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HomeMy WebLinkAbout03.d. Review draft Position Paper to authorize the General Manager to include final design services in the existing professional engineering services agreement with Black and Veatch Corporation for the Solids Handling Facility Improvements - Ph1, DP 7348Item 3.d. CENTRAL SAN BOARD OF DI RECTORS POSIT ION PA PER DRAFT M E E T ING D AT E:MA R C H 13, 2018 S UB J E C T: R E V I E W D R A F T P O S I T I O N PA P E R TO A UT HO R I Z E T HE G E NE R A L MA NA G E R TO I NC L UD E F I NA L D E S I G N S E RV I C E S I N T HE E X I S T I NG P R O F E S S I O NA L E NG I NE E R I NG S E RV I C E S A G R E E ME NT W I T H B L A C K & V E AT C H C O R P O R AT I O N F O R T HE S O L I D S HA ND L I NG FA C I L I T Y I MP R O V E ME NT S - P HA S E 1, D I S T R I C T P R O J E C T 7348, AT A N A D D I T I O NA L C O S T NO T TO E X C E E D $5.9 MI L L I O N S UB M I T T E D B Y: NAT HA N HO D G E S , A S S O C I AT E E NG I NE E R I NI T I AT I NG D E PART M E NT: E NG I NE E R I NG A ND T E C HNI C A L S E RV I C E S- C A P I TA L P R O J E C T S RE V IE WE D B Y:C R A I G MI Z UTA NI , S E NI O R E NG I NE E R E D G A R J . L O P E Z , C A P I TA L P R O J E C T S D I V I S I O N MA NA G E R J E A N-MA R C P E T I T, D I R E C TO R O F E NG I NE E R I NG A ND T E C HNI C A L S E RV I C E S IS S UE Board of Directors' (Board) authorization is required f or the General Manager to execute an amendment to a prof essional engineering services agreement for amounts greater than 15-percent of the original agreement amount. B AC K G RO UND On December 1, 2016, the Board authorized the General Manager to execute an agreement with Black & Veatch Corporation (B&V) for the predesign of the Solids Handling Facility Improvements – Phase 1, District Project 7348 (Solids Ph. 1) at a cost of $2.0 million. At that time, there were six individual solids process projects in the Capital Improvement Budget (CIB). Due to the inter-dependency of each project element, it became apparent that these efforts should be combined into a single project. Decisions made regarding one process would affect the other processes. T herefore, these projects were combined to create the Solids Ph. 1 project. Additionally, the Comprehensive Wastewater Master Plan (C WM P) identified several needs such as piloting wet scrubber and air pollution control equipment, aging infrastructure, and future regulatory requirements. B&V was hired to take a comprehensive look at Central San’s solids facilities and develop a recommended design approach for the Solids Ph. 1 to address capacity, reliability, and future regulatory requirements related to each system for the next 20 plus years. March 13, 2018 EOPS Regular Committee Meeting Agenda Packet - Page 34 of 87 Page 1 of 50 T he Solids Ph. 1 predesign consisted of numerous field investigations, workshops, meetings (with Operations, Maintenance, Planning, and Capital Projects staff), facility tours, piloting, testing, 3-D scanning, and other important efforts to comprehensively evaluate and recommend improvements. Six (6) technical memorandas (T M) were produced that recommend improvements to the T M 1: Sludge Blending, T M 2: Sludge Dewatering, T M 3: Multiple Hearth Furnaces (M H F), T M 4: Seismic Improvements, T M 5: Air Pollution Control, and T M 6: Ash Handling and Emergency Sludge Loadout Improvements. A seventh technical memorandum (Executive Summary) was produced to summarize all the recommendations and address global issues, such as impact on the Federal Requirement Plan for Sewage Sludge Incinerators - Maximum Achievable Control Technology (SS I MACT ) 50-percent Cost T hreshold, project delivery options, and construction sequencing. Electrical, instrumentation and controls requirements associated with all the improvements were also included as part of the T Ms. T hese technical memorandas form the basis for the Solids Ph. 1 final design scope of work. T he following is a summary of the predesign work and the recommended improvements for final design. 1. Sludge Ble nding and Storage T he existing sludge blending, and storage system includes the Sludge Blending Tank (S BT ), Emergency Sludge Storage Tank (E SS T ), and a combination of pumped and mechanical mixing. T he pumped mixing includes several 75 H P pumps used for mixing. T he S BT was built in 1967 and structurally reinforced in 2015. T hese tanks were originally constructed as digesters but later converted to their current usage as sludge storage tanks. T he S BT and E SS T are oversized for day-to-day needs and the mixing system is inadequate and inefficient. T hese inadequacies result in reduced dewaterability under average and peak loading conditions. Sludge blending and storage will be improved by installing new, appropriately sized blending tanks to meet the normal daily operational needs. Additionally, the existing SB T will be converted for use as an emergency tank and storage during M H F service rotations. T he new blending systems will use smaller 7.5 HP pumps for the new S BT and 50 H P pumps for the E SS T, which will result in significant energy savings. 