HomeMy WebLinkAboutCAPITAL PROJECTS AGENDA 08-30-13Jl Central Contra Costa Sanitary District
REVISED AGENDA
SPECIAL MEETING OF THE BOARD OF DIRECTORS
CENTRAL CONTRA COSTA JAMES A.NEJEDLY
President
SANITARY DISTRICT
DA HD R. 97LLIAMS
CAPITAL PROJECTS COMMITTEE President Pro Tem
PA UL H. CA USEY
MICHAEL R. MCGILL
Chair Pilecki TAD J.PILECKI
Member Causey PHONE: (925) 228 -9500
FAX: (925) 676 -7211
Friday, August 30, 2013 www.centralsan.org
8:45 a.m.
Multi Purpose Room
5019 Imhoff Place
Martinez, California
INFORMATION FOR THE PUBLIC
ADDRESSING THE COMMITTEE ON AN ITEM ON THE AGENDA
Anyone wishing to address the Committee on an item listed on the agenda will be heard when the
Committee Chair calls for comments from the audience. The Chair may specify the number of minutes
each person will be permitted to speak based on the number of persons wishing to speak and the time
available. After the public has commented, the item is closed to further public comment and brought to the
Committee for discussion. There is no further comment permitted from the audience unless invited by the
Committee.
ADDRESSING THE COMMITTEE ON AN ITEM NOT ON THE AGENDA
In accordance with state law, the Committee is prohibited from discussing items not calendared on the
agenda. You may address the Committee on any items not listed on the agenda, and which are within its
jurisdiction, under PUBLIC COMMENTS. Matters brought up which are not on the agenda may be
referred to staff for action or calendared on a future agenda.
AGENDA REPORTS
Supporting materials on Committee agenda items are available for public review at the Reception Desk,
4849 Imhoff Place, Martinez, and on the District's website at www.centralsan.org. Not every agenda item
is accompanied by written supporting material. Reports and information relating to agenda items
distributed within 72 hours of the meeting to a majority of the Committee are also available for public
inspection at the Reception Desk. During the meeting, information and supporting materials are available
in the meeting room.
AMERICANS WITH DISABILITIES ACT
In accordance with the Americans With Disabilities Act and state law, it is the policy of the Central Contra
Costa Sanitary District to offer its public meetings in a manner that is readily accessible to everyone,
including those with disabilities. If you are disabled and require special accommodations to participate,
please contact the Secretary of the District at least 48 hours in advance of the meeting at (925) 229 -7303.
Capital Projects Committee
August 30, 2013
Page 2
1. Call Meeting to Order
2. Public Comments
*3. Discuss and prioritize Capital Projects topics to be discussed at the Board
Priorities Workshop
Staff Recommendation: Discuss and provide direction to staff.
*4. Review Capital Improvement Budget (CIB) June 30, 2013 Year -End Status
Report
Staff Recommendation: Review and recommend Board receipt at the
September 5, 2013 Board meeting.
*5. Review Closeout of Capital Improvement Projects
Staff Recommendation: Receive the report.
*6. Receive update on Information Technology (IT) Master Plan development
Staff Recommendation: Receive the update and provide input to staff if
needed.
*7. Review draft Position Paper adopting a resolution authorizing the General
Manager to enter into a sole- source contract with Solar Turbines, Inc. in an
amount not to exceed $650,000 for the installation of fuel and control system
upgrades to the cogeneration system, Cogeneration System Renovation Project,
District Project 7308, pursuant to Public Contract Code Section 3400(c)(3) and
Purchasing Procedures Manual Section 5.3.15; and find that the project is
exempt from the California Environmental Quality Act (CEQA)
Staff Recommendation: Review and recommend Board approval.
New 8. Update on possible streamlining of CIB /CIP process, and development of
item "triggers" that would require Capital Projects Committee review of certain projects
prior to Board action.
Staff Recommendation: Receive update and provide input to staff.
