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HomeMy WebLinkAbout07-07-2010 Operations Committee Agenda Packet AGENDA REGULAR MEETING OF THE OPERATIONS COMMITTEE Engineering, Operations & Maintenance, and Technical Services ORANGE COUNTY SANITATION DISTRICT July 7, 2010 — 5:00 P.M. ADMINISTRATIVE OFFICE 10844 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 CONSENT CALENDAR 1. Approve the minutes of the June 2, 2010 Operations Committee meeting. 2. a) Approve a Professional Design Services Agreement with Dudek for Chemical Scrubber Conversions and Piping System Improvements, Project No. P2-106, providing for engineering design services for an amount not to exceed $165,559; and, b) Approve a contingency of $16,555 (10%). Operations Committee July 7, 2010 Page 2 3. Recommend to the Board of Directors to: a) Approve Plans and Specifications for the P1 P2 Bushard Trunk Fiber Optic Link, Project No. FE07-10, 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) Reject the low bids from SECC Corporation, as "Non-Responsive" due to its failure to provide Industrial Safety Records, failure to provide a signed Security Bond, and for omitting a price for Bid Item No. 6; e) Reject the low bids from Steiny and Company, Inc., as "Non-Responsive" due to its failure to acknowledge receipt of Addendum No. 1, failure to provide the list of current and completed projects, and failure to provide Industrial Safety Records; f) Award a Construction Contract to L.A. Electricom, Inc., for P1 P2 Bushard Trunk Fiber Optic Link, Project No. FE07-10, for an amount not to exceed $129,600; and, g) Approve a contingency of$25,800 (20%). 4. Recommend to the Board of Directors to approve an increase in contingency for the Professional Consultant Services Agreement with Butier Engineering for construction management services for Newport Trunk Sewer and Force Mains, Bitter Point Pump Station to Coast Trunk Sewer, Contract No. 5-58, for an additional $72,437 (4%) contingency, increasing the total contingency to $181,093 (10%). 5. Recommend to the Board of Directors to a) Approve a Professional Design Services Agreement with Brown and Caldwell for Santa Ana Trunk Sewer Rehabilitation, Project No. 1-17, providing for engineering design services for an amount not to exceed $801,850; and, b) Approve a contingency of$80,185 (10%). 6. Recommend to the Board of Directors to: a) Approve Change Order No. 3 to the Purchase Order No. 103610-OB, issued to U.S. Peroxide LLC, for Regional Odor and Corrosion Control Services, Specification No. C-2009-405BD for the period July 1, 2010 through June 30, 2011, to include all remaining renewal options, authorizing the addition of higher strength 65% weight Calcium Nitrate product for a delivered price of $2.470 per gallon plus tax; the addition of higher strength 44% weight Ferric Chloride product for a delivered price of$2.340 per gallon plus tax; the addition of higher strength 36% weight for Ferrous Chloride product at the unit price of$2.030 per gallon plus tax; an increase per gallon for 60% weight Calcium Nitrate, for a total unit price of Operations Committee July 7, 2010 Page 3 $2.280 per gallon, plus tax; and additional program services including project related system and dose site development, mobilization and demobilization charges, and odor control rental services. The additional services shall not exceed the total annual amount of $150,000; and, b) Approve Change Order No. 2 to the Purchase Order No. 103611-OB, issued to Hill Brothers Chemical Company, for Regional Odor and Corrosion Control Services, Specification No. C-2009-405BD for the period July 1, 2010 through June 30, 2011 , to include all remaining renewal options, authorizing an increase for Magnesium Hydroxide for a total unit price of $1 .761 per gallon, plus tax, and additional program services including project related system and dose site development, mobilization and demobilization charges, and odor control rental services. The additional services shall not exceed the total annual amount of $150,000 for Hill Brothers Chemical Company; and, c) Approve a 15% annual unit prices and program price contingencies. NON-CONSENT CALENDAR 7. Recommend to the Board of Directors to: a Adopt Resolution No. OCSD 10-XX, A Resolution of the Board of Directors of the Orange County Sanitation District, Making Findings Pursuant to Public Contract Code Section 3400 in Support of the Sole Source Specification of Thickening and Dewatering Centrifuges (Sludge Thickening, Dewatering and Odor Control at Plant 1, Job No. P1-101). 8. Recommend to the Board of Directors to authorize staff to negotiate Amendment No. 2 to the Professional Design Services Agreement with Malcolm Pirnie, Inc. for additional design services for the Newport Force Main Condition Assessment, Project No. 5-60. 9. Recommend to the Board of Directors to authorize an agreement with OpenCEL, LLC, for installation of equipment and onsite proprietary testing of Plant No. 1 waste activated sludge treatment (Project No. SP-125-6), for a total amount not to exceed $1,700,000 upon successful installation and testing as follows: a) Authorize a turn-key installation of OpenCEL equipment and all necessary auxiliary equipment and utilities for an amount not to exceed $300,000; b) Approve a sole source lease purchase of OpenCEL equipment for onsite proprietary testing for a maximum of 36 months at a cost of $32,000 per month, and a down payment of $250,000; and, c) Authorize purchase of the OpenCEL equipment for a total amount not to exceed $1,400,000 upon successful testing. Operations Committee July 7, 2010 Page 4 INFORMATIONAL ITEMS No items to consider DEPARTMENT HEAD REPORTS • SARI Line Erosion • EnerTech Biosolids • Coatings Program CLOSED SESSION ............................................................................................................................................................................................................................................................................................................................. 