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HomeMy WebLinkAbout20.b. Committee Minutes-Engineering & Operations 10-12-2021 Page 1 of 13 Item 20.b. CENTRALSAN jdf A- hom CENTRAL CONTRA COSTA SANITARY DISTRICT October 21, 2021 TO: HONORABLE BOARD OF DIRECTORS FROM: KATIE YOUNG, SECRETARYOF THE DISTRICT SUBJECT: OCTOBER 12, 2021 - ENGINEERING & OPERATIONS COMMITTEE - MEMBER LAURITZEN AND PRESIDENT PILECKI (ALTERNATE) Attached are minutes of the above Committee meeting. ATTACHMENTS: 1. Minutes of 10-12-21 meeting 2. (Handout) Item 5.a. Presentation from meeting October 21, 2021 Regular Board Meeting Agenda Packet- Page 370 of 382 Page 2 of 13 CENTRAL SAN CENTRAL CONTRA COSTA SANITARY DISTRICT 5019 IMHOFF PLACE, MARTINEZ, CA 9A553-437 REGULAR MEETING OF THE BOARD oFDrnECTAD J.PILECKILECK CENTRAL CONTRA COSTA President SANITARY DISTRICT DAPIDR. wILLIAem President Pro Tem ENGINEERING & OPERATIONS BARBARA D.HOCKETT COMMITTEE MARIAH N.LAURITZEN MICHAEL R.MCGILL MINUTES PHONE: (925)228-9500 FAX.- (925)372-0192 Tuesday, October 12, 2021 www.centralsaii.org 11:00 a.m. (All attendees participated via videoconference) Committee: Acting Chair Tad Pilecki (alternate for Chair D. Williams) Member Mariah Lauritzen Staff. Roger S. Bailey, General Manager (joined during Item 4.a.) Katie Young, Secretary of the District Steve McDonald, Director of Operations Jean-Marc Petit, Director of Engineering and Technical Services Danea Gemmell, Planning and Development Services Division Manager (joined during Item 4.a.) Edgar Lopez, Capital Projects Division Manager Mark Wenslawski, Associate Engineer (left after Item 4.a.) Russ Leavitt, Engineering Assistant III Amelia Berumen, Assistant to the Secretary of the District 1. Notice This meeting was held virtually in accordance with the Brown Act provisions stipulated in Assembly Bill (AB) 361 and adopted by the Central San Board of Directors on September 30, 2021 via Resolution 2021-052, effective for the month of October 2021. The agenda included instructions for options in which the public could participate in the meeting. 2. Call Meeting to Order Acting Chair Pilecki called the meeting to order at 11:00 a.m. October 21, 2021 Regular Board Meeting Agenda Packet- Page 371 of 382 Page 3 of 13 Engineering & Operations Committee Minutes October 12, 2021 Page 2 3. Public Comments No public comments. 4. Items for Committee Recommendation to Board a. Review draft Position Paper to approve the Outfall Monitoring Improvements, District Project 100018 for California Environmental Quality Act (CEQA) and Regulatory Permitting purposes, including the filing of a Notice of Exemption for the project Mr. Lopez provided a broad overview of the project and some delays that were encountered. He noted the project was included in the Capital Improvement Budget (CIB) last year and that the intent of this request is focused primarily on CEQA processes. Acting Chair Pilecki recollected prior discussions about potentially relocating the discharge point and selling the current right-of-way for landfill purposes. He noted the District continues to expend funds for Outfall improvements and inclinometers. Mr. Petit acknowledged this topic and stated it remains in the long-term plan to evaluate; however, it would be an expensive endeavor to relocate the pipe. He stated there is no short-term plan to change the Outfall due to permit or cost, and that relocating could mean stricter discharge permit requirements because it would be considered a shallow discharge and likely be more expensive overall. Mr. Petit indicated that Central San used the creek discharge during the recent Outfall Piping Renovation project under some terms of the current discharge permit, but only as a temporary measure. Member Lauritzen inquired about the temporary discharge permit and asked whether additional treatment was required. Mr. Petit replied the only requirement was to monitor the discharge both up and down stream, but no additional treatment was necessary. In response to how long the temporary discharge occurred, Mr. Wenslawski confirmed it was a four-month duration that began in early July and ceased by early October. Mr. Wenslawski also clarified that this Outfall project is much smaller than the last Outfall Improvements project and there would be no discharge through Basin B. COMMITTEE ACTION: Recommended Board approval. October 21, 2021 Regular Board Meeting Agenda Packet- Page 372 of 382 Page 4 of 13 Engineering & Operations Committee Minutes October 12, 2021 Page 3 5. Other Items a.