HomeMy WebLinkAbout03.b. Amend a Professional Engineering Services Agreement up to $450,000 with HDR Engineering, Inc. Increasing the Cost Ceiling to $1,850,000 for Additional Design Services & Improvements Under the Steam Renovations, Phase 1, DP 100032Page 1 of 10
Item 3.b.
DCENTRALSAN
MEETING DATE: MAY8, 2024
BOARD OF DIRECTORS
POSITION PAPER
DRAFT
SUBJECT: REVIEW DRAFT POSITION PAPER TO AUTHORIZE THE GENERAL
MANAGER TO AMEND A PROFESSIONAL ENGINEERING SERVICES
AGREEMENT UP TO $450,000 WITH HDR ENGINEERING, INC.,
INCREASING THE COST CEILING TO $1,850,000 FOR ADDITIONAL
DESIGN SERVICES AND IMPROVEMENTS UNDER THE STEAM
RENOVATIONS, PHASE 1, DISTRICT PROJECT 100032
SUBMITTED BY: INITIATING DEPARTMENT:
MIKE ZUBRZYCKI, ASSOCIATE ENGINER ENGINEERING AND TECHNICAL SERVICES-
NATHAN HODGES, SENIOR ENGINEER CAPITAL PROJECTS
REVIEWED BY: EDGAR J. LOPEZ, CAPITAL PROJECTS DIVISION MANAGER
GREG NORBY, DEPUTY GENERAL MANAGER - OPERATIONS
ROGER S. BAILEY, GENERAL MANAGER
ISSUE
Authorization of the Board of Directors (Board) is required for the General Manager to execute an
amendment to a professional engineering services agreement for amounts greater than $200,000.
BACKGROUND
On March 3, 2022, the Board authorized the Steam Renovations, Phase 1 (Project) and a professional
engineering services agreement for $1,400,000 with HDR Engineering, I nc. (HDR) for final design and
bidding services. The Project addresses the treatment plant steam system's immediate needs and is
coordinated with other potential steam system phases. The scope of work was developed after extensive
condition assessment evaluations under the Aeration and Energy Upgrades project.
Staff and HDR have been progressing with the bid package and with design at 90 percent for the initial
scope items in the Pump and Blower Building (P&BB) and the Solids Conditioning Building (SCB).
Approximately 50 percent of the construction work is within the SCB, which consists of replacing portions
of the boiler feed water (B FW) system that are critical for the operation of the waste heat boilers, auxiliary
boilers, and cogeneration heat recovery boiler. Boiler operation produces steam which drives the aeration
system, a large part of why the steam system is so critical to treatment plant operations.
The BFW system was installed in the 1970s as part of the 5A Treatment Plant Expansion project, and the
original design was based upon additional equipment and loads in the SCB that were never installed. A
May 8, 2024 EOPS Regular Committee Meeting Agenda Packet - Page 12 of 23
Page 2 of 10
detailed evaluation of the BFW system was part of the final design scope and was submitted in June of
2023. HDR's evaluation included a detailed piping stress analysis which staff agreed would be necessary
to address safety and operational concerns with the system. The analysis has exposed deficiencies and
concerns with the existing BFW system beyond the initial project. For example, pipe fittings not rated for
system pressure and insufficient pipe supports for thermal expansion and seismic restraint.
The project team attempted to resolve the deficiencies identified in the BFW evaluation within the original
scope and fee, however, it became clear that the effort required was greater than anticipated. The entire
BFW system needed to be analyzed and subsequently designed as a complete system. In other words,
the BFW pump replacement (an original scope of work item) could not be finalized independently from the
BFW piping. The BFW system deficiencies, combined with the need to maintain an operational and
reliable steam system during construction, led to the decision to design an entirely new BFW system
(pumps and piping) parallel to the existing system. This design effort was not anticipated nor included in
the original scope of work.
This additional effort by HDR will result in a new BFW system that meets current safety standards and
operational requirements for the steam system. The design effort includes replacing two steam -driven
BFW pumps and one electric pump with three electric pumps sized to current steam demands and
redundancy needs, and new piping sized for current flows and pressures.
