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AWARD A CONSTRUCTION CONTRACT TO POWER ENGINEERING CONSTRUCTION CO. FOR THE RWCF DIGESTER GAS PIPELINE EXPANSION JOINTS REPLACEMENT AND TRANSFER FUNDS FROM EXISTING CAPITAL PROJECTS
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Approve the filing of Notice of Exemption No. NOE13-22 under the California Environmental Quality Act (CEQA) for the RWCF Digester Gas Pipeline Expansion Joints Replacement, Project No. UW21013 (Exhibit 1 to the Resolution).
2. Approve the project plans and specifications for the RWCF Digester Gas Pipeline Expansion Joints Replacement, Project No. UW21013 (Exhibit 3 to the Resolution).
3. Award a $144,665.00 Construction Contract to Power Engineering Construction Co. of Alameda, CA for the RWCF Digester Gas Pipeline Expansion Joints Replacement, Project No. UW21013 (Exhibit 2 to the Resolution).
4. Transfer funds in the amount of $98,000 from existing capital projects UW21012 ($53,000) and UW20014 ($45,000) to the RWCF Digester Gas Pipeline Expansion Joints Replacement (Project No. UW21013),
It is further recommended that the City Manager be authorized to take all necessary and appropriate actions to carry out the purpose and intent of this resolution.
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Summary
The Municipal Utilities Department operates and maintains the Regional Wastewater Control Facility (RWCF), which collects and treats an average of 33 million gallons of wastewater daily, from approximately 116,000 sewer customers in the City and nearby San Joaquin County. A byproduct of the sludge digestion process is the production of digester gas. The digester gas produced by the anaerobic digestion process is transferred through a steel pipeline and used as a fuel source for the operation of cogeneration engines which provide electric power for RWCF operations.
The existing digester gas steel pipeline contains rubberized expansion joints which have exceeded their useful life since the digester pipeline installation in 1997. To maintain the reliability of the cogeneration system at the RWCF, the digester gas pipeline’s rubberized expansion joints will be replaced.
If approved, this action will authorize the award of a Construction Contract in the amount $144,665.00 to Power Engineering Construction Co. of Alameda, CA.
DISCUSSION
Background
The RWCF uses anaerobic digesters for the stabilization of wastewater sludge. A byproduct of the sludge digestion process is the production of digester gas (primarily methane), which can be used as a fuel source to power cogeneration engines to generate electricity. Cogeneration is the process by which the digester gas is used as a clean fuel source in internal combustion engines to generate electricity and heat.
The gases produced by the anaerobic digestion process is collected and transferred to the cogeneration facility by a steel pipe network. The steel pipe network contains various rubberized expansion joints for thermal expansion of the steel pipe. The expansion joints are to be removed and replaced with new rubberized expansions to further extend the reliability of the cogeneration system network.
Present Situation
On June 3, 2022, the MUD advertised the project in the Stockton Record and posted to the City’s Bid Flash webpage. Additionally, a notice with a brief project description was mailed to 104 contractors holding a Class “C-A” license and 3,185 notifications were sent through Ask Stockton.
A non-mandatory pre-bid conference meeting was held on June 16, 2022, with two (2) prospective bidders in attendance. A field visit was conducted after the pre-bid conference. On Thursday, June 30, 2022, five (5) sealed bids were received and publicly opened by the City Clerk with the following results:
|
COMPANY NAME |
LOCATION |
BID PRICE |
|
Power Engineering Construction Co. |
Alameda, CA |
$144,665.00 |
|
TCB Industrial, Inc. |
Modesto, CA |
$149,101.00 |
|
GSE Construction Company Inc. |
Lathrop, CA |
$176,800.00 |
|
TNT Industrial Contractors, Inc. |
Sacramento, CA |
$204,194.00 |
|
Trinet Construction, Inc. |
San Francisco, CA |
$366,000.00 |
|
Engineer’s Estimate |
|
$160,000.00 |
The bid received by the apparent low bidder, Power Engineering Construction Co., of Alameda, CA, is regular in all aspects and compliant with the project specifications.
It is recommended that the City Council award a Construction Contract in the amount of $144,665.00 to Power Engineering Construction Co. of Alameda, CA, for the RWCF Digester Gas Pipeline Expansion Joints Replacement, Project No. UW21013.
Local Employment Ordinance
The contract amount is over $100,000 and subject to the Local Employment Ordinance (Stockton Municipal Code, Section 3.68.095), which states that contracts over $100,000 shall contain provisions pursuant to which the contractor promises to make a good faith effort, with the assistance of local labor union hiring halls or community organizations designated by the City to employ qualified individuals who are, and have been for one year prior to the effective date of the contract, residents of Stockton in sufficient numbers so that no less than 50 percent of the contractor’s total construction work force, including any subcontractor work force, measured in labor work hours, is comprised of Stockton residents. The Local Preference Ordinance (Stockton Municipal Code, Section 3.68.090) has no effect as the bidders are located outside of Stockton and San Joaquin County. The project is under $1,000,000 and not subject to the Community Workforce and Training Agreement.
Environmental Clearance
It has been determined that this action/project is categorically exempt from the requirements of the California Environmental Quality Act (CEQA) guidelines as specified under Article 19, Section 15302(c) Class 2 Replacement or reconstruction of existing utility systems and/or facilities involving negligible or no expansion of capacity.
In addition, the proposed project is consistent with the Government Code Section 65402 and the 2040 Stockton General Plan (Land Use Policy 6.3) because it improves existing utility services to ensure that all neighborhoods have access to well-maintained public facilities and utilities that meet community service needs.
FINANCIAL SUMMARY
The resolution includes the action to provide sufficient funding to award a Construction Contract to Power Engineering Construction Co., in the amount of $144,665.00.
Funds are to be transferred in Fiscal Year 2022-23 from the existing capital projects below to the RWCF Digester Gas Pipeline Expansion Joints Replacement, Project No. UW21013. Projects UW20014 and UW21012 have been completed and will be closed out.
|
Project |
Amount Available to Transfer |
|
UW20014 - Cogeneration Engine No. 3 Overhaul and Fuel Blending System Installation |
$45,000 |
|
UW21012 - RWCF Digester Gas Holder Coating Replacement |
$53,000 |
|
TOTAL |
$98,000 |
There is no impact to the City’s General Fund or any other unrestricted fund as a result of taking the recommended actions.