CITY OF PACIFICA
COUNCIL AGENDA SUMMARY REPORT
4/10/2023
1 SUBJECT:
Agreement to Purchase UV Disinfection Equipment for the Calera Creek Water Recycling Plant RECOMMENDED ACTION:
Adopt a Resolution to authorize the City Manager to execute a Purchase Agreement with Trojan Technologies in the amount of $1,136,603.75 in connection to the Ultraviolet Disinfection Replacement Project (P034); approve budget authority in the amount of $1,250,264.13 which includes 10% contingency in the amount of $113,660.38; authorize the City Manager to execute all documents related to the project equipment purchase.
STAFF CONTACT:
Nelson Schlater, P.E., Engineering Manager - Wastewater (650) 738-3767
[email protected]
Maria Aguilar, P.E., Deputy Director of Public Works - Wastewater (650) 738-4660
[email protected]
Lisa Petersen, P.E., Director of Public Works
(650) 738-3770
[email protected]
BACKGROUND/DISCUSSION:
Ultraviolet Disinfection Equipment for the Ultraviolet Disinfection Replacement Project (Project) is included in the City’s approved FY 2022-2027 Capital Improvement Program (CIP) and the City’s approved FY 2022-23 budget.
The Calera Creek Water Recycling Plant (CCWRP) was brought online in the Year 2000. At that time, CCWRP was a State-of-the-Art treatment facility, employing ultraviolet (UV) disinfection utilizing the Trojan UV4000 UV treatment system. Although less energy efficient than today’s UV technology, the existing UV treatment system has performed well for the City, with City Maintenance staff receiving reliable support from the vendor. Like other industries that require mechanical/electrical equipment, the municipal wastewater industry is constantly innovating and replacing aging technology with new offerings. Now, this is the case for the City’s existing UV treatment system whose model will no longer be supported. Although the City has purchased spare components to maintain operation for the next several years, the time has come for replacement.
The City commissioned a UV Feasibility Study, completed in March 2022, to identify replacement alternatives and establish an opinion of probable project cost. On April 4, 2022, the City advertised a Request for Proposal (RFP) to solicit proposals from engineering design teams (Consultants) to design and develop construction bid documents for replacement of the existing UV treatment system. As required by state Public Contracts Code, the RFP utilized a Pacifica City Council 2
April 10, 2023
qualifications-based selection (QBS) approach to ensure the City selected the most qualified Consultant for this complex and critical Project. This process resulted in selecting Carollo Engineers (Carollo), a national leader in UV treatment systems, who is currently progressing with Project design. The Project’s first milestone was achieved in December 2022: completion of the Preliminary Design Report (PDR). The PDR developed the basis of design for mechanical, electrical, and structural components; confirmed viable UV replacement technologies and preliminary layout concepts; and specified all key design, operations, and maintenance criteria for UV system replacement. One of the Project’s goals is to achieve a fully functioning replacement UV system as soon as is feasible. Two constraints weigh heavyily on achieving this goal. First, Project construction needs to take place when plant flows are the lowest, namely late spring to late fall. Second, issues of supply chain and long-lead time items are significantly impacting procurement of advanced treatment technology like UV equipment. Therefore, City staff and Carollo examined procurement alternatives to address these issues and decided to pre-purchase the UV equipment. Purchasing the UV equipment now addresses long lead time issues and will result in ready-to-install equipment arriving at the CCWRP in May 2024. The General Contractor will have already been selected by then and be onsite to begin the installation during the low flow dry season.
Unlike certain equipment procurement whose selection is dictated by capital cost, UV equipment has significant operations and maintenance costs with power cost being a major contributor. Over a thirty-year lifetime, typical capital cost may only be slightly greater than operations and maintenance cost (adjusted for discount and inflation rates). Furthermore, UV equipment has significant effort associated with maintenance and cleaning of the UV lamps.