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) 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 these 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, September 1, 2010, at 5:00 p.m. Operations Committee July 7, 2010 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 or 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 Tom Beamish (562) 905-9700 LaHabraTom@vahoo.com Committee Secretary: Lilia Kovac (714) 593-7124 Ikovac(cD.ocsd.com General Manager Jim Ruth (714) 593-7110 Iruth(c)ocsd.com Assistant General Manager Bob Ghirelli (714) 593-7400 rghirelli(cDocsd.com Director of Technical Services Ed Torres (714) 593-7080 etorres(cDocsd.com Director of Engineering Jim Herberg (714) 593-7300 Iherberg(a-)ocsd.com Director of Operations & Mntnc. Nick Arhontes (714) 593-7210 narhontes(@ocsd.com .............................................................................................................................................................................................................................................................................................................................: OPERATIONS COMMITTEE Meeting Date To 07/07/10 07/27/28/10/10 AGENDA REPORT Item Number Item Number 2 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: James D. Herberg CIP Project Manager: Christopher MacLeod GENERAL MANAGER'S RECOMMENDATION 1. Approve a Professional Design Services Agreement with Dudek for Chemical Scrubber Conversions and Piping System Improvements, Project No. P2-106, providing for engineering design services for an amount not to exceed $165,559; and, 2. Approve a contingency of $16,555 (10%). SUMMARY This project will convert existing chemical scrubbers to biological trickling filters, install plant water booster pumps in the dewatering building to increase belt press water pressure, and rehabilitate the boiler feed water piping system to maintain system integrity at Plant No. 2. In October 2009, the Board of Directors authorized staff to negotiate a Professional Design Services Agreement (PDSA) with Dudek to complete the design work and to provide support services during construction. Staff recommends awarding a PDSA to Dudek for a total amount not to exceed $165,559. PRIOR COMMITTEE/BOARD ACTIONS October 2009 - Authorized General Manager to negotiate with Dudek for design and construction support services for Project No. P2-106. March 2003 — Biotrickling Filter for Odor Control Demonstration Project: Phase 11 Final Report. This report formed the basis for Project No. FE03-34, subsequently chartered on July 22, 2004. ADDITIONAL INFORMATION None. Form No.DW-102 Revised: 01/11/10 Page 1 CEQA A Notice of Exemption was filed on August 24, 2006. Chemical Scrubber Conversions and Piping System Improvements, Project No. P2-106, was determined to be categorically exempt under CEQA Section 15301(b) because the project consists of minor modifications to existing facilities with no increase in treatment capacity. BUDGET/DELEGATION OF AUTHORITY COMPLIANCE This request complies with authority levels of the Orange County Sanitation District's Delegation of Authority. This item has been budgeted and the budget is sufficient for the recommended action. (FY2010-11 Budget P2-106 Line Item). Date of Approval Contract Amount Contingency 07/07/2010 $ 165,559 $ 16,555 (10%) JH:CM:eh:gc http://sharepoint/gm/board/Published Agenda Reports and Minutes/Item 02.P2-106.Dudek PDSA.docx Form No.DW-102 Revised: 01/11/10 Page 2 OPERATIONS COMMITTEE Meeting Date To Bd. of Dir. 07/07/10 07/28/10 AGENDA REPORT Item Number Item Number 3 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Jim Herberg, Director of Engineering Project Manager: Derek E. Davis GENERAL MANAGER'S RECOMMENDATION 1. Approve Plans and Specifications for the P1 P2 Bushard Trunk Fiber Optic Link, Project No. FE07-10, 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. Reject the low bids from SECC Corporation as "non-responsive" due to its failure to provide Industrial Safety Records, failure to provide a signed Security Bond, and for omitting a price for Bid Item No. 6; 5. Reject the low bids from Steiny and Company, Inc. as "non-responsive" due to its failure to acknowledge receipt of Addendum No. 1 , failure to provide the list of current and completed projects, and failure to provide Industrial Safety Records; 6. Award a Construction Contract to L.A. Electricom, Inc. for P1 P2 Bushard Trunk Fiber Optic Link, Project No. FE07-10, for an amount not to exceed $129,600; and, 7. Approve a contingency of $25,800 (20%). SUMMARY The Orange County Sanitation District (Sanitation District) has only one fiber optic communication cable between Plant No. 1 and Plant No. 2. A second or backup fiber optic communication cable is required to reduce the risk of communication failure due to earthquake or man-made accident. This project will install approximately five miles of fiber optic cable from the Bushard Diversion Structure located at Bushard and Ellis in the City of Fountain Valley to the Operations Center at Plant No. 2. This portion of fiber optic cable will complete a loop that starts at Plant No. 1 . The fiber optic cable will be pulled through existing conduit and twenty pull boxes in the public right-of-way. This project also includes traffic control while working within the public right-of-way. Form No.DW-102.2 Revised: 01/11/2010 Page 1 Eight sealed bids were received on May 4, 2010. After evaluation of the bids by the Sanitation District Evaluation Team, the lowest bid, submitted by SECC Corporation, and the second lowest bid, submitted by Steiny and Company, Inc., were both deemed to be "non-responsive" bidders. The Sanitation District Evaluation Team recommends awarding the contract to the third lowest, responsive, and responsible bidder, L.A. Electricom, Inc., for $129,000. The period for written protest began May 13, 2010, and ended May 19, 2010. No written protests were submitted during or after the protest period. Summary information on the bid opening for P1 P2 Bushard Trunk Fiber Optic Link, Project No. FE07-10, is as follows: Project Budget $449,785 Construction Contract Budget (FE07-10) $175,000 Engineer's Construction Estimate $164,000 Lowest, Responsive, Responsible Bid $129,600 High Bid $147,240 PRIOR COMMITTEE/BOARD 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 SECC Corporation $ 76,515 (non-responsive) Steiny and Company, Inc. $ 87,660 (non-responsive) L.A. Electricom, Inc. $129,600 John Griffin Construction, Inc. $135,155 Christopher R. Morales, Inc. $139,989 Henkels & McCoy, Inc. $140,246 TekWorks, Inc. $143,622 Morrow-Meadows Corporation $147,240 CEQA A Notice of Exemption was filed for this project on August 23, 2007. Form No.DW-102.2 Revised: 01/11/2010 Page 2 BUDGET/DELEGATION OF AUTHORITY COMPLIANCE This request complies with authority levels of the Sanitation District's Delegation of Authority. This item has been budgeted. (2009-2010 Budget Update, Line item 98, Page A-11, FE-J.) Date of Approval Contract Amount Contingency July 7, 2010 $129,600 $25,800 (20%) JDH:DD:aln:gc http://sharepoint/gm/board/Published Agenda Reports and Minutes/Item 03.FE07-101A Electricom.docx Form No.DW-102.2 Revised: 01/11/2010 Page 3 OPERATIONS COMMITTEE Meeting Date To Bd. of Dir. 07/07/10 07/28/10 AGENDA REPORT Item Number Item Number 4 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Jim Herberg, Director of Engineering CIP Project Manager: Alberto Acevedo GENERAL MANAGER'S RECOMMENDATION Approve an increase in contingency for the Professional Consultant Services Agreement with Butier Engineering for construction management services for Newport Trunk Sewer and Force Mains, Bitter Point Pump Station to Coast Trunk Sewer, Contract No. 5-58, for an additional $72,437 (4%) contingency, increasing the total contingency to $181,093 (10%). SUMMARY This project will provide a new point of connection from the proposed new Bitter Point Pump Station to convey the wastewater from the Cities of Newport Beach and Costa Mesa into Plant No. 2. The existing force main system has failed, requiring emergency repairs. In addition, the existing system is not suitable for the new operating pressure from the proposed Bitter Point Pump Station. Butier Engineering, Inc. is providing construction management services on this project to support the specialty nature of the construction work. Due to an extension of the project construction schedule for repairs due to ground settlement, and claims support, staff has determined that the contingency budget of 6% is inadequate, and request additional contingency of $72,437 (4%), for a total contingency of $181 ,093 (10%). PRIOR COMMITTEE/BOARD ACTIONS October 2008 - Approved Professional Consultant Services Agreement with Butier Engineering for construction management services for Newport Trunk Sewer and Force Mains, Bitter Point Pump Station to Coast Trunk Sewer, Contract No. 5-58, for an amount not to exceed $1,810,925, and approved a contingency of $108,656 (6%). ADDITIONAL INFORMATION None. Form No.DW-102 Revised:01/11/10 Page 1 CEQA This project was included in the subsequent Environmental Impact Report for the Newport Trunk Sewer and Force Mains Replacement Project, Contract No. 5-58, prepared by ESA Biological Resources, and certified on March 23, 2005. A Notice of Determination was filed on April 28, 2005. BUDGET/DELEGATION OF AUTHORITY COMPLIANCE This request complies with authority levels of the Sanitation District's Delegation of Authority. This item has been budgeted. (FY2010-12 Budget: Project 5-58 Line Item). Date of Approval Contract Amount Continaencv 09/17/2008 $1,810,656 $108,656 (6.0%) 07/28/2010 $ 72,437 (4.0%) $181,093 (10.0%) JH:AA:eh:gc http://sharepoint/gm/board/Agenda Report Form Library/5-58 AR Butier Contingency Increase-070710.docx Form No.DW-102 Revised:01/11/10 Page 2 OPERATIONS COMMITTEE Meeting Date To 07/07/10 07/27/28/10/10 AGENDA REPORT Item Number Item Number 5 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: James D. Herberg CIP Project Manager: Martin Dix GENERAL MANAGER'S RECOMMENDATION 1. Approve a Professional Design Services Agreement with Brown and Caldwell for Santa Ana Trunk Sewer Rehabilitation, Project No. 1-17, providing for engineering design services for an amount not to exceed $801,850; and, 2. Approve a contingency of $80,185 (10%). SUMMARY The proposed Professional Design Services Agreement (PDSA) includes the condition assessment of the existing trunk sewer and manholes. Other elements include preparation of plan and profile drawings, flow monitoring, hydraulic modeling, odor monitoring and mitigation, rehabilitation recommendations, and project delivery analysis. A Request for Proposal was sent to seven firms and seven proposals were received. Based on the overall qualifications and expertise, staff recommends awarding a PDSA to Brown and Caldwell for a total fee not to exceed $801,850. PRIOR COMMITTEE/BOARD ACTIONS None. ADDITIONAL INFORMATION The Santa Ana Trunk Sewer was constructed in 1952 and is located in the cities of Costa Mesa, Santa Ana, and Fountain Valley. The upstream end of the Santa Ana Trunk Sewer begins at the intersection of Alton Avenue and Bristol Street in Santa Ana and the downstream end discharges into the Orange County Sanitation District (Sanitation District) Plant No. 1 in Fountain Valley. The sewer is primarily within the Alton Avenue right-of-way; however, there are segments within Ellis Avenue, Orange County Flood Control (including the Santa Ana River), 405 freeway, railroad right-of-way and Costa Mesa's Business District. The pipe consists of approximately 5,600 linear feet of 42-inch and 11,700 linear feet of 48-inch diameter unlined reinforced concrete pipe. The portion under the 405 freeway consists of 450 linear feet of 60-inch lined reinforced concrete pipe. Form No.DW-102 Revised: 01/11/10 Page 1 The reinforced concrete pipe is in various stages of deterioration. The Santa Ana Trunk Sewer Inspection Report published in January 2002 identified several major defects such as pipeline corrosion, ground water infiltration, exposed aggregate, intrusion of roots and concrete erosion. The crown of the pipeline exhibited the most severe corrosion with infiltration at various locations primarily due to joint separation accompanied by root intrusion and/or mineral like deposits. The 60-inch lined pipeline under the 405 freeway has bubbles or disbanding in the lining and needs thorough inspection. The intent of this project is to identify the sewer's condition and provide the most cost effective rehabilitation. Staff Evaluation of Proposals A panel consisting of four members of the Sanitation District's staff reviewed and ranked each of the proposals in accordance with Resolution No. OCSD 07-04, Section 5.07. The proposals were evaluated in the following six equally weighted categories: project approach and understanding of the scope of work, plan for managing and performing the work, staff qualifications, related experience, team organization and use of sub- consultants, and quality assurance/quality control plan. Staff also conducted interviews with the top three short-listed firms to meet the key team members and further explore the firm's proposal. Brown and Caldwell was the top ranked team. All proposals were accompanied by a sealed fee proposal estimate. The fee proposal estimates were not opened until the proposals were evaluated and a firm was selected, in accordance with Resolution No. OCSD 07-04, Section 5.07. Staff recommends awarding the design contract to Brown and Caldwell. TABLE 1 PROPOSAL EVALUATION Consultant Brown & CDM Dudek AECOM Stantec Lee & Ro Carollo Caldwell Evaluator Reviewer A 90% 70% 80% 80% 83% 70% 63% Reviewer B 80% 85% 77% 78% 77% 79% 70% Reviewer C 89% 83% 82% 77% 73% 73% 75% Reviewer D 92% 87% 85% 84% 83% 79% 84% Overall 88% 81% 81% 80% 79% 75% 73% Score Ranking 1 2 3 4 5 6 7 Proposal $925,637 $654,293 $773,034 $524,612 $921,474 $553,884 $573,943 Fee Negotiated Proposed $801,850 Fee* Form No.DW-102 Revised: 01/11/10 Page 2 *NOTE: The Sanitation District staff met with Brown and Caldwell to clarify the requirements of the scope of work and negotiate the final proposal fee. During this meeting, the proposed fee was reduced by $123,787. CEQA The project is statutorily exempt from the California Environmental Quality Act pursuant to Public Resource Code Section 21080.21, and categorically exempt pursuant to CEQA Guidelines 15282(k) because it consists of actions less than one mile in length within a public street or highway and other public rights-of-way for the installation of a new pipeline and/or the