HomeMy WebLinkAbout11-03-2010 Operations Committee Agenda Packet
11/03/10 Operations Committee Agenda Page 1 of 3
Orange County Sanitation District
Regular Meeting of the
Operations Committee
Engineering, Operations &
Maintenance, and Facilities Support
Services
Wednesday, November 3, 2010
5:00 P.M.
Administration Building
Board Room
10844 Ellis Avenue
Fountain Valley, CA
(714) 593-7130
AGENDA
PLEDGE OF ALLEGIANCE:
DECLARATION OF QUORUM:
PUBLIC COMMENTS: If you wish to speak, please complete a Speaker’s Form and give it to the Clerk
of the Board. Speakers are requested to limit comments to three minutes.
REPORTS: The Committee Chair and the General Manager may present verbal reports on miscellaneous
matters of general interest to the Committee Members. These reports are for information only and require no
action by the Committee.
CONSENT CALENDAR:
1. Approve minutes of the October 6, 2010, Operations Committee meeting.
2. Recommend to the Board of Directors to:
Authorize the General Manager to add Evolution Markets, Inc. to the list of approved
brokers for non-exclusive marketing and brokerage services to sell or purchase
emission reduction credits and carbon credits, in a form approved by General
Counsel.
NON-CONSENT CALENDAR:
3. Recommend to the Board of Directors to:
A. Approve a budget increase of $263,990 for a total project budget of $413,990
for Project No. P1-116, Primary Clarifiers 6-31 Evaluation and Optimization Study;
11/03/10 Operations Committee Agenda Page 2 of 3
NON-CONSENT CALENDAR: (cont’d)
Item No. 3
B. Approve a Professional Consultant Services Agreement with Carollo Engineers,
Inc., providing engineering services for Phase 1 of Project No. P1-116, Primary
Clarifiers 6-31 Evaluation and Optimization Study, for an amount not to exceed
$285,445; and
C. Approve a contingency of $28,545 (10%).
4. Recommend to the Board of Directors to:
A. Adopt Resolution No. 10-XX Declaring the Real Properties owned by Orange
County Sanitation District (OCSD) at 7311 Doig Drive, Garden Grove, and the
Kings County Property as Surplus Property;
B. Authorize the General Manager to utilize the services of two Real Estate
Brokers, selected through OCSD’s procurement process to provide professional
services related to the sale or lease of said properties with service fees to be
paid through the sale of the properties, not to exceed five percent (5%) of the
sale price; and,
C. Authorize the General Manager to offer for sale and enter into negotiations to
sell or lease OCSD’s real properties at 7311 Doig Drive, Garden Grove and the
Kings County Properties with the sales commission to be paid by buyer, in a
form approved by General Counsel.
INFORMATIONAL ITEMS: 5. Rapid Detection Bacteria Indicator.
DEPARTMENT HEAD REPORTS:
ADJOURNMENT:
The next Operations Committee meeting is scheduled for Wednesday, December 1, 2010,
at 5:00 p.m.
11/03/10 Operations Committee Agenda Page 3 of 3
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. 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.
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).
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). 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 Clerk of the Board ten days in advance of the Committee meeting.
Committee Chair: Larry R. Crandall (714) 593-4400 General Manager: James D. Ruth (714) 593-7110 General Counsel: Brad Hogin (714) 415-1006 Clerk of the Board: Donna Terrones (714) 593-7130 E-mail: dterrones@ocsd.com
Page 1 of 2
OPERATIONS COMMITTEE Meeting Date 11/03/10 To Bd. of Dir. 11/17/10
AGENDA REPORT Item Number 2 Item Number
Orange County Sanitation District FROM: James D. Ruth, General Manager
Originator: Jim Herberg, Director of Engineering
GENERAL MANAGER'S RECOMMENDATION
Authorize the General Manager to add Evolution Markets, Inc. to the list of approved
brokers for non-exclusive marketing and brokerage services to sell or purchase emission reduction credits and carbon credits, in a form approved by General Counsel.
