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HomeMy WebLinkAbout2009-05 OPS "Corrected" MINUTES OF THE OPERATIONS COMMITTEE Engineering, Operations & Maintenance, and Technical Services Orange County Sanitation District May 6, 2009—5:00 p.m. A meeting of the Operations Committee of the Orange County Sanitation District was held on May 6, 2009, at 5:00 p.m. in the District's Administrative Office. A quorum was declared present, as follows: Operations Directors Present: Staff Present: Bill Dalton, Chair Jim Ruth, General Manager David Shawver, Vice Chair Bob Ghirelli, Assistant General Manager Charles Antos Nick Arhontes, Dir. of Operations & Maintenance Tom Beamish Jim Herberg, Director of Engineering Troy Edgar Ed Torres, Director of Technical Services Roy Moore Lorenzo Tyner, Director of Finance and Joy Neugebauer Administrative Services Sharon Quirk Lilia Kovac, Committee Secretary Fred Smith Dean Fisher Constance Underhill Norbert Gaia Leslie Daigle Tod Haynes Doug Davert, Board Chair John Linder Larry Crandall, Board Vice Chair Gary Conklin Carla Dillon Operations Directors Absent: Juanita Skillman Harry Sidhu Simon Watson Chuck Winsor Others: Gino Rampagna, IPMC �D�NKTF�E rtAFI %pF cr Bob Ooten, Aft. Director C4'A t Ninl PUBLIC COMMENTS MAY 2 0 2009 There were no public comments. BY: REPORT OF COMMITTEE CHAIR Committee Chair Dalton did not give a report. REPORT OF GENERAL MANAGER Lorenzo Tyner, Director of Finance and Administrative Services, briefly reported that debt issuance had been delayed in March, but issued on April 22, 2009 at a lower rate than Minutes of the Operations Committee May 6, 2009 Page 2 anticipated, resulting in greater savings. Mr. Tyner also reviewed the Sanitation District's projected revenues for 2009-10. CONSENT CALENDAR 0 - 12) 1. MOVED, SECONDED, AND DULY CARRIED: Approve the minutes of the April 1, 2009 Operations Committee meeting. 2. a) MOVED, SECONDED, AND DULY CARRIED: Award a purchase order contract to J.F Shea Co., Inc. for Replacement of Three (3) Hazardous Materials Storage Lockers/Modules & Shower Eye/Face Wash Station at Plant 2, Specification No. S-2009-401BD, for an amount not to exceed $186,000; and, b) Approve a contingency of$13,020 (7%). 3. a) MOVED, SECONDED, AND DULY CARRIED: Approve a sole source purchase order to be issued to Putzmeister America, Inc. for Plant 2 No. 4 Cake Transfer Pump Repair Services, for an amount not to exceed $110,000; and, b) Approve a contingency of$22,000 (20%). 4. MOVED, SECONDED, AND DULY CARRIED: Ratify Change Order No. 1 to Purchase Order No. 71172-OS issued to Jamison Engineering for Plant 1 Headworks Splitter Box No. 3 Channel Repair Services for an additional amount of$22,000, increasing the total amount not to exceed $125,180. 5. Item pulled for discussion. 6. MOVED, SECONDED, AND DULY CARRIED: Recommend to the Board of Directors to: a) Award a contract to Polydyne, Inc., for the Purchase of Liquid Cationic Polymer, Specification No. C-2008-395BD, for a unit price of$1.975 per active pound delivered for Solution polymer plus applicable sales tax, and $1.85 per active pound delivered for Mannich polymer plus applicable sales tax, for an estimated annual amount of$2,282,500 for the period July 1, 2009 through June 30, 2010, and four one-year renewal options; and, b) Approve a 10% annual unit price contingency. 7. MOVED, SECONDED, AND DULY CARRIED: Recommend to the Board of Directors to: a)Award a contract to U.S. Peroxide, LLC, for Regional Odor and Corrosion Control Services, Specification No. C-2009-405BD, at the unit prices of Minutes of the Operations Committee May 6, 2009 Page 3 $1.78/gallon delivered plus tax for Ferrous Chloride; $1.72/gallon delivered plus tax for Hydrogen Peroxide (27%), indexed to the natural gas previous quarter average NYMEX Henry-Hub gas base price of$9.00 per MMBtu, and an escalation index factor of an additional $0.025/gallon for every increase of$1.00 above the indexed cost; and, $2.19/gallon delivered plus tax for Bioxide, for an estimated annual amount of$3,300,000, for the period July 1, 2009 through June 30. 2010, and four one-year renewal options; b) Award a contract to Hill Brothers Chemical Company for Regional Odor and Corrosion Control Services, Specification No. C-2009405BD, for an initial delivered unit price of$1.736/gallon plus tax for Magnesium Hydroxide, indexed to the natural gas previous month's daily average NYMEX Henry-Hub gas base price of$13.25 per MMBtu, and an escalation index factor of an additional $0.06 per gallon for every increase of$1.00 above the indexed cost, for an estimated annual amount of $2,500,000 for the period July 1, 2009 through June 30, 2010, and four one-year renewal options; and, c) Approve a 10% annual unit price contingency. 8. MOVED, SECONDED, AND DULY CARRIED: Recommend to the Board of Directors to approve Amendment No. 4 to the Agreement for Private Operation and Maintenance of Oxygen Generation System at Plant No. 2 with Air Products and Chemicals, Inc., (P.O. 43063-OB), extending the contract for a two-year period beginning February 2, 2010 to February 1, 2012,for an annual amount of $321,766.80 adjusted annually based on the Consumer Price Index for the Los Angeles/Orange County/Riverside area. 9. MOVED, SECONDED, AND DULY CARRIED: Recommend to the Board of Directors to authorize staff to enter into negotiations with Malcolm Pimie, Inc. for construction support services for Replacement of the Rocky Point Pump Station, Contract No. 5-50. 10. MOVED, SECONDED,AND DULY CARRIED: Recommend to the Board of Directors to authorize staff to enter into negotiations with Dudek, Inc. for construction support services for Bayside Drive Improvement, Contract No. 5-61. 11. MOVED, SECONDED, AND DULY CARRIED: Recommend to the Board of Directors to receive and file the ADA Compliance Feasibility Study for P1 Miscellaneous Buildings Office Improvements, Project No. FE07-08, dated August 2008, prepared by Willdan. Minutes of the Operations Committee May 6, 2009 Page 4 12. a) MOVED, SECONDED,AND DULY CARRIED: Approve Plans and Specifications for the P2 EPSA Roof Access, Project No. FE07-07, on file at the office of the Clerk of the Board; b) Approve Addendum No. 1 to the plans and specifications; C) Receive and file bid tabulation and recommendation; d) Award a contract to DenBoer Engineering & Construction, Inc., for P2 EPSA Roof Access, Project No. FE07-07, for an amount not to exceed $134,000; and, e) Approve a contingency of$26,800 (20%). Non-Consent 5. Staff answered questions on the contents of the report which is restricted to the collections system. It was then: MOVED, SECONDED, AND DULY CARRIED: Recommend to the Board of Directors to approve the final Sewer System Management Plan prepared by staff dated May 1, 2009. ACTION ITEMS (13—14) 13. MOVED, SECONDED, AND DULY CARRIED: Recommend to the Board of Directors to approve Amendment No. 9 to the Professional Services Agreement with Integrated Program Management Consultants, a joint venture of Parsons Water and Infrastructure, Inc., and CH2M Hill, Inc., authorizing: a) Establish an amount not to exceed $15,877,732 for year eight (Fiscal Year 2009-10) of the ten-year contract; and, b) Increase the total amount of the ten-year contract to a total amount not to exceed $108,954,978. 14. MOVED, SECONDED, AND DULY CARRIED: Recommend to the Board of Directors to: a)Approve Plans and Specifications for the P2 Plant Water PS Discharge Piping, Project No. FE07-17, on file at the office of the Clerk of the Board; b) Approve Addendum Nos. 1 and 2 to the plans and specifications; c) Receive and file bid tabulation and recommendation; Minutes of the Operations Committee May 6, 2009 Page 5 d) Receive and file letter dated February 5, 2009, from Atlas Allied, Inc., requesting relief of their bid in the amount of$323,900 due to a mathematical error; e) Award a contract to Ken Thompson, Inc., for P2 Plant Water PS Discharge Piping, Project No. FE07-17, for an amount not to exceed $460,000; and, f) Approve a contingency of$92,000 (20%). INFORMATION ITEMS There were none. DEPARTMENT HEAD REPORTS Director of Engineering, Jim Herberg, briefly reported that he would be submitting for the Board's approval an annexation of a 1700-acre parcel in Santiago Canyon. The Director of Operations and Maintenance, Nick Arhontes, reported the volume of water provided to the O.C. Water District for GWRS is an average of 69 mgd . CLOSED SESSION There was no closed session. OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY There were none. ADJOURNMENT The Chair declared the meeting adjourned at 5:45 p.m. The next Operations Committee meeting will be held on Wednesday, June 3, 2009, at 5:00 p.m. Submitted by: .(.CiC Lilia Kovac Committee Secretary H:WepragendMOpem0ons Canmittee\Opemttons 2009WBDM506M Operations Minutes.dom ENGINEERING �API 11 TAL I MPROYE-MENT ■ ROGRAM I� y Program Mid-Year Report (Fiscal Year 2008/2009) (For 12-month period from January through December 2008) Cojjgboration for Success �� it J��ri►n ""' i USING ADVANCED COLLABORATION PROCESSES AND SCHEDULING TOOLS TO ENSURE SUCCESSFUL IMPLEMENTATION OF CAP PROJECTS For the full story, see page 8 Orange County Sanitation District Distributed at the Aerations Committee O5 C) Meeting oft., Orange County District Contents Engineering Capital Improvement Program....................... 7 Program Metrics. ................................................. 1 ProgramBudget............................................. . 1 Milestones. . . . ....................................... ...... 3 ProgramCash Flows. ........................................ � ConUactActivity. . . . . . . . . . . ........ . . ............................. 8 Professional Design Service Agreements................... ...... . 8 ConsW ction Conracts AwaMed........................... ..... 7 Closed and Canceled Projects. . . ................ .............. 7 Collaboration for Success................ .................... 8 SecondaryTreatment. . . ........... ... . ....................... 77 `. Plantl and Plantl . . . . .................... .................... 75 �) Plantl Projects . .. . . ................... ......... .... ...... _.. . 15 Plantl Projects .. .. . ........................................... . 1B '� Collections . . . . . . . ........................................... 21 vWater Management. . . ..... . . . . ............................ . . . 25 ENGINEERING CAPITAL IMPROVEMENT PROGRAM :. The Engineering Capital Improvement Program (CIP) began in Fiscal Year 2003/2004 (FY03/04) with 125 projects. As of December 31, 2008, 48 projects have been canceled and 69 new projects have been added. Thirty-two projects have not started or are on hold. Forty-six projects have been completed and closed since program inception. The projects are categorized by status and phase as follows: Project Status since Program Inception Active Projects Distributed by Phase Al Program Inception(FY03/04) 125 1-Project Development 16 Added as of December 31,2008 69 2-Preliminary Design 9 Cancelled as o1 December 31,2008 (48) 3-Design 13 Not Steeled or On Hold (32) 4-Consbuclion and Installation 17 Closed/Completed (46) 5-Commissioning 1 6-Closeout 12 Alive Projects as of December 31,2008 68 Alive Projects as of December 31,2008 68 Program Metrics Three key metrics were put in place to ensure that the best processes and tools are used, most-qualified staff are in place, and work is tracked accurately. These metrics consist of the Program Budget, Milestones, and Program Cash Flows. Milestones are the 14 critical dates in project schedules that allow management to view how the projects and overall program are progressing. Cash flow measures how the money is spent compared to Board-approved CIP fiscal year commitment. Program Budget The initial Engineering CIP budget for FY03104 was $2,878,119,055. During budget development for the five years, FY04/05, FY05/06, FY06/07, FY07/08, and FY08/09, new projects added costs of $90,505,393, $125,433,850, $107,700,796. $14,444.576, and $80,959,000, respectively. As of December 31, 2008, the sum of all original project Table 1-1: Engineering CIP Budget Recap budgets, which included escalation, was $3,297,162,669. Since July Initial Engineering CIP Budget for FY 03104 $2.878,119,055 2003, the Board has approved Added Projects for FY 04/05 $90.505,393 changes to the budget resulting in a Added Projects for FY 05/06 $125,433,850 Added Projects for FY 06/07 $107,700,795• decrease of $471,629,268, bringing Added Projects for FY 07/08 $14,444.576• the current approved budget as of Added Projects for FY 08/09 $80,959,000 December 31, 2008, to Total(Initial Budget and Added Projects) $3.297,162.669 $2 825,533,401. Table 1-1 shows Board Approved Changes ($471,629.268) Current Approved Budget $2,825,533,401 the Engineering CIP budget 'Values ere different from previous report because of project transfers to breakdown and recap. Engineering CIP from other Divisions. Program Mid-Year Report — FY08/09 •'" Table 1-2 shows the distribution of the Board- Table 1-2: Board-Approved Changes approved changes across the subprograms. Secondary Treatment ($10,771.259) The Project Managers (PMs) provide a Collections ($321,265,070) Plant 1 $1.254.834 monthly update to the estimate at completion Plante ($72,916,186) EAC for each of their projects. The current Water Management ($54,006,164) (EAC) F 1 Joint WorkslSpeclal Projects ($30,788,843) program EAC totals $2,778,479,053. Table 1-3 Planning $16,863,420 shows the budget and EAC for each Grand Total ($471,629,268) subprogram by fiscal year that projects were originally approved. Table 1-3: Board-Approved Budget and EAC CIP Approved Current Approved Program 03/04 Collections $757.242,605 1 279,631,473) $477.611,132 $466.300,440 Joint Works $272.153,169 ($21,143,532) S251,009,637 $253.126.306 Planning $17.095,499 ($318,773) $16,776,726 $19.325.561 plant $365.218,296 $24,386,263 $389,584,559 $389.025.347 Plant $581.259,030 ($77,138,038) $504,120,992 $501,310,776 Secondary $561.076.675 ($10,771,259) $550,305,416 $552.658,195 Special Projects $8,371.780 ($2,154,049) $6,217,731 $6.351,467 Water Management $315.702,002 ($54,006,164) $261,695,838 $219.798,008 03104 Total $2,878.119,055 ($420,797,024) $2,457,322,831 $2,407,896,100 04/05 Collectons $10,207,370 ($8,644,283) $1,503,087 $1.501,171 Joint Works $26,646,653 ($7,095,645) $1915511008 $19.926,762 Planning $3.164,450 $17,167.193 $20.331.843 $20.434.113 Plants $49,609,533 ($23,111,429) $26,498.104 $26.305.241 Plant $50,000 ($48,464) $1,536 $2,315 Special Projects $827,386 ($495,617) $331,769 $356,121 04105 Total 590,505,393 ($22,228,246) $6B,277,147 $68.525,723 05106 Collections $82.299,217 ($44,837,647) $37,461,570 $36,601.808 Joint Works $5.426,000 $0 $5,426,000 $10,581 Plant $37.708,633 $4,024,352 $41,732.985 $39,794,724 0i Total $125.433.850 ($40,813,295) S64,820,555 $76,407,113 06/07 Collections $74,444,000' $9.621,314 $84,065,314 $86,460,618 Planning $600,000 $15.000 $616,000 $618.581 Plant $32.656.795 $245.964 $32.902.759 $32,895,528 06107 Total $107,700,795 $9,802.278 $117,563,073 $119,974,727 07/08 Collections $650.000 $1,462,019 $2,112,019 $6.911.929 Joint Works $10.444,576 $100.000 $10,544,576 $13.287.125 Planning $3,360,000' $0 $3,350,000 $3.532,829 07100 Total $14.444,578 $1,562,019 $16,006,695 $23,731,883 08109 Collections $12,600.000 $765,000 $13,365,000 $13,566,100 Joint Works $32,890,000 $0 $32,890.000 $31,094.199 Planning $700,000 $0 $700,000 $679.728 Plants $12,822,000 $0 $12,822.000 $13,549.120 Plant $21,947.000 $0 $21,947.000 $23,054.360 ` 08109 Total $80,959,000 $765,000 S81,724,000 $81,943,507 'Values are different from previous report because of project transfers to Engineering CIP from other Divisions. Program Mid-Year Report— FY08/09 Figure 1-1 shows the current approved budget by subprogram. The largest subprogram is the Collections program, which is budgeted at $616.2 million. The Plant 2 program closely follows with a budget of$600.7 million. Figure 1-1: Current Approved Engineering CIP Budget $2,825,533,401 (Includes $134,279,853 Contingency) Plant 2 $600,705.272 21% Water Management --_ $261,695,838 Plant 1 9% $428.904,663 15% Planning Collections $41,773,369 $616,178,122 1% 22% Secondary Joint Works 8 $550,305,416 Special Projects 19% $325,970,721 12% Milestones Table 1-4 shows a summary of the major milestones completed to date in each of the major milestone areas. Of these 721 milestones, 76 were accomplished during the 12-month reporting period ending December 31, 2008. Table 1-4: Major Program Milestones Achieved Total Program Completed Completed Major Milestone Phase Milestones to Date Jar,08-13ecOg Mall PSA RFP Preliminary Design 80 71 7 PDR Approval Preliminary Design 78 64 3 PDRIDeelgn PSA Beal Approval Preliminary Design 88 66 6 Design Submittal 1 Received Design 78 54 2 Design Subml8el 2 Received Design 79 53 1 Design Submittal 3 Received Design 85 57 4 Final Design Receved Design 91 58 2 Bid Opening Design 87 51 7 Contractor Board Appreval Design 89 53 5 Notice To Proceed Issued Construction a Installation 97 50 6 Begin Commission Commissioning 88 40 5 Construction Complete ConstrmCtion B Installation 94 42 10 Notice of Completion Filed Closeout 94 36 7 FIS Closure Closeout Be 28 9 Total Program Milestones Achleved 1,232 721 76 No. PSA - PMenlonel 5er,ims Agmmanl RFP - Ra o..f r P.ry al MR - Pnllmlmry D..gn R.l oa FIS - Flne cal IMameOm syNm Program Mid-Year Report— FY08/09 ' Table 1-5 shows a summary of major milestones currently planned for the next year. Table 1-5: Major Program Milestones Planned Major Milestone Phase Planned to occur Planned to occur Meg PSA RFP Preliminary Design t ' 0 FOR appoval Preliminary Design 3 4 PDR/Design PSA Board approval Preliminary Design 3 1 Design submittal 1 received Design 2 4 Design submittal 2 received Design 2 3 Design submital 3 recelved Design 3 2 Final Design received Design 4 3 Bid Opening Design 2 6 Contractor Board appmval Deeign 1 4 Notice To Proceed Issued Consbuction&Installation 3 4 Begin Commission Commissioning 3 5 Construction Compleb Construction&asiallation 5 2 Notice of oampletion Filed Closeout ] 2 FIS case. closeout g 4 Total Program Milestones Planned 46 44 NI PSA - Praleeslonal eaMcee Agreement PolBFP - aequeat(arPNpoyl Fix - PInanclary Deegi Repot FIS - FlrenWllnlonnalbn spbm Table 1-6 shows projects that are planned to start within the next year. Table 1-6: New Projects Beginning Jan- Dec 2009 Projct Planned a. Project Name Start J-112 Outlet Land Section and OOBS Piping Rehabilitation 16-Mar-09 P2401 Plant Water System Rehabilitation at Plant 2 i-May-09 J-113 Outall Land Section and OOBS Piping Rehabilitation-Study 1Jul-09 J-114 Ocean Outtall Booster Station Rehabilitation(Electrical) 1Jul-09 J-119 Outlet Breach Box Rehabilitation Evaluation iJul-09 P7-111 Power Building 3A Standby Generator Upgrade at Plant 1 1Jul-09 Pi-112 Plant Water System Rehabilitation at Plant 2 1Jul-09 P7-115 Facilities and Grounds ADA Modifications 1Jul-09 P2-103 Additional High Pressure Flare 1-Ju1-09 P2-105 Rehabilitation of the Digester Ferric Chloride System at Plant 2 1Jul-09 P2-92 Sludge Dewalering and Odor Control at Plant 2 1-Jul-09 SP-136 Land Records Management System Project 1-Jul-09 Program Cash Flows Cash flow reports track actual expenditures compared to those in the plan. At the beginning of each fiscal year, expenditures are forecasted based on the approved CIP budget and on individual project schedules,thus establishing the budgeted cash flow for the full fiscal year. Figure 1-2 shows the historical expenditure trend (budget and actual)through the end of the last fiscal year. Since inception of the Program Management Office (PMO) in July 2003, the average cash flow metric has been 96 percent. Program Mid-Year Report- FY08/09 Figure 1 -2: Budget vs. Actual Expenditure Trend szw,uw,ew szw.ow,aoo -- $..m p $,w,uw,m seo,ow,wa sao,ow.wo " IR,pM 16Y,.W WW.W nmYW nMl•0 ni4]SI.W tN,.114W W41MW nii.14(Po _nem..ue.so. , WSW Wm 'o% Wm.m m,m I in,.m.,u p,,.vy,Y no,,p.m li2m.m, FY08/09 Cash Flow Figure 1-3 shows the FY08/09 Engineering CIP planned expenditures by subprogram. The Secondary subprogram is the largest, with a planned expenditure of $178.9 million, followed by the Collections, Plant 2, and Plant 1 subprograms. Figure 1-3: FY08/09 Engineering CIP Budget $353,048,000 (Includes $8,567,000 Contingency) Joint Works S Special Planning p18M1 Projects $8,4s8,000 $6,868,000 2% $13,445,000 2% 4% Secondary Plant 2 $178,899,000 $59,950,000 50% 17% Water Management $46,000 1% Collections $87,382,000 25% Program Mid-Year Report - FY08/09 Figure 1-4 shows the budgeted and actual and projected cash flows for FY08/09 on a monthly basis. Figure 1-4: Actual and Projected Cash Flows for FY08/09 through June 2009 Momo.ow 14w.wp,0oo �CIP BWPoI gdrpyl EMCn N.MWCIPP —.