However, due to the additional time required to design the BFW system and the urgent need to complete
the improvements in the P&BB, HDR will be splitting the work into two separate bid packages. The first
package will include replacement of the steam condenser units and all work within the P&BB. These units
have shown degrading condition over recent inspections and the loss of these units would remove a steam
aeration turbine from operation. The design work for the BFW and other improvements in the SCB will be
completed by the end of the year. By separating these scope items into two separate construction
contracts with staggered schedules, staff can better mitigate risks to treatment plant operations.
The additional design identified with the BFW system and splitting the original bid package requires more
design budget at a level of effort that is estimated not to exceed $450,000. As completion of the SCB bid
package nears, staff will evaluate the coordination with the Solids Handling Facility Improvements, Phase
1 A (Solids Phase 1 A) project construction.
California Environmental Quality Act (CEQA)
At the March 4, 2022 Board meeting, the Board independently found that the Project is exempt from
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. No further action is anticipated.
ALTERNATIVES/CONSIDERATIONS
The authorization being requested will allow the design to include the additional BFW scope needed to
properly replace the major system components and allow the construction flexibility recommended by
Operations and Engineering. Staff has already started evaluating the timing of the SCB work, including the
increased BFW scope, with the Solids Phase 1 A project and determining the best time for its
replacement. The Board could provide other direction or not authorize the design amendment, however
rejecting the amendment is not recommended since the major BFW equipment (pumps) has known
deficiencies and is nearing the end of its useful life.
May 8, 2024 EOPS Regular Committee Meeting Agenda Packet - Page 13 of 23
Page 3 of 10
FINANCIAL IMPACTS
The existing HDR agreement (No. 32135) has a cost ceiling of $1,400,000. The amendment would add
$450,000, resulting in a new cost ceiling of $1,850,000.
The current engineer's estimate for construction is $8,000,000, therefore the design represents
approximately 23 percent of the estimated construction costs. This design percentage is higher than seen
in typical District projects (15 percent); however, this project is highly specialized, and the BFW evaluation
needed for making decisions added significant time and cost. In addition, the design requires a high level
of accuracy and detail to renovate the system considering safety and operational constraints.
The Project is listed in the Fiscal Year 2023-24 Budget on page 267 with a total estimated project budget
of $16,000,000. There is adequate funding available in the Project budget.
COMMITTEE RECOMMENDATION
The Engineering and Operations Committee reviewed this matter at its meeting on May 8, 2024 and
recommended
RECOMMENDED BOARD ACTION
Authorize the General Manager to amend a professional engineering services agreement up to $450,000
with HDR Engineering, Inc., increasing the cost ceiling to $1,850,000 for additional design services and
improvements under the Steam Renovations, Phase 1, District Project 100032.
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 FIVE: Safety and Security
Strategy 1 - Reduce and eliminate risks of injury or illness, 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. Presentation
May 8, 2024 EOPS Regular Committee Meeting Agenda Packet - Page 14 of 23
Page 4 of 10
Attachment 1
Extensive Condition Assessments (Secondary and Steam Assets)
Sub 33
Aeration Basins Diffuser
Replacement, District ®ii a®� ° r ,_
nF9
Project (DP) 100019
Sub34 •r
Electric Blower � A
cam..
Improvements, DP
- -
100015
A�
IlYllllli°°' Sub 73
2
May 8, 2024 EOPS Regular Committee Meeting Agenda Packet - Page 15 of 23 1
Page 5 of 10
Steam Renovations, Phase 1
Project Background
2019 2020 2021 2022
rL
December 2018 July 2020 September 2020
Board approved Board approved Electric P January May 2021 March 2022
Staff provided Staff provided Board approved Board approved Final
Steam Project for Blower Improvements, Board updates Board updates on Aeration Basins Design for Steam
Condition Assessment DP 100015 for Final Design on Condition Comprehensive Diffuser Renovations, Phase 1
and Preliminary Assessment Asset Evaluation Replacement for Project
Design under Project Results Results Final Design
DP 7349
Steam System Overview
E
Legend:
Steam Renovations, Phase 1, DP 100032
Scum Centrifuge
Syalem ..,Water
Q Support Operations & Maintenance
--
Haater Exchanger
No Work Anticipated: Remaining useful life > 15 years
Copolymer
(to Boilers)
Heat
.
