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Home My WebLink About9/4/2013 - STAFF REPORTS - 2.S. C 0 u w c4``F°"N,p. City Council Staff Report Date: September 4, 2013 CONSENT CALENDAR Subject: APPROVAL OF NOTICE TO PROCEED FOR VEOLIA WEST OPERATING SERVICES, INC. FOR THE DESIGN AND, SUBSEQUENTLY, CONSTRUCTION OF THE WWTP PRIORITY 1 PLANT UPGRADE PROJECTS, CITY PROJECT NO'S., 13-19, 13-20, 13-21, 13-22, 13-23, 13-24. From: David H. Ready, City Manager Initiated by: Public Works and Engineering Department SUMMARY Approval of these items will authorize Veolia West Operating Services, Inc., ("Veolia") to proceed with the design and, subsequently, construction of the Wastewater Treatment Plant (WWTP) Priority 1 Plant Upgrade Projects as per the Capital Improvement Plan. RECOMMENDATION: 1. Authorize the Director of Public Works/City Engineer to issue a Notice to Proceed for Veolia West Operating Services, Inc. for the design of Digester No. 2 Dome Replacement, City Project No. 13-19, in the amount of $168,259 and approve proceeding with construction at a total cost not to exceed $1,050,000. 2. Authorize the Director of Public Works/City Engineer to issue a Notice to Proceed for Veolia West Operating Services, Inc. for the design of a New Sludge Centrifuge, City Project No. 13-20, in the amount of $238,768 and approve proceeding with construction at a total cost not to exceed $1,490,000. 3. Authorize the Director of Public Works/City Engineer to issue a Notice to Proceed for Veolia West Operating Services, Inc. for the design of a New Primary Effluent Pump Station, City Project No. 13-21, in the amount of $466,319 and approve proceeding with construction at a total cost not to exceed $2,910,000. 4. Authorize the Director of Public Works/City Engineer to issue a Notice to Proceed for Veolia West Operating Services, Inc. for the design of New Headworks, City Project No. 13-22, in the amount of $948,662 and approve proceeding with construction at a total cost not to exceed $5,920,000. 1q ITEM NO. City Council Staff Report September 4, 2013- Page 2 VNNTP Priority 1 Plant Upgrade Projects 5. Authorize the Director of Public Works/City Engineer to issue a Notice to Proceed for Veolia West Operating Services, Inc. for the design of New Circular Primary Clarifiers w/Sludge Pump Station, City Project No. 13-23, in the amount of $1,450,235 and approve proceeding with construction at a total cost not to exceed $9,050,000. 6. Authorize the Director of Public Works/City Engineer to issue a Notice to Proceed for Veolia West Operating Services, Inc. for WWTP Facility Plan, City Project No. 13-24, in the amount of$40,062. STAFF ANALYSIS: The City previously adopted an engineering evaluation report of the City's aging wastewater treatment plant prepared by Carollo Engineers. The report, or Capital Repair and Rehabilitation Plan, commonly referred to as a Capital Improvement Plan ("CIP") for the City's wastewater treatment plant ("WWTP") identified $67 million (2012 costs) of capital repair and replacement projects needed over the next 20 years, including over $45 million (2012 costs) of priority 1 & 2 projects needed within the next 10 years. Subsequently, the City Council reviewed and approved the 2012 Wastewater Financial Plan and Rate Study with regard to funding the entire 20-Year Wastewater Treatment Plant CIP. The Rate Study reviewed the 20-year WWTP CIP and determined that the City can appropriately finance the recommended capital projects (Attachment "B", City Council's WWTP Prioritization List), as well as on-going Operations & Maintenance (O&M) expenditures associated with the WWTP, by initially increasing the historically low monthly sewer rate of $10.36 per residential dwelling unit or equivalent dwelling unit (EDU) to $20 per EDU over five years, and subsequently at a rate of $1.00 per EDU to a maximum monthly rate of $35.00 per EDU by 2031. Shortly thereafter, the City Council adopted a resolution approving increased sewer service charges effective July 1, 2012. The City of Palm Springs in cooperation with Veolia issued a Request for Proposals (RFP #05-13) for Engineering Design Services for the WWTP Plant Upgrade Project which included Priority 1 Projects from the CIP. Proposals were received in May 2013 and a review committee made up of City Staff and Veolia evaluated and interviewed firms which resulted in the selection of Carollo Engineers. Veolia, with consent from the City, proceeded with price negotiations with Carollo Engineers and resulted in a savings of $200,000 from the initial cost proposal by Carollo and two additional tasks which included Odor Modeling and System Startup and Training, which were not in the original proposal. This staff report seeks approval from the City Council to allow Veolia to proceed with the design and, subsequently, construction of all Priority 1 Projects as listed on attachment "B", not to exceed the approved budget as approved by City Council in the WWTP Financial Plan and Rate Study. 