—Adal.Cumubtue COP fluids-Cumu4UW 00.000.000 ned mO M00,000,000 MOAO$,OM a / d2w,wo,wo n gi I uw,ow,ow � tlw,wo,ow Mo,aod,ow Hw,Ow,Ow $10.000,0110 $0 do PO pPO PO Pe PO P9 _f� >4' 5P PQO Y1 Contract Activity Professional Service Agreements Table 1-7 lists the Professional Service Agreements that were awarded during the 12-month period ending December 31, 2008. Table 1-7: Professional Service Agreements Awarded Project Project Name Consultant Amount of Date of No. Award Award 2-241 Carbon Canyon Serer 8 Pump She Abandonment RBF Consoling.Inc. $498,129 712912008 547 Balboa Trunk Sewer Rehabililelon AECOM Technical SeMma,Ino. $798,404 12A712008 5-58 Newport Tmnk Sewer B Form Mein Rehab Black B Veatch Coryoralon $973.4M 712312008 5.58 Newport Tmnk Sewer B Form Mein Rehab Baler Engineering,Inc. $1.610,925 1W2212008 5413 Dover Drive Tmnk Sewer Rellel PBSBJ,Inc. $956,431 911712008 11-26 Coast Trunk Sewer Rehabilitation Malcolm Plmle Inc. $114,853 1WI7120M J434 Power Monliodng and Control Systems DLT$V Systems Engineering $308,015 1211712008 J-79 Alr Quality Improvements Malcolm Plmle Inc. $3,352,518 1VI7120H J-79-1 Continuous Emissions Monllodng System Black B Veatch corporates $508,880 101202008 JAW Temporary Upgrades to Plant Security samers RBF Consoling,Ina $321,415 9/17MOS Pt-71 Headwotks Rehabilitation-ReluNlshment Carollo Engineer; $493.883 312W2008 P2-89 Solids Thickening and Processing Upgrades MWH Amerime,Inc. $6,983,999 10/=008 •..• . Program Mid-Year Report — FY08/09 Construction Contracts Awarded Table 1-8 lists the construction contracts that were awarded during the 12-month period ending December 31, 2008. Table 1-8: Construction Contracts Awarded Project Project Name Contractor Amount of Date of No. Award Award 2-24-1 Carbon Canyon Sawar and Pump Sol,Abandonment Ken Thompson,Inc. $5,222,000 07/23/08 241.5 Santa Ana River Interceptor 2006 Protection Repairs Jamison Engineering Contractors $374.553 09/2W08 3-52 Rehebllita8on of Me Wertilde Pump Station Norman A.Olsecn Conatruclipn, $5,885,000 07/24100 Inc. 5-5B Beer Palm Force Mele Rehebllkstion Nation Burtch,Construction Go., $18.512,931 OM7M Inc. J-79-1A Cenral Generation Automation M.Meadows $3.958,T00 0919/OB P1-101A Temp Primary DlVBmlon of Sludge from Pt to P2 Orion Construction $567,000 07QMB Pt-71 Headwo*s RehabllitationlReNNishment Helix Electric,Inc. $3,645,000 06/25108 SP-96 Plant 2 Maintenance Suil6ing Modi8calle s Able Allied,Inc. $63460 03117/08 Construction Contracts Completed Table 1-9 lists the construction projects that were completed during the 12-month period ending December 31, 2008. Table 1-9: Construction Contracts Completed Project Project Name Contractor Amount of hl. Award 732-1 732-1 Gisler-Red Hill Trunk Relocation Ken Thompson,lot. $630.571 J331A J.33.1A Standby Power and Reliability Modhications Southern Connecting Company,Corp. $0.179.351 P1-106 Pt-106 Truck Wash and Dswatedng Beds at Plant 1 Adams Mallory ConetruNon,Inc. $1.928.391 Pt-76 Pit-76 Tdokling Filter Rehabilimtion and New Clint J.R.Fllenc Construction Company,Inc. $3 ,185,946 P2-74 P2-74 Rehabilitallon of Activated Sludge Plant at Plant 2 J.F.Shea Construction,Irm. $10,333,573 SP-98 SP-98 Plant 2 Maintenance Building Modifications Ages Allied,Inc. $70,668 Closed and Canceled Projects Table 1-10 reflects the value of projects that have been closed or canceled since inception of the Engineering CIP In July 2003. Canceled projects, which previously had been approved by the Board but were subsequently determined to be nonessential to the operations of the Orange County Sanitation District (Sanitation District), have resulted in a reduction of$497,223,920. Closed projects, which are projects that have been completed, show a cumulative savings of $46,936,362 in comparison to their originally approved budgets. The total reduction resulting from canceled and closed projects is valued at $544,160,281. Program Mid-Year Report — FY08/09 Table 1 -10: Closed and Canceled Projects nitlated project Status Approved Budget Canceled or Closeout Value Variance 03/04 Canceled $496,821,106 $22.066.962 $(474.754,144) Closed $200,869.904 $146.775.659 $(54.094.245) 20030004 TOW $697,691,010 $168,942,621 spza'646,369) 04105 _Canceled 512,174,757 $429.799 $(11,744,958) Closed $800.000 $2,335.204 51,535,204 200Y1006T01191 $12,074,767 $2,766,003 $(10,209,754) 06M Canceled $6.514.060 $10.561 $(6,503.479) Closed $2.280.000 $7,902.679 $5,622.679 2006n006 Total — - - - _ $0,T04,060 $719131260 $(860,800) 00/07 Canceled $4225,000 $3,661 $(4,221,339) 200612007T0/a) $4,226,000 $3,661 $(4.221,389) Program Initiatives and Achievements The CIP team continues to develop and maintain tools and processes to assist project teams in project management and technical work. In many areas, these efforts enable the successful implementation of the CIP program. The article below highlights one such effort as related to relationships between construction activities and facility operations. Collaboration for Success Using Advanced Collaboration Processes and Scheduling Tools to Ensure Successful Implementation of CIP Projects The Orange County Sanitation District (Sanitation District) Capital Improvement Program (CIP) is made up of projects varying in size and complexity. These projects, many of which are interconnected, will be implemented over the next 5 to 10 years. It is evident that delay on any one project might .� � significantly affect other projects. Some projects have - cost and schedule relationships to other projects, while others have relationships to the Sanitation District's ability to meet permit and consent decree requirements. Program Mid-Year Report— fY08/09 The relationships between projects are very complex, with no one department having a complete understanding of the relationship dynamics. There is a continued need to develop an understanding of how projects affect each other, as well as how they relate to the operation of the collections and treatment facilities. The Engineering and Operations and Maintenance (O&M) departments have taken the lead to form a task force to collaboratively provide an integrated comprehension of project implementation issues. By looking closely at all of the CIP projects and the interrelationships of their activities with facility operations, the task force enables comprehensive management of risks and improved opportunity for project success. To assure that big-picture issues are considered, the task force studies the impacts of CIP project implementation on wastewater treatment processes, regulatory compliance, and effluent quality. The task force includes key staff from the Engineering and 0&M departments, with as-needed support from the Sanitation District's Compliance, Planning, and other departments. Collaborative efforts build transparency among the departments and create an environment with improved communication and more effective working relationships. These efforts strengthen the foundation for sustainability by providing valuable information for strategic planning and project management. Specific goals of the task force include the following: • Develop, maintain and share a master CIP schedule that identifies major limitations, outages and activities related to specific milestone executions • Develop process performance and effluent quality projections based on defined milestones and Groundwater Replenishment (GWR) System activities • Anticipate the impact of CIP activities to permit and consent decree compliance • Ensure that project implementation activities do not result in permit violations • Understand thoroughly the relationships and conflicts between project milestones and schedules • Consider wet-weather issues as related to capacity needs during shutdowns • Identify potential process impacts that might be caused by project implementation and develop solutions to eliminate or mitigate the impacts The task force establishes plant-wide practices and further develops the organization for delivering a sustainable program. Task force efforts enhance the Sanitation District's risk management practices related to construction activities and plant operations. As construction and operational issues and/or conflicts are identified through review and Program Mid-Year Report — FY08/09 '• ' consideration of shutdown and tie-in schedules, the task force and project teams prepare contingency plans to address the issues and mitigate potential short- and long-term impacts. Figure 1-5 shows an example of a schedule report used by the task force and CIP project teams to identify potential conflicts during critical project startup periods. This type of report shows relevant activities of several projects and enables consideration of potential conflicts between overlapping activities. Figure 1-5: Example Conflict Identification Report P2-80&P2-88 Startup Connection-Information reflected as per August 2008 update ..Amm.l.rMm•m,.>...Mr.m.«rrnrr ,B1nsWp.nmmm min.. ,�.cp.a.Fbr r.rmnl uw �oraW uBID 1ow,m .B rw Xw.m a'',r.r eum u.m. rX ll. a.wno w�¢e+r.e Wron.. AVID U M era M1UY p9n MIID 'I14c t'v 9r eg=v WUrtwlteynr� RSAII lll,"A Al." De1W 91 Wnp ID eCMVFGILNe ' Al. DPp-. IW CYrMrlF 9xae 34prm Or.apd a c•Mm WNo All. I. rB a CnrW LM WM IPlwtl U oG2Br 4xIw YwR M✓<ryoMu AIND an PoMrilgsBl.E W.•Mm Mr t. Db10 eFjy.Mrµpyryp Al.® r6Ap10 Y®(JxMxly Mme AlSO INp91' 19.µr.V S�OOB61—YNSF A1.6 ]OAp.ly -TN+.L • .I PECE GJbn.Yl� PE Amo A/p11 3ep.n >®SSuann.l i'E A1}A SWpr.11 D.Ip.n 1.oeyC rAnmwnu., r'E AllW LJAy.' IlCat49 318 P10YY1.PXny OxXxpruxJnWlmprenrrnrb �--Y m rM ewpnpremrgrpu.ryluni ml e,p36 Wmq SYpt. neM,r,mnrp r wemrmnmwrcrmmpurnpmmeweman uamx r,n Wy,M pL The task force is a unique and innovative concept adopted by the Sanitation District for better management of the CIP. These collaborative efforts have propelled the Sanitation District toward the next level of maturity in program management. The task force has received endorsement from leadership within the Engineering and O&M departments, recognizing that these efforts are essential to successful implementation of the CIP. •..- r Program Mid-Year Report— FY08/09 S ECONJDARY J REANTMIENJT ►, Tnckthd Filter J.R.Flbro CmebucllOn Ce., P149 R.1den tertand Nnw Oeani Bieck d VeatcL 0115Nfi O .H 5,62].fi51 O Carl Reentrance cl Np n., ANaeted Sludge Font at harry MYbe MNN Nnedwe,Inc. JF Seee,Inc. OVISLB Q fle,t%,)M Q ohe Iii New Teethe,FIXon odi Mlllpa Sol S Cald"I JF She .In. Ov15,11 O Si O PI-102 ��etM phoneSludge O Mantel Bli S Value NIMI Pi Go. Itll•WI2 O loge Y42,<2] O 5552,M,125 Nob: Q At�mWNOn SOM.M.Indbebe deal of $¢C011ddry TfBdilll¢nl Subprogram Nan 20 xvM all At EAC,MtlImW Net Bf ProjMe]Estlmeb MCanpblUn ewWe Simi v5.EAC ounent epprowd tudgelby 10 prteM Or Mia. O At COrcult n Scrior EAC.adlete µge,deb a S523e 1u proRulbprowedlrp asgemM. M.M.N2 IMletee tleM,e a M ncelef, un or,proner. SS ,000.00J MMA[O.[M f2m.OLa.ro2 SAJ.KO.W] ra••.a•r,a f1W.Md.W] - fd Cumin NPrm'ed Fall FYlm.belDempbliderp q The Sanitation District has made the commitment to upgrade the effluent treatment level to secondary treatment requirements by December 2012. This decision entails a reduction in the levels of biochemical oxygen demand and total suspended solids in the ocean effluent discharge to levels that comply with the secondary treatment requirements of the Clean Water Act. The new Ocean Discharge permit became effective on October 31, 2004. The Environmental Protection Agency (EPA) and the Regional Water Quality Control Board (RWQCB) issued the permit. Immediately following the effective date of the permit, EPA and the RWQCB lodged a settlement of litigation against the Sanitation District In the forth of a Consent Decree. This document describes an interim compliance process that contains construction milestones and interim effluent limitations until the Sanitation District achieves full compliance with secondary treatment requirements, which must occur by December 31, 2012. Table 2-1, Secondary Treatment Consent Decree Milestone Status, shows the Consent Decree milestone dates and the current status for each project. Program Mid-Year Report— FY08/09 '•e Table 2-1: Seconds Treatment Consent Decree Milestone Status Consent Program Milestones Decree r . - Status P1-76 Construction Complete 3/15/2006 Completed P7-102 Advertise for Construction 11/15/2006 Completed P2-90 Advertise for Construction 1/15/2007 Completed P2-74 Construction Complete 1/15/2009 Completed P2-90 Construction Complete 2/15/2011 On schedule Pl-102 Construction Complete 11/15/2012 On schedule Full Compliance with Permit 12/31/2012 On schedule Following are brief summaries of each Secondary Treatment project, with descriptions of accomplishments during this 12-month reporting period and expectations for progress during the next 6-month period. New Activated Sludge System at Plant 1 (P1-102) iD iwxm 2M M3 31ps ]D]5 ]CW 2.7 2. 2M 2010 3011 2012 M13 1 yW—I a . AL4I Slut„P ] pUNNINGINO — 0 60S&I — 0 CONSTRUCTION The P1-102 project expands secondary treatment facilities at Reclamation Plant (Plant 1) to comply with secondary treatment standards and is ��ylyM + part of the Secondary Standards s, t , )q�lp, Program. The activated sludge process was chosen as the most cost-effective 4a a �;,� lr ) i _ process to achieve secondary standards and allow future reclamation activities at Plant 1. I, P1402 Clarifier Foundation Preparation As the largest project at Plant 1, the project includes construction of six i F aeration basins, six clarifiers, a blower t building, and return/waste sludge pumping for an additional secondary i treatment capacity of 60 million gallons per day (mgd). This 5-year, $203 million Pt-102 Aeration Baal.Wall Construction Program Mid-Year Report— FY08/09 construction project uses over 12 acres of land and is scheduled to be completed by November2012. During the last 12 months, the contractor completed the excavation and construction of the deep underground concrete foundations, including the installation of over 5,200 pre-cast concrete piles for the six 2-million gallon aeration basins, six 2-million gallon secondary clarifiers, main gallery structures, and the blower building foundation. The aeration basin and clarifier slab and wall work have been started. The project is visually recognizable outside Plant 1 because of the 230-foot Liebherr crane, a 160-foot tower crane, and the 200-foot tower crane—all of which are critical to enabling efficient construction of this significant project. Over the next several months, construction activities will continue to expand as additional concrete structures are completed, process piping is installed, and electrical and instrumentation work begins. Through December 2008, the contractor completed approximately 50 percent of the construction work. Rehabilitation of the Activated Sludge Plant of Plant 2 (P2-74) IP 7,W Hnr� Nq3 2W3 2W9 2W. 2. .7 2. %tlP Ot "SUG S1Nn12 2 PV NINO DEEM - BID6WWARD _ B CONSTWUM The P2-74 project rehabilitates the Activated Sludge Plant at Plant 2. Although this project does not add additional capacity for secondary treatment, it adds the necessary improvements to provide reliability and redundancy to the existing secondary treatment system. Major work elements include replacement of aerator impellers, replacement of sluice gates, recasting of large-diameter piping, replacement of scum and inlet gate actuators, addition of odor control, and replacement of small process piping. The construction contract was valued at$10 million and had a 2-year duration. Construction was completed on schedule in March 2008, well ahead of Its January 2009 Consent Decree date. The project was very successful with no time extensions and only 2.5 percent in change orders for extra work. The final commissioning efforts were effectively coordinated and all punch list items and final documentation, including record drawings, have been completed. The warranty period ends in March 2009. The only required warranty inspection was related to interior coatings of the 72-inch PEPS header and four associated 48-Inch spool pieces. This warranty inspection revealed good adhesion of the Interior coatings. Program Mid-Year Report— FY08/09 '-P Trickling Filters at Plant 2 (P2-90) I P.7.11,1N.,..1%.mi PN NING - DESIDN - BID6AWM0 ' CONSTRNCT" The 132-90 project will add 60 mgd of additional secondary capacity, which will bring Plant 2 to secondary treatment standards. The major components of this project are three trickling filters, eight solids contact and sludge re-aeration basins, six secondary clarifiers, odor control, and a pump station that transports primary effluent to the P2-90 facility. The construction contract is valued at $180 million and has a duration of 4.5 years. Between January and December 2008, the contractor made significant progress in subgrade construction. Installation of 1,675 pre-cast foundation piles were completed, ending the pile-driving activity, which was the biggest source of construction noise. Installation of 802 auger-cast foundation piles was also completed. With the foundation pile system fully constructed, the contractor was able to start building formwork for the concrete structures. The contractor has poured the floor slabs and over half of the walls for all major structures. Through December 2008, the contractor had completed approximately 40 percent of the construction work. Trickling Filter Rehabilitation and New Clarifiers (1111-76) a T..Nun Im 2= 2m, ]W: M 2W. 2. 