Water Reclamation Facility has been offered as a zero - interest loan, with principal repayment required. The repayment over 20 years will be $75,000 per year. Initial estimates suggest that the solar array may provide annual savings between $79,000 and $111,000 per year, depending on electric rates and reimbursements made under the alternative energy incentive program. This represents a savings of 17 to 25 percent of annual electric power costs, based on the 2010 budget request. Under the terms offered it is anticipated that the City will realize a small net benefit of approximately $4,000 per year in cost savings. Additional savings may be realized if electric utility rates increase. Additional funding to complete the construction project will be provided from the Sewer User Fund. Funding is available and has been appropriated and allocated to Project No. 09 -067 (WWL02B). BLACK & VEATCH Building a World of difference. City of Pueblo, Colorado James R. DiIorio Water Reclamation Facility Ammonia and Nutrient Removal Project Section 6 — Solar Power B &V Project 165167 B &V File A August 13, 2009 Mr. Gene Michael Wastewater Director City of Pueblo, Colorado 211 E. "D" Street Pueblo, CO 81003 Subject: Recommendation for Award for Section 6 to Milender White Construction Company Dear Gene: At 2:00 pm on August 11, 2009, bids for Section 6 of the Ammonia and Nutrient Removal Project were publically opened and read aloud by the City's Purchasing Department. A copy of the bid tabulation compiled by the City is attached. The base bid is for a solar photovoltaic system that will generate 200 kilowatts of peak direct current power, and deliver 310,000 kilowatt hours per year of alternating current electricity to the James R. DiIorio Water Reclamation Facility (WRF). The solar power will offset a portion of the utility power purchased from Black Hill Energy. Each of the two alternatives would allow the City to increase the peak capacity by 100 kilowatts, or an additional 200 kilowatts if both Alternative A and B are accepted by the City. The apparent low bidder for the base bid and both alternatives is Milender White Construction Company of Arvada, Colorado. Milender White is a mid - sized, Colorado -based general contractor specializing in commercial construction, including solar power projects. The banking, bonding, and project references checks for Milender White indicate they have the experience, personnel, equipment, financial resources, bonding capacity, and qualified subcontractors to successfully complete all of the Section 6 scope of work, including the alternatives if one or both of them are awarded by the City. With respect to making good -faith efforts to meet disadvantage business enterprise (DBE) goals, Milender White sent us a DBE solicitation ad they placed in the Daily Journal, plus a completed copy of DBE Solicitation Form A, both of which are attached for reference. Therefore, it is recommended that the City award Section 6 to Milender White in the amount of $1,669,000 for the base 200 - kilowatt bid, or $2,220,000 if Alternative A is also awarded, or $2,771,000 if both Alternatives A and B are added to the project. Black & Veatch Corporation 6300 S. Syracuse Way, Suite 300, Centennial, CO 80111 -6723 USA - Telephone: 720-634 -4200 Page 2 City of Pueblo, Colorado Mr. Gene Michael B &V Project 165157 August 13, 2009 If you have any questions regarding our evaluation of Milender White's qualifications to perform the section 6 work, please call me at your earliest convenience. Thank you for the opportunity to provide the engineering services for this project and we look forward to working with the City and Milender White in constructing a high quality and effective solar power system at the WRF. Very truly yours, BLACK & VEATCH Mark J. Maxwell Project Manager mjm: Enclosure[s] cc: Kerry Heidel, Black & Veatch TR Minard, Black & Veatch City of Pueblo Bid Summary Page 1 of 1 Project: 09 -067 (WWL802B) Weaver Aztec General Glacier Milender White Industrial Project Name: James R. Dilorio Water Reclamation Facility, Ammonia and Nutrient Removal, Section 6 General Contractors, Construction Colarelli Construction Constructors/ Solar Power ConsCtrouction LLC Co., Inc. Construction Co. Managers DATE: 08111/2009 TIME: 2:00:00 PM ITEM DESCRIPTION Price Proposal to furnish all of the labor, materials, necessary tools and equipment and all utility and transportation service necessary to perform and complete in a workmanlike manner all of the work required in connection with the construction of the James R. Dilorio Water Reclamation Facility, Ammonia and Nutrient Removal, Section 6 - Solar Power in accordance with the plans and specifications as prepared by or for the City of Pueblo, Colorado, for the sums set forth as follows: 1 BASE BID (200kW capacity) Lump Sum $ 1,973,331.00 $ 1,746,000.00 $ 1,807,800.00 $ 1,971,371.00 $ 1,669,000.00 $ 2,285,635.00 2 ALTERNATIVE A -add Lump Sum $ 709,521.00 $ 594,000.00 $ 660,250.00 $ 510,778.00 $ 551,000.00 $ 631,950.00 (100kW capacity) 3 ALTERNATIVE B - add Lump Sum $ 711,435.00 $ 594,000.00 $ 663,250.00 $ 511,475.00 $ 551,000.00 $ 635,680.00 (100kW capacity) Mandatory Submittals yes yes yes yes yes yes All prices as submitted — Evaluation Committee will determine if bidder has met bid requirements. Overview of the Ammonia and Nutrient Removal Project