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HomeMy WebLinkAbout09-01-2010 Operations Committee Agenda Packet AGENDA REGULAR MEETING OF THE OPERATIONS COMMITTEE Engineering, Operations & Maintenance, and Facility Support Services ORANGE COUNTY SANITATION DISTRICT Plant Tour at 4:00 p.m. September 1, 2010 – 4:00 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 July 7, 2010 Operations Committee meeting. 2. Recommend to the Board of Directors to authorize the General Manager to negotiate Amendment No. 6 to the Professional Services Agreement with Camp Dresser & McKee, Inc. for additional design services for the Rehabilitation of Odor Control Facilities, Project No. J-71-8. Operations Committee September 1, 2010 Page 2 NON-CONSENT CALENDAR 3. Recommend to the Board of Directors to: a) Approve Plans and Specifications for the P2 Digester Gas Dryer Upgrades, Project No. FE07-20, on file at the office of the Clerk of the Board; b) Approve Addenda Nos. 1 and 2 to the plans and specifications; c) Receive and file bid tabulation and recommendation; d) Award a construction contract to Minako American Corporation dba Minco Construction for P2 Digester Gas Dryer Upgrades, Project No. FE07-20, for an amount not to exceed $897,000; and, e) Approve a contingency of $89,700 (10%). INFORMATIONAL ITEMS 4. Commissioning of EnerTech’s Biosolids to Energy Plant Update 5. North County Collections Yard, Contract No. 15-04 6. Demonstration Project for Reduction of Air Emission from Plant 1 Central Power Generation System (CGS) Engine 7. Annual Research Projects Report DEPARTMENT HEAD REPORTS 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. Operations Committee September 1, 2010 Page 3 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, October 6, 2010, at 5:00 p.m. Operations Committee September 1, 2010 Page 4 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@yahoo.com Committee Secretary: Lilia Kovac (714) 593-7124 lkovac@ocsd.com General Manager Jim Ruth (714) 593-7110 jruth@ocsd.com Assistant General Manager Bob Ghirelli (714) 593-7400 rghirelli@ocsd.com Director of Technical Services Ed Torres (714) 593-7080 etorres@ocsd.com Director of Engineering Jim Herberg (714) 593-7300 jherberg@ocsd.com Director of Operations & Mntnc. Nick Arhontes (714) 593-7210 narhontes@ocsd.com 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. Form No. DW-102 Revised: 01/11/10 Page 1 OPERATIONS COMMITTEE Meeting Date 09/01/10 To Bd. of Dir. 09/22/10 AGENDA REPORT Item Number 2 Item Number Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Jim Herberg, Director of Engineering CIP Project Manager: Steve Schock GENERAL MANAGER'S RECOMMENDATION Authorize the General Manager to negotiate Amendment No. 6 to the Professional Services Agreement with Camp Dresser & McKee, Inc. for additional design services for the Rehabilitation of Odor Control Facilities, Project No. J-71-8. SUMMARY The Rehabilitation of Odor Control Facilities, Project No. J-71-8, includes improvements to the odor collection and treatment system at Orange County Sanitation District’s (Sanitation District) Headworks and Primary Treatment areas at Plant No.1 to meet the level of service included in the Strategic Plan. A Professional Services Agreement (PSA) was awarded to Camp Dresser & McKee, Inc. (CDM) in October 2003. CDM had completed the majority of the design work by December 2006. The Sanitation District deferred the bid and construction of this project in order to reduce budget expenditures, and in January 2007 requested CDM to suspend further work on this contract. At this time, staff would like to restart this project and complete the design with some new activities and some design elements removed. The Consultant’s scope will include restart activities, design validation, and the inclusion of updated California Building Codes and Sanitation District Design Guidelines. PRIOR COMMITTEE/BOARD ACTIONS September 2006 – Approved Amendment No. 5 to Professional Services Agreement with CDM Inc. for $109,668, increasing the total amount not to exceed $5,028,372. March 2006 – Approved Amendment No. 4 to Professional Services Agreement with CDM Inc. for $327,172, increasing the total amount not to exceed $4,918,704. June 2005 – Approved Amendment No. 3 to Professional Services Agreement with CDM Inc. for $370,651, increasing the total amount not to exceed $4,591,532. November 2004 – Approved Amendment No. 2 to Professional Services Agreement with CDM Inc. for $645,674, increasing the total amount not to exceed $4,220,881. Form No. DW-102 Revised: 01/11/10 Page 2 September 2004 – Approved Amendment No. 1 to Professional Services Agreement with CDM Inc. for $377,685, increasing the total amount not to exceed $3,575,207. October 2003 – Awarded a Professional Services Agreement to CDM Inc., for a total amount not to exceed $3,197,522. ADDITIONAL INFORMATION The revised scope of work will complete the design for the Headworks Odor Scrubbers. This will include the following: updating the plans and specifications with respect to the new California Building Codes and the Sanitation District Design Guidelines; revisiting the expected