2. 2Wi P1-76 TnOIN FIM R.N &Oon 6 Nw CI.nM PL NINB - DESMN BIOSAWARD ■ CONSTR UM The P1-76 project included removing four existing trickling filters at Plant 1 and replacing them with two new trickling filters and two new clarifiers. A new power building was installed to support the increased electrical demand. Two effluent lines were constructed, including one to the Groundwater Replenishment (GWR) System inlet structure and one to the 66-inch interplant line, and several junction structures were installed to allow flexibility of flow distribution. Construction was completed in 2006. Project closeout is anticipated to occur in May 2009. •.. • Program Mid-Year Report - FY08/09 PLANT 1 AND PLANIT Z Plant 1 and Plant 2 projects replace, rehabilitate, and expand the existing wastewater treatment facilities. The descriptions below include projects at Plant 1 and Plant 2, but do not include Secondary Treatment projects, which were covered in the preceding section of this report. Plant 1 Projects FE.I FaNu.e Fn,.n¢enne- pa,µ Do- _ _ O $195n,513 O Poll I P,De lgn 16 b Jl P1J] No Reaioo FaaliYm al Moo Pum B,wniSCWwa MarpabCWYu ,_ Oy m O $92,92aJill O Plana P1-]1 R.. a.Refu,dymenl $aroraMl OLIb10 Q 58.9]1,BW O P112 "Om P�1 scan NOR,Mc JoF _CtnaWm'n 011JON9 O Sa].5M 69] O P197 Ranh! 8kV5uMhM Na.W - - Rwi5 O S1A.953.3]] O Pt-1W Pen.M uVoe Vam1 GNo flepag,e ECM T..lnc. - 07/b113 O SW.971.W9 O P1.101 Slulli.0 1-lgand. ..-gapyne XDR.ll. - oaW,N O S1Q.5M.282 O ConIM n P1.1i I PI-0W P,aI F.Ol6Paail1 olaona PJao - - W011. O W72.214 O' P11W nsla,p Dewf. n.Wa a,pan, pa,xwtln E..I., - Ow" O $2.930,4t O C.Pm c, Co. WR WA WA $1.25e.5Ga UrciW P,getl. UnmIM WA WA WA 10 1.1—Prga6a FNma No. WA WA WJSI] TOfYPLYRt ola 0Q AlC ioom tun SGWub.lMloMe do.,ai Ian 2a won dan uIeC Mrzles col Plo� FWt19MEV]aYnln Esumal..l� '.m._. o n,nenl.p,. Buhl w FAc d a"l0 pe,ufl o.Ze QAlC ,.,,lnn smMuia o,EeC.,lo.i.e ola,l � p,o,ell in9asplannod. 55W.EW,CW - �- Inpu:eatlpwd,un®tad,orlulure p,ged. XW 0W000 STW.000.000 ma!,r. 31 W,OW,000 >D e.aarAMAaaewSal lrlaw elcanp.uen RM Plant 1 66-kV Substation (P1-97) The P1-97 project upgrades Plant 1 electrical service from Southern California Edison (SCE) to increase the capacity and reliability of the current system and minimize operational cost. The utility connection will change from 12.47 kilovolts (kV) to 66 kV. SCE will supply the incoming lines, transformers, meters, and connection switches at the Sanitation District's expense. Program Mid-Year Report - FY08/09 -•' ' r re The work consists of site work for a new substation to be constructed by SCE, upgrading existing medium-voltage protective relays for the main feeders and tie circuit breakers at the 12-kV Service Center and Central Generation Facility, addition of a maintenance tie circuit breaker at the 12-kV Service Center, and relocation of the existing electrical utilities and communication systems for entrance gates and trailers. Over the last 12 months, several activities were accomplished, including: • Installed and connected permanent 12-kV manual transfer switch. • Completed relocation of power and communications for the engineering trailers and power, control, and communications for the entrance gates. • Installed temporary SCE 12-kV electrical power services for the 12-kV Service Center Buses A and B. • Demolished and removed existing utilities located on the site of the 66-kV substation, including the existing SCE 12-kV primary service conduits. • Demolished the old block wall located along Garfield Avenue and constructed a new one. •..- Program Mid-Year Report— FY08/09 • Intercepted and extended the existing SCE service conduits from the 12-kV Service Center basement to a point west of the 66-1kV Substation. • Performed Field Verification of the existing 12-kV Service Center and Central Generation Switchgear. • Constructed all site civil work except final paving between the 66-kV Substation and the 12-kV Service Center and at the south 66-kV Substation entrance driveway. • Completed all work to comply with SCE Rule 21 Including Switchgear Modifications at Service Center and Switchgear Modifications to Central Generation Breakers, including: - Installed new cubicle doors - Performed National Electrical Testing Association (NETA) maintenance on each circuit breaker and Switchgear bus - Installed and connected the local/remote control panel and the associated control and monitoring conductors - Programmed the existing power monitor software to accept the new power monitors and associated status input - Tested the communication networks Plant 1 Facilities Engineering Projects Plant 1 Facilities Engineering (FE) projects collectively make up a miscellaneous small capital improvement program related to plant safety, reliability, and improvements within Plant 1, where professional design consulting services for each project are valued at less than $100,000. These smaller, high-priority projects are individually tracked within the overall FE budget for procurement of engineering and contractor services as needed to maintain reliable operations. As of December 2008, 1 project has been completed, 4 projects are in construction, and 22 projects are in design. Program Mid-Year Report - FY08/09 yPlant 2 Projects FE.2 FamMS Enpnaeny am oma5 oa— - O $19.11209+ O P2b0 $dtls$Iwege FmlM al Pla^12 "my maam cYgIOEIgnNb T2rebs Suety O $1.AW.aa5 O P2b5 Xeahwks 1rryowrgn15 a1 Pbn12 Pam Konlq GrGb EnginBM WrmW mm JF.SMa .1511, Q S2..101.7fi0 Q P280 Pmma,Tmabwnl sbm.$ .1-1.Pi am - 0] 10 O $]9,ifi1,]91 O RP..aati atuMLmen1 P289 ..a .Pl� KeNy Mifiea - - 0] 14 Q $110313a2 O P291 Sung 0,am..0 aam Sbmn� 0] 10 Q $26]31.691 O P2.Pa Ren11b.21udna0sq Plain Nga MGerscn Q W6.626 O P2tpa Aala m Ca. T, Se mW 0191111 Q S6,i59,CW Q Cbe6 PrcpE Cba] WA Na $21. IM, cYWpPM1pW F. WR WR Na $1,W.8n F,•Ke P,apb F. wn WR rva $1J1,809,820 MAW" bo 0 NCmeEuln stlebb.a•olmdYsyd mwetlen20 xan aaye.uPwc.mlmm wl Plant2SUEpro Budet C PmedeE Esbnem n Gngla4�e.w.a. g vs EAC e.+.nl�m wa9.1 ey 10 PMm,I d here. NraluE+rt9w,sd.btlev Enc:tloi.a W]FyR Sse]On,]OJ PWnitl PloneM1Bu Wage. S7.OM. 9doWaddaJ.urmYG.uM14e Pged. SaPO W $ a.CNWO Wa.aM. 5%O.OW mO 321 MWO aasa.ea. $tW.O[O.f00 W CumMlppsvna Sepal Fllmab al Cwnpatlm lFAL) Solids Thickening and Processing Upgrades (P2-89) The P2-89 project will upgrade existing solids thickening and processing facilities at Plant 2. Additional sludge-handling rapacity will be needed at Plant 2 to accommodate the increase in sludge flow resulting from an expansion of secondary treatment, which is currently under construction as part of the P2-90 project (Trickling Filters at Plant 2). This additional sludge will be sent to the Dissolved Air Flotation Thickeners (DAFTs). After treatment in the DAFTs, the thickened secondary sludge will be pumped to the digesters; however,the additional sludge flow will exceed the current available treatment rapacity of the existing DAFTs and the digestion system. Therefore, to meet the additional sludge and solids processing requirements, P2-89 will accomplish the following tasks: • Increase the sludge-thickening capacity of the Plant 2 DAFTs • Convert one or both Digesters I &J from holding digesters into active digesters Page 18 Program Mid-Year Report— FY08/09 • Study future Plant 2 solid storage needs and evaluate alternatives to satisfy those needs The design was awarded at the October 2008 Board meeting. Preliminary design began in December 2008 and is scheduled to be completed in November 2009. Final design will begin immediately thereafter and is scheduled to be completed in December 2010. Headworks Improvements of Plant 2 (P2-66) The P2-66 project is the largest construction project at Plant 2. This 5-year, $194 million project consists of 15 different structures and associated piping that provide a point of entry for the trunk sewers, combining flow and providing preliminary treatment. The new Headworks will have a 340-mgd peak wet-weather flow capacity, and will include an extensive odor control system consisting of bio-tower scrubbing technology followed by conventional chemical scrubbers. I e. t 1� During the past 12-month period, the Contractor completed $16 million worth of construction, bringing total project completion to 86 percent. Structural work on 13 of the buildings was completed, and the major components of the Odor Control System were completed. Mechanical and electrical work continues with the installation of electrical items, small-diameter utility pipes, and the ventilation systems. Major components installed include the 68-mgd main sewage pumps and motors, screenings washing equipment, and shaft less screw conveyors that transport the screenings to the loading Program Mid-Year Report— FY08/09 Page 19 facility. Most of the Remote 1/0 panels (26 of 32) were factory tested, shipped to the project site, and installed. Significant progress was made in installing site work improvements, including completion of underground utility piping, final grading, and placement of the base asphalt pavement. The remaining major mechanical process components (bar screens and vortex grit removal equipment) will be shipped to the project site and installed. The remaining six Remote 1/0 panels will be completed, tested, and installed. Most of the electrical and mechanical activities inside the structures will be completed in preparation of starting Operational Readiness Testing (ORT) in early 2009. Significant scheduled activities include installation of the 700-horsepower Variable Frequency Drives, as well as the initiation and completion of bundling, pulling, and terminating approximately 60,000 wires that provide power and communications between the devices. Operational acceptance of the facility is expected in the fall of 2010, with final project completion scheduled for the fall of 2011. Plant 2 Facilities Engineering Projects Plant 2 FE projects collectively make up a miscellaneous small capital improvement program related to plant safety, reliability, and improvements within Plant 2, where the professional design consulting services for each project are valued at less than $100,000. These smaller, high-priority projects are individually tracked within the overall FE budget for procurement of engineering and contractor services as needed to maintain reliable operations. As of December 2008, no projects have been completed, no projects are in construction, and 16 projects are in design. Page 20 Program Mid-Year Repod - FY08/09 COLLECTJONJS Collections projects include the improvement, replacement and rehabilitation of sewers and pump stations to correct existing problems and increase system capacity to handle future flow estimates. These projects require Sanitation District staff to coordinate with various municipal, regulatory and transportation agencies, utility companies, commercial businesses, and private citizens. As a result, these projects are at greater risk of schedule delay than are projects constructed within the treatment plant boundaries. Number Name Manage, Endundrumnignur Corgymeor F1.1han a.,.. a.,.. FEC FWItes Eng-Cdlendone Omak Dank - - Q 57.999A39 Q 11] Sumba Me Trunk Sewer Marlin ON - - OM8114 Q $21109.303 Q R.Inbllemam R-R0.1 Carbon Canyon Mm Smtr and HeNal...It RBF CmduNn9 - 05`29W O EB,Wi.53B Q Pump Mean Ab mboydrom 2e1 SARI Realignment eM PMM Hamel Oublall - - 05MV12 Q 58.187,]]1 Q 2<15 Santa Me RM1x lmoraptor 2003 Hoy,WmbIW1 1=0108 0 $M,325 Q Pmundm Rpeln 2<td Sena Me Rhx Immumpbr 2003 HeyllJmblall OYt]/10 v E2C0.OL0 Q Prob.Repels 2-05 N.,PlamMk aad Cyprus Jim Burro - - M7117 Q $13.005.217 Q Trunk Replacement 2d8 ReMb N Wind Slpbma Abend bredo OIIGECH6 Anm - diRON9 O W.22].92] Q 152 Retold ad Ne Wage SMe Pump at P1beMAawtlo Pas" - 04RL10 Q $10.500.375 Q Y58 RmaddMpmlle Tmnk Serer NbeMAmmdo - - GYI2/12 Q $2],BF,]39 O N] ReMbd BaGUTvlk Sewer Pem Bmeler - - C 12 Q $8,514.676 O S<g BMer Pdm Pump SeakI Me.De Lee6Ro - O310N12 O 531I.6"'M5 O Redada ant 1. .'Pont Pump Sad.Rap Me.me LmI - 0124/12 Q $31.711.550 O Neradem Trunk Sewxand Form S50 Milne.BilM Prang Salon to ARN.Amuedo Medic 6 Va.. - 08 WIO O 6M,240,02] Q Cma,Trunk Sender 5­50 Newywl Force Meln Card. %,oK Pgko 0=5r15 Q W.91"Wo O Shc Gomm.Ome lmpmayranl Mahn OLL IIWIWI0 O 63,751.215 O 563 Oomr orM Trunk Satyr Ragd Handel Rumhal 1121/11 O 0,787,328 O SN Acnu Inn anon m Somme In Curb,Ma[LaM Q 5766,10) O Me Bug Canyon Nature Perk ]-21 S--bear Waned.Mamme GM RmNry Tied Couging Eng Senn Eng 00R0108 O 53.630.W O ]J] GlaerAefalllTrunk lmmf rremey.eN R' Humid Whublell T..TM,In.. - OflT/11 O 69,155.01] O Re ]6] RepMumml d Me Gtlege Ave. Albano Amvedo RBF ConuNrm - 12/1/109 O $10.705.61M O Pump 6btlan 761 Counr,Named Anne..and JM Bunar O E3D3.OG3 Q CEOA OoumenNlbn 1126 Omet Trunk Suw ReabOtaWn Albino Amveut New.Pimie - 1W1]/0, O $10,052,435 O 15-04 Norm um,GYMbne Yam CbM Menleod OW4110 O $18.604.347 Q 1"di W.W.R.h.benlAunamem Jlm Omror O $1,510.ow Q 1-10 RebeMl6etkrydruUgndedEIDe Samen STok Makgm PMM JF S.ConWCBon 05R1109 Q 518.M.IB6 O Avenue Pump SM6m Cured Pot""", Cleated WA WA de $aAaAAS Minted Pm{ede Cmvead WA WA y 5 An Fdun Pmgde FUM. WA WA be E155,4W,!T! Note: Al Cau W dMl 9drNUN,Ytllmrea date,ofman men 2a adrk drys. At PAC,IndF'aba add Projected! CalMplbdAegbprapraa EaYmy et ComplMlm...mmnl ePgored Suabot M.IEAC budget by 10 pemol or more. Q TM Comwdon Scbedue or EAC,IMkMu $61e1120.122 ali.M 5 pmbd la pmueding as plumed. $700 WOOD — Inelmteedared,mnWed,OrruturedmbW. EBN,VYJ,O00 - E500,000,00) — Saoo,o6G,1wG — E3o0,W0,00o a»a'.,a.. E200.1]00.1]Op- _ E1 W,IMp,I]W — EG cuaem ApPmved Budget W....laompl....pace.) Program Mid-Year Report— FY08/09 North County Collections Yard (15-04) The 15-04 project consists of rehabilitating an existing 30-year-old, 51,000-square-foot light industrial building in the city of Garden Grove to serve as the North County Collections Yard (NCCY). Rehabilitation will consist of demolishing the north half of the building and constructing improvements to the south half. The area created by the north half demolition will be graded and used for Sanitation District vehicles and parking. The south half, approximately 25,000 square feet, will be office space, kitchen, restrooms, locker rooms, warehouse, vehicle shops, janitorial facilities and a computer server room. The Union Pacific Railroad holds an easement for a spur rail along the east property line to serve the existing building and adjacent structures. Due to the proposed modifications, the spur is no longer needed or viable, and it will be removed to accommodate Sanitation District vehicle access. Design efforts are expected to be complete early January 2009. 11 j!l ! '. Rehabilitation of the West Side Storage Pump (3-52) The 3-52 project consists of rehabilitating the existing pump station to comply not only with current Sanitation District standards but also with national and state codes. The Westside Pump Station was originally built in 1960 by the Los Alamitos County Water District. Although modifications have been made under other contracts, the pump station has numerous mechanical, electrical, structural, and seismic and safety deficiencies. Program Mid-Year Report— FY08/09 In addition to code compliance, the station's capacity of 14.0 mgd will be increased to 18.0 mgd to meet projected peak wet-weather Flows. Modifications of the ventilation systems, electrical and control systems, and existing dry and wet well structures will be made, as well as removal and replacement of the roof, and physical separation of the pump and electrical rooms. Odor control equipment will be installed to minimize the release of odors into the atmosphere. The mechanical equipment, currently located above ground, will be moved to the dry well, 30 feet below ground. The building will undergo some minor architectural modifications, and the roof will be upgraded to better blend with the surrounding residences. In addition, the front gate will be moved to the east of the property to ease accessibility for O&M equipment and personnel.Additional landscaping will be installed to enhance the front of the facility. Construction began in the summer of 2008 and will last approximately 20 months. The intricate work required to relocate pumps and motors underground, as well as the need to maintain continuous operation of the pump station, increases the length of the rehabilitation project. Over the last 12 months, several items were accomplished, including: • The project was advertised on February 19, 2008. • A Pre-bid meeting was held on March 18, 2008. • Bid opening was on April 15, 2008. • The construction contract was awarded at the June 2008 Board Meeting. • The Notice to Proceed was issued to the contractor on August 26, 2008. • Shop drawings were submitted. • Contractor coordinated with SCE to provide new electrical transformer. • Contractor coordinated with the County of Orange Resources and Development Management Department (RDMD) for construction and installation of the temporary sewage bypass system. Replacement of the Rocky Point Pump Station (5-50) The 5-50 project involves the replacement of the existing Rocky Point Pump Station, which is nearing the end of its useful life. The proposed site for the new station is in a high-profile section of the Mariner's Mile in Newport Beach. The pump station is being built in a cooperative effort with the Orange Coast College (OCC)School of Sailing and Seamanship, which is building a classroom facility next to the proposed pump station. The project is expected to bid during the second quarter of 2009 and be operational by the fourth quarter of 2011. The design consultant submitted Design Submittal No. 3 in May 2008. Sanitation District and OCC staff members are currently working with the City of Newport Beach to ensure Program Mid-Year Report— FY08/09 '" that all parties are satisfied with the proposed facilities and that the Mariners Mile architectural and landscaping ordinances are interpreted correctly. Coordination is ongoing to determine how operations will transition from the old pump station to the new pump station. This transition includes proper abandonment of existing buried infrastructure and limited shutdowns of the Pacific Coast Highway force main system. Surveying and potholing efforts have been completed to identify existing utilities at the site. Ii Rockye Point e ■ e Station Collections Facilities Engineering Projects Collections FE projects combine to make up a miscellaneous small capital improvement program related to safety, reliability and improvements within the collections system, where the professional design consulting services for each project are valued at less than $100,000. These smaller, high-priority projects are individually tracked within the overall FE budget for procurement of engineering and contractor services as needed to maintain reliable operations. As of December 2008, seven projects have been completed, two projects are in construction, and five projects are in the design phase. ' Program Mid-Year Report - FY08/09 A ATERR MANAGEMENT he Water Management subprogram is composed of three projects, the largest being the Groundwater Replenishment (GWR) System (J-36). A summary update of this project is provided in the following section. Water Management projects that were monitored and maintained by the Planning Division included Water Conservation (J-72) and Long-Term Flow Monitoring Program (J-32-2). 