HomeMy WebLinkAbout03-19-2019 Item 08 - Water Treatment and Distribution Disinfection Byproduct reduction project and Sole Source Equipment Authorization Department Name: Utilities
Cost Center: 6001
For Agenda of: March 19, 2019
Placement: Consent
Estimated Time: N/A
FROM: Aaron Floyd, Interim Utilities Director
Prepared By: Jennifer Metz, Utilities Projects Manager
Jason Meeks, Water Treatment Plant Supervisor
SUBJECT: WATER TREATMENT PLANT AND WATER DISTRIBUTION SYSTEM
DISINFECTION BYPRODUCT REDUCTION PROJECT AND SOLE
SOURCE EQUIPMENT AUTHORIZATION
RECOMMENDATION
1. Authorize an engineering design services budget of up to $200,000 for the Water Tre atment
Plant and Water Distribution System Disinfection Byproduct Reduction Project ; and
2. Authorize the inclusion of the sole-sourced equipment in construction/bid documents for the
Water Treatment Plant and Water Distribution System Disinfection Byproduct Reduction
Project ; and
3. Authorize a budget of $1,650,000 for equipment, construction, and construction management
services for the Water Treatment Plant and Water Distribution System Disinfection
Byproduct Reduction Project.
DISCUSSION
Overview of How the City Provides Water to the Community
The City’s Water Treatment Plant (WTP) meets the community’s
daily water demands using a combination of surface water sources
that include Whale Rock, Salinas (Santa Margarita Lake), and
Nacimiento Reservoirs. Following the initial treatment processes,
chlorine is added to the water before distribution to the community
to prevent any harmful microbial regrowth from occurring. Water
systems that use chlorine for this type of disinfection are required by
federal and stat e law to sample for disinfection byproducts on a
regular basis at specific locations. Total Trihalomethanes (TTHMs)
are a group of substances known as disinfection byproducts which
form when chlorine reacts with naturally occurring organic material
in surface waters. The highest levels of TTHMs typically occur
where water age is the greatest, such as in water tanks with poor
mixing. United States Environmental Protection Agency (U.S. EPA)
regulatory requirements for maximum TTHM contaminant levels
became mo re stringent in 2013 due to elevated concerns that there
may be associated health risks with prolonged ingestion.
The United States
Environmental Protection
Agency has estimated that
public water systems will
need to spend over
$4 billion (in 2011 dollars)
to upgrade their water
treatment infrastructures
and achieve compliance
with the Stage 2
Disinfection Byproducts
Rule.
Packet Pg. 47
Item 8
How the City Addresses TTHM Levels
The City’s water sample results for the 2nd quarter of 2015 showed TTHMs at levels of 82.1 parts
per billion (ppb) which was above the standard or maximum contaminant level (MCL) of 80 ppb.
When routine monitoring indicated that TTHM levels were above regulatory standards, the City
issued a notice to customers to keep them informed about water quality. Since that time, WTP
staff has been blending water from the various surface water reservoirs to optimize treatment
performance along with making operational adjustments to reduce water age within the City’s
Water Distribution System to minimize TTHM formation. WTP staff also pilot tested different
chemicals aimed at reducing TTHM levels without success. The City’s Water Distribution staff
implemented a flushing program to help move the aging water throughout the system. Over the
last few years, the City’s third quarter (late summer) TTHM readings are nearing the MCL
exceedance levels. This upward trend in TTHMs is exacerbated by the warmer water
temperatures in the source water supplies during summer, water conservation, and the City’s
water resiliency supply strategy that requires using minimal water from Whale Rock Reservoir,
even though it is the lowest in organic material.