maintenance, repair, restoration, reconditioning, relocation, replacement, removal, and/or demolition of an existing pipeline. The project is also categorically exempt pursuant to CEQA Guidelines Sections 15301 because it consists of the operation, repair, maintenance, permitting and/or minor alteration of existing public structures, facilities, and/or mechanical equipment, involving no expansion of use beyond that currently existing. The recommended action is also categorically exempt pursuant to CEQA Guidelines Sections 15302 because it consists of replacement or reconstruction of existing (below-ground) structures and facilities where the new structure will be located on the same site (within the same right of way) as the structure replaced, and will have substantially the same purpose and capacity as the structure replaced. The project is also within the scope of the Program Environmental Impact Report for the 1999 Strategic Plan, dated October 1999. Pursuant to CEQA Guidelines section 15168(c)(4), Sanitation District will use a written checklist to document its evaluation of the recommended action, and have determined that the recommended action is within the scope of the program EIR. BUDGET/DELEGATION OF AUTHORITY COMPLIANCE This complies with the authority levels in the Sanitation District's Delegation of Authority. The project budget is sufficient for the recommended action. (FY 2010-11 Budget: Project 1-17 Line Item). Date of Approval Contract Amount Contingency 7/28/10 $801,850 $80,185 JH:MD:eh:gc Wntglobal\Agenda Draft Reports\0perations\1-17 AR PDSA Award 070710.docx Form No.DW-102 Revised: 01/11/10 Page 3 OPERATIONS COMMITTEE Meeting Date To Bd.of Dir. 07/07/10 07/28/10 AGENDA REPORT Item Number Item Number 6 Orange County Sanitation District FROM: James D. Ruth, General Manager Nick Arhontes, Director of Operations and Maintenance Originator: Carla Dillon, Engineering Supervisor GENERAL MANAGER'S RECOMMENDATION 1) Approve Change Order No. 3 to the Purchase Order No. 103610-OB, issued to U.S. Peroxide LLC, for Regional Odor and Corrosion Control Services, Specification No. C-2009-405BD for the period July 1, 2010 through June 30, 2011, to include all remaining renewal options, authorizing the addition of higher strength 65% weight calcium nitrate product for a delivered price of$2.470 per gallon plus tax; the addition of higher strength 44% weight ferric chloride product for a delivered price of$2.340 per gallon plus tax; the addition of higher strength 36% weight for ferrous chloride product at the unit price of$2.030 per gallon plus tax; an increase per gallon for 60% weight calcium nitrate, for a total unit price of $2.280 per gallon, plus tax; the increase of$0.178 per gallon for 34% weight ferrous chloride, for a total unit price of$1.958 per gallon, plus tax; and additional program services including project related system and dose site development, mobilization and demobilization charges, and odor control rental services. The additional services shall not exceed the total annual amount of $150,000; and, 2) Approve Change Order No. 2 to the Purchase Order No. 103611-OB, issued to Hill Brothers Chemical Company, for Regional Odor and Corrosion Control Services, Specification No. C-2009-405BD for the period July 1, 2010 through June 30, 2011, to include all remaining renewal options, authorizing an increase for Magnesium Hydroxide for a total unit price of $1.761 per gallon, plus tax, and additional program services including project related system and dose site development, mobilization and demobilization charges, and odor control rental services. The additional services shall not exceed the total annual amount of $150,000 for Hill Brothers Chemical Company; and, 3) Approve a 15% annual unit price and program price contingency. SUMMARY Odor and corrosion control methods are continuously being developed and improved upon. For this reason, O&M staff monitor industry best practices, evaluate the cost effectiveness of new methods and technologies, and conduct site-specific field trials for the odor and corrosion control program based upon changing flows in OCSD's trunk sewer system. With the approval of this change order, staff will have flexibility to adjust the program based on the market, trunk line system needs and any future changing Form No.DW-102.2 Revised: 01/11/2010 Page 1 regulations, environmental rules, costs or conditions all while maintaining our level of service of controlling hydrogen sulfide odors to 25 parts per million in headspace and 0.5 part per million of dissolved sulfides in the liquid phase. The chemical unit prices (in $/gal) include a portion for the product and a portion for support services. These support services include providing for rental equipment, labor for on-going corrective and preventative maintenance of the equipment, remote monitoring of the chemical and feed rates, optimization, and field sampling. OCSD currently purchases ferrous chloride of 34% weight, and the supplier and manufacturer have made available the higher product strength of 36% weight. The increase of $0.090 per gallon reflects this higher concentration product, which will enable reduced volumes for usage and fewer truck deliveries. This unit cost price increase does not reflect an actual material price increase, just an adjustment for a higher concentration solution. By increasing the strengths of these chemicals, this will allow OCSD to reduce the overall program cost resulting in a savings over the contract period. While improving the program's overall effectiveness, the additional chemical options of ferric chloride, 36% weight ferrous chloride, and 65% weight calcium nitrate provide OCSD with new options in the event of supply interruptions and new approaches that may provide an improvement over existing chemical treatment methods. An increase of $0.025 per gallon for the magnesium hydroxide product was submitted through the contract renewal process from OCSD's supplier, Hill Brothers Chemical Company. This increase is based upon a material product increase from the product manufacturer. The Contracts and Purchasing Division staff have determined the proposed cost increase is reasonable. The support services within the contract include dose site development, system mobilization/demobilization, and equipment rental services to provide the most expeditious and cost effective treatment approach. This will allow staff to conduct field trials of alternative treatment methods and to deploy odor and corrosion control treatment on short-term basis on an as-needed basis. PRIOR COMMITTEE/BOARD ACTIONS On May 20, 2009, the Board awarded a contract to U.S. Peroxide, LLC, and to Hill Brothers Chemical Company for Regional Odor and Corrosion Control Services, Specification No. C-2009-405BD, and approved a 10% annual unit price contingency. On February 17, 2010, the General Manager released the 10% contingency for a unit price increase for ferrous