1,31 Mvaix WxW Camp.Fever,Mtllee MWNMwkaa In:. 0)M9B Q $2.W2,3. O XapeniYvriw„SYvam Swrercn CImeE V,gn9 !fr] WA Wn Na 513.295.W3 CYYbO Rcpm CxRIeJ WA WA Ne W lJae R({Oe rWe WA WA Na W Noll No Q h,Cm4,aM 8deNb.Yqula EWied nwe Xun 91wtCRa.AI FAC.utlbuaYw WtlC tlIM&4c pPWll medd FtlRbbtl CmSMbn eaeA1 EAC n,apppwJ pypl py 10 pure o mqa O PrCmmttlbn 4tleJb uFAG YNOYa ff1.SM.SL YI\MMS MOIM'a pmuaEn2u W^ryp. f]W.0[O.Wp - inararos tloutl,ranmleE,oe M1,Eaep�e0. SM== W Cu MAppowd9 l Flmeb alGylalm lFACI J-36 Groundwater Replenishment System The J-36 project is a joint project of the Orange County Water District (OCWD) and the Sanitation District to reclaim up to 70 mgd of the Sanitation Distric's secondary effluent and for protection and recharge of Orange County's groundwater aquifer. The GWR System will also provide up to 100 mgd of peak storm-flow relief to the Sanitation District's ouffall system. This system uses a three-step purification process that includes microfiltration, reverse osmosis, and ultraviolet light with hydrogen peroxide, resulting in water of near- distilled quality. Multiple construction contracts were issued to build the Advanced Water Purification Facility, pipelines and injection wells, all of which are now complete. Dedication ceremonies were conducted in January 2008 for principals, the general public, and staff. With California State Department of Public Health approval„ OCWD started injecting the reclaimed water into the seawater intrusion barrier on January 10, 2008, and percolating Program Year End Report - FY08/09 Page 25 the water at the spreading basins in Anaheim on January 17, 2008. From January through the end of December 2008, more than 14 billion gallons of water were reclaimed through the GWR System. Program Mid-Year Report— FY08/09 JOINT WORKS AND SPECIAL PROJECTS Joint Works projects benefit both Plant 1 and Plant 2. These projects include the renovation of existing facilities and the construction of new facilities. These projects involve mechanical, electrical, and instrumentation and control systems, as well as the structures that house these systems. FEJ FaciGYea EnBlneeMg-Joml Wong Gana DaM - - O 52T.130.251 O J ilk loodaMy Pmeel and Roulaity Dun planar SW Simian. Sou1bgConted, 3`3AW Q $19.593.N1 O J3 Plead 1 Pat..2 Con.SItum Umub Wormy - - 4MV12 O' 911,1M,a0e O . M.Claufi.WU annual.Plan.l pmM MuMy PenwnM1es 6 Ro and IConn FF"minc Y1NB O' M,159,995 O YO Cable Tmy improvements UmeN Mum, - - 12/YI9 © MIJ15,425 O }.n Effluent Pump SblW,Mnto UmeM MUMy 31nalvuW, JF'Slw Man O NO'lea'a% 0 (Replace}%) Cw ennumm,Inc. }TB Nr Mabry Improvements Dew MacOuald MMIm%mle - 011131M O s11, Tatt ©' J-Bl CeMnl Genemean ANomean Goes MetAonak 0111811 O M.451,113 O J♦b FW Suppression la,Samm and CeM DeM RMS Elpinee,lnp ygga O sl."I'aal O RW1M Equipment at Pi lal one aDal2q ln, J47 "dome,RNmblebmenl el part l ChN MecLm1 O $514,00 Q }102 Tmannam PMnl Suanlo Plan Upnak Are Bunor O s4,74a.a99 O JAN IMnPe.GaLLlne Rehabilitation Wady Smanendl - - 1M112 Oe $3,752.191 O Torapeary}109 SewMy Samademdu To Pend vknN%IM `V21/11 O' $1.913.767 O NO9 Cengm Cooling Wemr Spears yklmla PoM 7I1V12 O $11.373.351l O Replacement Pmletl SP-95 Plant 2 Maimmeance Bullring Made Dank DrvM Englnnadng 7/81a O 1302.445 CbeadP ,mm, M. WA WA Na s27.M 553 Can..Pmjada Canceled NIA N/A na S17.M3,073 Fut—Pmlmds Fulum NIA N. ad $51176.497 T .PUC PPAJEMMIDMW. - 113K1S2,M1 Q ann ENma.IM ..,a.al olm-man 7nwn rn.Encmeowmn Pm W+auuw.i�,nl... Joint Works and Special Protects Subprogram ..,.,a.memelwa,edaaurlh�opvmnlamm. 9udtat vs.EAL Qn,�..wm.ss.euea uclnamu.Pgwl. az4+ss,se1 i4ro,Dg0,ao0 -_ Cad ttO.LW 520a=000 — nr4.ur.ar s1nd.000,0011 m CumMlppmna wpat [ernes atcwngaaan lFi,cl Air Quality Improvements (J-79) The J-79 project identifies and evaluates the sources of toxic air emissions at both Plant 1 and Plant 2. The evaluation was conducted using air quality modeling techniques approved by the South Coast Air Quality Management District (SCAQMD). The modeling identified the Central Generation Facilities at Plant 1 and Plant 2 to be primary sources of toxic air emissions. In June 2008, the Sanitation District completed a pilot study on one engine at Plant 2 to reduce the exhaust gas emissions. The pilot plant consisted of a catalytic oxidation unit on the exhaust of Engine #3 at Plant 2. The pilot study was successful at reducing volatile Program Mid-Year Report—FY08/09 Page 27 organic compounds (VOC) and carbon monoxide (CO) emissions, but it did not provide additional reductions in oxides of nitrogen (NOx). SCAQMD has issued new regulations (Rule 1110.2)for gas-fired internal combustion engines, which include a limit of 11 parts per million by volume (ppmv)for NOx that was not achieved during the pilot study. In November 2008, the Sanitation District embarked on a new, year-long pilot study at Plant 1 to demonstrate compliance with Rule 1110.2. The goal of the pilot work is to reduce the regulated constituents to the following limits—VOC to 30 ppmv, CO to 250 ppmv, and NOx to 11 ppmv. The pilot unit will employ technology consisting of catalytic oxidation and selective catalytic reduction. Central Generation Automation (J-79-1) The J-79-1 project will replace the engine control systems for the Central Generation Facilities at Plant 1 and Plant 2. There are three 2,500-kilowatt (kW) engine-generators at Plant 1 and five 3,000-kW engine-generators at Plant 2. Work will include the upgrade of the control panel for the 1,000 kW-steam generator at Plant 2 and will provide improved electrical load management and interplant communications. The sub-project J-79-1A will provide new continuous emissions monitoring systems (CEMS) on each of the engines at Plant 1 and Plant 2. Bids for Contract J-79-1A were received in June 2008, and the Sanitation District awarded the construction contract in September 2008. Work on installation of the CEMS units began in November 2008. Requests for Proposals to replace the engine control systems were issued in August 2008, and the proposals were received by the Sanitation District in October 2008. Due to the technical nature of the project, the Sanitation District employeed a qualifications-based solicitation process. Selection of the most qualified firm occured in November 2008, and fieldwork will begin in February 2009. Joint Works Facilities Engineering Projects Joint Works FIE projects collectively make up a miscellaneous small capital improvement program related to plant safety, reliability, and improvements covering more than one facility or the Sanitation District as a whole, where the professional design consulting services for each project are valued at less than $100,000. These smaller, high-priority projects are individually tracked within the overall FE budget for procurement of engineering and contractor services as needed to maintain reliable operations. As of December 2008, two projects have been completed, no projects are in construction, and four projects are in design. Page 28 Program Mid-Year Report—FY08109 Vision Statement To maintain world-class leadership in wastewater and water resource management. Mission Statement We, the employees and the board of directors of the Orange County Sanitation District, are committed to protect public health and the environment by developing, integrating, and implementing fiscally responsible solutions to wastewater, water reclamation, and watershed protection issues. We are a values-based organization dedicated to upholding and consistently demonstrating the attributes affirmed in our Guiding Principles. This document is printed on recycled paper. il- 1 �a 1\b �aUT1C"' VMM 7- 1 N1V NN„�� Distributed at the gperations E` v Committee Meeting 'o a a f��Na In xW e May 6, 2009 MEMORANDUM TO: Board of Directors James D. Ruth, General Manager FROM: Lorenzo Tyner Director of Finance and Administrative Services SUBJECT: $200 MILLION DEBT ISSUANCE In December of 2008, the Board and the Administration Committee gave staff approval to proceed with a new $200 million debt issuance when the financial markets met the Sanitation District's criteria of a target not to exceed 5%. While we were prepared to complete bond pricing on Wednesday, March 15, 2009, we confirmed with our financial advisor that the financial markets had shifted out of our specified range to 5.35%. Therefore, we delayed the issuance for a more advantageous time. As a result of recent more favorable markets, on April 22, 2009, we were able to complete the Issuance with a rate of 4.72%. The present value of the interest saved by the Sanitation District by delaying the issuance from March until April is approximately $15,000,000. Also, issuing at 4.72%, 28 basis points below the target maximum, results in a savings of nearly $7,000,000. 1 appreciate your patience during this delay. Please feel free to contact me if you have any questions or concerns. JDR:LT:lc H:WeptWstl\210\vaneWtlminCommWDMIN200Mdmin Commltlee_Mals\05-13-0e\M BondissuanmD43009.doc Operations Committee FY09-10 Budget Update May 6, 2009 FY09-10 Budget Update orange county sanitation District Maye.2009 Highlights of the Proposed Budget ♦ Economics—Orange County inflation projected to be 2.9% ♦ Revenue—OCSD single-family rates increase 10%to$221 ♦ Reserves—current reserve policy is unchanged ♦ Debt Financing,Certificates of Participates (COP)—the District will continue to issue COPS as the primary method of financing its capital program Highlights of the Proposed Budget ♦ Two-year budget—second year update ♦ Staffing levels—1%increase to 648 FTEs ♦ Capital Improvement Program(CIP)- 13%increase in revised FY09-10 budget over original budget ♦ Strong financial position—AAA Bond Rating Distributed at the perations Committee C-(-� lf'" 1 Meeting Operations Committee FY09-10 Budget Update May 6, 2009 FY09-10 budgeted revenue and expenditures will approach$500 million respectively. Pavanwa: fY 00.10 Feese Charges S2«M (W.) Gertvulrrcorne SInM (25°.) oeu vrocecas SInM 95.) Tolal Pawnwa SI Nl CIG IircYYlp0aM 5waicel S313M I61?%1 TraeNgt&Dp SIOSM 12ml Csb/Ap Cwb• s a&M Ib%I TPW EgMtllvaa SMNI Revenues are shown in three major components. F...& FY09-10 Revenues CMras& Total:S484 Million so% ..M MN 25% 3120M Most OCSD revenue is related to User Fees. FY09-10 General User Fees $211 M Permit User Fees $ 10 M Capital Facilities Capacity $ 23 M Charge Total Fees&Charges $244 M 2 Operations Committee FY09-10 Budget Update May 6, 2009 Non-fee related General Income represents one fourth of total revenue at $120 million. FY09-10 Property Tax $ 68M Interest $ 19 M Other $ 33 M Total General Income $120 M Most of OCSD's costs are related to the Capital Improvement Program. FY09-10 CIP $343 M(an) Treatment and Disposal $108 M v ) Central Agency Costs, $ 48 M err Total Expenditures $499 M The CIP will begin to decline after reaching Full Secondary Treat rent letrels In 2013. YmY ase• _-- ---- CIPBatleet __ -----I/ �_ - ------- ----- �Ftiaso -.- pprY mrY --Y 0 osfb w0) 003 loll liL Mlr rM M 3 Operations Committee FY09.10 Budget Update May 6. 2009 Non-fee related General Income represents one fourth of total revenue at$120 million. FY09-10 Property Tax $ 68 M Interest $ 19 M Other $ 33 M Total General Income $120 M Most of OCSD's coats are related to the Capital Improvement Program. FY09.10 CIP(inwuep WWseNJN) $343 M lee+rl Treatment and Disposal $108 M(22%) Central Agency Costs- S 49 M Yap Total Expenditures $499 M •M�MMwniurp.Lw+enO The CIP will begin to decline after reaching Full Secondary Treatment levels In 2013. 100M CIP ............ .. . .M ----- �FVOO-0O --- ON: .... . ... ......... ........ .. NO .... ........... . ... ..... t100Y ............................................... pN OLOt Wro MG) 060I 1D11 Yale tits 1L11 INO 3 Operations Committee FY09-10 Budget Update May 6,2009 Operating Budget Assumptions ♦ Average daily flow projections remain constant at 230 million gallons per day(MGD) ♦ All existing secondary treatment facilities will be operated to meet effluent quality limits Within the Consent Decree ♦ Operating Expenses will increase In most areas in the second year of the two-year budget as previously adopted $156 million tarry of the proposed FY09.10 budget Is allocated to Operating Expenses. MDPtW ProixMed CIP $229 M pa%I $25BM In%I Caw service $ "Mom $ m M oml Operating Costs $15x M Ib%I $15a M lal%I Total Budgeted Oullayc $467 M $499 M Operating costs are proposed to Increase by$2.1 million(1A,4 SeMdaeand Berefits $BOAM .2.5 $92.5M Cherrir addQ1nrsupplbs 23A ✓1.9 25.6 Contractual sand., 31.e -0.7 31.1 aepaira and Maiwenan. 10.1 .0.1 10.2 Utlliue, 10.2 -0A 9.8 %....new M muffing 1.4 -02 12 Otter Ea.n., 9.3 -0.9 lA Cost Mb.aon (21.5) -0.3 p12) Trial O.ratlw Eepena. S 1..O M .2.1 It INA M 4 Operations Committee FY09-10 Budget Update May 6, 2009 The majority of expenditure changes will occur in five categories: 1. Salaries and Benefits +2.5 M 2. Chemicals +1.9M & Other Contractual Services +1.3M 4. Solids and Waste Disposal —1.7 M 5. Natural Gas —1.0 M Salaries&Benefits increase due to vacancy shrinkage and Increased retirement. Map pmpo F,epero0 1Y 10 M..' FYO&10 Salary&Wage If64.5M +1.1 $65.6M Be6remem Coat 16.2 +1A 17.6 Other Benefits 9.3 0.0 9.3 Total Personnel It No M +25 $92.5 M Staffing Assumptions ♦ 7 additional full-lime equivalent(FTE)positions are included,bong the total authorized to 648 ♦ A 3%vacancy factor will be budgeted for authorized positions ♦ Salary adjustments,based on the MOUs, Mill result in increases betemen 4%5% 5 Operations Committee FY09-10 Budget Update May 6,2009 Increase in chemical unit costs is projected to be greater than anticipated. Adopted proposed Frupowd FYOMO change FYo610 Oislnleclbn $ 7.1M +0.4 $7.5M Oft Control 7.2 +1.1 8.2 Coagulants 7.0 +0.5 7.6 Other Cheminale 2.4 - 0.1 2.3 Total Chemicals $23.7M +1.9 $25.6M Other contractual services Increase due to additional manhole rehab and replacements. Adopted proposed proposed FY09-10 Opened FYWl0 Ground.Jannonal B Seduriry It"M - 0.1 $1.2 M Outside Lab 0.0 0.0 0.8 County Service Fee 0.4 0.0 OA Temporary Services 0.4 +0.4 0.8 Other 1.5 +1.0 2J1 Total Oher Contractual Svcs. $4.2M +1.3 $5.5M Biosolids disposal costs decrease due to unit costs being lower than anticipated. Adapted proposed proposed FY0sl0 Ohwee FY0o-10 Solids Removal $21.