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HomeMy WebLinkAbout15.b. Committee Minutes - (Special) Engineering & Operations - 06-05-24Page 1 of 9 Item 15.b. LICENTRAL SAN June 20, 2024 FROM: KATIE YOUNG, SECRETARYOF THE DISTRICT SUBJECT: JUNE 5, 2024 - ENGINEERING & OPERATIONS COMMITTEE - CHAIR MCGIILL AND MEMBER WEDINGTON Attached are minutes of the above Committee meeting. ATTACHMENTS: 1. E&O Committee Minutes (Special) 06-05-24 June 20, 2024 Regular Board Meeting Agenda Packet - Page 122 of 130 Page 2 of 9 LCENTRAL SAN SPECIAL MEETING OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT ENGINEERING & OPERATIONS COMMITTEE MINUTES Wednesday, June 5, 2024 8:30 a.m. Committee: Chair Mike McGill Member Florence Wedington BOARD OF DIRECTORS: MARIAHN LAURITZEN President MICHAEL R. MCGILL President Pro Tem BARBARA D. HOCKETT TAD J PILECKI FLORENCE T. WEDINGTON PHONE: (925) 228-9500 FAX: (925) 372-0192 www.central,5aii.org Staff. Roger S. Bailey, General Manager (arrived during Item 3.a.) Katie Young, Secretary of the District Greg Norby, Deputy GM — Engineering & Operations Philip Leiber, Deputy GM — Administration (arrived during Item 3.b.) Danea Gemmell, Planning and Development Services Division Manager Edgar Lopez, Capital Projects Division Manager Paul Seitz, Collection Systems Operations Division Manager Clint Shima, Senior Engineer (left after Item 3.a.) Dan Frost, Senior Engineer (joined during Item 3.d. and left after Item 3.d.) Dana Lawson, Senior Engineer (left after Item 3.d.) Sasha Mestetsky, Senior Engineer Thomas Brightbill, Senior Engineer (left after Item 3.c.) Geoff Michalczyk, Management Analyst Stacey Durocher, Administrative Services Assistant Call Meetina to Order Chair McGill called the meeting to order at 8:30 a.m. 2. Public Comments None. June 20, 2024 Regular Board Meeting Agenda Packet - Page 123 of 130 Page 3 of 9 Engineering & Operations Committee Minutes (Special) June 5, 2024 Page 2 3. Items for Committee Recommendation to Board a. Review draft Position Paper to authorize the General Manager to purchase natural gas through an existing service agreement with Shell Energy North America, LP for the period of January 1, 2026, through December 31, 2026, up to 1,200 dekatherms per day at a price not to exceed $7.00 per dekatherm, excluding transportation service costs Mr. Shima provided an overview of the draft Position Paper included in the agenda materials. He stated that Central San uses approximately 430,000 dekatherms (dth) of natural gas annually or approximately 1,200 dth per day for the Treatment Plant's Cogeneration System. For 2024, the District has pre -purchased 1, 000/dth per day of natural gas at $5.54/dth. Member Wedington asked if $7.00 was the maximum price per dth per day. Mr. Shima responded yes and stated that pre -purchasing allows the District to respond to market changes by locking in fixed pricing. Mr. Norby stated that the District's energy profile is unique and relatively complex, and it is important how we manage it. The information provided in the draft Position Paper is very clear, and the recommendation has been carefully thought out. There will be further discussions regarding the District's energy roadmap in the future. COMMITTEE ACTION: Recommended Board approval. b. Review draft Position Paper to hold a public hearing on June 20, 2024, to consider approval of the Charles Hill Road Contractual Assessment Districts (CAD) No. 2023-1 in Orinda, District Project (DP) 6747; and • Adopt proposed Resolution 2024-XXX confirming compliance with California Constitution, Article XIII D, Section 4 (Proposition 218); and Adopt proposed Resolution 2024-XXX approving the engineer's report, assessments, financing period, and interest rate to be changed on financed assessments and ordering the improvements; and Authorize the General Manager to execute an agreement with Charles Hill Road CAD No. 2023-1 participants. Mr. Brightbill provided some background information on the CAD process and an overview of the draft Position Paper included in the agenda materials. He stated that Charles Hill Road includes three parcels that would benefit from the improvements of this CAD project and that all property owners are participating. June 20, 2024 Regular Board Meeting Agenda Packet - Page 124 