9. Announcements
10. Suggestions for future agenda items
11. Adjournment
* Attachment
3,
Central Contra Costa Sanitary District
August 30, 2013
TO: CAPITAL PROJECTS COMMITTEE
FROM: ELAINE BOEHME, SECRETARY OF THE DISTRICT4:��25
SUBJECT: BOARD PRIORITIES WORKSHOP — Discussion Topics
Staff has been compiling a list of topics suggested by Board Members to be discussed
at the upcoming Board Priorities Workshop scheduled for October 22, 2013. These
topics cover all facets of the District's business, including such core matters as the
District's mission statement and strategic plan, as well as the responsibilities of Board
Committees.
In an effort to make the best use of time during the Workshop, staff is presenting to the
various Board Committees a list of Workshop topics that fall under the purview of that
Committee. Each Committee will be asked to review and prioritize the list of topics. A
complete list of categorized topics will be presented to the full Board in late September
or early October for final prioritizing.
Below is a list of topics related to Capital Projects.
CAPITAL PROJECTS
Review Asset Management Plan under development (CauseylPilecki)
Review staff authority limits (CauseylPilecki)
Review the Board's role in the capital projects process (CauseylPilecki)
Review assumptions used in Ten -Year Capital Improvement Plan (CIB)
Review factors in deciding project priority, and when projects can be delayed
(Causey/Pilecki)
Update on status of major ongoing projects (Swanson)
Discuss approval process for projects that exceed budget (Causey)
Consultants - review selection process, contract extensions, and how increases
in consultant contract amounts are handled (Causey/Williams)
FY 2012 -13
CAPITAL IMPROVEMENT
BUDGET
YEAR END STATUS REPORT
September 5, 2013 Board Meeting
Andrew Antkowiak
Capital Projects Division Manager
Central Contra Costa Sanitary District
Actual FY 2012 -13
Capital Program Activity
1
Budgeted 2012 -13
Actual 2012 -13
Total Expenditures
$32.3 M
$26.8 M
Total Revenues
$21.8 M
$22.3 M
Reduction in Sewer
Construction Fund (SCF)
Balance
-$10.5 M
-$4.5 M
1
FY 2012 -13 Capital Revenue by Category
Revenue Category
Budgeted
201243 Revenues
Actual
2012 -13 Revenues
Sewer Service Charge
$4,430,000
$4,384,376
Property Taxes
$7,534,000
$7,471,518
Facility Capacity / Pumped
Zone Fees
$5,054,000
$5,980,079
Interest
$350,000
$230,054
City of Concord
$3,833,000
$3,616,771
All Other
$586,000
$598,844
Total
$21,787,000
$22,281,642
FY 2012 -13 Capital Budget by Program
Program
Budgeted Total
2012 -13 Expenditures
Actual Total
2012 -13 Expenditures
Treatment Plant
$ 7,436,000
$7,825,482
Collection System
$ 13,723,000
$10,063,948
General Improvements
$ 7,254,000
$6,344,336
Recycled Water
$ 3,930,000
$2,524,882
Total
$ 32,343,000
$26,758,648
M-Iil
2012 -13 Treatment Plant Program
Major Projects /Variances
2012 -13 Collection System Program
Budgeted
Actual
Comments
Primary Treatment
$ 1,000,000
$ 944,041
Project slightly delayed
Renovation
$ 1,800,000
$ 2,474,624
Project construction
Primary Structure
$5,000
$600, 791
Delayed construction
Demolition
2012 -13 Development
completion from FY 11 -12
Pump & Blower Building
$3,000,000
$37,367
Project delayed
Seismic Upgrades
Piping Renovations,
$526,000
$ 293,803
Project Accelerated (major
Phase 6
Phase 8
expenditures In FY 11 -12)
Treatment Plant Planning
$ 230,000
$ 1,064,836
Increased project scope of
$ 631,226
Protect accelerated
work
Outfall Improvements,
$815,000
$2,747,870
Delayed construction
Phase 6
$1,000,000
$329,108
completion
Piping Renovations,
$700,000
$ 1,236,182
Increased project scope of work,
Phase 7
North Orinda Sewer
added DAFT emergency repairs
Other Projects
$1,160,000
$ 900,592
Treatment Plant Program within
5% of budget.
