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).