Loading...
HomeMy WebLinkAbout10. Authorize a purchase agreement for ultraviolet equipment and to amend consultant agreement with Carollo Engineers for District Project 100012 Page 1 of 7 Item 10. CENTRAL SAN BOARD OF DIRECTORS POSITION PAPER MEETING DATE: FEBRUARY23, 2023 SUBJECT: AUTHORIZE THE GENERAL MANAGER TO 1) EXECUTE A PURCHASE AGREEMENT IN AN AMOUNT NOT TO EXCEED $5.5 MILLION WITH TROJAN TECHNOLOGIES GROUP ULC FOR ULTRAVIOLET (UV) DISINFECTION EQUIPMENTAND SPECIAL SERVICES FOR THE UV DISINFECTION REPLACEMENT, DISTRICT PROJECT 100012; AND 2) AMEND AN EXISTING PROFESSIONAL ENGINEERING SERVICES AGREEMENT WITH CAROLLO ENGINEERS, INC. IN AN AMOUNT NOT TO EXCEED $4.4 MILLION, INCREASING THE COST CEILING TO $5.3 MILLION FOR FINAL DESIGN SERVICES SUBMITTED BY: INITIATING DEPARTMENT: AMANDA CAUBLE, ASSOCIATE ENGINEER ENGINEERING AND TECHNICAL SERVICES- CAPITAL PROJECTS REVIEWED BY: EDGAR J. LOPEZ, CAPITAL PROJECTS DIVISION MANAGER Roger S. Bailey General Manager ISSUE The Board of Directors (Board) authorization is required for contracts or professional engineering services agreements above $200,000 in the Capital Program. BACKGROUND Central San built the existing UV Facilities in 1994 to replace gaseous chlorination disinfection for wastewater effluent. Fischer-Porter was the original manufacturer, patent holder, and is no longer in business. The patent rights were sold several times, first to Elsag Bailey, then ABB and now belongs to I ronbrook UV of Canada (I ronbrook). Most of the current UV system has been in service for roughly 29 years and requires substantial maintenance, lamp replacement, and frequent chemical cleaning of UV banks. Operations and Maintenance (O&M) staff is able to maintain the system and, to date, has been able to obtain spare parts February 23, 2023 Special Board Meeting Agenda Packet- Page 78 of 122 Page 2 of 7 and lamps from I ronbrook. For wet weather operation, the UV system has a capacity of 100 million gallons per day(MGD) and it has been established through hydraulic modeling that a capacity of 127 MGD is achievable through improvements and with the existing secondary and aeration process. Thus, the existing UV system at its current location and downstream infrastructure creates a bottleneck effect, limiting the discharge of disinfected final effluent during peak wet weather events. On January 11, 2021, Central San initiated a formal public solicitation for engineering services for the UV Disinfection Replacement, District Project 100012 (UV Project), and seven consulting engineering firms responded with qualified and responsive proposals. Carollo Engineers, Inc. (Carollo) ranked as the top firm and was recommended to be the designer, or engineer of record, for the UV Project. On April 15, 2021, the Board authorized the General Manager to execute a professional engineering services agreement with Carollo in an amount not to exceed $900,000 for planning and pre-design services. A condition assessment of the UV system was performed under the UV Project that evaluated alternative state-of-the-art disinfection technologies, such as LED UV, ozone, peracetic acid, and sodium hypochlorite disinfection to determine the optimal disinfection system for Central San. Based on a comprehensive evaluation, continuing with UV disinfection technology was determined as the best path forward. The new UV disinfection system is planned to be constructed adjacent to the south clarifiers and provides multiple benefits, as shown in Attachment 1. First, it frees the existing UV areas for future secondary capacity needs that may arise due to changes in regulations. Second, it alleviates the existing hydraulic bottleneck in the secondary process, which may impact operations during peak wet weather events and helps improve wet weather management. With completion of the UV Project, Central San will have state-of-the-art UV disinfection technology. Modern UV lamps are higher intensity and more efficient than the existing lamps and have the ability to modulate and reduce intensity down to 30 percent based on flow and water quality while still meeting disinfection requirements. Electricity use of the new UV facility is expected to be about 50 percent lower than the existing electricity use to treat average flows. Lamp banks are oriented at 45 degrees which reduces the hydraulic headloss across each channel. Modern UV equipment includes self-cleaning lamps using an automated wiping system that can