HomeMy WebLinkAbout04.a. Review Draft Position Paper to approve a new Capital Project in Fiscal Year 2021-2022 for Steam Renovations, Phase 1 and separate from current District Project 7349; Find the new project is exempt from the California Environmental Quality Act (CEQA)Page 1 of 10
Item 4.a.
DCENTRALSAN
BOARD OF DIRECTORS
POSITION PAPER
DRAFT
MEETING DATE: FEBRUARY 16, 2022
SUBJECT: REVIEW DRAFT POSITION PAPER TO APPROVE ANEW CAPITAL
PROJECT IN FISCAL YEAR 2021-22 FOR STEAM RENOVATIONS, PHASE
1 AND SEPARATE FROM CURRENT DISTRICT PROJECT 7349; FIND THE
NEW PROJECT IS EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL
QUALITYACT (CEQA); AND AUTHORIZE THE GENERAL MANAGER TO
EXECUTE A NEW PROFESSIONAL ENGINEERING SERVICES
AGREEMENT IN AN AMOUNT NOT TO EXCEED $1.4 MILLION WITH HDR,
INC. FOR FINAL DESIGN AND BIDDING SERVICES
SUBMITTED BY: INITIATING DEPARTMENT:
NITIN GOEL, SENIOR ENGINEER
MICHAEL CUNNINGHAM, ASSOCIATE
ENGINEER
ENGINEERING AND TECHNICAL SERVICES-
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
ISSUE
The Board of Directors (Board) authorization is required for the General Manager to enter into a new
professional engineering services agreement in an amount greater than $200,000, or initiate a new project
not listed in the Capital I mprovement Budget (Cl B).
BACKGROUND
On December 20, 2018, the Board authorized staff to enter into an agreement with HDR, I nc. (HDR) for
the condition assessment and preliminary design of the Steam and Aeration Blower Systems
Renovations, District Project (DP) 7349. This decision was made after a very competitive and formal
solicitation process and selection that included four qualified consulting engineering firms. HDR has
completed the condition assessment evaluations, comprehensive asset evaluations, business case
evaluations (BCEs), and preliminary design reports to identify the assets which merit rehabilitation and/or
replacement.
February 16, 2022 EOPS Regular Committee Meeting Agenda Packet - Page 4 of 53
Page 2 of 10
The Steam and Aeration Blower Systems Renovations is a critical and large program -type project that has
produced two separate projects, the Electric Blower Improvements, DP 100015 and Aeration Basins
Diffuser Replacement and Seismic Upgrades, DP 100019. Each project aims to address many of the
assets and vulnerabilities identified under the planning efforts.
A third project, Steam Renovations, Phase 1, is being recommended by staff to address the critical needs
of the treatment plant's steam system. The scope of work was identified by condition assessment and
evaluations similar to the other projects.
Overall, the existing steam system appears to be in very good condition. Most of the steam system
elements have been identified to have an estimated remaining useful life greater than 20 years, while
others need immediate attention, such as the boiler and deaerator feedwater pumps, and waste steam
exchangers. The Steam Renovations, Phase 1 will also address safety -related improvements for the
boiler feedwater and blowdown sampling equipment, boiler chemical system, and specific boiler feedwater
piping and valves found to be rated below operating pressure.
Staff has negotiated fees not to exceed $1.4 million (M) with HDR for final design and bidding services for
the new project. I n addition, staff is recommending to include a 30% design for a steam turbine generator
to possibly replace a steam turbine in the future, which is considered Phase 2 of the Steam Renovations, if
needed. Proceeding with a 30% design now allows for staff to better understand the Phase 2
implementation and costs. For transparency and project accounting purposes, staff is recommending to
separate the Steam and Aeration Blower Systems Renovations into a new project and to execute a
separate agreement with HDR.
Government Code Section 1090 (Section 1090) Compliance:
HDR will be performing the technical work for final design of the Steam Renovations, Phase 1, which is in
compliance with Section 1090. HDR has not been precluded from continuing with the final design of the
Aeration Basins Diffuser Replacement and Seismic Upgrades Projector future phases and associated
potential subsequent engineering services during construction of the Steam Renovations, Phase 1 based
on the following premises:
1. The publicly advertised scope of the Steam Renovations, Phase 1 for consultant selection included
from its inception elements for Phase 3 and 4, related work as well as other phases;
2. HDR's role and scope on the project during the preliminary design, BCEs, and assessments were
limited to technical evaluations, in nature only, and did not include any recommendations independent
from staff;
3. HDR was not acting in a capacity similar to that of a Central San employee or staff;
4. HDR did not perform work that independently defined the scope of the subsequent contract
amendments;
5. HDR did not influence the decision making of Central San regarding the subsequent work; and
6. Board committee meetings and Board presentations were prepared, presented, and
recommendations created by Central San staff.
