HomeMy WebLinkAbout12. Approve Electric Blower Improvements Project - Phase 1 and funding the Steam and Aeration Blower Systems Renos, DP 7349, etc. Page 1 of 17 Item 12. CENTRAL SAN BOARD OF DIRECTORS POSITION PAPER MEETING DATE: JULY 16, 2020 SUBJECT: APPROVE THE ELECTRIC BLOWER IMPROVEMENTS PROJECT - PHASE 1 IN THE FISCAL YEAR 2020-21 BUDGETAND FUNDING FROM THE STEAM AND AERATION BLOWER SYSTEMS RENOVATIONS, DISTRICT PROJECT 7349; AND AMEND AN EXISTING PROFESSIONAL ENGINEERING SERVICES AGREEMENT WITH HDR, INC. IN AN AMOUNT NOT TO EXCEED $880,000 TO INCLUDE FINAL DESIGN SERVICES, INCREASING THE AGREEMENT COST CEILING TO $3,470,000 SUBMITTED BY: INITIATING DEPARTMENT: NITIN GOEL, SENIOR ENGINEER, SPECIAL ENGINEERING AND TECHNICAL SERVICES- PROJECTS AND ASSET MANAGEMENT PDS-ASSET MANAGEMENT REVIEWED BY: DANEA GEMMELL, PLANNING AND DEVELOPMENT SERVICES DIVISION MANAGER EDGAR J. LOPEZ, CAPITAL PROJECTS DIVISION MANAGER JEAN-MARC PETIT, DIRECTOR OF ENGINEERING AND TECHNICAL SERVICES Roger S. Bailey General Manager ISSUE The Board of Directors (Board) authorization is required for the General Manager to amend an existing professional engineering services agreement in an amount greater than $200,000. BACKGROUND Central San staff has updated the Board or Board Committee at several meetings, including on December 20, 2018, when the authorization was granted to enter into an agreement with HDR, I nc. (HDR)for condition assessment and preliminary design of the Steam and Aeration Blower Systems Renovations, July 16, 2020 Regular Board Meeting Agenda Packet- Page 352 of 393 Amended Agenda Page 2 of 17 District Project (DP) 7349 (Steam Project). This decision was made after a very competitive and formal Request for Proposal (RFP) process that included four qualified consulting engineering firms. The RFP scope of work included preliminary, final design services, and engineering services during construction for an estimated total Steam Project budget of$63 million. Staff is now recommending phasing the Steam Project into five distinct projects and proceeding with final design of the Electric Blower Improvements (Phase 1 of the Steam Project). Aeration Blowers The aeration blowers supply air to four aeration basins, pre-aeration system, final effluent, and mixed liquor channels. Central San has three aeration blowers (blowers). Two blowers, installed in 1974, are steam- driven turbine blowers utilizing steam produced from the heat recovery from the furnace's waste heat boilers, cogeneration system, and augmented by auxiliary boilers. The steam-driven blowers are oversized, each rated at 71,000 standard cubic feet per minute (scfm), for the treatment plant's (plant) typical operation which typically uses on average 30,000 and 45,000 scfm. In addition, there is complex interconnection between the solids process, waste heat, steam-driven blower, and the secondary process aeration system. Due to this complex interconnection, any upsets, shutdowns, and process variability in any of these systems can potentially impact the plant's ability to meet the dissolved oxygen needs of the biological process and impacts the furnace air scrubber emission system. The electric blower, which is the third blower, serves as a backup when the steam system is shut down for maintenance or under emergency scenarios. However, there are several shortcomings associated with the electric blower. The findings of the condition assessment and capacity analysis are that the single existing electric blower does not provide adequate redundancy(only produce air up to 30,000 scfm)to meet peak aeration demand (over 70,000 scfm). The electric blower is challenging to operate with the standby power generation system due to the high in-rush current of the 2,000 horsepower electric motor, has limited turndown capabilities because it has a synchronous motor with no variable frequency drive, and cannot be operated in parallel with the larger steam turbine blower(controls and blower curve issues). In summary, there are several vulnerabilities associated with the three blowers including its complexity (steam system and controls), inability to operate in parallel (only one of three blowers can operate at a time), limited air flow output turndown (on both the steam and electric blowers), and a lack of redundancy. The rehabilitation or replacement of the existing electric blower and addition of a new electrical blower(s) is now of critical importance to Central San