Given that different vendors have different numbers of lamps and designs for removing and cleaning lamps, this criterion was included in the evaluation. Therefore, three criteria were developed for bid evaluation: capital cost; operations and maintenance cost and lamp maintenance and cleaning. These criteria have the following maximum values whose total maximum point value equals 100: 40 points: capital cost; 40 points: operations and maintenance cost; and 20 points: lamp maintenance and cleaning. Note that operations and maintenance cost include lamp and ballast replacement cost; lamp wiper and sleeve replacement cost; UV sensor calibration and replacement; labor costs; and power costs.
On February 17, 2023, the City advertised for procurement of UV Disinfection Equipment Replacement to solicit bids for furnishing UV Disinfection equipment. Bids were opened March 15, 2023, with results summarized in the table below. Due to space and access conditions associated with retrofitting the existing below grade UV system, only two vendors had offerings that would meet the procurement specifications: Trojan Technologies and Xylem/Wedeco. The tables below summarize the bid evaluation. The first table summarizes the capital cost, and operations and maintenance cost.
Cost Criteria Trojan Technologies Xylem/Wedeco
Capital $1,136,603.75 $1,123,271
Operations & Maintenance Cost1(30 years) $809,000 $1,116,000 Notes:
1. Revised numbers per Carollo’s evaluation. Revision did not change the rank ordering for this criterion.
Referring to the table above, for capital cost, the Trojan Technologies offering is approximately $13,000 (1%) greater than the Xylem/Wedeco offering. For operations and maintenance cost, the Trojan Technologies offering is approximately $300,000 (27%) less than the Xylem/Wedeco offering. Summing capital cost and operations and maintenance cost equates to the 30-year Life Cycle Cost (LCC). LCC favors the Trojan Technologies offering by approximately $290,000 (26%) less than the Xylem/Wedeco offering. The second table below shows the three evaluation Pacifica City Council 3
April 10, 2023
criteria used to rank the bidders: capital cost, operations and maintenance cost, and lamp maintenance and cleaning.
Evaluation Criteria Trojan Technologies Xylem/Wedeco
Capital Cost 40 ($1,136,603.75) 40 ($1,123,271.00)
Operations & Maintenance Cost (30 years) 40 ($809,000.00) 25 ($1,116,000.00) Lamp Maintenance & Cleaning 20 16
Total Score 100 81
Based on the above scoring, City staff recommends procuring the Trojan Technologies offering, which is the TrojanSignaTM 2 Row UV System. This system is sized to facilitate retrofits like what needs to be done at the CCWRP. In addition, the City has a long history of working with Trojan Technologies dating back to the commissioning of the CCWRP in the year 2000.
The following table summarizes the schedule anticipated for the Ultraviolet Disinfection (UV) Equipment Procurement:
Description Date
Council Approval of Procurement Agreement April 10, 2023 Executed Agreement/Notice to Proceed Late April 2023
Favorably Reviewed Shop Drawings Mid July 2023
UV Equipment Delivered to CCWRP Mid May 2024
The above proposed schedule will allow Project Construction to commence in Spring 2024.
Approval of the recommendation will allow the Project to move forward and support meeting the 2024 construction timeframe and support bringing the CCWRP into the next generation of energy efficient UV technology to disinfect wastewater for discharge to Calera Creek. Therefore, the City Manager recommends the Council approve the Agreement to Purchase Ultraviolet Disinfection Equipment for the Calera Creek Water Recycling Plant (Attachment 1) between the City of Pacifica and Trojan Technologies in the amount of $1,136,603.75 and approve the budget authority in the amount of $1,250,264.13 which includes 10% contingency in the amount of $113,660.38 in connection to the Ultraviolet Disinfection (UV) Replacement Project (P034).
ALTERNATIVE ACTION:
Council may choose not to approve the Purchase Agreement for Ultraviolet Disinfection Equipment for the Calera Creek Water Recycling Plant; however, this will result in project delays, possible increase of construction costs, and increased possibility of equipment failure whose replacement parts may not readily be available. Staff does not recommend this alternative action.
