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HomeMy WebLinkAbout08.d.1)b) Minutes-Engineering & Operations Committee 11-16-168.d.1)b) Central Contra Costa Sanita Dist ict SPECIAL MEETING OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT ENGINEERING & OPERATIONS COMMITTEE MINUTES Wednesday, November 16, 2016 1:30 p.m. 2nd Floor Conference Room 5019 Imhoff Place Martinez, California Committee: Chair Paul Causey Member Tad Pilecki Guests: Sanjay Reddy, Black and Veatch (left after Item 3.) Staff: General Manager Roger S. Bailey Deputy General Manager Ann Sasaki Director of Engineering and Technical Services Jean -Marc Petit Capital Projects Division Manager Edgar Lopez Senior Engineer Craig Mizutani Accountant Am al Lyon Senior Administrative Technician Cindy Granzella BOARD OF DIRECTORS: TAD J. PILECKI President PAUL H. CAUSEY President Pro Ten2 .MICHAEL R. MCGILL JAMES A. NEJEDLY DAVID R. WILLIAMS PHONE: (925) 228-9500 FAX: (925) 676-7211 www.centralsan.org 1. Call Meeting to Order Chair Causey called the meeting to order at 1:33 p.m. 2. Public Comments None. 3.* Further review of draft Position Paper to authorize the General Manager to execute a professional engineering services agreement for the Solids Handling Engineering & Operations Committee Minutes November 16, 2016 Page 2 Facilities Alternatives Evaluation and Predesign [continued from November 8, 2016 meeting] Mr. Petit distributed a revised draft position paper to replace the one that was in the agenda materials (attached). The Committee reviewed and provided feedback to staff to clarify the position paper. Chair Causey and Member Pi item 4. (Committee Handout) Central Contra Costa Sanitary District BOARD OF DIRECTORS POSITION PAPER IL,J1 Board Meeting Date: December 1, 2016 Subject: AUTHORIZE THE GENERAL MANAGER TO EXECUTE A PROFESSIONAL SERVICES ENGINEERING AGREEMENT WITH BLACK & VEATCH CORPORATION FOR THE SOLIDS HANDLING FACILITIES ALTERNATIVES EVALUATION AND PREDESIGN PROJECT Submitted By: Initiating Dept./Div.: Nathan Hodges Engineering and Technical Services/ Associate Engineer Capital Projects Division REVIEWED AND RECOMMENDED FOR BOARD ACTION: C. Mizutani — Senior Engineer D. Frost — Senior Engineer E. Lopez — Capital Projects Division Manager JM. Petit — Director of Engineering and Technical Services Roger S. Bailey General Manager ISSUE: Board of Directors' (Board) authorization is required for the General Manager to execute a professional engineering agreement in an amount greater than $100,000 and for budget transfers over $500,000 in the Capital Improvements Budget (CIB). BACKGROUND: The CIB Treatment Plant Program includes several projects associated with the solids handling facilities at the District. These projects are as follows: • District Project 7286: Centrifuge and Cake Pumps Upgrades • District Project 7312: Ash Facilities Improvements • District Project (TBD): Wet Scrubber Replacement In addition, the Capital Improvement Plan (CIP) includes another project associated with the solids handling facilities at the District: • Solids Conditioning Building Seismic Improvements One of the key findings of the Comprehensive Wastewater Master Plan (CWMP) is that the District's multiple hearth furnaces (incinerators) are in good physical condition due to good operation and maintenance practices. However, related solids handling support facilities require upgrades or replacement to maximize the useful life of the incinerators. Additionally, the incinerators themselves need to undergo significant seismic retrofits to be structurally sound, as they are not designed to withstand a major earthquake. As stated above, several projects have been identified in the current CIB and CIP that are associated with solids handling. In addition to those projects, the CWMP has identified additional solids handling improvements, which include the following: Page 1 of 10 POSITION PAPER Board Meeting Date: December 1, 2016 Subject: AUTHORIZE THE GENERAL MANAGER TO EXECUTE A PROFESSIONAL SERVICES ENGINEERING AGREEMENT WITH BLACK & VEATCH CORPORATION FOR THE SOLIDS HANDLING FACILITIES ALTERNATIVES EVALUATION AND PREDESIGN PROJECT • Possible Lime