at the James R. DiIorio Water Reclamation Facility (WRF) (Revision Date: 8- 13 -09) The City of Pueblo owns and operates a water reclamation facility (WRF) to treat the wastewater generated within the City limits, plus that from the Blende Sanitation District. The WRF has a rated maximum month capacity of 19 million gallons per day (mgd) and was designed for a service area population of 147,000 people. The existing facility, most of which was built in the late 1980s, was configured to provide for basic secondary treatment and effluent disinfection before discharge to the Arkansas River. Waste solids from the primary clarification and trickling filter /solids contact (TF /SC) plant are anaerobically digested prior to centrifuge dewatering, supplemental air - drying, and landfill disposal. Currently, the WRF handles a maximum 30 -day average flow of 13 mgd from a service area population of about 105,000 people. The Preliminary Engineering Report (PER) prepared by Black & Veatch (B &V) for this Project identified the need to install ammonia removal facilities to meet new in- stream ammonia standards that were adopted by the Colorado Department of Public Health and Environment (CDPHE) in 2007. When the discharge permit for the WRF is next renewed, it will contain acute and chronic effluent ammonia limits and an enforceable compliance schedule for meeting them. While some elements of the draft permit renewal are still being discussed with CDPHE, agreement has been reached on the ammonia limits that computer modeling indicates will meet the in- stream aquatic life protection standards for the Arkansas River. Pueblo's existing WRF was designed for removal of suspended solids and oxygen demanding substances, plus disinfection and removal of any chlorine residual prior to discharge. In the 1980s, there was no need for ammonia removal and the WRF was not designed to provide that type of treatment. hi order to meet these new standards, it is recommended by B &V that the high rate trickling filter (biotower) be retired and more activated sludge aeration basins be added so that the biological treatment organisms will have sufficient detention time to oxidize ammonia to nitrate. To reduce energy costs, stabilize operations, and position the City for cost - effective compliance with additional nutrient quality rules that CDPHE may adopt in 2010 or subsequent years, it is recommended that facilities be installed for biological phosphorous and partial nitrate removal. While these facilities may not be totally sufficient to meet yet- to -be- determined nutrient removal requirements, they will facilitate the economical attainment of whatever standards are set. The final element of the Project is the renovation of four existing lift stations that convey wastewater from the Airport Industrial Park to the WRF. Through the American Recovery and Reinvestment Act of 2009 (ARRA), Congress made significant funds available for infrastructure maintenance, and as a means of stimulating the national economy. For water and wastewater projects in Colorado, ARRA funds will be made available as low interest loans, with forgiveness of all or a portion of the principal, depending upon the size of the project and the amount of the loan. If sufficient economic stimulus funds are made available on favorable terms, the City will consider decommissioning its gaseous chlorination and dechlorination facilities and replacing them with an ultraviolet (UV) light disinfection system, which is a much more inherently safe means of disinfecting the effluent before it is released to the Arkansas River. Accordingly, the Project will include a separate bid package for a new UV disinfection system. The Project will include another separate bid package for a solar photovoltaic system to offset UV power usage and make UV disinfection more attractive for ARRA funding. After bids are received, the City will decide whether sufficient funding is available to proceed with the UV disinfection and solar power portions of the Project. If ARRA economic stimulus funding is offered to the City, it will likely require a "fast start" to construction activities to speed up job creation. Accordingly, the Project was configured in the following way, so that construction of Sections 1, 4, 5, and 6 can proceed in advance of the bulk of the work, which will be contained in Sections 2 and 3: • Section 1 — Site Dewatering • Section 2 — Yardwork • Section 3 — Treatment Works • Section 4 — Lift Station Renovations • Section 5 — UV Disinfection (ARRA funding request) • Section 6 — Solar Power (ARRA funding request) Design and regulatory approvals for Sections 5 and 6 were pushed ahead of those for the other sections because of the accelerated deadlines for moving ARRA- funded projects into the construction phase. In August 2009, the State formally indicated that only Section 6 would receive ARRA funding, and bids were received for that section on August 11, 2009. Section 5 will now be advertised for bids a later date, perhaps in September 2009 along with Sections 1 and 4 if funds are available. It has also been determined that Sections 2 and 3 will be combined into a single set of bid documents, which means thee will be five separate construction contracts if the entire project moves forward (Section 1, Sections 2/3 combined, Section 4, Section 5, and Section 6).