2. Sludge Dewatering T he sludge dewatering consists of four (4) centrifuges and four (4) cake pumps that have been in operation since 1988 for the centrifuges and 1991 for the cake pumps. T his equipment is at the end of its useful life with increasing maintenance costs, as demonstrated by the high number of corrective work orders being generated by our C M M S. Certain centrifuge parts are obsolete and cannot be obtained from the manufacturer or distributors. New dewatering equipment, combined with improved sludge blending, will provide a consistent dewatered sludge feed to the M H Fs. Modern Centrifuges are significantly more energy efficient compared to the existing units and can produce a higher cake with less chemical addition, less energy and a better quality centrate. Energy savings is also anticipated from reduced auxiliary fuel usage in the M H Fs due to the higher solids content in the sludge. 3. Multiple Hearth Furnace s As determined by field investigation and condition assessment conducted during the CWMP, the existing M H Fs are in overall good condition. Only one M H F is operated at a time, which allows maintenance staff the ability to routinely inspect and perform repairs as needed on an annual basis. Central San’s past and current maintenance practices are a key reason why the MHFs continue to perform reliably and are expected to continue service life for the next 20 or more years. One of the most significant findings under the Solids Ph. 1 predesign was the confirmation that the M H Fs were not capacity constrained, and that the MHFs have sufficient capacity up to and beyond the 20-year planning period. T his conclusion was achieved by actual field-testing performed by staff and verified by B&V. T he CWMP indicated that the M H Fs would not have enough capacity for the 20-year planning period. T his resulted in the CWMP recommendation to include two Anaerobic Digesters within the next decade to address March 13, 2018 EOPS Regular Committee Meeting Agenda Packet - Page 35 of 87 Page 2 of 50 the lack of solids capacity and for energy resource recovery. Due to work under the Solids Ph. 1 predesign, the addition of Anaerobic Digesters has been moved to the end of the 20-year planning period. Two major M H F improvements were recommended as follows: · Burner Upgrades - T he existing afterburners are significantly oversized and are rarely used. Installation of appropriately sized afterburners will permit their use for air pollution control and improve regulatory compliance. Replacement of hearth burners will also improve M H F control. Both after- and hearth-burners replacement will include new controls, flame supervision, and associated safety improvements. Energy savings are anticipated. · Center Shaft Drives - With the recent failure of the hydraulic drive on M H F 1, staff installed an electric drive with variable frequency drives (VF D). Also, some critical parts from the hydraulic drive are no longer available. A new electric drive will be installed on MHF 2. T he new center shaft drive systems will provide reliable control of shaft speed. T his upgrade was also noted on staff’s tour of other facilities with similar MHF and pollution control equipment. MHFs of our vintage were converted to electric drives with the failure of hydraulic drive systems and the improved control and lower maintenance costs. 4. Seismic Improv ements In 2009, a seismic evaluation was performed on the Solids Conditioning Building (S C B). Soon after that time, the S C B seismic improvements were prioritized behind the Headquarters Office Building (HO B) and the Pump and Blower Building (P BB) seismic improvements. T he SCB seismic evaluation is based on the same criteria as the recent H OB and PB B Seismic Upgrade projects. To achieve the same design level, the SCB seismic upgrade includes column and beam strengthening, infill of an open bay, and installation of a combination of steel braces and concrete shear walls. Staff is recommending the seismic improvements in coordination with the Solids Ph. 1 project since this work will impact many of the systems discussed by coordinating equipment placement, electrical, wall penetrations, clearances, and overall construction sequencing. T he MHFs are especially vulnerable to a seismic event. T he MHFs are comprised of a thin, outer steel shell, supporting brick walls (unreinforced masonry refractory), and cast-iron center shaft. Extensive analysis was conducted during the predesign and determined that base isolators were the best retrofit feasible (technically and economically) approach for Central San. T hese improvements will isolate the MHFs from the solids building structure allowing the M H Fs to move independent of the building. 5. Wet Scrubbe r and Air Pollution Control T he regulatory issues facing the existing wet scrubber equipment include the inability to treat bypass emissions, difficulties handling a wider range of operational conditions, and consistent compliance with the Clean Air Act Section 129 (Section 129) hydrogen chloride (HCl) emissions limit, the proposed amendments to Bay Area Air Quality Management District (BAAQ M D) Rule 6-1 for more stringent particulate matter limits, and BAAQ M D Rule 11-18 for reduction of risk from air toxic emissions. Staff and B&V recently completed an extensive pilot test of one possible air pollution control equipment (Envirocare Wet Scrubber) to accurately estimate performance against current and potential future air emission limits. T he pilot testing also allowed for measurement of the liquid waste stream to determine if additional treatment would be required. T he results of pilot testing will be used to select the appropriate equipment and estimate the project costs associated with air pollution control during final design. T he piloting confirmed that installation of a multi-Venturi wet scrubber would be sufficient to comply with Section 129 