Total
$7,436,000
$7,825,482
2012 -13 Collection System Program
Major Projects /Variances
Budgeted
Actual
Comments
Walnut Creek, Phase 9
$ 1,800,000
$ 2,474,624
Project construction
delayed from FY 11 -12
2012 -13 Development
$ 681,000
$ 822,995
Increased activities
Sewerage
Lafayette Sewer Renovations,
$ 1,800,000
$ 926,805
Project delayed
Phase 8
Diablo Sewer Renovations,
$ 300,000
$ 631,226
Protect accelerated
Phase 2
Sewer TV Inspection, Phase 2
$1,000,000
$329,108
Project delayed, 0 &M pilot
project
North Orinda Sewer
$1,806,000
$1,582,614
Good bids
Renovations, Phase 4
2013 CIPP Lining
$ 2,000,000
$ 577,681
Project construction
delayed to FY 13 -14
Other Projects
$4,336,000
$2,718,895
Collection System Program
27% under budget due to
Total
$13,723,000
$10,063,948
projects delays
2012 -13 General Improvements Program
Major Projects/ Variances
2012 -13 Recycled Water Program
Major Projects /Variances
Budgeted
Actual
Comment
Seismic Improvements
$ 3,800,000
$ 2,423,961
Construction start delayed
for HOB
2012 -13 Vehicles and
$ 960,000
$ 804,830
Delayed construction
Equipment Acquisition
IT Development
$ 1,095,000
$ 983,480
Increased scope of project
Rental Property
$ 250,000
$ 309,472
Increased project scope of
Seismic Improvements
$ 425,000
$ 64,150
work
District Easement
$ 100,000
$ 332,281
Increased activities
Acquisition
$3,930,000
$2,524,882
due to delayed start of constructlon
Rental Property
$ 30,000
$ 529,056
Increased project scope of
Improvements
work
Other Projects
$ 1,019,000
$ 961,256
Total
$7,254,000
$6,344,336
GI program 13% under budget
due to projects delay
2012 -13 Recycled Water Program
Major Projects /Variances
Budgeted
Actual
Comment
Recycled Water
$ 105,000
$ 371,222
Increased effort
Planning
Concord Landscape
$ 3,300,000
$ 1,933,246
Delayed construction
Project
Recycled Water Line to
$ 100,000
$ 156,264
Increased scope of project
Conco / Maltby Repair
Other Projects
$ 425,000
$ 64,150
REW Program 36% under budget
Total
$3,930,000
$2,524,882
due to delayed start of constructlon
for the Concord Landscape Project
Actual FY 2012 -13
Capital Program Activity
Questions?
prggg�m
1.
Budgeted 201243
Actual 201243
Total Expenditures
$32.3 M
$26.8 M
Total Revenues
$21.8 M
$22.3 M
Reduction in Sewer
Construction Fund (SCF)
Balance
-$10.5 M
-$4.5 M
Questions?
prggg�m
1.
5.
Central Contra Costa Sanitary District
August 27, 2013
TO: CAPITAL PROJECTS COMMITTEE
VIA: ROGER BAILEY, GENERAL MANAGER
DANEA GEMMELL, ENVIRONMENTAL SERVICES DIV. MANAGER
THOMAS BRIGHTBILL, SENIOR ENGINEER
FROM: EARLENE MILLIER, ENGINEERING ASSISTANT III
SUBJECT: CLOSEOUT OF CAPITAL IMPROVEMENT PROJECTS
Work has been completed on 21 capital improvement projects during the 2012 -13 fiscal
year.
As a result of the closeout of these projects, $919,402 is being returned to the
Treatment Plant, Collection System, General Improvements and Recycled Water
Programs.
Below is a summary of the allocated budgets and expenditures for the closed projects
by program. Attachment 1 lists the allocated budgets and expenditures and
underun /(overrun) amounts for each project. Attachment 2 contains a brief summary of
the work completed under each project.
