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Home My WebLink About05.d.1)c) Action Summary-Engineering & Operations Committee 4-21-14EVI'm Central Contra Costa Sanitary District REGULAR MEETING OF THE BOA RD OF DIRECTORS: CENTRAL CONTRA COSTA DA67Da. WILLIAMS SANITARY DISTRICT PresIdent ENGINEERING & OPERATIONS MICPrAELR.M Po•esrden[ Pro ro T hem em COMMITTEE PAUL ITCAUSEY JAMESA. NEJF.DLY 7AD.I. PILECKI ACTION SUMMARY PHONE: (925) 228 -9500 FAX. (925) 676 -7211 Chair Pilecki www.centralsan.org Member Causey Monday, April 21, 2014 1:00 P.M. 2nd Floor Conference Room 5019 Imhoff Place Martinez, California PRESENT: Chair Tad Pilecki, Member Paul Causey, General Manager Roger Bailey, Capital Projects Division Manager Andrew Antkowiak, Senior Engineer Sasha Mestetsky, Senior Engineer Edgar Lopez, Plant Operations Maintenance Division Manager Neil Meyer, Director of Administration David Heath, Information Technology Administrator Roy Li, Provisional Associate Engineer Melody LaBella (left after Item 4.), Associate Engineer Nathan Hodges (left after Item 4.), Associate Engineer Dan Frost (left after Item 4.), Environmental Services Division Manager Danea Gemmell, Senior Engineer Tom Godsey (left after Item 5.), Development Services Supervisor Kim Stahl (left after Item 5.), Engineering Assistant III Earlene Millier 1. Call Meeting to Order Chair Pilecki called the meeting to order at 1:00 p.m. 2. Public Comments None. 3. Old Business a. Review staff's responses to questions from the February 11, 2014 meeting [Continued from the March 17, 2014 meeting]: Engineering & Operations Committee Action Summary April 21, 2014 Page 2 Regarding Item 3. a. 1), Senior Engineer Sasha Mestetsky discussed upcoming cathodic protection work, breakdown of costs and prioritization of the identified deficiencies. Regarding Item 3. a.2), Senior Engineer Edgar Lopez stated that the relocation costs of the Seismic Improvements for HOB project exceeded estimates largely due to increases in the cost of moving personnel and the associated IT work. COMMITTEE ACTION: Reviewed the responses. *4. Discuss the District's possible participation in the Regional Renewable Energy Procurement (R -REP) Project Provisional Associate Engineer Melody LaBella and Associate Engineer Dan Frost gave a presentation on the R -REP Project (attached), which would potentially install solar systems at Collection System Operations (CSO), the Household Hazardous Waste Collection Facility (HHWCF), and the Vehicle Repair Shop. Ms. LaBella and Mr. Frost discussed project criteria, pricing, and the benefits and disadvantages of the project. The Committee discussed the project and stated it would be willing to entertain the idea of the District entering into a Power Purchase Agreement for solar power. The Committee concurred that the "triple bottom line" approach was appropriate but noted that the system might not work for the District's Vehicle Maintenance facility due to uncertainties about the future of the facility and the relatively low cost of power for it. COMMITTEE ACTION: Requested that staff look into costs, contract terms, technical details of the system, and any potential future wheeling costs for using PG &E's grid system. District Project No. District Project Name Information Requested (Responses are included in the Agenda Packet) 1) 8410 Cathodic Protection Breakdown of costs S stem Upgrade 2) 8226 Seismic Improvements Total cost of moving the HOB staff and a cost for Headquarters Office breakdown, including the Board - approved award Building (HOB) (lowest bid) plus contingency plus construction management plus total project cost and pre -bid ex enditures Regarding Item 3. a. 1), Senior Engineer Sasha Mestetsky discussed upcoming cathodic protection work, breakdown of costs and prioritization of the identified deficiencies. Regarding Item 3. a.2), Senior Engineer Edgar Lopez stated that the relocation costs of the Seismic Improvements for HOB project exceeded estimates largely due to increases in the cost of moving personnel and the associated IT work. COMMITTEE ACTION: Reviewed the responses. *4. Discuss the District's possible participation in the Regional Renewable Energy Procurement (R -REP) Project Provisional Associate Engineer Melody LaBella and Associate Engineer Dan Frost gave a presentation on the R -REP Project (attached), which would potentially install solar systems at Collection System Operations (CSO), the Household Hazardous Waste Collection Facility (HHWCF), and the Vehicle Repair Shop. Ms. LaBella and Mr. Frost discussed project criteria, pricing, and the benefits and disadvantages of the project. The Committee discussed the project and stated it would be willing to entertain the idea of the District entering into a Power Purchase Agreement for solar power. The Committee concurred that the "triple bottom line" approach was appropriate but noted that the system might not work for the District's Vehicle Maintenance facility due to uncertainties about the future of the facility and the relatively low cost of power for it. COMMITTEE ACTION: Requested that staff look into costs, contract terms, technical details of the system, and any potential future wheeling costs for using PG &E's grid system. Engineering & Operations Committee Action Summary April 21, 2014 Page 3 5. Receive report on bundling development fees for a more flexible practice and reduced rates for developers, which will include allowing staff to perform inspections at both the foundation phase and the "roof and rough" phase Senior Engineer Tom Godsey gave a brief description of how the bundled fees would be applied. The Committee discussed the timing of payment of capacity fees. COMMITTEE ACTION: Received report and directed staff to modify the proposal to allow for approval by the full Board as a pilot program. 