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HomeMy WebLinkAbout09.a. Agreement with Carollo Engineers to develop Treatment Plant of the Future RoadmapBoard Meeting Date: March 20, 2014 Subject: AUTHORIZE THE GENERAL MANAGER TO EXECUTE AN AGREEMENT WITH CAROLLO ENGINEERS, INC., FOR PROFESSIONAL ENGINEERING SERVICES TO DEVELOP THE PLANT OF THE FUTURE ROADMAP, DISTRICT PROJECT NO. 7237, AND APPROVE A SUPPLEMENTAL AUTHORIZATION OF $1,300,000 TO THE TREATMENT PLANT PROGRAM OF THE 2013 -14 CAPITAL IMPROVEMENT BUDGET Submitted By: Initiating Dept /Div.: Randy Schmidt, Senior Engineer Operations /Regulatory Workgroup REVIEWED AND RECOMMENDED FOR BOARD ACTION: C. Swanson — Director of Operations _ A a�• i R. Bailey General Manager ISSUE: Board of Directors' authorization is required for the General Manager to execute a Professional Engineering Services Agreement greater than $100,000. Board authorization is required for the addition of funds to the Fiscal Year (FY) 2013 -14 Capital Improvement Budget (CIB). RECOMMENDATION: Authorize the General Manager to execute a Professional Engineering Services Agreement with Carollo Engineers, Inc., to develop a roadmap to meet the Plant of the Future Vision for an amount not to exceed $1,200,000; and approve a supplemental authorization of $1,300,000 to the Treatment Plant Program of the FY 2013 -14 CIB to cover this and other project elements. FINANCIAL IMPACTS: The Capital Improvement Plan (CIP) shows that the Treatment Plant Master Plan Update, District Project 7237, has expended approximately $375,000 on the development of a Treatment Plant of the Future vision and wastewater treatment process simulator. There is approximately $100,000 of allocated but unspent funds for FY 2013 -14 and $300,000 in unallocated funds for FY 2014 -15. The estimated cost for the Treatment Plant of the Future roadmap is approximately $1,700,000. A supplemental authorization of $1,300,000 to the Treatment Plant Program of the FY 2013 -14 CIB is required to fully fund the project. ALTERNATIVES /CONSIDERATIONS: The $400,000 of budgeted funds will allow for limited near -term Treatment Plant planning, but is insufficient to conduct the long -term visionary planning recommended in the Plant of the Future findings. Failure to conduct the long -term visionary planning for the Plant of the Future leaves the District susceptible to unexpected costs in energy, regulatory compliance, process renovation, and possible unsustainable operational costs. The supplemental authorization of POSITION PAPER Board Meeting Date: March 20, 2014 Subject: AUTHORIZE THE GENERAL MANAGER TO EXECUTE AN AGREEMENT WITH CAROLLO ENGINEERS, INC., FOR PROFESSIONAL ENGINEERING SERVICES TO DEVELOP THE PLANT OF THE FUTURE ROADMAP, DISTRICT PROJECT NO. 7287, AND APPROVE A SUPPLEMENTAL AUTHORIZATION OF $1,300,000 TO THE TREATMENT PLANT PROGRAM OF THE 2013 -14 CAPITAL IMPROVEMENT BUDGET $1,300,000 to the Treatment Plant Program of the FY 2013 -14 CIB is not budgeted in the 10 -year CIP. BACKGROUND: The District spent approximately $375,000 to date for the Treatment Master Plan Update, District Project 7287. This included $225,000 for conducting the Treatment Plant of the Future visioning exercise in 2011 and $150 000 for development of a site - specific Treatment Plant Process Simulator using BioWinfm. Several competent consulting firms were asked to participate in a Treatment Plant of the Future visioning exercise for the District. Two firms elected to participate. The goals of the visioning exercise were to identify future actions and /or projects that: • Minimize discharge to the water, land and air. • Provide energy self- sufficiency. • Increase the use of Recycled Water. • Insure 100% compliance with all future air, water, and solids regulations. • Direct active management of monetary and human resources for long -term sustainable operation. Each Plant of the Future Vision was reviewed by an expert Technical Advisory Council (TAC) for strengths and weaknesses. The TAC along with District Staff conducted a day -long discussion for each of the Plant of the Future Visions. The TAC prepared a Technical Memorandum which summarized the strengths and weaknesses of each approach. After careful consideration, the District determined that Carollo Engineering, Inc., had the best combination of approach, team, and master planning background to assist the District in this effort. This effort is much more than a traditional Master Plan (Master Plan0l. A better name would be Roadmap to Treatment Plant of the Future ( Roadmap). In order to reach the Plant of the Future Plan vision, this project will address all of the current and future issues that are facing the District in sufficient scope and depth to be able to make the right CIP project and program investment decisions at the right time. Major issues to consider