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HomeMy WebLinkAbout06.c. Adopt resolution re sole-source contract with EnviroCare and multiple specialty vendors and contractors for pilot studies and contracts associated with Solids Handling Facilities Improvements Project and authorize transfer of funds from contingencyCentral San BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: December 15, 2016 Subject: ADOPT A RESOLUTION MAKING FINDINGS AND AUTHORIZING THE GENERAL MANAGER TO EXECUTE CONTRACTS WITH MULTIPLE SPECIALTY VENDORS AND CONTRACTORS FOR PILOT WORK SUPPORTING THE SOLIDS HANDLING FACILITIES IMPROVEMENTS PROJECT, DISTRICT PROJECT 7348 Submitted By: Nitin Goel Associate Engineer Initiating Dept./Div,: Engineering & Technical Services/ Planning & Development Services Division REVIEWED AND RECOMMENDED FOR BOARD ACTION: C. Mizutani - Senior Engineer R. Schmidt - Senior Engineer D. Frost - Senior Engineer D. Gemmell - Planning & Development Division Services Mgr. E. Lopez - Capital Projects Division Manager JM. Petit - Director of Engineering & Technical Services K fon L. Alm Counsel for the District Roger S. Bailey General Manager ISSUE: Board of Directors' (Board) approval is required to enter into sole -source contracts for pilot projects exceeding $100,000. BACKGROUND: At the December 1, 2016 Board Meeting, Central Contra Costa Sanitary District (Central San) staff presented a detailed explanation of the drivers and elements associated with the Solids Handling Facilities Improvements Project (Project) that will be initiated in the current Fiscal Year (FY) 2016-17 Capital Improvements Budget (CIB). This Project includes two pilot studies: • Wet Scrubber Pilot • Lime Reduction Pilot The cost of these studies were outlined in Attachment 2 — Project Cost Estimate (page 11 of 12) of the position paper for the Project as presented at the December 1, 2016 Board Meeting under Project elements 1 and 5. Central San is planning to replace the existing wet scrubbers with new scrubber technology to meet current and future regulations and reduce energy needs. A wet scrubber pilot is recommended in order to validate the technology and ensure it will meet regulations for Central San's incinerators, establish pollutant criteria, and assess impacts on final effluent quality. Concerns and Issues Addressed by the Proposed Pilot Studies: 1. The pilot studies will allow staff to determine the optimal approach for complying with the Bay Area Air Quality Management District (BAAQMD) draft Air Toxics Regulation 11, Rule 18: Reduction of Risk from Air Toxic Emissions at Existing Facilities, which Page 1 of 7 6.c. POSITION PAPER Board Meeting Date: December 15, 2016 Subject: ADOPT A RESOLUTION MAKING FINDINGS AND AUTHORIZING THE GENERAL MANAGER TO EXECUTE CONTRACTS WITH MULTIPLE SPECIALTY VENDORS AND CONTRACTORS FOR PILOT WORK SUPPORTING THE SOLIDS HANDLING FACILITIES IMPROVEMENTS PROJECT, DISTRICT PROJECT 7348 is expected to be adopted in May 2017, and is expected to impact current processes. 2. The pilot results are critical for the Project predesign reports that are scheduled for completion by October 2017. 3. Central San may be required to implement state -of -the art air pollution control technologies (e.g., the proposed wet scrubber) to address the Treatment Plant's potential health risks caused by toxic air contaminants. 4. The results of the pilot studies will provide information to help determine how to reliably comply with new 129 Sewage Sludge Incinerator Regulations, as discussed at the December 1, 2016 Board Meeting. Main Obiectives of the Proposed Pilot Studies: 1. Wet Scrubber Pilot: a. Air Emissions: Confirm and select which air pollution control technologies are required to reliably meet air regulations. The pilot will help establish design criteria for a full-scale system that will be used by Central San's consultant during final design and will confirm the feasibility of using the wet scrubber technology with the existing incinerators. The current Project plans on pilot testing with one incinerator. Depending on the results of the wet scrubber pilot, additional pilot testing may be recommended on the second incinerator, which is currently not included in the Project budget. b. Liquid Constituents: Characterize constituents in the wet scrubber water; determine whether scrubber water treatment will be required to reduce risks of potential violations of Central San's National Pollutant Discharge Elimination System (NPDES) effluent permit, and help establish design criteria for a potential full-scale scrubber water treatment system. Depending on the results of the scrubber