Reduction • Sludge Blending and Storage Improvements • Incinerator and Solids Conditioning Building Seismic Upgrades The issues to be addressed in the solids process areas are complex and interdependent; decisions made for one process area will have an impact on other processes. Although there are several drivers for the proposed work, including addressing aging infrastructure and reducing plant energy demands, compliance assurance is paramount. For those reasons, District staff assembled a scope that encompasses all these elements associated with the solids handling facilities and the incinerators into a single project, namely the Solids Handling Facilities Alternatives Evaluation and Predesign Project (the Project). This approach will be more efficient and effective in resolving concerns and challenges with the Solids Conditioning Building (SCB) and associated equipment and essential processes dealing with solids handling, processing, air emission control equipment, ash disposal, as well as energy production. Priority ranking for these projects comprising the Project ranges from very high to critical. This Project will address four major drivers outlined in the Comprehensive Wastewater Master Plan: 1) replacing aging infrastructure; 2) capacity limitations; 3) regulatory compliance; and 4) sustainability and energy. Driver 1 - Replacing Aging Infrastructure: The majority of the solids handling facilities are in the SCB, which was built in the 1970's as part of the Phase 5A project, along with the rest of the plant expansion following the enactment of the Clean Water Act in 1972. Some of the equipment is over 40 years old and nearing the end of its useful Life. The Centrifuges and associated cake pumps are roughly 25 years old and in constant need of maintenance, and critical centrifuge components are shipped back and forth to Houston, Texas. The sludge blending tank and emergency tanks are refurbished anaerobic digesters which were constructed in the 1950 to 1960's. These repurposed tanks offer volume to store and blend primary and thickened waste activated sludge but are not the appropriate size. The available volume is too large for daily operation which often creates a septic sludge condition not conducive to dewatering and requiring lime for pH adjustment. The ash handling system also needs improvements to update aging equipment and meet current regulations. Page 2 of 10 POSITION PAPER Board Meeting Date: December 1, 2016 Subject: AUTHORIZE THE GENERAL MANAGER TO EXECUTE A PROFESSIONAL SERVICES ENGINEERING AGREEMENT WITH BLACK & VEATCH CORPORATION FOR THE SOLIDS HANDLING FACILITIES ALTERNATIVES EVALUATION AND PREDESIGN PROJECT The wet scrubber is an older technology which may have contributed to a recent notice of violation (NOV) from the Bay Area Air Quality Management District (BAAQMD), as expanded upon under Driver 3 below. At best, the current system can only marginally meet current air emission requirements. With upcoming pending air regulations, the existing wet scrubber will not be able to meet more stringent emission regulations; therefore, it must be replaced with more effective and energy efficient technology that uses less water and power. Driver 2 - Capacity Limitations: As presented at the June 16, 2016 Board Workshop # 2 on the CWMP, the incinerators have some challenges associated with capacity. Lime is currently being added to the sludge blending tank for multiple reasons (pH adjustment, copper sequestering, and prevention of clinker formation in the incinerators). However, the addition of lime adds volume and uses needed capacity from the incinerators and other processes like the dewatering equipment. The incinerators have a limited set capacity which cannot be exceeded under the Title V permit. This project will research reducing and possibly eliminating lime addition to the solids process. This has a direct impact on O&M cost, centrifuge performances and capacity, and furnace capacity. Driver 3 - Regulatory Compliance: The following regulatory compliance challenges need to be addressed: 1. Determine optimal approach to comply with BAAQMD Draft Air Toxics Regulation 11, Rule 18. The draft rule was released in October 2016, with tentative adoption scheduled for May 2017. The new regulation can potentially require the District to upgrade the existing air pollution control system in the next few years to reduce toxic air contaminant emissions, and to notify the public if the Treatment Plant's cancer risk is greater than 10 in a million, based on the results of a health risk assessment (HRA). 