$M-1.2 $20.6M Residual So00F/edl 2.9 -OS 2A TOtsI SaIWs$WacM Otsposal $24.7 M -1.7 $23.0 M 6 Operations Committee FY09-10 Budget Update May 6, 2009 Overall decrease in utilities budget as electricity continues to rise but natural gas falls due to increase CoGen efficiencies. Adopt" Prupcood P,Wor.d FYa&10 Mo... FYO&10 Ele tadN $ 6.3 M .0.6 $6.9 M Natural Gas 2.0 -1.0 1.0 Water 1.6 0.0 1.6 Other 0.3 0.0 0.3 Total UllNeea $10.2M —0.4 E9.6M Next Steps ♦ Summary presentations to the Operations and Administration Committees in June ♦ Presentation and budget adoption at the June Board meeting Questions? Visit our website: www.00SD.com 7 STATE OF CALIFORNIA) ) SS. COUNTY OF ORANGE ) Pursuant to California Government Code Section 54954.2, 1 hereby certify that the Notice and Agenda for the Operations Committee Meeting of Orange County Sanitation District to be held on May 6, 2009 was duly posted for public inspection in the main lobby of the Districts' offices on April 29, 2009. IN WITNESS WHEREOF, I have hereunto set my hand this 29th day of April 2009. il` K�ommitt Secretary Orange County Sanitation District HADEP GENDA\OPERATIONS COMMITTEBAGENDA CERTIFICATION.DOC N V 5 Nr 1 ORANGE COUNTY SANITATION DISTRICT e e THE ENVVPOa+ 1OB44 Ellis lurenue Fountain Valley 1: 92)OB]01B NOTICE OF MEETING Rleging Md. PO.S.B127 Foa,rtdn Valley,l S27288127 ..pced.cam OPERATIONS COMMITTEE Phone 1714)9622411 Engineering, Operations & Maintenance, and Technical Services F. (714)062 1356 ORANGE COUNTY SANITATION DISTRICT Serving arener,n WEDNESDAY, MaV 6, 2009 — 5:00 P.M. area Buena aan Po Twft�WE, ADMINISTRATIVE OFFICES FNlarton 10844 ELLIS AVENUE carde„car,re FOUNTAIN VALLEY, CA 92708 HwNiigwri eaean www.ocsd.com k dne Le Hub. La Petrr�e Lre Alemrtns The regular meeting of the Operations Committee of the Orange County ,v.,, Beech Sanitation District will be held at the above location, date and time C "W Fyecarnie Sanm A. Seel BEHHh semm� Trsin W.Perk M ne bnde Cb a Mesa 5ennery Cisaia lv -y cq $BnRerY<hRlNrt hw,e Remo Werar Umurct County el Ltange We P,v M PUW.heehh end the enNmnmen[by pm,ntling e/lecove aassweter collecroon,treeunen[,end recycling OPERATIONS COMMITTEE BOARD MEETING DATE MEETING DATE 05/06/09 05120109* O6/03/09 06/24/09 07/01/09 07/22/09 AUGUST DARK 08/26/09 09/02/09 09/23/09 10/07/09 10/28/09 11/04/09 11118109* 12/02/09 12116109* JANUARY DARK 01/28/10 02/03/10 02/24/10 03/03/10 03/24/10 04/07/10 04/28/10 05/05/10 05/26/10 *Meetings are being held on the third Wednesday of the month. ROLL CALL OPERATIONS COMMITTEE Engineering, Operations & Maintenance, and Technical Services Meeting Date: May 6, 2009 Time: 5:00 p.m. Adjourn: COMMITTEE MEMBERS (14) Bill Dalton Chair David Shawver Vice Chair Charles Antos Tom Beamish Troy Edgar Patsy Marshall Fred Smith — alternate Roy Moore Joy Neu ebauer Sharon Quirk Harry Sidhu Constance Underhill Don Webb Doug Davert Board Chair Larry Crandall Board Vice Chair OTHERS Brad Ho in, General Counsel STAFF Jim Ruth General Manager Bob Ghirelli Assistant General Manager Nick Arhontes Dir. of Operations & Maintenance Jim Herberg, Director of Engineering Ed Torres, Director of Technical Services Lorenzo Tyner, Director of Finance and Administrative Services Lilia Kovac, Committee Secretary Dean Fisher Tod Haynes John Linder AGENDA REGULAR MEETING OF THE OPERATIONS COMMITTEE Engineering, Operations, & Maintenance, and Technical Services ORANGE COUNTY SANITATION DISTRICT May 6, 2009 — 5:00 P.M. ADMINISTRATIVE OFFICE 108" Ellis Avenue Fountain Valley, California 92708 www.ocsd.com PLEDGE OF ALLEGIANCE DECLARATION OF QUORUM PUBLIC COMMENTS REPORT OF COMMITTEE CHAIR REPORT OF GENERAL MANAGER • Budget Review— L. Tyner CONSENT CALENDAR (t -12) 1. Approve the minutes of the April 1, 2009 Operations Committee meeting. 2. a) Award a purchase order contract to J.F Shea Co., Inc. for Replacement of Three (3) Hazardous Materials Storage LockerstModules& Shower Eye/Face Wash Station at Plant 2, Specification No. S-2009-401 BD, for an amount not to exceed $186,000; and, b) Approve a contingency of$13,020 (7%). (Book Page 9) Book Page I Operations Committee May 6, 2009 Page 2 3. a) Approve a sole source purchase order to be issued to Putzmeister America, Inc. for Plant 2 No. 4 Cake Transfer Pump Repair Services, for an amount not to exceed $110,000; and, b) Approve a contingency of$22,000(20%). (Book Page 11) 4. Ratify Change Order No. 1 to Purchase Order No. 71172-OS issued to Jamison Engineering for Plant 1 Headworks Splitter Box No. 3 Channel Repair Services for an additional amount of $22,000, increasing the total amount not to exceed $125,180. (Book Page 12) 5. Recommend to the Board of Directors to approve the final Sewer System Management Plan prepared by staff dated May 1, 2009. (Book Page 14) 6. Recommend to the Board of Directors to: a)Award a contract to Polydyne, Inc., for the Purchase of Liquid Cationic Polymer, Specification No. C-2008-395BD, for a unit price of $1.975 per active pound delivered for Solution polymer plus applicable sales tax, and $1.85 per active pound delivered for Mannich polymer plus applicable sales tax, for an estimated annual amount of$2,282,500 for the period July 1, 2009 through June 30, 2010, and four one-year renewal options; and, b) Approve a 10%annual unit price contingency. (Book Page 19) 7. Recommend to the Board of Directors to: a)Award a contract to U.S. Peroxide, LLC, for Regional Odor and Corrosion Control Services, Specification No. C-2009405BD, at the unit prices of$1.78/gallon delivered plus tax for Ferrous Chloride; $1.72/gallon delivered plus tax for Hydrogen Peroxide (27%), indexed to the natural gas previous quarter average NYMEX Henry-Hub gas base price of$9.00 per MMBtu, and an escalation index factor of an additional $0.025/gallon for every increase of$1.00 above the indexed cost; and, $2.19/gallon delivered plus tax for Bioxide, for an estimated annual amount of$3,300,000, for the period July 1, 2009 through June 30, 2010, and four one-year renewal options; b) Award a contract to Hill Brothers Chemical Company for Regional Odor and Corrosion Control Services, Specification No. C-2009405BD, for an initial delivered unit price of $1.736/gallon plus tax for Magnesium Hydroxide, indexed to the natural gas previous month's daily average NYMEX Henry-Hub gas base price of$13.25 per MMBtu, and an escalation index factor of an additional $0.06 per gallon for every increase of$1.00 above the indexed cost, for an estimated annual amount of$2,500,000 for the period July 1, 2009 through June 30, 2010, and four one-year renewal options; and, C) Approve a 10%annual unit price contingency. (Book Page 21) Book Page 2 Operations Committee May 6, 2009 Page 3 8. Recommend to the Board of Directors to approve Amendment No. 4 to the Agreement for Private Operation and Maintenance of Oxygen Generation System at Plant No. 2 with Air Products and Chemicals, Inc., (P.O. 43063-OB), extending the contract for a two-year period beginning February 2, 2010 to February 1, 2012, for an annual amount of$321,766.80 adjusted annually based on the Consumer Price Index for the Los Angeles/Orange County/Riverside area. (Book Page 23) 9. Recommend to the Board of Directors to authorize staff to enter into negotiations with Malcolm Pimie, Inc. for construction support services for Replacement of the Rocky Point Pump Station, Contract No. 5-50. (Book Page 25) 10. Recommend to the Board of Directors to authorize staff to enter into negotiations with Dudek, Inc. for construction support services for Bayside Drive Improvement, Contract No. 5-61. (Book Page 27) 11. Recommend to the Board of Directors to receive and file the ADA Compliance Feasibility Study for P1 Miscellaneous Buildinqs Office Improvements, Project No. FE07-08, dated August 2008, prepared by Willdan. (Book Page 28) 12. a) Approve Plans and Specifications for the P2 EPSA Roof Access, Project No. FE07-07, on file at the office of the Clerk of the Board; b) Approve Addendum No. 1 to the plans and specifications; c) Receive and file bid tabulation and recommendation; d) Award a contract to DenBoer Engineering&Construction, Inc.,for P2 EPSA Roof Access, Project No. FE07-07, for an amount not to exceed $134,000; and, e) Approve a contingency of$26,800(20%). (Book Page 30) ACTION ITEMS (13—14) 13. Recommend to the Board of Directors to approve Amendment No. 9 to the Professional Services Agreement with Integrated Program Management Consultants, a joint venture of Parsons Water and Infrastructure, Inc., and CH2M Hill, Inc., authorizing: a) Establish an amount not to exceed $15,877,732 for year eight(Fiscal Year 2009-10) of the ten-year contract; and, b) Increase the total amount of the ten-year contract to a total amount not to exceed $108,954,978. (Book Page 32) Book Page 3 Operations Committee May 6, 2009 Page 4 14. Recommend to the Board of Directors to: a)Approve Plans and Specifications for the P2 Plant Water PS Discharge Piping, Project No. FE07-17, on file at the office of the Clerk of the Board; b) Approve Addendum Nos. 1 and 2 to the plans and specifications; c) Receive and file bid tabulation and recommendation; - d) Receive and file letter dated February 5, 2009, from Atlas Allied, Inc., requesting relief of their bid in the amount of$323,900 due to a mathematical error; e) Award a contract to Ken Thompson, Inc., for P2 Plant Water PS Discharge Piping, Project No. FE07-17,for an amount not to exceed $460,000; and, f) Approve a contingency of$92,000 (20%). (Book Page 39) INFORMATION ITEMS No items DEPARTMENT HEAD REPORTS CLOSED SESSION ..... . - .. -...... .. ................_.......__----.............-........................ .i During the course of conducting the business set forth on this agenda as a regular meeting of the Committee, the Chair may convene the Committee in closed session to consider matters of pending real estate negotiations, pending or potential litigation, or personnel matters, pursuant to Government Code Sections 54956.8, 54956.9, 54957 or 54957.6, as noted. Reports relating to (a) purchase and sale of real property; (b) matters of pending or potential litigation; (c) I employee actions or negotiations with employee representatives; or which are exempt from public disclosure under the California Public Records Act, may be reviewed by the Committee during a permitted closed session and are not available for public inspection. At such time as the Committee takes final actions on any of tbese,subjects,,the minutes will,reflect,all required.disclosures,of,information. Convene in closed session Reconvene in regular session. Consideration of action, if any, on matters considered in closed session. Other business and communications or supplemental agenda items, if any. Adjournment—The next Operations Committee meeting is scheduled for Wednesday, June 3, 2009, at 5:00 p.m. Book Page 4 Operations Committee May 6, 2009 Page 5 Agenda Posting: In accordance with the requirements of California Government Code Section 54954.2, this agenda has been posted in the main lobby of the District's Administrative offices not less than 72 hours prior to the meeting date and time above. All public records relating to each agenda item, including any public records distributed less than 72 hours prior to the meeting to all, or a majority of all, of the members of District's Board, are available for public inspection in the office of the Clerk of the Board, located at 10844 Ellis Avenue, Fountain Valley, California. Items Not Posted: In the event any matter not listed on this agenda is proposed to be submitted to the - Committee for discussion and/or action, it will be done in compliance with Section 54954.2(b)as an emergency item or because there is a need to take immediate action, which need came to the attention of the Committee subsequent to the posting of agenda, or as set forth on a supplemental agenda posted in the manner as above, not less than 72 hours prior to the meeting date. Public Comments: Any member of the public may address the Operations Committee on specific agenda items or matters of general interest. As determined by the Chair, speakers may be deferred until the specific item is taken for discussion and remarks may be limited to three minutes. Matters of interest addressed by a member of the public and not listed on this agenda cannot have action taken by the Committee except as authorized by Section 54954.2(b). Consent Calendar: All matters placed on the consent calendar are considered as not requiring discussion or further explanation, and unless a particular item is requested to be removed from the consent calendar by a Director of staff member, there will be no separate discussion of these items. All items on the consent calendar will be enacted by one action approving all motions, and casting a unanimous ballot for resolutions included on the consent calendar. All items removed from the consent calendar shall be considered in the regular order of business. The Committee Chair will determine if any items are to be deleted from the consent calendar. Items Continued: Items may be continued from this meeting without further notice to a Committee meeting held within five(5)days of this meeting per Government Code Section 54954.2(b)(3). Meeting Adjournment: This meeting may be adjourned to a later time and items of business from this agenda may be considered at the later meeting by Order of Adjournment and Notice in accordance with Government Code Section 54955(posted within 24 hours). Accommodations for the Disabled: The Board of Directors Meeting Room is wheelchair-accessible. If you require any special disability related accommodations, please contact the Orange County Sanitation District Clerk of the Board's office at(714)593-7130 at least 72 hours prior to the scheduled meeting. Requests must specify the nature of the disability and the type of accommodation requested. ..........................--...........-.........._-_-__._.-.--..-----..--.__.-...--._.-.......................-....--_-----_.-................... ...............................-'---------. Notice to Committee Members: For any questions on the agenda or to place any items on the agenda, Committee members should contact the Committee Chair or Secretary ten days in advance of the Committee meeting. Committee Chair Bill Dalton (714)741-5000 camha Ra.garden-groye.org Committee Secretary: Lilia Kovac (714)593-7124 Ikovac0ocsd.com General Manager Jim Ruth (714)593-7110 iruthOocsd.com j Assistant General Manager Bob Ghirelli (714)593-7400 rghirelliMocsd.com Director of Technical Services Ed Torres (714)593-7080 etorres0ocsd.com i Director of Engineering Jim Herberg (714)593-7300 Iherbergeocsd.com i Director of Operations&Mntnc. Nick Arhontes (714)593-7210 narhontesnocsd.com j Book Page 5 MINUTES OF THE OPERATIONS COMMITTEE Engineering, Operations & Maintenance, and Technical Services Orange County Sanitation District April 1, 2009—5:00 p.m. A meeting of the Operations Committee of the Orange County Sanitation District was held on April 1, 20G9, at 5:00 p.m. in the Sanitation District's Laboratory Building. A quorum was declared present, as follows: Operations Directors Present: Staff Present: Bill Dalton, Chair Jim Ruth, General Manager David Shawver, Vice Chair Bob Ghirelli,Assistant General Manager Charles Antos Nick Arhontes, Dir. of Operations & Maintenance Tom Beamish Jim Herberg, Director of Engineering Leslie Daigle Ed Torres, Director of Technical Services Troy Edgar Lilia Kovac, Committee Secretary Roy Moore Dean Fisher Joy Neugebauer Norbert Gaia Sharon Quirk Tod Haynes Harry Sidhu John Linder Constance Underhill Karen Baroldi Doug Davert, Board Chair Kelvin Barwick Larry Crandall, Board Vice Chair Jim Bunor Jim Colton Operations Directors Absent: Norbert Gaia Ingrid Hellebrand Patsy Marshall Mike McCarthy Dean Pasko Others: Mike Moore Gino Rampagna, IPMC PUBLIC COMMENTS There were no public comments. REPORT OF COMMITTEE CHAIR Committee Chair Dalton did not give a report. REPORT OF GENERAL MANAGER The General Manager did not give a report. Book Page 6 Minutes of the Operations Committee April 1, 2009 Page 2 INFORMATION ITEM 1. Presentation and Tour of New Taxonomy Lab The Director of Technical Services, Mr. Ed Torres, introduced Dean Pasko, Environmental Supervisor, whose responsibility includes overseeing the in-house Taxonomy Program. The Directors were given a presentation and a tour of the taxonomy lab. A follow-up presentation - was requested for reporting on cost savings and effectiveness. CONSENT CALENDAR (2-5) 2. MOVED, SECONDED, AND DULY CARRIED: Approve the minutes of the March 4, 2009 Operations Committee meeting. 3. MOVED, SECONDED,AND DULY CARRIED: Recommend to the Board of Directors to: (a)Approve a Professional Consultant Services Agreement with Lee& Ro, Inc. to provide construction support services for Replacement of the Bitter Point Pump Station, Contract No. 5-49, for an amount not to exceed $1,493,633; and, (b) Approve a contingency of$149,363 (10%). 4. MOVED, SECONDED,AND DULY CARRIED: Recommend to the Board of Directors to approve Amendment No. 3 to Cooperative Projects Grants Program Contract No. 0503 with the City of Placentia providing for a two-month time extension. 5. MOVED, SECONDED,AND DULY CARRIED: Recommend to the Board of Directors to: (a)Approve a Purchase Agreement with Jamison Engineering Contractors, Inc. for On-Call Contractor Support Services, Specification No. CS-2009-403BD,for the period July 1, 2009 through June 30, 2010 for a total annual amount not to exceed $229,129.70, with four one-year renewable options; and, (b) Approve an annual contingency of$22,912.97 (10%). ACTION ITEMS There were none. INFORMATION ITEMS-Continued 6. Renewal of Ocean Discharge Permit Mr. Ed Torres introduced Karen Baroldi, Regulatory Specialist and Project Manager, who is responsible for the renewal of the National Pollutant Discharge Elimination System (NPDES) ocean discharge permit, issued jointly by the Environmental Protection Agency and California Regional Water Quality Control Board. The permit expires on October 30, 2009, and submittal for renewal is scheduled for May 3, 2009 for qualifying the plants' operations. Book Page 7 Minutes of the Operations Committee April 1, 2009 Page 3 DEPARTMENT HEAD REPORTS Director of Engineering, Jim Herberg, presented a brief overview of the Capital Improvement Program and the proposed CIP budget for 2009/10. Mr. Torres reported that the Sanitation District is compliant with ocean monitoring, source control and biosolids regulatory requirements, maintaining the Environmental Management System rating. The Director of Operations and Maintenance, Nick Amontes, reported on an emergency procurement due to a hydraulic pump failure. CLOSED SESSION There was no closed session. OTHER BUSINESS, COMMUNICATIONS OR SUPPLEMENTAL AGENDA ITEMS, IF ANY There were none. ADJOURNMENT The Chair declared the meeting adjourned at 6:29 p.m. The next Operations Committee meeting will be held on Wednesday, May 6, 2009, at 5:00 p.m. Submitted by: Lille Kovac Committee Secretary H:WepAs9endak0pemfiws Commlaeel0pem9pns 20091D4090401090pere0ans MlnWes.dom Book Page 8 OPERATIONS COMMITTEE weeny D. TO Bd.Of Dir. 05/06/09 AGENDA REPORT Iem Number Item Number Orange County Sanitation Distract Z FROM: James D. Ruth, General Manager Originator: Nick Arhontes, Director of Operations and Maintenance SUBJECT: REPLACEMENT OF THREE HAZARDOUS MATERIALS STORAGE LOCKERS/MODULES & SHOWER EYE/FACE WASH STATION GENERAL MANAGER'S RECOMMENDATION 1. Award a purchase order contract to J.F Shea Co., Inc. for Replacement of Three (3) Hazardous Materials Storage Lockers/Modules & Shower Eye/Face Wash Station at Plant 2, Specification No. S-2009-d01 BD, in an amount not to exceed $186,000; and, 2. Approve a contingency of$13,020 (7%). SUMMARY • The three hazardous materials storage lockers/modules currently in service at Plant No. 2 have been exposed to the elements of a coastal environment, which includes high humidity and salty air, for a period of approximately 10 years. A condition assessment of the integrity of these modules was recently performed with the assistance of staff of the City of Huntington Beach Fire Department. The results of the evaluation indicated that due to extreme corrosion affecting the structures and their fire suppression components they are beyond their useful life, their performance for the intended use is inadequate, and they should be replaced. • Specification No. 5-2009401 BD was developed for the new lockers/modules and related equipment to include one shower eye/face wash station to be installed. Specifications required the best available protective coating to provide an extended life cycle. On April 7" sealed bids were received from five different contractors to purchase and install a new set of three Hazardous Materials Storage Lockers/Modules, and to remove the existing ones. The results indicated that the lowest bidder was J.F.Shea Co., Inc. with a cost of$186,000.00. A bid summary is provided below. FOIm NO.M 102 2 Rn, OMI1 7 Page 1 [look Page 9 PRIOR COMMITTEEIBOARD ACTIONS None ADDITIONAL INFORMATION Bid Summary Firm Cost J.F.Shea Construction, Inc. $186,000.00 Humphrey Constructors $197,994.00 Jmart Group USA $217,953.40 SS Mechanical Corp. $220,742-00 J.E. Plount and Company $276,572.54 Funding for this project has been budgeted for in FY O8/09 using the small CIP replacement project fund. This complies with authority levels of the Sanitation District's Delegation of Authority. Award Date: 5/6109 Contract Amount: $186,000 Contingency: $13,020 (7%) Fm No,OV 1t NeNwE=1Nl Page 2 Book Page 10 OPERATIONS COMMITTEE Meeting Date To6d.ofDir. 