because the plant would have insufficient process air and steam production during the construction of the Solids Handling Facility Improvements Project, DP 7348 (Solids Project) as explained in further sections. Insufficient process air over a prolonged period could result in National Pollutant Discharge Elimination System (NPDES) Permit compliance issues resulting from the biological treatment process upsets. Steam Project Long Alternatives Looking into the future, Central San is faced with the critical decision of whether to continue operating the existing complex steam system that provides the steam required to power the turbines that drive the two large aeration blowers (with back-up electric driven blowers), or transition towards the use of modern technology using steam for electric power generators and convert the aeration blowers to all electric. The evaluation aims to address both the short- and long-term impacts of this question based on preliminary findings from the on-going Steam Project. For the long-term, the solution to this problem is governed by Central San's overall drivers: i) aging infrastructure, ii) performance analysis/sustainability, iii) capacity, and iv) regulatory. For the short-term (defined as the next 3-5 years during the Solids Project construction), the problem is the ability to provide sufficient process air during this period to meet NPDES limits. The two long-term alternatives that are being evaluated as part of the Steam Project will both continue to rely on our existing heat recovery units (cogeneration boiler, waste heat boilers from the furnaces, and auxiliary boilers). One alternative would continue to operate the existing steam blowers with standby electric blowers (current approach)or convert July 16, 2020 Regular Board Meeting Agenda Packet- Page 353 of 393 Page 3 of 17 to all electric-driven blowers and install steam power generators in the Solids Conditioning Building (SCB) to produce electricity from the steam. One common element to both long-term alternatives is the addition of electric driven blowers to meet the above-mentioned drivers. The addition of new electric blowers will enable the aeration blower system to meet the variable air demand, reliability, and redundancy needed at the plant and especially under emergency scenarios. New electric blowers would have a much better turndown (larger range between low and high air output). This would help avoid air wasting during periods of low demand. Impact of Solids Project with the Steam Project— Short-Term Alternatives Central San is nearing completion of the final design for the Solids Project, with construction slated to begin in the Spring of 2021. During the construction of the Solids Project, several unit processes located inside the SCB will need to be offline for an extended period (several months and maybe possibly up to one year)to facilitate construction sequencing, reduced risk of unplanned shut downs, and improve safety for staff and the contractor.As part of two comprehensive Solids Project workshops that took place on January 29-30, 2020 and April 9, 2020, which included the Solids Project's design consultant(Black and Veatch) and construction management firm (MW H Constructors), Steam Project consultant (HDR) and Central San staff, there were extensive discussions on "what-if" scenarios about shutting down the SCB and all equipment to allow the contractor full unrestricted and unconstrained access and facilitate construction. Following the discussion, it was concluded that Central San should continue to operate the cogeneration system to produce electricity and use natural gas (NG). It was also agreed to keep the two auxiliary boilers operational (one fueled landfill gas and another using NG, if needed)to continue producing steam. These fuel demands will satisfy Central San's contractual commitments for the purchase of these two gas fueled sources. However, an option for the furnaces and associated equipment(e.g., wet scrubbers, waste heat boilers, and ash handling) be taken offline during the part of the construction and during the retrofits of these unit processes is being considered and included in the bid documents to address safety concerns, coordination issues, and to facilitate the construction sequencing being planned. Shutting down the furnaces and associated waste heat boilers will reduce the total steam amount generated during construction of the Solids Project. While they will