DATE: October 25, 2023
TO: Council Infrastructure Committee
FROM: Director of Public Works
SUBJECT: Water Pollution Control Facility (WPCF) Improvements - Phase II Project Administration Building Update, Renaming WPCF to “Water Resource Recovery Facility (WRRF)”, and Laboratory Dedication
RECOMMENDATION
That the Council Infrastructure Committee (CIC) reviews and comments on this report and recommends approval to Council.
SUMMARY
This report is presented to update the CIC on the new Administration Building that will be constructed as part of the WPCF Improvements – Phase II Project (Phase II Project). The project includes upgrades to the treatment process to enhance the treatment capabilities of the WPCF and to reduce the discharge of nutrients to the bay in compliance with the Regional Water Quality Control Board’s upcoming 3rd Watershed Permit. Construction of a new Administration Building and Laboratory is a key component of the overall Phase II Project.
The Water Pollution Control Facility (WPCF) treats an average wastewater flow of approximately eleven million gallons per day (MGD) and meets current regulatory requirements for discharge of treated effluent to the deep waters of the San Francisco Bay (Bay). In May 2019, the Regional Water Quality Control Board (Water Board) announced upcoming regulatory requirements limiting discharge of nutrients (nitrogen) to the Bay. In June 2020, the City completed a comprehensive master plan update, the WPCF Phase II Facilities Plan (Facilities Plan), to identify improvements required for the WPCF to upgrade its treatment process and to incorporate nutrient reduction in the treated effluent to meet the upcoming requirements.
As part of the Facilities Plan, planning was completed for a new Administration Building and Laboratory that included building programming needs, space planning, and identification of laboratory space needs for housing essential laboratory processes. On July 5, 2022, Council authorized an agreement with Brown and Caldwell (B&C) to begin preliminary design services for the Phase II Project. On December 6, 2022, Council authorized final design services for the Administration and Laboratory Building, primary equalization basin relocation project, and geotechnical investigation. The final design phase builds upon the Facilities Plan and preliminary design to further refine the building layout, development of interior and exterior architectural elevations, selection of building interior and exterior finishes and materials, structural design, mechanical (heating, ventilation, and air conditioning (HVAC)) design, plumbing, site work, and other details. 90% plans and specifications are expected in December, and final design is expected in April 2024. A parallel effort is underway to complete an environmental review of the project that will support the environmental documentation required for California Clean Water State Revolving Fund (CWSRF) loan program and the U.S. Environmental Protection Agency (USEPA) Water Infrastructure Finance and Innovation Act (WIFIA) program. Environmental (CEQA) review and documentation is anticipated to be completed in July 2024.
The Administration and Laboratory Building is not eligible for funding under the CWSRF as the project does not focus on direct recycled water, potable water, or wastewater treatment upgrades. The project is eligible under the WIFIA funding program that will finance 49% of the project cost. For the remaining 51% of the project cost, staff will look to the option of financing through other sources such as municipal bonds, which requires further analysis on rate and fee impacts.
BACKGROUND
The existing Administration Building was originally constructed in 1970 and included a couple of offices for the plant superintendent and laboratory supervisor, an operations center, locker rooms, and a small laboratory. In 1981, the building was modified to add a lunch/training room. In 1995, the building was expanded to accommodate additional space needs for the laboratory. In recent years, the WPCF has seen increased staffing levels due to increased regulations and required operation and maintenance activities. Engineering staff are currently housed in a temporary trailer at the WPCF site. Staffing levels are anticipated to continue to increase with the recycled water system as well as the expansion of the treatment process to incorporate nutrient reduction. Consequently, the existing facilities can no longer accommodate the space needs and functional requirements of current and future daily operations. In addition, the laboratory area is inadequate to support the projected growth of laboratory operations and to house the new equipment needed for future regulatory compliance.
On February 27, 2018, Council approved execution of a professional services agreement (PSA) with Black & Veatch (B&V) to develop a comprehensive Facilities Plan to identify improvements needed to meet regulatory requirements related to discharge of nutrients to the Bay. As part of the Facilities Plan, B&V was tasked with performing a space needs assessment and schematic design for a new Administration Building and Laboratory. On October 23, 2019, an update on the Phase II Facilities Plan was presented to CIC that included site plan, floor plans, and conceptual building exterior elevations.