radius of odor capture to confirm the design due to collection system air jumpers that were added; and initiating a sampling program to confirm the assumed odor concentrations are treatable with this design. The revised scope of work will also include activities to remove primary treatment odor control system from the design package. This work will be finalized “as is” so that the work can be referenced and/or utilized at a future date. Staff has determined that the Primary Odor Scrubbers will be rehabilitated/replaced in Project No. P1-114. CEQA This project was included in the 1999 Strategic Plan Program Environmental Impact Report prepared by ESA and certified on October 28, 1999. A Notice of Determination was filed on October 29, 1999. A Notice of Exemption was filed for this project on February 24, 2004. 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. (FY 2010-11:Line Item Section 8, Page 11). Date of Approval Contract Amount Contingency 10/22/03 09/22/04 11/17/04 06/22/05 03/22/06 09/27/06 $3,197,522 $3,575,207 $4,220,881 $4.591,532 $4,918,704 $5,028,372 $0 (0%) $0 (0%) $0 (0%) $0 (0%) $0 (0%) $0 (0%) JH:SS:eh:gc:cb H:\ntglobal\Agenda Draft Reports\Operations\J-71-8 Permission to Negotiate Amend - 090110.docx Form No. DW-102.2 Revised: 01/11/2010 Page 1 OPERATIONS COMMITTEE Meeting Date 09/01/10 To Bd. of Dir. 09/22/10 AGENDA REPORT Item Number 3 Item Number 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 P2 Digester Gas Dryer Upgrades, Project No. FE07-20, on file at the office of the Clerk of the Board; 2. Approve Addenda Nos. 1 and 2 to the plans and specifications; 3. Receive and file bid tabulation and recommendation; 4. Award a construction contract to Minako American Corporation dba Minco Construction for P2 Digester Gas Dryer Upgrades, Project No. FE07-20, for an amount not to exceed $897,000; and, 5. Approve a contingency of $89,700 (10%). SUMMARY P2 Digester Gas Dryer Upgrades, Project No. FE07-20, will replace digester gas dryers at the Central Generation Building at Plant No. 2. The work generally consists of replacing two water-cooled gas dryers with two skid-mounted, air-cooled, refrigerated- type gas dryers. The project work also includes installing new motor operated inlet and outlet valves, and remote control connections to the Treatment Plant Computer Control System. The plans and specifications for P2 Digester Gas Dryer Upgrades, Project No. FE07-20, were completed in May 2010. Two sealed bids were received on July 1, 2010. The Orange County Sanitation District (Sanitation District) Bid Evaluation Team determined that Minako American Corporation dba Minco Construction, is the lowest “Responsible and Responsive” bidder. The Contractor’s bid amount of $897,000 exceeds the approved construction budget of $600,000. The construction budget was based on the Engineer’s Estimate of probable construction costs. Sanitation District staff investigated the discrepancy between the bid amount and the Engineer’s Estimate. It was determined that the Engineer’s Form No. DW-102.2 Revised: 01/11/2010 Page 2 Estimate did not include provisions for stainless steel materials. Stainless steel is required in this application due to the corrosive environment in the gas compressor building. The project budget has been increased to accommodate the bid amount and contingency. The CIP budget is able to absorb this increase amount without budget amendments. Sanitation District staff recommends awarding the contract to Minako American Corporation dba Minco Construction for $897,000. Summary information on the bid opening for P2 Digester Gas Dryer Upgrades, Project No. FE07-20, is as follows: Project Budget $ 1,500,000 Construction Contract Budget (FE07-20) $ 900,000 Engineer’s Construction Estimate $ 575,000 Lowest, Responsive, Responsible Bid $ 897,000 High Bid $ 1,097,477 PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION The contractor selection was conducted in accordance with the Sanitation District’s adopted policies and procedures. The summary of bids is as follows: Bidder Amount of Bid Minco Construction $ 897,000 S. S. Mechanical Corporation $1, 097,477 CEQA A Notice of Exemption was filed for this project on May 5, 2008. BUDGET / DELEGATION OF AUTHORITY COMPLIANCE This request complies with authority levels of the Sanitation District’s Delegation of Authority. This item has been budgeted (FY 2009-10 Budget Update: Line item 100, Page A-11, FE-P2) and the budget is sufficient for the recommended action. Date of Approval Contract Amount Contingency 09/22/10 $897,000 $89,700 (10%) Form No. DW-102.2 Revised: 01/11/2010 Page 1 OPERATIONS COMMITTEE Meeting Date 09/01/10 To Bd. of Dir. AGENDA REPORT Item Number Item Number Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Edward M. Torres, Director of Technical Services GENERAL MANAGER'S RECOMMENDATION Information Item: Update on Commissioning of EnerTech’s Biosolids to Energy Plant SUMMARY OCSD entered into a long-term agreement (along with three other wastewater utilities) with EnerTech in 2006 to deliver 225 wet tons per day of biosolids (approximately 1/3 of what we generate), and using their