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HomeMy WebLinkAbout04.a. Review draft Position Paper to approve a new District Project in the amount of $3.6 million for solids handling facility improvements, phase 2; and authorize the general manager to transfer $3.6 million from the Solids Handling Facility ImprovementPage 1 of 18 Item 4.a. DCENTRALSAN MEETING DATE: DECEMBER 14, 2021 BOARD OF DIRECTORS POSITION PAPER DRAFT SUBJECT: REVIEW DRAFT POSITION PAPER TO APPROVE A NEW DISTRICT PROJECT IN THE AMOUNT OF $3.6 MILLION FOR SOLIDS HANDLING FACILITY IMPROVEMENTS, PHASE 2; AND AUTHORIZE THE GENERAL MANAGER TO: TRANSFER $3.6 MILLION FROM THE SOLIDS HANDLING FACILITY IMPROVEMENTS, PHASE 1 TO THE NEW PROJECT; AND EXECUTE TWO PROFESSIONAL ENGINEERING SERVICES AGREEMENTS TO EVALUATE AND PLAN FOR LONG-TERM SOLIDS HANDLING AND DISPOSAL WITH: 1) BROWN AND CALDWELL, I N AN AMOUNT NOT TO EXCEED $1.8 MILLION, AND 2) CAROLLO ENGINEERS, IN AN AMOUNT NOT TO EXCEED $250,000 SUBMITTED BY: INITIATING DEPARTMENT: NITIN GOEL, SENIOR ENGINEER ENGINEERING AND TECHNICAL SERVICES- PDS-ASSET MANAGEMENT REVIEWED BY: EDGAR J. LOPEZ, CAPITAL PROJECTS DIVISION MANAGER DANEA GEMMELL, PLANNING AND DEVELOPMENT SERVICES DIVISION MANAGER JEAN-MARC PETIT, DIRECTOR OF ENGINEERING AND TECHNICAL SERVICES ISSUE The Board of Directors' (Board) authorization is required for the General Manager to execute a professional engineering services agreement in an amount greater than $200,000. Board authorization is also required to initiate a new capital project greater than $200,000 and to transfer funds between projects greater than $500,000. BACKGROUND On September 2, 2021, the Board rejected all bids for the construction of the Solids Handling Facility I mprovements, District Project 7348 (Phase 1) due to the excessive costs of the bids received and overall project costs. Thereafter, staff proposed moving forward with a reduced scope for Phase 1 and also to re-evaluate the long-term Solids Handling and Disposal plan as developed in 2017 under December 14, 2021 EOPS Regular Committee Meeting Agenda Packet - Page 4 of 23 Page 2 of 18 the Comprehensive Waster Master Plan (CWMP). A copy of the presentation used at the June 16, 2016, Board workshop on Solids Process Alternative Analysis CW MP has been provided as reference in Attachment 2. On November 18, 2021, the Board authorized the General Manager to execute engineering agreements to repackage and bid the urgent and critical elements of the Phase 1 project, which will include replacement of the wet air scrubbers for the incinerators, four centrifuges and cake pumps, improvements to incinerator burners, and other miscellaneous equipment associated with the systems. This reduced scope project will be named the Solids Handling Facility Improvements, Phase 1 A. At the September 2, 2021 Board meeting, staff made a recommendation to proceed with re-evaluating the long-term solids handling facility plan i.e., Solids Handling Facility Improvements Phase 2 (Phase 2). Phase 2 will evaluate and plan the optimal alternative(s) for long-term solids handling and disposal which may include, but not limited to, new solids processing and energy recovery facilities, anaerobic digesters, new biogas cogeneration system, fluidized bed incinerators, or other thermal treatment technologies. Staff issued a Request for Proposal (RFP) for professional engineering services to evaluate these potential alternatives and find the best long-term biosolids facilities plan for Central San. On September 21, 2021, two (2) proposals were received: 1.) Brown and Caldwell (B&C) and 2.) a team of Carollo Engineers, Inc. (Carollo), HDR, Inc.