limits for existing MHFs, Title V permit, and proposed limit for particulate matter (Rule 6-1). Compliance was demonstrated during the pilot for both normal operation and bypass conditions. Our current system does not allow scrubbing of bypass conditions. Pilot testing also demonstrated that additional or future air pollution control equipment such as a Wet Electrostatic Precipitator or mercury modules are not expected to be required at this time. T he results March 13, 2018 EOPS Regular Committee Meeting Agenda Packet - Page 36 of 87 Page 3 of 50 of the pilot work are estimated to save $13 million in equipment/infrastructure improvements, almost $100,000 annual savings in operations and maintenance (O&M) costs for systems that may have been recommended without the pilot. T he installation of a new wet scrubber is expected to ensure compliance with existing Section 129 and Title V emission limits for existing M H Fs. Compliance is also expected with respect to particulate matter and health risk threshold limits (along with furnace burner improvements). Particulate matter limits have been proposed by B AAQMD and new wet scrubbers are expected to comply with those limits. Health risk assessment limits are still under development, and staff continues to monitor anticipated regulations and assess impacts for compliance. T he new wet scrubber will also be designed to treating the bypass emissions, which will educe the frequency of reportable compliance activity (R C A) due to bypass events which have been experienced lately. Additional air pollution control technology was evaluated against existing MHF emission limits, new MHF emission limits, and the more stringent emission limits associated with new fluidized bed incinerators (FB I). Equipment was recommended in the event Central San must comply with enhanced air emission limits. Building floor space will be reserved for any future pollution control equipment that may be required. B&V and staff's understanding of current and near-term future regulations is that the installation of a new Venturi wet scrubber and furnace improvements is recommended for reliability and regulatory compliance. 6. Ash Handling Facility T he existing ash system, while well maintained, has many components nearing the end of its useful life and will need major renovation within the next five years. T his system has experienced difficulties in containing ash within the SCB and outside the building. T here are also new air emission regulatory drivers such as Section 129 to control visible fugitive ash emissions. A new wet ash system is recommended to replace the existing, dry ash system. Wet ash systems require less equipment and have lower overall O&M costs. However, a wet ash system will require some operational changes such as the use of lagoons or a filter system to dewater the ash. A wet ash pilot is recommended to confirm it will function appropriately and will be compatible with our current ash disposal requirements prior to final design. 7. Eme rgency Sludge Loadout Facility T he Emergency Sludge Loadout Facility has deficiencies that prevent it from meeting its performance objectives. All three silos are connected to the cross conveyor and gates are only located beneath the conveyor at each of the three discharge chutes. T he existing discharge slide gates are also difficult to control. Improvements include adding silo isolation gates, improving the discharge gates for better modulation of sludge flow, and improving drainage. Odor control improvements may also be recommended, until field verified and tested by staff prior to start of final design. 8. Othe r Project Considerations Several project considerations were evaluated by B&V due to their impact to the Solids Ph. 1 project as follows: · Electrical and Instrumentation Coordination and Replacement - T he existing electrical and instrumentation systems associated with the Solids Ph. 1 have been in service for over 40 years. Replacement of these systems will be required when new equipment and systems are installed. T he existing control and electrical room equipment should be replaced to meet current electrical code and to allow installation of the new equipment while keeping existing facilities operational and online. B&V will integrate the location of the new electrical and control facilities with the mechanical, structural, and seismic work in the SCB. · S SI MACT 50-Percent Cost T hreshold - One of the most important considerations was the SS I M AC T 50-percent Cost T hreshold. Section 129 mandates that should improvements to an existing March 13, 2018 EOPS Regular Committee Meeting Agenda Packet - Page 37 of 87 Page 4 of 50 incinerator exceed 50-percent of the original cost of installation (in present dollars) the incinerator would be subject to enhanced emission limits. If the cost threshold were exceeded, the MHFs might not be permitted to operate, or would need additional enhanced air pollution control equipment to be installed in order to comply with enhanced emission limits. B&V updated the M H F original installation cost to 2017 dollars. After deducting previous non-exempt modifications, there is $34.6 million remaining before the 50-percent threshold is exceeded. T he recommended improvements that would apply against the 50-percent threshold are the cake pumps, furnace improvements (burner replacement, combustion air blower, and burner controls), and ash handling. New afterburners may or may not be exempt. T he afterburners would be for air emission control, and that use is