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Home My WebLink About11. Approve new $250,000 project for the Water Exchange Project, DP 7368, and amend Brown & Caldwell contract to increase cost ceiling for as-needed technical support to complete the Preliminary Feasibility Evaluation Page 1 of 14 Item 11. CENTRAL SAN BOARD OF DIRECTORS POSITION PAPER MEETING DATE: MAY 2, 2019 SUBJECT: APPROVE A NEW PROJECT IN THE AMOUNT OF $250,000 FOR THE WATER EXCHANGE PROJECT, DISTRICT PROJECT 7368, AND AUTHORIZE THE GENERAL MANAGER TO EXECUTE A CONTRACT AMENDMENT WITH BROWN & CALDWELL TO INCREASE THE COST CEILING FROM $95,000 TO $345,000 FOR AS-NEEDED TECHNICAL SUPPORT TO COMPLETE THE PRELIMINARY FEASIBILITY EVALUATION SUBMITTED BY: INITIATING DEPARTMENT: MELODY LABELLA, RESOURCE RECOVERY ENGINEERING AND TECHNICAL SERVICES- PROGRAM MANAGER PDS-RESOURCE RECOVERY REVIEWED BY: EDGAR LOPEZ, CAPITAL PROJECTS DIVISION MANAGER JEAN-MARC PETIT, DIRECTOR OF ENGINEERING AND TECHNICAL SERVICES Roger S. Bailey General Manager ISSUE Board approval is required to add a new project to the Capital Improvement Budget (CI B) in an amount greater than $200,000. Board approval is also required to authorize consulting contracts in an amount greater than $100,000. BACKGROUND On April 30, 2018, Central San, Contra Costa Water District (CCW D) and Santa Clara Valley Water District (Valley Water) executed a three-way Memorandum of Understanding (MOU)to complete a preliminary feasibility evaluation of the Refinery Recycled Water Exchange Project. Staff of the three agencies collaborated to complete a Work Plan, to define the tasks of the Preliminary Feasibility Evaluation, as called for in the MO U by J une 15, 2018. 1 n J my 2018, after completing a competitive, qualification-based selection process that included scoring of Statements of Qualifications from five firms May 2, 2019 Regular Board Meeting Agenda Packet- Page 85 of 194 Page 2 of 14 (Black& Veatch (B&V), Brown and Caldwell (B&C), Hazen and Sawyer(H&S), Kennedy Jenks and Woodard & Curran) and an in-person interview of three firms (B&V, B&C and H&S), staff executed a $95,000 contract with B&C to quickly get started with completing the technical tasks Central San is responsible for in the Work Plan, in order to complete the Preliminary Feasibility Evaluation. An update on the status of the Work Plan elements are included in the attached presentation. B&C's work has included development of treatment trains and their associated costs for producing recycled water comparable to the refineries' current raw water supply and rehabilitating the existing infrastructure to convey the recycled water to the refineries. During the timeframe of this initial analysis, two related events have occurred that provide an opportunity for additional consideration of this project. First, the importance of Central San's Filter Rehabilitation and Clearwell Improvements Project, District Project(DP) 7365, was elevated due to issues with the Clearwell cover. From the initial evaluation by Stantec, it appears that Central San faces a substantial investment to modernize the existing facilities to continue to safely and effectively produce Title 22 recycled water. The timing of this discovery provides an opportunity for Central San to consider a new approach - namely, sharing part of the Water Exchange Project treatment train to produce Title 22 recycled water. Second, during this initial analysis, the San Francisco Regional Water Quality Control Board issued the draft of the second Bay Area Nutrient Watershed Permit, which establishes a "Planning Level Target" that provides a planning level horizon for Central San to consider in its planning for future nutrient removal requirements. This provides an opportunity for Central San's Board to consider an early investment in the Water Exchange Project to address future nutrient removal requirements, so staff would like to incorporate this additional analysis into the Preliminary Feasibility Evaluation. B&C has done an exceptional job on their initial assignment. Staff would like to increase their contract by $250,000 to conduct additional analysis on the project on a task order basis to evaluate the new opportunities that have arisen. Future tasks desired include: • Completing a detailed flow balance (wastewater supply vs. recycled water demands); • Developing a framework for evaluating a Central San cost allocation, as related to future nutrient regulations; • Participating in an expert consultant workshop to develop additional treatment train(s)to most cost- effectively produce both Title 22 recycled water and refinery-quality recycled water, and developing cost estimates for the resulting treatment train(s); and • Developing a framework for cost sharing for the new, optimized treatment train(s) among Central San, the Concord Community Reuse Project, and Valley Water. I n order to fund this additional analysis, staff is requesting Board approval of a new CI B project in the amount of$250,000 in the Recycled Water Program for the Water Exchange Project. ALTERNATIVES/CONSIDERATIONS The Board could elect to not amend B&C's contract or to reduce the amount of added budget, but that is not recommended. FINANCIAL IMPACTS The additive cost to the B&C Agreement will be $250,000. The original cost ceiling is $95,000 and approval of the amendment will increase the cost ceiling to $345,000. Upon approval, the General Manager will transfer$250,000 from the Filter Plant and Clearwell I mprovements Project, DP 7361 to create and fund a new project, Water Exchange Project DP 7368. There is adequate funding in DP 7361 this fiscal year for this new project. Further refinement of the future year financial impacts for the Water Exchange Project will be included in the proposed fiscal year 2019-20 Cl B. This transfer will be May 2, 2019 Regular Board Meeting Agenda Packet- Page 86 of 194 Page 3 of 14 classified as a "New Project" in the quarterly Cl B project transfer analysis report. COMMITTEE RECOMMENDATION This matter was considered at the April 15, 2019, Real Estate, Environmental & Planning Committee and the Committee members supported staff's recommendations. RECOMMENDED BOARD ACTION 1. Approve a new project in the amount of$250,000 entitled the Water Exchange Project, DP 7368; and 2. Authorize the General Manager to execute a contract amendment with Brown & Caldwell to increase their cost ceiling from $95,000 to $345,000 for as-needed technical support to complete the Preliminary Feasibility Evaluation for the Water Exchange Project, DP 7368. Strategic Plan Tie-In GOAL SIX: Embrace Technology, Innovation and Environmental Sustainability Strategy 1 -Augment the region's water supply ATTACHMENTS: 1. Presentation May 2, 2019 Regular Board Meeting Agenda Packet- Page 87 of 194 Page 4 of 14 WATER EXCHANGE PROJECT UPDATE AND REQUEST TO APPROVE A NEW PROJECT AND AMEND BROWN & CALDWELL'S CONTRACT Melody LaBella, P.E. Resource Recovery Program Manager Board Meeting - May 2, 2019 - - 1 MEMORANDUM OF UNDERSTANDING On April 30, 2018, a three-way Memorandum of Understanding (MOU) was executed between Central San, Contra Costa Water District (CCWD) and Santa Clara Valley Water District (Valley Water) to conduct a Preliminary Feasibility Evaluation of the Refinery Recycled Water Exchange Project. CENTRAL SAN IZ 1 May 2, 2019 Regular Board Meeting Agenda Packet- Page 88 of 194 Page 5 of 14 WATER EXCHANGE PROJECT CONCEPT Martinez Refineries ,.. 44 f Los Vaqueros �22 TAFY Reservoir Ak22 TAFY , �"=a -�. Contra Costa Transfer-Bethany Water District Pipeline _ Valley Wdter (proposed) South Bay *TAFY=thousand acre-feet per year Aqueduct [1 TAF=0.89 million gallons per day(MGD)] 3 CENTRALSAN BROWN & CALDWELL SELECTED FOR AS-NEEDED SUPPORT IN JUNE 2018 Brown•.. Caldwell' As-Weeded Technical Support for the Refinery Recycled Water Exchange Project 7•- y- CENTRALSAN 2 May 2, 2019 Regular Board Meeting Agenda Packet- Page 89 of 194 Page 6 of 14 WORK PLAN COMPLETED JUNE 2018 Central San, CCWD, and Valley Water staff collaborated to develop the Preliminary Feasibility Work Plan called for in the MOU. Tasks included: Review and update costs previously developed to provide recycled water for refinery use B. Evaluate project yield C. Develop estimated costs D. Allocate costs and benefits CENTRALSAN IS STATUS OF WORK PLAN TASKS CENTRALSAN 3 May 2, 2019 Regular Board Meeting Agenda Packet- Page 90 of 194 Page 7 of 14 A. REVIEW AND UPDATE PREVIOUS ESTIMATED COSTS TO SERVE REFINERIES • Previous HDR reports from 2009 were provided to Valley Water, in addition to updated cost estimates. • Valley Water staff evaluated the updated costs and determined they would like to proceed forward in the analysis. CENTRALSAN1 B. EVALUATE PROJECT YIELD 1 . How much recycled water is Central San capable of reliably producing? • Initial analysis indicates 95% reliability for 19 MGD. 2. How much freed-up raw water supply is CCWD's system capable of yielding with the Los Vaqueros Reservoir Expansion (LVE) Project facilities (which include the Transfer-Bethany Pipeline)? • Historical average yield = 50%. 3. How much of CCWD's freed-up raw water supply is Valley Water capable of receiving? • This is currently being evaluated by Valley Water. CENTRALSAN 4 May 2, 2019 Regular Board Meeting Agenda Packet- Page 91 of 194 Page 8 of 14 C. COSTS 1 . Central San will develop the costs to produce the recycled water. • B&C evaluated four treatment trains, then narrowed down to two for present-worth valuations for a refinery-only treatment train. 