2. Compliance with Existing 129 Sewage Sludge Incinerator (SSI) Regulations: a) Eliminating use of emergency bypass damper of the waste heat boiler. The new 129 Sewage Sludge Incinerator Regulations (129 Regulations) limit the bypass damper operation and require each bypass opening event be reported to BAAQMD. Since the effective date of the 129 Regulations in March 2016, the District has had three reportable compliance activities, one of which resulted in a violation of this new requirement. A new wet scrubber system will help ensure continuous Page 3 of 10 POSITION PAPER Board Meeting Date: December 1, 2016 Subject: AUTHORIZE THE GENERAL MANAGER TO EXECUTE A PROFESSIONAL SERVICES ENGINEERING AGREEMENT WITH BLACK & VEATCH CORPORATION FOR THE SOLIDS HANDLING FACILITIES ALTERNATIVES EVALUATION AND PREDESIGN PROJECT compliance with the existing 129 Regulations and can be designed to treat emissions that would normally bypass the incinerators' waste heat boilers and be released directly into the atmosphere without any treatment. b) Significantly reduce or eliminate daily caustic injection to reduce cost of compliance with hydrogen chloride (HCI) emissions. The existing wet scrubber for Furnace No. 2 is ineffective at treating HCI without caustic addition. The ongoing caustic chemical cost is as much as $400,000 per year. New scrubber equipment is designed to reduce HCI will meet the standard with fewer chemicals. This will reduce O&M expenses, and wilt be more efficient with power and water usage. c) Track incinerator -related improvements to avoid triggering incinerator reclassification. More stringent air pollution emission requirements are triggered by the 129 Regulations when the aggregate cost of improvements on certain incinerator -related improvements reaches 50 -percent of the original incinerator facility construction cost. d) Enhanced limits on visible emissions from ash handling: The ash loading facility is located outdoors. District staff has made recent improvements to limit fugitive visible ash emission during the ash loading process (two truckloads weekly). However, this operation would be more controlled if the loading happened in an enclosed facility where the trucks could drive in. The emergency sludge loading building was constructed to allow for dewatered solids storage and loading in the event the incinerators where out of service. However, it is not used on a routine basis. Modifications could be made to the building to relocate the ash loading inside this facility while keeping the original intent intact. 3. Determine air pollution control sidestream impacts on compliance with the District's National Pollution Discharge Elimination System (NPDES) permit. It is likely that scrubber water sidestream treatment may be required to remove increased metals loads diverted to the liquid stream when a new scrubber with higher metals removal efficiency is installed. One metal of concern is mercury, because the District has an existing total maximum daily load limit for mercury discharge to Suisun Bay. 4. Compliance with the new PM 2.3 Requirements: The new air emission equipment will need to be selected to be flexible for complying with future air Page 4 of 10 POSITION PAPER Board Meeting Date: December 1, 2016 Subject: AUTHORIZE THE GENERAL MANAGER TO EXECUTE A PROFESSIONAL SERVICES ENGINEERING AGREEMENT WITH BLACK & VEATCH CORPORATION FOR THE SOLIDS HANDLING FACILITIES ALTERNATIVES EVALUATION AND PREDESIGN PROJECT emission requirements such as the new PM2.5. BAAQMD was recently declared as non -attainment for PM2.5. Over the next three years, BAAQMD will be examining which existing sources need additional controls to bring the BAAQMD into attainment. The District's existing wet scrubbers were not designed to control PM2.5. 