be sufficient steam to drive the blowers during average diurnal air demand, there will be insufficient steam to drive the turbines at full load. This will lower the air production capacity in the steam-driven blowers during the peak aeration demands. Therefore, additional air production will be required from the new electric blowers. During the Solids Project, both steam and PG&E electricity will be used for the blowers to produce process air. Under an eventual Public Safety Power Shutoff by P&G E, the new electric blowers can be powered using the existing two 2-Megawatt electric standby generator that could supply power even if sufficient steam is not available during that time. Therefore, subsequent to these workshops, HDR was tasked to develop alternatives to address the steam and air production issues during construction of the Solids Project. Business Case Evaluations (BCEs) HDR prepared several BCEs that evaluated blower combinations to provide adequate redundancy and reliability during the Solids Project construction and have long-term benefits.Apart from the capacity deficiency to meet the peak aeration demands with the steam driven blowers during the Solids Project construction, the biggest drawback is that Central San would be relying on steam production which is susceptible to multiple outages during the upcoming Solids Project construction (projected to last over three years).As stated above, the existing electric blower does not provide enough firm capacity(about half)to meet the peak aeration demands. Based on HDR's detailed alternative evaluations and BCEs, staff determined that installing two new electric blowers would provide a means to address the short-term challenge during construction of the Solids Project, and provide a long-term benefit of improved performance (efficiencies, redundancy, and reliability). July 16, 2020 Regular Board Meeting Agenda Packet- Page 354 of 393 Page 4 of 17 When evaluating the long-term needs of the Steam Project, staff is recommending implementing the improvements over time and in several phases when needed. A similar approach was recently taken for the Filter Plant and Clearwell I mprovements - Phase 1 A Project to manage the construction and capital expenditures. The Steam Project Implementation Plan, while not yet completed, outlined in the phases takes into consideration other project needs, such as future regional cooperation (Water Exchange) and regulatory driver such as future nutrient removal (as part of future Watershed Nutrient Permit requirements). The preliminary phasing of the project is outlined below and will be updated when the summary of findings is finalized later this year. • Phase 1: Electric Blower Improvements -Add new electric blowers in the Pump and Blower Building, with dedicated small blowers for channel aeration, and includes associated electrical and controls systems. • Phase 2: Secondary Process Improvements including aeration basins, diffusers, associated electrical and controls systems, mixed liquor division box, and secondary clarifiers with associated pumping equipment. • Phase 3: Complete evaluation of the steam system and determine whether to upgrade the existing steam system versus conversion to all electric blowers with the Steam Turbine Power Generator. The recommended solution would be implemented under that phase and would include updating the remaining blower improvements accordingly. • Phase 4: Rehabilitation or addition of other elements that will be impacted if a Water Exchange Project was to proceed. • Phase 5: Modifications and additions for future nutrient removal. Staff evaluated all results of the BCEs to reach consensus on the preferred alternative which is now recommended as Electric Blower Improvements. The conclusion of the BCE provides justification for the recommended alternative, which demonstrates how the recommended solution provides the best overall value for Central San ratepayers and the community when considering level of service, economic factors, risk, and intangible factors. Electric Blower Improvements - Phase 1 Approach Staff is recommending proceeding with design of the Electric Blower Improvements and include the following main elements: • Refurbish and add new electric blowers in the Pump and Blower Building. • Add dedicated small blowers for pre-aeration, mixed liquor, and final effluent channel air mixing. • Add associated electrical instrumentation and controls systems improvements