of 130 Page 4 of 9 Engineering & Operations Committee Minutes (Special) June 5, 2024 Page 3 Member Wedington asked if the residents are able to choose the contractor. Mr. Brightbill responded yes. The property owners hire the engineer and select a contractor from the three bids they receive. Chair McGill referred to Page 3 of 43 Alternatives/Consideration and asked staff to keep the standard 10-year financing term as an alternative for the Board. COMMITTEE ACTION: Recommended the Board hold the public hearing for June 20, 2024, at 2:30 p.m. to consider adopting proposed Resolution 2024-XXX, confirming compliance with the California Constitution, Article XIII D, Section 4 (Proposition 218); and the proposed Resolution 2024-XXX approving the engineer's report, assessments, financing period, interest rate to be changed on the financed assessments and ordering the improvements; and authorizing the General Manager to execute an agreement with Charles Hill Road CAD No. 2023-1 participants. C. Review draft Position Paper to hold a public hearing on June 20, 2024, to consider approval of the Houston Court Area Contractual Assessment Districts (CAD) No. 2022-1 in Danville, District Project (DP) 6745; and • Adopt proposed Resolution 2024-XXX confirming and levying final assessments; and • Adopt proposed Resolution 2024-XXX directing that the Fiscal Year (FY) 2024-25 assessments be placed on the Contra Costa County (CCC) property tax roll for collection; and • Adopt proposed Uncodified Ordinance No. XXX establishing reimbursement fees for the properties that connect to District Project 6745 (Houston Court Area CAD No. 2022-1). Mr. Brightbill provided an overview of the draft Position Paper included in the agenda materials. He stated that the Houston Court CAD project consists of four parcels, and three property owners are participating in the CAD project. The construction work has been completed and assessments can be placed on the tax roll. In response to Member Wedington's question regarding the annual financing fees, Ms. Gemmell stated that the fees seem low because the Houston Court CAD is under the 20-year term financing plan. COMMITTEE ACTION: Recommended the Board hold the public hearing for June 20, 2024, at 2:30 p.m. to consider adopting the proposed Resolution 2024-XXX, confirming, and collecting final assessments; adopt the proposed Resolution 2024-XXX to place the FY 2024-25 assessments on the CCC property tax roll for collection; and adopt the proposed Ordinance No. XXX establishing reimbursement fees for the properties that connect to DP 6745 Houston Court Area CAD No. 2022-1. June 20, 2024 Regular Board Meeting Agenda Packet - Page 125 of 130 Page 5 of 9 Engineering & Operations Committee Minutes (Special) June 5, 2024 Page 4 d. Review draft Position Paper to authorize the General Manager to execute a technical consulting services agreement with National Plant Services, Inc. (NPS) in an amount not to exceed $11,500,000 to provide inspection of large diameter pipes, siphons, and force mains; authorize a budget transfer in the amount of $597,000 from DP 8444 and $1,200,000 from the Capital Improvement Budget (CIB) contingency to DP 8443; and find District Projects 8443 and 8444 are exempt from the California Environmental Quality Act (CEQA) Mr. Norby provided the Committee with an overview of the ongoing asset management program for major asset classes. These three asset classes still need a baseline condition assessment in order to support the overall asset management cycle, similar to where we are for the treatment plant, pump stations, and small diameter gravity sewer assets. He noted that industry experience shows that typically 80-90 percent of the risk resides in 10-20 percent of the assets, so this project will help find that 20 percent or less of the pipe needs attention. He complimented staff on the cross - division collaboration in getting this important condition assessment program together. In response to a question posed by Chair McGill regarding what percentage of problems staff anticipates finding within the 88 miles of pipe, Mr. Seitz stated that he expects the number of problems to be minimal because most large diameter pipes either have T-lock or some other kind of liners in them. He said there may be some corrosion