6. Receive Change Order Log, Quarterly Reports, and Bid Schedules to compare budgeted versus actual costs Staff and the Committee Members discussed the capital projects financial reports. The reports are printed directly from the Sungard software that cannot be easily modified. The District is currently in process of developing new IT Master Plan and is looking at new software that might have more capability for custom report formats. COMMITTEE ACTION: Received the information. 7. Review schedule and discuss upcoming bids and awards and discuss change orders over $50,000, if needed. Senior Engineer Edgar Lopez stated that District Project 8406 Pump Station Security Upgrades will focus on pumping stations that need security upgrades. There have been security incidents at several pumping stations lately and this project will address the issues. This project is listed in both FY 2013 -14 and FY 2014 -15 Capital Improvement budgets. The current engineer's cost estimate is higher than the CIB budget. There is enough money in allocations in the FY 2013 -14 Treatment Plant Program to award this project. Staff is planning to ask the Board to award this project at the May 15, 2014 Board meeting. Mr. Lopez also described District Project 7309 DAF Tanks Renovation. The apparent low bidder is non - responsive and staff, with concurrence of the legal counsel, recommends award to the second lowest bidder. Contract award is scheduled for May 15, 2014, and staff will be requesting a supplemental authorization to the contingency account to fund this project. Member Causey said he would like to see an expanded explanation of what caused the project costs to escalate in the position paper. Because the project is being funded out of the contingency account, no other projects are affected. Engineering & Operations Committee Action Summary April 21, 2014 Page 4 8. Review draft Position Paper setting public hearing to consider draft Fiscal Year (FY) 2014 -15 Capital Improvement Budget (CIB) and 2014 Ten -Year Capital Improvement Plan (CIP) Member Causey suggested one change to the position paper (change "budgets" to "allocations" under Alternatives /Considerations). COMMITTEE ACTION: Reviewed and recommended the Board set the public hearing. 9. Review of the Fiscal Year 2014 -15 Draft CIB and Draft 2014 Ten -Year CIP (Binder was provided at the 4/3/2014 Board Meeting) COMMITTEE ACTION: Continued the item to a special meeting, to be scheduled for Monday, April 28 at 1 p.m. 10. Announcements a. Next meeting scheduled for Tuesday, May 27, 2014 at 1 :00 p.m. b. General Manager Roger Bailey introduced Director of Administration David Heath. COMMITTEE ACTION: Received the announcements. 11. Suggestions for future agenda items ►C7iM 12. Adjournment — at 2:56 p.m. 0 FJ Regional Renewable Energy Procurement April 21, 2014 Engineering & Operations Committee Meeting Planning Group Central Contra Costa Sanitary District Background • Entered into MOU in January 2013 • 2 CSO sites (main building and vehicle repair shop) and our HHWCF were included. • Alameda County put project out to bid in late Summer 2013. • Proposals were due mid - January 2014. • Alameda County evaluated 12 bids and selected SunEdison as the winning vendor last month. • Pace is accelerating due to some agencies having deadlines to meet (CSI and Climate Action Plan). 4/21/2014 44. 1 i c,ecision Criteria for Evaluatinj� 20-Year Solar PPA • Economic only decision? • Triple bottom line? (financial, social, environmental equally weighted) • Support strategic plan? ➢Goal 1, Strategy 3 of Strategic Plan: "Explore technologies that use less energy and produce less greenhouse gases" ➢Goal 4, Strategy :1 of Strategic Plan: "Become a "Net Zero Consumer" consistent with best practice Utility of the Future models." CSO Main Building PPA- Initial Price $0..1698 per kWh PPA- Net Beneflt(20- years) $450,000 4/21/2014 2 4/21/2014 HHWC PPA- initial Price $0.2066 per kWh PPA- Net Beneflt(20•Years) $55,000 Vehicle Repair Shop PPA- Initial Price $0.2115 per kWh PPA- Not Beneflt(20- Years) $70,000 'I • All solar systems result in net energy savings • Savings begin in Year 1 of PPA • Minimal energy savings with HHW and Vehicle Repair Shop solar systems • Most energy savings with CSO solar system Benefits /Disadvantages of 20 -Year Solar PPA • Benefits • Energy cost savings • Energy independence /cost stability • Reduced carbon footprint • Participant in high visibility regional procurement effort • Shaded storage /carports provided with canopy structures • Supports strategic plan initiative to reduce imported energy • Disadvantages • Minimal energy savings over the long -term, particularly with HHW and Vehicle Repair Buildings • Unforeseen costs (administrative, site modifications, etc) 4/21/2014 E Board Direction on Criteria for Evaluating 20 -Year Solar PPA • Economic only decision? • Triple bottom line? (financial, social, environmental equally weighted) • Support strategic plan? ➢Goal 1, Strategy 3 of Strategic Plan: "Explore technologies that use less energy and produce less greenhouse gases" ➢Goal 4, Strategy 1 of Strategic Plan: "Become a "Net Zero Consumer" consistent with best practice Utility of the Future models." 4/21/2014 5