SUMMARY
· Emission Reduction Credits (ERC) issued by the South Coast Air Quality Management District (SCAQMD) have substantial market values. In 2008-2009, the
Orange County Sanitation District (Sanitation District) sold ERCs for Volatile Organic
Compounds (VOC) and Sulfur Oxides (SOx) for a total amount of $4.5 million.
· Under the Global Warming Solutions Act of 2006 (Assembly Bill 32), the California
Air Resources Board has been directed to develop greenhouse gas regulations
including a trading program for credits. Federal regulations may also create a
separate federal credit market. The Sanitation District may need to purchase or have the opportunity to sell greenhouse gas credits in the future.
· In May 2008 the Sanitation District contracted with two experienced ERC brokerage firms, ICAP United Inc. and Cantor CO2e, LP, in order to conduct the most favorable ERC transactions. While Cantor CO2 was instrumental in conducting favorable
transactions on behalf of the Sanitation District, ICAP United has never proposed
any ERC transaction for the Sanitation District.
· Staff recommends replacing inactive ICAP United, Inc. with Evolution Market, Inc. among the list of brokers approved for providing ERC/Carbon credit transaction
services. Evolution Market is the leading AQMD ERC broker, and one of the leading
companies in this country providing brokerage services for Carbon Credits. The
company also provides valuable information regarding the state of credit markets.
PRIOR COMMITTEE/BOARD ACTIONS
May 2008 - Authorized the General Manager to sell surplus emission reduction credits
via negotiated contracts with ICAP United Inc., and Cantor CO2e, LP, in a form approved by General Counsel.
Page 2 of 2
ADDITIONAL INFORMATION
N/A
CEQA
N/A
BUDGET/DELEGATION OF AUTHORITY COMPLIANCE
N/A
Date of Approval Contract Amount Contingency
N/A N/A N/A
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Page 1 of 4
OPERATIONS COMMITTEE Meeting Date 11/03/10 To Bd. of Dir. 11/17/10
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: Gary Conklin, Senior Engineer
GENERAL MANAGER'S RECOMMENDATION
A. Approve a budget increase of $263,990 for a total project budget of $413,990 for
Project No. P1-116, Primary Clarifiers 6-31 Evaluation and Optimization Study;
B. Approve a Professional Consultant Services Agreement with Carollo Engineers,
Inc., providing engineering services for Phase 1 of Project No. P1-116, Primary
Clarifiers 6-31 Evaluation and Optimization Study, for an amount not to exceed
$285,445; and,
C. Approve a contingency of $28,545 (10%).
SUMMARY
Project No. P1-116 will identify the improvements needed for the Reclamation Plant No. 1 (Plant No. 1) primary treatment facilities. These improvements will resolve solids
handling limitations, minimize operational costs, and minimize future rehabilitation costs.
The project will be performed in two phases. Phase 1 will address the solids handling
limitations and will investigate cost saving opportunities. Phase 2 will further develop
the cost saving opportunities. This Professional Consultant Services Agreement is for Phase 1 only. A second phase contract may be requested later, based on the results of
Phase 1.
Proposals were received from four firms and the proposals were evaluated by an
evaluation panel consisting of five staff members in accordance with OCSD’s Policies and procedures.
Staff recommends awarding a Professional Consultant Services Agreement to Carollo
Engineers, Inc., (Carollo) for a total fee not to exceed $285,445.
PRIOR COMMITTEE/BOARD ACTIONS
None
Page 2 of 4
ADDITIONAL INFORMATION
Solids Handling Limitations
The first goal of this project is to resolve solids handling limitations of the Plant No. 1
primary treatment facilities.
The primary treatment facilities at Plant No. 1 cannot meet the solids handling demands placed on them. The most immediate problem is with the primary sludge pumps at
Primary Clarifiers (PC) 16-31. The pumps are running continuously at maximum speed.
They were not designed for this mode of operation, and as a result, they are
experiencing a high rate of wear.