or delamination issues requiring spot repair, as well as some other small, localized issues in the junction structures rather than in the actual pipes. Ms. Lawson provided an overview of the draft Position Paper included in the agenda materials. She said Central San has 88 miles of large diameter piper greater than 18 inches, which includes approximately 3,800 feet with a siphon configuration and 1,200 maintenance access holes. Most of these assets are 50 years old or older and one of the main drivers of this project is that the condition of these pipes is not well understood. It is a good time for a comprehensive condition assessment to prevent early failure and to develop an inspection program based on the deterioration rates that will be identified. Chair McGill asked if siphons were being referenced as intentional sags. Ms. Lawson responded yes, they are intentional sags because they go under creeks and the pipes are too large to be suspended over the creeks. June 20, 2024 Regular Board Meeting Agenda Packet - Page 126 of 130 Page 6 of 9 Engineering & Operations Committee Minutes (Special) June 5, 2024 Page 5 In response to Chair McGill's question regarding the composition of the pipes that were built in the 1950's, Ms. Lawson stated that most of the larger pipes are reinforced concrete pipe, and the other pipes are polyvinyl chloride (PVC) pipe and vitrified clay pipe (VCP) as noted on Slide 4 of the presentation. A discussion ensued regarding the 39-inch pipe that will be abandoned, and Member Wedington asked what the process was for that. Ms. Lawson stated that when pipes are abandoned, normally they are filled with low density controlled low strength material (LD-CLSM). However, staff is proposing to remove this portion of the 39-inch pipe that crosses Grayson Creek because it is located in a flood control channel. Chair McGill asked if cleaning the pipes was separate from the inspection. Ms. Lawson stated that cleaning may or may not be needed in order to perform the inspections. The current estimate is an allowance and will not cover 88 miles of cleaning but was recommended by National Plant Services (NPS). In response to Mr. Bailey's question regarding the total cost of the project, Ms. Gemmell stated $11.5 million and if no cleaning is needed it will be less. Ms. Lawson stated that at this time, staff is asking the Board for a cost ceiling of $11.5 million. Member Wedington asked what the balance would be in the contingency fund after the transfer for this project. Ms. Gemmell stated that this project was delayed last year. $1 million of these funds were transferred back to the contingency account last year and are now being returned to the project. After the transfer, there will be $3.8 million in the contingency account for FY 2024-25. Ms. Lawson stated that only one proposal was received on April 3, 2024, from NPS. Staff determined that NPS has the experience and resources to organize, plan and perform the field work and provide the final engineering report. A discussion ensued regarding National Plant Services' reputation for this type of work. Mr. Norby stated that the District has a good process in place to adaptively manage the project over each of the five years based on the prior year's progress and any lessons learned. Mr. Leiber suggested that given some potential concerns about the classification of elements of this program as either capital or Operations & Maintenance (O&M), that adding a recommendation for the Board to adopt the program as part of the Regulatory Accounting policy specified in BP 046 was advisable. He stated that this project may fall within a grey area between maintenance and construction and is something that the auditors may question. He noted that under BP 046, Regulatory Accounting, the project could be classified as a Capital project. June 20, 2024 Regular Board Meeting Agenda Packet - Page 127 of 130 Page 7 of 9 Engineering & Operations Committee Minutes (Special) June 5, 2024 Page 6 Mr. Bailey asked if there was a presumption that this would end up being a Capital project. Mr. Norby stated this is an investment and it is necessary to understand the condition of our assets, and thereafter perform capital improvement work as required. He agrees this project is in a grey area and can be looked at as maintenance but is more practical as a Capital project. Ms. Gemmell stated there will be an annual report on the findings to provide further information on recommendations and how to capitalize this project going forward. Chair McGill complimented staff on doing a great job and on all of the hard work that has been done to put this effort together. COMMITTEE ACTION: Recommended Board approval. 