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HomeMy WebLinkAbout08.a. Approve agreement with Carollo Engineers, Inc. re Phase 1 of Plant of the Future RoadmapCentral Contra Costa Sanitary District Q. ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: April 3, 2014 Subject: AUTHORIZE THE GENERAL MANAGER TO EXECUTE AN AGREEMENT WITH CAROLLO ENGINEERS, INC. FOR PROFESSIONAL ENGINEERING SERVICES FOR PHASE 1 OF THE PLANT OF THE FUTURE ROADMAP AND APPROVE A SUPPLEMENTAL AUTHORIZATION OF $650,000 TO THE TREATMENT PLANT PROGRAM OF THE 2014 -15 CAPITAL IMPROVEMENT BUDGET Submitted By Initiating Dept. /Div.: Randy Schmidt, Senior Engineer Treatment Plant Operations/ Regulatory Workgroup REVIEWED AND RECOMMENDED FOR BOARD ACTION: C. Swanson — Director of Operations 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) 2014 -15 Capital Improvement Budget (CIB). RECOMMENDATION: Authorize the General Manager to execute an agreement with Carollo Engineers, Inc., for professional engineering services at a cost not to exceed $625,000 for Phase 1 of the Plant of the Future Roadmap ( ROADMAP). In addition, approve a supplemental authorization of $650,000 to the Treatment Plant Program of the FY 2014 -15 CIB to cover the remaining costs for Phase 1 of the ROADMAP. FINANCIAL IMPACTS: The District has selected Carollo Engineers, Inc., to assist in the development of the ROADMAP. Phase 1 - Assessment of Future Facility Needs (of the ROADMAP) is estimated to cost $625,000 for consultant assistance and $125,000 in other costs for a total of $750,000. A request for $100,000 from the Treatment Plant Contingency Fund for FY 2013 -14 has been sent to the General Manager for approval. This will cover the start of Phase 1 of the ROADMAP preparation. A supplemental authorization of $650,000 to the Treatment Plant Program of the FY 2014 -15 CIB is required to fully fund Phase 1 of the ROADMAP. ALTERNATIVES /CONSIDERATIONS: The $100,000 contingency request is enough to start Phase 1 of the ROADMAP in April of 2014, but is insufficient to conduct the Phase 1 work required in FY 2014 -15. Failure to conduct the Phase 1 work for the ROADMAP leaves the District susceptible to unexpected costs in energy, regulatory compliance, process renovation, and possible unsustainable operational costs. The supplemental authorization of $650,000 to the Treatment Plant Program of the Page 1 of 4 POSITION PAPER Board Meeting Date: April 3, 2014 subject: AUTHORIZE THE GENERAL MANAGER TO EXECUTE AN AGREEMENT WITH CAROLLO ENGINEERS, INC. FOR PROFESSIONAL ENGINEERING SERVICES FOR PHASE 1 OF THE PLANT OF THE FUTURE ROADMAP AND APPROVE A SUPPLEMENTAL AUTHORIZATION OF $650,000 TO THE TREATMENT PLANT PROGRAM OF THE 2014 -15 CAPITAL IMPROVEMENT BUDGET FY 2014 -15 CIB is not budgeted in the 10 -year Capital Improvement Plan (CIP). The additional funds can come from deferred or cancelled Capital Projects, cash reserves, and /or increased rates. BACKGROUND: The majority of the District's wastewater treatment facilities were constructed during the 1970's. Due to the age of the treatment facilities and anticipated or possible changes to state and /or federal water and air regulations, the District expects to make significant investments in treatment plant improvements over the next twenty years. Before making these investments, it is prudent to first consider a range of treatment process options, instead of assuming that continued investment in the current treatment process is the appropriate approach. Toward this effort, the District conducted a Treatment Plant of the Future visioning exercise. Several competent consulting firms were asked to participate in this visioning exercise. 