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Consent-Community Services # 27.
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| Board of Supervisors |
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| Subject |
| Approve first amendment to Agreement PO3862, Contract Change Orders 1 & 2 with Butterfield Electric, Inc. for the Construction of the In-Vessel Digester – Electrical Control System, adopt a budget resolution increasing the Department of Community Services 2021-22 budget by $325,000 and approve amendment to the 2021-22 Authorized Equipment List to add one Heat Exchanger for the In-Vessel Digester project. (No general fund impact) (Echiburu/Kieffer) |
| Recommended Action |
- Approve and authorize the Chair to sign the first amendment to Agreement PO3862 with Butterfield Electric, Inc. for the construction of the In-Vessel Digester Electrical Control System;
- Adopt a finding that competitive bidding for the work described in Contract Change Orders 1 & 2 for the In-Vessel Digester – Electrical Control System would have been unavailing, impractical and would not have produced any public advantage;
- Approve Contract Change Orders 1 & 2 to the agreement with Butterfield Electric, Inc. (Yolo County Agreement No. 3862) In-Vessel Digester – Electrical Control System, allowing for the necessary changes, for a total contract increase in the amount of $141,729.13;
- Authorize the Director of Integrated Waste Management Division to sign Contract Change Orders 1 & 2; and
- Adopt a budget resolution increasing the Department of Community Services 2021-22 Budget by $325,000 (for a total appropriation of $33,102,100) to fund the construction of the In-Vessel Digester at the Yolo County Central Landfill;
- Approve amendment to the 2021-22 Authorized Equipment List to add one Heat Exchanger for the In-Vessel Digester project.
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| Strategic Plan Goal(s) |
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Sustainable Environment |
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Flourishing Agriculture |
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| Reason for Recommended Action/Background |
California has a statewide goal to divert 75 percent of waste from the landfill by 2020. In February 2007, the California Department of Resources Recycling and Recovery (CalRecycle) adopted Strategic Directive (SD) 6.1, which calls for a 50 percent reduction in the amount of organics being disposed in the landfills by 2020. Organic waste makes up approximately one third of the 35 million tons of waste that is currently landfilled in California. To aid in meeting the state-wide 75 percent goal, Assembly Bill 1826 was passed in September 2014 requiring businesses, including state agencies, which generate certain amounts of organic waste per week to have organic waste recycling programs on or after April 1, 2016. To meet these goals, the landfill has implemented a three-part strategy: having an organic waste transfer facility, an anaerobic composter facility, and construct an in-vessel digester (liquid digester).
The Division of Integrated Waste Management has designed an in-vessel digester (liquid digester) to further divert organic waste from landfill disposal and to generate methane for power production. The construction of the In-Vessel Digester – Electrical Control System is needed to fully operate the In-Vessel Digester facility and the future waste water treatment system. Construction is anticipated to be complete in Winter 2022.
The contract with Butterfield Electric, Inc. was awarded by on January 12th, 2021 for construction of an Electrical Control System for the landfill’s In-Vessel Digester. At this time, the Board gave the Director of Division of Integrated Waste Management (DIWM) authority to approve Contract Change Orders (CCO) for this project up to the maximum amount allowable by law, provided the Contract amount does not exceed available Funds. Pursuant to Public Contract Code 20142, the Director of the DIWM only has delegated authority for Contract Change Orders up to $75,406.15 due to limits that are a function of the total contract amount ($25,000 + 5% of (Contract Price - $250,000)).
The additional work described in Contract Change Orders 1 & 2 exceeds the statutory Contract Change Order limits for Public Contract Code 20142. As such, the Director does not have the authority to approve these Contract Change Orders.
A concurrent project for wastewater treatment of landfill leachate and digestate from the In-Vessel Digester is in the design phase and also requires electrical controls that were not included at the time of the Electrical Control System design that Butterfield is constructing. It was determined that it would be most efficient to incorporate those control systems into the current Electrical Control System project rather than construct another separate system for the wastewater project. The inclusion of this additional work resulted in a 6-week extension in the installation schedule. The Contract is currently written such that payment is made when the equipment is completely installed. Given the unforeseen schedule extension, Butterfield has requested a no-cost amendment to Agreement PO3862 that would allow progress payments to be made corresponding to major milestones that would occur prior to complete installation.
Pursuant to Public Contract Code 20137, a duly authorized officer of the County can approve Contract Change Orders up to the statutory limit of 10% of the Contract – Price ($125,812.30) before requiring competitive solicitation, except under certain conditions described below:
The additional cost for the work described above exceeds the statutory Contract Change Order limits for the Public Contract Code 20137. Changes exceeding the Public Contract Code 20137 limit would ordinarily require competitive bidding. However, under Graydon v. Pasadena Redevelopment Agency (1980) 104.Cal.App.3d 631, competitive bidding is not required where such bidding would be unavailing and impractical and would not produce any public advantage.
For the following reasons, competitive bidding (Pursuant to Public Contract Code 20137) for the extra work in this case would not produce any public advantage, and it is in the County’s and public’s best interest to work with the existing Contractor on the project rather than competitively bidding these project changes.
Each of the items of the Contract Change Order Work is functionally integrated with the overall project. Butterfield is already mobilized and on-site doing the overall project furnishment and construction. It wouldn’t be practical to have a different contractor perform the change order work because they are integrated with the overall infrastructure being constructed. Integration of this change order into the panels during manufacturing will cost the County less time and money than integrating and modifying the panels in the future.
Advertising and bidding the project changes would result in a delay in the project. This project is fully integrated into several other Organic Diversion projects at the Yolo County Central Landfill and a delay in one would cause delays in the other projects. Note that these Organic Diversion projects are the current plan and strategy for Yolo County to be in compliance with AB 1826 and SB 1383. As such a delay to this project would put the County and the public at a disadvantage to the two previously stated regulations.
The division 2021-22 budget includes $1,300,000 for completion of the In-Vessel Digester – Electrical Control System. The attached budget resolution increases the capital assets portion of the division budget by $325,000 through use of sanitation enterprise fund balance. The budget resolution is comprised of $175,000 to cover change orders 1 & 2 with a contingency of approximately $33,000. Additionally, $150,000 is included for a future heat exchanger system for the in-vessel digester which is currently in the design phase with construction scheduled later this year. |
| Collaborations (including Board advisory groups and external partner agencies) |
| County Counsel has approved the amendment and budget resolution as to form. |
| Competitive Bid Process |
The Project was advertised on Bidsync on November 5th 2020 for competitive bidding. Bids were accepted until 2 p.m. on December 7th, 2020. Only one bid was received for the project, which was submitted by Butterfield Electric, Inc. and was opened and read publicly at the Department of Community Services-Division of Integrated Waste Management. Butterfield Electric’s bid is in the amount of $1,258,123 and Butterfield was determined to be a responsive and responsible bidder.
The execution of the agreement was approved of by the Board at the January 12th, 2021 Board of Supervisor meeting. Bids Received. |
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| Fiscal Impact |
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| Source of Funds for this Expenditure |
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Explanation (Expenditure and/or Revenue) |
| Further explanation as needed: |
| In-Vessel Digester – Electrical Control System will be paid by the Sanitation Enterprise Fund, which is funded through the tipping fees collected at the landfill. There will not be an impact to the general fund. |
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