02 City Council Staff Report September 4, 2013 - Page 3 WWTP Priority 1 Plant Upgrade Projects Veolia will provide direct supervision and coordination of the consultant through preparation of the plans and specifications. Veolia's proposal includes four components: Professional Services (consultant fees), Veolia Labor (contract administration, oversight and coordination throughout the 12 month design period), Travel & Living, and Liability Insurance (to offset Veolia's general liability insurance costs assumed with contracting directly with the professional consultants). The proposed fees are as follows: Capital Improvement Project Project Cost CP#13-19, Digester No. 2 Dome Replacement $ 168,259 CP#13-20, Sludge Centrifuge $ 238,768 CP#13-21, Primary Effluent Pump Station $ 466,319 CP#13-22, Headworks $ 948,662 CP#13-23, Circular Primary Clarifiers w/Sludge Pump Station $1,450,234 CP#13-24, WWTP Facility Plan 40,062 GRAND TOTAL $3,312,304 In accordance with Section 5.3(f) of the Amended and Restated Wastewater Services Agreement between the City and Veolia, Veolia is entitled to make a first proposal to do any Capital Project related to the wastewater treatment plant. The Agreement provides for a mark-up and profit margin varying between 12.5% and 16%. For this project, Veolia has proposed a 12.5% mark-up which is applied only to the professional consultant fees, and is not applied to Veolia's own labor rates, travel & living, or general liability insurance. Veolia's proposal is included as Attachment 2. FISCAL IMPACT: Sewer rates have been increased, effective July 1, 2012. Priority 1 projects are the first projects to be funded with sewerage funds within the first ten (10) years of the rate increase. Sufficient funds are available for design services in the following corresponding Wastewater Treatment Plant Capital Project accounts: 420-6800-50000, 420-6800-57031, 420-6800-57032, 420-6800-57033, 420-6800-57034 and 420-6800- 57035. Funds will be budgeted continuously each year for the remainder of design to construction as approved by City Council. SUBMITTED: Recommended by: Approved by: David J. Barakian David H. Ready Director of Public Works/City Engineer City Manager Attachments: 1. Attachment "B", City Council's WWTP Prioritization List 2. Veolia's Proposal for WWTP Upgrade Projects for Design 03 Attachment "B" City Council's WWTP Prioritization List Priority 1 Projects New Circular Primary Clarifiers w/Sludge Pump Station $9,050,000 New Headworks $5,920,000 New Primary Effluent Pump Station $2,910,000 New Sludge Centrifuge $1,490,000 Digester No. 2 Dome Replacement $1,050,000 WWTP Facility Plan $250 000 Priority 1 Total $20,670,000 Priority 2 Projects Secondary Clarifier Upgrades $2,010,000 FOG Receiving Station $1,600,000 Trickling Filter Upgrades $1,560,000 Gravity Thickener Upgrades $1,400,000 New Gas Flare $1,000,000 General Sitework Pavement Replacement $720,000 Pavement Replacement in Drying Beds 13-18 and 19-26 $710,000 New Septage Receiving Station $500,000 New Access Rd w/ Signalized Access fr Gene Autry $500,000 Water System Upgrade for Fire Protection $500,000 Filtrate Pump Station Upgrade $500,000 Priority 2 Total $11,000,000 Priority 3 Projects Third Digester(Acid or Conventional) $7,200,000 Fuel Cell Purchase and Installation $4,060,000 Digester Gas Treatment System $2 000 000 Priority 3 Total 13,260,000 Priority 4 Projects Crossley Road Collection System Upsize $4,400,000 Indian Canyon Drive Collection System Upsize $2,400,000 Palm Canyon Drive Collection System Upsize $1,800,000 New Administration Building $1 600 000 Priority 4 Total $10,200,000 Total 20-Year CIP $55,130,000 The list of projects above have been deemed critical to ensuring the City's ability to safely and adequately provide wastewater treatment of the sewage generated within the City. 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