CITY OF PACIFICA
COUNCIL AGENDA SUMMARY REPORT
7/8/2024
1 SUBJECT:
Resolution to Approve Purchase Agreement with Thermal Process Systems for Digester - ATAD Modification Phase 3 Project (P002)
RECOMMENDED ACTION:
Adopt a Resolution:
A. Approving the City Manager to award and execute a sole source Purchase Agreement (Attachment 1) with Thermal Process for Digester - ATAD Modification Phase 3 Project (P002); and
B. Approving the Purchase Agreement with Thermal Process Systems in an amount of $179,647.00; and
C. Authorizing budget authority in the amount of $206,594.00, which includes a contingency in an amount of fifteen percent (15%) of the Contract amount; and D. Authorizing staff to execute future change orders not to exceed the contingency amount; and
E. Authorizing the City Manager and Designated Personnel to execute all documents related to the Digester - ATAD Modification Phase 3 Project (P002).
STAFF CONTACT:
Dan Patten, Engineering Manager
(650) 738-4660
[email protected]
Louis Sun, P.E., Deputy Director of Public Works (Wastewater) (650) 738-4662
[email protected]
Lisa Petersen, P.E., Director of Public Works
(650) 738-3770
[email protected]
BACKGROUND/DISCUSSION:
The residual semi-solid material that is produced during sewage treatment is commonly known as sludge or bio-solids. The treatment and proper disposal of sludge are critical to compliance with requirements by the State Water Resource Control Board (Water Board) and California Environment Protection Agency (CalEPA). In addition, the two objectives for treating sludge before final disposal are: to reduce its volume, resulting in less hauling cost, and to stabilize the organic materials so the sludge does not have an offensive odor and can be handled without causing a nuisance or be a health hazard.
The Autothermal Thermophilic Aerobic Digestion (ATAD) process is used for the treatment of sludge at the Calera Creek Water Recycling Plant (Plant). The Plant's ATAD process involves four ATAD Tanks (Tank No.1 through No. 4), and it currently yields Class A, high-quality, Pacifica City Council 2
July 08, 2024
pathogen-free products. However, improvements are periodically needed to keep up with ATAD's latest technology.
In April 2009, Phase 1 of the ATAD Modification Project was completed. This resulted in savings to the Calera Creek Water Recycling Plant operation, due to the decrease in chemicals purchased, a reduction in sludge haul trips and a huge reduction in offensive odors discharged.
On March 13, 2017, the Council approved the consultant agreement with Freyer and Laureta, Inc. to perform the design services for Phase 2 of the ATAD Improvement Project (Phase 2).
Phase 2 addressed ATAD Tank No. 1 and No. 2, and it further ensures odor reduction, even better-quality sludge and continuous cost savings.
During the Council meeting of January 22, 2018, the Council approved the purchase agreement with Tesco for the supply and installation of communication control panels as part of upgrading the Plant’s main Programmable Logic Controller (PLC) - one of the pre-construction stages of Phase 2. Following this purchase, the next step is the upgrading and reprogramming of the ATAD PLC. This is another essential part of Phase 2 which includes the installation of centrifugal jet pumps, foam control splash cones, actuated dilution air damper, fiberglass pipes, and gate valves.
Thermal Process Systems (TPS) owns the proprietary Thermal Process System ATAD, which is currently being used at the Plant. TPS staff has exclusive expertise on how this ATAD system works and has been providing outstanding technical support to the City since the installation of the Thermal Process System ATAD. Changing the current Thermal Process System ATAD would be very expensive and may result in an inferior system.
On June 22, 2023, during the FY 2023-24 Capital Improvements Program (CIP) budget approval process, the Council approved funding for the Digester - ATAD Modification Phase 3 Project (P002). The Digester - ATAD Modification Phase 3 Project will continue and complete the ATAD upgrade by completing the remaining ATAD Tank No. 3 and No. 4. This project will upgrade the City’s wastewater treatment plant's sludge treatment and odor control processes.
