RECOMMENDATION TO COUNCIL
Staff recommends that City Council authorize the Environmental Utilities Director or his designee to approve and pay for contract change orders for the Design-Assist and Construction Agreement for the Pleasant Grove Wastewater Treatment Plant Energy Recovery Project with W.M. Lyles Company that could increase the original contract amount ($23,349,729) by no more than 10% ($2,334,973) or not to exceed a total contract amount of $25,684,702.
| BACKGROUND
The City of Roseville (City) owns and operates the Pleasant Grove Wastewater Treatment Plant (PGWWTP) on behalf of the South Placer Wastewater Authority (SPWA) partner agencies. The PGWWTP Energy Recovery Project (Project) is currently being constructed as a separate parallel project to the PGWWTP Expansion Project and is being built on City-owned property located adjacent to, and immediately south of the existing PGWWTP fence line.
The Project is adding energy-recovery facilities at the PGWWTP that will beneficially utilize digester gas (which has a high methane fraction) produced by the new treatment processes constructed as part of the PGWWTP Expansion Project. The Project includes the following facilities: three microturbines (with plans for possible future fourth unit), receiving facility for High Strength Waste (such as pre-processed food waste and fats, oils and grease), systems for conditioning and upgrading the digester gas to produce renewable compressed natural gas r(CNG) to be used by the City’s solid waste collection vehicles as fuel, a fueling station, and associated parking.
The newly added microturbines will produce electrical power to offset a portion of the PGWWTP’s power demands and the heat needed for the anaerobic digestion process, thereby making it possible for all the methane gas generated from the PGWWTP Expansion Project to be consumed and converted to heat and electricity.
On November 6, 2019, the City Council approved and awarded a Design-Assist and Construction Agreement to W.M. Lyles Company for the Project in the amount of $23,394,729 (Attachment A). In addition, the City Council authorized the Environmental Utilities Director or his designee to approve and pay for contract change orders for the Project that could increase the contract amount by no more than 5% or $1,169,736.
W.M. Lyles received the Notice to Proceed on November 13, 2019 which began the approximate 27-month period of construction of the Project with completion expected in February 2022. The current approved change orders on the Project total $412,564; however the next change order is expected to be approximately $546,000 which would use approximately $958,564 of the previously approved 5% change order allowance of $1,169,736. It is expected that the total change orders will continue to increase over the next 9 months of construction and soon exceed the approved 5% allowance; therefore staff recommend increasing the change order allowance from 5% to 10% to assure there is enough contract allowance to complete this Project.
The cause of the Project construction changes is based on many factors including material suppliers issues due to COVID-19, City staff requested changes due to lessons learned on the recent Dry Creek Wastewater Treatment Plant Cogeneration Project, City standards updates, clarifications to the design documents and other recommended improvements to the construction through the design-assist construction process.
| FISCAL IMPACT
The cost of the agreement is $23,394,729 and any approved change orders will be expended over a 27-month period. Funding for this Project is provided under the capital improvement program for SPWA. The SPWA Board has authorized the Project and adequate budget to fund the requested increase in change order allowance from $1,169,736 to $2,334,973. This project is jointly funded between SPWA Regional Partners (approximately 65% City of Roseville, 11% Placer County and 24% South Placer Municipal Utility District), as well as, the following grants and loan:
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California Energy Commission grant for up to $3,000,000, which was approved at the July 17, 2019, City Council Meeting (Resolution No. 19-334).
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Carl Moyer Grant through the Placer County Air Pollution Control District for up to $180,000, which was approved at the May 15, 2019, City Council Meeting (Resolution No. 19-205).
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State Water Resources Control Board State Revolving Fund loan for up to $32,748,824, which was approved at the April 15, 2020, City Council Meeting (Resolution No. 20-110).
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ENVIRONMENTAL REVIEW
Implementation of the PGWWTP Energy Recovery Project was previously evaluated in the Pleasant Grove Wastewater Treatment Plant Expansion and Energy Recovery Project Final Initial Study/Mitigated Negative Declaration (IS/MND) (SCH# 2016122040) (certified by the City Council on April 6, 2017), and the Addendum to the IS/MND (SCH# 2016122040) (certified by the City Council on November 7, 2018). The improvement plans included in the design-assist and construction agreement are consistent with the project evaluated in the certified Final IS/MND and the Addendum, and consequently no additional CEQA action is required for the design-assist and construction agreement contract change order allowance approval.
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CITY COUNCIL STRATEGIC PLAN/OVERARCHING GOALS
Goal F - Invest in well-planned infrastructure and growth
| Respectfully Submitted,
Tracie Mueller, Senior Engineer
Richard Plecker, Environmental Utilities Director | | | 
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Dominick Casey, City Manager
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