Expenditures as Underrun = Amount
Program Allocated Budget of June 30, 2013 Returned to Program
Treatment Plant
$10,970,000
$10,521,123
$448,877
Collection System
$9,360,600
$9,401,161
($40,561)
General Improvements
$4,485,028
$3,000,557
$527,817
Recycled Water
$163,000
$179,731
($16,731)
Totals
$24,978,628
$23,102,572
$919,402
Attachment 1
Budget and Expenditure Summary - 2013 Closeouts
TREATMENT PLANT PROGRAM CLOSING PROJECTS
DISTRICT
PROJECT N0,
PROJECT TITLE
ALLOCATED
BUDGET
EXPENDITURES
AS OF 6/30/12
UNDERRUN
(OVERRUN)
7255
Primary Structures Demolition
1,580,000
1,537,099
42,901
7256
Alternative Energy Study
700,000
706,242
-6,242
7276
Piping Renovations, Phase 5
2,902,000
2,484,924
417,076
7288
Piping Renovations, Phase 6
2,253,000
2,267,250
- 14,250
7290
Outfall Improvements, Phase 6
3,535,000
3,525,608
9,392
Program Totals
$10,970,000
1 $10,521,123
1 $448,877
COLLECTION SYSTEM PROGRAM CLOSING PROJECTS
DISTRICT
PROJECT NO.
PROJECT TITLE
ALLOCATED
BUDGET
EXPENDITURES
AS OF 6/30/12
UNDERRUN
(OVERRUN)
5965
Collection System Planning
1,250,000
1,219,494
30,506
5967
A -Line Easement Acquisition, Phase 2
1,447,000
1,356,786
90,214
5987
ICathodic Protection System Replacement
400,000
349,392
50,608
5989
ISouth Orinda Sewer Renovations, Phase 5
2,907,000
2,904,199
2,801
5992
lWalnut Creek Sewer Renovations, Phase 8
2,111,700
2,104,896
6,804
6476
ISunnybrook Road Contractual Assessment District
158,900
156,744
2,156
6513
St. Mary's Road Contractual Assessment District
375,000
386,660
- 11,660
8416
2012 -13 Development Sewerage
711,000
1 922,990
- 211,990
Program Totals
$9,360,600
$9,401,161
($40,561)
GENERAL IMPROVEMENTS PROGRAM CL0SINr. PP0.IFrTG
DISTRICT
PROJECT NO.
PROJECT TITLE
ALLOCATED
BUDGET
EXPENDITURES
AS OF 6/30/12
UNDERRUN
(OVERRUN)
8210
Kiewit Parcel Development
300,000
147,529
152,471
8219
HOB Improvements
795,000
781,916
13,084
8221
POD Improvements Program
497,000
150,903
346,097
8224
District Rental Property Improvements
540,500
569,496
- 28,996
8228
District Easement Acquisition
790,000
740,018
49,982
8231
Seismic Improvements - Rental Property
371,000
375,821
-4,821
8512
2011 -12 Equipment & Vehicles Acquisition
234,874
234,874
0
Program Totals
$3,528,374
$3,000,557
$527,817
RECYCLED WATER PROGRAM CLOSING PROJECTS
DISTRICT
PROJECT NO.
PROJECT TITLE
ALLOCATED
BUDGET
EXPENDITURES
AS OF 6/30/12
UNDERRUN
(OVERRUN)
7303
RW Line to Conco & Maltby Pump Stations
163,000
179,731
- 16,731
Program Totals
$163,000
$179,731
($16,731)
Attachment 2
Project Descriptions (2013 Closeouts)
TREATMENT PLANT PROGRAM
Project # Project Title
DP 7255 Primary Structures Demolition
This project increased safety around the old abandoned primary sedimentation tanks
and prepared the area for future expansion of the primary sedimentation tanks and
related facilities. This project demolished the old abandoned primary sedimentation
tanks and backfilled the area with clean fill material. It also demolished the not used
lime storage silos, building, and associated piping systems. Other obsolete and not
used facilities were also demolished and removed.
DP 7256 Alternative Energy Study
The study evaluated renewable energy sources and made recommendations for
meeting future greenhouse gas (GHG) emission reduction requirements. In addition,
the study reviewed current energy use and made recommendations for future energy
reduction projects and recommended power portfolio to meet the Treatment Plant's
energy needs, while complying with AB 32.