specifically exempt from the 50-percent threshold. If the afterburners are exempt costs, Central San has approximately $10.2 million remaining in modifications before exceeding the 50-percent threshold. Because of the comprehensive approach of this project, with the intent to provide reliable solids handling for the next 20 years, there are no additional major furnace modifications planned once this project is completed. Potential future work that may count against the available modification dollar threshold are hearth replacements, and these costs are well within the $10.2 million range. T he most likely future furnace related improvements would be installation of additional air emissions control equipment. However, this equipment is specifically exempt from the 50- percent cost threshold. · Project Delivery - Delivery options were evaluated. A traditional design-bid-build approach was selected as the most favorable project delivery method. Pre-procurement or the centrifuges, cake pumps, and wet scrubbers was evaluated and recommended for the Solids Ph. 1 project. T here are substantial differences in design and configuration between potential suppliers of this equipment that selecting the equipment manufacturer during design would greatly simplify the required work and reduce potential construction complications. T his will have design savings and reduce the risk of construction change orders and other contractual issues that may arise. Staff and B&V have already started the pre-procurement process. Equipment suppliers are being contacted to obtain product and performance data. Staff, B&V, and Central San's legal counsel have also started to develop the documents for equipment qualifications, selection process, and terms and conditions. T he total estimated pre-purchase costs of this equipment is $5.1 million. · Project Sequencing - A project of this magnitude will greatly impact plant operations. B&V has considered the time required to construct the various project elements. With one MHF off-line at a time, equipment can be installed, and improvements made near the off-line MHF, with minor risk to solids treatment. Certainly, not all risk will be eliminated. B&V and staff are developing sequence specifications that will help minimize operational risk while producing a project that can be ultimately constructed effectively. B&V will undergo a constructability review of the Solids Ph. 1 project and staff will also seek input from a third-party P EE R review during the final design process. · Health Risk Assessment - B AAQMD issued a draft air toxics regulation, Regulation 11, Rule 18 (Rule 11-18) in late 2016. T his rule will require facilities found to pose a significant health risk to reduce the impacts and control toxic air emissions. B&V’s predesign scope of work included support for Central San’s internal assessment of what impacts compliance with Rule 11-18 would have on treatment processes. A preliminary health risk assessment completed by B&V showed Central San will be required to mitigate health risks from toxic air contaminants in order to comply with Rule 11-18. In late 2017, Rule 18 was adopted. B&V is currently updating the baseline health risk assessment using recently completed air emissions testing data that will show more accurately which processes contribute to the risk. Included in B&V’s final design scope of work is assessment on risk reduction strategies. Risk reduction measures may range from wet scrubber replacement to minor modifications, such as operational changes and stack modifications. T hese mitigation measures need to be confirmed with B&V’s health risk model in order to March 13, 2018 EOPS Regular Committee Meeting Agenda Packet - Page 38 of 87 Page 5 of 50 assess any impact to plant processes and, specifically, to solids process equipment. Consultant Selection On October 20, 2017, staff issued a Request for Proposal (R F P) for final design services to the engineering consulting community via PlanetBids and Central San’s website. B&V was the only consultant to respond to the RFP. Staff reviewed the proposal and considers B&V capable of meeting Central San's needs to complete the final design. CE QA: At its December 1, 2016 meeting, the Board independently found that the agreement with this vendor was exempt from the California Environmental Quality Act (CE QA) under Central San’s C EQ A Guidelines Section 15262, since it allowed 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 the tasks authorized herein to determine the need for any additional CE QA documentation. ALT E RNAT I V E S /C O NS I D E RAT IO NS An alternative would be to phase or postpone the construction improvements, which is not recommended due to the solids process dependency and design complications previously noted above. A new wet scrubber and air pollution control improvements would significantly help the current issues being experienced with bypass events and reduce chemical costs in controlling HCI emissions. Although the proposed CIB and current budget have adequate cash funding for the final design, it is anticipated that Central San will most likely request bond financing to construct these improvements. T his decision will be presented at a future Board Meeting and no action is required at this time. F I NANC IAL I M PAC T S T he B&V final design services for the Solids Ph. 1 project is estimated at $5.9 million. T he total B&V agreement cost ceiling is estimated at $8.1 million ($2.0 million for pre-design and piloting assistance, $230,000 for the