to support process renovations. A summary of the long-term benefits from the Electric Blower Improvements is described below: • Recommended under both long-term alternatives of the Steam Project; • Provides reliable air supply redundancy after the construction of the Solids Project is complete due to steam supply outages (e.g., during the cogeneration system annual maintenance); • Ability to perform aeration header inspection and repairs (an asset that is fundamental to the plant): once new electric blowers are installed, and new aeration header valves are installed, the plant would have adequate header capacity perform inspection and repairs; • Ability to address the well-documented process air leaks and have a system in place that can accommodate a reduction in airflow demands (existing steam-driven blowers could potentially surge after addressing leaks); and • Electric blowers are the industry standard, are less complex, and require significantly less maintenance compared to steam blowers. July 16, 2020 Regular Board Meeting Agenda Packet- Page 355 of 393 Page 5 of 17 ALTERNATIVES/CONSIDERATIONS This project was reviewed in detail by the Capital Improvements Executive Review Committee on June 29, 2020, which includes the General Manager, Executive Management, Engineering staff, and key representatives from Operations and Maintenance. The Board could consider several alternatives for the Phase 1 Blower Project, as follows: • Alternative 1: Status Quo - Do Nothing Alternative, which would impact the Solids Project by limiting the furnace shut down options and increasing construction risk. • Alternative 2: 1 nclude or combine the Phase 1 Blower Project with the Solids Project. Staff has considered this alternative, but the Solids Project is expected to bid later this calendar year. This alternative could delay bidding of the Solids Project into 2021. • Alternative 3: 1 nstall temporary blower systems to achieve the air demand needed for the Steam and Solids Projects, which adds significant costs. These alternatives are not recommended. FINANCIAL IMPACTS The total anticipated cost for the final design of the Electric Blower Improvements is $880,000, which includes final design and bidding services performed by HDR. The total estimated construction cost is $9,200,000, which equates to roughly 9.6% design fee for HDR. The cost ceiling of HDR's current Steam Project contract is $2,590,000. If the Board approves the final design services of $880,000, this would result in a new HDR contract value of$3,470,000, as shown in the table below. Services Fees Board Approval Original Agreement with HDR for Steam Project December 20, 2018 Current HDR Agreement $2,590,000 Proposed Amendment— Electric Blower Pending Improvements Final Design and Bidding $880,000 Services Total Contract Value with Amendment $3,470,000 Pending There are adequate funds within the current budget of the Steam Project, DP 7349 for the phasing approach including Phase 1 (Electric Blower Improvements Project), the final design services with HDR, and staff costs. The total estimated project costs for the Electric Blower Project is $12.5 million. The anticipated cash flow and project budget is as shown below: Electric Blower Improvements Budget Phase Budget- FY 2020-21 FY 2021-22 Future FYs Total to-Date Planning $0 $0 $0 $0 $0 Design 0 1,250,000 0 0 1,250,000 Construction 0 500,000 4,150,000 6,600,000 11,250,000 FY Total 1 $0 $1,750,000 F $4,150,000 $6,600,000 $12,500,000 The funding for the Electric Blower Improvements will be from the Steam Project, which will lower the total estimated project budget as described below: July 16, 2020 Regular Board Meeting Agenda Packet- Page 356 of 393 Page 6 of 17 Steam Project Budget Phase Budget-to- FY 2020-21 FY 2021-22 Future FYs Total Date Planning $2,500,000 $0 $0 $0 $2,500,000 Design $1,750,000 1,250,000 350,000 2,250,000 5,600,000 Construction $750,000 0 0 42,150,000 42,900,000 FY Total $5,000,000 $1,250,000 $350,000 1 $44,400,000 $51,000,000 The current bid environment has been very favorable to obtain lower project costs. Based on the past six (6) project bid openings, Central San has saved approximately$5.5 million compared to the engineer's estimate and project budgets. These projects include the Influent Pump Electrical Improvements; Lafayette Sewer Renovations, Phase 14; Walnut Creek Sewer Renovations, Phase 14; Lower Orinda Pump Station ASD Replacements; Plant Control System 1/0 Replacement