chloride provided by U.S. Peroxide, LLC. ADDITIONAL INFORMATION These contracts were formerly bid out as one contract however; the respondents could not provide all chemicals that OCSD requested. For this reason, there will continue to be two contracts with two separate companies. Expanding OCSD's chemical and technology resources will benefit OCSD's ratepayers by increasing efficiency, allowing flexibility with changing conditions, increasing Form No.DW-102.2 Revised: 01/11/2010 Page 2 operational reliability, and reducing cost through the use of new products and less chemical. Management of odor and corrosion is a significant part of the services that OCSD provides to protect public health and the environment and manage its assets properly. The regional trunk line odor and corrosion control program reduces sulfides associated with odor generation and structural degradation within the regional trunk sewer lines. In addition, treatment in the regional trunks provides a secondary benefit of controlling hydrogen sulfide and odors entering the treatment plants. Newly designed capital projects at the treatment plants have been designed based upon continuous chemical treatment for odor control in the regional trunks. These upstream dosing activities are easily and cost effectively outsourced to turnkey service providers. Staff maintains a high degree of oversight for these providers with daily interaction at OCSD dosing facilities as well as program planning and detailed review of all invoices prior to approval for payment. CEQA N/A Form No.DW-102.2 Revised: 01/11/2010 Page 3 BUDGET / DELEGATION OF AUTHORITY COMPLIANCE This recommendation complies with authority levels of the Sanitation District's Delegation of Authority. The initial selection process in 2009 was conducted in accordance with OCSD's adopted policies and procedures. This item has been budgeted in Division 820, line items 55, 58, 60, and 60.1. Date of Approval Contract Amount Contin enc Award Date: 5/20/09 Contract Amount: $1.780/gal. + tax Annual Contingency: (10%) Ferrous Chloride $1.720/gal. + tax 27% Hydrogen Peroxide $2.190/gal. + tax Calcium Nitrate $1.736/gal.+tax Annual Contingency: (10%) (Magnesium Hydroxide) Award Date: 7/28/10 $2.280/gal. + tax Annual Contingency: (15%) (60% Calcium Nitrate) $2.470/gal. + tax Annual Contingency: (15%) (65% Calcium Nitrate) $2.340/gal. +tax Annual Contingency: (15%) (44% Ferric Chloride) $1.958/gal. + tax Annual Contingency: (15%) (34% Ferrous Chloride) $2.030/gal. +tax Annual Contingency: (15%) 36% Ferrous Chloride $1.761 /gal. +tax Annual Contingency: (15%) 63% Magnesium Hydroxide) Program Related Service Line Item Annual Contingency: (15%) $150,000 Annually Form No.DW-102.2 Revised: 01/11/2010 Page 4 OPERATIONS COMMITTEE Meeting Date To 07/07/10 07/27/28/10/10 AGENDA REPORT Item Number Item Number 7 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: James D. Herberg CIP Project Manager: Umesh Murthy GENERAL MANAGER'S RECOMMENDATION Adopt Resolution No. OCSD 10-XX, A Resolution of the Board of Directors of the Orange County Sanitation District, Making Findings Pursuant to Public Contract Code Section 3400 in Support of the Sole Source Specification of Thickening and Dewatering Centrifuges (Sludge Thickening, Dewatering and Odor Control at Plant 1, Job No. P1-101). SUMMARY Public Contract Code § 3400 allows local agencies to draft bid specifications for public works that call for a designated product if the awarding authority, or its designee, finds that the product is designated "in order to obtain a necessary item that is only available from one source...." An item is available from only one source if there is not an "equal" product, meaning a product that will "function as well, in all essential respects" as the designated product. By necessary implication, if only two sources are available for a product, those two products may be specified to the exclusion of others. Sludge Thickening, Dewatering and Odor Control at Plant 1, Job No. P1-101, must be designed around centrifuges selected by the Orange County Sanitation District (Sanitation District). HDR Engineering, Inc. is preparing the plans and specifications for the project, for which the construction contract is scheduled to be awarded in December 2011. Based on extensive investigation, Sanitation District staff have determined that GEA Westfalia Separator, Inc. (Westfalia) manufactures the only centrifuge meeting the Sanitation District's needs for co-thickening sludge, and Westfalia and Alfa Laval, Inc. (Alfa Laval) are the only manufacturers of centrifuges meeting the Sanitation District's needs for dewatering sludge. The estimated cost for the thickening centrifuges (total of three) is in the range of$6-7.5 million. The estimated cost for the dewatering centrifuges (total of three) is also in the range of $6-7.5 million. PRIOR COMMITTEE/BOARD ACTIONS None. Form No.DW-102 Revised: 01/11/10 Page 1 ADDITIONAL INFORMATION Need for Centrifuges Summary of Solids Processing Constraints Currently, treatment of the influent wastewater generates primary sludge, which has a solids content of 3% to 5%, and secondary sludge, which has a solids content of 0.15% to 0.6%. The secondary sludge is thickened using dissolved air flotation thickeners (DAFTs) to about 4% solids. This thickened secondary sludge is blended with the primary sludge and fed to digesters. Digested biosolids are dewatered using belt presses to about 19% solids so that it can be trucked for reuse. As part of its long-range biosolids planning, the Sanitation District considered the following constraints: The amount of solids entering Plant No. 1 for processing (the "Plant 1 Load") is expected to increase from 245,000 pounds per day in 2012 to 306,000 pounds per day in 2030. Plant No. 1 will generate much more secondary sludge once new secondary facilities become operational in 2012. The Sanitation District's existing dewatering facilities (belt presses) were built in 1982 and 1988 and are reaching the end of their useful life. As depicted in Attachment "A", the Sanitation District faces severe space- constraints for new facilities at Plant No.1. The Proposed Project Accounting for these constraints, in 2003, the Sanitation District adopted a Long- Range Biosolids Management Plan recommending centrifuge sludge thickening to increase digester efficiency (instead of building more digesters for which there is not space) and centrifuge dewatering to increase the solids content of the Sanitation District's biosolids, resulting in fewer truck trips to off-site biosolids reuse facilities (instead of replacing the expiring belt presses). Sludge thickening using centrifuges will increase the percentage of solids in sludge going to the digesters from the current 3%-5% to 6-7%. Sludge dewatering using centrifuges will increase the percentage of solids in the biosolids from the current 19% to 27%-30%. This