05/06/0g AGENDA REPORT Item Numbe Item Number 3 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Nick Arhontes, Director of Operations and Maintenance SUBJECT: REBUILD NO. 4 CAKE TRANSFER PUMP GENERAL MANAGER'S RECOMMENDATION 1) Approve a sole source purchase order to be issued to Putzmeister America, Inc., for Plant 2 No. 4 Cake Transfer Pump Repair Services, for an amount not to exceed $110,000; and, 2) Approve a contingency of$22,000 (20%). SUMMARY • The purpose of the maintenance service is to rebuild one of four Putzmeister cake transfer pumps at Plant No. 2. The pumps are used to transfer biosolids cake from the dewatering building to the truck loading station. • Putzmeister America, Inc. provided the District with a quote for the service for an amount not to exceed $110,000, and the contingency is needed for any additional items that might be discovered when the unit is disassembled. • The purchase is being made using the sole source purchase list approved by the Board in May 2007. PRIOR COMMITTEE/BOARD ACTIONS May 2007: Approved Sole Source Procurement List for Repairs, Maintenance, and Service of Existing Equipment. ADDITIONAL INFORMATION This item was not budgeted but funds are currently available in the overall joint operating budget as other planned maintenance projects have not yet been completed and lower risk may be deferred to FY 2009/10. Award Date: 5/6/2009 Contract Amount: $110,000 Contingency: 20 h ($22,000) Page 1 Book Pa,,,e I I OPERATIONS COMMITTEE Meeting Date To Bd.ofDir. 05/06/09 AGENDA REPORT tem NumBe I[em Number 9 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Nick Arhontes, Director of Operations and Maintenance SUBJECT: PLANT 1 HEADWORKS SPLITTER BOX NO. 3 CHANNEL REPAIR SERVICES GENERAL MANAGER'S RECOMMENDATION Ratify Change Order No. 1 to Purchase Order No. 71172-OS issued to Jamison Engineering for Plant 1 Headworks Splitter Box No. 3 Channel Repair Services for an additional amount of$22,000, increasing the total amount not to exceed $125,180. SUMMARY • The purpose of this urgent repair work is to repair the construction joint connecting the discharge channel to the Grit Removal system, as well as sandblast, repair and apply a protective coating on the inside of the concrete channel that connects the Plant No. 1 Headworks to the Eastside Primary Clarifiers 1-5. This channel has been in service since 1987. • Repair work was completed on Channels No. 1 and 2 over the past 20 months. Based on the information gathered during those repairs and a brief inspection of the No. 3 channel, an estimated repair cost was developed. Once No. 3 channel was taken out of service for an extended period of time and a thorough cleaning and corrosion inspection was completed, more damaged concrete was found than originally anticipated. • The additional repair work was authorized to complete a long -term repair while the system is out of service and to avoid future long-term shutdowns that cannot be completed until the new Headworks facility at Plant No. 2 is operational. The Operations Committee was notified of the need for this change order at the April 2009 meeting. PRIOR COMMITTEE/BOARD ACTIONS March 2009: Operations Committee approved issuing a purchase order to Jamison Engineering for Plant 1 Headworks Splitter Box No. 3 Channel Repair Services. form No,1 N 102 2 Row".ovmmr Page 1 Book Page 12 ADDITIONAL INFORMATION None Award Date: 310412009 Contract Amount: $93,800 Contingency: $9,380(10%) 5/06/2009 $125,180 Form No a IW-2 A MIW Page 2 Book Page 13 OPERATIONS COMMITTEE Meedn9Date TOBd.ufDir. 0 5 /Ob/09 09/z0/09 AGENDA REPORT trem Number Ban Number s Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Nick Arhontes, Director of Operations and Maintenance SUBJECT: SEWER SYSTEM MANAGEMENT PLAN GENERAL MANAGER'S RECOMMENDATION Approve the final Sewer System Management Plan prepared by staff dated May 1, 2009. SUMMARY On May 2, 2006, the State Water Resources Control Board (SWRCB) issued Order No. 2006-0003-DWQ, Statewide General Waste Discharge Requirements (WDR) for Sanitary Sewer Systems. The Order required all public agencies owning more than one mile in length of sanitary sewers to apply for coverage under the general WDR no later than November 2, 2006 and to develop and implement a Sewer System Management Plan (SSMP) in accordance with the requirements and deadlines stipulated in the general WDR. Per the WDR, the final SSMP prepared by staff must be approved by the Board of Directors. PRIOR COMMITTEEIBOARD ACTIONS On October 22, 2008, the Board of Directors received and filed the SSMP Compliance Status Report dated September 24, 2008. On July 18, 2007, the Board of Directors approved the SSMP Development Plan and Schedule. On October 25, 2006, the Board of Directors approved the development and implementation of a compliance program with the Sanitary Sewer System WDR. Form No.DW10U 2 n...0ya167 Page 1 Book Page 14 ADDITIONAL INFORMATION Prior to the May 2, 2006 general WDR, California Regional Water Quality Control Board, Region 8, issued Order No. R8-2002-0014 entitled "General Waste Discharge Requirements for Sewage Collection Agencies in Orange County within the Santa Ana Region." That order, now rescinded, required a Sewer System Management Plan which OCSD produced on September 30, 2005. Requirements for that SSMP were nearly identical with the Statewide General WDR of 2006 with the following exceptions: Section 4 - Measures and Activities, is now called Operations and Maintenance Program Section 6 - Monitoring, Measurement and Program Modifications is now Section 9 with the same title Section 7— Overflow Emergency Response Plan is now Section 6 with the same title Section 8— Fats, Oils and Grease (FOG) Control Program is now Section 7 — FOG Control Program Section 9 — System Evaluation and Capacity Assurance Plan is now Section 8 with the same title. Therefore, there are no substantial changes with only minor rewrites to the current SSMP dated May 1, 2009. OCSD is currently in compliance with the state's general WDR and has completed all of the milestones required by the SSMP time schedule. ATTACHMENTS Executive Summary Fo No.O M-2 ReweCMIM? Page 2 Book Page 15 ES-1 EXECUTIVE SUMMARY The Orange County Sanitation District(OCSD)is requited to comply with the State Water Resources Control Board (SWRCB) Order No.2006-0003-DWQ adopted May 2,2006 (Order), entitled`Statewide General Waste Discharge Requirements (WDR) for Sanitary Sewer Systems." The purpose of the Order is to prevent Sanitary Sewer Overflows (SSOs)or sewer spills by establishing a statewide Monitoring and Reporting Program(MRP) and requiring each local or regional sewer agency to create and implement their own Sewer System Management Plan (SSMP) based on the mandatory requirements of the Order. The MRP requires each local or regional sewer agency to appoint a legally responsible official(LRO) and establish a monitoring and reporting organization to monitor and report all SSO's in accordance with the requirements of the Order and to have the LRO certify the SSO report via the California Integrated Water Quality System(CIWQS)website in the tnneframe required by the Order. If no SSO's occur during the course of any given month,the LRO is required to fill out,certify and send via the CIWQS website a"No Spill Certification" for that month documenting the fact that there were no SSO's for the month reported on. To comply with the essence of this Order,OCSD shall: ■ Proactively nonage the sewage systems it operates in a way that prevents SSOs; ■ Properly fund,manage,operate,and maintain all pans of the sewage collection system for which they are responsible; IN Construct and maintain the sewage collection system using trained staff(and/or contractors) possessing adequate knowledge, skills,and abilities,as demonstrated through a validated program;and ■ Fully comply with this Order. Failures to fully comply could bring about RWQCB action,regardless of whether or not an SSO has occurred. This Sewer System Management Plan (SSMP)is organized under paragraph D (Provisions) of the Order. The SSMP consists of eleven mandatory sections. Each section begins with a summary of the Order requirements,followed by these subsections: ■ Compliance Summary—A description of how compliance was achieved; ■ Compliance Documents—A listing of source documents that support compliance and the location of these documents;and, ■ Roles and Responsibilities—A listing of relevant staff roles and responsibilities. May 2009 Book Page 16 ES-2 The mandatory sections of the SSMP are as follows: ■ Section I—Goah The goal is to prevent and/or reduce SSO's and mitigate the effect of any SSO's that do occur.The goal requites a plan and schedule to properly manage,operate and maintain all parts of the sanitary sewer collection system. • Section II—Organization:The SSMP must identify the legally responsible official (LRO)or authorized representative as described in the Order. It must list and identify the organization responsible for operating and maintaining the sanitary sewer collection system including names and telephone numbers for management, administrative and maintenance positions and the chain of communication for reporting SSO's as required by the Order. ■ Section III—Legal Authority.Each local or regional sewer agency most demonstrate through legally binding procedures such as ordinances,agreements,etc. that it possesses the necessary legal authority to do what is required by the Order. ■ Section IV—Operation and Maintenance (O&bi) Program: The SSMP must include those elements that are required by the Order that set appropriate and applicable to the sewer agency's system of operation and O&M program ■ Section V—Design and Performance Provisions:The SSMP must demonstrate that the sewer agency has and appropriately uses design and construction standards and specifications for the installation of new sewer systems,rehabilitation and repair of existing sewer systems and has procedures and standards for inspecting and testing the installation of new sewers,pumps,etc.and for rehabilitation and repair projects. ■ Section VI—Overflow Emergency Response Plan: Each sewer agency shall develop and implement an overflow,emergency response plan that identifies measures to protect public health and meets the minimum requirements of the Order. ■ Section VII—FOG Control Program—Each sewer agency shall evaluate its sewer system and determine if a Fats,Oils and Grease (FOG)control program is needed. The FOG control plan,if needed,must meet all the requirements of the Order. Is Section VIII—System Evaluation and Capacity Assurance Plan:Each sewer agency shall prepare and implement a Capital Improvement Plan(CIP) that will provide adequate hydraulic capacity for the sewer collection system required by the Order. ■ Section IX—Monitoring,Measurement,and Program Modifications:Each sewer agency shall maintain relevant information to establish and prioritize SSMP activities, monitor the implementation and measure the effectiveness of the SSMP activities, and provide assessment of the performance and/or modification of the SSMP activities as required by the Order. ■ Section X—SSMP Program Audits: Each sewer agency shall conduct periodic internal audits appropriate to the size of the sewer system and the number of SSO's. As a minimum,these audits must occur every two years as required by the Order. May 2009 Book Page 17 ES-3 ■ Section XI—Communication Program Each sewer agency shall communicate on a regular basis with the public on the development,implementation,and performance of its SSMP. The communication system shall provide the public the opportunity to provide input to the sewer agency and shall also create a plan of communication with othu local sewer agencies that may be tributary or satellite to the sewer agency's sewer collection system May 2OD9 Book Page 18 OPERATIONS COMMITTEE MeeangDaN To ad.of IN 0e/oaiw os/2o/0, AGENDA REPORT tram rvumUer [rem rvumber 6 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Nick Arhontes, Director of Operations and Maintenance SUBJECT: PURCHASE OF LIQUID CATIONIC POLYMER, SPECIFICATION NO. C-2008-395BD GENERAL MANAGER'S RECOMMENDATION 1. Award a contract to Polydyne, Inc., for the Purchase of Liquid Cationic Polymer, Specification No. C-2008-39513D, for a unit price of$1.975 per active pound delivered for Solution Polymer plus applicable sales tax, and $1.85 per active pound delivered for Mannich Polymer plus applicable sales tax, for an estimated annual amount of$2,282,500 for the period July 1, 2009 through June 30, 2010, with four one-year renewal options; and, 2. Approve a 10% annual unit price contingency. SUMMARY • The cationic polymer contract was competitively bid and 11 polymer suppliers were formally requested to participate in performance trials. Polydyne Inc. was the only responsive and responsible bidder to respond and supply the necessary polymer for testing. Polydyne Inc. met all qualifications. • Staff has reviewed the information Polydyne Inc. provided and has determined the proposed cost is reasonable. • Polydyne is the only supplier of mannich cationic polymer on the west coast and has supplied OCSD cationic polymer for the past five years. The unit costs for the solution and mannich polymer were: Cationic Pol mer Cost Fiscal Year Solution Mannich, Total Contract per active pound peractivepound Cost 08/09 $1.88 $1.682 $1,950,000 07/08 $1.75 $1.53 $1,379,200 O6107 $1.75 $1.53 $1,379200 05106 $1.28 $1.05 $1,288,000 04/05 $1.28 $1.05 $1,538,000 Form No.o =-2 w Iw=a Page 1 Book Page 19 PRIOR COMMITTEE/BOARD ACTIONS None ADDITIONAL INFORMATION • Cationic polymer is used for thickening secondary sludge before digestion and for dewatering biosolids. There are two types of cationic polymer used at the Sanitation District: solution polymer and mannich polymer. • Solution polymer is used at Plant No. 1 and Plant No. 2 to thicken waste activated sludge. Solution polymer limits n-nitrosodimethylamine(NDMA) formation for the Orange County Water District (OCWD) Ground Water Replenishment System but requires a 50% higher dose rate than mannich. The OCSD agreement with OCWD states both parties shall determine effective methods of addressing contaminants such as NDMA and both parties will share cost to eliminate NDMA from the GWRS water. • Mannich polymer is used to dewater biosolids on the belt filter presses at both plants. This recommendation complies with authority levels of the Sanitation District's Delegation of Authority. This item has been budgeted in Divisions 830 and 840, line item 52. Award Date: 4/22/09 Contract Amount: $1.975/act. lb+tax(solution) Annual Contingency: 10% $1.850/act. lb+tax(mannich) Annual Contingency: 10% Form No.Dw102 2 nev O=4= Page 2 Book Page 20 OPERATIONS COMMITTEE Meebng Date To atl.or ofr. 05/06/09 05/20/09 AGENDA REPORT Iem Nu Iem Numbe Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Nick Arhontes, Director of Operations and Maintenance SUBJECT: REGIONAL ODOR AND CORROSION CONTROL SERVICES, SPECIFICATION NO. C-2009405BD GENERAL MANAGER'S RECOMMENDATION 1. Award a contract to U.S. Peroxide, LLC, for Regional Odor and Corrosion Control Services, Specification No. C-200940513D, at the unit prices of$1.78/gallon delivered plus tax for Ferrous Chloride; $1.72/gallon delivered plus tax for Hydrogen Peroxide (27%), indexed to the natural gas previous quarter average NYMEX Henry-Hub gas base price of$9.00 per MMBtu, and an escalation index factor of an additional $0.025/gallon for every increase of$1.00 above the indexed cost; and, $2.19/gallon delivered plus tax for Bioxide, for an estimated annual amount of$3,300,000, for the period July 1, 2009 through June 30, 2010, and four one-year renewal options; and, 2. Award a contract to Hill Brothers Chemical Company for Regional Odor and Corrosion Control Services, Specification No. C-2009-405BD, for an initial delivered unit price of$1.736/gallon plus tax for Magnesium Hydroxide, indexed to the natural gas previous month's daily average NYMEX Henry-Hub gas base price of$13.25 per MMBtu, and an escalation index factor of an additional $0.06 per gallon for every increase of$1.00 above the indexed cost, for an estimated annual amount of$2,500,000 for the period July 1, 2009 through June 30, 2010, and four one-year renewal options; and, 3. Approve a 10% annual unit price contingency. SUMMARY • Contracts provide for continuous treatment services for corrosion and odor control within the regional trunk system and major tributary sewers that feed those systems using a variety of staff-recommended chemical applications. These activities are easily outsourced to turnkey service providers. Staff retains a high degree of oversight for these providers with daily interaction at OCSD facilities. • The contractor(s) provide(s) leased equipment and on-going labor for services such as maintenance, remote monitoring of the chemical and feed rates, optimization, and field sampling. Book Page 21 • O&M staff continually evaluates the most cost effective site-specific treatment approach and anticipates conducting future trials for odor control based on changing regulations such as more stringent environmental rules, costs and conditions. Staff recognizes that corrosion and odor control technologies are constantly being developed and improved upon by the private sector. Additional technologies may provide a benefit to the program by increasing the efficiency of the use of proposed products, provide improved inventory control by the supplier and allow for increased reliability and effectiveness of the corrosion and odor control program. • Treatment in the regional trunks provides a secondary benefit of reducing hydrogen sulfide and odors entering the treatment plants. Newly designed capital projects at the treatment plants have been designed based on the assumption of continuous chemical treatment for odor control in the regional trunks thus reducing the size and scope of treatment needed at the plants. • A Request for Proposal (RFP) process was used. U.S. Peroxide LLC and Hill Brothers were the only proposers to respond. A third firm declined to submit a proposal. PRIOR COMMITTEE/BOARD ACTIONS None ADDITIONAL INFORMATION The selection of the contractors was conducted in accordance with the Orange County Sanitation District's (Sanitation District) adopted policies and procedures and in collaboration with the Finance Department's Purchasing/Contracts Division. Staff Evaluation of Proposals: The two proposals were evaluated in the following four categories: Cost to OCSD, business plan, corporate experience and capacity and key personnel, and customer evaluations of contractor's past performance. This recommendation complies with authority levels of the Sanitation District's Delegation of Authority. This item has been budgeted in O&M Department's Divisions 420, line items 55, 58, 60, and 60.1. Award Date: 5/20/09 Contract Amount: $1.78/gal. +tax(FeCl2) Annual Contingency: (10%) $1.72/gal. +tax(27% H202) $2.19/gal. +tax(Ca(NO3)2) Award Date: 5/20109 Contract Amount: $1.736/gal. +tax(Mg(OH)z) Annual Contingency: (10%) Book Page 22 OPERATIONS COMMITTEE MeenngDate Tned.oroo-. 