Project- Phase 2 Secondary Process; and the Martinez Sewer Renovations, Phase 6. COMMITTEE RECOMMENDATION The Engineering and Operations Committee reviewed this item at the July 7, 2020, meeting and recommended that the subject be presented to the full Board for discussion. No other recommendation was provided. Staff has incorporated feedback from this meeting and refined the position paper as it relates to the need for the project, BCEs, and project budgets. RECOMMENDED BOARD ACTION Staff recommends the following: 1. Approve the Electric Blower Improvements Project- Phase 1 in the Fiscal Year 2020-21 Budget and funding from the Steam and Aeration Blower Systems Renovations, District Project 7349; and 2. Authorize the General Manager to amend an existing professional engineering services agreement with HDR, I nc. to include final design for the Electric Blower I mprovements Project- Phase 1 for an amount of $880,000, raising the agreement cost ceiling to $3,470,000. Strategic Plan Tie-In GOAL TWO: Environmental Stewardship Strategy 1—Achieve 100% compliance in all regulations, Strategy 2—Anticipate and prepare for potential regulatory changes GOAL THREE: Fiscal Responsibility Strategy 1—Maintain financial stability and sustainability GOAL FIVE:Infrastructure Reliability Strategy 1—Manage assets optimally to prolong their useful life, Strategy 2—Execute long-term capital renewal and replacement program, Strategy 3—Protect personnel and assets from threats and emergencies GOAL SIX. Innovation and Optimization Strategy 1—Implement the Central San Smart Initiative, Strategy 2—Improve and modernize operations through technology and efficiency measures July 16, 2020 Regular Board Meeting Agenda Packet- Page 357 of 393 Page 7 of 17 ATTACHMENTS: 1. Presentation July 16, 2020 Regular Board Meeting Agenda Packet- Page 358 of 393 Item 12. (Handout) (Updated Presentation) r 1 ELECTRIC BLOWER IMPROVEMENTS PROJECT Jean-Marc Petit, Director of Engineering and Technical Services Edgar J. Lopez, Capital Projects Division Manager - '' Nitin Goel, Senior Engineer, Special Projects and Asset Management Board Meeting July 16, 2020 Updated arA^1.9 1 DRIVERS FOR ELECTRIC BLOWER IMPROVEMENTS Provide reliable aeration air during steam or power outages at the treatment plant, especially for PG&E long outages. Allows prolonged shut down of the furnaces and associated waste heat boilers during the Solids Handling Facilities Improvement Project (Solids Project) construction. Addition of Electric Blowers lead to no stranded asset. Improved Electric Blowers is recommended under all future alternatives (short- and long-terms) for reliable redundancy. CFNTPAISAN 1 i tmrU { 'DRAFT Secondary Process •.: . ; and Aeration System 6lvConditionAssessment DRAFT Steam System _ y "` Condition Assessment I,I5ream and RetaliBlow5yslem :.�- �- Renovation PFuiect.DP 7349 si r: : l-N „:, _ Steam and Aeration Blower System t ex Renovation Proiect.DP 7349 r CONDITION AsSESSIVIENTS r li CONDUCTED • DATE F Electrical Condition Assessment �.RxW Steam and A08110 Blower System "^ Renoraliun Njecl.OP 7349 1011 AERATION BLOWERS ARE OPERATED USING STEAM SYSTEM WHICH IS VERY COMPLEX AND EXTENSIVE Sub 33 Sub Sub 34 EIIn11N1pIE`1 . Illlllllllnllll��_• Sub 73 �`y-F;� lN[I[Ill[Illllll`I { 2 ACTIVATED SLUDGE AERATION SYSTEM • The heart of the liquid treatment is the secondary activated sludge process which requires oxygen for the biological treatment. Oxygen is provided by aeration blowers. SECONDARY PROCESS SYSTEM Air for Biological Treatment Air used for • mixing for _ Channel Aeration - (Final Effluent and Mixed Liquor)and Pre- Aeration _ 23. � • 111141 CENTPAL SAN EXISTING AERATION BLOWERS y Manor Components • Steam and Electrical Two Steam Blowers/Aeration System Driven • Steam Turbines Mounts Blowers • Valves Casing • Controls Shell • Nozzle Blocks Lubrication • Bearings Vulnerabilities/Concerns y • Complexity of steam system • Inability to operate blowers in One Electric parallel Driven • Limited turndown capability Blower • Lack of redundancy during steam supply shortage • Electric blower limited air capacity and no redundancy ] 3 STEAM SYSTEM IS THE "ENGINE" THAT DRIVES THE MAIN BLOWERS 1 AND 2 • Steam assets in need of more immediate attention (approximately five years or more) include steam-driven blowers (turbines and exhaust condensers) and waste steam exchangers. Solids . Scum Centrifuge System Hot Wader Heaber Exchanger � I sampling Systart