Design and Construction Project to Continue to Meet TTHM Regulatory Compliance
To enable the City to reliably remain in regulatory complia nce, staff is recommending the City
Council authorize a design services and construction budget for the Water Treatment Plant and
Water Distribution System Disinfection Byproduct Reduction Project (Project). Staff has
identified two locations (Clearwell #2 at the WTP and Edna Saddle Tank on the southern side of
the City) for TTHM reduction and has identified the available technology to effectively reduce
TTHMs to meet regulatory requirements. The technology and equipment, PAX Trihalomethane
Reduction System by PSI Water Technologies, Inc., includes three components that together will
achieve a TTHM removal rate that would allow the City to remain in regulatory compliance. The
system is a custom-designed, energy-optimized combination of mixers, aerators, and ventilators
to reduce TTHMs. Staff has also identified a strategy of modifications and maintenance items at
Edna Saddle Tank and Pump Station to achieve greater mixing while moving water in and out of
the tank, improve overall water quality, provide greater monitoring control, and provide system
redundancy which would be confirmed through project design and funded through project
construction.
Because design of the project is dependent on the type of technology used to treat TTHMs, WTP
staff propose use the City’s sole source purchasing authority, per Municipal Code 3.24.060.D, to
specify the purchase the PAX Trihalomethane Reduction System. The detailed sole-source
justification for this equipment was submitted to the City’s Purchasing Analyst for critical
review (Attachment A), who determined the sole source request conforms with City policies.
Sole source authorization is necessary so the specific equipment may be incorporated in the
Project’s design and ultimately into the construction/bid documents. If an unanticipated design
change should occur between now and completion of the documents that would allow for
competitive bidding on any applicable equipment, that equipment will be removed from the sole
source list and competitively bid.
Packet Pg. 48
Item 8
With Council’s budget authorization, staff will contract with an on-call Water and Wastewater
design engineer for the design of the Project. It is anticipated that construction will proceed
during the 2019-20 fiscal year.
Previous Council or Advisory Body Actions
The City’s 2015 Potable Water Distribution System Operations Master Plan was approved by
the City Council in 2016. The Master Plan discussed the challenges in meeting Stage 2
disinfection byproducts water quality regulations associated with tank turnover and water age
that this Project will address. The Master Plan is available on the City’s website at:
https://www.slocity.org/home/showdocument?id=6439
Policy Context
To ensure that water is safe to drink, the U.S. EPA and the State Water Resources Control Board
prescribe regulations that limit certain contaminants in water provided by public water systems,
including TTHMs.
Consistent with General Plan, Water and Wastewater Management Element, Polic y A2.2.1, the
City utilizes multiple water resources to meet its water supply needs. Operationally, this means
the City uses a blend of water sources to meet the community’s water needs – from Salinas,
Whale Rock, and Nacimiento Reservoirs.
Public Outreach
The City posts its Water Quality Consumer Confidence Report annually on the City’s webpage.
Public water systems are required by state and federal law to notify users of any exceedance of
any water quality standard and any other noncompliance events affecting their water system. In
2015, when a violation occurred, the City sent out a Public Notice of Violation. The City has not
had a violation since the occurrence in 2015.
CONCURRENCES
The Public Works Department concurs with this recommendation.
ENVIRONMENTAL REVIEW
The recommended action to authorize the budget for the Project is not a "project" under the
California Environmental Quality Act (CEQA), because the action does not involve any
commitment to a specific project which may result in a pote ntially significant physical impact on
the environment, as contemplated by Title 14, California Code of Regulations, Section 15378.
Once project design is underway the City will evaluate the project for potentially significant
environmental impacts per CEQA.
Packet Pg. 49
Item 8
FISCAL IMPACT
Budgeted: No Budget Year: N/A
Funding Identified: Yes
Fiscal Analysis:
Funding Sources Current FY Cost Annualized
On-going Cost Total Project Cost
General Fund
State
Federal
Fees
Other: Water Fund $200,000 (project
design services only) $120,000 $1,850,000
Total $1,850,000
Funding for the Project was not identified in the 2017 -19 Financial Plan. However, due to water
quality sample results indicating elevated TTHM levels at Clearwell #2 and Edna Saddle, staff is
requesting City Council authorization to establish a budget of $200,000 for project design
services. Adequate funding is available in the Water Fund Completed Projects Account which
has a current balance of $253,000. Staff is also requesting funding for equipment, construction,
and construction management totaling $1,650,000 services in FY 2019-20 so the project will be
able to move to construction in the next fiscal year for a total project cost of $1,850,000.
