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CONTRACT K-2021-23: A CONTRACT BY AND BETWEEN THE NORMAN UTILITIES AUTHORITY AND CONNOR ENERGY HOLDINGS, L.L.C., IN THE AMOUNT OF $30,000 TO PROVIDE DESIGN, BIDDING, AND CONSTRUCTION ADMINISTRATION SERVICES FOR A 30 KILOWATT (Kw) NET-METERED ROOFTOP SOLAR INSTALLATION.
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BACKGROUND: Until as recent as May 2020, the Water Reclamation Facility (WRF) was formerly operating under an Oklahoma Pollutant Discharge Elimination System (OPDES) permit last issued in July 2010. The permit included a deadline of July 2013 for implementing effluent disinfection at the WRF. The Norman Utilities Authority (NUA) and the Oklahoma Department of Environmental Quality (DEQ) agreed on September 12, 2014 to a revised compliance schedule under Consent Order (CO) #13-077. The approved schedule and its current status was detailed below:
1. Submit Schedule for Supplemental Environmental Project - 11/30/14 (complete)
2. Complete disinfection improvements - 01/01/16 (complete)
3. Attain compliance with fecal coliform limits - 07/01/16 (complete)
4. Complete Phase 2 improvements - 01/01/17 (Operational February 2017)
5. Attain compliance with Ammonia and TSS limits - 07/01/17 (in compliance since 03/2017)
The completion of the Supplemental Environmental Project (SEP) was a requirement of CO#13-077; the approved SEP was to utilize chlorinated effluent at the Compost Facility in lieu of potable drinking water. Project WW0058 was created to provide for effluent reuse at Yard Waste Composting Facility. The original schedule for the SEP improvements was delayed due to the construction of the WRF Phase 2 Improvements beginning in June 2014. Additionally, the completion of the new ultraviolet (UV) Disinfection Facility allowed use of UV disinfected effluent in lieu of effluent disinfected by chlorine. NUA staff requested a variance from DEQ reuse rules to accomplish this change on February 15, 2018. Staff met with DEQ to discuss the proposed variance on March 29, 2018 and the DEQ advised that the variance was conditionally approved on July 18, 2018.
As a part of the project requirements, a permit from the Oklahoma DEQ was required. On December 11, 2018, the NUA approved Contract K-1819-82 with Alan Plummer and Associates (APAI) to proceed with design, surveying, bidding and limited construction management services for the Compost Reuse Pump Station (SA0016). The design kickoff meeting was held in January 2019 and the design documents were submitted to DEQ on June 19, 2019. The DEQ approved the final design plans on July 15, 2019 and DEQ Permit SLR000014190515 was received by the NUA on August 5, 2019. The project was advertised in August and bids were opened September 19, 2019. The four bids ranged between $438,670 and $635,892. Due to the cost being much higher than estimated, the NUA met with the low bidder and was able to negotiate a reduced cost of $353,670. Additionally, the CO #13-077 required project completion by July 1, 2020.
At this time, the NUA is unwilling to proceed with the approved SEP due to its cost. If constructed as permitted by the DEQ, the total cost would be approximately $539,435.
For the reasons stated above, the NUA has contacted the DEQ and negotiated to allow an $80,000 30-kW Net-Metered Rooftop Solar Installation in lieu of paying fines and sufficient to satisfy the SEP requirements.
The proposed solar installation will provide a renewable source of energy that will be used at the UV (ultra-violet) facility.
DISCUSSION: Proposed Contract K-2021-23 authorizes Connor Energy Holdings, LLC. to proceed with design, bidding and construction management services for the 30-kW Net-Metered Rooftop Solar Installation (Project WW0058). The proposed scope of the work and its cost has been negotiated with Connor Energy Holdings LLC.; the proposed lump sum fee is fixed at $30,000. Attachment A details the proposed schedule, Attachment B defines the work scope and Attachment C details the costs associated with the contract.
The budget for the WWTP Effluent Reuse at Compost Facility (WW0058) includes $82,330 in the Design account (ORG 32999911 OBJECT 46201) and is sufficient to fund the proposed contract amount of $30,000.
RECOMMENDATION: Staff recommends that the NUA approve Contract K-2021-23 with Connor Energy Holdings, LLC. of San Diego, California in the amount of $30,000 for the design, bidding, and construction administration services for a 30kW Net-Metered Rooftop Solar Installation.