(HDR), and GHD, Inc. (GHD). After conducting interviews, B&C was selected as the lead consultant to assist Central San in the planning of the Phase 2 project. In addition, Carollo will also be participating, leading the Peer review with HDR to assist in the task associated with integration with the Steam System Evaluation, and GHD to aid with existing Furnace or thermal process evaluation. Being that the evaluation and resulting decisions of the long-term Solids Handling Facilities at Central San is critical, it will require the views, perspectives, and options of many experts in the fields associated with these types of facilities. This will also require an in depth evaluation of integration of new facilities with the existing incinerators, co -generation, and steam systems. Therefore, included in the RFP was hiring additional experts or firms to assist in Peer Review or assess alternative project delivery methods. Four proposals were received on November 3, 2021 from AECOM, Greeley and Hansen, Jacobs (formally C H2M Hill), and Stantec, Inc (Stantec). All firms were selected to participate on expert panels for the overall peer review. Jacobs was selected to perform alternate delivery evaluation and will also be assisting with the Peer Review. All viable and proven technologies for treatment and disposal of the solids, energy, biogas production, and side stream treatment will be considered as a part of evaluation process. Staff will work with B&C, Carollo, and the other experts identified above to determine the best long-term solution for Central San and address the many questions or possibilities for future solids handling and disposal at Central San. California Environmental Quality Act Staff has concluded that this action is exempt from the California Environmental Quality Act (CEQA) under Central San's CEQA Guidelines Section 15262 since it allows 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. Approval of this action will establish the Board of Directors' independent finding that these agreements are exempt from CEQA. Central San will conduct an environmental evaluation of any environmental -altering, physical project that is proposed in the future as a result of these studies to determine the need for any additional CEQA documentation. December 14, 2021 EOPS Regular Committee Meeting Agenda Packet - Page 5 of 23 Page 3 of 18 ALTERNATIVES/CONSIDERATIONS Alternative 1 - Do not perform the Phase 2 project now. This alternative is not recommended. Continuing with the current solids process is a significant capital expense, as represented in the bids received under the Phase 1 Project. Staff is recommending to re -confirm or possibly determine another path moving forward to better use capital funding or transition into other future long-term solid processes. The evaluation and planning methods will provide an optimal road map for Central San for decades to come, and update the ten-year Capital Improvement Plan. Alternative 2 - Another alternative would be to select only a single firm to provide the services. This option was considered by staff but ultimately determined to not be an optimal approach for this project. It is recommended that the road map for the Central San should be vetted out by many industry experts. The selected firms are bringing specific specialization and experience to the various scope or technology items. This alternative is not recommended. Alternative 3 - Continue with the remaining work that has been postponed under the Phase 1. Staff is monitoring items and will address any future work on an as -needed basis. B&C could also consider the alternative or timing of a Phase 1 B Project, which includes other components that should be considered moving