copolymer: Pumpingand Blower • • 6oilerfeedwater and Ito goilers)� ___ condenser Ele<•trie Blower 6loadown sampling � I Feed Cooling Wale Bloxre Beat geservoir rmca m pumps Steam r Eahangtt Potable Cnndt oeaeratar i sCB Turbi Makeup Water Storage Tank Oxygery HVAC gecycl� CW Re[um not W� LW rite Steam A g __ oged stag _ Turbi Euhangees W Rmbie� CW Refur rgetum NaZ Softeners A E eclric, `i+5III rani cu ngger, er ion F East&�p — - o-. L Xq Tunnelsm OAreas of Concerns Requiring More Immediate Attentions CENTPAL SAN i r a I .4 i k It Y ' II Il FURNACE BASE ISOLATION COORDINATION WITH THE SOLIDS �IyI DISTRICT PROJECT (DP) 7348 NEEDS ' 8 4 PARTIAL SHUT DOWN OF SOLIDS CONDITIONING BUILDING RECOMMENDED DURING THE CONSTRUCTION OF THE SOLIDS PROJECT 0 ter• 1 V s , r During construction of the Solids Project,furnaces,wet scrubbers, ash loading, as well as waste heater boilers will likely be shut down for prolonged time periods. 1 9 PARTIAL SHUT DOWN OF STEAM AND AERATION SYSTEMS Solids ". • C Expected to be out of service • • • sm,m CetWatee System Hot 4YatExpected to remain in service r y,; W. Heater Exchanger EmirP � 1 Sa5ystem: ---- s Copolymer. Pumping • Blower Building(P&B) g b�nerreea��aterad Ir'�I IroaaHers)- CoI— P� gle�tar Add electric blowdo do =tmpling tc Q.1 Feeds tems� CoolinHI nblowers Potable CondtRe 111 Hot Wat 9 WtHeatersMakeupWater StorageTank oq ,o HVAC cur netum trop $ A B -ng-. _ Waste Steam Frrtiangers anin� cw Return He urn az5oReneis A E ectrk, "I"±' u er on x a Main steam producers:Multiple Hearth Furnace(MHFs)Boiler,Cogen Main steam consumers:Aeration Blowers Boiler,Auxiliary Boilers(as needed) will not have sufficient steam supply during Main Landfill Gas(LFG)user:MHFs.LFG user 4 Auxiliary Boilers peak demand.Add electric blowers to during MHF shut down supplement air production Main Natural Gas(NG)users:Cogen and Auxiliary Boilers(as needed) 10 CFNTPAI SAN 5 CENTRAL SAN WILL NEED TO RELY ON BOTH STEAM AND ELECTRICAL GRID POWER DURING CONSTRUCTION OF THE SOLIDS PROJECT FOR AIR SUPPLY TO SECONDARY PROCESS kll�! YA "E� 140 R Steam M Electricity Average electrical demand of new *Existing electric blower cannot be run on standby power.New electric blowers will be powered using electric blowers is 1 to 1.2 MW existing Electric Standby Generator,would supply power under Public Safety Power Shutoff event,if sufficient steam is not available 11 CENTPAL SAN LONG-TERM ALTERNATIVE # 1 STEAM AND ELECTRIC BLOWERS • This long-term alternative would largely maintain status quo and renovate and replace parts of existing steam system, steam turbines and adding new electric blowers for added reliability Solids / 1 1Buildingr n] .•,, PPPiiiPPPiii { Sam Ceiifuge 1 +e system HotWeter �} Heager Fichanger Sampli°,yyy�„- C°polrmerf Pumping I Blower 1• - ballefe�vXerand (1� Itoeoilerq� Goodman EI.— hl°wd°wn s.mping aIkMS a Cooling Wattt Blourer E• ryeat Peurvoir ��V/\j an P""pa _��JLr1fl Exebanger potable C°nM pexralor ' Makeupw r smrsgerank °; HVAC IeW` cwwtum H°g wart,Heaters A 8 -reed i w�asreaa� �' Ftthangers � Nnm�' (W PeWm i�PNutn E., Edit&i® 1�{a+ tu. I � *New electric blowers can be powered 1 Renovate Replace1 using existing Electric Standby Generator,would supply power under Existing Steam System Public Safety Power Shutoff event,if sufficient steam is not available 12 6 LONG-TERM ALTERNATIVE # 2 ALL ELECTRIC BLOWERS WITH STEAM TURBINE ELECTRIC GENERATOR One other long-term alternative that faired better than others is adding new electric blowers & generate power with a new steam turbine generator CAW- Furnace L H at Bo e Hers All New Blowers with VFDs-Example Auxiliary Boilers Magnetic Bearing Electric Blower from SCe District dui 000 11s,per 15 MW of power produced can IF lbs.per hour by hour can produce ower reater than meet average aeration air ��� ��� steam of demands three boilers *New electric blowers can be powered using existing Electric Standby Generator,would supply power under Public Safety Power Shutoff event if sufficient steam is not available CENTRALSAN STEAM PROJECT PHASING Phase 1: Electric Blower Improvements - Refurbish and add New Electric Blowers in Pump & Blower Building and for Pre-aeration tanks. Phase 2: Complete the Evaluation of Steam System and Determine Upgrade of Existing Steam System vs. Conversion to Electric with Steam Turbine Power Generator. Phase 3: Secondary Process Improvements including Aeration Tanks, Mixed liquor division box, Secondary Clarifiers, and associated Electrical and Controls Systems. Included in Ten-Year CIP Phase 4: Rehabilitation of other elements that could be impacted if/when a Water Exchange Project was to proceed. Phase 5- Modifications and additions for Future Nutrient Removal. CFNTPAISAN ' 14 7 FOCUS AREA FOR ELECTRIC BLOWER IMPROVEMENTS • Electric Blower Improvements Project will -' also focus on Electrical Sub a =.Rp /N Tanks Aeration Station 52. Aeration Blowers sUb s2 Project will replace/improve electric and controls i r`'' -- equipment identified for R = immediate attention and will consider replacing or adding new feeders and/or motor starters to keep these ..