HomeMy WebLinkAbout20. Declare and ratify an emergency and authorize a contract increase to perform repairs on the Aeration Turbine Blower No. 2 Page 1 of 3 Item 20. CENTRAL SAN BOARD OF DIRECTORS POSITION PAPER MEETING DATE: AUGUST4, 2022 SUBJECT: DECLARE AN EMERGENCYAND RATIFY THE GENERAL MANAGER'S ACTIONS UNDER PUBLIC CODE 22050 TO DIRECT CONHAGEN ROTATING EQUIPMENT SPECIALISTS TO PERFORM EMERGENCY REPAIRS ON THE STEAM DRIVEN AERATION BLOWER NO. 2; AND AUTHORIZE THE GENERAL MANAGER TO I NCREASE AN EXISTING CONTRACT I N AN AMOUNT NOT TO EXCEED $412,600 WITH CONHAGEN ROTATING EQUIPMENT SPECIALISTS, INCREASING THE COSTCEILING TO $550,000, TO PERFORM THE REQUIRED REPAIRS SUBMITTED BY: INITIATING DEPARTMENT: STEVE MCDONALD, DIRECTOR OF OPERATIONS-MAINTENANCE OPERATIONS Roger S. Bailey Kenton L. Alm General Manager District Counsel ISSUE Authorization from the Board of Directors (Board) is required to declare an emergency and for the General Manager to amend an agreement for an amount greater than $200,000. BACKGROUND Central San has five aeration blowers, both new and existing. The three existing blowers include two steam turbine-driven blowers, and one electric blower. In addition, there are three new Neuros blowers that are currently being installed with a schedule for completion in February to March 2023. Of the three existing blowers, the electric blower is unreliable and cannot meet the summer peak air demands for the plant. August 4, 2022 Regular Board Meeting Agenda Packet- Page 92 of 94 Page 2 of 3 The plant is currently running on one of the two existing steam turbine blowers, with the second steam turbine blower serving as an emergency backup. Plant Maintenance staff are currently working with Conhagen Rotating Equipment Specialists (Conhagen)to complete routine repairs and improvements to the steam driven Aeration Blower No. 2. They have now discovered a serious situation that affects safety and reliability of operation of the steam turbine. Extreme corrosion as well as loose metal shavings have occurred in the steam nozzle housing in the annulus between the fixed rim and the rotating turbine. This is contributing to instability of operation, and more importantly is a potentially a dangerous condition and must be repaired immediately as the plant is now running without a backup to the existing Steam Turbine Blower No. 1. In addition, the plant National Pollutant Discharge Elimination System (NPDES) permit requires that adequate reliability be in place for major unit operations, including blower capacity. ALTERNATIVES/CONSIDERATIONS Alternative 1 - Prepare a competitive bid package to procure a new contractor. This is not recommended as it would add a minimum of six to ten weeks to the schedule and would also potentially be problematic as that would mean possibly two different contractors working on the same blower at the same time. Alternative 2 - Procure a temporary backup blower. This is not recommended as this option has been investigated recently as part of the new blower installation, and there is no good tie-in location for a rental blower, and at the least would require expensive new stainless ductwork to be fabricated to feed the existing air pressure header on the north side of the aeration basins. FINANCIAL IMPACTS Conhagen has estimated the additional cost of the expedited repairs to Blower No. 2 to be $348,445. The time estimated to make this repair is six to eight weeks. The General Manager has declared an emergency to amend their existing contract of$137,400 to increase the total contract amount not to exceed $550,000, to cover the cost for the expedited repairs and additional work including a new throttle valve, case face, and machine/weld work. The funds are available in the Operations and Maintenance Fiscal Year 2022-2023 Budget. COMMITTEE RECOMMENDATION This matter was not reviewed by a Board Committee. RECOMMENDED BOARD ACTION Staff recommends the following: 1. Declare an emergency and ratify the General Manager's actions under Public Contract Code 22050 to perform emergency repairs to the Steam Driven Aeration Blower No. 2; and 2. Authorize an increase to an existing contract in an amount not to exceed $412,600 with Conhagen Rotating Equipment Specialists, increasing the contract cost ceiling up to $550,000, to perform the required repairs. Stratedc Plan Tie-In GOAL TWO:Environmental Stewardship Strategy 1 -Achieve compliance in all regulations August 4, 2022 Regular Board Meeting Agenda Packet- Page 93 of 94 Page 3 of 3 GOAL FIVE: Safety and Security Strategy 2- Protect personnel and assets from threats and emergencies GOAL SIX: Infrastructure Reliability Strategy 1 - Manage assets optimally August 4, 2022 Regular Board Meeting Agenda Packet- Page 94 of 94