5. Compliance with Building Code Seismic Regulations: The District conducted a seismic report of its facilities in 2009. Several seismic design needs and code deficiencies were identified in this report. Projects needed were outlined and prioritized. Two of the higher priority projects are now either completed (Headquarters Office Building Seismic Upgrades), or in the construction stage (Pump and Blower Building Seismic Upgrades). One of the next critical facilities identified is the SCB, as it does not meet current building code and seismic standards. This building houses both staff and critical equipment necessary for the operation of the Plant (solids handling, dewatering, incinerators, power generation units, steam system, and other ancillary and electrical equipment). The incinerators are not designed to current seismic design standards and must be seismically evaluated if the District plans to use them for at least the next decade, and possibly beyond. These seismic requirements and retrofits will be evaluated and included as part of this project. Driver 4 - Sustai nabi l itv and Energy Optimization: The following operational and energy improvements will be addressed: 1. The sludge blending tank currently uses pump mixing. However, because the tank was originally a digester, the tank geometry and associated pump mixing equipment is not optimized. A smaller tank design using modern and more efficient mixing equipment will reduce O&M costs by reducing chemical addition (lime and polymer) and energy consumption. This will also reduce labor costs associated with operating and maintaining this equipment. 2. The existing solids dewatering process includes progressing cavity pumps (with sludge grinders), four centrifuges and associated cake pumps, piping and controls that feed the two incinerators at two separate locations each, or four separate locations in total. New equipment will reduce O&M costs by reducing the high maintenance currently required by this equipment, but will also reduce polymer and power consumption by an estimated 50% or more. New centrifuges can effectively produce higher cake solids with improved centrate quality (higher solids capture) while using half the connected horsepower to run the equipment. Page 5 of 10 POSITION PAPER Board Meeting Date: December 1, 2016 Subject: AUTHORIZE THE GENERAL MANAGER TO EXECUTE A PROFESSIONAL SERVICES ENGINEERING AGREEMENT WITH BLACK & VEATCH CORPORATION FOR THE SOLIDS HANDLING FACILITIES ALTERNATIVES EVALUATION AND PREDESIGN PROJECT Project Approach As District staff considered the Wet Scrubber, Centrifuge and Cake Pumps, and Ash Handling projects as part of the CWMP, it became apparent that a more comprehensive look at the entire solids process was necessary to properly design replacement or improvements. Therefore, staff has recommended combining the predesign scope of these projects, along with other related CIP projects to determine the optimal approach in proceeding with current and future solids handling projects. The new project will be titled "Solids Handling Facilities Improvements Predesign" and will be included in the current Fiscal Year (FY) 2016-17 CIB. This newly defined project will include the pilot testing of the air emission control equipment (new wet scrubber) to determine the proper selection of the new technology. This pilot test will not only validate the equipment selection and associated design criteria, but will also determine the best technology to optimally treat the liquid steam generated from that process as it removes impurities, and metals from the air stream. This will be a critical design element since the District wishes to avoid creating any inadvertently undue burden on the liquid treatment process, which has its own permit requirements (NPDES). Pilot testing will be a critical component of the evaluation work. Air pollution control (APC) equipment testing wilt be important in determining performance requirements for equipment, establishing expected removal efficiencies, and determining whether or not sidestream treatment is required and confirming the proper sidestream treatment