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Report regarding a resolution approving and authorizing the City Manager to execute a purchase agreement with Atlantis Water Management Victoria for the purchase of storage tank materials for the construction of the Orange Memorial Park Storm Water Capture Project, in an amount not to exceed $509,500. (Bianca Liu, Associate Engineer and Robert Dusenbury, Lotus Water)
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RECOMMENDATION
Recommendation
Staff recommends that the City Council adopt a resolution approving and authorizing the City Manager to execute a purchase agreement with Atlantis Water Management Victoria for the purchase of storage tank materials for the construction of the Orange Memorial Park Storm Water Capture Project, in an amount not to exceed $509,500.
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BACKGROUND/DISCUSSION
Effective on April 26, 2017, the California Department of Transportation (“Caltrans”) agreed to fund $9,500,000 to the Orange Memorial Storm Water Capture Project (“Project”) through a Cooperative Implementation Agreement No. D43CIASF0001 (the “CIA”) between Caltrans and the City of South San Francisco (“City”). The City entered into a contract with consultant Lotus Water on January 2, 2018 to provide design, permitting, and construction support services for the Project, which is scheduled to complete 60% design on June 7, 2019 and enter the 90% design phase at that time. The Project construction costs are fully funded through the CIA with no matching funds required from the City.
The Project consists of constructing a diversion and treatment structure to re-direct and treat stormwater runoff to remove trash, debris and sediment before storing the water in underground, multi-chambered storage reservoir. The storage reservoir will also provide water treatment and disinfection so that the water may eventually be used for irrigation in and around the Orange Memorial Park.
As a part of the Project, the City anticipates that it will need to purchase storage tank materials using CIA funding after the Project designs are complete. However, as part of the agreement, the CIA funds would be allocated by fiscal year and each allocation would need to be spent within three years. Caltrans allocated $1 million for Fiscal Year 2016-2017 towards the Project, with additional funds over the next five fiscal years to pay for the total project costs (estimated at $9.5 million). Any funds obligated before June 30, 2017, must be spent by June 30, 2019, and the funds obligated in the subsequent year will have one additional year.
Due to delays in the Project schedule, the Project design is now scheduled to be completed by December 2019. Waiting till after December 2019 to purchase the storage tank materials would be beyond the expiration of the CIA funds allocated for Fiscal Year 2016-2017. In order to avoid losing funds that were allocated Fiscal year 2016-17, City Staff is requesting to purchase the storage tank materials ahead of the Project schedule and have the storage tanks delivered to the Project site once the City is prepared to install them and complete construction.
Lotus Water solicited bids from three (3) vendors for the storage tank materials. Each vendor was provided with a description of the Project and the requirements of the modular units:
• Polypropylene modular water storage system
• Cistern sized for 26,000-27,000 cu. ft. of effective storage (excluding volume below outlet pipe to pump wet well and above invert of overflow pipes to infiltration gallery)
• Infiltration Gallery sized for 104,000 cu. ft. of storage (excluding surrounding aggregate)
• Withstand the vertical and lateral loading from 7’-8’ of soil cover
The 3 bids ranged from $463,144.30 to $696,609.25. The Atlantis proposal was the lowest.
Vendors Total Bid
RainHarvest Systems $696,609.25
California Filtration Specialist $676,425.00
Atlantis $463,144.30
As the design develops, staff anticipate small modifications to the size of the storage area. In order to account for small modifications from the design development, City Staff is requesting to purchase the storage tank materials from Atlantis based on the solicited price, with a 10% contingency, for a total not to exceed amount of $509,500 (rounded to the nearest hundred).
The purchase agreement with Atlantis, attached to the accompanying resolution as Exhibit A, will allow the City to purchase the storage tank material and Atlantis will provide delivery on a date as designated by the City. The City anticipates that the Project will be ready to install the storage tanks within two (2) years. Therefore, the purchase agreement provides that the tanks must be delivered prior to 2021. By pre-purchasing the storage material, the City will avoid losing funds from Caltrans, and secure pricing of the modules.
FISCAL IMPACT
Approving the purchase of storage tank materials will allow the City to avoid losing Caltrans funds for the Project and without requiring matching funds from the City.
RELATIONSHIP TO STRATEGIC PLAN
Adopting this resolution will contribute to the City’s Strategic Plan outcome of improved Quality of Life by maximizing funds available for the OMP Storm Water Capture Project which aims to improve water quality.
CONCLUSION
Staff recommends that the City Council adopt a resolution approving and authorizing the City Manager to execute a purchase agreement with Atlantis Water Management Victoria for the purchase of storage tank materials for the construction of the Orange Memorial Park Storm Water Capture Project in an amount not to exceed $509,500.
Attachment: PowerPoint Presentation OMP Storm Capture Project - Materials