,• Chemical Feed I
Electric Blower Exchanger
condenser Ber
CoM) War Hot
Icwl amps wa
Loop
Final Return
Eir%
Water Heaters
Potable Conch Deaerator 1
1
Makeup Storage Tank 1 -CB
Water
�sY6erJ
VAU
Waste Steam
CW
`Sca=en&e!
Amine j
CW Return I I
Cwurn
Solids Conditioning Building (SCB)
4
IGSC II Vacuum, Hogger,&Aeration Unit
Hotwell Pumps
I E IIIIIIIIIIIIIIIIIIIIIIIIIIII mI
Condensate Return Condensate Return
Pump and Blower Building (P&BB)
May 8, 2024 EOPS Regular Committee Meeting Agenda Packet - Page 16 of 23 2
Page 6 of 10
Steam Project Design Scope
In general, original scope of work based on extensive condition assessment and
safety needs:
1. Work in P&BB:
Two waste steam exchangers
Two aeration blower turbine condensers
At the end of useful life and significant
maintenance concerns; Replacement ASAP
Requires 20" #3 water piping reroute for
installation
2. Work in SCB:
Two deaerator pumps
Replacing two steam -driven boiler feed
water (BFW) pumps and one electric pump
with three electric pumps with variable
frequency devices
Two boiler chemical feed tanks
Limited BFW items (i.e. valves)
Replace sample panels - Complete (Safety
Concerns)
Construction Completed to Date
Construction Completed . Date via Uniform Public Construction Cost Accounting Act Project due to Safety Needs:
Installed New Boiler Sample Stations
led
D CENTRAL SAN
h W{# CENTRAL CONTRA COSTA SANITARY DISTRICT
Ilk
May 8, 2024 EOPS Regular Committee Meeting Agenda Packet - Page 17 of 23 3
Page 7 of 10
1. P&BB Scope Items
Waste Steam Exchangers
5
iY
2. SCB Scope Items
Deaerator Pumps
Aeration Blower Turbine Condensers
rH
wl+
Pump Replacement — Replace steam
driven pumps with electric
'' Nj,,
May 8, 2024 EOPS Regular Committee Meeting Agenda Packet - Page 18 of 23 4
Page 8 of 10
Current Design Status
Steam Regulators
Original Scope of Work at 90% Detailed Design
However, additional scope was identified:
HDR Engineering, Inc. (Designer) has completed analysis
to identify new pipe sizing, supports/braces, and initial
pump sizing
BFW piping and fittings do not meet current
mechanical code
Piping fails stress analysis for thermal and seismic
Some fittings do not meet current steam operating
pressures
Design Agreement Revision & Costs
BFW piping system stress analysis and
modeling exposed deficiencies
Sizing the BFW system for current demands
Keeping BFW system operational while
completing project scope
Additional time needed to design the BFW
system to include with the original scope in
the SCB
Coordinate impacts with the Solids
Handling Facility Improvements, Phase 1A
(Solids Phase 1A) Project
Separate bid package for the P&BB work as
items cannot wait due to tube condition
and operational risks
Revision to add $450,000 to the $1.4
million (M) Agreement with HDR
Engineering, Inc.
May 8, 2024 EOPS Regular Committee Meeting Agenda Packet - Page 19 of 23 5
Page 9 of 10
Anticipated Construction Schedules
Project scope will be bid separately
1. P&BB to bid first:
Bid expected mid 2024
Equipment lead time —3 months
Construction begin in early 2025
2. SCB to be evaluated:
Design expected by December 2024
Bidding and construction TBD due to Solids
Phase 1A
Estimates & Budget
1. P&BB Scope:
Current Construction Cost Estimate $21VI
2. SCB Scope:
Current Construction Cost Estimate $61VI
Sufficient budget available; project listed
on page 267 of Fiscal Year 2023-24 Budget:
Design $3.5M
Construction $12.5M
Total Budget $16.01VI
May 8, 2024 EOPS Regular Committee Meeting Agenda Packet - Page 20 of 23 6
Page 10 of 10
Recommended Board Action
Authorize the General Manager to amend a professional engineering
services agreement up to $450,000 with HDR Engineering, Inc.,
increasing the cost ceiling to $1,850,000 for additional design services
and improvements under the Steam Renovations, Phase 1, District
Project 100032.
May 8, 2024 EOPS Regular Committee Meeting Agenda Packet - Page 21 of 23 7