05/06/09 09/2o/09 AGENDA REPORT Item Number Item NUMbe s Orange County SanlGtlon District FROM: James D. Ruth, General Manager Originator: Nick Arhontes, Director of Operations & Maintenance SUBJECT: PLANT NO. 2 OXYGEN GENERATION FACILITIES GENERAL MANAGER'S RECOMMENDATION Approve Amendment No. 4 to the Agreement for Private Operation and Maintenance of Oxygen Generation System at Plant No. 2 with Air Products and Chemicals, Inc., (P.O. 43063-OB), extending the contract for a two-year period beginning February 2, 2010 to February 1, 2012, for an annual amount of$321,766.80 adjusted annually based on the Consumer Price Index for the Los Angeles/Orange County/Riverside area. SUMMARY: • The original, fifteen-year term turnkey contract with Air Products for operating and maintaining the District's cryogenic oxygen production facility was established in 1989. The facility was built in 1982, and operated and maintained by O&M staff until 1989. In 2004, a provision in the original contract to extend the contract term for additional five-years until February 2010 was exercised. • Under the existing contract, Air Products is responsible for providing a continuous supply of oxygen 365 days per year, 24 hours per day. Except for acts of nature or sabotage, if there is a production problem Air Products is required to purchase and deliver by truck the oxygen at their own expense. As part of the Contract extension, Air Products has agreed to continue providing this level of service. Staff recommends approval. Fmm No.owto22 Rwieee O=M Page 1 Book Page 23 PRIOR COMMITTEE/BOARD ACTIONS 1. June 2004—Approve Amendment No. 3 to extend the contract with Air Products for a five-year period beginning February 2, 2005. 2. June 1997 —Approve Amendment No. 2 to the Agreement for Private Operation and Maintenance of Oxygen Generation System at Plant No. 2. This amendment reduced the operating expenses by $215,000 annually. 3. August 1989, Board Resolution No. 89-108. This Board action approved the original contract. ADDITIONAL INFORMATION • Due to the influent flows being diverted to Plant 1 through the Steve Anderson lift station to meet the Orange County Water District's (OCWD) Groundwater Replenishment System (GWRS) Agreement's water production demands and with the new Plant 2 Trickling Filters coming on-line in 2012, the future demand for oxygen for secondary treatment at Plant 2 is expected to decrease. • The current plan is to use the existing Plant 2 oxygen production units until 2012, after which we would use new oxygen production units to be installed as part of the Capital Project, SP-129, Oxygen Plant Rehabilitation at Plant No. 2. This item has been budgeted in O&M Department's Division 840, Plant 2 Operations. Farm No.W 10 2 �Iw=11 Page 2 Book Page 24 OPERATIONS COMMITTEE Mee0n9Doe TOBd.ufDtr. 05/06/09 05/2o/09 AGENDA REPORT rem rvumte uem rvumbe 9 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Jim Herberg, Director of Engineering Project Manager: Martin Dix SUBJECT: REPLACEMENT OF THE ROCKY POINT PUMP STATION, CONTRACT NO. 5-50 GENERAL MANAGER'S RECOMMENDATION Authorize staff to enter into negotiations with Malcolm Pimie, Inc. for construction support services for Replacement of the Rocky Point Pump Station, Contract No. 5-50. SUMMARY • The purpose of this project is to replace the existing 70-yearold Rocky Point Pump Station with a new pump station that meets national and state codes, utilizing the current Orange County Sanitation District (Sanitation District) Design Guidelines. The project will include a new pump station and all appurtenances located on property acquired from the International Bay Clubs, Inc. by the Sanitation District. • Malcolm Pirnie, Inc. satisfactorily prepared the design for Contract No. 5-50 and is uniquely qualified to provide support services during construction, commissioning, and closeout phases of this project. Staff is requesting permission to negotiate with Malcolm Pirnie, Inc. for construction support services. PRIOR COMMITTEEIBOARD ACTIONS September 2008 -Approved a contingency increase of$272,357 (11%) to the Professional Design Services Agreement with Malcolm Pirnie, Inc., for Replacement of Rocky Point Pump Station, Contract No. 5-50, for a total contingency of$470,435 (19%). May 2006 -Approved a Professional Services Agreement with Malcolm Pirnie, Inc. providing for engineering services for Replacement of Rocky Point Pump Station, Contract No. 5-50, for an amount not to exceed $2,475,973, and establish an 8% ($198,078) design contingency. Page 1 Book Page 25 ADDITIONAL INFORMATION This recommendation complies with authority levels of the Sanitation District's Delegation of Authority. This item has been budgeted. (Line item: Section 8, Page 26), Award Date: Contract Amount: Contingency: JH:MD:eh RVAglobaMitenda Draft Reports\0perallons%5-50 AR permission to negotiate with MPI for PCSA 05.05.09.dmx Page 2 Book Page 26 OPERATIONS COMMITTEE Mee.1 Date TOBd.drDir. oi 610 9 os1zo�o9 AGENDA REPORT Item Number Iem Numbe to Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Jim Herberg, Director of Engineering Project Manager: Martin Dix _ SUBJECT: BAYSIDE DRIVE IMPROVEMENT, CONTRACT NO. 5-61 GENERAL MANAGER'S RECOMMENDATION Authorize staff to enter into negotiations with Dudek, Inc. for construction support services for Bayside Drive Improvement, Contract No. 5-61. SUMMARY • This project will rehabilitate a portion of the Bayside Drive Sewer. The rehabilitation consists of installing a structural cured in place lining and relining the existing manholes, as necessary. The construction documents for the pipeline and manhole rehabilitation are nearly complete. • Dudek, Inc. satisfactorily prepared the design for Contract No. 5-61 and is uniquely qualified to provide support services during the bidding, construction, commissioning, and closeout phases of this project. Staff is requesting permission to negotiate with Dudek, Inc. for construction support services. PRIOR COMMITTEE/BOARD ACTIONS October 2007 -Approved a Professional Services Agreement with Dudek, Inc. providing engineering services for Bayside Drive Improvement, Contract No. 5-61, for an amount not to exceed $349,561; and approve a 10% contingency ($34,956). ADDITIONAL INFORMATION This recommendation complies with authority levels of the Orange County Sanitation District's Delegation of Authority. This item has been budgeted. (Line item: Section 8, Page 29). Award Date: Contract Amount: $ Contingency: JH:MD:eh KknigloWNAgenda Dmfi Repods\Opemtionsl l AR permission to negotiate with Dud"for PCSA W W W.doex Page 1 Book Page 27 OPERATIONS COMMITTEE Meedng Date Toad.of M. 05/D6/09 05/20/09 AGENDA REPORT Item Number Iem Numbe Nu Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Jim Herberg, Director of Engineering Project Manager: Derek E. Davis SUBJECT: P1 MISCELLANEOUS BUILDINGS OFFICE IMPROVEMENTS, PROJECT NO. FE07-08 GENERAL MANAGER'S RECOMMENDATION Receive and file the ADA Compliance Feasibility Study for P1 Miscellaneous Buildings Office Improvements, Project No. FE07-08, dated August 2008, prepared by Willdan. SUMMARY • The Orange County Sanitation District (Sanitation District) is modifying several buildings to accommodate the move of the Sanitation District's Information Technology staff into the Administration Building. The project work generally consists of minor carpentry, electrical, and communications improvements. • During the permit review process, the City of Fountain Valley Building Department (CFV) noted the Sanitation District that State of California Code of Regulation Title 24 requirements, including Americans with Disabilities Act (ADA) Requirements, must be included for all buildings in the project. These buildings include the Control Center, Administration Building, Building 6, and the Laboratory Building. • Staff retained Willdan under a Facilities Engineering Task Order to review and prepare a report regarding the ADA requirements and improvements required to meet the Title 24 Standards. • The ADA Compliance Feasibility Study for P1 Miscellaneous Buildings Office Improvements has been completed. The report provides the Sanitation District with an order of magnitude cost estimate and general list of improvements and modifications required to bring the administrative portion of our campus up to the current ADA Standards. The future work will include the addition of wheelchair ramps and walks, detectable warning indicators, and restroom remodels, new doorways, and other improvements. The rough order of magnitude estimate of the construction contract cost for this work is $6,000,000. Page 1 Book Page 28 PRIOR COMMITTEE/BOARD ACTIONS July 2008 -Authorized the General Manager to increase the delegation of authority limit (Section 7.02) to Task Order FE07-00-15-01, issued to Willdan, for Project No. FE07-08, increasing the total cost to an amount not to exceed $150,000 in connection with the PSA supporting Facilities Engineering projects. April 2008 - Rejected all bids for P1 Multiple Locations Office Modifications, Project No. SP-127. June 2007 -Approved 15 firms under a Professional Services Agreement for Facilities Engineering for an amount not to exceed $200,000 annually for each firm. ADDITIONAL INFORMATION • In December 2000, the Sanitation District proposed a new Administration Building (Project No. J-84). The cost estimate for this new facility was $18,500,000 and included the construction of a three-story building to house Information Technology, Human Resources, and the Finance Departments. Due to the budget constraints, the project was cancelled in 2006. • The P1 Multiple Locations Office Modifications, Project No. SP-127, was the second of three procurements for moving Information Technology staff to the Administration Building and involves the installation of supporting electrical and telecommunication facilities. The other procurements were the purchase and installation of the modular furniture systems (Specification No. E-2007-353BD) and installation of a conference room and two offices in the Control Center (FE07-08). Award Date: N/A Contract Amount: N/A Contingency: N/A JDH:DD:ct:gc H WglobaMgenda Draft Repods\OWmhonsTE07-08 ADA REPORT AR To OPS COMM 5-06-09.doc Page 2 Book Page 20 OPERATIONS COMMITTEE Meebw Dzte To Bd.or Dir. 05/06/09 AGENDA REPORT Item Numbs Ian Numbe 12 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Jim Herberg, Director of Engineering Project Manager: Derek E. Davis SUBJECT: P2 EPSA ROOF ACCESS, PROJECT NO. FE07-07 GENERAL MANAGER'S RECOMMENDATION 1. Approve Plans and Specifications for P2 EPSA Roof Access, Project No. FE07-07, on file at the office of the Clerk of the Board; 2. Approve Addendum No. 1 to the plans and specifications; 3. Receive and file bid tabulation and recommendation; 4. Award a contract to DenBoer Engineering & Construction, Inc., for P2 EPSA Roof Access, Project No. FE07-07, for an amount not to exceed $134,000; and, 5. Approve a contingency of$26,800 (20%). SUMMARY • This project will construct a four and one-half-foot wide external roof access stairway to the existing Plant No. 2 Effluent Pump Station Annex Building. This project will also install a small crane at the roof level. • These improvements will allow for maintenance access to roof-mounted ventilation equipment, and will provide an additional Tsunami shelter location. • Infrastructure Engineering Corporation completed the plans and specifications for P2 EPSA Roof Access, Project No. FE07-07, in January 2009. • Four sealed bids were received on February 10, 2009. After the evaluation of the bids by the Orange County Sanitation District (Sanitation District) Evaluation Team, the lowest bid was determined to be a "Responsible and Responsive" bidder. Summary information on the bid opening for P2 EPSA Roof Access, Project No. FE07-07, is as follows: Project Budget $ 387,815 Contract Budget $ 250,000 Page 1 Book Page 30 Engineer's Construction Estimate $ 250,000 Lowest Responsive, Responsible Bid $ 134,000 High Bid $ 214,000 PRIOR COMMITTEEIBOARD ACTIONS N/A ADDITIONAL INFORMATION The contractor selection was conducted in accordance with the Sanitation District's adopted policies and procedures. Bidder Amount of Bid DenBoer Engineering & Construction, Inc. $ 134,000 SCW Contracting Corporation $ 164,372 Eastern Valley General Engineering, Inc $ 212,559 All Purpose Manufacturing, Inc. $214,000 This Capital Improvement Project complies with authority levels of the Sanitation District's Delegation of Authority. This item has been budgeted (2008-2009 Budget Update, Section 8, Page 86, (FE-132)). Award Date: 05/06109 Contract Amount: $134,000 Contingency: $26,800(20%) JDH:DD:ct:gc Page 2 hook 31 OPERATIONS COMMITTEE Meeting Date Toed.ofDIr. 05/06/09 os/2a/09 AGENDA REPORT Iem13M IemNumbe 13 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Jim Herberg, Director of Engineering Project Manager: Dean Fisher SUBJECT: INTEGRATED PROGRAM MANAGEMENT CONSULTANTS (IPMC) GENERAL MANAGER'S RECOMMENDATION Approve Amendment No. 9 to the Professional Services Agreement with Integrated Program Management Consultants, a joint venture of Parsons Water and Infrastructure, Inc., and CH21V1 Hill, Inc., authorizing: 1. Establish an amount not to exceed $15,877,732 for year eight (Fiscal Year 2009-10) of the ten-year contract; and, 2. Increase the amount of the ten-year contract to a total amount not to exceed $108,954,978. SUMMARY • We are currently in the seventh year of a ten-year contract with Integrated Program Management Consultants (IPMC). It is anticipated that the current Capital Improvement Program (CIP)will require the use of IPMC through Fiscal Year (FY) 2011-12 to coincide with the completion of the secondary treatment expansion projects. • Staff will be working on 71 active projects during FY 2009-10 with estimated CIP expenditures of$250,000,000. • A detailed planning effort, along with resource forecasting, has identified the need for 62 IPMC staff to augment the Orange County Sanitation District (Sanitation District) staff to complete FY 2009-10 work. This total is eight less staff than the FY 2008-09 authorization of 70 staff. Most of the identified staff are currently working on Sanitation District projects. New hires and/or replacement staff will be phased in over the fiscal year as required. IPMC will augment Sanitation District staff in Division 740 (Planning), Division 750 (Project Management), Division 760 (Engineering and Construction), and Division 770 (Facilities Engineering). The functions these people will perform are described in more detail below, along with the recommended budget for FY 2009-10. • The benefits provided by IPMC include the rapid mobilization of highly skilled/technical staff, flexibility to change the mix of staff positions on an immediate and as-needed basis, the ability to quickly reduce staff as workloads decrease, Fom,No.DW-102.2 flwIW OL W Page 1 Book Page 32 project controls expertise, and many years of experience working on similar programs throughout the United States and the world. Staff believes that using a Program Management Consultant approach is a practical, cost-effective, and efficient way to augment Sanitation District staff to deliver the CIP during the next three years of peak CIP work. The Sanitation District is also pleased with the professionalism, expertise, and overall level of service that we have received from IPMC to date. PRIOR COMMITTEE/BOARD ACTIONS May 2008 -Approved Amendment No. 8 to the Professional Services Agreement with Integrated Program Management Consultants for $16,987,271, increasing the total amount not to exceed $93,077,246. May 2007 -Approved Amendment No. 7 to the Professional Services Agreement with Integrated Program Management Consultants for $15,997,936, increasing the total amount not to exceed $76,089,975, and extending the PDSA for an additional five-year period through FY 2011-12. May 2006 -Approved Amendment No. 6 to the Professional Services Agreement with Integrated Program Management Consultants for $14,999,656, increasing the total amount not to exceed $60,092,039. June 2005 -Approved Amendment No. 5 to the Professional Services Agreement with Integrated Program Management Consultants