DP 7276 Piping Renovations, Phase 5
This project was a 5th phase of a multiple -phase treatment plant piping renovation
program. This project improved the reliability of the piping systems above and below
ground in the treatment plant. It replaced the aging aeration air supply headers and
down comers at the aeration tanks. It also replaced other plant piping showing signs of
corrosion, such as the water supply and drain lines on the aeration condensers and
number 3 high pressure water (3WHP) pipelines in the West Gallery.
DP 7288 Piping Renovations, Phase 6
This project was a 6t" phase of a multiple -phase treatment plant piping renovation
program. It included piping renovations and replacement work not included in previous
phases of the program. As part of the project sections of the scrubber water piping,
centrate pipe at the foam suppression tank, flow meter in the discharge piping of
aeration blower #2, scrubber drain piping in the SCB plenum were replaced. Also as a
pilot test baffles were installed in one primary sedimentation tank.
DP 7290 Outfall Improvements, Phase 6
This project inspected both the land and submarine portions of the 72 -inch outfall
pipeline. Every joint was tested to a specified threshold and failed joints were repaired
by installation of mechanical seals. As part of the project a new meter vault and a new
60 -inch magnetic flow meter was installed for measurement of final effluent flow. The
submarine section of the outfall was stabilized by placing additional ballast rock around
the pipe.
COLLECTION SYSTEM PROGRAM
Project # Project Title
DP 5965 Collection System Planning
This project purpose is to identify, evaluate, and schedule short and long -term sewer
improvement projects and to provide design flow rates for major facility plans.
Collection System Planning studies provide the basis for improvements to the District's
sewer system and flow rates for facility plans. Studies focus on six major activities:
Local Capacity Studies (LCS) in response to proposed developments, LCS to identify
and define existing deficiencies in the sewer main system, land use and collection
system database management, flow rates for facility plans and for special studies to
assure District sewer renovation plans and priorities are consistent with capacity,
routing, and acceptable service level guidelines, and Pumping Stations Master Plan
DP 5967 A -Line Easement Acquisition, Phase 2
The project purpose was to complete the amended grants of easements for the A -Line
Interceptor and other sewers through the Iron Horse Corridor and to secure property
rights for existing and future segments of the A -Line Relief Interceptor, Walnut Creek
Bypass, Main Trunk No. 1, and the San Ramon Valley Trunk Sewer. The majority of
the proposed easement alignment is within the Iron Horse Trail corridor and the Walnut
Creek Channel.
DP 5987 Cathodic Protection System Replacement
This project included performing a District -wide cathodic protection survey of all
underground facilities, including the pumping stations and buried metallic piping and
replacing existing spent facilities and installing new systems where required. As part of
this project, a master plan was updated with recommendations for required
maintenance, replacement and /or addition of new cathodic protection for facilities
requiring such protection. The master plan includes cathodic protection implementation
and monitoring recommendations.
DP 5989 South Orinda Sewer Renovations, Phase 5
This project is a fifth phase of multiple phases to renovate sewer pipelines as part of the
ongoing Collection System Renovation Program. The project installed approximately
11,000 linear feet of 6 -inch and 8 -inch sewer lines within public right of way and in
easements. Construction methods used were horizontal directional drilling, pipeburst,
and open cut. Included in this project was the easement site along Camino Encinas,
which was removed from the Hall Drive project in 2011 due to right of way issues.
DP 5992 Walnut Creek Sewer Renovations, Phase 8
This project is eight phase of multiple phases to renovate sewer pipelines as part of the
ongoing Collection System Renovation Program. The project installed approximately
10,000 linear feet of 6 -inch through 12 -inch sewer lines within public right of way and
easements in Contra Costa County in the City of Walnut Creek. Construction methods
used were pipebursting and open cut. In addition, there was one site located in the
Town of Clyde that installed four access structures along the force main. These
structures allow the force main to be cleaned and CCTV inspected as necessary.
DP 6476 Sunnybrook Road Contractual Assessment District
Sunnybrook Road CAD 2010 -1 designed and constructed approximately 610 linear feet
of sanitary sewer pipeline, together with appurtenant work and facilities along
Sunnybrook Road in Alamo. The project serves 16 residential properties.