* Receive a verbal update on the State Revolving Fund (SRF) Loan status for capital improvements Mr. Petit reviewed the attached handout presentation. Although the Solids Handling Facility Improvements (Solids Project) is not moving forward at the overall $260 million total project cost, staff intends to continue with certain elements of that project to maintain functionality of the Solids Conditioning Building. In order to keep the facility operating properly under the air permit for at least the next ten years, staff plans to repackage some of the essential project elements into a smaller project (e.g., installation of wet scrubbers, centrifuges and cake pumps; hearth repairs and burner controls). Funds will be needed to complete these necessary tasks; therefore, it is recommended to move forward with the SRF loan agreement. Mr. Petit mentioned a Request for Proposal was recently released to the consultant community to obtain assistance with the long-term plan and predesign for biosolids handling and disposal facilities, including anaerobic digesters, and potentially decommissioning the furnaces in the next decade. A few weeks ago, staff received the initial$173.1 million SRF Loan agreement for execution. Staff contacted the State Water Board about the current status of the Solids Project and the intension to proceed forward with a smaller project. The state representatives advised to sign the loan agreement and amend the new loan amount, when bids for the smaller project are known, as part of the paperwork that is required to finalize the loan. Staff noted they also inquired about the potential installation of digesters as part of the repackage effort. The state declined since it was not a part of the original Solids Project. Mr. Bailey clarified that although the Board authorized him to sign the loan documents, he thought it was important to advise that even though the Solids Project bids were rejected, staff intends to continue with the execution of the loan in order to address critical elements of the Solids Project mentioned and make use of the loan advantages. Ms. Gemmell stated that the loan sequence has followed a traditional process, which is now addressing a new reduced project. The amount would be determined at time of bid and the final budget amount would October 21, 2021 Regular Board Meeting Agenda Packet- Page 373 of 382 Page 5 of 13 Engineering & Operations Committee Minutes October 12, 2021 Page 4 need to be submitted to lock-in the amount, which will be less than the pre-approved amount. Member Lauritzen inquired about the availability of the loan should bids come in high once again. Mr. Petit replied that the state prefers a single project with a single contractor for ease of accounting and reconciliation. With the intent to repackage at a smaller scale, he opined it would likely garner better interest and competitive pricing. Ms. Gemmell added that, although unlikely, should bids come in high and were reasonably justified, a higher amount could be sought. Acting Chair Pilecki inquired about amending the cashflow for the CIB figures shown on slide 5. When the Finance Committee reviews expenditures, he does not want to see a disparity with the lower projected numbers in order to meet the CIB 90% spending goal. Mr. Petit confirmed the budget is representative of today's figures and staff is working to rebalance the cash flow. Mr. Lopez clarified that the repackage effort would likely be about $80 million overall; thus, there will not be expenditures of$21 million this year. Timing of the bid repackage and outcome plays into the rebalance as well. Ms. Gemmell responded to other questions posed by Acting Chair Pilecki. She said that of the $20 million expended to date on the Solids Project, about $16 million could be reimbursed for previous planning and design costs on the Solids Project, via the SRF loan, on top of the total costs of the repackage effort. Lastly, she confirmed staff would resubmit for an additional SRF loan for digesters if moved forward. COMMITTEE ACTION: Received the information. b. Receive update on major construction projects within the Fiscal Year 2021-22 Capital Improvement Budget Mr. Lopez reviewed the information provided in the agenda materials that focuses on larger construction projects to provide an awareness of major work during the year. The following items denote updates of particular interest.