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HomeMy WebLinkAbout03.a. Approve a contingency project in the amount of $450,000 for the Treatment Plant Odor Control Facilities Improvements; and authorize the General Manager to execute a professional agreement with Jacobs Solutions, Inc. in the amount of $350,000 for plPage 1 of 10 Item 3.a. DCENTRALSAN MEETING DATE: NOVEMBER 13, 2023 BOARD OF DIRECTORS POSITION PAPER DRAFT SUBJECT: REVIEW DRAFT POSITION PAPER TO APPROVE A CONTINGENCY PROJECT IN THE AMOUNT OF $450,000 FOR THE TREATMENT PLANT ODOR CONTROL FACILITIES IMPROVEMENTS; AND AUTHORIZE THE GENERAL MANAGER TO EXECUTE A PROFESSIONAL ENGINEERING SERVICES AGREEMENT WITH JACOBS SOLUTIONS, INC. IN THE AMOUNT OF $350,000 FOR PLANNING AND PRE -DESIGN SERVICES SUBMITTED BY: INITIATING DEPARTMENT: MICHAEL CUNNINGHAM, ASSOCIATE OPERATIONS -PLANT OPERATIONS - ENGINEER PROCESS CONTROL REVIEWED BY: NITIN GOEL, OPERATIONS OPTIMIZATION DIVISION MANAGER GREG NORBY, DEPUTY GENERAL MANAGER - OPERATIONS 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 or initiate a new project, Treatment Plant Odor Control Facilities Improvements (Project), not listed in the Capital Improvement Budget in an amount greater than $200,000. BACKGROUND Central San reduces treatment plant (plant) odors by using several types of odor control facilities. Chemical towers neutralize the odors by spraying sodium hypochlorite against foul air and are located near the headworks, solids conditioning building, and primary clarifiers. Other odor control facilities include a biofilter for dissolved air flotation tanks, activated carbon vessel for emergency sludge load out, and foggers that mist an odor neutralizing liquid near the primary sedimentation and aeration tanks. The odor control facilities have performed well over many years due to exceptional operation and maintenance practices. However, most of the current facilities have been in service for over twenty-five years, and some of the infrastructures are showing signs of deterioration. Central San's Odor Control Facilities Plan was originally completed in 1998 and last updated in 2006. November 13, 2023 EOPS Regular Committee Meeting Agenda Packet - Page 3 of 14 Page 2 of 10 Two projects are listed in the 10-Year Capital Improvement Plan to address the deficient infrastructure for the plant odor control facilities, as follows: Odor Control Repairs, Solids Conditioning Building - project goal is to address near -term improvements and has a budget of $1.5 million dollars beginning in Fiscal Year (FY) 2024-25; and 2. Odor Control I mprovements Phase 2 - project budget of $15 million and beginning in FY 2027-28. Staff is proposing to initiate the planning for these projects and update the Odor Control Facilities Plan this FY while in parallel, completing detailed condition assessment of existing equipment and exploring ways to optimize operations and maintenance costs. The Project will then compile results as a comprehensive asset evaluation which estimates remaining useful life based on the condition of the infrastructure, capacity, regulatory, and sustainability/optimization drivers. An alternatives analysis will then be completed to compare rehabilitation or replacement through a benefit cost evaluation. Following the completion of the analysis, a preliminary design will be developed for all near -term improvements. This project will also coordinate with other ongoing projects in construction such as Solids Handling Facility Improvements - Phase 1A, District Project 7348. On September 6, 2023, a formal Request for Proposal (RFP) was publicly advertised, and two (2) consulting firms responded with proposals. After evaluating the proposals based on qualifications and overall ratings, staff invited both consulting firms, Brown and Caldwell and Jacobs Solutions, Inc. (Jacobs), to participate in an interview on October 30, 2023. After the conclusion of the interviews, Jacobs was selected and scored as the top proposer and is, therefore, recommended for the Project. The Project scope of work includes the following: Condition Assessments: Evaluate and provide a detailed condition assessment of the existing odor control facilities to estimate the remaining useful life. Additionally, identify improvements which could extend the remaining useful life and improve safety. 2. Sampling, Model Update, and Optimization Evaluation: Perform field sampling to update models from the 2006 Odor Control Facilities Plan. Evaluate opportunities to improve energy and chemical dosing efficiency. 3. Comprehensive Asset Evaluation: Estimate the remaining useful life based on aging infrastructure, capacity, regulatory, and sustainability/optimization drivers. 4. Alternatives Evaluation: Evaluate alternatives for equipment rehabilitation to extend the remaining useful life versus rehabilitation. Develop phasing plan for equipment rehabilitation and replacement. 5. Pre -Design Report: Develop 10% pre -design of the selected alternative and cost estimate. 6. Detailed Design and Engineering Services during Construction: Included as part of the RFP process for future work, however, will not be included in the agreement and will require future Board actions based on the scope of work recommended by staff. ALTERNATIVES/CONSIDERATIONS The Board may elect to stay on the current plan for the Project, which starts in FY 2024-25. This is not recommended as staff plans to do a comprehensive evaluation and assessment, which requires time and starting early is beneficial to addressing any deficient equipment or infrastructure. Modifications or improvements to the odor control facilities require permitting from the local air authority and based on previous experience, obtaining permits can take significant time. November 13, 2023 EOPS Regular Committee Meeting Agenda Packet - Page 4 of 14 Page 3 of 10 FINANCIAL IMPACTS The total estimated cost for the planning and preliminary work for the Project is $450,000, which includes consultant services for $350,000, staff time, and contingency for additional testing services. Final design services and engineering services during construction are not currently budgeted under this agreement. Central