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HomeMy WebLinkAbout5/17/2000 - STAFF REPORTS (16) DATE: May 17, 2000 TO: City Council FROM: Assistant City Manager-Special Projects WASTEWATER TREATMENT PLANT EXPANSION RECOMMENDATION: It is recommended that City Council direct staff to commence discussions with US Filter Operating Services (USFOS) on the expansion of the Wastewater Treatment Plant,including den itrification facilities,and direct the CityAttorney to evaluate design- build opportunities at the plant. BACKGROUND: The Palm Springs Wastewater Treatment Plant is in need of expansion within the next 36 months. During the recent privatization proposal process, it was clearly demonstrated that the usual approach (Master Plan - Design Engineer- Low Bid) is much more costly than working with the private sector. This demonstration was in the form of a guaranteed fixed price design-build proposal for a 2-MGD expansion for less than$5 million vs,the master plan estimate of anywhere from$9 million to$13 million. The need to expand is upon the City now and staff recommends a two-pronged approach. First, staff recommends that discussions be immediately undertaken with USFOS, our Maintenance and Operations Contractor, to prepare a "Scope of Need" for the upcoming expansion. This scope would include expected new regulatory mandates such as nitrate removal, and could serve as a basis for a design consultant contract or, if the design-build approach can be utilized, as the basis for that contract. Second, as there are numerous California examples of substantial savings to the ratepayers from design-build expansions,staff recommends City Council seek a legal opinion from the City Attorney on a design-build approach for this expansion. A Resolution providing the above suggested direction is attached for City Council consideration. ALLEN F. SMO T, AAE Assistant City Manager- Special Projects APPROVED City Manager ATTACHMENT: 136 Resolution REVIEWED BY DEPT. OF FINANCE .7, RESOLUTION NO. OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, DIRECTING STAFF TO OPEN DISCUSSIONS WITH US FILTER OPERATING SERVICES CONCERNING THE DEVELOPMENT OF A WASTEWATER TREATMENT PLANT EXPANSION SCOPE OF WORK, INCLUDING DENITRIFICATION, AND DIRECTING THE CITY ATTORNEY TO DEVELOP A LEGAL OPINION ON THE AVAILABILITY OF DESIGN/BUILD FOR THIS PROJECT. WHEREAS the City's Wastewater Treatment Facility has been found to need expansion to meet future growth of the City; and WHEREAS the traditional masterplanning approach has been conducted revealing anywhere from $13 million to $33 million worth of expansion; and WHEREAS the City's Wastewater Treatment Plant privatization efforts revealed that a much more cost-effective approach to expanding the plant would be a design-build contract; and WHEREAS the Regional Water Quality Control Board for some time has been discussing the importance of mandating denitrification at Coachella Valley wastewater treatment plants, NOW THEREFORE BE IT RESOLVED as follows: Section1. Thatthe Citystaff is hereby directed to workwith US FilterOperating Services, the City's Wastewater Treatment Operations and Maintenance Contractor, to develop a "Scope of Need" report, including denitrification,for the expansion of the Wastewater Treatment Plant. Section 2. That the City Attorney is hereby directed to prepare a legal opinion on the availability of the design-build approach for the expansion of the Wastewater Treatment Plant. ADOPTED this day of 12000. AYES: NOES: ABSENT: ATTEST: CITY OF PALM SPRINGS, CALIFORNIA By City Clerk City Manager REVIEWED &APPROVED AS TO FORM