forward in the long-term plan. This alternative will be considered as part of the business case evaluations under the Phase 2 project. FINANCIAL IMPACTS The total estimated cost for the planning of the Solids Handling Facility Improvements, Phase 2 is estimated at $3.6 million, which includes consultant services for $2.8 million and staff time of $800,000. The Phase 1 Project (District Project 7348) is listed on page 236 of the Fiscal Year 2021-22 Central San Budget and has sufficient funds to initiate the Phase 2 project. A transfer of $3.6 million from Phase 1 to Phase 2 will be completed upon Board approval of the new project and transfer amount. Several agreements are within the General Managers authority (less than $200,000) and range from $50,000 - $195,000 and include the following engineering firms: • AECOM • GHD, Inc. • Greeley and Hansen • HDR, Inc. • Jacobs • Stantec COMMITTEE RECOMMENDATION The Engineering and Operations Committee reviewed this matter at its December 14, 2021 meeting and recommended RECOMMENDED BOARD ACTION Staff recommends the following Board actions: 1. Approve a new District project in the amount of $3.6 million for the Solids Handling Facility Improvements, Phase 2; December 14, 2021 EOPS Regular Committee Meeting Agenda Packet - Page 6 of 23 Page 4 of 18 2. Authorize the General Manager to transfer $3.6 million from the Solids Handling Facility Phase 1, District Project 7348 to new Phase 2 Project; 3. Authorize the General Manager to execute professional engineering services agreements to evaluate and plan for long-term solids handling and disposal with: • Brown and Caldwell, in an amount not to exceed $1.8 million; and • Carollo Engineers, Inc., in an amount not to exceed $250,000. Strategic Plan re -In GOAL TWO: Environmental Stewardship Strategy 1—Achieve 100% compliance in all regulations, Strategy 2—Anticipate and prepare for potential regulatory changes, Strategy 4 - Reduce reliance on non-renewable energy GOAL FIVE: Infrastructure Reliability Strategy 1— Manage assets optimally to prolong their useful life, Strategy 2 — Execute long-term capital renewal and replacement program ATTACHMENTS: 1. Presentation 2. CWMP Board Workshop Presentation 06-16-16 December 14, 2021 EOPS Regular Committee Meeting Agenda Packet - Page 7 of 23 Page 5 of 18 ATTACHMENT 1 LONG-TERM SOLIDS FACILITIES PLAN PROJECT .LEAN-MARC PETIT, DIRECTOR OF ENGINEERING & TECHNICAL SERVICES NITIN GOEL, SENIOR ENGINEER, SPECIAL PROJECTS & ASSET MANAGEMENT GROUP ENGINEERING & OPERATIONS COMMITTEE MEETING DECEMBER 14, 2021 1 2 December 14, 2021 EOPS Regular Committee Meeting Agenda Packet - Page 8 of 23 1 Page 6 of 18 PROJECT DESCRIPTION • This project will evaluate, plan, and update the Long-term Solids Handling, Treatment and Disposal Facilities as outlined in the Comprehensive Wastewater Master Plan (CWMP) and update the Ten -Year Capital Improvement Plan (CIP). • It will review and evaluate, the optimal alternative(s) for long-term solids handling and disposal which may include new solids processing and energy recovery facilities such as anaerobic digesters and a new biogas cogeneration (Co-gen), or other thermal treatment processes. • It will also evaluate this plan in concert with the Solids Handling Improvement Project, Phase 1A currently being redesigned. 3 PROJECT GOALS • Review the various technologies for treatment and disposal of solids. • With this project, Central San needs to determine the following: • How to best transition from current solids handling and disposal methods to any proposed approach? • What are the viable long-term options for disposal of solids: Class B or Class A, or other such as ash or char? • Diversified disposal of solids, and address issues associated with per- and polyfluoroalkyl substances (PFAS) on land disposal? • Evaluate viable regional option for treatment and disposal that would benefit all parties? • Many other questions. 