design of the urgent water system upgrades, and $5.9 million for final design), which is approximately 10-percent of the $82 million total estimated project cost as detailed in Attachment 1. T he Solids Ph. 1 project is listed in the Fiscal Year (F Y) 2017-18 CIB on page 161 with a budget of $2,650,000 this fiscal year and $8,200,000 for F Y 2018-19. T he design costs will span two fiscal years with funding as shown in the following table: F inancial Impact Table:Amount x F unds budgeted this F Y 2017-18 f or this project $2,625,000 o F unds taken from current F Y 2017-18 C I B contingency $ 0 F unds transf erred f rom current F Y 2017-18 projects : o a. Updated f orecast; estimated savings f rom project available $ 0 x b. A cceleration of funds for project that is budgeted in future year $ 3,275,000 o c. Combined project scope for bidding purposes $ 0 o d. Potential f uture year budget impact (May be mitigated through (1) savings f rom close-outs of current year projects; (2) reprioritizing f uture year projects; (3) cost savings on future year projects) $ 0 Total C urrent Year Cost $ 5,900,000 March 13, 2018 EOPS Regular Committee Meeting Agenda Packet - Page 39 of 87 Page 6 of 50 C O M M I T T E E RE C O M M E ND AT IO N T he Engineering and Operations Committee reviewed this agreement amendment at the March 13, 2018 meeting and recommended approval to include final design services for the Solids Ph. 1 project. RE C O M M E ND E D B O ARD AC T I O N Authorize the General Manager to include final design services with Black & Veatch Corporation, Agreement 044848, in an amount not to exceed $5.9 million for the Solids Handling Facility Improvements Project-Phase 1, District Project 7348. Strategic Plan Tie-I n G O A L TW O: Strive to M eet Regulatory Requirements Strategy 1 - Strive to Achieve 100% Permit Compliance in Air, Water, Land and Other Regulations G O A L TH R EE: Be a Fiscally Sound and Effective Water Sector Utility Strategy 1 - Conduct Long-Range Financial Planning, Strategy 2 - Manage Costs G O A L FI VE: M aintain a Reliable I nfrastructure Strategy 1 - Manage Assets Optimally Throughout Their Lifecycle, Strategy 2 - Facilitate Long-term Capital Renewal and Replacement G O A L S I X: Embrace Technology, I nnovation and Environmental Sustainability Strategy 2 - Evaluate Business Processes and Optimize Business Operations AT TAC HM E NT S : D escription 1. E stimated C apital C osts of R ecommended I mprovements 2. (Handout) Updated P resentation March 13, 2018 EOPS Regular Committee Meeting Agenda Packet - Page 40 of 87 Page 7 of 50 Attachment 1 Solids Handling Facility Improvements - Phase 1 District Project 7348 Estimated Capital Costs of Recommended Improvements Item Recommended Improvements Total Construction Cost Total Project Cost 1 Sludge Blending and Storage $2,590,000 $3,700,000 2 Sludge Dewatering $11,780,000 $16,500,000 3 Multiple Hearth Furnaces $8,750,000 $12,300,000 4 Seismic Improvements Building Seismic Retrofit Furnace Seismic Retrofit $11,100,000 $3,000,000 $15,600,000 $4,200,000 5 Wet Scrubber and Air Pollution Control $10,560,000 $14,800,000 6 Ash Handling Facility $7,430,000 $10,500,000 7 Emergency Sludge Loadout Facility $3,200,000 $4,500,000 Total Capital Costs $58,410,000 $82,100,000 March 13, 2018 EOPS Regular Committee Meeting Agenda Packet - Page 41 of 87 Page 8 of 50 SOLIDS HANDLING FACILITY IMPROVEMENTS PROFESSIONAL ENGINEERING SERVICES FORSOLIDSHANDLINGFACILITIESPHASE1 FINAL DESIGN Engineering and Operations Committee Meeting March 13, 2018 Jean-Marc Petit, Director of Engineering and Technical Services Edgar Lopez, Capital Projects Division Manager Nathan Hodges, Associate Engineer Item 3.d. (Committee Handout) March 13, 2018 EOPS Regular Committee Meeting Agenda Packet - Page 42 of 87 Page 9 of 50 SOLIDS PHASE 1 PROJECT BACKGROUND •Project Identified in CWMP (and over past 12 years in CIBs) •RFP issued for pre-design in 2016 •B&V selected and awarded on December 1, 2016 •Completed Preliminary Design over past 14 months •RFP issued for final design B&V selected •Recommending to proceed with Final Design March 13, 2018 EOPS Regular Committee Meeting Agenda Packet - Page 43 of 87 Page 10 of 50 Improve efficiency and reliability Maintain regulatory compliance Increase capacity Replace Aging Infrastructure Reduce water and energy usage ORIGINAL PROJECT DRIVERS March 13, 2018 EOPS Regular Committee Meeting Agenda Packet - Page 44 of 87 Page 11 of 50 Improve efficiency and reliability Maintain regulatory compliance Increase capacity Reduce water and energy usage UPDATED PROJECT DRIVERS Replace Aging Infrastructure March 13, 2018 EOPS Regular Committee Meeting Agenda Packet - Page 45 of 87 Page 12 of 50 PRELIMINARY DESIGN COMPLETED BY CONSULTANT •Assisted staff with testing (lime reduction, air pollution control pilot, capacity testing) •Performed risk modeling to assess District approach on draft BAAQMD Rule 11-18 (Adopted November 15, 2017) •Completed 10% preliminary design on improvements to maintain existing solids facilities: •Solids Storage/Blending Facilities •Dewatering Facilities •Air Pollution Control Equipment •Ash Handling •Seismic Improvements for Solids Building and Furnaces •Emergency Sludge Loading Facility •Preparing Specifications and Drawings for Equipment Procurement for: •Centrifuges •Dewatering Sludge Pumps •Air Pollution Control EquipmentMarch 13, 2018 EOPS Regular Committee Meeting Agenda Packet - Page 46 of 87 Page 13 of 50 UPDATED FLEXIBLE PHASED APPROACH TO SOLIDS HANDLING WITH PHASE 1 SOLIDS IMPROVEMENT