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, • Maximize the use of recycled water, • Insure 100% compliance with all future air, water, and solids regulations, and 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 two 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 Engineers, Inc., had the best combination of approach, team, and master planning background to assist the District in creating a ROADMAP. The ROADMAP is a planning and implementation strategy for making near -term and long -term treatment facilities improvements. The ROADMAP 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 C:\ Users\ danderson \HppData \Local\Microsoft \Windows \Temporary Internet Files \Content.Outlook \DVCG8C5G \Treatment Plant of the Future 04 -03 -14 (2).doc POSITION PAPER Board Meeting Date: April 3, 2014 subject: AUTHORIZE THE GENERAL MANAGER TO EXECUTE AN AGREEMENT WITH CAROLLO ENGINEERS, INC. FOR PROFESSIONAL ENGINEERING SERVICES FOR PHASE 1 OF THE PLANT OF THE FUTURE ROADMAP AND APPROVE A SUPPLEMENTAL AUTHORIZATION OF $650,000 TO THE TREATMENT PLANT PROGRAM OF THE 2014 -15 CAPITAL IMPROVEMENT BUDGET 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 performance. The ROADMAP will maximize the use of past and future research developments as well as coordinate and compile ongoing planning and capital project efforts to provide a plant -wide comprehensive roadmap into the next 20 years. The ROADMAP will serve as a guidance document for the treatment plant that is flexible to changing needs, goals, and regulatory requirements. The ROADMAP is divided into the following four distinct phases: 1. Assessment of Future Facility Needs 2. Identification and Desktop Evaluation of Process Options (both conventional and experimental) 3. Development of Process Scenarios Including Pilot Testing of Experimental Processes Identified in Phase 2 4. Selection of Most Likely ROADMAP Scenarios and Development of the ROADMAP Implementation Plan Each Phase of the Roadmap is divided into several tasks. Phase 1 Tasks are as follows: 1.0 Develop Goals and Objectives, Planning Principles, and Evaluation Criteria 1.1 Project Control Plan and Outreach Support 1.2 Master Plan Goals, Planning Principles, and Evaluation Criteria 1.3 Workshop 1 —Visioning, Goals, Objectives and Evaluation Criteria 2.0 Evaluate Existing Information and, Data 3.0 Define Existing System and Planning Parameters 3.1 Historical Wastewater Flows /Characteristics and Receiving Water Quality 3.2 Existing Treatment Plant Performance and Capacity 3.3 Projected Wastewater Flows /Characteristics and Reuse Demands 4.0 Determine and Evaluate Future Needs C:\ Users \danderson\HppData \Local \Microsoft \Windows \Temporary Internet Files \Content.Outlook \DVCG8C5G \Treatment Plant of the Future 04 -03 -14 (2).doc POSITION PAPER Board Meeting Date: April 3, 2014 subject: AUTHORIZE THE GENERAL MANAGER TO EXECUTE AN AGREEMENT WITH CAROLLO ENGINEERS, INC. FOR PROFESSIONAL ENGINEERING SERVICES FOR PHASE 1 OF THE PLANT OF THE FUTURE ROADMAP AND APPROVE A SUPPLEMENTAL AUTHORIZATION OF $650,000 TO THE TREATMENT PLANT PROGRAM OF THE 2014 -15 CAPITAL IMPROVEMENT BUDGET 4.1 Existing and Anticipated Regulatory Requirements 4.2 Asset Management Plan Review 4.3 Determine Future Treatment Facilities Needs 4.4 Workshop No. 2 - Future Facility Needs and "Spin Out" Projects The cost of Phase 1 is estimated to be $750,000. A contingency allocation of $100,000 to fund staff and consultant services for Task 1 of Phase 1 for the remainder of FY 2013 -14 has been sent to the General Manager for approval. There is approximately $500,000 in the Treatment Plant Contingency Fund for FY 2013 -14. This position paper requests approval of a $650,000 supplemental authorization to the Treatment Plant Program of the FY 2014 -15 to finish Phase 1 of the ROADMAP. Phase 1 of the ROADMAP is expected to take approximately one year to complete. Phases 2 — 4 of the ROADMAP could take another three years or more. The total cost for the ROADMAP Phases 1 — 4 is estimated to be $4,000,000 depending on the feasible conventional process alternatives as well as and the amount of pilot testing needed for feasible experimental process alternatives. RECOMMENDED BOARD ACTION: Authorize the General Manager to execute an agreement with Carollo Engineers, Inc., for professional engineering services at a cost not to exceed $625,000 for Phase 1 of the ROADMAP as identified from the Plant of the Future visioning exercise. In addition, approve a supplemental authorization of $650,000 to the Treatment Plant Program of the FY 2014 -15 CIB to cover the remaining costs for Phase 1 of the ROADMAP. C:\ Users \danderson\AppData \Local \Microsoft \Windows \Temporary Internet Files \Content.Outlook \DVCG8C5G \Treatment Plant of the Future 04 -03 -14 (2).doc