4 December 14, 2021 EOPS Regular Committee Meeting Agenda Packet - Page 9 of 23 2 Page 7 of 18 ROADMAP FOR LONG-TERM SOLIDS FACILITIES PLAN UPDATE 8. Prepare Updated Technical Memorandum 19. Evaluate Transitionin Solids and EnergyPlans Related CWMP for the Selected Alternative(s) 5 CURRENT SOLIDS FINANCIAL BACKGROUND NEEDS TO UPDATED • CWMP 2017 • Current Fiscal Year 2021-22 CIB and Ten -Year CIP: • Solids Phase 1: Improvements to the Solids Handling Facilities, District Project (DP) 7348: (Not Awarded). Phase 1A under redesign. • Steam System Improvements, DP 7349: $35.4 M • MHF Replacement, DP 100009: $1 M • Replace Co -Gen System: $25.4 M • Other Solids Facilities Improvement Projects: e.g.; Dissolved Air Flotation Thickener (DAFT): $2.4 M • Future Solids Related Projects beyond Ten -Year: • Solids Phase 2: Add two Anaerobic Digesters with Digester Gas Co -Gen: $126.8 M • Solids Phase 3: Add two additional Anaerobic Digesters and a Fluidized bed incinerator (and abandon existing MHFs): $175.4 M 1XV December 14, 2021 EOPS Regular Committee Meeting Agenda Packet - Page 10 of 23 3 Page 8 of 18 RE-EVALUATE LONG-TERM PATH FOR SOLIDS HANDLING AT CENTRAL SAN Path 1: Proceed with Path 2: Re -Evaluate Long - Reduced Scope for Phase 1A Term Solids Handling and Disposal - Solids Phase 2 Refurbish MHFs, Replace Re -Evaluate Long - Centrifuges, Cake + Term Solids Handling Pumps and Wet and Disposal Scrubbers Alternatives Facilities Plan Update "` 4_ . Proceeding with both paths i% STAFF HAS SELECTED THE FOLLOWING TEAM TO CONDUCT THE LONG-TERM SOLIDS FACILITIES PLAN The following engineering consulting firms have been selected to evaluate and plan for the long-term the elements of the Solids Phase 2 Project: • Brown and Caldwell • Carollo Engineers Staff is planning to issue the following contracts under staff authority: • AECOM • GHD • Greeley and Hansen • HDR • Jacobs • Stantec I 8I December 14, 2021 EOPS Regular Committee Meeting Agenda Packet - Page 11 of 23 4 Page 9 of 18 RECOMMENDED BOARD ACTION Staff recommends the following Board actions: 1. Approve a new District project in the amount of $3.6 million for the Solids Handling Facility Improvements, Phase 2; 2. Authorize the General Manager to transfer $3.6 million from the Solids Handling Facility Phase 1, District Project 7348 to new Phase 2 Project; 3. Authorize the General Manager to execute professional engineering services agreements to evaluate and plan for long-term solids handling and disposal with: • Brown and Caldwell, in an amount not to exceed $1.8 million; and • Carollo Engineers, Inc., in an amount not to exceed $250,000. QUESTIONS? 10 10 December 14, 2021 EOPS Regular Committee Meeting Agenda Packet - Page 12 of 23 5 Page 10 of 18 Attachment 2 -qr LONG-TERM BIOSOLIDS FACILITIES PLAN PROJECT CWMP PRESENTATION JUNE 16, 2016 ENGINEERING & OPERATIONS COMMITTEE MEETING DECEMBER 14, 2021 COMPREHENSIVE WASTEWATER MASTER PLAN -"° Board Workshop swo+ Part A Treatment Plant Master Plan Update June 16, 2016 December 14, 2021 EOPS Regular Committee Meeting Agenda Packet - Page 13 of 23 1 Page 11 of 18 Attachment 2 PHASED APPROACH TO ADDRESS FURNACE CAPACITY LIMITATIONS Capacity/Regulatory Testing Pilot New Wet Scrubber Lime Reduction Testing Storage and Mixing Improvements Replace Centrifuges Pilot Innovative Technologies Increase Permitted Capacity Long -Term Split Stream Demonstration Facility Implement Nutrient Removal Early Implementation of Digesters with Incineration