PROJECT MHFs Design Phase 1 Solids Handling Facilities Improvement Project Phase 2 (6-10 yrs.) Yes Phase 4 (> 20 yrs.) Phase 1 (0-5 Years) COGEN Implement Cogen Improvement Project Innovative BioEnergy New Alternative Solids and Energy Technology Project Evaluation (e.g.; Gasification)? Yes Yes MHFs Construct Phase 1 Solids Handling Facilities Improvement Project Innovative BioEnergy Construct and Operate Phase 1 BioEnergy Project: Demonstration Phase: 10 yrs. COGEN Renew 5 Year Solar Turbine Maintenance Agreement Yes MHFs Construct Phase 2/3 Solids Handling Facilities Improvement Project Yes COGEN Replace COGEN with a 5-Year Mfr. Maintenance Agreement Innovative BioEnergy Construct Phase 2 BioEnergy Project Full Scale 20 years Phase 3 (11-20 yrs.) No COGEN Renew 5 Year Solar Turbine Maintenance Agreement March 13, 2018 EOPS Regular Committee Meeting Agenda Packet - Page 47 of 87 Page 14 of 50 OVERALL PROJECT OBJECTIVES •Ensure reliable capacity and operation of the MHFs and related systems over next 20+ years •Reduce MHF emissions and ensure reliable emissions and permit compliance •Reduce, minimize, and eliminate majority of reportable Bypass Events •Accommodate future air pollution control should SSI MACT 50% cost be reached •Improve overall solids handling reliability and performance; reduce water/energy usage March 13, 2018 EOPS Regular Committee Meeting Agenda Packet - Page 48 of 87 Page 15 of 50 SOLIDS IMPROVEMENT, PHASE 1 PROJECT SCOPE Centrifuge and Cake Pumps Replacement New Air Quality Control Equipment Emergency Sludge Storage Tank Emergency Loadout Improvements Seismic Design (SCB and MHFs) Electrical and Controls Upgrade and Replacement AshLoadout Improvements Furnace Burner Controls Improvements New Sludge Blending Tank with Mixing March 13, 2018 EOPS Regular Committee Meeting Agenda Packet - Page 49 of 87 Page 16 of 50 INTEGRATED PILOT TESTING WILL MINIMIZE FUTURECOSTSANDPLANTOPERATIONIMPACTS Lime Bench- Scale Testing Centrifuge Testing Centrifuge Upgrade Centrate Test LIME/ CENTRIFUGEIntegrated Pilot Tests Completed during Pre- Design CFD Modeling Mixing Upgrades Sludge Blending Tank Desktop MHF Capacity Evaluation Full Scale MHF Test on Reduced Lime Sludge MHF Capacity Test Furnaces MHF Install Pilot Equipment AIR EMISSION Duct Connections Procurement Air Permitting Scrubber Pilot Air Emissions Test Scrubber Effluent Test March 13, 2018 EOPS Regular Committee Meeting Agenda Packet - Page 50 of 87 Page 17 of 50 SOLIDS HANDLING PROJECT REGULATORY DRIVERS •A new scrubber will help ensure compliance with existing and near-term incinerator regulations: Clean Air Act Section 129 Regulated Use of Emergency Bypass Damper Clean Air Act Section 129 HCl Emissions Limit Proposed Amendments to Bay Area Air Quality Management District Particulate Matter (PM) Rule 6-1 More stringent PM concentration limit Recently Adopted BAAQMD Rule 11-18, Air Toxics Reduction Health risk assessment requirement If treatment plant cancer risk is >10/M or non-cancer index >1, risk reduction measures will be needed to reduce below trigger levels March 13, 2018 EOPS Regular Committee Meeting Agenda Packet - Page 51 of 87 Page 18 of 50 HRA EVALUATED PRELIMINARY ALTERNATIVES FOR TOXICS REDUCTION FROM MAJOR CONTRIBUTORS TO AVOID RISK ACTION LEVEL TRIGGERS Emissions Source Potential Toxic Air Contaminant Mitigation Measures Contaminants Reduced Incinerators Wet scrubber Wet ESP Afterburner Metals Toxic Organics Auxiliary Boilers Extend Stack Height Activated Carbon Metals Toxic Organics Preliminary Treatment Headworks and Bar Screens Contain & Treat (Odor Control Scrubber and cover on open areas) Completed H2S Toxic Organics Primary Treatment Cover & Treat (Bioscrubber, Biofilter, Carbon) Toxic Organics Secondary Treatment Cover & Treat (Biofilter, Carbon) Toxic Organics March 13, 2018 EOPS Regular Committee Meeting Agenda Packet - Page 52 of 87 Page 19 of 50 New Wet Scrubber System Potential Future Enhanced Air Pollution Controls New Sludge Cake Pump System New Dewatering Centrifuge System New Afterburner System SSI MACT 50% COST RULE TRIGGERS EXEMPT LIKELY EXEMPT NON-EXEMPT MHF and Building Seismic Upgrades Centershaft Drive Replacement (w/ VFD) Potential Future Refractory Work Potential Future WHB Upgrades Ash Handling and Loadout Improvements Emergency Sludge Loadout Improvements Combustion Air Blower Replacement Burner & Control Upgrades New ID Fan New Sludge Blending, Polymer, and Lime Systems MACT (Maximum Achievable Control Technology New Emergency Bypass Potential Future Wet Scrubber Side Stream Treatment March 13, 2018 EOPS Regular Committee Meeting Agenda Packet - Page 53 of 87 Page 20 of 50 RECOMMENDED IMPROVEMENTS FROM PRE-DESIGN EFFORT March 13, 2018 EOPS Regular Committee Meeting Agenda Packet - Page 54 of 87 Page 21 of 50 SLUDGE BLENDING IMPROVEMENTS1 •New Lime System •New right-sized lime silos and metering pumps •Repurposed Sludge Blending Tank •Convert current sludge blending tank to emergency sludge storage tank w/ engineered pump mixing system •New Sludge Blending Tanks •New sludge blending tanks sized for improved mixing of primary sludge and TWAS w/ vertical turbine mixing system •Next Steps •Evaluate and conduct full scale lime reduction test to optimize lime addition •Design Recommended Improvements March 13, 2018 EOPS Regular Committee Meeting Agenda Packet - Page 55 of 87 Page 22 of 50 SLUDGE DEWATERING IMPROVEMENTS2 •New Polymer System •New polymer storage tanks, day tank, transfer pumps, blending units, and feed tanks to serve new dewatering centrifuges •New