technology. This information will help decide the appropriate equipment and installation timing, such that the District remains in regulatory compliance. The project will include a significant amount of predesign work to ensure the appropriate improvements are made to meet current reliability and regulatory needs, and remain compatible with the Tong -term vision identified in the CWMP. Evaluations will be conducted to establish the design parameters for each solids process and associated equipment. Table 1 below outlines the major project elements to be addressed under this project to achieve compliance assurance: Page 6 of 10 POSITION PAPER Board Meeting Date: December 1, 2016 Subject: AUTHORIZE THE GENERAL MANAGER TO EXECUTE A PROFESSIONAL SERVICES ENGINEERING AGREEMENT WITH BLACK & VEATCH CORPORATION FOR THE SOLIDS HANDLING FACILITIES ALTERNATIVES EVALUATION AND PREDESIGN PROJECT Table 1: Project Elements and Drivers Element Project # Elements Incinerator Air Pollution Control 1 Equipment (including wet scrubber pilot testing) 2 Replace Dewatering System (centrifuges, cake pumps, etc.) Optimize Sludge 3 Blending and Storage Facilities Engineering Evaluation of 4 Health Risk and Alternatives Analysis 5 6 7 8 Lime Reduction Pilot Ash System Upgrades or Relocation Solids Conditioning Building Incinerator Seismic Upgrades Driver(s) 10% Design Driver 3: Regulatory Compliance Yes Driver 1: Replacing Aging Infrastructure, and Driver 4: Sustainability and Energy Optimization Driver 4: Sustainability and Energy Optimization Driver 3: Regulatory Compliance Driver 2: Capacity Limitations, and Driver 4: Sustainability and Energy Optimization Driver 1: Replacing Aging Infrastructure, and Driver 3: Regulatory Compliance Driver 3: Regulatory Compliance, and Driver 4: Sustainability and Energy Optimization Driver 4: Sustainability and Energy Optimization 30% Benefits Design Compliance with Yes Air and Water Regulations Yes Yes Yes Yes Pilot Study Pilot Study No Reliability, replacement of aging equipment, addressing a lack of spare parts availability. Improvement of efficiency and lowered energy cost Reliability, consistent dewatering and reduction of O&M Costs Compliance with Air Regulations Reduction of O&M costs and delaying No incinerator capacity deficiency improvements Compliance with Air Emission Regulations, and replacement of aging equipment Compliance with current Building/Seismic Code. No Improvement for Worker's Safety, and improvement of operational resiliency Compliance with, current Building/Seismic Code. No improvement for Worker's Safety, and improvement of operational resiliency Yes No Yes Yes Page 7 of 10 POSITION PAPER Board Meeting Date: December 1, 2016 Subject: AUTHORIZE THE GENERAL MANAGER TO EXECUTE A PROFESSIONAL SERVICES ENGINEERING AGREEMENT WITH BLACK & VEATCH CORPORATION FOR THE SOLIDS HANDLING FACILITIES ALTERNATIVES EVALUATION AND PREDESIGN PROJECT District staff issued a Request for Proposals (RFP) on September 1, 2016 to the engineering consulting community and received three proposals (Black & Veatch, CH2M, and CDM Smith). Engineering and Operations staff evaluated the proposals and interviewed the consultant teams. Black & Veatch (B&V) had the highest total score and is considered the best overall project fit. The agreement with B&V will include the elements listed in Table 1 which consist of preliminary design (10% complete) for all project elements, pilot testing design and support, cost estimates, and predesign work of key project components to a 30% level of design completion. District staff plans to issue future RFP(s) for final design services and possible construction support services. At this time, staff anticipates the wet scrubber and related air pollution control improvements, centrifuges and cake pumps, and sludge blending work wilt proceed to 30% design and likely move forward to full detailed design. Not all components of the project may be constructed at the same time depending on the outcome and recommendations from the preliminary design efforts. FINANCIAL IMPACTS: The total project cost estimated is shown in Table 2 below: Table 2: Project Cost Estimates Project