TO:Andrew P. Powers, City Manager
FROM:Clifford G. Finley, Public Works Director
DATE:January 16, 2024
SUBJECT: Hill Canyon Treatment Plant Digester Backup Boiler Equipment Purchase (CI 5615)
RECOMMENDATION:
1. Authorize purchase of boiler equipment for the Hill Canyon Treatment Plant (HCTP) in an amount not to exceed $190,000 from Parker Boiler Co. (Los Angeles, CA) as part of Digester Backup Boiler Upgrade Project (CI 5615).
2. Approve a single-source designation for Parker Boiler Co. for the purchase of boiler equipment.
3. Approve budget appropriation transfer and expenditure in FY 2023-24 in the amount of $190,000 from A/C #624-8250-682-8300 (Water Fund, Contracted Services/Improvements) to A/C #624-8250-685-8400 (Wastewater Fund, Equipment over $5,000) (CI 5615).
4. Find that the Project is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to 14 CCR 15302.
FINANCIAL IMPACT:
No Additional Funding Requested. $399,138 is included in the Adopted FY 2023-24 Wastewater Capital Budget (CI 5615). Estimated total project cost is $980,000 and additional appropriation will be requested at the time of construction award if necessary, depending on the actual bids received.
BACKGROUND:
The City’s HCTP operates three anaerobic digesters that process the digestate and fats, oil, and grease (FOG) waste delivered to the facility. Anaerobic digestion requires that a consistent temperature be maintained for the treatment process. A boiler is utilized to help maintain the critical temperature in the digesters.
HCTP Digester Backup Boiler Equipment Purchase (CI 5615) January 16, 2024
8 8
3 The existing boiler was installed in the mid-1990s. The boiler can utilize natural gas or processed digester gas to provide heat. Around 2007, a cogeneration system was added to the treatment plant to produce electrical power from the digester gas. A byproduct of the energy generation process is heat, hence the term ‘cogeneration’ which signifies combined heat and power generation. The heat from the cogeneration system became the primary heat source for the digesters, and the boiler became the secondary source. Recent issues with the cogeneration system, combined with the age and condition of the boiler, led to operational challenges and increased natural gas usage instead of digester gas to maintain the temperature of the digesters. The boiler is necessary as a backup heat source for when the cogeneration system is offline and will provide heat to keep FOG liquified in the new HCTP FOG Station, currently under construction (CI 5441).
Replacement of the boiler was also a recommendation in the 2020 HCTP Master Plan.
On October 11, 2022, City Council awarded a Professional Services Agreement to AEPC Group, LLC (Santa Clarita, CA) to serve as consultants responsible for engineering design services and the preparation of construction contract documents for the Digester Backup Boiler Upgrade Project. The consultant researched boilers compatible with HCTP’s permit requirements issued by the Ventura County Air Pollution Control District (VCAPCD) and required service conditions. As a result of their research, the consultant recommended Parker Boiler Co.’s 205 Series Condensing Hot Water Boiler and associated components.
The Parker Boiler also presented the shortest lead time for equipment delivery, estimated at approximately 10 weeks.
The design consultant completed the construction project plans and specifications for the boiler upgrade project and on November 7, 2023, City Council authorized staff to advertise the project for construction bids.
DISCUSSION/ANALYSIS:
Procuring the recommended boiler ahead of the construction project will ensure the lead time to receive the equipment will align with the construction timeline, avoid contractor markup for procurement, and expedite the process for construction submittals, review, and approval.
The estimated project costs are as follows:
Design and Engineering (previous) $ 84,825
Boiler Equipment Purchase Authorization (this action) $190,000 Construction Phase (future) $705,175
Total Estimated Cost $980,000
HCTP Digester Backup Boiler Equipment Purchase (CI 5615) January 16, 2024
8 8
3 The overall project cost (including contingencies, design services during construction/testing, and project management) is estimated at $980,000. Additional appropriation at the time of construction award will be requested if necessary, depending on the actual bids received.
Given the thorough research and final recommendation from the consultant, a single-source designation to Parker Boiler Co. is requested. Staff recommends that City Council authorize the purchase of Parker Boiler Co.’s boiler equipment and components, not to exceed $190,000, acknowledging its unique suitability for the application through a single source designation and to expedite the project efficiently.
This project is categorically exempt from CEQA per Section 15302 (replacement/reconstruction of an existing facility).
This project meets City Council’s Top Ten Priorities #6, “Public Works + Infrastructure Investments.”
Community Outreach: This project will be limited to work at the HCTP and is not expected to impact any neighboring residences. The work will occur at the north end of the plant and will have a limited impact on plant operation. Construction- related impacts to hiking trail users will be minimal.
CIP PROJECT PRIORITY (as outlined in FY 2023-24 and FY 2024-25 CIP Program Budget)
Priority One – Addresses health and safety, legal and regulatory requirements, or a top City Council Priority.
COUNCIL GOAL COMPLIANCE:
Meets the following City Council goal:
F. Provide and enhance essential infrastructure to ensure that the goals and policies of the Thousand Oaks General Plan are carried out and the City retains its role and reputation as a leader in protecting the environment and preserving limited natural resources.
PREPARED BY: Kim Sherman, Sr. Purchasing Specialist
Tim Mooney, Wastewater Treatment Plant Superintendent
DPW: 850-20\ev\011624\CI 5615\ HCTP Digester Backup Boiler Purchase staff report.docx