CEQA
Staff has concluded that the project is exempt from California Environmental Quality Act (CEQA) under
Central San's CEQA Guidelines Section 15301, since it involves repairs, maintenance, and minor
alterations to an existing sewage facility with no increase in capacity; and Section 15302, since it involves
replacement of existing public facilities at the same location and with the same purpose. Any capacity
increases are for non -growth inducing, wet weather purposes. Approval of this project will establish the
Board's independent finding that this project is exempt from CEQA.
February 16, 2022 EOPS Regular Committee Meeting Agenda Packet - Page 5 of 53
Page 3 of 10
ALTERNATIVES/CONSIDERATIONS
The Board could consider two alternatives for the Steam Renovations, Phase 1 Final Design, as follows:
Alternative 1: Status Quo - Do Nothing Alternative, which would likely lead to continuing challenges
maintaining and operating the steam system which has components beyond their useful life and has been
identified through condition assessments and comprehensive asset evaluations to require replacement.
Replacing the equipment in a project will allow for planned outages and reduce the operational impact or
risks associated with the systems. Do nothing alternative is not recommended.
Alternative 2: Postpone or split scope into multiple smaller projects over multiple years, which is not
recommended since the overall costs would be higher and all items are critical for either safety or for
reliable operations. Projects take several months to design and longer to execute with contractors so
postponing and conducting staggered timelines is not recommended. Postpone or split scope alternative
is not recommended.
FINANCIAL IMPACTS
The total estimated project cost for the Steam Renovations, Phase 1 is $28.5 M, which includes detailed
design, consultant and staff costs, construction contract, construction management, and contingency.
The Steam and Aeration Blower Systems Renovations is listed on page 237 of Central San's Fiscal Year
(FY) 2021-22 Budget for $35.35 M. A $500,000 transfer will be done under the General Manager's
delegated authority after the Board authorizes the separation of the project. Staff will also update the next
FY's C I B to reflect the budget adjustments and project descriptions. No increase to the C I B is being
proposed or changes that impacts the large range Capital Improvement Plan.
COMMITTEE RECOMMENDATION
The Engineering and Operations Committee reviewed this project at its meeting on February 16, 2022
and recommended
RECOMMENDED BOARD ACTION
Staff recommends the following Board actions:
Approve a new capital project in Fiscal Year 2021-22 for the Steam Renovations, Phase 1 and
separate from District Project 7349 (Steam Aeration and Blower Systems Improvements);
2. Find that the Project is exempt from CEQA: and
3. Authorize the General Manager to execute a new professional engineering services agreement in an
amount not to exceed $1.4 million with HDR, I nc. for final design and bidding services for the new
project.
Strategic Plan re -In
GOAL TWO: Environmental Stewardship
Strategy 1—Achieve 100% compliance in all regulations, Strategy 4 - Reduce reliance on non-renewable energy
GOAL FOUR: Workforce Development
Strategy 4 — Meet or exceed industry safety standards
February 16, 2022 EOPS Regular Committee Meeting Agenda Packet - Page 6 of 53
Page 4 of 10
GOAL FIVE: Infrastructure Reliability
Strategy 1— Manage assets optimally to prolong their useful life, Strategy 2 — Execute long-term capital renewal and
replacement program
GOAL SIX. Innovation and Optimization
Strategy 1— Implement the Central San Smart Initiative, Strategy 2 — Improve and modernize operations through
technology and efficiency measures
ATTACHMENTS:
1. Presentation
February 16, 2022 EOPS Regular Committee Meeting Agenda Packet - Page 7 of 53
Page 5 of 10
STEAM RENOVATIONS, PHASE 1
DISTRICT PROJECT TBD
Jean -Marc Petit, Director of Engineering and Technical Services
Edgar J. Lopez, Capital Projects Division Manager
Engineering and Operations Committee Meeting
& February 16, 2022
February 16, 2022 EOPS Regular Committee Meeting Agenda Packet - Page 8 of 53 1
Page 6 of 10
STEAM RENOVATIONS PROJECT BACKGROUND
2019
LJ
December 2018
Board approved
Steam Project for
condition
assessment and
preliminary design
under project DP
7349
2020
2021
2022
W
77 0
July 2020 September January 2021 May 2021 February 2022 (TODAY)
Board approved Electric 2040 Staff provided Board approved Staff requests Board approval
Blower Improvements, Staff provided Board updates on Aeration Basins for Final Design for:
DP100015 for Final Board updates Comprehensive Diffuser Steam Renovations,
Design on Condition Asset Evaluation Replacement Phase 1
Assessment Results for Final Design
Results
NOTE: Other resulting projects will
be presented to the Board, such as
clarifier renovation and possible
electrical improvements to be
included in future projects
EVALUATIONS AND PRELIMINARY DESIGN REPORT ARE COMPLETE -
FINAL DESIGN REQUIRES BOARD APPROVAL
1. Condition Assessment 2.
Condition Assessment
Plan/Guidelines
& Reporting
7A7
6. Preliminary 7. Final Design
Design Reports
4
February 16, 2022 EOPS Regular Committee Meeting Agenda Packet - Page 9 of 53 2
Page 7 of 10
STEAM ASSETS: REPLACEMENT OF CRITICAL SUPPORT
EQUIPMENT AND SAFETY IMPROVEMENTS
Legend:
seem I Centrifuge 2022 Design: Capital Projects
System Het water Q 2022 Support: Operations & Maintenance Replace -in -Kind or Technical Assistance
Heater Exchanger O No 2022 Work Required: Remaining Useful Life > 15 years
Copolymer
■IIII (to Boilers)
Chemical Feed
condee:er
Cooling WaterHo[
(CW)pumpsWater
Blower
Heat Resenrit
Exchanger
® Water Healers
Potable
Condt Deaeratar
I
Makeup
Storage Tank
I
B.
F finalloop
Waste Steam
Water
Ox
AC
EffluC,nWt
%Rmurni
Exchangers
nge�
CW
�
�J
r Return
Amine)
turn
I CW
GSC Vacuum, Hogger, & Aeration Unit
&West aFP
i'rr�
}�y5
H—ell Pumps
Condensate Return Condensate Return
STEAM ASSETS WILL BE REPLACED TO MAINTAIN SAFE
AND RELIABLE SYSTEM OPERATION
• Some equipment at end of remaining useful life: Critical feedwater pumps (boiler and
deaerator), heat exchangers (steam condensers, waste steam, centrifuge feedwater, etc.).
• Safety Improvements: Boiler feedwater chemical feed area, feedwater system and blow down
sampling units, etc.
• Steam Turbine Generator 30% Design: Improve cost estimate for equipment which may
replace steam driven blowers in the future to produce electricity. Coordinate with Long -Term
Biosolids Plan.
Ip a. it F 4All
I
Waste Steam Exchanger Replacement Deaerator Supply Pump Example Steam Turbine Generator '
6
CFNTPAISAN
February 16, 2022 EOPS Regular Committee Meeting Agenda Packet - Page 10 of 53 3
Page 8 of 10
ESTIMATED PROJECT COST AND
FUNDING SCHEDULE
BOARD ALTERNATIVES AND
RECOMMENDED BOARD ACTION
L 7
ESTIMATED PROJECT COSTS
DP 7349 Project
Budget in Current Capital Improvement
Plan (Fiscal Year (FY)
2021-22)
Phase
Budget -to -Date
- FYs
Total
Planning
Design
Construction
FY Total
New
Project
Total Estimated
Project Cost
Steam Renovations,
Phase 1$28.5
.Aa-CD
CFNTRAI SAN
February 16, 2022 EOPS Regular Committee Meeting Agenda Packet - Page 11 of 53 4
Page 9 of 10
STEAM RENOVATIONS SCHEDULE
Year 2022 Year 2023-2025
Feb June Dec I b Jan
2022 2022 2022 J 2023 k;l 025
Equipment 100%
Board Procurement Submittal Bid/Award Construction Completion
Approval Documents &
30% Submittal*
Long lead time, specialized equipment, may be pre -
selected or purchased to be determined in design
9
BOARD ALTERNATIVES
The Board could consider two alternatives for the Steam Renovations, Phase 1 Final Design,
as follows:
• Alternative 1: Status Quo - Do Nothing Alternative, which would likely lead to continuing
challenges maintaining and operating the steam system which has components beyond their
useful life and has been identified through condition assessments and comprehensive asset
evaluations to require replacement. Replacing the equipment in a project will allow for
planned outages and reduce the operational impact or risks associated with the systems. Do
nothing alternative is not recommended.
• Alternative 2: Postpone or split scope into multiple smaller projects over multiple years,
which is not recommended since the overall costs would be higher and all items are critical
for either safety or for reliable operations. Projects take several months to design and longer
to execute with contractors so postponing and conducting staggered timelines is not
recommended. Postpone or split scope alternative is not recommended.
February 16, 2022 EOPS Regular Committee Meeting Agenda Packet - Page 12 of 53 5
Page 10 of 10
RECOMMENDED BOARD ACTION
Staff recommends the following Board actions:
Approve a new capital project in Fiscal Year 2021-22 for
the Steam Renovations, Phase 1 and separate from
District Project 7349 (Steam Aeration and Blower Systems
Improvements);
2. Find that the Project is exempt from CEQA: and
3. Authorize the General Manager to execute a new
professional engineering services agreement in an amount
not to exceed $1.4 million with HDR, Inc. for final design
and bidding services for the new project.
QUESTIONS?
February 16, 2022 EOPS Regular Committee Meeting Agenda Packet - Page 13 of 53 6