- Filter nterest.Filter Plant and Clearwell Improvements-Phase 1A: Although there has been some delay with receipt of electrical gear, there has been no scope delay; the project is expected to stay on target. Secondly, the dirt excavated from the basin where the new Clearwells were erected was repurposed near the construction site to raise the levee over Basin C, which runs parallel to Pacheco Slough. The concept is to raise the levee to meet current standards for flooding and focus on sea October 21, 2021 Regular Board Meeting Agenda Packet- Page 374 of 382 Page 6 of 13 Engineering & Operations Committee Minutes October 12, 2021 Page 5 level rise. This work already provided a significant difference and was able to be done ahead of the Flood Control Project (currently at 65% design). Acting Chair Pilecki applauded staff for the great idea to reuse good fill and address long standing concerns of the Pacheco Slough area. Pump Station Upgrades-Phase 1: Mr. Lopez noted that with the installation of new submersible pumps and grinders, it has already made a significant difference. Staff has not had to de-rag or de-clog the pumps as normally encountered this time of year. Mr. Lopez added that a large portion of work was attributed to electrical gear, which was ordered and purchased well before shortages occurred that have been experienced of late on other projects. Lastly, Mr. Lopez applauded the efforts of the contractor and electrical sub-contractor. This is a very difficult job and both contractors have provided the resources to keep the project moving forward. Collection System Renovations: Mr. Lopez reviewed the list of projects completed by staff, especially during the challenges of the pandemic, city paving coordination, and splitting projects for the wet weather season. It was a notable effort by staff which does inhouse design and construction management. Member Lauritzen gave praise to staff on getting projects to completion and thanked them for all the hard work. Pacheco Boulevard Sewer Replacement: Although a smaller project, this particular task was brought before the Board due to shared side sewer issues. The project is now complete which dealt with a lot of older utilities and concrete used in the roadways. It was a challenge for staff to complete, but no major disruptions were encountered and service was successfully installed to current standards. Influent Pump Electrical Improvements: This multi-year project, which has faced some challenges, is on target to meet schedule milestones this year. Mr. Lopez noted the contractor has been excellent, provides solutions, and had worked well with staff and the challenges of constructing within a working facility. In addition to equipment and wet well work, new walkways and gates were also installed. Acting Chair Pilecki complimented staff with a cleaver solution on the gate installation which likely saved the District millions of dollars. Electric Blower Improvements and Pipin_g Renovations. The contractor on the project mentioned above is also the contractor for this critical project. Mr. Lopez noted this work is not a stranded asset situation. A well thought out and planned project; the contractor is already planning October 21, 2021 Regular Board Meeting Agenda Packet- Page 375 of 382 Page 7 of 13 Engineering & Operations Committee Minutes October 12, 2021 Page 6 on their installation of the blowers that will likely begin witness testing in December. The piping renovation piece of the project, which addresses various areas throughout the plant, is a critical project for Operations. The project is moving forward on schedule. COMMITTEE ACTION: Received the update. C. Receive Capital Projects Division Quarterly Report (July to September) on capital projects, active consultant contracts, change order log, and schedule of bids and awards Mr. Lopez noted the bid schedule report shows many intentionally reflected to-be-determined (TBD) dates in order to provide staff an opportunity to reevaluate future capital project estimates and status due to challenges in the construction bid market. COMMITTEE ACTION: Received the report. 