Assess Feasibility of Permit Increase 0-5 Improved Regulatory Reliablility 0-5 Reduce Load to MHF 0-5 (delays trigger by >3 years) Improve Reliable Solids Storage 0-5 Capacity/Addresses Peak Day Capacity Improve Reliable MHF Capacity 0-5 Assess Feasibility of Split Solids Handling 0-5 Depends on Testing (delays trigger by -5 years) 5 10 Use Innovative Split Stream Technology 10 20 to Reduce MHF Load Reduces Solids Load 10-20 (delays trigger by -5 years) New System Sized for Projected Loads 10-20 SOLIDS PROCESS ALTERNATIVE ANALYSIS PRESENTATION FROM JUNE 169 2016 BOARD WORKSHOP 3 December 14, 2021 EOPS Regular Committee Meeting Agenda Packet - Page 14 of 23 2 Page 12 of 18 Attachment 2 SOLIDS HANDLING GOALS • Identify Ideal Alternative for Replacing Multiple Hearth Furnaces when Replacement is Required • Timing Based on Condition: >20 Years • Timing Based on Regulatory & Capacity Drivers: Likely > 10 Years • Identify Costs & Footprint Required • Improve Energy Efficiency • Reduce Greenhouse Gas Emissions • Triple Bottom Line Plus POTENTIAL SOLIDS HANDLING ALTERNATIVES 1. Keep Existing MHFs & Replace Ash System & Air Pollution Control Devices 2. Replace MHFs with Fluidized Bed Incinerators 3. Add Digesters Upstream of Incineration 4. Replace MHFs w/ Digestion & Biosolids Disposal Program 5. Consider Alternative Thermal Processes ➢ Gasification ➢ Pyrolysis ➢ Others 5 61 December 14, 2021 EOPS Regular Committee Meeting Agenda Packet - Page 15 of 23 3 Page 13 of 18 Attachment 2 SOLIDS STREAM NARROWED TO BASELINE PLUS THREE ALTERNATIVES :ernative 'Solids Processing nergy production ORC (After Conversion To Electric Blowers) Baseline KeepMHFs +Gas Turbine 51 Transition from MHF to FBI ORC (After Conversion To Electric Blowers) + Gas Turbine 52 AD + Transition from MHF to ORC (after conversion to electric blowers) + FBI Gas Turbine + FOG Addition to AD's 53 Transition to all AD + Gas Turbine + FOG Addition to AD's Thermal Hydrolysis 7 ALTERNATIVE S1 LAYOUT CONVERT TO FLUIDIZED BED INCINERATION Qemonstration Project Gas Conditioning System +'S Emergency Sludge ea Load Out Facility • �' Ash Thickeners �& A FBIs, ORC, Gas Turbine, A and Vacuum Filter in ' A existing solids building Blend Tank Wet Weather Solids Storage • Tank.' December 14, 2021 EOPS Regular Committee Meeting Agenda Packet - Page 16 of 23 4 Page 14 of 18 Attachment 2 ALTERNATIVE S2 LAYOUT DIGESTION WITH FLUIDIZED BED INCINERATION oil M ~� Sidestream Treatment Solids Demonstration I Project Gas r, Conditioning �. System • Blend Tank Ash JThickeners w FOG Receiving Station Gas Storage Gas Treatmer a Anaerobic Digestion Process Emergency Sludge Load Out Facility DAFT Tank (t) MEN Dryer, FBIs, ORC, Gas Turbine, and Vacuum Filter in exsiting solids building 3r// . I ALTERNATIVE S3 LAYOUT — ALL DIGESTION 1 December 14, 2021 EOPS Regular Committee Meeting Agenda Packet - Page 17 of 23 5 Page 15 of 18 Attachment 2 CHALLENGES OF BIOSOLIDS DISPOSAL pRF.f�pN [ tlF, oa.w 9Eefu� Of CeuMy �Mlrun[aa I i.w•• wue.A Nam, � � 9frt o�Af LMQ+�YWKkq� R�dld 9en � � uenm Cw.6 f� Elan AP�b^ Abner F�pi�vrCldriry farhd � fw ^. wr.iwmw.n�o fro REVM,4 r.vli°r ate' n1p{ iuxa MbyCO Figuru 11.4 SEulus ul Biosufds Land AppFral'un Didirwnas 6y CuurM1y REGULATIONS ARE EXPECTED TO BAN SOLIDS DISPOSAL AND USE OF BIOSOLIDS FOR ALTERNATE DAILY COVER (ADC) AT LANDFILLS BY 2025 • By 2020, AB 341 will require 75% reduction of organic solid waste: either reduced at the source, recycled, or composted • By 2020, AB 1594 will disallow green waste to qualify for diversion credit when used as ADC at a landfill • By 2025, Short Lived Climate Pollutant Reduction Strategy will likely lead to elimination of organic waste (biosolids) from