be completed without removing the lamps from the channel. Wipers are activated based on lamp fouling monitored by a UV intensity meter on each bank or based on time. These improvements will reduce O&M costs and significantly improve worker safety. As part of the pre-design, Carollo developed the equipment selection documents, consisting of technical drawings and specifications for UV equipment. The UV equipment manufacturers were determined by performing a business case evaluation and included O&M staff input. Staff recommended to pre-select the UV equipment manufacturer under a competitive and qualified bid process. The UV manufacturer will provide shop drawings and participate in workshops with staff during the final design. The UV equipment agreement is intended to be assigned to an installation contractor; therefore, the purchase of the equipment will not be done by Central San. Equipment pre-selection and involving a UV manufacturer in the final design includes the following advantages: • Construction drawings and specifications will be based on the vendor's actual equipment; • Results in a very complete overall design for the installation contractor, particularly process and instrumentation diagrams and electrical drawings, as the manufacturer's submittals will be approved during design; • Improves overall cost estimate during design; and • Reduces change orders or potential delays in the project timeline. On September 13, 2022, staff advertised a formal Request for Qualifications and Bids on PlanetBids for UV disinfection equipment and design support services. On October 14, 2022, Central San received responses from Trojan Technologies Group ULC (Trojan) and Wedeco (owned by Xylem). Each bid submittal package contained two parts: Part 1 - Qualifications and Part 2 - Bid. Qualifications included technical requirements, ability to meet dose and disinfection requirements, successful installations February 23, 2023 Special Board Meeting Agenda Packet- Page 79 of 122 Page 3 of 7 designed for municipal wastewater in North America sized similarly to Central San. Central San staff and Carollo conducted an extensive evaluation of the qualifications and determined both vendors met the qualifications. Bids included the cost for UV lamps, banks, sensors, cables, and electrical components, such as power distribution centers and electrical control panels, including programmable logic controllers; design services to coordinate the shop drawings with the installation design, workshops with staff and support; and optional services, such as an extended warranty, equipment storage, cost for an optional additional bank per channel, price escalation, and additional as-needed design services. The low bidder is determined based on a low-cost present worth analysis of capital and select operational costs (annual electrical use, annual replacement costs for lamps, ballasts, sleeves, sensors and wipers) over 25 years. Staff opened the bids or present worth costs on November 1, 2022, and received a cost of $9,395,917.54 from Trojan and $11,384,862 from Wedeco, as shown in Attachment 2. Trojan was the responsive and responsible low bidder. The UV equipment cost for Trojan was $4,341,760 and close to the Engineer's estimate of $4,000,000. Wedeco was slightly lower in capital costs but more costly to operate and maintain at a cost of$2,000,000 more than Trojan. Central San will pay the manufacturer for approved submittals and the installation contractor will pay the total equipment cost during construction of the new UV facilities. The Bid also required pricing to be provided for additional scope and services. After a detailed evaluation of the optional services, staff is recommending the following be added to the contract: • Storage of UV disinfection system for up to six months. • Three-year warranty extension. • Allowance for additional as-needed design assistance. • One additional UV bank per channel, if needed. An additive item for storage of the UV disinfection system was included due to the possible shift in schedule due to securing electrical equipment to power the UV system under installation contract. Electrical gear is currently the longest lead item for the UV Project and has been difficult to procure within the last two years. Staff will work with the vendor to ensure the latest instrumentation and controls technology is included in the design and included prior to releasing the final shop drawings for