Dewatering Centrifuges •Four new high efficiency centrifuges to replace centrifuges beyond useful life •New Sludge Cake Pumps •Four new cake pumps w/ flow metering to replace pumps beyond useful life •Next Steps •Prepare documents for procurement of dewatering centrifuges and cake pumps •Final designed based on selected equipment March 13, 2018 EOPS Regular Committee Meeting Agenda Packet - Page 56 of 87 Page 23 of 50 FURNACE IMPROVEMENTS3 •New Burners and Controls •New low-NOx afterburners on hearth 1 for CO/NOx emissions reduction and new low-NOx burners on hearths 2 –10; new modern, automated controls on all burners •New Center Shaft Drive System •New center shaft drive system w/ VFD to replace unreliable hydraulic drive system •New Combustion Air Blower System •New combustion air blower to be integrated w/ new burner control system •Next Steps •Coordinate design and implementation of furnace improvements w/ seismic retrofit •Complete Final Design March 13, 2018 EOPS Regular Committee Meeting Agenda Packet - Page 57 of 87 Page 24 of 50 USE OF 3D CAD DESIGN WILL BE USED TOIMPROVECOLLABORATIONWITHO&M STAFF March 13, 2018 EOPS Regular Committee Meeting Agenda Packet - Page 58 of 87 Page 25 of 50 3D DESIGN IMPROVES COLLABORATION AND DESIGN ACCURACY •Facilitates District review of preliminary design alternatives •Cake conveyance/storage concept to improve operational flexibility •Drives high quality design •Interference detection and observation •“Walk through” for District review of operations access and maintenance space and hoisting provisions •Leverage 3D model to develop construction phasing and help maintain plant operations •Facilitates cost estimating March 13, 2018 EOPS Regular Committee Meeting Agenda Packet - Page 59 of 87 Page 26 of 50 •Confirm Target Seismic Performance levels for building and MHFs •Update building seismic evaluation for the following: •Target Seismic Performance Level •ASCE 41-13 Seismic Evaluation & Upgrade Standard •New short term and long term SCB equipment modifications •Update and further develop base isolation concepts for MHFs Solids Conditioning Building IMPROVING RELIABILITY WITH SEISMICUPGRADES March 13, 2018 EOPS Regular Committee Meeting Agenda Packet - Page 60 of 87 Page 27 of 50 SLUDGE CONDITIONING BUILDINGDESCRIPTION SOLIDS CONDITIONING BUILDING •Constructed in mid-1970s with partial seismic upgrade in 1985 •126 feet by 180 feet –4 levels •Gravity System –Concrete slab spanning to steel beams and columns •Lateral System –Concrete diaphragm with large openings, steel moment frame and stair towers Northwest Corner of Solids Conditioning Building March 13, 2018 EOPS Regular Committee Meeting Agenda Packet - Page 61 of 87 Page 28 of 50 MULTIPLE HEARTH FURNACEDESCRIPTION FURNACE •Constructed in 1974 •22 feet in diameter, 60 feet tall •Constructed of unreinforced brick •Encased in a thin steel plate shell •Rotating cast iron inner shaft March 13, 2018 EOPS Regular Committee Meeting Agenda Packet - Page 62 of 87 Page 29 of 50 SEISMIC ANALYSIS RESULTS 1. SOLIDS CONDITIONING BUILDING SEISMIC DEFICIENCIES •Concrete shear walls at stair towers are overstressed in shear •Columns and beams are overstressed •Diaphragm capacity is inadequate to transfer forces •Moment frames and connections are inadequate •Braces have inadequate connection capacity 2. FURNACE DEFICIENCIES •Cast iron center shaft is brittle and overstressed in flexure •Brick hearths could collapse in DBE •Unreinforced brick along perimeter inadequate in shear and flexure •Steel shell could buckle in DBE March 13, 2018 EOPS Regular Committee Meeting Agenda Packet - Page 63 of 87 Page 30 of 50 MODELS SOLIDS CONDITIONING BUILDING : ETABS 2015 Model Wall Shear Stresses March 13, 2018 EOPS Regular Committee Meeting Agenda Packet - Page 64 of 87 Page 31 of 50 SEISMIC UPGRADE CONCEPTS •Add new concrete shear walls •Strengthen select columns and beams •Add horizontal diaphragm braces •Infill slab on first floor •Strengthen existing brace connections •Isolate stair towers from building SOLIDS CONDITIONING BUILDING: STRENGHTHENING SCHEME March 13, 2018 EOPS Regular Committee Meeting Agenda Packet - Page 65 of 87 Page 32 of 50 SEISMIC UPGRADE CONCEPTS FORFURNACES •Add new base isolators under each column and center shaft •Add braces at furnace base columns and center shaft FURNACE STRENGHTHENING SCHEME •Add seismic joints for all utility connections, stairs and platforms March 13, 2018 EOPS Regular Committee Meeting Agenda Packet - Page 66 of 87 Page 33 of 50 SEISMIC UPGRADE CONCEPTS Example: Friction Pendulum at Kealakaha Bridge March 13, 2018 EOPS Regular Committee Meeting Agenda Packet - Page 67 of 87 Page 34 of 50 SEISMIC UPGRADE CONCEPTS FOR MHFS Existing Furnace Base Conditions Base Condition with Isolators March 13, 2018 EOPS Regular Committee Meeting Agenda Packet - Page 68 of 87 Page 35 of 50 SEISMIC IMPROVEMENTS RECOMMENDATIONS4 •Separate Stairwells and Elevators •Seismically separate stairs and elevator core walls from building •Add Shear Walls and Infill Slabs •Strategically locate new shear walls and infill slabs to seismically strengthen building •Isolate Furnaces from Building •Install new MHF base isolators and flexible duct, piping, and conduit connections to allow for lateral movement of furnaces •Next Steps •Design and implementation of seismic improvements for the SCB and MHFs March 13, 2018 EOPS Regular Committee Meeting Agenda Packet - Page 69 of 87 Page 36 of 50 AIR POLLUTION CONTROLIMPROVEMENTS5 •New Wet Scrubbers •New high performance wet scrubbers to replace