HomeMy WebLinkAbout04.a. (Handout) BCE Revised Presentation, as presented (Handout) - Item 4.a.
Revised Presentation
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BUSINESS CASE EVALUATION
CENTRAL SAN PROCESS
Bryan McGloin, Management Analyst
Danea Gemmell, Planning and Development Services Division Manager
Jean-Marc Petit, Director of Engineering and Technical Services
Engineering and Operations Committee Meeting
November 19, 2019
I
WHY CONDUCT A BUSINESS CASE
EVALUATION (BCE)?
• BCE is a process to evaluate solutions to a need/problem and
determine how best to address this need considering financial,
environmental, and social impacts. It is a multi-step process
intended to maximize objective over subjective assessment of
project alternatives.
• Evaluate economic(cost)and non-economic variables
• Consider consistent factors across multiple project alternatives
• Normalize values to allow for combination and comparison
• Although a BCE will often be highly quantitative, its ultimate
purpose is to support a business judgment decision on a
proposed project.
6- ZVQ 112
INTRODUCTION
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BCE AT
CENTRAL SAN
• BCE conducted to date on major projects
• Comprehensive Wastewater Master Plan
• Headworks Screenings Upgrade, District Project (DP) 7327
• Solids Handling Facility Improvements, DP 7348
• Pump Station Upgrades, Phase 1, DP 8436
• Filter Plant and Clearwell Improvements - Phase 1A, DP 7361
• Influent Pump Electrical Improvements, DP 7328
• BCE on upcoming major projects
• Pump Station Upgrades, Phase 2, DP 8457
• Steam and Aeration Blower Systems Renovations, DP 7349
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BACKGROUND
CURRENT BCE
PROCESS AT CENTRAL SAN
1. Evaluate specific project needs and drivers
2. Conduct an in-depth evaluation of existing asset condition
assessment and determination of remaining life
3. Evaluate whether to keep and maintain the existing assets,
replace in-kind, and/or replace with new technology
4. Conduct pilot testing of preferred technology when appropriate to
validate design criteria and risk(if needed)
5. Evaluate current and possible future regulatory drivers that would
impact the project and identified solutions
6. Preliminary investigation as needed (geotechnical, survey,
permitting, environmental, etc.)
7. Prepare design alternatives based on prior information
8. Prepare capital expenditure (CapEx)for each alternative
9. Evaluate operations and maintenance (O&M)for each alternative
10.Prepare pros and cons for each alternative
11.Prepare 30-year net present value (NPV) (life cycle cost(LCC)
analysis)for each alternative
12.Present BCE to Executive Team
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BACKGROUND
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RECOMMENDED BCE APPROACH FOR FUTURE
CENTRAL SAN PROJECTS
3c:Preferred 4c:TBL+
Alternatives Approach
3a: 4a: 4b:O&M
Potential 3b: Project Cost 4d:
Alternatives Screening Cost Sensitivity
Process Analysis
Step 1:Define Step 2: Step 3:Business
Project Drivers Comprehensive Case
&State the Condition Alternatives
Need Assessment Development
Step 5:Pilot
Testing ----
(If Applicable)
Project Proceeds to
Pre-design Step 6: r
Recommended
Alternative
6b:Present
to
Committee
6c:Present 6a:Present
to Board to Executive
Team AWL
CENTRALSAN
QUESTIONS?
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