For these reasons, the City Manager is recommending the City Council approve a resolution authorizing the City Manager to award and execute a sole source Purchase Agreement (Attachment 1) for $179,647.00, authorize a budget authority of $206,594 that includes a 15% contingency of the contract amount, and authorize the City Manager to execute all documents related to the Digester - ATAD Modification Phase 3 Project (P002).
ALTERNATIVE ACTION:
The Council may choose not to approve the sole source purchase with Thermal Process Systems, however, doing so would reduce the wastewater treatment plant's sludge treatment and odor control process capabilities and will likely cause operational issues at CCWRP. The City Manager does not recommend this alternate action.
RELATION TO CITY GOALS AND WORK PLAN:
Approval of the construction contract is consistent with the following Council adopted Goals:
• Stewardship of City Infrastructure, streets and facilities: this includes repairing/replacing outdated city facilities such as city hall, libraries, fire stations, etc., improving streets, and responding to impacts of sea level rise. This construction project will improve the existing wastewater treatment facility.
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FISCAL IMPACT:
The Source and Use of Funds spreadsheet is shown below:
Use of Funds
Master Agreement with Thermal Process Systems $179,647.00 Contingency (15%) $26,947.00
Total Use of Funds $206,594.00
Project Fund Source
Enterprise Fund (Fund 34)
Account No 34.900000.52800.P002.000 $325,000.00
Total Project Fund Source $325,000.00
Estimated Project Fund End Balance $118,406.00
No additional budget authority is necessary as sufficient funds have been approved in the Wastewater Enterprise Fund for FY 2023-24 to pay for this project.
ORIGINATED BY:
Public Works - Wastewater Division
ATTACHMENT LIST:
Attachment 1 - Pacifica-Purchase Agreement Thermal Process Systems signed (PDF) Pacifica City Council 4
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RESOLUTION NO. _______
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PACIFICA
APPROVING A SOLE SOURCE PURCHASE AGREEMENT BETWEEN THE CITY OF PACIFICA AND THERMAL PROCESS SYSTEM FOR THE DIGESTER – ATAD MODIFICATION PHASE 3 PROJECT (P002) FOR $179,647; AUTHORIZING A BUDGET AUTHORITY IN THE AMOUNT OF $206,594.00, WHICH INCLUDES A CONTINGENCY OF (15%) OF THE CONTRACT AMOUNT; AND AUTHORIZE THE CITY MANAGER AND
DESIGNATED PERSONNEL TO EXECUTE ALL DOCUMENTS RELATED TO DIGESTER ATAD MODIFICATION PHASE 3 PROJECT AND NOT TO EXCEED THE BUDGET AMOUNT WHEREAS, during the FY 2023-24 budget approval process, the City Council approved funding for the Digester – ATAD Modification Phase 3 Project (P002); and WHEREAS, The Digester - ATAD Modification Phase 3 Project will continue and complete the ATAD upgrade by completing the remaining ATAD Tank No. 3 and No. 4. This project will upgrade the City’s wastewater treatment plant's sludge treatment and odor control processes; and
WHEREAS, the Thermal Process Systems (TPS) owns the proprietary Thermal Process System ATAD, which is currently being used at Calera Creek Water Recycling Plant; and WHEREAS, the project will improve operations at CCWRP and help protecting public health and our environment.
NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Pacifica to approve the sole source Purchase Agreement between the City of Pacifica and Thermal Process Systems in the total amount of $179,647 for Digester – ATAD Modification Phase 3 Project (P002); authorizing a budget authority in the amount of $206,594.00, which includes a contingency of fifteen percent (15%) of the contract amount; and authorize the City Manager to execute all documents related to the project.
• • • • •
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Pacifica, California, held on the 8
th day of July 2024, by the following vote:
AYES, Councilmembers:
NOES, Councilmembers
ABSENT, Councilmembers:
ABSTAIN, Councilmembers:
_________________________________
Sue Vaterlaus, Mayor
ATTEST: APPROVED AS TO FORM:
______________________________ _________________________________ Sarah Coffey, City Clerk Michelle Kenyon, City Attorney