fabrication. Operations staff modified the dissolved oxygen (DO) setpoints in the aeration tanks since June of 2022. This modification improved effluent quality and increased ultraviolet transmittance (UVT), one of the UV design parameters. Staff wanted to include the extra UV bank per channel as a conservative measure to meet permit requirements in the event the DO setpoints did not consistently improve water quality. Staff will monitor UVT and remove the extra bank from design if staff and the design team believe that Central San will be able to meet disinfection requirements without the extra bank. With the UV vendor selected, the final design of the UV Project is recommended to move forward. Central San has negotiated a scope and fee with Carollo. The current schedule for design and construction of the UV Project is detailed below: • Submitted a California State Water Resources Control Board (SWRCB) State Revolving Fund (SRF) application in December 2022. Anticipated status of funding availability in mid-2023; • Complete Final Design by 2025; • Bidding will be based on funding and constructability timeline with other ongoing capital projects. Bidding can occur between 2025-2026; • Construction duration is estimated between three-to-four years and should be completed and operational by 2030. February 23, 2023 Special Board Meeting Agenda Packet- Page 80 of 122 Page 4 of 7 Staff is conducting a hydraulic and volumetric evaluation of plant flows and wet weather basin volumes due to the recent large storm events. Results of this evaluation may increase the capacity of the UV Project. Staff recommends executing the final design contract but will start the final design after the wet weather evaluation is complete. Staff will modify Carollo's scope of work, if necessary, based on the results of the evaluation. This schedule compliments the desire to start final design soon because complex larger projects within the treatment plant take time to complete as staff experienced with the recent Solids Handling Facility Improvements project.Additionally, the schedule provides flexibility to align with SRF funding availability. The current UV Project schedule and plan will allow Central San to obtain the remaining useful life from the existing facilities and create a reliable and safe replacement timeline for this critical facility. California Environmental Quality Act(CEQA) At its December 15, 2022 meeting the Board of Directors independently found the project was exempt from the California Environmental Quality Act (CEQA) under Central San's CEQA Guidelines Section 15302 (Replacement or Reconstruction) and Section 15061(b)(3) (Common Sense Exemption).A Notice of Exemption was filed with the Contra Costa County Clerk on December 16, 2022. ALTERNATIVES/CONSIDERATIONS The Board may elect to not authorize the purchase agreement and include the equipment for procurement under a general contractor and a Central San construction contract. Central San received a low-net present value from a qualified UV equipment vendor and due to the complexity and specialized nature of the installation design, it is recommended to enter into a contract with the vendor to complete shop drawings and finalize design. Therefore, this alternative is not recommended. The SRF application process and scoring is significantly better when the final design is complete as the project would be viewed as shovel ready. Typically, Central San does not shelve or delay projects for bidding. However, due to the costs and potential impacts with other capital projects, such as the Solids Handling Facility Improvements, Phase 1A and the Aeration Basins Diffuser Replacement projects, staff recommends completing final design and then make sure that other projects do not obstruct or negatively impact operations or the UV Project schedule. Central San invested significant costs, over a million dollars, replacing critical components several years ago to allow for this project to proceed in the timeline proposed by staff. The Capital Projects and Operations Divisions agree and will continue monitoring and maintaining the existing UV facilities until its replacement by 2030. FINANCIAL IMPACTS The total anticipated cost for the purchase agreement is $5,500,000, which includes the following: • Item 1: $4,341,761 for UV equipment, spare parts, special tools, design assistance, supervision of installation, testing, training, commissioning, warranty, and support services; • Item 