include energy optimization, nutrient removal, and minimization of greenhouse gas impacts. It is also expected that the Roadmap will help to streamline work flow, improve internal consistency and communications, optimize on -going operations and implement near -term projects consistent with the long -term vision, and improve efficiencies in all dimensions of performance. N:\HDMINSUP\HDMIN \DIST- SEC \Position Papers\2014 \Treatment Plant of the Future 03- 20- 14.doc POSITION PAPER Board Meeting Date: March 20, 2014 Subject: AUTHORIZE THE GENERAL MANAGER TO EXECUTE AN AGREEMENT WITH CAROLLO ENGINEERS, INC., FOR PROFESSIONAL ENGINEERING SERVICES TO DEVELOP THE PLANT OF THE FUTURE ROADMAP, DISTRICT PROJECT NO. 7287, AND APPROVE A SUPPLEMENTAL AUTHORIZATION OF $1,300,000 TO THE TREATMENT PLANT PROGRAM OF THE 2013 -14 CAPITAL IMPROVEMENT BUDGET The Roadmap will maximize the use of past, current, and future research developments as well as coordinate and compile ongoing planning and capital project efforts to provide a plant -wide comprehensive roadmap for the next 20 years. The Roadmap will serve as a living and guiding document for the treatment plant that is still flexible to changing needs, goals, and regulatory requirements. The Roadmap team will develop the project deliverables through the following steps: • Document Existing Facilities /Performance - Build on already completed work to assimilate the findings and conclusions of past studies and reports to confirm existing facilities and performance. Complete and coordinate the asset condition assessment(s) with the Asset Management Plan. Develop the future regulatory and capacity requirements. • Identify Gaps /Needs Analysis - Compare the existing facilities condition, performance, and capacity against the anticipated future needs in order to identify any gaps in performance or capacity. • Identify Linkages /Alternative Evaluation - Develop a wide range of alternatives and identify the key linkages among the planning issues and elements. Advance the resulting ideas through a step -wise series of analyses using a proven planning decision analytic framing process. This process will identify critical issues, quantify costs and benefits, and rank the alternatives. • Optimization & Financial Analysis - Use an optimization analysis approach to set up a computer- driven scenario builder. Run combinations of alternatives to identify the optimum. The result is the best combination of policies, projects, and on -going programs. This step includes developing estimated costs, and a financial evaluation. • Project Deliverables and Documentation - Documents all findings, conclusions, and recommendations to complete the Roadmap deliverables and files. The process is planned for three phases. Each phase will coincide with major milestones and a workshop. The phases are as follows: 1. Phase 1 —Assessment of Future Facility Needs 2. Phase 2 — Development of Alternatives, and Selection of the Recommended Roadmap Scenario 3. Phase 3 — Development of the Roadmap Scenario and Implementation Plan a. Description of planning policies, projects, and programs. N:WDMINSUPWDMIN\DIST- SEC \Position Papers\2014 \Treatment Plant of the Future 03- 20- 14.doc POSITION PAPER Board Meeting Date: March 20, 2014 Subject: AUTHORIZE THE GENERAL MANAGER TO EXECUTE AN AGREEMENT WITH CAROLLO ENGINEERS, INC., FOR PROFESSIONAL ENGINEERING SERVICES TO DEVELOP THE PLANT OF THE FUTURE ROADMAP, DISTRICT PROJECT NO. 7287, AND APPROVE A SUPPLEMENTAL AUTHORIZATION OF $1,300,000 TO THE TREATMENT PLANT PROGRAM OF THE 2013 -14 CAPITAL IMPROVEMENT BUDGET b. 30 -year Implementation Schedule. c. Estimated capital, and O &M costs. d. Funding requirements and rates & charges. e. Development of Roadmap Documents. There are four master planning workshops planned for critical milestones during the process. These workshops are intended to help assure the integration of the major issues and planning elements. The goal is to bring together multiple disciplines to develop a full range of visioning ideas and conceptual alternatives. The workshops are intended to engage the stakeholders in interactive sessions to review, understand, and agree upon the key master planning decisions and recommendations. COMMITTEE RECOMMENDATION: This matter is scheduled for review by the Engineering & Operations Committee on March 17, 2014. RECOMMENDED BOARD ACTION: Authorize the General Manager to execute a Professional Engineering Services Agreement with Carollo Engineers, Inc., to develop the Treatment Plant of the Future Roadmap for an amount not to exceed $1,200,000; and approve a supplemental authorization of $1,300,000 to the Treatment Plant Program of the FY 2013 -14 CIB to cover this and other project elements. N:\ADMINSUP\ADMIN \DIST- SEC \Position Pape rs\2014 \Treatment Plant of the Future 03- 20- 14.doc