DP 6513 St. Mary's Road Contractual Assessment District
St. Mary's Road CAD 2011 -1 designed and constructed approximately 1,557 linear feet
of sanitary sewer pipeline, together with appurtenant work and facilities along a portion
of St. Mary's Road in Lafayette. The project serves 11 residential properties, one
undeveloped residential property, and a City of Lafayette property containing ball fields
and community meeting room.
DP 8416 2012 -13 Development Sewerage
Work done by District staff to ensure that contributed sewers meet the District's
Standard Specifications for Design and Construction is funded from the Sewer
Construction Fund, since it results directly in District capital assets (completed main
sewers, easements and permanent records.) This project provided a means to
capitalize District labor and other expenses for planning, design, and construction of
developer installed and contributed main sewer facilities during the 2012 -13 fiscal year.
GENERAL IMPROVEMENTS PROGRAM
Project # Project Title
DP 8210 Kiewit Parcel Development
District used the Kiewit property as a source of revenue by leasing it as a clean fill site.
County Quarry was contracted to oversee the leasing agreement and operate the clean
fill site. This project brought clean fill to the Kiewit parcel and raised the elevation
approximately five feet.
DP 8219 HOB Improvements
This project included limited renovation of the interior and exterior of the Headquarters
Office Building (HOB). It included conditioning the exterior, some renovation of interior
wall finishes and ceiling, replacing some flooring and carpeting, upgrading electrical and
lighting systems, reconfiguring offices and workstations. This project included funds to
design improvements needed to bring the building's interior and exterior into compliance
with the Americans with Disabilities Act (ADA) requirements.
DP 8221 POD Improvements Program
This project made various improvements to the interior and exterior of the Plant
Operations Department (POD) Administration offices. This was a multi -year project
that provided an allowance to renovate and upgrade the interior and exterior of the POD
Administration offices and the Emergency Operations Center (EOC) located in the Multi -
Purpose Room. It included limited renovation and /or reconfiguration of offices and
workstation spaces to match employee needs and duties, replaced outdated and /or
worn out furniture, and incorporated new office technologies.
DP8224 District Rental Property Improvements
The purpose of this project was to protect and enhance the District's rental properties,
surrounding parking lots and grounds through additions, improvements, betterments,
replacements, and extraordinary repairs. This was a multi -year project and the
improvements were typically triggered by equipment or building failure, or a need to
improve the property.
DP 8228 District Easement Acquisition
As capital projects are designed, sanitary sewer easements may have to be acquired
through budgets for those specific projects. This project provided funds for the
acquisition of easements for projects where specific funds were not identified in the
Capital Improvement Budget.
DP 8231 Seismic Improvements — Rental Properties
This project improved the seismic performance of the District's rental property buildings.
The 4737 warehouse building was seismically retrofitted to provide basic life safety for
building occupants. Work included limited structural modifications to the building.
DP 8512 2011 -12 Equipment and Vehicles Acquisition
This project provided funding for safe and cost - effective vehicles and equipment for FY
2011 -12. The project did not close at the end of FY 2011 -12 because of the late
delivery of one of the purchased vehicles.
RECYCLED WATER PROGRAM
Project # Project Title
DP 7303 Recycled Water Line to Conco & Maltby Pump Stations
This project addressed potential failure points on the recycled water line that feeds
Conco and Maltby Pumping Station within the District's treatment plant property. Pipe at
risk of future failure was replaced and a flow meter and monitoring system was installed
to help determine any future leaks.