2: $18,600 for storage of UV disinfection equipment for up to six months; • Item 3: $190,117 for a three-year extended warranty; • Item 4: $100,000 for additional as-needed design assistance; • Item 5: $595,000 for an extra bank of UV lamps per channel; and • The remaining amount of$254,522 of contract contingency. Carollo's final design services for the project is estimated at$4,400,000. The UV Project is listed in the Fiscal Year(FY) 2022-23 Budget on page 251 at a total estimated project budget of nearly$68,500,000. There are adequate funds within the current budget and future budget for the final design of this project. February 23, 2023 Special Board Meeting Agenda Packet- Page 81 of 122 Page 5 of 7 Staff submitted a SW RCB SRF application in December 2022 for a $65,000,000 low interest loan for FY 2023-24. If the project is not selected for a SRF loan or if funding is not available in 2023, staff can amend and resubmit the application by December 2023 for FY 2024-25. Construction would start after the SWRCB project review is completed and a loan agreement is executed. At this time, the financial impact consists of the final design at$4,400,000, Trojan's design assistance at roughly$250,000, and staff time. The UV equipment and installation costs are planned to be covered by an SRF agreement or other debt financing and will be presented to the Board at a future date. COMMITTEE RECOMMENDATION The Engineering & Operations Committee reviewed this matter at its January 23, 2023 meeting and recommended approval. RECOMMENDED BOARD ACTION Staff recommends the following Board action to authorize the General Manager to: 1. Execute a purchase agreement in an amount not to exceed $5.5 million with Trojan Technologies Group ULC for UV disinfection equipment and special services for the UV Disinfection Replacement, District Project 100012; and 2. Amend an existing professional engineering services agreement with Carollo Engineers, Inc. in an amount not to exceed $4.4 million, increasing the cost ceiling to $5.3 million, for final design services. Strategic Plan Tie-In GOAL TWO:Environmental Stewardship Strategy 1 -Achieve compliance in all regulations, Strategy 4- Identify and advance sustainability initiatives, including reducing energy usage and emissions GOAL FOUR: Governance and Fiscal Responsibility Strategy 3- Maintain financial stability and sustainability GOAL FIVE: Safety and Security Strategy 2- Protect personnel and assets from threats and emergencies GOAL SIX:Infrastructure Reliability Strategy 1 - Manage assets optimally, Strategy 2- Execute long-term capital renewal and replacement program ATTACHMENTS: 1. Project Location Map 2. Summary of Bids February 23, 2023 Special Board Meeting Agenda Packet- Page 82 of 122 Page 6 of 7 Ultraviolet (UV) Disinfection Replacement Project District Project 100012 Location Map Date: 10/11/2022 Detail Area l Martinez � a Concord Pleasant Hill d n W� I n 1 c Y oc Project jam Location _ o A Joo� = Q District-Owned Property Q Project Location and Number Note: 0 400 800 Map Displayed in North American Datum of 1983 Attachment Central San data as of October 2022. H Feet California State Plane,Zone III FIPS 0403,US Feet 1 February 23, 2023 Special Board Meeting Agenda Packet- Page 83 of 122 Page 7 of 7 Attachment 2 - -. C-0 Central Contra Costa Sanitary District REQUEST FOR QUALIFICATIONS AND BID ULTRAVIOLET DISINFECTION EQUIPMENT FOR THE ULTRAVIOLET DISINFECTION REPLACEMENT District Project No. 100012 Draft Summary of Bids Bid Opening: November 1, 2022, 11:00 AM Engineer's Estimate: $4,000,000 No. Bidder Total Bid 1 Trojan Technologies Group ULC $9,395,917.54 2 Xylem Water Solutions USA, Inc./Wedeco $11,384,862.00 Subcontractor Lists Subcontractor Work Description Contractor 1 None Contractor 2 None Bids Opened By: /s/Katie Young Page 1 of 1 February 23, 2023 Special Board Meeting Agenda Packet- Page 84 of 122 Item 10. (Handout) February 23,2023 Ultraviolet (UV) Disinfection Replacement, District Project 100012 Equipment Contract and Final !1 Design Services _ Edgar J.Lopez, P.E. Capital Projects Division Manager " ' , I 1 UV System Background In 1994, Central San installed the UV system to replace chlorine as disinfection to / produce final effluent. In 2006, UV disinfection was expanded to A " provide reliability and capacity for Operations. i Fischer-Porter was the original manufacturer and patent holder. The rights sold several times and currently parts