4. Other Items a. Receive update on Capital Projects construction, major changes and potential change orders Mr. Lopez provided an overview of the presentation provided in the agenda materials. He discussed major construction updates on the Pump Station Upgrades, Phase 2A project and a potential change order for the Aeration Basins Diffuser Replacement, Phase 1 project. Aeration Basins Diffuser Replacement. Phase 1: Mr. Lopez stated that demolition of the concrete plenums has begun, and additional air leaks beyond what was expected were found on the floor of the basin. Prior to pouring the new concrete, the air leaks have to be addressed. Staff has executed a $200, 000 Work Directive, to complete air leak sealing for the current basin, and expects to bring a future change order back for next season's work in the remaining basin based on costs for this season's work. Chair McGill stated that there have been air leaks for 20 years. Mr. Lopez stated that improvements were made to cover the air leaks, but they are more evident now. Pump Station Upgrades Phase 2A: (Maltby Pump Station) The Department of Toxic Substances Control (DISC) permit is being managed by the Districts' Regulatory Compliance Group. A contract allowance was added to mitigate, remove and make improvements related to the permit and the contaminated soil. Mr. Lopez stated that staff is requesting to use the allowance built into the project and is recommending the removal of the remaining five feet of soil and installation of a barrier. This will prevent future permitting requirements and monitoring. June 20, 2024 Regular Board Meeting Agenda Packet - Page 128 of 130 Page 8 of 9 Engineering & Operations Committee Minutes (Special) June 5, 2024 Page 7 Mr. Bailey asked how the soil was being classified and what was being done with it. Mr. Lopez stated that the soil is tested and classified and sent to the appropriate landfill. There has been no hazardous class 1 type material found on the site. Mr. Lopez introduced a new slide in the presentation and provided a short overview of the Solids Handling Facility Improvements, Phase 1A project and the Martinez Urgent Forcemain Replacement project that may have future cost impacts. Due to time constraints, this item was not heard in its entirety. COMMITTEE ACTION: The Committee requested that the remainder of this item be postponed until the next Engineering & Operations meeting. 5. Announcements Mr. Bailey had two announcements: 1) The Regional Water Board rescheduled the public hearing on Nutrients from June 12, 2024, to July 10, 2024. 2) An Occupational Safety and Health Administration (OSHA) complaint was received about the Solids Handling project. Staff is working on a formal response. 6. Suggestions for Future Agenda Items a. Receive list of upcoming agenda items and provide suggestions for any other future agenda items None. COMMITTEE ACTION: Received the list and provided input to staff. 7. Future Scheduled Meetings Wednesday, july 10, 2024 at 8:30 a.m. (changed) Monday, July 15, 2024 at 9.30 a.m. (Special) Wednesday, August 7, 2024 at 8:30 a.m. Wednesday, September 4, 2024 at 8.30 a.m. June 20, 2024 Regular Board Meeting Agenda Packet - Page 129 of 130 Page 9 of 9 Engineering & Operations Committee Minutes (Special) June 5, 2024 Page 8 8. Tour a. Staff will conduct a tour of the Collection System Offices (CSO) including the overflow estimator and pipe cleaning demonstrator Note: No decisions or actions will be made or taken by the Committee during the tour. Any member of the public that may appear will be accommodated; proper personal safety equipment must be worn during the tour. Staff conducted a tour and provided the committee with a demonstration on overflow estimation and provided a pipe cleaning demonstration. 9. Adjournment — at 10:48 a.m. June 20, 2024 Regular Board Meeting Agenda Packet - Page 130 of 130