increase in biosolids solids content (dryness) will reduce the tonnage of biosolids generated at Reclamation Plant No. 1. The Sanitation District Requires Automated Thickening Adjustment Technology The Sanitation District will combine and co-thicken primary sludge and secondary waste activated sludge in a centrifuge before digestion, as depicted in Attachment "B". A centrifuge is roughly analogous to a residential clothes washing machine, in which clothes are soaked in water and the water is subsequently removed by spinning. In this case, a dilute influent sludge with relatively low solids content is Form No.DW-102 Revised: 01/11/10 Page 2 spun in the centrifuge and some of the water in the wastewater stream is removed, yielding higher solids content in the effluent product. Attachment "C" depicts a cut- away view of a thickening centrifuge. In co-thickening, the solids concentration and flow rates of both sludge streams will vary day-to-day and hour-to-hour. Consequently, the characteristics of the centrifuge feed sludge will change dynamically. Because of the Sanitation District's operational needs as a large, "always-on", complex treatment plant, the Sanitation District's thickening centrifuges must adjust automatically to changes in the sludge feed rate and solids content, without the need to routinely stop the centrifuge for manual adjustment. Likewise, because the thickening centrifuges are part of the treatment process critical path, the Sanitation District must obtain the thickening centrifuges from a manufacturer experienced in producing centrifuges of the size required by the Sanitation District with the automated adjustment mechanism. The Sanitation District's customers cannot risk a critical path failure of the sanitation system, which would be more likely to result from selection of an inexperienced manufacturer. Centrifuge Space and Operational Constraints As depicted in Attachments "A" and "D", the amount of space available for the digesters is very constrained. The Sanitation District does not require unique technology for its dewatering centrifuges for the project, as it does for the thickening centrifuges. The Sanitation District does, however, require dewatering centrifuges that can process up to 6,800 Ibs per hour of solids within the Sanitation District's fundamental physical space constraints. Also, as with the thickening centrifuges, the Sanitation District must obtain the dewatering centrifuges from a manufacturer experienced in automated dewatering processes. The Sanitation District cannot risk using an inexperienced manufacturer. The Proposed Manufacturers are the Only Source for the Necessary Items Investigation of Potential Manufacturers To determine the list of potential manufacturers, the Sanitation District engaged consultants as part of its design team with decades of experience in the wastewater centrifuge market. To ensure that their information was current, the team visited the International Trade Fair for Water, Sewage, Refuse and Recycling and the Water Environment Federation Conference. These activities resulted in the evaluation of thickening and dewatering centrifuges available in the market from six manufacturers: Alfa Laval, Andritz, Centrysis, Flotweg, Siemens, and Westfalia. Form No.DW-102 Revised: 01/11/10 Page 3 Evaluation Criteria for Thickening Centrifuges, Criteria Application, and Additional Investigation Job No. P1-101 has the following necessary characteristics: 1. Co-thickening of primary sludge and waste activated sludge 2. Processing of primary sludge 3. Processing of waste activated sludge 4. Automated dynamic pond control 5. The ability to fit within a relatively small space (which can only be done with 40-inch centrifuge bowls) 6. Documented reliability with automated dynamic pond control when co-thickening The evaluation of thickening centrifuges centered on these criteria. The table below shows how the evaluation criteria were applied. Manufacturer Criteria 1 Criteria 2 Criteria 3 Criteria 4 Criteria 5 Criteria 6 Westfalia ✓ ✓ ✓ ✓ ✓ ✓ Andritz ✓ ✓ ✓ ✓ ✓ Alfa Laval ✓ ✓ ✓ Centrysis ✓ ✓ ✓ Flotweg ✓ ✓ ✓ Siemens ✓ ✓ ✓ In summary, Westfalia is the only manufacturer with a documented record of successful operation of thickening centrifuges for co-thickening of primary and waste activated sludge using automated variable pond depth control technology. Sanitation District consultants contacted and visited manufacturers and operating plants to determine the extent to which existing facilities were using thickening centrifuges in a manner consistent with the Sanitation District's needs. The results are as follows: Installation Criteria 1 Criteria 2 Criteria 3 Criteria 4 Criteria 5 Criteria 6 Passaic, NJ ✓ ✓ ✓ ✓ ✓ ✓ Westfalia, 2001 Columbus, OH ✓ ✓ ✓ ✓ ✓ Andritz, 2010 (not operational) Phoenix ✓ ✓ ✓ Westfalia, 2005 Los Angeles ✓ ✓ ✓ Westfalia, 2010 (not operational) Columbia, MO ✓ ✓ Andritz Form No.DW-102 Revised: 01/11/10 Page 4 Because Andritz cannot show any experience with automated controls on thickening centrifuges used for co-thickening with the capacity required by the Sanitation District, it cannot establish that its centrifuges perform "as well" as the Westfalia centrifuges which are recommended to be specified. For reference, when the City of Los Angeles issued a solicitation for thickening centrifuges for co-thickening using automated variable pond depth control technology, it required a minimum of two years of experience at three separate installations. Although Andritz was the low bidder in response to that solicitation, the City of Los Angeles selected Westfalia because Andritz could not meet the experience requirement. Evaluation Criteria for Dewatering Centrifuges and Criteria Application The evaluation of dewatering centrifuges centered on the following criteria: 1. Whether the combined footprint of the centrifuges needed for capacity could fit within the limited space available for the centrifuges; 2. The quality of materials used to construct the centrifuges; 3. The manufacturer's experience with automated controls on dewatering centrifuges with the capacity required by the Sanitation District; and 4. The manufacturer's overall experience in the U.S. market. The table below shows how the evaluation criteria were applied. Criteria 1 Criteria 2 Criteria 3 Criteria 4 Manufacturer Westfalia ✓ ✓ ✓ ✓ Andritz ✓ ✓ Alfa Laval ✓ ✓ ✓ ✓ Centrysis ✓ ✓ Flotweg ✓ ✓ Siemens ✓ ✓ In summary, Westfalia and Alfa Laval are the only manufacturers with a documented record of successful operation of automated dewatering centrifuges which fit within the limited space available for the centrifuges. Reference Documents Incorporated The following documents are incorporated by reference as sources for the information provided in this report. All references are to documents published by the Sanitation District unless otherwise indicated. 1. Long-Range Biosolids Management Plan; December 2003. 