RELATION TO CITY COUNCIL GOALS AND WORK PLAN:
Approval of the Purchase Agreement for Ultraviolet Disinfection Equipment for the Calera Creek Water Recycling Plant is consistent with the following Council adopted Goals:
• Stewardship of City Infrastructure and Maintaining a Safe Community: This design project will develop bid documents whose construction will replace technology that will Pacifica City Council 4
April 10, 2023
no longer be supported by the vendor; increase Calera Creek Water Recycling Plant energy efficiency; maintain the CCWRP National Pollutant Discharge Elimination System (NPDES) Permit, supply recycled water to North Coast County Water District; and deliver highly treated wastewater to help preserve the Calera Creek wetland.
FISCAL IMPACT:
The cost of the Purchase Agreement is $1,136,603.75. City staff recommends including a 10% contingency to the Purchase Agreement for any additional work due to the complexity of the Project. The Source and Use of Funds spreadsheet is shown below.
Total Use of Funds
Purchase Agreement - Ultraviolet $ 1,136,603.75
Disinfection Equipment
Contingency (10%) $ 113,660.38
Total Cost $ 1,250,264.13
Total Project Source
Enterprise Fund (Fund 34) Account No. $1,250,264.13
34.900000.52800.P034.000
Total Source of Funds $1,250,264.13
No additional budget authority is necessary as sufficient funds have been allocated in the Wastewater Enterprise Fund FY 2022-23 budget for this project. The total cost of $1,250,264.13 is within the Ultraviolet Disinfection Replacement Project budget component of $1,600,000 allocated for UV Equipment.
ORIGINATED BY:
Public Works - Wastewater Division
ATTACHMENT LIST:
Attachment_1_Purchase Agreement_Trojan_UV Disinfection Equipment (PDF) Pacifica City Council 5
April 10, 2023
RESOLUTION NO. _________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PACIFICA AUTHORIZING AN
AGREEMENT TO PURCHASE ULTRAVIOLET (UV) DISINFECTION EQUIPMENT FOR THE
CALERA CREEK WATER RECYCLING PLANT RELATED TO THE UV DISINFECTION
REPLACEMENT PROJECT
WHEREAS, the City Council adopted the Capital Improvement Program 2022-2027 at the June 27, 2022 Council Meeting which included the Ultraviolet Disinfection Replacement Project (Project); and
WHEREAS, during the FY 2022-23 budget approval process, the City Council approved sufficient funding on Ultraviolet (UV) Disinfection Equipment for the Project; and WHEREAS, consistent with the City of Pacifica’s Purchasing Policy (Administrative Policy No. 76), the City of Pacifica advertised a Request for Proposals (RFP) to Purchase UV Disinfection Equipment for the Calera Creek Water Recycling Plant related to the Project in February of 2023; and
WHEREAS, consistent with the State Public Contracts Code, the RFP utilized a qualifications-based selection (QBS) approach to ensure the City selected the most qualified vendor to furnish UV Disinfection Equipment for this complex and critical Project; and WHEREAS, the highest ranking vendor was Trojan Technologies; and NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Pacifica to authorize the City Manager to execute an Agreement with Trojan Technologies in the amount of $1,136,603.75 for Ultraviolet Disinfection Equipment in connection to the Ultraviolet Disinfection Replacement Project and approve budget authority in the amount of $1,250,264.13 which includes 10% contingency in the amount of $113,660.38; and authorize the City Manager to execute all documents related to the project equipment purchase.
Pacifica City Council 6
April 10, 2023
• • • • •
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Pacifica, California, held on the 10th day of April, 2023, by the following vote:
AYES, Councilmembers:
NOES, Councilmembers:
ABSENT, Councilmembers:
ABSTAIN, Councilmembers:
_________________________________
Tygarjas Twyrls Bigstyck, Mayor
ATTEST: APPROVED AS TO FORM:
______________________________ _________________________________ Sarah Coffey, City Clerk Michelle Kenyon, City Attorney