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Central Contra Costa Sanitary District :4'
BOARD OF DIRECTORS DRAFT
POSITION PAPER
Board Meeting Date: September 5, 2013
Subject: ADOPT A RESOLUTION MAKING FINDINGS AND AUTHORIZING THE
GENERAL MANAGER TO EXECUTE A SOLE - SOURCE CONTRACT WITH SOLAR
TURBINES, INC. FOR THE COGENERATION SYSTEM RENOVATION PROJECT, AND
APPROVE A SUPPLEMENTAL AUTHORIZATION OF $800,000 TO THE TREATMENT
PLANT PROGRAM OF THE 2013 -14 CAPITAL IMPROVEMENT BUDGET, DISTRICT
PROJECT NO. 7308
Submitted By:
Craig Mizutani, Senior Engineer
Edgar Lopez, Senior Engineer
Initiating Dept /Div.:
Plant Operations / Operations
Engineering /Capital Projects
REVIEWED AND RECOMMENDED FOR BOARD ACTION:
A Antkowiak, Capital Projects Division Manager
D. Robbins, Provisional Plant Maintenance Division Mgr
C. Swanson, Director of Operations
K. Alm R. Bailey
Counsel for the District General Manager
ISSUE: Board of Directors' approval is requested for this sole- source contract with Solar
Turbines. Authorization by the Board of Directors is required for the addition of funds to the
2013 -14 Capital Improvement Budget.
RECOMMENDATION: Authorize the General Manager to execute a sole- source contract
with Solar Turbines for the installation of fuel and control system upgrades to the district's
cogeneration system for an amount not to exceed $650,000. Solar Turbines is the original
equipment manufacturer for the District's cogeneration gas turbine system.
FINANCIAL IMPACTS: The total anticipated cost for the work under this contract is
approximately $650,000. This project is included in the current fiscal year (FY) 2013 -14
Capital Improvement Budget (CIB). The total project cost is estimated to be $1,300,000.
However, this estimate exceeds the 2013 -14 project budget by $800,000. A supplemental
authorization to the Treatment Plant Program is necessary to be able to complete the
project in this fiscal year.
ALTERNATIVES /CONSIDERATIONS: Sole- source requests bypass the competitive
bidding process. The supply and installation of the upgrade does not lend itself to
competitive bidding as the design of the equipment is proprietary and only the manufacturer
has the unique product knowledge to safely and economically upgrade the system. The
District recently experienced a catastrophic failure of the cogeneration system when
maintenance was performed by an aftermarket service provider.
BACKGROUND: The cogeneration system produces electricity and steam for the
Treatment Plant and provides significant savings over purchasing power from a utility
(PG &E). On March 29, 2012, the cogeneration unit suffered a catastrophic failure caused
by an explosion in the exhaust system. The unit was recommissioned by Solar Turbines,
POSITION PAPER
Board Meeting Date: September 5, 2013
subject. AUTHORIZE THE GENERAL MANAGER TO EXECUTE A SOLE - SOURCE
CONTRACT WITH SOLAR TURBINES, INC. FOR THE COGENERATION SYSTEM
RENOVATION PROJECT, DISTRICT PROJECT NO. 7308
the original equipment supplier, and was restored to service on October 3, 2012. The six -
month outage resulted in an increase in utility expenses of approximately $960,000.
The recommissioning of the unit was hampered by the age of the fuel valves and control
system. In addition, the fuel valves and control system were suspected as contributing
factors to the explosion. Replacement fuel valves had to be manufactured as they are no
longer a stocked item by either Solar Turbines or the valve manufacturer. The control
system is based on a controller manufactured by Modicon. While Modicon controls are
common to District equipment, they are no longer supported by Solar Turbines. The
cogeneration system was first placed into service in the early 1990s. From initial startup to
2011, the system was maintained under a long -term maintenance agreement with Solar
Turbines. The agreement was all- inclusive, covered any repair, and guaranteed availability
of the cogeneration system. In 2011, the District changed service providers to the Wood
Group, which serviced the system until the explosion. Following the explosion, the District
cancelled the service agreement with the Wood Group.
Since being placed back into service, the cogeneration unit has been maintained under a
short-term maintenance agreement with Solar Turbines. The short-term agreement is for
routine maintenance only and does not cover unscheduled repairs. It provides for labor only
and does not cover any parts or provide any guarantees for availability. The District is at
significant financial and operational risk without a long -term service agreement.
At the October 4, 2012 Board Meeting, staff stated they would pursue a long -term service
agreement with Solar Turbines. However, Solar Turbines will not enter into a long -term
service agreement unless the fuel and control systems are upgraded. The obsolescence of
the equipment makes it impossible for them to provide a reasonable response time for
equipment repair /replacement and the Modicon based controls are no longer supported by
Solar Turbines.
