Consideration and Approval of Contract:  Rio de Flag Water Reclamation Plant, Ultraviolet Disinfection System Equipment Replacement Project. (*CHANGED FROM ITEM 8-C TO 8-D)

The current ultraviolet disinfection system equipment is at the end of it's asset life for disinfection of the reclaimed water in order to meet Arizona Department of Environmental Quality (ADEQ) regulatory permits. The City conducted a formal bid process for the Project and Schofield Civil Construction was determined to be the lowest responsive, responsible bidder. Staff is requesting Council to approve a construction contract with Schofield Civil Construction in the amount of $1,247,000.00. No additional change order authority monies are being requested.

This Project is budgeted in Account #203-08-375-3319-0-4421 in the amount of $1,196,000.00. Year-to-date, $49,033.00 has been spent on engineering fees and construction of an access door for the project, leaving $1,146,967.00 remaining in the Project fund balance.  The remaining balance of $100,033.00 will come from the Wastewater Emergency Reserve (Account #203-08-375-3235-0-4421).

COUNCIL GOALS:
1)  Provide sustainable and equitable public facilities, services, and infrastructure systems in an efficient and effective manner to serve all population areas and demographics.

REGIONAL PLAN:
WR.4.1.- Logically enhance reclaimed water resources, treatment infrastructure sizing to accommodate planned growth and resource management.  This system is sized to accommodate increased demand at the Water Reclamation Plant.
E.I.4.- Promote cost-effective, energy efficient technologies and design in industrial projects.  This system takes advantage of new and improved technologies and materials to increase efficiency and power delivery.
E.I.10.- Include energy efficient technologies in construction projects.  This project is eligible for APS Energy Savings Credits.

Yes, Council previously approved a contract with a different vendor on November 15, 2016.  That vendor was not able to meet the contract terms, and on October 3, 2017, the City Council canceled the previous contract award.

1.)  Approve the contract with Schofield Civil Construction in a total contract award amount not to exceed $1,247,000.00; or
2.)  Reject the contract and re-advertise the Project.

The City has two treatment plants for the wastewater generated within the utility service area, Wildcat Hill Waste Water Treatment Plant (Wildcat Hill WWTP) and Rio De Flag Water Reclamation Plant (Rio De Flag WRP). Rio De Flag WRP has a design treatment capacity of 4.0 MGD and produces Class A+ effluent. Effluent from the Rio De Flag WRP is discharged to Rio De Flag wash and into the City's reclaimed water distribution system. The filtered effluent flows by gravity to two channel basins where the ultraviolet system equipment is used for disinfection in order to meet ADEQ regulatory permit level requirements.  

The new ultraviolet disinfection equipment is capable of meeting the peak demand for disinfection requirements and utilizes an energy efficient design. The Project will take advantage of innovative materials to reduce electrical consumption while providing a greater level of disinfection per kilowatt hour.

This ultraviolet disinfection equipment is critical to the Rio De Flag WRP operations. The equipment being purchased will replace an existing 25 year old piece used in daily operations. The replacement criterion for this type of ultraviolet disinfection equipment is a maximum of 20 years and the existing equipment exceeds that end-date. The Project has been reviewed and evaluated by the engineering firm hired by the City to create the design for the ultraviolet disinfection system (HDR Engineering), management within the Water Services Division, and City staff with knowledge of waste water disinfection systems. In fact, this Project was originally budgeted and approved for design and construction in FY 2016. 

The contract for the ultraviolet disinfection equipment system includes the following:

• Installation of new ultraviolet disinfection equipment and all associated electrical upgrades.
• Removal and disposal of the old ultraviolet disinfection system.

On December 19, 2017, Purchasing posted an Invitation for Bids (IFB) solicitation for construction services on their electronic bidding website. The solicitation was also advertised in the local newspaper, the Arizona Daily Sun, on December 23 and December 30, 2017. On January 16, 2018, five (5) bids were received electronically.

After a detailed review of all bids received, Schofield Civil Construction's bid was deemed to be the lowest responsive and responsible bid. Bids received are as follows:

Bidder                                     Base Bid 
Schofield Civil                          $1,247,000
PCL                                         $1,302,266
Eagle Mountain Construction  $1,462,900
Technology Construction         $1,468,000
Mortenson Construction          $1,695,000

This Project is required in order to maintain the City's regulatory compliance with ADEQ discharge permit requirements.  The existing ultraviolet disinfection equipment has been in operation since 1992, and is at the end of it's useful life.  Replacement parts, including light bulbs, are no longer available from the manufacturer, and if found, are at a high price.  A well-functioning ultraviolet disinfection system is vital to the successful operation of the Rio De Flag WRP.  The new system will be more energy efficient, providing increased disinfection while consuming less electrical power. This ultraviolet disinfection system is a critical component of a greater treatment process that provides the City with a high quality reclaimed water product which has found many beneficial uses throughout the City and contributes to the conservation of Flagstaff's natural water resources.

The Rio de Flag WRP ultraviolet disinfection equipment system replacement project was originally approved and funded by Council in the FY 2016 budget.

Maintaining reclaimed water quality standards is a prime benefit to the community and existing reclaimed water customers. The Project will also assist the City to meet the regulatory permit levels required by ADEQ.

Inform.