for$15,585,558, increasing the total amount not to exceed $45,092,383. June 2004 -Approved Amendment No. 4 to the Professional Services Agreement with Integrated Program Management Consultants for $12,836,801, increasing the total amount not to exceed $29,506,825. June 2003 -Approved Amendment No. 3 to the Professional Services Agreement with Integrated Program Management Consultants for $150,000, and an additional $12,484,750 for year two of the contract, FY 2003-04, increasing the total amount not to exceed $16,670,024. June 2003 -Approved Amendment No. 2 to the Professional Services Agreement with Integrated Program Management Consultants for $50,000, increasing the total amount not to exceed $4,035,274. June 2003 -Approved Amendment No. 1 to the Professional Services Agreement with Integrated Program Management Consultants for $50,000, increasing the total amount not to exceed $3,985,274. August 2002 -Approved Professional Services Agreement with Integrated Program Management Consultants for an amount not to exceed $3,935,274. Forth No.DMI02-2 Fev'WOMIN7 Page 2 Book Page 33 ADDITIONAL INFORMATION Based on the current schedule and project workload, staff has estimated the level of effort that will be required from IPMC through FY 2011-2012. It is currently anticipated that no IPMC Staff will be required after FY 2011-2012; however, we will continually estimate the need for staff, both permanent and temporary, to support the CIP. The Sanitation District is continually evaluating whether to hire permanent staff and reduce the number of IPMC staff. For the anticipated ten-year duration of the IPMC contract, the overall staff cost associated with the CIP is approximately $316 million (currently estimated at$190 million for Sanitation District staff, and $126 million for IPMC staff). During this period of time, the Sanitation District will be expending approximately$2.1 billion for engineering, design, and construction of capital facilities. The $126 million planned to be expended for IPMC support equates to 6.0% of the total CIP expenditures. The average hourly billing rate for IPMC staff during FY 2008-09 was approximately $127/hr. IPMC billing rates includes salaries, benefits, fixed costs which are sometimes referred to as overhead (Buildings, Administration, Utilities, Insurance, etc.), and a 5% profit. The "overhead" rate which is applied to an employee's raw salary is approximately 145% for IPMC. As a comparison, the engineering consultants who conduct studies and develop designs for the Sanitation District typically have an overhead rate range of about 190 to 200%. The IPMC overhead rate is less than typical consultant contracts because the Sanitation District is providing office space and equipment for IPMC field staff. The costs for IPMC will be charged to the individual CIP projects. Funding for IPMC costs are included in individual project budgets. Each fiscal year, as projects are planned, scheduled, budgeted, and resource needs identified, a projected cost will be presented to the Operations Committee for approval. Semi-annual updates for the entire program will also be provided. Planning (Division 740) IPMC is providing personnel to augment the Sanitation District's Planning staff. General assignments and duties are as follows: Two Electrical and Instrumentation & Control (I&C) Engineers (Woods, Lai) and one Civil Designer/Computer Assisted Design & Drafting (CADD) Technician (Beltran) to provide technical support for facility records and database management. Project Management Office (Division 750): The PMO is home to the project management and project controls staff. Project Management Staff: In FY 2009-10, the PMO will be managing 71 active projects with a total budget of $2,112,000,000. The project budget ranges in size from $1,000,000 to over Form No.�1. ganxC=107 Page 3 Book Page 34 $200,000,000. The Sanitation District has completed a staffing analysis, and believes a workload of three to six projects per Project Manager (PM) (based on size, and complexity) is appropriate. IPMC will provide personnel to augment the Sanitation District's Project Management Personnel in the PMO. The positions are described below: • One Program Manager (Rapagne) to provide general management and supervision of all IPMC staff. The Program Manager will work with the Director of Engineering and Engineering Managers to ensure compliance with contracts, policies, and procedures. The Program Manager will provide technical oversight and direction in all aspects of the program and help ensure successful delivery of the CIP. The Program Manager manages technical work executed by the home office staff. • Four Project Managers(Acevedo, MacDonald, MacLeod, Schock) to supplement Sanitation District PMs. The PMs provide day-today management and technical knowledge to deliver the assigned projects. • One Business Manager (Billhardt) to provide assistance in the areas of time keeping, resources, accounting, and contracts management. • One Administrative Assistant (Noya)to provide clerical and general administrative support, e.g., preparing agenda reports, general correspondence. Project Controls Staff: Currently there are 209 projects being tracked by the Project Controls Group. Of these, 71 are active engineering projects, 29 are scheduled for the future, and 109 are cancelled or completed. These projects require a variety of monthly updates including cost reporting, development of performance measures, reports, and other presentation materials. Each staff function is described below: • One Project Controls Manager/Project Scheduler (Michael) to provide scheduling and cost reporting support, QA/QC, technical oversight, and direction to controls staff. • One Project Scheduler(GrosJean) to prepare project cost, and schedule updates and milestone tracking in support of PMO Project Managers. Other duties performed by the schedulers include assisting in the CIP budgeting process, cash flow updates, preparation and updating of resource and workload planning information, providing input to the preparation of the Engineering CIP Semi-Annual Report, and provide training and support to Sanitation District staff on the use of the various computer software tools including P5, Access, and Business Object. • One Project Controls Analyst (Reichenbach) assigned to assist in time reporting, charge numbers, and general quality assurance of data used in the system. Other duties include preparation of the semi-annual reports, and maintaining portions of the automated weekly timesheet in PCS to support project resource tracking. She will also serve as part-time scheduler on a number of Engineering CIP projects. Fom No.m-coax Ko-IW.1M7 Page 4 Book Page 35 • Five Construction Cost Estimators (Brown, Collett, Davison, Villanueva, Zimmerman)assigned to prepare estimates for change orders, help negotiate changes during construction, review design consultant estimates, and provide cost estimate input during the annual CIP validation process. • One Construction Scheduling Lead (Alexander) to provide oversight on all matters related to the construction field scheduling. Other duties include review and guidance in the preparation of monthly construction schedule analysis reports prepared by IPMC and the Sanitation District field schedule personnel. Will also participate in the preparation of time impact analysis and review of contractor submitted claims. • Five Construction Schedulers (Bustillos, Dedhia, Rodriguez, Sugasawara, one new hire) assigned to ensure that contractors provide quality baseline schedules and keep them current (a vital element in our claims avoidance program). Field Schedulers review the contractor's initial schedule submittal and the schedule of values as well as monthly updates of contractor progress. Progress claimed by the contractors must be reviewed against the schedule plan each month for payment, and any request for additional time through change orders must be analyzed. • One Document Control Lead (Cazares) to provide document control expertise and support for all aspects of CIP-related document management. Engineering & Construction Management (Division 760) IPMC is providing personnel to augment the Sanitation District's Engineering and Construction Management (E&CM) staff. E&CM is responsible for providing all the technical resources to the Project Managers. General assignments and duties are as follows: • Ten Resident Engineers/Construction Managers (Barth, Bomkamp, Bryan, Collins, Fuller, Rein, Tovar, Waite, Vohra, one new hire) to support construction management of CIP projects within the boundaries of the Sanitation District's two operating treatment facilities and outside of the plant boundaries, i.e., for pipeline and pump station contracts.. They will utilize existing Sanitation District CM policies and procedures to represent the Sanitation District, coordinate construction activities, manage the construction contract, and document contractor compliance with the contract requirements. • Two Electrical and Instrumentation & Control (I&C) Engineers (Etemadi, Olson). These Engineers are assigned to the CIP projects to provide specialized technical support to the project teams during both the design and construction phases. They ensure consultant and construction contractor compliance with Sanitation District requirements, guidelines, and polices. • Two Project Engineers (Aghanian, Takahashi). Project Engineers serve as the technical leads within the Sanitation District's project teams, and assist the PMs with verification of the project elements, coordinating project requirements with the O&M Department, developing the design consultant SOW, selecting the design Form No.p 1W-2 •e.iWOWX7 Page 5 Book Page 36 consultant, and ensuring the construction documents are prepared using the Sanitation District standards. During the construction phase, they resolve design questions and issues for the Resident Engineers. • Four Civil/Mechanical Inspectors (Chemotti, Gilbert, Hartmann, Kwiecien), seven Electrical, Instrumentation & Control Inspectors (Beck, Lovell, Makela, Whitney, three new hires), to support Quality Assurance of CIP projects within the two Treatment Facilities. They will utilize existing Sanitation District QA policies and procedures to represent the Sanitation District, coordinate construction and O&M activities, monitor construction site safety, and document contractor compliance with the contract requirements. • Two Civil Inspectors (Martin, Sankar) to support Quality Assurance of pipeline and pump station projects. They will utilize existing Sanitation District QA policies and procedures to represent the Sanitation District, coordinate construction and traffic control activities, monitor construction site safety, and document contractor compliance with the contract requirements. • One Commissioning Specialist (Stilwill) to support commissioning and start-up of CIP projects within the two Treatment Facilities. • Seven Administrative Assistants (Chamberlain, Corona, Hays, Inman, Marquez, Moore, Yousef) to provide a variety of administrative support including Submittals/Document Clerks (Corona, Hays, Yousef) for processing and tracking of construction contractor submittals; Project Administrative Assistant (Moore) for processing project correspondence and filing; general administrative support (Chamberlain, Inman, Marquez) for processing project correspondence, Agenda Reports, and preparing CIP policy and procedures manual updates. Facilities Engineering (Division 770) IPMC is providing personnel to augment the Sanitation District's Facilities Engineering staff. Facilities Engineering is responsible for providing Project Managers and technical resources to implement miscellaneous small capital improvement projects to enhance safety, reliability and efficiency of facility operations. General assignments and duties are as follows: • One Project Manager (Davis) to provide day-to-day management and technical knowledge to deliver the projects. • One Civil Designer/Computer Assisted Design & Drafting (CADD) Technician (Tran) to provide technical support and assistance to PMs for project implementation. Home Office Support: "Home Office Support" is supplementary services from the offices of the Joint Venture Parties, Parsons and CH2M HILL, made readily available to support the needs of the Engineering Department. Technical study (task orders) work is based on providing engineering and other technical support for specific assignments using a pre-agreed Fmm No 102-2 as.isee o31n1m1 Page 6 Book Page 37 upon scope of work, fee, and schedule. These tasks will be as authorized by the Director of Engineering when required, and may include assistance in the following areas: • General Administration and Home Office Technical Support—general administration support includes accounting, contract administration, invoices, reproduction, and safety reports and reviews. Routine home office technical support includes urgent technical support (usually task less than 40 hours) in all areas of waste water engineering, construction, and project controls. • CEQA and NEPA Assistance—support to the Planning Division on a variety of treatment, collections and pump station projects in preparing environmental documentation. • CIP Related O&M Studies— Support O&M with studies on various issues related to the CIP. • Community Outreach Support—assist the Communications Department as needed on all collections projects in preparing outreach plans, conducting meetings, crisis management plans, etc. • IT and PCS systems programming support, including support for troubleshooting and system upgrades. • General technical support—throughout the year issues come up which need technical support and/or immediate attention. For example, in FY 2008-2009, IPMC provided support related to specification review, CADD drafting, software configuration and technical support, GIS, cost estimating, master plan preparation and CEQA Award Date: 05/20109 Contract Amount: $15,877,732' Contingency: NIA `For FY 2009-2010 JH:DF:eh:gc H:1n1g1obePAgenda Draft Repo"MOperallonsMPMC AmendmeM 9 AR 050509.d= Foml No.O iw2 Rwb OMW Page 7 Book Page 38 OPERATIONS COMMITTEE MeetingDae rosa.oroir. as/os/o9 os/za/oe AGENDA REPORTItem Number I Item Number 4 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Jim Herberg, Director of Engineering Project Manager: Derek E. Davis SUBJECT: P2 PLANT WATER PS DISCHARGE PIPING, PROJECT NO, FE07-17 GENERAL MANAGER'S RECOMMENDATION 1. Approve Plans and Specifications for the P2 Plant Water PS Discharge Piping, Project No. FE07-17, on file at the office of the Clerk of the Board; 2. Approve Addendum Nos. 1 and 2 to the plans and specifications; 3. Receive and file bid tabulation and recommendation; 4. Receive and file letter dated February 5, 2009, from Atlas Allied, Inc. requesting relief of their bid in the amount of$323,900 due to a mathematical error; 5. Award a contract to Ken Thompson, Inc. for P2 Plant Water PS Discharge Piping, Project No. FE07-17, for an amount not to exceed $460,000; and, 6. Approve a contingency of$92,000 (20%). SUMMARY • This project will replace corroded pipes and valves at the Plant No. 2 Plant Water Pump Station, and miscellaneous small diameter drains and plant water service piping. • The plans and specifications for P2 Plant Water PS Discharge Piping, Project No. FE07-17, were completed in December 2008. • Three sealed bids were received on February 3, 2009. After the evaluation of the bids by the Orange County Sanitation District (Sanitation District) Evaluation Team, the lowest bid submitted by Atlas Allied, Inc. was determined to be a "Responsible and Responsive" bidder. Page 1 Bonk Page 39 • Subsequent to this determination, Atlas Allied, Inc. requested to be relieved of its bid and its bid bond released. Pursuant to Section 5103 of the Public Contract Code, Atlas Allied stated that a mistake was made when entering labor costs for welding during the preparation of the bid, and that this mistake made the bid materially different than it was intended to be. The Sanitation District met internally to review the request and determined that Atlas Allied's request had met the requirements prescribed in the Public Contract Code, and that the Sanitation District would grant Atlas Allied's request to be relieved of its bid and to have its bid bond released. • Staff recommends awarding the contract to the second lowest, responsible, and responsive bidder, Ken Thompson, Inc., for$460,000. • The period for written protest began on March 17, 2009, and ended March 23, 2009. No written protests were submitted during or after the protest period. • The construction contract budget of$400,000 for the construction contract has been increased in order to award the project to the second lowest, responsible, and responsive bidder. • The project contingency is higher than most projects to provide for risks associated with this project. These risks include items such as pipes, fittings, and valves to be supplied by the previous contractor; the potential need for additional controls or modifications for the temporary by-pass pump system, and the potential conflict with the future 84-inch above ground by-pass pipeline for the P2-66 project. • Summary information on the bid opening for P2 Plant Water PS Discharge Piping, Project No. FE07-17, is as follows: Project Budget $ 600,535 Contract Budget $ 460,000 Engineer's Construction Estimate $ 360,000 Lowest Responsive, Responsible Bid $ 460,000 High Bid $ 627,000 PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION The contractor selection was conducted in accordance with the Sanitation District's adopted policies and procedures. Page 2 Book Page 40 Bidder Amount of Bid Atlas Allied, Inc. $ 323,900 Ken Thompson, Inc. $ 460,000 Orion Construction Corporation $ 627,000 This Capital Improvement Project complies with authority levels of the Sanitation District's Delegation of Authority. This item has been budgeted (2008-2009 Budget Update, Section 8, Page 86, (FE-P2)). Award Date: 05120109 Contract Amount: $460,000 Contingency: $92,000(20%) JDH:DD:ct:gc H:tntglobaMgenda Draft ReponskooeratiwsTE07-17 AR To OPS COMM 5-06-09.doc Page 3 Book Paee 41 ORANGE COUNTY SANITATION DISTRICT (714) 962-2411 www.ocsd.com Mailing Address: P.O. Box 8127 Fountain Valley, California 92728-8127 Street Address: 10844 Ellis Avenue Fountain Valley, California 92708-7018