Elements 1 Incinerator Air Pollution Control Equipment $30 Million FYs 16-18 FY 18-19 FYs 19-21 Pilot Testing of Wet Scrubber, Lime Reduction and Polymer $850,000 FYs 16-18 TBD TBD Optimization 2 Replace Dewatering System $12.4 Million FY 18-19 (centrifuges, cake pumps, etc.) FYs 16-18 FYs 19-21 3 Optimize Sludge Blending and $2.9 Million Storage FacilitiesFYs 16-18 FY 18-19 FYs 19-21 4 Health Risk Assessment (HRA) Modeling $200,000 FY 16-17 TBD TBD Proposed Implementation Schedule Total Project Cost Preliminary Final Design Construction Estimate (1 Design 9 5 Lime Reduction to reduce loadings to furnace (Monitor Heavy Metals — Copper, Selenium in Centrate and Final Effluent) 6 Ash System Upgrades or Relocation 7 Solids Conditioning Building Seismic Upgrades 8 Incinerator Seismic Upgrades $150,000 $2.0 Million $13.5 Million $5.0 Million FY 16-17 TBD TBD FY 16-17 FY 18-19** FYs 20-23** FY 16-17 FY 18-19** FYs 20-23** FY 16-17 FY 18-19** FYs 20-23** Total Estimated Project Cost $67.1 Million (*1 Project Cost Estimate in 2016 $ from the CWMP Draft CIP -- November 10, 2016 (**} To be confirmed based on preliminary design recommendations Page 8 of 10 POSITION PAPER Board Meeting Date: December 1, 2016 Subject: AUTHORIZE THE GENERAL MANAGER TO EXECUTE A PROFESSIONAL SERVICES ENGINEERING AGREEMENT WITH BLACK & VEATCH CORPORATION FOR THE SOLIDS HANDLING FACILITIES ALTERNATIVES EVALUATION AND PREDESIGN PROJECT The B&V agreement costs are estimated to total up to $2,000,000, which is about 3% of the estimated total project costs. The projects funding for this predesign effort are included in the FY 2016-17 District Budget, with the following budgets: Table 3: Project Funding Sources DP No 7286 7312 7348 7315 Project Name Centrifuge and Cake Pumps Upgrades Ash Facility Improvements Wet Scrubber Replacement Applied Research and Innovations CIB Contingency Totals: FY 2016-17 Budget $500,000 $800,000 $400,000 $150,000 $150,000 $2,000,000 Page 120 128 143 130 (*) As of October 30, 2016, $ remain in the FY 16-17 contingency before applying the requested amount to this project. The budgets listed above in Table 3 will be transferred from existing District projects to fund the consolidated new Solids Handling Facilities Alternatives Evaluation and Predesign Project. The total project spending this fiscal year is expected to reach $1,700,000, which includes consultant fees, pilot costs, and District staff time. The remaining $300,000 is forecasted to be paid under the following fiscal year budget as this project will straddle two fiscal years. This agreement will help develop a more detailed predesign estimate for future construction costs to be included in the District budget. ALTERNATIVES/CONSIDERATIONS: An alternative would be not to proceed with the agreement, which is not recommended because the action would delay staff's ability to implement the projects intended to meet existing and upcoming new regulatory requirements. STRATEGIC PLAN: The Project aligns with the following District Strategic Plan goals: • Goal 2 — "Strive to Meet Regulatory Requirements" • Goal 3 — "Be a Fiscally Sound and Effective Water Sector Utility" • Goal 5 "Maintain a Reliable Infrastructure" • Goal 6 — "Embrace Technology, Innovation, and Environmental Sustainability" COMMITTEE RECOMMENDATION: The Engineering and Operations Committee reviewed this project at the meeting on November 16, 2016, and recommended approval of this project and agreement. Page 9 of 10 POSITION PAPER Board Meeting Date: December 1, 2016 Subject: AUTHORIZE THE GENERAL MANAGER TO EXECUTE A PROFESSIONAL SERVICES ENGINEERING AGREEMENT WITH BLACK & VEATCH CORPORATION FOR THE SOLIDS HANDLING FACILITIES ALTERNATIVES EVALUATION AND PREDESIGN PROJECT RECOMMENDED BOARD ACTION: 1. Authorize the General Manager to execute a Professional Engineering Services Agreement with Black & Veatch Corporation up to $2,000,000 for the Solids Handling Facilities Alternatives Evaluation and Predesign Project. 2. Authorize the General Manager to transfer up to $2,000,000 in the Capital Improvement Budget (GIB) from existing District Projects being consolidated to form the Project. Page 10 of 10