water characterization, additional bench and/or full-scale pilot testing of a scrubber water treatment system may be needed, which is currently not included in the Project budget. Page 2 of 7 POSITION PAPER Board Meeting Date: December 15, 2016 Subject: ADOPT A RESOLUTION MAKING FINDINGS AND AUTHORIZING THE GENERAL MANAGER TO EXECUTE CONTRACTS WITH MULTIPLE SPECIALTY VENDORS AND CONTRACTORS FOR PILOT WORK SUPPORTING THE SOLIDS HANDLING FACILITIES IMPROVEMENTS PROJECT, DISTRICT PROJECT 7348 2. Lime Reduction Pilot Testing: a. Lime Usage: Reduce or eliminate lime usage in the sludge blending process to increase incinerator solids loading capacity and extend the operating life of the incinerators. Bench and full-scale pilot testing are important because of the complex interactions lime has on the liquid process, air emissions, and operational impacts. Lime elimination would provide significant operational and maintenance cost savings (over $380,000 per year) and reduce costs associated with maintaining the process equipment (pumps, valves, and centrifuges) that handle product containing lime. These costs are very high, due to the abrasive nature of that chemical. Maintenance staff spends many hours maintaining, cleaning, and replacing parts that prematurely fail due to lime handling. Pilot Schedules: • Wet Scrubber Pilot: Installation is expected by May 2017. Testing will be performed from June to August 2017. • Lime Reduction Pilot Testing: Bench -scale pilot testing is scheduled to begin by March 2017 and will take approximately four weeks. Full-scale lime reduction pilot testing will take about another four weeks and will be coordinated with the wet scrubber pilot. As stated earlier, results from the pilot tests will be used to finalize the Project predesign reports that are expected to be completed by October 2017. Piloting Services Required: Central San's sewage incinerators are rare in the western United States, with only one other similar permitted installation in California, and these incinerators require services by contractors and technicians with specialized experience and knowledge related to incinerators and air pollution control equipment. The following services and contracts are required to successfully execute the pilots and maintain the Project schedule, and it is recommended that these services be procured either under a sole -source or best interest authorization: 1. Services from EnviroCare International (EnviroCare) to design, supply, and assist in the setup, startup, and operation of the wet scrubber equipment. Page 3 of 7 POSITION PAPER Board Meeting Date: December 15, 2016 Subject: ADOPT A RESOLUTION MAKING FINDINGS AND AUTHORIZING THE GENERAL MANAGER TO EXECUTE CONTRACTS WITH MULTIPLE SPECIALTY VENDORS AND CONTRACTORS FOR PILOT WORK SUPPORTING THE SOLIDS HANDLING FACILITIES IMPROVEMENTS PROJECT, DISTRICT PROJECT 7348 Sole -Source Justification: Central San staff contacted several vendors and consultants (including Black and Veatch) and concluded that EnviroCare, a leader in the wet scrubber technology field, is the only known provider of a wet scrubber pilot system (multiple -stage venturi type) to be built and used for pilot purposes. The multi -stage venture type system is needed for the application and is the only known available and appropriate technology for piloting. The EnviroCare pilot includes a three -stage VenturiPak scrubber, followed by a wet electrostatic precipitator (WESP) and mercury modules. The wet scrubber removes larger particulate matter, the WESP removes finer particulate matter, and the mercury modules help remove additional elemental and oxidized mercury, if needed. 2. Central San will use the services from multiple specialty vendors and contractors to purchase and install incinerator sample ports, isolation valves, and a heat -resistant duct to connect the existing incinerators to the wet scrubber pilot system. Electrical connections, instrumentation, controls, anchorage and other appurtenances will also be required. Staff will solicit multiple quotes, if possible, to obtain the best value for these tasks. Best Interest Justification: Installation of the pilot system is specialty work and needs to be performed by qualified contractors with experience in this area. There are very few nearby contractors and vendors that can provide the services required for the pilot installation, due to the many reasons stated above. Therefore, staff recommends performing a qualification -based selection process in lieu of a low -bid process, and will develop selection criteria as part of that process, including price, experience, references, etc. The scope and selection criteria will be made available to all interested vendors. 