The problem is caused by recent changes in plant wastewater influent. Since 1998, the
total influent flow rate has decreased from 255 mgd to 207 mgd, while the suspended
solids loading has increased from 480,600 lbs/day to 533,500 lbs/day. This has
resulted in a more concentrated wastewater stream. To bring enough water to Plant
No. 1 to meet the current needs of the Groundwater Replenishment System (GWRS), a greater portion of the total inflow is being routed to Plant No. 1. This also brings a
greater portion of the total solids to Plant No. 1. As a result, the Plant No. 1 primary
treatment facilities are handling a far greater volume of solids than their original design.
Furthermore, by 2014, more flow will be needed to meet the expansion of the GWRS. This will increase the problem, and will likely exceed the solids handling capacity of the
existing primary treatment facilities.
Fortunately, additional primary clarifier units are not needed. Staff believes that the
solids handling demand can be met by optimizing the performance of the existing units. In their proposal, Carollo identified some promising options for improving the process
performance of the primary treatment facilities.
Cost Savings
The second goal of this project is to minimize operational costs and future CIP costs.
The performance of the primary treatment facilities impacts operational costs of
downstream processes, including secondary treatment and solids handling facilities.
These facilities account for over half of the peak power demand at Plant No. 1. Increasing the performance of the primary clarifiers could decrease the plant power demand and reduce chemical costs.
It is possible that the cost of this project will be recovered in the first year, and an equal
cost savings realized annually through the reduction of annual operational costs. One alternative presented in the Carollo proposal could eliminate the need for planned foul air scrubber improvements; a potential cost savings of $750,000.
Page 3 of 4
Phased Approach
The first phase of this project will address the existing solids handling limitations of the primary treatment facilities.
The first phase will also investigate other cost saving opportunities. Those items that
are validated by Phase 1 will be included in Phase 2.
Staff Evaluation of Proposals A Request for Proposal (RFP) was made available to firms who were registered on the
OCSD “On-Line” Bidding System. Four (4) proposals were received.
An evaluation committee was established and the staff members evaluated each proposal and established a score using the predefined evaluation criteria and weighting for the following:
· Qualifications of firm (20%)
· Proposed Staffing & Project Organization (20%)
· Work Plan (20%)
· Cost & Price (20%)
· Interviews (20%)
Three (3) of the four (4) firms did not meet the minimum scoring criteria of 350 points.
Carollo Engineer’s (Carollo) received a score of 468 which exceeded the minimum score. As a result, Carollo’s cost proposal envelope was opened and a dollar amount of
$698,715 was proposed.
This dollar amount proposed by Carollo exceeded the project budget. Interviews were
scheduled for OCSD staff to meet with Carollo to discuss and clarify their proposed scope of work requirements and project phasing.
Upon completion of the RFP evaluation process, OCSD Engineering staff recommends
awarding a Consulting Agreement to Carollo. The proposal submitted by Carollo
demonstrates a great understanding of the OCSD facilities and the problem presented. Carollo offered the best overall solution. They believe that the OCSD facilities are
capable of a greater performance and have the confidence that OCSD can recover the
cost of our investment in this project in a reasonable time period.
Page 4 of 4
TABLE 1 PROPOSAL EVALUATION
Consultant
Evaluator
Carollo
Engineers
HDR
Engineering
RMC MWH
Americas
Reviewer A 420 340 320 340
Reviewer B 500 320 320 320
Reviewer C 510 300 240 280
Reviewer D 480 340 240 280
Reviewer E 430 340 260 300
Average Score 468 328 276 304
Overall Score 2,340 1,640 1,380 1,520
Ranking 1 n/a* n/a* n/a*
Proposal Fee 698,715 n/a* n/a* n/a*
Revised Fee (Phase 1) 285,445 *Did not meet minimum average score of 350 for short list
Revised Fee (Phase 2) TBD
Revised Fee (Total) 285,445
CEQA
The project is Statutorily Exempt and will only be a feasibility study for possible future
actions, which the agency has not approved, adopted, or funded, and will not have a legally binding effect on later activities.