landfills 12 December 14, 2021 EOPS Regular Committee Meeting Agenda Packet - Page 18 of 23 6 Page 16 of 18 Attachment 2 CONSIDERATIONS FOR BIOSOLIDS DISPOSAL IN THE FUTURE • Landfill disposal should not be considered a viable solution • Beneficial use/land disposal will require treatment of biosolids to Class A standards • There is be more competition from other agencies for disposing biosolids in available sites, leading to higher costs and risks 13 COMPARING SOLIDS HANDLING ALTERNATIVES Reduces Energy Required & Cannot Use Co -Digestion Greenhouse Gas Emissions to Reduce Plant Energy Alternative S1 Compared to Existing MHF Needs Fluidized Bed Furnaces Highest Energy & $350 Does Not Require Biosolids Greenhouse Gas Incineration Disposal Emissions Compared To Familiarity with Operation Other Alternatives Smallest Footprint Lowest Capital Cost Requires More Footprint Alternative S2 Significantly Reduces Energy than Incineration Only Required & Greenhouse Gas Multiple Processes Adds Fluidized Bed Emissions Some Complicatio n as $340 Incineration/ Anaerobic Does Not Require Biosolids compared to existing Digestion Disposal operation Cogeneration Opportunity Multiple Solids Disposal Options Highest Capital Cost More New Unit Processes Least Energy Required Requires Biosolids Alternative S3 Lowest Greenhouse Gas Disposal Program $380 Anaerobic Digestion Emissions Increased Odor Control Cogeneration Opportunity Significant Truck Traffic Produces Class A Product Most Chemicals Required December 14, 2021 EOPS Regular Committee Meeting Agenda Packet - Page 19 of 23 Page 17 of 18 Attachment 2 PRELIMINARY SOLIDS STREAM TBL+ RESULTS ■T-1: Provide Reliability and Performance E2 ■ T-2: Process Efficiency El ■ Fl: Minimize Capital Costs E ■ F2: Minimize Life -cycle Costs. 52 El El ■ S-1: Protect Public Health and Safety S1 52 52 E2 E1 ■ S2: Maintain Good Public Relations Sl S1 S2 F2 ■ E-1 Minimize Impact on Local Environment F2 F2 S1 F1 IIIE-2: Minimize impact on Global Environment NF,F2FT T1 Ideal Alternative Alt 1- FBIs Alt 2 - Digestion + Alt 3 - Digestion Dryer + FBI Only ' 15 MINIMIZING GREENHOUSE GAS EMISSIONS 30000 California Cap and Trade Threshold is>_25,000 MT of COze Anthropogenic Stationary Combustion Emissions 25000 20000 0 U `o 0 15000 7 10000 5000 0 Current Projected (MHF) Alternative 1 Alternative 2 Alternative 3 a Natural Gas Combustion ■ Digester Biogas Combustion (CH4 & N20) ❑Landfill Biogas Combustion (CH4 & N20) ❑Incineration (CH4 & N20) ' 16 December 14, 2021 EOPS Regular Committee Meeting Agenda Packet - Page 20 of 23 8 Page 18 of 18 Attachment 2 MASTER PLAN RECOMMENDATIONS - 6 • Implement All 0-5 year Studies and Projects: • Implement Recommended Mixing & Storage Tank Improvements to Handle Peak Day Loads • Replace Centrifuges and Cake Pumps • Initiate Lime Reduction & Capacity Testing As Soon As Possible to Confirm Capacity Trigger Timing & Feasibility • Pilot Innovative Solids Technologies • Seismic Improvements to Solids Handling Building • Wet scrubber pilot and replacement 17 MASTER PLAN RECOMMENDATIONS - 6 (CONTINUED) • Use Alternative S2: Digestion Followed By Fluidized Bed Incineration As The Long-term Replacement Of The Multiple Hearth Furnaces • Continue With Ash Disposal • Re -Evaluating These Recommendations in —5 Years After Further Piloting is Complete & Regulatory Timing is More Clear • Include Placeholder in CIP for Early Implementation of two Anaerobic Digesters (-10 years) & Related Support Equipment • Include Placeholder in CIP for Ultimate Implementation of Remaining 2 Digesters & One Fluidized Bed Incinerator (10-20 years) 1011_17�lh 18 December 14, 2021 EOPS Regular Committee Meeting Agenda Packet - Page 21 of 23 9