3. Testing services for liquid and air sampling, including laboratory analysis, for both the wet scrubber and lime reduction testing. Sampling and laboratory analysis are required to measure emissions concentrations before and during the pilot tests to calculate removal efficiencies. Central San staff plans to solicit multiple proposals to select a qualified firm and receive competitive prices. An agreement will be presented to the Board at a future date once the selection process has been completed. Page 4 of 7 POSITION PAPER Board Meeting Date: December 15, 2016 Subject: ADOPT A RESOLUTION MAKING FINDINGS AND AUTHORIZING THE GENERAL MANAGER TO EXECUTE CONTRACTS WITH MULTIPLE SPECIALTY VENDORS AND CONTRACTORS FOR PILOT WORK SUPPORTING THE SOLIDS HANDLING FACILITIES IMPROVEMENTS PROJECT, DISTRICT PROJECT 7348 CEQA: Staff has concluded that these pilot studies and contracts are exempt from the California Environmental Quality Act (CEQA) under Section 15262 of the CEQA Guidelines adopted by Central San under Resolution No. 2001-89, since they allow for further planning and feasibility studies for possible future actions which Central San has not approved, adopted, or funded, and the outcome of these tasks will not have a legally binding effect on later activities. Central San will conduct an environmental evaluation of any capital project that is proposed in the future as a result of the tasks authorized herein to determine the need for any additional CEQA documentation. ALTERNATIVES/CONSIDERATIONS: An alternative would be to not proceed with the pilots, which is not recommended because it would not provide site-specific data for the design of the new wet scrubber. This could result in a more conservative design and/or inclusion of additional level of treatment that may not be necessary for the Project. Another alternative would be to scale back the pilots, which may also result in Tess accurate information for a site-specific design intended to meet existing and future regulatory requirements. FINANCIAL IMPACTS: The total estimated cost for the pilot work is $1,000,000, which includes $850,000 for the Wet Scrubber Pilot and $150,000 for the Lime Reduction Pilot testing and other related piloting work as described in the Project as presented at the December 1, 2016 Board Meeting. The pilot testing will span two fiscal years and require $450,000 this fiscal year. The remaining $550,000 will be proposed in next year's CIB. The pilot testing described above will be funded by the CIB contingency account, which has $460,000 remaining. Approval of the pilot studies as recommended in this position paper will leave a $10,000 contingency balance in the CIB in the current fiscal year. COMMITTEE RECOMMENDATION: The Engineering and Operations Committee reviewed this subject at its meeting on December 6, 2016 and recommended approval of the pilots and adoption of the attached resolution. Page 5 of 7 POSITION PAPER Board Meeting Date: December 15, 2016 Subject: ADOPT A RESOLUTION MAKING FINDINGS AND AUTHORIZING THE GENERAL MANAGER TO EXECUTE CONTRACTS WITH MULTIPLE SPECIALTY VENDORS AND CONTRACTORS FOR PILOT WORK SUPPORTING THE SOLIDS HANDLING FACILITIES IMPROVEMENTS PROJECT, DISTRICT PROJECT 7348 RECOMMENDED BOARD ACTION: Adopt a resolution making the following findings and authorizing the following action in connection with the Solids Handling Facilities Improvements Project: 1. Find that: a. The public interest is best served by the following: 1) Piloting the sole -source EnviroCare wet scrubber system; and 2) Entering into contracts with specialty vendors and contractors to connect and install the pilot systems; and b. The pilot studies and contracts are exempt from CEQA. 2. Authorize the General Manager to execute contracts with EnviroCare and multiple specialty vendors and contractors to construct the Wet Scrubber Pilot and Lime Reduction Pilot in an amount not to exceed $400,000. 