FINAL CONSTRUCTION WORK AUTHORIZATION
60% DESIGN AND PREPARATION OF A GUARANTEE MAXIMUM PRICE FOR THE
BIOSOLIDS HANDLING EQUIPMENT AND THE PURCHASE OF BATTERIES AND
SUBSTATION EQUIPMENT FOR THE MICROGRID
Project
I order to continue to move this microgrid and biosolids handling projects along, RWS is recommending two task/actions:
• Order battery and switch gear and transformer equipment to meet the Self - Generation Incentive Program (SGIP) grant deadline, and • Approve the biosolids handling 60%desing and GMP preparation.
Scope of Work
SGIP Gant for Batteries
The City along with RWS has secured a SGIP grant from Southern California Edison in the amount of $1.1 million. It pays for 50% of the battery equipment. The grant is set to expire at the end of March 2023. In order to perfect the grant, the City must place a deposit of 50% of the cost of the batteries by March 2023 and install and commission the battery and solar system by April 2024.
The total cost of the batteries is approximately $2.2 million, the deposit required is $794,412. In addition, the city will need to purchase the switch gear and transformer which is an additional $539,051. The total request is $1,333,463 for the deposit and purchase of equipment. The City would be at risk for this amount if the third-party review shows that the financial benefit of the microgrid project does not pencil out. In the event that the microgrid project does not move forward the batteries can be used in other areas of the City.
Biosolids Handling 60% Design and GMP
The biosolids handling equipment is in pressing need of replacement as soon as possible to ensure continuous plant operations. The equipment is aging and requires weekly attention and repairs. The biosolids handling project is at the stage of equipment selection but needs additional work to reach a final GMP.
In an effort to protect the City from any concerns related to project cost uncertainty, the project development team comprised of AECOM and W.M. Lyles proposes to take the following steps:
a. Provide the City with the Biosolids Study (10% design) that includes solids handling cost estimate covering design, engineering, procurement, construction, and installation. This study has been completed and provide to the City.
b. Immediately request submittal packages (including shop drawings and cost estimates) from vendors in order to establish competitive budget estimates, recommend technologies, and to expedite design and procurement of biosolids handling equipment.
c. Prepare a 60% design based upon the vendor submittals and develop a GMP for the biosolids handling project.
d. Manage the contingency down to a more acceptable level on an open book basis with competitive bidding through 30% to 60% design.
This approach enables the City to move forward with confidence in the process while appreciating the rigor of moving to 60% design. Furthermore, expediting equipment specifications is likely to cut at least several months off the process and delivery of a GMP with effective pricing and an acceptable contingency in Summer 2023.
The next step is to authorize $720,000 for the development of biosolids handling equipment submittal packages by preferred vendors. This process follows a competitive negotiation format in which we request information from multiple vendors, then consider cost and performance attributes to select the technology and vendor which offers the best lifecycle value. The submittal packages, including shop drawings, technical specifications, and cost estimates, will advance the procurement process through the competitive evaluation initiated by AECOM’s 10% design study.
And finally approve advancement of biosolids project engineering development towards 60% design and GMP incurring a cost of $1,113,600. This cost covers the scope for AECOM, Veolia, and W.M. Lyles to develop the 60% design and GMP. This approval advances solids handling design and engineering process to GMP in a timely manner.
The total cost for developing the submittal packages and the 60% design and GMP is $1,833,600.
Cost Estimate
Down payment for batteries for microgrid project - $794,412 Switch Gear and Transformer for microgrid project - $539,051 Shop Drawings of biosolids handling equipment form selected vendors - $720,000 60% Design and preparation of biosolids handling GMP - $1,113,600
The total cost for This FCWA is $3,167,063.
Schedule
Date for substantial & final completion to be determined.
Contractor Firm Proposals
Informaiton provided by RWS.
Approved By Rialto City Council/Rialto Utility Authority:
Date: February 14, 2023, Tab Item No.
Issued by:
Rialto Utility Authority
By: ______________________
Name: Thomas J. Crowley, P.E.,
Title: Utilities Manager
Date: _____________________
Received by:
Rialto Water Services, LLC
By: ______________________
Name: ___________________
Title: ____________________
Date: _____________________