Approximately $1.325 million is available within the Water Fund for this project. Two WTP
maintenance projects totaling $325,000 are proposed to be delayed and incorporated in the 2019-
21 Financial Plan appropriation in order to accommodate the Project’s construction.
Following Project construction, staff is estimating an on-going operational cost of $100,000
annually for electrical consumption and $20,000 annually for to service of the new equipment.
These operational costs would appear in the Water Fund’s annual budget request.
ALTERNATIVES
1. No Project. The City Council may elect to not authorize the engineering design services and
construction of budget for the project. Staff does not recommend this alternative as the City
is required to remain in regulatory compliance of the Disinfection Byproduct Rule and staff
anticipates being unable to do so in the future without these improvements .
2. No Sole Source. The City Council may elect not to authorize the technology and equipment
be placed in the construction/bid documents. Staff does not recommend this alternative for
the reasons outlined on the sole source justification form.
Attachments:
a -Sole Source Justification PSi Water Tech
Packet Pg. 50
Item 8
City of San Luis Obispo Sole Source Justification Form
PSI Water Technologies, Inc.
It is the policy of the City of San Luis Obispo to solicit quotations or bids for purchases of commodities or services for
specified dollar amounts and to select vendors on a competitive basis (See City of San Luis Obispo Financial
Management Manual, Section 201, Exhibit 201-B).
Pursuant to San Luis Obispo Municipal Code Chapter 3.24.060, certain acquisitions in which the products or services
may only be obtained from a single source may be purchased without engaging in bidding procedures. Such Sole
Source acquisitions must be justified in sufficient detail to explain the basis for suspending the usual competitive
procurement process and approved by the approving authority before such a purchase is made .
1. What product or service is being requested? Why is it necessary?
The City’s Water Treatment Plant (WTP) meets the community’s daily water demands using a
combination of surface water sources that include Whale Rock, Salinas (Santa Margarita Lake), and
Nacimiento Reservoirs. Following the initial treatment processes, chlorine is added to the water befo re
distribution to the community to prevent any harmful microbial regrowth from occurring. Water systems
that use chlorine for this type of disinfection are required by federal and state law to sample for
disinfection by-products on a regular basis at specific locations. Total Trihalomethanes (TTHMs) are a
group of substances known as disinfection by-products which form when chlorine reacts with naturally
occurring organic material in surface waters. The highest levels of TTHMs typically occur where water age
is the greatest, such as in water tanks with poor mixing. United States Environmental Protection Agency
(U.S. EPA) regulatory requirements for maximum TTHM contaminant levels became more stringent in
2013 due to elevated concerns that there may be associated health risks with prolonged ingestion.
The City’s water sample results for the 2nd quarter of 2015 showed TTHMs at levels of 82.1 parts per billion
(ppb) which was above the standard or maximum contaminant level (MCL) of 80 ppb. When routine
monitoring indicated that TTHM levels were above regulatory standards, the City issued a notice to
customers to keep consumers informed about water quality. Since the City’s 2015 MCL violation, WTP
staff has been blending water from the various surface water reservoirs to optimize treatment
performance along with making operational adjustments to reduce water age within the City’s Water
Distribution System to minimize TTHM formation. WTP staff also pilot tested different chemicals aimed
at reducing TTHM levels without success. The City’s Water Distribution staff implemented a flushing
program to help move the aging water throughout the system. Over the last few years, the City’s third
quarter (late summer) TTHM readings are nearing the MCL exceedance levels. This upward trend in TTHMs
is exacerbated by the warmer water temperatures in the source water supplies during summer,
conservation, and the City’s water resiliency supply strategy that requires using minimal water from
Whale Rock Reservoir, even though it is the lowest in organic material.