patented SlurryCarb system, EnerTech would convert the biosolids to a solid fuel that can serve as a “green” alternative to fossil fuels. EnerTech began commissioning their biosolids to energy plant in Rialto, CA October 2008. During commissioning, EnerTech experienced a myriad of startup problems both with the SlurryCarb technology and with auxiliary equipment that is standard to the industrial sector. Senior management from OCSD and LACSD met with EnerTech several times during the commissioning period to evaluate whether EnerTech was able to overcome the startup problems and successfully commission the plant. A final date of December 31, 2009 was agreed upon by all parties for full commissioning. On December 21, 2009, prior to demonstrating full commissioning of their plant, EnerTech was ordered to cease operations by SAWPA due to violations of their wastewater discharge permit which resulted in a sewer overflow and operational problems in the downstream sewer. As a condition of their revised permit from SAWPA, EnerTech must meet more stringent effluent discharge standards that can only be achieved by upgrading their existing wastewater treatment facilities. In May 2010, EnerTech presented OCSD a Technical Plan (Plan) for commissioning their plant. The Plan identified upgrades to both the wastewater treatment facilities along with other processes and equipment that would be necessary to consistently meet the requirements of their environmental permits and to reliably operate the SlurryCarb system. Implementation of the Plan will cost almost 19 million and would require up to 18 months to complete from the date that EnerTech’s bondholders approve of the Plan, which to date has not occurred yet. Since April 2010, EnerTech has been working with SAWPA to demonstrate that they can meet the effluent standards as they slowly ramp up their operations. To date EnerTech has operated in the dryer only mode and in this mode has been able to demonstrate to SAWPA that the effluent standards can be met. Upgrades to the Form No. DW-102.2 Revised: 01/11/2010 Page 2 wastewater treatment system will be necessary before discharge of wastewater from the SlurryCarb process is allowed. As of July 2010, EnerTech is processing approximately 1/3 of OCSD’s biosolids through their dryer with the remaining 2/3’s being diverted to land application in Arizona. The cost of having this material managed by EnerTech is around $79 per wet ton. For land application, which is our lowest cost option, we currently pay $47 per wet ton. Because OCSD continues to pay the contract cost ($79 per ton) even for that portion of our biosolids diverted to Arizona, EnerTech has agreed to a contract amendment that will enable OCSD to recover the price difference ($32 per wet ton) plus10% through both monetary and non-monetary means. Staff is concerned about the significant delays in EnerTech’s commissioning of their biosolids to energy plant, staff recommends that OCSD continue to support EnerTech through the balance of the commissioning period as long as they meet the key milestones and deadlines contained in the Technical Plan and our agreement is amended enabling OCSD to recover the difference in cost between EnerTech’s contract amount and the cost for land application plus 10%. If either OCSD or LACSD were to exercise its right to end the agreement with EnerTech the project will fail. If the project fails, due to either OCSD or LACSD exercising its right under the agreement or EnerTech not being able to fully commission the plant, OCSD’s short term solution would be to redirect the 225 wet tons per day to Arizona for land application or composting. In addition, staff has been actively evaluating other biosolids management options and can develop an RFP within a reasonable time period to evaluate and contract for an alternative long term Biosolids management option. PRIOR COMMITTEE/BOARD ACTIONS NA ADDITIONAL INFORMATION None CEQA Form No. DW-102 Revised: 01/11/10 Page 1 PERATIONS COMMITTEE Meeting Date 09/01/10 To Bd. of Dir. AGENDA REPORT Item Number 5 Item Number Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Jim Herberg, Director of Engineering Project Manager: Jim Burror GENERAL MANAGER'S RECOMMENDATION Informational Item re North County Collections Yard, Contract No. 15-04 SUMMARY On June 23, 2010, the Sanitation District suspended the design work for the North County Collections Yard, Contract No. 15-04, while several new options were developed for locating staff at existing facilities. Staff will present the current anticipated cost for the North County Collections Yard planned for the Garden Grove site, and compare the cost with some new options to relocate staff at Reclamation Plant No.1. PRIOR COMMITTEE/BOARD ACTIONS March 2010 – Approved a contingency increase of $76,050 (23%) to the Professional Design Services Agreement with MVA Architects, Inc. for North County Collections Yard, Contract No. 15-04, providing for design services for a total contingency of $125,648 (38%). February 2008 – Approved Amendment No. 2 to PDSA with MVA Architects, Inc. for an amount of $245,650, increasing the total