BUDGET/DELEGATION OF AUTHORITY COMPLIANCE
This authorization complies with authority levels of the Sanitation District’s Delegation of Authority. This item has been budgeted, but there are insufficient funds (Line item:
Section 8, Page 33).
Date of Approval Contract Amount Contingency
N/A N/A N/A
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Page 1 of 4
OPERATIONS COMMITTEE Meeting Date 11/03/10 To Bd. of Dir. 11/27/10
AGENDA REPORT Item Number 4 Item Number
Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Jim Herberg, Director of Engineering
GENERAL MANAGER'S RECOMMENDATION
A. Adopt Resolution No. 10-XX Declaring the Real Properties owned by Orange County Sanitation District (OCSD) at 7311 Doig Drive, Garden Grove, and the Kings County Property as Surplus Property;
B. Authorize the General Manager to utilize the services of two Real Estate Brokers,
selected through OCSD’s procurement process to provide professional services related to the sale or lease of said properties with service fees to be paid through the sale of the properties, not to exceed five percent (5%) of the sale price; and,
C. Authorize the General Manager to offer for sale and enter into negotiations to sell or
lease OCSD’s real properties at 7311 Doig Drive, Garden Grove and the Kings County Properties with the sales commission to be paid by buyer, in a form approved by General Counsel.
SUMMARY
Doig Drive Property
Staff has reassessed and reduced the future staffing requirements from the projections
anticipated in 2006. Staff is not anticipating the expansion of collection system staffing due to the actual and anticipated transfer of local sewers to local service providers in the City of Tustin, Unincorporated Orange County, the City of Orange, the City of Costa
Mesa, and the City of Newport Beach. In addition, better logistical support is available
for the collections crews at Plant No. 1 including proximity to cleaning beds for grit
disposal and auto shop service for heavy equipment. In light of the reduced staffing projections for plant Operations and Maintenance, as well
as the Collections staffing and the logistical advantages, staff believes current
maintenance facilities at Plant No. 1 should be reconfigured to accommodate moving
the Collections staff to Plant No. 1. The proposed modifications include added shower and locker room facilities in Building 6, reconfigured office areas in Shop A, reconfigured warehouse/storage space in Building 1, and reconfiguration of parking
areas at Plant No. 1 to accommodate the collections crew’s heavy equipment. The
affected buildings will require additional work for code compliance and general
refurbishment. These modifications and refurbishments will be added to Project No. P1-115 for execution.
Page 2 of 4
SUMMARY (cont’d)
Staff recommends the disposal of the real property at 7311 Doig Drive, Garden Grove in
an “as-is” sale at the best market rate. If the sale of the property at a reasonable
amount is not possible in the current market conditions, staff may return to the Board of Directors to seek authorization to use this project to make up to $900,000 in improvements to meet minimum code compliance to make the property leasable until
such time as market conditions improve.
Kings County Property On June 5, 2000, OCSD purchased 1808.15 acres of farmland located at the Kings-
Kern county line for a cost of $3,254,400. The primary use of the subject property was
for the beneficial reuse of OCSD’s Class B biosolids for agricultural purposes. Since
the purchase, OCSD has land applied over 100,000 tons of biosolids to this property, returning significant value to the agency.
In 2002, Kings County passed an ordinance banning the use of any form of biosolids
other than biosolids compost on the property. An audit performed on behalf of OCSD
by the accounting firm Arthur Anderson determined that OCSD has recouped its investment in the property through decreased costs or “cost avoidance” reflected in reduced per ton of biosolids management fees that were included as a condition of the
land purchase contract.
The property has been maintained as a failsafe backup for the management of biosolids compost. With the successful marketing of our biosolids compost, OCSD no longer needs the acreage as a failsafe management site.
On March 28, 2008, the subject project was appraised at $2,350,000. In March 2009,
OCSD placed the subject property in the market without procuring professional services of a Real Estate Broker. The property was posted in two farmland advisement web service providers: LandAndFarm.com and LandWatch.com. Subsequent to placing the
property on the market, OCSD received 23 requests for information from prospective
buyers; however, no activity has taken place beyond initial contact.