are being ' purchased from third party re-seller, ' as Ironbrook UV in Canada. ,' = ori 2 1 Drivers for UV Disinfection Replacement Project Aging Infrastructure Capacity • Majority of UV system planned to Review process improvements or be in service for nearly 40 years t optimizations to gain capacity • Staff has excelled at keepingAddress hydraulic bottleneck to system reliable and operational increase capacity to 140 MGD Central Sustainability/Optimization (OT San O Regulations • Energy-efficient improvementsDrivers Comply with regulations as • Easier staff maintenance disinfection is critical for • Improved safety for operators and permitting maintenance staff Use existing basins if-and-when • Improve serviceability goo regulations become more restrictive MGD=Million gallons per day 1 3 R���FYiR lE1Y VYS111UCNRE nV� EU•E I r I 9 3 Proposed UV # FE tlUNNEL SIMIC+VIIFR .� I Ey �f irr� System Location " �p , �f.Fl�LSEFFRER �aaaaaar� wn y erYwerrc wvE and Flow Path o 1-' Removes cE,co EMY ' '.0 µ.' m scavnnRr P§ s F� Hydraulic �: ., �Em�R FD ��aF +Rs rosrnEwwoR CIIUIREL Bottlenecks •G�dr W6 � � �}' FLOW � w•.L EF�YFR. �E%IRTIN6 I sV•R�UOP^ �y p El wE1L ARo 2 NEW � I, IIYF 9T�IRIR • OUT � UT OF 5EA41GE a..-.d 1 4 2 Major improvementss � with new UV facilities • Metered flow and self-cleaning �� UV lamp system • Better power control and potential electrical savings, up to 50% (lower demand by 200 kW) • Increase wet weather capacity by an additional 40 MGD to 140 MGD 5115RU, Y t.. 5 Current Capacity through the plant 80 172 Wet Weather Wet Weather Pum s Storage � Retum O 1�7o to Plant ig 270 170 Pdmary 135-175 135-210 100 319"13ar Influent Aerated Primary Eflluant Aneerohic Aeratlon Secondary t1Y screens Pumps Grit Tanks Cled.rs Pumps Selector Tanks Clarifiers Disinfection 60 T 260 150 RAs O SuisunI wy"� Irl I50 Staff and multiple consultants have confirmed the capacities listed; - pumps are firm capacity while process areas are hydraulicly based. Adding a fifth UV bank will allow up to 140 MGD of disinfection. Minor modifications to the secondary are required to reliably reach 140 MGD to avoid submerging clarifier weirs. 6 3 Total Project Budget The total project budget estimate is nearly$68.5 Million (M) in 2023 dollars. UV Equipment and other services are ®�®� anticipated to be purchased by the $1,800,000 $0 $1,800,000 installation contractor($5.2 M) $4,680,000 $1,300,000 $5,980,000 Construction costs of$61 M is expected Construction $0 $60,7000,000 $60.700.000 to be funded by SRF loan or other debt $68,480,000 financing. h&hlbb SRF=State Revolving Fund 1 7 UV Equipment Bid and Contract Public bid based on qualifications and low costs. Two bids were received; Trojan Technology was the lowest bidder.The total vendor contract amount is $5,500,000,which includes the following: Item 1: $4,341,761 for equipment, spare parts, special tools, design assistance, supervision, testing,training, commissioning,warranty, and support services Item 2: $18,600 for six months of additional equipment storage Item 3: $190,117 for an extended warranty Item 4: $100,000 for additional as-needed design assistance Item 5: $595,000 for an extra bank of UV lamps (needed for 140 MGD capacity) Remaining amount equates to approximately 5%contingency hwhb1 8 4 S Amend Design Agreement Carollo Engineers, Inc. selected after a competitive formal public <� solicitation and proposal process Scope of Services include all engineering services from planning to engineering services during construction Final design services negotiated up to $4.4 M Staff intends to submit 90-percent final design for SRF Loan _ Application Staff will not proceed to 100-percent until construction timeline can be determined (to avoid other nearby construction projects) 9 Project Schedule 100-percent final design by 2025; Bidding in 2025 or 2026; and New UV facilities operational and permitted by 2030 / 7 - -49- 10 5 Authorize the General Manager to: Execute a purchase agreement in an amount not to Recommended exceed $5.5 million with Trojan Technologies Group ULC for UV disinfection equipment and special Board Actions services for the UV Disinfection Replacement, District Project 100012; and Amend an existing professional engineering services agreement with Carollo Engineers, Inc. in an amount not to exceed $4.4 million, increasing the cost ceiling to $5.3 million, for final design services. AM mad ,' • 11 Questions? �•� '�_-rte` ����"'``� - - - �_ w o � 1 12 6