2. Central San and CCWD will collaborate to develop the costs for conveying the recycled water to the refineries. • B&C developed these costs, which are currently under review by CCWD. 9 CENTRALSAN C. COSTS 3. CCWD will develop the costs for conveying the freed-up raw water through its system. • CCWD developed these preliminary costs as part of their LVE Project. 4. Valley Water and CCWD will collaborate to develop costs for conveying the freed-up raw water supply beyond the CCWD system to Valley Water. • This is currently being evaluated by Valley Water. CENTRALSAN 5 May 2, 2019 Regular Board Meeting Agenda Packet- Page 92 of 194 Page 9 of 14 D. COST AND BENEFIT ALLOCATION • Following the beneficiary pays principle, Central San, CCWD, and Valley Water will collaborate to develop this cost allocation. • No cost allocation for Central San determined iLeet as part of the initial analysis. ,. CENTRALSAN RELATED CENTRAL SAN PROJECTS -Title 22 Supply (Present and Future) • Retrofit existing -$50M •Concord Community Reuse Project -$30M -Nutrient mitigation • Level 1 optimization - $10 to $12M in capital • Capital expense is included in current 10-year CIB •Would also require $3.2M per year in added O&M • FutureNutrient Removal - estimated at $200 to $350M • Not currently in CIP, but identified in Master Plan and 10-year CIP as future unfunded project 6 May 2, 2019 Regular Board Meeting Agenda Packet- Page 93 of 194 Page 10 of 14 IMPACT OF FUTURE TOTAL INORGANIC NITROGEN (TIN) DISCHARGE Load Increase due to Population Growth(with Existing Zone 1 deliveries) s.000 Planning-Level Target (4,300 kg TIN/day) ::............_...... ................. ....... ........._....._.._........_...................................... Max Dry Season Load Over Initial Watershed a,000 Potential Regulatory Window Permit Monitoring Period (3,700 kg/day) xp00 i3Oa0 Planning Level Target defined in the draft watershed permit fact sheet 13 CENTRALSAN IMPACT OF EXPANDING TITLE 22 DELIVERIES ON TIN DISCHARGE 6,0W Extends Cap Compliance Assumes increased Zone 1 and s,uw CCRP deliveries begin in 2022 4,000 ..._..._.._. _... _..._._..._._._.._._....._._.._._._..__._.._._._._._. 3,000 TIN Load Discharge with Expansion of Zone 1 and Concord Community Reuse Project(CCRP) x,000 1,000 CIENTRALSAN 7 May 2, 2019 Regular Board Meeting Agenda Packet- Page 94 of 194 Page 11 of 14 IMPACT OF NUTRIENT UPGRADES ON TIN DISCHARGE b.cwu s,mn r ------------------ - - — a g 4p00 Optimization Nutrient Upgrades 3L00 $10-$12M Capital Investment I 3°0° Nutrient Upgrades(BACWA Level 2) $150-$250M Capital Investment" i.000 RNs" s � � � nns � � nns � � � gg � ss � n BACWA Level 3 would increase the cost to over$350M 15 CENTRALSAN IMPACT OF WATER EXCHANGE ON TIN DISCHARGE s,0m 5,000 4,000 E r 3,000 Water Exchange —$400-500M+ z,000 CENTRALSAN i,000 8 May 2, 2019 Regular Board Meeting Agenda Packet- Page 95 of 194 Page 12 of 14 ADDITIONAL TASKS FOR B&C 1 . Completing a detailed flow balance (wastewater supply vs. recycled water demands); X17 CENTRALSAN NEED FOR A DETAILED FLOW BALANCE (DURING DRY WEATHER SEASON Bay discharge(considering p RO concentrate dilution) ADWF has CENTRAL ranged from TREATMENT PLANT —29 to 33 MGD over the last 5 years 8 to 14 MGD Title 22 Supply * Includes CCRP A ij CENTRALSAN 9 May 2, 2019 Regular Board Meeting Agenda Packet- Page 96 of 194 Page 13 of 14 ADDITIONAL TASKS FOR B&C 1 . Completing a detailed flow balance (wastewater supply vs. recycled water demands); 2. Developing a framework for evaluating a Central San cost allocation, as related to future nutrient regulations; 3. Participating in an expert consultant workshop to develop additional treatment train(s) to most cost-effectively produce both Title 22 recycled water and refinery-quality recycled water, and developing cost estimates for the resulting treatment train(s); and CENTRALSAN � 9 ADDITIONAL TASKS FOR B&C 4. Developing a framework for cost sharing for the new, optimized treatment train(s) among Central San, the Concord Community Reuse Project (CCRP), and Valley Water. CENTRALSAN 10 May 2, 2019 Regular Board Meeting Agenda Packet- Page 97 of 194 Page 14 of 14 STAFF RECOMMENDATION Approve a new project in the amount of $250,000 for the Water Exchange Project, District Project 7368; and Authorize the General Manager to execute a contract amendment with Brown & Caldwell to increase their cost ceiling from $95,000 to $345,000 for as-needed technical support to complete the Preliminary Feasibility Evaluation for the Water Exchange Project, DP 7368. z� CENTRALSAN QUESTIONS CENTRALSAN 11 May 2, 2019 Regular Board Meeting Agenda Packet- Page 98 of 194