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HomeMy WebLinkAbout03. RMC Final Recycle Water Wholesale Opportunities Study and draft PP to amend existing agreement3. Central Contra Costa Sanitary District ' BOARD OF DIRECTORS @g&[py POSITION PAPER Board Meeting Date: February 18, 2016 Subject: AUTHORIZE THE GENERAL MANAGER TO AMEND AN EXISTING AGREEMENT WITH RMC WATER AND ENVIRONMENT FOR PROFESSIONAL SERVICES FOR THE DISTRICT'S WHOLESALE RECYCLED WATER OPPORTUNITIES STUDY Submitted By: Initiating Dept./Div.: Melody LaBella, P.E. Engineering & Technical Services/ Associate Engineer Environmental & Regulatory Compliance REVIEWED AND RECOMMENDED FOR BOARD ACTION: JM. Petit, Director of Engineering & Technical Services Roger S. Bailey General Manager ISSUE: Board of Directors' authorization is required for the General Manager to amend an existing professional services agreement in an amount greater than $100,000. BACKGROUND: In May 2015, after completing a formal request for proposals and interview process, staff selected RMC Water and Environment (RMC) to complete a study on opportunities for the District to wholesale large quantities of its potential supply of recycled water. In June 2015, staff entered into a $75,000 contract with RMC and issued the notice to proceed on the study. Staff amended RMC's contract in October 2015 to $95,000 and added additional scope elements to support the wholesale study. RMC completed the study in early 2016, which identified four potential projects to pursue, including the Refinery Project (with a third party buyer of the freed up water), an agricultural option which would provide recycled water to the Delta Mendota Canal and two options for potable reuse (either indirect or direct) via Contra Costa Water District's and/or East Bay Municipal District's facilities to the Bay Area Regional Reliability Partners or another end user. RMC also identified next steps to initiate discussions to continue evaluating the feasibility of the four potential projects. Staff is now recommending that the District retain RMC on an as -needed basis to pursue and/or coordinate the follow up discussions identified as next steps, and to pursue further development of the projects identified in the wholesale study. RMC has provided a $75,000 scope of work for completing the next steps and staff would issue task orders on an as -needed basis. This work addresses Goal Four of the District's Strategic Plan and specifically the Initiative related to developing partnerships and collaborations with other districts and public agencies to augment the region's water supply, while expanding access to recycled water for the District's customers. Page 1 of 2 POSITION PAPER Board Meeting Date: February 18, 2016 Subject: AUTHORIZE THE GENERAL MANAGER TO AMEND AN EXISTING AGREEMENT WITH RMC WATER AND ENVIRONMENT FOR PROFESSIONAL SERVICES FOR THE DISTRICT'S WHOLESALE RECYCLED WATER OPPORTUNITIES STUDY ALTERNATIVES/CONSIDERATIONS: The Board could decide to not pursue moving forward with next steps on the potential recycled water projects identified in the wholesale study and instead conduct the follow-up in house, as staff time allows. FINANCIAL IMPACTS: The additive cost of this amendment, including staff time, is approximately $100,000, and will be funded out of the Planning & Development Services Division's technical services budget. COMMITTEE RECOMMENDATION: The Real Estate, Environmental & Planning Committee reviewed this subject at its meeting on February 9, 2016. RECOMMENDED BOARD ACTION: Authorize the General Manager to execute an amendment to an existing Professional Services Agreement with RMC Water and Environment in the amount of $75,000 from $95,000 to $170,000 for the District's Wholesale Recycled Water Opportunities Study. Attached Supporting Document(s). 1. PowerPoint Presentation Page 2 of 2 —alonual Contra Costa 4RMC A Sanitary District Recycled Water Wholesale Opportunities Central Contra Costa Sanitary District REEP Committee Meeting February 9, 2016 Complex Challenges i Innovative Solutions Overview of Recycled Water Supply Yield Overview of Regional Water Facilities & Market Assessment Alternatives Evaluation Next Steps z ATTACHMENT 1 1 Average Dry Weather Flow: 30.4 mgd In -plant: 1.1 mgd Current Zone 1 (S): 0.5 mgd Zone 1 Future Commitment (S): 0.1 mgd Future Concord Naval Weapons Station (S): 2.5 mgd Pending Shell Refinery (CCWD): 0.5 mgd Potential Available Recycled Water 25.7 mgd (S) = seasonal 3 2/5/2016 2 2/5/2016 • CCWD Canal • Local Golf Courses EBMUD Mokelumne Aqueduct #1 or #2 • Local refineries EBMUD San Pablo Res. • Export to Ag - DMC EBMUD Briones Res. • Export to DERWA EBMUD Upper San • Export to Delta Leandro Res Diablo Lafa ette Reservoir • Los Vaqueros Reservoir • CCWD Clayton groundwater recharge • Send San Ramon DSRSD groundwater Pump Station to recharge DSRSD • EBMUD Mokelumne Aqueduct #1, 2, or 3 • CCWD Mallard Reservoir) Bollman Vv Alt #1— Recycled Water to Refineries 11 Refirre • Utilizes existing infrastructure 20 mgd demand Alt #2 — Recycled Water to DMC Approximately 40 miles to • • • facility Y-�ryia Z ♦RMC * DSRSD ® Bay Area Regional Reliability Partners (BARR) CCWD EBMUD San Francisco PUC Alameda Co. WD Santa Clara Valley WD Zone 7 Marin Municipal WD Bay Area Water Suppliers & Conservation Agencies (BAWSCA) 9 Customer Product Water Volume Treatment CCWD or CVP Contractor BARR or BARR or BARR or DSRSD DSRSD DSRSD DSRSD 20 MGD 25.4 MGD 20.3 MGD 20.3 MGD 20.3 MGD Tertiary w/ Tertiary w/ IPR — FAT nitrification nit &denit (MF/RO/AOP) Conveyance Existing 40 mi. 42" Infrastructure infrastructure pipeline Additional Additional Considerations infrastructure 42" pipeline needed to wheel Additional to 31d parties 31 mi. 42" pipeline Additional infrastructure needed to wheel to 31d parties I DPR—FATwith DPR—FATwith additional additional treatment treatment 3 miles of 3 miles of 42" pipeline 42" pipeline Additional Additional infrastructure infrastructure neededto needed to wheel to 3r° wheel to 3`d parties parties 2/5/2016 I✓1 Capital Costs $135.3 M $574.9 M $640.3 M $530.2 M $530.2 M %Treatment 80% 24% 51% 80% 80% Conveyance 20% 76% 49°% 20% 20% Annualized Capital $7.3 M $31.1 M $34.6 M $28.7 M $28.7 M Annual O&M $10.9 M $13.7 M $21.3 M $22.2 M $23.0 M Total Annual $18.2 M $44.8 M $55.9 M $50.8 M $51.7 M Yield (AFY) 22,403 28,452 22,761 22,761 22,761 Unit Cost($/AF) $810 $1,600 $2,500 $2,200 $2,300 11 Initiate Discussions to Continue Evaluation DSRSD - Refinery RW exchange with CCWD for raw water DPR augmentation through EBMUD San Luis Delta Mendota Water Authority & Reclamation Regional Reliability Partners IPR/DPR as a local reliable supply alternative CCWD Can serve as partner in all alternatives through exchanges 12 2/5/2016 11 2/5/2016 RMC QUESTIONS?