� f lifespans insync with new ., x _,:,. . f-•��� + asset life (Electric Blowers). •II[LEGIGEIIEI[[}j Pre-Air Tanks Aeration lllllllllll!![!L . lltllllllllll9!€�I ' IDDI➢tDgllCttf�� -s - CENTRALSAN ELECTRIC BLOWER IMPROVEMENTS TOTAL ESTIMATED PROJECT COST FY 20-21, FY 21-22,AND FY 22-23 ComponentsProject $9.2 M Total Estimated Project Cost $12.5 M • : $0.5 - 1.3M 1.Furnaces are considered to be non-operational for 1 year,therefore,Central San would be relying on both reduced steam from Auxiliary and Cogen Boilers and PG&E for electricity for 1 year.Range of annual cost depending on demand. Funding from the Steam and Aeration Blower Systems Renovations,DP 7349 has a total project budget of$63 million(M)in Fiscal Year(FY)2020-21 Budget. j AN 1 8 PROJECT FUNDING Updated Slide • The total estimated project costs for the Electric Blower Improvements is$12.5 million. • Staff plans to pre-select the critical and long-lead items,such as the electric blowers and electrical gear for this project.The proposed cash flow below represents the standard time expected for equipment procurement of this size and is subject to change depending on the equipment manufacturer selected and actual installation timing.The anticipated cashflow and project budget is as shown below. • The funding for the Electric Blower Improvements will be from the Steam Project,which will lower the total estimated project budget from$63.5 million to$51 million as detailed below: Steam Project Budget ® Budget-to- 11111Date FY 2020-21 FY 2021-22 Future FYs Total $2,500,000 $0 $0 $0 $2,500,000 $1,750,000 $1,250,000 $350,000 $2,250,000 $5,600,000 $750,000 $0 $0 $42,150,000 $42,900,000 $5,000,000 $1,250,000 $350,000 $44,400,000 $51,000,000 Electric Blo.er lmpro�ements Project Budget ® Budget-to- FY 2020-21 FY 2021.22 Future FYs Total Date $0 $0 $0 $0 $0 $0 $1,250,000 $0 $0 $1,250,000 $0 $500,000 $4,150,000 $6,600,000 $11,250,000 $0 $1,750,000 $4,150,000 $6,600,000 $12,500,000 .. _.. ' 17 AGGRESSIVE SCHEDULE FOR Updated Slide ELECTRIC BLOWER IMPROVEMENTS Estimated time when the Solids Project will impact the Year 2020 Year 2021-2023 incinerators and waste heat systems is Fall 2022. July 16 Aug 31 Oct 30 Feb May-June August Oct 31 2020 2020 2020 2021 2021 2021-Sept 2022 2022 Board 10%Design Equipment Submittal Bid/Award Construction Completion Approval Submittal Procurement Documents& 30% Submittal I18 CFNTPAISAN 9 BOARD ALTERNATIVES Updated Slide The Board could consider several alternatives for the Electric Blower Improvements, as follows: Alternative 1: Status Quo-Do Nothing Alternative,which would continue to leave the treatment plant's backup power systems vulnerable to long PG&E power outages.This would also impact the Solids Project by limiting the furnace shut down options and increasing construction risk associated with the steam and waste heat systems. Alternative 2: Include or combine the Phase 1 Blower Project with the Solids Project. Staff has considered this alternative, but the Solids Project is expected to bid later this calendar year.This alternative could delay bidding of the Solids Project into 2021. Alternative 3: Install temporary blower or backup power systems to achieve the air demand needed for the Steam and Solids Projects or under long PG&E power outages,which adds significant costs. These alternatives are not recommended by staff. 119 RECOMMENDED BOARD ACTION • Approve the Electric Blower Improvements Project in the Fiscal Year 2020-21 Budget and funding from the Steam and Aeration Blower Systems Renovations, District Project 7349; and • Authorize the General Manager to amend an existing professional engineering services agreement with HDR, Inc. to include final design services in an amount not to exceed $880,000, raising the agreement cost ceiling to $3,470,000. 1 20 CFNTPAI SAN 10 QUESTIONS? 11