amount not to exceed $330,650, including a contingency of $49,598 (15%). November 2007 – General Manager approved Amendment No. 1 to PDSA with MVA Architects, Inc. for amount of $6,000, increasing the total amount not to exceed $85,000. March 2007 – General Manager approved PDSA with MVA Architects, Inc. for architectural services for an amount not to exceed $79,000, with a contingency of $6,000 to be used upon approval of the Project Manager. September 2006 – Executed the purchase of real property located at 7311 Doig Drive, Garden Grove for $6,200,000 for use as the North County Collections Yard. Form No. DW-102 Revised: 01/11/10 Page 2 March 2006 – Authorized the Interim General Manager to pursue and select real property, within budgeted funds, on behalf of the Sanitation District for possible purchase, and the Interim General Manager and Board Chair to negotiate a Purchase and Sale Agreement to acquire the selected property for a purchase price not to exceed $10,500,000, contingent upon final approval by the Board of Directors, in a form acceptable to General Counsel to use in the future as the North County Yard. September 2005 – Approved and directed the Board Chair to execute on behalf of the Sanitation District a Purchase and Sales Agreement in a form acceptable to the General Counsel to acquire the property located at 7465 Lampson Avenue in Garden Grove, to be used in the future as the North County Collections Yard. However, the Sanitation District was unsuccessful in the acquisition. June 2005 – Approved the proposed budget for Fiscal Year 2005/06 establishing funds ($10,500,000) for the North County Collections Yard, Contract No. 15-04. ADDITIONAL INFORMATION None CEQA A Notice of Exemption was filed on February 10, 2010. JB:sa:gc H:\ntglobal\Agenda Draft Reports\Operations\15-04 Update - Information Only - 090110.docx Form No. DW-102.2 Page 1 OPERATIONS COMMITTEE Meeting Date 09/01/10 To Bd. of Dir. AGENDA REPORT Item Number 6 Item Number Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Ed Torres, Director of Technical Services GENERAL MANAGER'S RECOMMENDATION Information item regarding Demonstration Project for Reduction of Air Emission from Plant 1 Central Power Generation System (CGS) Engine SUMMARY § In an effort to comply with South Coast Air Quality Management District’s (SCAQMD) requirements to reduce emission from digester gas-fired internal combustion engines (effective July 2012), in April 2010 OCSD commenced operation of a pilot emission control system that consists of a digester gas cleaning unit together with a dual catalyst system at Plant No. 1. § If this control technology is proven effective in meeting SCAQMD’s stringent emission limits, OCSD may install similar systems on the remaining large Central Generation System (CGS) engines at both plants. This will result in compliance with SCAQMD requirements and further reduce the potential of adverse health impacts to staff and to the surrounding community. § Staff estimates that full compliance for all engines could be achieved by 2015 if a decision to move forward is completed during the summer 2011. Since the compliance date is July 2012, staff will be actively working with SCAQMD to extend out the compliance date as part of their rule revision mid-2011. Other options, such as discontinuing operation of the CGS and flaring of digester gas, replacing some or all of the CGS by fuel cells and clean-up of digester gas and selling it to the gas company is currently under consideration and evaluation. Staff will return to the Board of Directors at a future date with a recommendation on this important policy issue. § A tour of the pilot emission control system and the new fuel cell hydrogen fueling station is scheduled during the Operations Committee meeting. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION N/A Form No. DW-102-2 Revised 03/01/07 Page 1 OPERATIONS COMMITTEE Meeting Date 09/01/10 To Bd. of Dir. AGENDA REPORT Item Number 7 Item Number Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Ed Torres, Director of Technical Services GENERAL MANAGER'S RECOMMENDATION Information item regarding Annual Research Projects Report SUMMARY · OCSD has an active research program that includes activities in Technical Services, Operations and Maintenance, and Engineering. · During 2009-10, research activities addressed a range of topics, with notable efforts in air quality management, environmental improvement, odor and corrosion control, treatment process improvements, and emerging (trace) contaminants detection and removal. · Several projects are cooperative efforts with industry research organizations or universities. These arrangements provide substantial leveraging of OCSD’s funds. · Staff has completed a 2010 Research Projects Report (Report) which is intended to inform OCSD management, staff and external stakeholders about the budget, outcomes of completed and ongoing research, and future goals of the research program. · A PowerPoint presentation summarizing the Report will be provided at this committee meeting. PRIOR COMMITTEE/BOARD ACTIONS N/A ADDITIONAL INFORMATION N/A ATTACHMENTS N/A