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Home My WebLink About07. Approve a new capital project and authorize two professional services agreements for the Solids Handling Facility Improvements, Phase 2 Page 1 of 4 Item 7. CENTRAL SAN BOARD OF DIRECTORS POSITION PAPER MEETING DATE: JANUARY 13, 2022 SUBJECT: APPROVE A NEW DISTRICT PROJECT IN THE AMOUNT OF $3.6 MILLION FOR SOLIDS HANDLING FACILITY IMPROVEMENTS, PHASE 2; FIND THAT THE RECOMMENDED AGREEMENTS ARE EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITYACT (CEQA); 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, INC., I N 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 Roger S. Bailey General Manager 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. January 13, 2022 Special Board Meeting Agenda Packet- Page 48 of 260 Page 2 of 4 BACKGROUND On September 2, 2021, the Board rejected all bids for the construction of the Solids Handling Facility Improvements, 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 the Comprehensive Wastewater Master Plan. 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 proposals were received: 1.) Brown and Caldwell (B&C) and 2.) a team consisting 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 who acquired Metcalf and Eddy, Greeley and Hansen, Jacobs who acquired CH2M Hill, and Stantec, Inc. (Stantec)who acquired MWH Global, Inc. 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 the 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. CEQA 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's 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. January 13, 2022 Special Board Meeting Agenda Packet- Page 49 of 260 Page 3 of 4 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 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 project. Staff is monitoring the remaining 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 evaluation 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, I nc. COMMITTEE RECOMMENDATION The Engineering and Operations Committee reviewed this matter at its December 14, 2021 meeting and recommended approval. RECOMMENDED BOARD ACTION Staff recommends the following Board actions: 1. Find that these agreements are exempt from CEQA; January 13, 2022 Special Board Meeting Agenda Packet- Page 50 of 260 Page 4 of 4 2. Approve a new District Project in the amount of$3.6 million for the Solids Handling Facility Improvements, Phase 2; 3. Authorize the General Manager to transfer$3.6 million from the Solids Handling Facility Improvements, Phase 1, District Project 7348 to the new Phase 2 Project; 4.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 Tie-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 January 13, 2022 Special Board Meeting Agenda Packet- Page 51 of 260