wet scrubbers beyond useful life •New MHF Emergency Bypass •Route dry scrubber/waste heat boiler bypass to new wet scrubbers for treatment •New Ash Slurry Drain System •Route wet scrubber drain to new wet ash handling system with potential future treatment to reduce metals •Next Steps •Prepare documents for procurement of wet scrubbers •Include elements in design layout for potential additional modules that may be required by future regulations March 13, 2018 EOPS Regular Committee Meeting Agenda Packet - Page 70 of 87 Page 37 of 50 ASH HANDLING AND LOADOUT SYSTEMIMPROVEMENTS 6 •New Wet Ash Loadout System •Replace dry ash loadout system with wet ash loadout system w/ ash dewatering in truck trailer or loadout container •New Wet Ash Collection System •Replace MHF dry ash conveyor w/ new wet ash receivers and drain from wet scrubbers •New Ash Slurry Pump System •Replace dry ash vacuum system w/ new ash slurry pumps and piping •Next Steps •Conduct wet ash loadout system bench scale and pilot testing to verify performance •Finalize design of new ash loading system March 13, 2018 EOPS Regular Committee Meeting Agenda Packet - Page 71 of 87 Page 38 of 50 Dewatered Cake Storage IMPROVE EMERGENCY SLUDGE LOADOUTFACILITY March 13, 2018 EOPS Regular Committee Meeting Agenda Packet - Page 72 of 87 Page 39 of 50 EMERGENCY SLUDGE LOADOUTIMPROVEMENTS 6 •New Sludge Loadout Operation •Add sludge discharge gates to allow even filling of trailer without moving truck •New Sludge Loadout Odor Control •Expand odor control system to capture vents from new sludge loadout chutes •New Sludge Loadout Containment •Upsize sludge loadout drainage system and add retractable curtain containment around sludge loadout truck •Next Steps •Design improvements to emergency sludge loading building March 13, 2018 EOPS Regular Committee Meeting Agenda Packet - Page 73 of 87 Page 40 of 50 ELECTRICAL AND CONTROLSIMPROVEMENTS7 •New PLC Control panels for all new equipment •Provide new local control panels with PLC for all new process equipment and connect with SCADA system •New MCCs for Equipment in SCB •New MCC Room •New Furnace Controls •Replace obsolete hard wire control panel •Next Steps •Engineer site visits to inventory electrical and control equipment •Design improvements to emergency sludge loading building March 13, 2018 EOPS Regular Committee Meeting Agenda Packet - Page 74 of 87 Page 41 of 50 ESTIMATED CAPITAL COSTS OFRECOMMENDEDIMPROVEMENTS 1 2 3 4 5 6 RECOMMENDED IMPROVEMENTS TOTAL CONSTRUCTION COST TOTAL PROJECT COST Sludge Blending and Storage $2,590,000 $3,700,000 Dewatering System $11,780,000 $16,500,000 Furnace $8,750,000 $12,300,000 Building Seismic Retrofit $11,100,000 $15,600,000 Furnace Seismic Retrofit $3,000,000 $4,200,000 Air Pollution Control $10,560,000 $14,800,000 Ash Handling and Loadout System $7,430,000 $10,500,000 Emergency Sludge Loadout Facility $3,200,000 $4,500,000 TOTAL CAPITAL COSTS $58,410,000 $82,100,000 March 13, 2018 EOPS Regular Committee Meeting Agenda Packet - Page 75 of 87 Page 42 of 50 Project cost Estimates Total Project Cost Estimate, $M Project Elements Original DP No.FY 2016 Proj No.FY 2018 Wet Scrubber Replacement In CIB (TBD)$ 30.00 7348 $ 14.80 Wet Scrubber Pilot, Other 7315 $ 0.85 7348 $ 1.10 ** Dewatering System 7286 $ 12.40 7348 $ 16.50 Sludge Blending In CIP $ 2.90 7348 $ 3.70 HRA New Rule $ 0.20 7348 $ 0.30 Lime Reduction 7315 $ 0.15 7348 $ 0.02 ** Ash System 7312 $ 2.00 7348 $ 10.50 SCB Seismic In CIP $ 13.50 7348 $ 15.60 MHF Seismic In CIP $ 5.00 7348 $ 4.20 Total Project Cost $ 67.00 $ 66.72 Added and Changed Scope Emergency Sludge Loadout In CIP $ -7348 $ 4.50 MHF (burners)7329 $ 0.85 7348 $ 12.30 Revised Total Project Cost $ 67.85 $ 83.52 Note: This includes E/I&C $ 0.70 ** Not included in BV's $82.1M cost estimate March 13, 2018 EOPS Regular Committee Meeting Agenda Packet - Page 76 of 87 Page 43 of 50 PROJECT SCHEDULE March 13, 2018 EOPS Regular Committee Meeting Agenda Packet - Page 77 of 87 Page 44 of 50 2018 2019 2020 2021 2022 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Equipment Procurement RFP and Equipment Selection Equipment Procurement Shop Drawings and Fabrication Final Design (30%, 60%, 95%, 100%) Bidding Bid and Award Construction Installation and Commissioning ANTICIPATED DESIGN ANDCONSTRUCTIONSCHEDULE Procurement Phase: January 2018 –August 2019 Design Phase: April 2018 –October 2019 Bid & Construction Phase: October 2019 –December 2022 March 13, 2018 EOPS Regular Committee Meeting Agenda Packet - Page 78 of 87 Page 45 of 50 ANTICIPATED CASH FLOW FOR PROJECT March 13, 2018 EOPS Regular Committee Meeting Agenda Packet - Page 79 of 87 Page 46 of 50 NEXT STEPS AND RECOMMENDATIONS March 13, 2018 EOPS Regular Committee Meeting Agenda Packet - Page 80 of 87 Page 47 of 50 NEXT STEPS •Prepare equipment procurement documents: Jan –May 2018 •Conduct lime and wet ash performance tests: May –Sept 2018 •Finalize Design of Phase 1 Solids Handling Facility Improvements Project: Apr 2018 –Oct 2019 March 13, 2018 EOPS Regular Committee Meeting Agenda Packet - Page 81 of 87 Page 48 of 50 STAFF RECOMMENDATIONS •Authorize the General Manager to include final design services in Agreement Number 044848 with Black & Veatch Corporation in an amount not to exceed $5.9 million for the Solids Handing Facility Improvements Project-Phase 1, District Project 7348 March 13, 2018 EOPS Regular Committee Meeting Agenda Packet - Page 82 of 87 Page 49 of 50 QUESTIONS? March 13, 2018 EOPS Regular Committee Meeting Agenda Packet - Page 83 of 87 Page 50 of 50