The Kings County Property has been in the market for approximately two years. In order to proceed with the sale of the property, staff seeks authorization to obtain the
professional services of a Real Estate Broker with the experience and expertise in
marketing, leasing, and selling of farmland within Kings and Kern Counties. The
selection of a Real Estate Broker will be based on OCSD’s standard procurement process.
PRIOR COMMITTEE/BOARD ACTIONS
Doig Drive Property
Page 3 of 4
PRIOR COMMITTEE/BOARD ACTIONS (cont’d)
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 an 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.
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.
Kings County Property
On November 17, 1999, the Board of Directors approved an agreement for the
purchase of 1808.15 acres of a portion of Tule Ranch/Magan Ranch located in Kings
County for an amount not to exceed $3,254,400 for the purposes of Class B biosolids
land application.
Page 4 of 4
ADDITIONAL INFORMATION
Staff have analyzed several options to house the collections personnel and have
determined that reconfiguration of existing buildings at Plant 1 is the least cost option
meeting all of the group’s needs. An existing project, P1-115 Title 24 Access Compliance Improvements at Plant No. 1, is already tasked with upgrading the maintenance facilities and parking areas for code compliance at Plant No. 1 and is in
the very early stages of project design. Staff will recommend that the project be re-
scoped to incorporate the work on the maintenance buildings to accommodate the
collections staff at Plant No. 1. An agenda item will be brought to the Operations Committee at a future date seeking approval for this work. It is anticipated that this change, coupled with the sale of property in Garden Grove, will reduce the upfront
capital expenses to the District as well as provide for lower overall operating costs in the
future.
CEQA
The recommended actions are exempt from CEQA under CEQA Guideline Section
15312 because (1) the properties do not have any significant values for wildlife habitat or other environmental purposes, and (2) the use of the properties and adjacent properties has not changed since the time of purchase. In addition, none of the
exceptions set forth in CEQA Guideline 15300.2 apply.
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: Section 8, Page 37).
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DW-102.2 Operations AR, Rev 10/04/10 Page 1 of 2
OPERATIONS COMMITTEE Meeting Date 11/03/10 To Bd. of Dir.
AGENDA REPORT Item Number 5 Item Number
Orange County Sanitation District FROM: James D. Ruth, General Manager Originator: Ed Torres, Director of Operations and Maintenance
GENERAL MANAGER'S RECOMMENDATION
Informational item re Rapid Detection Bacterial Indicator
SUMMARY
During July and August of 2010, OCSD, Orange County Health Care Agency and the South Orange County Wastewater Authority (SOCWA) participated in a project to evaluate the use of rapid molecular detection methods for indicator bacteria at
Huntington State Beach, Newport Beach and Doheny State Beach. The project
succeeded in its goal of determining recreational water quality for the swimming public
by noon on the day samples were collected. Overall success of the project was measured by the ability of the participating
laboratories to deliver analytical results to the Orange County Health Care Agency so
that real time notices could be posted, via the internet, twitter and electronic billboards.
A presentation will be provided by staff discussing future possibilities and challenges for implementation at Orange County beaches should this type of testing be required.
PRIOR COMMITTEE/BOARD ACTIONS
N/A
ADDITIONAL INFORMATION
Under a consent agreement, EPA is mandated to evaluate new molecular methods to measure Enterococcus bacteria. Quantative polymerase chain reaction (qPCR) is the
technique that is showing the most promise. A clear advantage of this technology is the
ability to fully analyze samples within a matter of several hours, versus days by more
traditional laboratory methods. EPA is hoping to complete their evaluation of molecular
methods before they publish their new recreational water quality criteria in 2012. The State of California has indicated a desire to have a rapid method as an available tool for future monitoring requirements, but also that traditional methods would still be an option
for compliance monitoring.
CEQA
N/A
DW-102.2 Operations AR, Rev 10/04/10 Page 2 of 2
BUDGET / DELEGATION OF AUTHORITY COMPLIANCE
N/A