6. Announcements None. 7. Suggestions for Future Agenda Items a. Receive list of upcoming agenda items and provide suggestions for any other future agenda items COMMITTEE ACTION: Received the list. 8. Future Scheduled Meetings Tuesday, November 9, 2021 at 11:00 a.m. Tuesday, December 14, 2021 at 11:00 a.m. 9. Adjournment— at 11:52 a.m. * Attachment October 21, 2021 Regular Board Meeting Agenda Packet- Page 376 of 382 Page 8 of 13 Item 5.a. (Handout) J J �n STATE REVOLVING FUND (SRF) LOAN STATUS FOR CAPITAL IMPROVEMENTS SOLIDS HANDLING FACILITY IMPROVEMENTS Engineering & Operations Committee October 12, 2021 Jean-Marc Petit, P.E. Director of Engineering and Technical Services I SOLIDS HANDLING FACILITY IMPROVEMENTS TARGETED SCOPE FOR SOLIDS PROJECT 1 2 4 6 a . MODIFY MULTIPLE AIR POLLUTION NEW ASH ELECTRICAL CENTRIFUGE SOLIDS CONDITIONING M EXISTING ODIFY HEARTH CONTROL HANDLING SYSTEMS DEWATERING BUILDING RETROFIT SLUDGE FURNACES (NEW WET AND LOADOUT (LIMITED) SYSTEM (LIMITED) BLENDING/ (SOME HEARTH SCRUBBERS) STORAGE REPLACEMENT) Z J x 1 October 21, 2021 Regular Board Meeting Agenda Packet- Page 377 of 382 Page 9 of 13 INSTALLATION OF NEW WET SCRUBBERS FOR REGULATORY COMPLIANCE ll 00 ' - r ■ G a Ig RE-EVALUATE LONG-TERM PATH FOR SOLIDS HANDLING AT CENTRAL SAN Phase 1: Proceeding with some key elements of the Phase 2: Re-Evaluate Long- Solids Project Term Solids Handling • Wet Scrubbers Hiring Consultant to • Centrifuges Evaluate long-term and Cake and Biosolids, including Pumps Adding Anaerobic • Refurbish Digestion and Multiple Hearth Biogas Co-Gen Furnaces Hearth and Burner Controls * I a CENTRALSAN 2 October 21, 2021 Regular Board Meeting Agenda Packet- Page 378 of 382 Page 10 of 13 FISCAL YEAR (FY) 2021 -22 CAPITAL IMPROVEMENT BUDGET Solids Handling Facility Improvements Budget & Budget-to- FY 2021-22 FY 2022-23 Future FYs Total Date $1,000,000 $- $- $- $1,000,000 12,090,000 - - - 12,090,000 Construction 6,894,000 21,000,000 45,000,000 98,000,000 170,894,000 $19,984,000 $21,000,000 $45,000,000 $98,000,000 $183,894,000 qw' .71 CENTRALSAN 5 STANDARD SRF LOAN SEQUENCE Sign Initial SRF Bid Project . . Agreement Contractor Submit Final • Loan Budget Amount Amendment Finalized Package - I CENTRALSAN � 6 ac 3 October 21, 2021 Regular Board Meeting Agenda Packet- Page 379 of 382 Page 11 of 13 AMENDED CENTRAL SAN SRF LOAN SEQUENCE "ed Award to Budget"($�$1711M) Contract Reimbursement Submit Final of Construction 0 Amendment Payments (LowerAmount) Package § ;� ` 7 NEXT STEPS FOR SRF LOAN APPROVAL OF RESOLUTION • Notifications to the public in compliance with Government Code 5852.1 •A declaration of the applicant's authority to enter into the agreement •A broad-based blessing of the agreement as being valid and enforceable in accordance with its terms •Authorization and direction to the authorized representative and other relevant officials to enter into the agreement and perform all acts necessary and proper for executing the agreement and carrying out its terms 8 -- 4 October 21, 2021 Regular Board Meeting Agenda Packet- Page 380 of 382 Page 12 of 13 QUESTIONS? Alm 9 CENTRALSAN EXISTING SOLIDS HANDLING INCINERATION WITH MULTIPLE HEARTH FURNACES Energy&Waste Emissions Heat to Steam hS.' Inventory/Controls END USE 'AL OPTIONS THICKENING DEWATERING LNGoMLO Im VW5 •• . . BLENDING INCINERATION INERTASHPr = By S.bl.puality: Stable Ste le -St°ragerotan Issue ® New Technology , No Market • NG:Natural Gas � Ex0.9Te1hno1o9y °on" • LFG:Landfill Gas Newer DISPOSAL: INERT ASH 10 5 October 21, 2021 Regular Board Meeting Agenda Packet- Page 381 of 382 Page 13 of 13 ADD ANAEROBIC DIGESTION WITH INCINERATION: (CWMP Solids Phase 2) Electric Power for Emissions Electric Inventory/ControlsEND USE Blowers OPTIONS I THICKENING = DEWATERING STABILIZATION = INCINERATION INERT ASH eyProeumoa.iity: same deme -Smrage rut an Issue ® New Technology ' No Market DG:Digester Gas(Methane) Existing Technology `omm°" Newer f DISPOSAL: INERT ASH (CURRENT PRACTICE) PROGRESSION OF ANAEROBIC DIGESTION WITH THERMAL HYDROLYSIS or COMPOST or ELIMINATE INCINERATORS (CWMP Solids Phase 3) Electric ns Power for �°°°°' t 4*&Waste ' Blowers _ END USE THICKENING DEWATERING 0 111TAB!ILVATION = CLASS A CAKE Proauetna.iit, -mw°moearere amm°mam°r -30h eolies I- PRE-DEWATERING THERMAL HYDROLYSIS MEETS 503 REQUIREMENTS: ® New Technology NO Market PR ALT 1(Time& Existing Technology , Common Temperature) Newer -VAR OPT 1(38%VSR) CLASS "A" CAKE OR GRANULES/PELLETS THERMAL HYDROLYSIS 6 October 21, 2021 Regular Board Meeting Agenda Packet- Page 382 of 382