2. Facilities Master Plan, December 2009. 3. Five-Year Strategic Plan Update; December 2009. 4. Operations and Maintenance 2008-2009 Annual Report. 5. P1-101: Sludge Thickening, Dewatering, and Odor Control at Plant 1 Centrifuge Sole Sourcing — Technical Supplement; July 7, 2010 Form No.DW-102 Revised: 01/11/10 Page 5 6. Biosolids Management Program, Performance Summary Brochure, March 2010. 7. 2009 Biosolids Management Compliance Report. 8. Other technical memoranda: a. Dewatering Comparison, Centrifuges vs. Belt Filter Presses, Carollo Engineers, March 2002. b. Centrifuge Procurement Planning Study, October 2006. c. Thickening Centrifuge Evaluations, October 2008. d. Number and size of Dewatering Centrifuges, October 2008. 9. Westfalia Brochure, "Fluids & Water — Separation technology solutions for the treatment of water, waste water and fluids in municipal and industrial applications." 10. Video on CD-ROM: "Westfalia - Decanter Centrifuge." 11. HDR Inc., PowerPoint Presentation Dated April 13, 2010. CEQA FINDINGS Pursuant to CEQA Guidelines section 15352, the recommended actions are not approvals requiring environmental review under CEQA because the recommended actions are only to make findings sufficient to allow the Sanitation District to designate specified equipment in the construction contract for Job No. P1-101 . The recommended actions do not commit the Sanitation District to a definite course of action to let a contract for bidding, to award a contract, or to authorize any contractor to proceed to construct Job No. P1-101. Pursuant to CEQA Guidelines section 15168(c)(4), Project P1-101 will be examined in the light of the following program Environmental Impact Report (EIR) to determine whether an additional environmental document must be prepared: Sanitation District's Strategic Plan Program EIR certified in October 1999, as supplemented by the Subsequent Environmental Impact Report for the Secondary Treatment and Plan Improvement Project, dated March 2005. Specifically, the Sanitation District will use a written checklist or similar device to document the evaluation of the Project site and Job No. P1-101 to determine whether the environmental effects of Job No. P1-101 were covered in the program EIR. BUDGET/DELEGATION OF AUTHORITY COMPLIANCE This action complies with authority levels of the Sanitation District's Delegation of Authority. No additional funds are requested with this action. This item has been budgeted (FY 2010-11 Budget: Job P1-101 Line Item) and the budget is sufficient for the recommended action. Form No.DW-102 Revised: 01/11/10 Page 6 ATTACHMENTS 1. Attachment "A" — Reclamation Plant 1 2. Attachment "B" — Solids Processing Overview 3. Attachment "C" — Cut away section of Centrifuge 4. Attachment "D" - Centrifuge Layout Date of Approval Contract Amount Contingency N/A N/A N/A JH:UM:eh:cb:eh:gc H:\ntglobal\Agenda Draft Reports\Operations\P1-101 AR Sole Source 070710.docx Form No.DW-102 Revised: 01/11/10 Page 7 Attachment A _o L----j L-----j o J I �—,� _ IIIIIIIIIII ZZ -II-ADMINISTRATION _= d a 3 - Ali BUILDING q IIIIII � o II 011IIIIIII 4 /77777 o R„ ❑ oo �. 0 0 o o — DEWATERING BUILDINGS o _ D S1 OS AND TRUCK LOADOUT n BLEND TANKS& J POLYMER THICKENING AND MEN , DEWATERING FACILITY —EEL- _ BLEACH STATION DAF S ODOR CONTROL qMrL U e llllllllllllLi (I IIIIIIIIIIIIIIIIIIIIII� ®I II N _ D O o e E 0 E 3 3 RECLAMATION PLANT 1 ORANGE COUNTY SANITATION DISTRICT Engineering - Geographic Information Systems 230 0 230 460 Feet Plant Boundary 1 inch = 136.84 feet SANITgT�Oy _ Structures z A Proosed Structures Disclaimer: Map prepared by Orange County Sanitation District. This map is intended for graphical representation only. No level cc (] of accuracy is claimed for the base mapping shown hereon and graphics should not be used to obtain coordinate values,bearings CD � or distances. Portions of this derived product contain geographical information copyrighted by Thomas Brothers. All Rights Reserved. Tu n n nels Source: OCSD GIS Data,Thomas Brothers 2009, q h Revised:05/2010 Roads o1111 � THE EN Attachment B BLENDTANK PRIMARY CLARIFIER THICKENING DEWATERING CENTRIFUGE CENTRIFUGE Product r- -- feed yJ a Discharge for clarified liquid (centrate) Solids discharge Attachment C 1 2 3 4 5 6 7 8 9 1 10 ------------------------------- -- — i ' SCALE 3/32" �i I I^ _ I I I, 4 — i I \\ II STORAGE \ \ ❑ ❑ THICKENING � \ � CENTRIFUGE TRUCK DRIVE \\ THROUGH DEWAIERING LAB CENTRIFUGE I ❑ L❑ I \ \ \ \ a L \ ELEVATT R u \ I ELECTRICAL \ � ROOM i 1 i� !I I I IIIIIII UPS BATTERY 4 i VERTICA REST MI% ROOMS , \ \y, BLEND TANKS DESIGNED Sr.L-. F et—Dete PLANT 1 SLUDGE THICKENING,DEWATERING AND PRO.ECT NO. DRAWN BY: Lt.F.,t-Date " ORANGE COUNTY ODOR CONTROL Pi-ioi CHECKED OY:Iaet.Frrt—DaleFDR THICKENING AND DEWATERING DRAWING NO. UNE IS 2INCHES SANITATION DISTRICT M5-1101 Ds-1 weMlTraL s AT FULL 'I -�� GROUND LEVEL OVERALL PLAN MARK DESCRIPTION DATE APPR CIF NOT Y—SCALE ACCORDINGLY) % Y Attachment D OPERATIONS COMMITTEE Meeting Date To 07/07/10 07/27/28/10/10 AGENDA REPORT Item Number Item Number s Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: James D. Herberg CIP Project Manager: Victoria Pilko GENERAL MANAGER'S RECOMMENDATION Authorize staff to negotiate Amendment No. 2 to the Professional Design Services Agreement with Malcolm Pirnie, Inc. for additional design services for the Newport Force Main Condition Assessment, Project No. 5-60. SUMMARY The scope of Newport Force Main Condition Assessment, Project No. 5-60, is to perform a condition assessment of the Orange County Sanitation District's (Sanitation District) network of force main piping in the City of Newport Beach. The condition assessment was to be done by constructing manholes along Pacific Coast Highway (PCH) and televising the piping from the inside. The Design Consultant is Malcolm Pirnie, Inc. (Malcolm Pirnie). Prior to design and construction of the manholes, staff conducted preliminary investigations of the piping. The findings revealed greater than anticipated deterioration of the network piping. This condition is consistent with deteriorated piping observed recently on the Bayside Drive Improvement Project at the same vicinity. Staff has determined that the force main piping along PCH in Newport Beach is in need of rehabilitation. Staff is recommending that no further work be done on the condition assessment and to move forward with the rehabilitation of the piping. Moving directly to design of the rehabilitation will reduce risk of piping failure, reduce traffic closure impact on PCH, and reduce redundant bypass pumping. The budget for this work was included in the Capital Improvement Program (CIP) Budget for 2010-11. Staff is requesting authorization to negotiate an amendment to the Professional Design Services Agreement (PDSA) with Malcolm Pirnie to add the pipe rehabilitation design to their existing scope of work. Malcolm Pirnie is qualified