Staff has identified two locations (Clearwell #2 at the WTP and Edna Saddle Tank on the southern side of
the City) for TTHM reduction and has identified the available technology to effectively reduce TTHMs to
meet regulatory requirements. The technology and equipment, PAX Trihalomethane Reduction System
by PSI Water Technologies, Inc., includes three components that together will achieve a TTHM removal
rate that would allow the City to remain in regulatory compliance. The system is a custom-designed,
energy-optimized combination of mixers, aerators, and ventilators to reduce TTHMs.
The TTHM removal vent is an active ventilation system for drinking water storage tanks designed to be
installed at the roof of the storage tank. It is designed to ensure efficient air circulation within the
headspace of the tank and proper ventilation by forcing air into the tank interior. The tank mixing system
Packet Pg. 51
Item 8
consists of one mixer intended for continuous use while submersed in potable water storage tanks. The
mixer has the ability to function continuously on a 24-hour per day year-round basis, regardless of drain
and fill cycles. The mixer consists of a water-filled submersible motor, an impeller and a non-submersible
control center that houses all control electronics. The surface aeration system consists of floating aerators
suitable for use in potable water. The aerator consists of a motor, a direct drive impeller driven at a
constant speed and an integral flotation unit.
2. Is this “brand” of product or services offered the only one that meets the City’s requirements? If
yes, what is unique about the product/services?
The PAX system is a proprietary product by PSI Water Technologies, Inc..
3. Is the product or service proprietary or is it available from various dealers? Have you verified this?
The City has verified that the product is proprietary.
4. Have other products/vendors been considered? If yes, which products/vendors have been
considered and how did they fail to meet the City’s requirements?
Yes. Another equipment vendor, Solar Bee, was considered. The PAX System outcompeted Solar Bee’s
approach due to its TTHM removal rate guarantee, construction and operational cost, superior quality
materials, and points of potential mechanical failure. The PAX System guarantees 40 percent TTHM
removal at a cost of $498,000 in Clearwell #2. For the same site, the system proposed by Solar Bee
guarantees 30 to 35 percent TTHM removal at a cost of $792,000. Solar Bee cannot work within the
available power constraints of the Clearwell #2 location without a costly electrical system upgrade. The
annual power cost to run Solar Bee equipment is 165 hp @ total kw of 123. Pax is 116 hp @ total kw of
86. Pax materials of construction for aeration is superior quality-Pax almost entirely stainless versus the
Solar Bee equipment which is plastic.
5. Is the purchase an upgrade or addition to an existing system or brand of products adopted citywide?
If so, will purchase of this product avoid other costs as opposed to purchasing another product or
service (e.g., additional training required; data conversion; implementation of a new system; etc.)?
No. The product is a new system proposed at Clearwell 2, a two-million gallon drinking water storage tank,
located at the Water Treatment Plant. A second system is proposed at Edna Saddle Tank a four-million
gallon drinking water storage tank, in the Water Distribution System. Both systems are proposed to meet
regulatory requirements (Stage 2 Disinfection Byproduct Rule).
6. Is this a request for services by a contractor with necessary, unique and critical knowledge of
established City systems or programs? If so, will using the contractor’s services avoid other costs
(e.g.: significant staff time in compiling information, data transfers, etc.)?
No.
7. What is the quoted price for the product or services and is it reasonable (based on other products
or services in the same field or based on historical pricing for the City for similar products or
services)?
$498,000 for the Clearwell #2 package, $49,550 for Water Distribution System/Edna Saddle package. The
cost of the two systems total $547,550.
Approved:
______________________________________ _____________________
Dan Clancy, Purchasing Analyst Date
Daniel Clancy
3/5/2019
Packet Pg. 52
Item 8