3. Authorize the General Manager to transfer $450,000 from the CIB contingency to fund this Project. Attached Supporting Documents: 1. Solids Handling Facilities Improvement Project, District Project 7348, Cost Estimate for Pilot and Predesign 2. Proposed Resolution Page 6 of 7 POSITION PAPER Board Meeting Date: December 15, 2016 Subject: ADOPT A RESOLUTION MAKING FINDINGS AND AUTHORIZING THE GENERAL MANAGER TO EXECUTE CONTRACTS WITH MULTIPLE SPECIALTY VENDORS AND CONTRACTORS FOR PILOT WORK SUPPORTING THE SOLIDS HANDLING FACILITIES IMPROVEMENTS PROJECT, DISTRICT PROJECT 7348 ATTACHMENT 1 SOLIDS HANDLING FACILITIES IMPROVEMENT PROJECT DISTRICT PROJECT 7348 COST ESTIMATE FOR PILOT AND PREDESIGN Item Description 1. Predesign A. Consultant (B&V) Contract B. District Forces for Predesign Subtotal Amounts Total Estimated FY16-17 CIB FY 17-18 CIB Future CIB/CIP Project Cost $ 2,000,000 $ 1,750,000 $ 250,000 $ $ 275,000 $ 250,000 $ 25,000 $ $ 2,275,000 $ 2,000,000 $ 275,000 $ 2. Pilot Testing A. Pilot Testing (Equipment and installation) $ B. District Forces for Pilots $ Subtotal' $ 13. Future Design/Construction Costs 1 Total Estimated Project Cost 900,000 $ 400,000 $ 500,000 $ 100,000 $ 50,000 $ 50,000 $ 1,000,000 $ 450,000 $ 550,000 $ $ 63,725,000 $ $ 1,800,000 $ 61,925,000 $ 67,000,000 $ 2,450,000 $ 2,625,000 $ 61,925,000 Page 7 of 7 ATTACHMENT 1 RESOLUTION NO. 2016- Oq'I A RESOLUTION OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT AUTHORIZING THE GENERAL MANAGER TO EXECUTE CONTRACTS WITH MULTIPLE SPECIALTY VENDORS AND CONTRACTORS FOR PILOT WORK SUPPORTING THE SOLIDS HANDLING FACILITIES IMPROVEMENTS PROJECT WHEREAS, the Central Contra Costa Sanitary District's (Central San) Purchasing Procedures Manual Section 4.8.1.1 provides that expenditures for the purchase of a particular material or service which has been designated by the Board of Directors or the General Manager as a purchase for experimental purposes or for trial use of the specific product do not require application of competitive pricing procedures, a governmental entity may specify such equipment as an appropriate sole source; and WHEREAS, Section 3400(c) of the California Public Contract Code sets forth certain conditions under which a particular material or product or service may be purchased without the necessity of competitive bidding; including "obtaining a necessary item that is only available from one source;" and WHEREAS, very specific proprietary wet scrubber equipment is required to pilot test how effective that type of equipment will be to meet new regulations for air emissions on Central San's sewage incinerators, and the only known supplier of an appropriate pilot scale multiple -stage venturi type wet scrubber is EnviroCare; and WHEREAS, the multiple hearth sewage sludge incinerators used by Central San are rare in the western United States, with only one other unit in California, and these furnaces require service by contractors and technicians with specialized experience and expertise relating to similar furnace type apparatus; and WHEREAS, the continued use and proper environmental operation of Central San's furnaces is necessary to properly operate Central San's treatment plant for the foreseeable future. NOW, THEREFORE, BE IT RESOLVED by the Central San Board of Directors as follows: THAT the Board hereby adopts the recitals set forth above as the basis of its findings regarding two pilot projects in conjunction with the Solids Handling Facilities Improvements Project: (1) Wet Scrubber Pilot and (2) Lime Reduction Pilot Testing; and THAT the Board finds the public interest is best served by piloting an EnviroCare International wet scrubber system which may only be obtained from a single source; and Central Contra Costa Sanitary District Resolution 2016- a97 Page 2 of 2 THAT the Board finds the public interest is best served by entering into contracts with specialty vendors and contractors with appropriate experience in dealing with equipment similar to Central San's furnaces for the installation of the equipment and appurtenances required to implement the wet scrubber pilot test; and THAT the Board independently finds these pilot studies and contracts are exempt from the California Environmental Quality Act (CEQA) under Section 15262 of the CEQA Guidelines adopted by Central San under Resolution No. 2001-89, since they allow for further planning and feasibility studies for possible future actions which Central San has not approved, adopted, or funded, and the outcome of these tasks will not have a legally binding effect on later activities; and THAT the Board authorizes the General Manager to execute contracts with multiple specialty vendors and contractors to conduct the Wet Scrubber and Lime Reduction Pilots supporting the Solids Handling Facilities Improvements Project. PASSED AND ADOPTED this 15th day of December, 2016, by the Board of Directors of Central San by the following vote: AYES: Members: NOES: Members: ABSENT: Members: Tad J. Pilecki President of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California COUNTERSIGNED: Elaine R. Boehme, CMC Secretary of the District Central Contra Cbsta Sanitary District County of Contra Costa, State of California Approved as to form: Kenton L. Alm, Esq. Counsel for the District