to perform the work and the continuation of services by retaining Malcolm Pirnie will expedite the project design and reduce project costs. PRIOR COMMITTEE/BOARD ACTIONS February, 2009 —Awarded a contract to Malcolm Pirnie Inc., for the professional design services Newport Force Main Condition Assessment, Project No. 5-60, for an amount of $1,120,418 and approved a contingency of $112,042 (10%). Form No.DW-102 Revised: 01/11/10 Page 1 ADDITIONAL INFORMATION Staff has determined that the force main piping along PCH in Newport Beach is in need of rehabilitation. This is based on recent Closed Circuit Television (CCTV) inspections of the force main piping, along with corrosion studies conducted over the past several years. Rather than continuing with a lengthy and disruptive inspection along PCH, staff is requesting authorization to negotiate an amendment with Malcolm Pirnie to design the rehabilitation of the piping system. The major advantage of moving directly to the design stage is that it reduces the project to one construction period. This will significantly reduce costs, staffing, risks, schedule, and impacts to the public. This approach is supported by the City of Newport Beach. This project could proceed as originally planned, but would prolong the rehabilitation of a piping system that is known to be in deteriorated conditions. The request to negotiate an amendment with Malcolm Pirnie rather than issue a new Request for Proposal (RFP) is based on cost and time savings. Malcolm Pirnie has an existing contract with design work, and issuing an RFP for a new Consultant would increase staff labor costs and add 6-9 months to the schedule. Malcolm Pirnie is very experienced in pipe rehabilitation and is qualified to perform this work. The original scope of work included design of 12 manholes and a condition assessment of the Newport Force Main network piping system. The manholes not only gave the project team access to perform the condition assessment, but also allowed maintenance access in the future. The proposed scope eliminates the condition assessment, but adds rehabilitation design for the piping system. The scope for the manholes remains to allow for liner construction and future maintenance access to the piping system. The current PDSA for Malcolm Pirnie is $1,120,418. The estimated value of the amendment is approximately $1,000,000. After negotiations, staff will request approval of the amendment by the Board of Directors. CEQA This project was included in the Collection Projects Environmental Impact Report (EIR) prepared by Integrated Program Management Consultant on March, 2007. A Notice of Exemption was file on June 8, 2010. BUDGET/DELEGATION OF AUTHORITY COMPLIANCE This complies with the authority levels in the Sanitation District's Delegation of Authority. The project budget is sufficient for the recommended action. (FY 2010-11 Budget: Project 5-60 Line Item). Date of Approval Contract Amount Contingency 02/25/09 $1,120,418 $112,042 (10%) JH:VP:eh:cb:eh:gc H:\ntglobal\Agenda Draft Reports\Operations\5-60 Permission to Negotiate Amend- 070710.docx Form No.DW-102 Revised: 01/11/10 Page 2 OPERATIONS COMMITTEE Meeting Date To Bd.of Dir. 07/07/10 07/28/10 AGENDA REPORT Item Number Item Number 9 Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Ed Torres, Director of Technical Services GENERAL MANAGER'S RECOMMENDATION Authorize an agreement with OpenCEL, LLC, for installation of equipment and onsite proprietary testing of Plant No. 1 waste activated sludge treatment (Project No. SP-125-6), for a total amount not to exceed $1,700,000 upon successful installation and testing as follows: a) Authorize a turn-key installation of OpenCEL equipment and all necessary auxiliary equipment and utilities for an amount not to exceed $300,000; b) Approve a sole source lease purchase of OpenCEL equipment for onsite proprietary testing for a maximum of 36 months at a cost of $32,000 per month, and a down payment of $250,000; and, c) Authorize purchase of the OpenCEL equipment for a total amount not to exceed $1,400,000 upon successful testing. SUMMARY A proprietary process marketed by OpenCEL LLC treats sludge prior to anaerobic digestion to increase its digestibility, resulting in cost savings from increased digester gas production and reduced amounts of residual biosolids. Laboratory-scale tests using OCSD-provided sludge have indicated that the OpenCEL treatment could be effective, and payback periods of two to three years have been calculated for full installations at either treatment plant. A full-scale test of approximately nine months is expected to verify and document the benefits to OCSD. The manufacturer will provide and install equipment for OCSD to test under a lease purchase agreement that can be cancelled at any time by OCSD. The purchase price is $1,400,000; however, if the agreement is cancelled during the first 18 months of the agreement, the initial $250,000 down payment and 40% of the monthly lease payments previously paid will be returned to OCSD. The net liability to OCSD for a nine-month test, if not purchased, would not exceed $472,800, which consists of up-to $300,000 for equipment installation plus $172,800 Form No.DW-102.2 Agenda Report—Board Revised: 09/01/2009 Page 1 (the number of months multiplied by 60% of the monthly lease payments ($32,000 x 60%) totaling $19,200 per month or $172,800 for a nine- month test). If the equipment is purchased, all payments (monthly and down payment) will be applied to the purchase price. Permanent installation would be planned and managed under a separate CIP project. PRIOR COMMITTEE/BOARD ACTIONS December 2008 — Received and filed the five-year Research Strategic Plan, which included the OpenCEL process evaluation as a planned project. ADDITIONAL INFORMATION OpenCEL has been used successfully in a full-scale commercial installation at the wastewater treatment plant in Mesa, AZ, since 2007. Staff is recommending entering into a lease purchase agreement because the OpenCEL equipment is built to order for a customer, so no "demonstration" or "rental" units are available for full-scale tests. The alternative of hiring installation subcontractors directly was considered, but a turn-key installation overseen by OpenCEL was preferred to minimize the District's risk if the test is not successful. The installation includes some electrical and mechanical upgrades that will continue to be useful after the test is completed. CEQA This project is exempt under CEQA Section 15306. BUDGET / DELEGATION OF AUTHORITY COMPLIANCE This request complies with authority levels of the Sanitation District's Delegation of Authority. This item has been budgeted. (Line item: FY 09/10 Update, Item 123, Page A-12, Project SP-125). ET:rm http://sharepoint/gm/board/Published Agenda Reports and Minutes/Item 09.OpenCEL.SP-125-6.docx Form No.DW-102.2 Agenda Report—Board Revised: 09/01/2009 Page 2