HomeMy WebLinkAbout09.a. Amend agreement with URS for engineering servicesCentral Contra Costa Sanitary District
BOARD OF DIRECTORS ' Q''
POSITION PAPER
Board Meeting Date: June 2, 2011
subject: AUTHORIZE THE GENERAL MANAGER TO AMEND AN EXISTING
AGREEMENT WITH URS FOR PROFESSIONAL ENGINEERING SERVICES FOR
THE ALTERNATIVE ENERGY AND GREENHOUSE GAS REDUCTION PLAN,
DISTRICT PROJECT 7256
Submitted By: Initiating Dept. /Div.:
Melody LaBella, Assistant Engineer Engineering /Environmental Services
REVIEWED AND RECOMMENDED FOR BOARD ACTION:
M. LaBella C. Swanson A. Farrell
ISSUE: Board of Directors' approval is required for the General Manager to amend an
existing Professional Engineering Services Agreement when the amendment is greater
than 15% of the original agreement amount or $10,000, whichever is greater.
RECOMMENDATION: Authorize the General Manager to execute an amendment to an
existing Professional Services Agreement with URS in the amount of $350,000 from
$235,000 to $585,000 for the Alternative Energy and Greenhouse Gas Reduction Plan,
DP 7256.
FINANCIAL IMPACTS: The additive cost of this amendment, including staff time, will
be approximately $400,000.
ALTERNATIVES /CONSIDERATIONS: An alternative would be to conduct this project
using in -house engineering staff. This project requires specialized expertise, which is
not available at the District at this time.
BACKGROUND: In April 2009, the District retained URS to create a computer model to
simulate greenhouse (GHG) gas emissions within the treatment plant under current
operating conditions. This work was commissioned to help determine the District's
ability to comply with the California Global Warming Solutions Act (AB 32), which was
passed by the California Legislature in 2006 and requires that statewide greenhouse
gas (GHG) emissions be reduced to 1990 levels by the year 2020, representing an
approximate 30% decrease in statewide GHG levels.
On November 19, 2009, the Board of Directors authorized amending the existing
$40,000 agreement with URS by adding $195,000 to continue enhancing our GHG
model, to perform an alternative energy study and to recommend a power portfolio that
will comply with AB 32, while meeting the energy demands in the treatment plant.
In evaluating the options for powering our treatment plant while complying with AB 32,
staff has realized that our solids handling method is so integral to power consumption
WENVRSEC \Position Papers \LaBella\Amend URS Agreement DP7256 6- 2- 11.doc
POSITION PAPER
Board Meeting Date: June 2, 2011
Subject: AUTHORIZE THE GENERAL MANAGER TO AMEND AN EXISTING
AGREEMENT WITH URS FOR PROFESSIONAL ENGINEERING SERVICES FOR
THE ALTERNATIVE ENERGY AND GREENHOUSE GAS REDUCTION PLAN,
DISTRICT PROJECT 7256
and power usage within our treatment plant that it would be prudent to complete an
evaluation of our solids handling method, prior to formulating a recommended energy
portfolio. The Capital Improvement Plan currently has approximately $5 million in
improvements to the existing multiple hearth furnaces (MHFs). Before committing to
that spending, staff recommends an evaluation of our solids handling method to
determine if we should continue with MHFs, switch to a fluidized bed incinerator (newer
incineration technology that requires 95% less auxiliary fuel) or move to anaerobic
digestion.
Under the proposed scope, URS will evaluate the three solids handling options,
including completing a Facilities Plan for anaerobic digesters, evaluating various
disposal options available for digested sludge (land application, composting and
incineration), evaluating the benefit of co- digesting other biomass (food waste and fats,
oils and grease),and evaluating the regulatory risk (NPDES permit) of a more - efficient
air scrubber on our existing MHFs. URS will estimate the capital and O &M costs
associated with each solids handling option, incorporate the relevant findings and
financial information into our existing GHG model and ultimately recommend a solids
handling method that will best support the District's goals for future regulatory
compliance, energy neutrality and sustainability. Once that work is completed, URS will
use that information to finalize their prior task of recommending an energy portfolio that
complies with AB 32, while meeting the power demands in the treatment plant.
Staff has concluded that the proposed agreement is exempt from the California
Environmental Quality Act (CEQA) under District CEQA Guidelines Section 15262,
since it involves planning tasks for possible future actions, which the District has not
approved, adopted or funded, and the outcomes of these tasks would not have a
legally- binding effect on later activities. Approval of this agreement will establish the
Board of Directors' independent finding that this project is exempt from CEQA. The
District will conduct an environmental evaluation of any capital project that is proposed
in the future as a result of these studies to determine the appropriate CEQA compliance
documentation.
RECOMMENDED BOARD ACTION: Authorize the General Manager to execute an
amendment to an existing Professional Services Agreement with URS in the amount of
$350,000 from $235,000 to $585,000 for the Alternative Energy and Greenhouse Gas
Reduction Plan, DP 7256.
WENVRSEMPosition PaperslaBella\Amend URS Agreement DP7256 6- 2- 11.doc