San will negotiate those services with Jacobs and request approval from the Board as the Project progresses. The total estimated project cost may reach up to $16.5 million, and likely to be phased as projected in the 10-Year Capital I mprovement Plan. The costs for project(s) will be updated after the planning phase. COMMITTEE RECOMMENDATION The Engineering and Operations Committee reviewed this item at its meeting on November 13, 2023 and recommended RECOMMENDED BOARD ACTION Staff recommends the Board approve a contingency project in the amount of $450,000 for the Treatment Plant Odor Control Facilities Improvements; and authorize the General Manager to execute a professional engineering services agreement with Jacobs Solutions, I nc. in an amount of $350,000 for planning and pre -design services. Strategic Plan Tie -In GOAL SIX: Infrastructure Reliability Strategy 1 - Manage assets optimally, Strategy 2 - Execute long-term capital renewal and replacement program GOAL SEVEN: Innovation and Agility Strategy 2 - Implement organization -wide optimization ATTACHMENTS: 1. Presentation November 13, 2023 EOPS Regular Committee Meeting Agenda Packet - Page 5 of 14 Page 4 of 10 November 13, 2023 Treatment Plant Odor Control Facilities Improvements Project Engineering & Operations Committee Meeting Nitin Goel Operations Optimization Division Manager Project Background 41 Central San reduces treatment plant odors by using several odor control facilities. Chemical towers spray sodium hypochlorite against foul air and are located near the headworks, solids conditioning building, and primary clarifiers. Other odor control facilities are a biofilter for dissolved air flotation tanks, activated carbon vessel for emergency sludge load out, and foggers that mist an odor neutralizing liquid near the primary clarifiers and aeration tanks. The odor control facilities have performed well due to exceptional operation and maintenance. However, most have been in service for over twenty-five years and are showing signs of deterioration. i November 13, 2023 EOPS Regular Committee Meeting Agenda Packet - Page 6 of 14 1 Page 5 of 10 Odor Control Facilities O Headworks —Chemical Tower © Primaries— Chemical Tower Primaries— Foggers 4 Secondary Treatment —Foggers F r © Solids Control Building — Biofilter Solids Control Building— Chemical Tower '�; •� :" O Emergency Sludge Load Out — Carbon Vessel Chemical Towers Headworks Primary Sedimentation Solids Conditioning Building November 13, 2023 EOPS Regular Committee Meeting Agenda Packet - Page 7 of 14 2 Page 6 of 10 Other Odor Control Units Planning for Rehabilitation and Replacement Two projects are listed in the 10-Year Capital Improvement Plan to address the deficient infrastructure: Odor Control Repairs, Solids Conditioning Building - project goal is to address near -term improvements and has a budget of $1.5 million dollars beginning in Fiscal Year (FY) 2024-25 Odor Control Improvements Phase 2 - project budget of $15 million and beginning in FY 2027-28 Staff is proposing to initiate a new project, Treatment Plant Odor Control Facilities Improvements (Project). The Project updates the Odor Control Facilities Plan this FY while completing detailed equipment condition assessment and exploring ways to optimize operations and maintenance costs. This Project will also coordinate with other ongoing projects such as Solids Handling Facility Improvements - Phase 1A, District Project 7348. November 13, 2023 EOPS Regular Committee Meeting Agenda Packet - Page 8 of 14 3 Page 7 of 10 Project will Update Odor Control Facilities Plan and Identify Near -Term Improvements Opdmize existing treatment Comply with regulations Energy.aentimprovemems K16 III andconlinuetoadhereto Resource recoverythem as they evolve or Recycled water become stricter in the Seismic and flooding events future Consultant Selection Two proposals received: Brown and Caldwell and Jacobs Solutions, Inc. (Jacobs) Both firms interviewed on October 30, 2023 Jacobs selected and scored as the as top proposer and is therefore recommended for the Treatment Plant Odor Control Facilities Improvements Project November 13, 2023 EOPS Regular Committee Meeting Agenda Packet - Page 9 of 14 4 Page 8 of 10 Project Schedule Notice to Proceed: January 2024 Condition Assessment, Evaluations, and Pre -Design: February— November 2024 Final Design and Engineering Services during Construction: TBD Financial Impacts The total estimated cost for the planning and preliminary work for the Project is $450,000, which includes consultant services for $350,000, staff time, and contingency for additional testing services. Final design services and engineering services during construction are not currently budgeted under this agreement. Central San will negotiate those services with Jacobs and request approval from the Board as the Project progresses. The total estimated project cost may reach up to $16.5 million, and likely to be phased as projected in the 10-Year Capital Improvement Plan. The costs for project(s) will be updated after the planning phase. November 13, 2023 EOPS Regular Committee Meeting Agenda Packet - Page 10 of 14 5 Page 9 of 10 Alternatives/Considerations The Board may elect to stay on the current plan for the Project, which starts in FY 2024-25. This is not recommended as staff plans to do a comprehensive evaluation and assessment, which requires time and starting early is beneficial to addressing any deficient equipment or infrastructure. Modifications or improvements to the odor control facilities require permitting from the local air authority and based on previous experience, obtaining permits can take significant time. Recommended Board Action Staff recommends the Board approve a contingency project in the amount of $450,000 for the Treatment Plant Odor Control Facilities Improvements Project; and authorize the General Manager to execute a professional engineering services agreement with Jacobs in an amount of $350,000 for planning and pre -design services. November 13, 2023 EOPS Regular Committee Meeting Agenda Packet - Page 11 of 14 6 Page 10 of 10 November 13, 2023 EOPS Regular Committee Meeting Agenda Packet - Page 12 of 14