REPORT TO COUNCIL
SUBJECT
Title
Award of Contract to HDR Engineering, Inc. for Execution of Phase II of the Sunnyvale Materials Recovery and Transfer Station NextGen Project (F20-190)
Report
REPORT IN BRIEF
Approval is requested to award a contract to HDR Engineering, Inc. of Folsom, in an amount not-to-exceed $282,231.61 for Consultant Assistance for Phase II of the Sunnyvale Materials Recovery and Transfer Station (SMaRT Station®) NextGen Project.
EXISTING POLICY
GOAL EM-15 - ENVIRONMENTALLY -SOUND DISPOSAL: Dispose of solid waste in an environmentally sound, dependable and cost -effective manner. (Previously Solid Waste Goal 3.2D / Adopted in 1996)
Pursuant to Section 2.08.040 of the Sunnyvale Municipal Code (SMC), City Council approval is required for the procurement of goods and/or services exceeding $100,000 in any one transaction.
Further, SMC Section 2.08.070(b)(3) authorizes the purchase of goods and/or services to be exempted from the competitive bidding requirements when the solicitations of bids or proposals would be impractical, unavailing or impossible.
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15378(a) as it has no potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.
Furthermore, this action is exempt from environmental review pursuant to Section 15262 of the CEQA Guidelines (feasibility and planning studies for possible future actions that have not been approved, adopted or funded). The City Council certified an Environmental Impact Report (EIR) for the SMaRT Station in 1990 (SCH #89022812). Any proposals that result from the studies will be reviewed to determine if the changes fall within the scope of the 1990 EIR or require supplemental environmental review. Entering into a new contract with HDR does not commit the City to make any changes to the SMaRT Station infrastructure or partnership relationships. The City Council retains full discretion to ultimately approve or reject any proposed project and to impose measures to mitigate any significant environmental impacts.
BACKGROUND AND DISCUSSION
On October 17, 2017, City Council approved a Consultant Services Agreement for HDR Engineering, Inc. (HDR) to provide professional services for the development and implementation of infrastructure and existing multi-jurisdictional partnership updates for the SMaRT Station in the amount of $266,815 plus a 10% contingency of $26,682 (RTC No.17-0866). This is considered Phase I of this project. To date, all ten contract scope items are almost complete.
During Phase II, HDR will primarily assist with a feasibility analysis of the equipment needed at the SMaRT Station, potential site layout and facility improvements required to meet and align with Senate Bill 1383 (SB1383) requirements. SB 1383 mandates 75% organic diversion by January 2025 and drives the schedule for this project. The completion of Phase II will be followed by detailed design and construction phases. Construction is anticipated to be completed by January 2024 followed by testing and acceptance by December 2024.
Staff is recommending an award of a contract to HDR who will be the lead consultant performing these tasks with HF&H Consultants LLC (HF&H) and RRT Design and Construction LLC (RRT) providing sub-consultant services on specific tasks, as needed. Due to HDR’s current role and experience supporting Phase I, their established relationships and ongoing relationships with the partner agencies, and the need to meet the requirements of SB 1383 in a timely fashion, staff is recommending that this contract be awarded to HDR without further competition. The Environmental Services Department has directly negotiated the tasks and fees for the required scope of work identified for Phase II.
The following key tasks are part of the Phase II scope:
• Identify the future diversion potential of the SMaRT Station to meet SB 1383 mandate requirements, impacts of current commodity market demands on the existing infrastructure and methods to recover additional significant quantities of marketable commodities.
• Identify the type, location, and sizing of equipment needed to meet tonnage and diversion goals.
• Review and make recommendations for equipment suggestions made by Material Recovery Facility (MRF) equipment vendors and SMaRT operator, Bay County Waste Service (BCWS).
• Explore type, location, and sizing of equipment that could reduce labor cost and make the SMaRT Station more automated.
• Prepare a revised estimate for facility renovations or possible expansions needed at the SMaRT Station to meet the desired elevated diversion rates.
• Summarize capital and amortized capital cost requirements of the redesigned system to determine the likely high-level cost estimate ranges for its successful renovation.
• Prepare a Conceptual Equipment Plan and Feasibility Study Update of the SMaRT Station Next Gen summary report. The report will include recommendations regarding the age of the facility, conceptual site plans, planning-level and lay-out equipment plans of preferred equipment and module configuration, and configuration of infeed and off-take conveyors to enable the facility to obtain the elevated diversion expectations.
• Assist with developing a Memorandum of Understanding (MOU) with partner agencies.
• Assist with draft amendments to the current agreement as the basis for the new agreement & negotiation of a new agreement with BCWS.
• Assist the City with procuring organics processing services from one or more vendors.
• Provide support as needed with renegotiating the disposal agreement, SB 1383 interpretation, analysis of diversion and/or tonnage estimates.
• Assist City staff in developing materials and participating in up to two presentations to the City Council and meetings with the Partner cities as needed.
FISCAL IMPACT
Total Funds requested is $282,231.61. Budgeted funding is available in Project 833830 Procure Post-2021 Solid Waste Collection, funded by the Solid Waste Management Enterprise Fund.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City's official-notice bulletin board outside City Hall, Sunnyvale Public Library and Department of Public Safety; and by making the agenda and report available at the Office of the City Clerk and on the City's website.
RECOMMENDATION
Recommendation
Take the following actions:
- Award a contract in substantially the same form as Attachment 1 to the report in an amount not to exceed $282,231.61, to HDR Engineering, Inc., and
- Authorize the City Manager to execute the contract when all necessary conditions have been met.
Staff
Prepared by: Gregory S. Card, Purchasing Officer
Reviewed by: Tim Kirby, Director of Finance
Reviewed by: Ramana Chinnakotla, Director of Environmental Services
Reviewed by: Jaqui Guzmán, Deputy City Manager
Approved by: Kent Steffens, City Manager
ATTACHMENTS
1. Draft Consultant services Agreement