Loading...
H2. Res. 6243, Alternative Project Delivery for Biosolids ProjectC1 Yy (W KALISPELL To: Doug Russell, City Manager CC: Susie Turner, PE — Public Works Director From: Keith Haskins, Deputy Public Works Director / City Engineer Re: Alternative Project Delivery Contract Findings — Resolution No. 6243 Kalispell Wastewater Treatment Plant Biosolids Treatment and Disposal Project Meeting Date: March 3, 2025 Background: City Staff is recommending utilizing the alternative project delivery method of General Contractor Construction Manager (GCCM) for the upcoming Wastewater Treatment Plant (WWTP) Biosolids Treatment and Disposal Project. The project includes: • Demolishing outdated equipment • Installing new solids dewatering equipment • Arranging existing solids dewatering equipment and piping for a potential dryer equipment installation phase (if necessary) • Updating the polymer unit • Improving pumping and piping to support the new dewatering operations The goal is to have the construction substantially completed by the fall of 2026, prior to the expiration of the City contract with Glacier Gold Composting. In August 2024, the City signed a professional services agreement with AE2S to design the project. During the preliminary engineering process, it became clear that the project would benefit from an alternative project delivery method for several reasons: the aggressive project completion schedule of early fall 2026, the need to procure construction materials and equipment early, the desire to manage project risk through early contractor involvement, and maintain permit compliance during construction. The typical project delivery method used by the City is the Design Bid Build method. This linear process involves designing the project, producing construction bidding documents, publicly advertising and bidding the project, selecting the lowest responsible bidder, and then constructing the project. However, Montana law allows alternative project delivery methods for complex projects that meet certain criteria, including the GCCM alternative process. The GCCM method involves selecting a qualified contractor early in the design process through a Request for Qualifications and Request for Proposals (RFQ & RFP) in accordance with Montana Code Annotated (MCA) 18-2-503. The benefits of this method for the biosolids disposal project were discussed with the Council at the Council Work Session on February 24, 2025. In order to utilize GCCM to deliver the project, pursuant to MCA 18-2-501 el seq. and 7-5-43, the City is required to make detailed written findings which demonstrate that the criteria for utilizing an alternative delivery method are met as is shown in the attached resolution. RECOMNILENDATION: City staff recommends the City Council accept Resolution No. 6243. City Council acceptance of the document is a necessary step for the use of an alternative project delivery method to complete the Kalispell Wastewater Treatment Plant Biosolids Treatment and Disposal Project. ACTION REQUESTED: Motion to approve Resolution No. 6243, a resolution by the City of Kalispell, Montana, relating to the use of an alternative project delivery contract for the Kalispell Wastewater Treatment Plant Biosolids Treatment and Disposal Project. FISCAL EFFECTS: $8.5 million in bonded funds have been allocated in the FY 25 budget for the construction of this project, with an additional $1 million allocated for professional services and construction components. ATTACHNIENT: Resolution No. 6243 2 RESOLUTION NO. 6243 A RESOLUTION BY THE CITY OF KALISPELL, MONTANA, RELATING TO THE USE OF AN ALTERNATIVE PROJECT DELIVERY CONTRACT FOR THE KALISPELL WASTEWATER TREATMENT PLANT BIOSOLIDS TREATMENT AND DISPOSAL PROJECT. WHEREAS, the City of Kalispell, Montana ("the City") a municipality, is presently considering and planning for certain construction activities with respect to its Public Works infrastructure capital facilities; and WHEREAS, the City's current agreement for biosolids disposal at Glacier Gold Composting in Olney, Montana terminates on September 30, 2026 and the facility is expected to fully close; and WHEREAS, § 18-2-501 et seq. and § 7-5-4301 et seq., MCA authorize the City to utilize an Alternative Project Delivery Contract for the procurement of such construction activities under certain conditions; and WHEREAS, those conditions are met with respect to the construction activities presently contemplated. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF KALISPELL, MONTANA, AS FOLLOWS: SECTION 1. Use of an Alternative Project Delivery Contract is granted for the Kalispell Wastewater Treatment Plant Biosolids Treatment and Disposal Project based on the following Findings: (1) The City has or will have knowledgeable staff and/or consultants who have the capacity to manage an Alternative Project Delivery Contract. In addition to Public Works and City Attorney staff, who have experience with and/or working knowledge of Alternative Delivery Methods, or construction and project management experience, the City has retained the services of Advanced Engineering and Environmental Services, 1288 North 14'h Avenue, Unit 103, Bozeman, Montana to provide both design and construction administration services associated with the project at issue. (2) The Alternative Project Delivery Contract structure contemplated for this project will involve a General Contractor Construction Manager (GCCM) contract as defined in § 18-2-501, MCA. The procurement and award process for that GCCM contract will follow the requirements of § 18-2-503, MCA and will involve the competitive solicitation of proposals from qualified GCCM providers through Request for Qualification (RFQ) & Request for Proposal (RFP) processes. (3) In accordance with § 18-2-502(2), MCA, the City has determined that the timely completion of the contemplated construction has significant schedule ramifications in terms of completing the work with a minimum amount of disruption to the Wastewater Treatment Plant (WWTP) operations. Maintaining complete operational functionality is of primary importance, whereas constructability input from the GCCM would assist in developing construction sequencing to minimize downtimes and maintain the required permit compliance for the WWTR The project schedule is aggressively set to achieve substantial completion prior to the fall of 2026, so that the new equipment and operation sequences can go through refinement before the City's Agreement with Glacier Gold expires. (4) In accordance with § 18-2-502(2), MCA, the City has determined that the project presents significant technical complexities that necessitate the use of an alternative delivery project contract. Technical input from the GCCM on means, methods, and strategies to keep existing operations in service will be of utmost importance in order to maintain permit requirements and to dispose of biosolids continuously produced from WWTP operations. Completion of the project without disruption of existing processes will be complicated due to space limitations in active process areas and requires demolition of existing tanks, replacement of pumps, removal of the existing belt filter press, relocation of existing machinery, and other related work. Input and coordination with the GCCM during design will help to optimize the design and limit the impacts of construction. Additionally, GCCM input regarding the means and methods associated with the initial installation and potential need to remove and replace the equipment over the life cycle of the facility would be beneficial. (5) In accordance with § 18-2-502(3), MCA, the City hereby determines that the utilization of an Alternative Project Delivery Contract as described above will neither (a) encourage favoritism or bias in awarding the contract or (b) substantially diminish competition for the contract. The basis for that determination is as follows: The procedures utilized for the competitive RFQ & RFP process will involve the same publication and solicitation processes that would otherwise be used to competitively solicit bids from a general contractor, i.e., publication in local newspapers, utilization of online bidding service, etc.; and The target pool of qualified GCCM entities will consist — at a minimum — of the same pool of qualified general contractor entities that would be likely participants in a competitive bid process for construction work only; and The criteria utilized to select the GCCM will be those set forth in § 18- 2-503(2), MCA and any additional factors unique to the project, all of which are intended to avoid any favoritism or bias in the GCCM contract award process; and At the conclusion of the GCCM selection process, the City will — as required by § 18-2-503(4), MCA — state and document in writing the reasons for selecting the successful GCCM candidate. PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE CITY OF KALISPELL, THIS 3RD DAY OF MARCH, 2025. Mark Johnson Mayor ATTEST: Aimee Brunckhorst, CMC City Clerk