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%)
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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.
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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