Due to the complex nature of the cogeneration turbine, staff recommends performing the
fuel and control system upgrades using Solar Turbines on a sole- source basis. Solar
Turbines has the proprietary engineering skill, product information, knowledge and parts to
safely perform the upgrade. The estimated Solar Turbines contract cost for the upgrade is
$650,000.
The fuel and control system upgrades will be part of the Cogen. Renovation Project, District
Project 7308. Other project elements required are selecting an electrical designer and
electrical contractor to install interconnecting wiring between the turbine, control console,
and District equipment. These contracts have an estimated cost of $50,000 and $250,000,
respectively. These contracts will be awarded based on a qualified evaluation process, in
POSITION PAPER
Board Meeting Date: September 5, 2013
subject. AUTHORIZE THE GENERAL MANAGER TO EXECUTE A SOLE - SOURCE
CONTRACT WITH SOLAR TURBINES, INC. FOR THE COGENERATION SYSTEM
RENOVATION PROJECT, DISTRICT PROJECT NO. 7308
accordance with District purchasing guidelines. In addition, the electrical generator on the
cogeneration unit is approximately 20 years old and needs to be evaluated for replacement.
Depending on the outcome of the evaluation, this piece of equipment may need to be
replaced during the planned shutdown of the cogeneration unit. The estimated cost to
replace the generator is $200,000. District staff will perform contract administration, design
and construction management, and inspection services for the new interconnect wiring not
provided by Solar Turbines. The revised total project cost is estimated to be $1,300,000.
This project is included in the FY 2013 -14 CIB on page TP -20. The estimated total project
cost listed in the 2013 -14 CIB for the project is $800,000. An allocation of $100,000 was
made in 2012 -13 and an estimated allocation of $400,000 to the project was planned for
2013 -14. To complete the project in 2013 -14, an allocation of $1,200,000 will be necessary,
which exceeds the budgeted allocation by $800,000. There are insufficient unallocated
funds in the 2013 -14 CIB Treatment Plant Program to make the necessary allocation to the
project.
The cogeneration system will be in operation for the foreseeable future. The fuel valves and
control system should be upgraded to ensure continued safe and reliable operation of the
cogeneration system and these upgrades are required to re -enter into a long -term service
agreement.
Staff has concluded that this action is exempt from the California Environmental Quality Act
(CEQA) under District CEQA Guidelines Section 15301 since it involves repairs to an
existing public facility involving no expansion of use. Approval of this action will establish
the Board of Directors' independent finding that this project is exempt from CEQA.
COMMITTEE RECOMMENDATION: This matter was reviewed by the Capital Projects
Committee on August 30, 2013.
RECOMMENDED BOARD ACTION: Adopt a resolution authorizing the following action
and making the following findings in connection with the Cogeneration System Renovation
Project, District Project 7308:
Authorize the General Manager to enter into a sole- source contract in an amount not
to exceed $650,000 with Solar Turbines for the installation of fuel and control system
upgrades to the cogeneration system, pursuant to subdivision (c)(3) of Public
Contract Code section 3400 and District Purchasing Standard S -013;
POSITION PAPER
Board Meeting Date: September 5, 2013
Subject: AUTHORIZE THE GENERAL MANAGER TO EXECUTE A SOLE - SOURCE
CONTRACT WITH SOLAR TURBINES, INC. FOR THE COGENERATION SYSTEM
RENOVATION PROJECT, DISTRICT PROJECT NO. 7308
2. Find that:
a. The public interest is best served by utilizing the unique technology that Solar
Turbines, the original equipment manufacturer, has developed to upgrade the
fuel valves and control system of the cogeneration system.
b. Under the circumstances, Solar Turbines is the only qualified supplier to install
the upgrade equipment and that it is in the best interest of the District to
proceed with a sole- source contract with Solar Turbines.
C. The contract is exempt from CEQA.
Approve a supplemental authorization of $800,000 to the Treatment Plant Program of the
2013 -14 Capital Improvement Budget.
2129450.1
Attached Supporting Document.
1. Proposed Resolution