10.B.
City Council Meeting - FINAL
- Meeting Date:
- 01/17/2017
- Co-Submitter:
- Ryan Roberts
- From:
- Justin Emerick, Project Manager, Utilities
TITLE:
Consideration and Approval of Construction Contract: Rio de Flag Water Reclamation Plant, Aeration Blower Replacement Project
RECOMMENDED ACTION:
1) Approve the construction contract with Mortenson Construction for the purchase and installation of new blower equipment at the Rio de Flag Water Reclamation Plant, for a total contract amount not to exceed $1,102,000.00 and a 240 calendar day contract time
2) Approve Change Order Authority to the City Manager in the amount of $105,200.00 (10% of contract amount, less allowance)
3) Authorize the City manager to execute the necessary documents.
2) Approve Change Order Authority to the City Manager in the amount of $105,200.00 (10% of contract amount, less allowance)
3) Authorize the City manager to execute the necessary documents.
Executive Summary:
Award of the contract will authorize the replacement of three (3) existing blowers at the Rio de Flag Water Reclamation Plant (WRP). This is a replacement of aging infrastructure in order to maintain proper operation of the water reclamation plant while also improving energy efficiency and lowering annual power consumption. The existing equipment has been in service for over 23 years and require an increasing amount of service and maintenance. The blower aeration system represents the single largest energy consuming system in the Rio de Flag Water Reclamation plant. The Blower replacement was identified as a high priority energy conservation opportunity in the 2012 energy audit conducted on both wastewater treatment facilities. The new rotary screw blower technology provides necessary aeration, while significantly reducing the plant's energy consumption. This blower equipment replacement project is eligible for an Arizona Public Service (APS) Energy Efficiency Rebate.
Financial Impact:
Mortenson is the lowest responsible bidder at $1,102,000. This project budget of $1,300,000 is budgeted in FY2017 in Account # 203-08-375-3204-0. To date $50,614 has been spent on engineering fees, leaving $1,249,386 remaining in project fund balance.
Policy Impact:
None
Connection to Council Goal and/or Regional Plan:
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:
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.
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:
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.
Has There Been Previous Council Decision on This:
None
Options and Alternatives:
1.) Approve the award as recommended
2.) Reject bids and re-advertise the project
2.) Reject bids and re-advertise the project
Background and History:
The City of Flagstaff has two treatment plants for wastewater generated within the utility service area, Wildcat Hill and Rio De Flag Water Reclamation Plants. Rio De Flag WRP has a current design treatment capacity of 4.0 MGD and produces Class A+ effluent. Effluent from the plant is discharged to Rio De Flag wash and to the City's reclaimed water distribution system.
This project represents replacing aging infrastructure with more energy efficiency, thereby reducing energy costs into the future. The Rio plant utilizes blower equipment to provide aeration in the activated sludge process by pumping air into a tank, which promotes the microbial growth in the wastewater. Aeration blowers at Rio WRP use between 50-55 percent of the energy consumed in the plant. Improving the aeration equipment efficiency will significantly impact the total energy consumption in the facility.
The aeration blower equipment is critical to the Rio De Flag Water Reclamation Plant operations.These three blower assemblies are the original equipment used in daily operations and have been in constant service since being installed in 1993. Of the three blowers, one is no longer operational, leaving the plant with only two functional blowers. These two remaining blowers are responsible for meeting the aeration demands of the plant and there are no backup blowers to provide this function.
The City replacement criterion for this type of equipment at the City is a maximum of 20 years age. The three aeration blowers being replaced have exceeded the maximum service life and are very energy inefficient. Technological advances have resulted in huge energy efficiency gains in blower design. The existing blowers require an increasing amount of service and maintenance and are consuming an increasing amount of energy as they age to generate the same output. The equipment being presented to City Council for replacement purchase has been reviewed, evaluated and recommended for replacement by the APS Energy Services, T&H Engineering, Utilities Management and maintenance staff.
On October 24, 2016, Purchasing posted an Invitation for Bids (IFB) solicitation for construction services. The solicitation was also advertised in the local newspaper, Arizona Daily Sun, on October 27, 2016. On December 8, 2016 four bids were received and opened in the Purchasing office. After a detailed review of all bids received, Mortenson Construction's bid was deemed to be the lowest responsive and responsible bid. Bids received are as follows:
Bidder Total Base Bid
Mortenson Construction $ 1,102,000.00
Schofield Civil Construction $ 1,224,000.00
Hunter Construction $ 1,264,000.00
Felix Construction $ 1,318,430.00
This project represents replacing aging infrastructure with more energy efficiency, thereby reducing energy costs into the future. The Rio plant utilizes blower equipment to provide aeration in the activated sludge process by pumping air into a tank, which promotes the microbial growth in the wastewater. Aeration blowers at Rio WRP use between 50-55 percent of the energy consumed in the plant. Improving the aeration equipment efficiency will significantly impact the total energy consumption in the facility.
The aeration blower equipment is critical to the Rio De Flag Water Reclamation Plant operations.These three blower assemblies are the original equipment used in daily operations and have been in constant service since being installed in 1993. Of the three blowers, one is no longer operational, leaving the plant with only two functional blowers. These two remaining blowers are responsible for meeting the aeration demands of the plant and there are no backup blowers to provide this function.
The City replacement criterion for this type of equipment at the City is a maximum of 20 years age. The three aeration blowers being replaced have exceeded the maximum service life and are very energy inefficient. Technological advances have resulted in huge energy efficiency gains in blower design. The existing blowers require an increasing amount of service and maintenance and are consuming an increasing amount of energy as they age to generate the same output. The equipment being presented to City Council for replacement purchase has been reviewed, evaluated and recommended for replacement by the APS Energy Services, T&H Engineering, Utilities Management and maintenance staff.
On October 24, 2016, Purchasing posted an Invitation for Bids (IFB) solicitation for construction services. The solicitation was also advertised in the local newspaper, Arizona Daily Sun, on October 27, 2016. On December 8, 2016 four bids were received and opened in the Purchasing office. After a detailed review of all bids received, Mortenson Construction's bid was deemed to be the lowest responsive and responsible bid. Bids received are as follows:
Bidder Total Base Bid
Mortenson Construction $ 1,102,000.00
Schofield Civil Construction $ 1,224,000.00
Hunter Construction $ 1,264,000.00
Felix Construction $ 1,318,430.00
Key Considerations:
The existing Rio De Flag aeration system equipment has been in operation since 1993, is over 23 years old, and is at the end of it's useful life. This equipment is required in order to maintain our regulatory compliance with the Arizona Department of Environmental Quality(state) and meet existing permit requirements.
New Blower equipment is significantly more energy efficient and will reduce annual energy consumption by up to 1,650,000 kwh and annual power savings of $100,000 (approximate) based on current runtime conditions. Arizona Public Service energy rebate program is intended to encourage the replacement of inefficient electrical equipment by offering financial rebates for the replacement of qualifying equipment. This project is eligible for a APS Energy Services rebate in the amount of approximately $110k, subject to current APS program rules and funding.
New Blower equipment is significantly more energy efficient and will reduce annual energy consumption by up to 1,650,000 kwh and annual power savings of $100,000 (approximate) based on current runtime conditions. Arizona Public Service energy rebate program is intended to encourage the replacement of inefficient electrical equipment by offering financial rebates for the replacement of qualifying equipment. This project is eligible for a APS Energy Services rebate in the amount of approximately $110k, subject to current APS program rules and funding.
Community Benefits and Considerations:
The Rio De Flag Blower Replacement-Energy Efficiency project was approved and funded by Council in the FY 2016, and FY 2017 budget.
Community Involvement:
Inform