On July 5, 2022, Council authorized entering into a contract with Brown and Caldwell (B&C) for preliminary design services for the Phase II Project. On October 26, 2022, an update on the WPCF Improvements – Phase II Project was presented to CIC that included updated floor plans and exterior elevations developed as part of the preliminary design.
On December 6, 20224 Council authorized awarding final design services for the Administration and Laboratory Building. The 60% plans, specifications, and cost estimate were submitted in September 2023. The submittal included refined building layouts, parking improvements, landscaping plans, utility services, colors and materials, and updated renderings.
The building will be designed for LEED Silver certification and will be of all electric design.
DISCUSSION
The main goal of the Phase II Project is to construct improvements necessary to enhance treatment capabilities of WPCF and to achieve nutrient reduction in compliance with the Water Board’s upcoming 3rd Watershed Permit limiting discharge of nutrients to the Bay. The design services for this project also include assistance to procure funding and to produce environmental documentation, preliminary design, final design, engineering services during construction, startup assistance, and preparation of an Operations and Maintenance Manual.
The project will be split into three separate bid packages. The Administration and Laboratory Building will be the first project, followed by the Primary Equalization Basin (EQ Basin) Relocation Project, and then the WPCF Improvements Phase II Project. The primary advantage of constructing the Administration and Laboratory Building as a separate project includes being able to attract building contractors who specialize in building and laboratory construction specifically bidding as the prime (general) contractor thereby avoiding subcontractor markups. In addition, by starting the building early, Operations and Maintenance staff can move into the new building early minimizing impacts to staff during construction of the Phase II Project. On December 6, 2022, Council authorized final design services of the Administration Building and Laboratory.
New Administration and Laboratory Building
As part of the Facilities Plan, the space needs of the WPCF staff and laboratory were evaluated and multiple design alternatives developed. A schematic design and site plan for a new 19,750 square foot Administration and Laboratory Building was presented to the CIC on October 23, 2019. In July 2022, the preliminary design phase of the WPCF Improvements Phase II Project began, which included review of the programming needs assessment with City staff to confirm the previous assumptions are still valid and to confirm the overall building size. In addition, the location of the building was shifted on the site to avoid conflict with essential medium voltage ductbanks that provide power to both the main switchgear and the East Trickling Filter substation. This resulted in a reconfiguration of the building and layout on the site. Building renderings, material selection, and color studies were also developed to finalize the look of the exterior of the building. On October 26, 2022 , an update on the WPCF Improvements – Phase II Project was presented to CIC that included the updated floor plans and exterior elevations for the building.
In September 2023, staff received the 60% plans and specifications as part of the final design phase. A 60% design workshop was held on August 15, 2023, where the architect presented site improvements, refined building layout and details, landscaping, electrical, mechanical, and other building improvements. A copy of the presentation is included in Attachment II. The 60% design also includes site parking, utilities, and landscaping improvements. In addition, the 60% design further refined the floor plans and provided more details for equipment and building materials. The total building area is 21,563 square feet. The Administration and Laboratory Building is being designed for LEED Silver, with energy efficient lighting and HVAC equipment, solar covered parking, use of recycled water for landscaping irrigation, and other green technologies.
Renaming the Water Pollution Control Facility to “Water Resource Recovery Facility (WRRF)” Staff recommends renaming the existing “Water Pollution Control Facility.” One option is “Water Resource Recovery Facility (WRRF).” The wastewater treatment plant was constructed in 1952 and was named the “North Sewage Treatment Plant” or “Municipal Sewage Disposal Plant.” Later the plant is referred to as the “Wastewater Treatment and Disposal Facilities” or “Wastewater Treatment Facilities”. In 1992, the treatment plant was renamed “Water Pollution Control Facility” to be consistent with the 1948 Federal Water Pollution Control Act. The City received funding through this act to construct and expand the wastewater facility, and consequently, the City named the facility to commemorate this program.
In the intervening time since the WPCF was constructed, various improvements have been made that expand the plant’s purpose beyond wastewater treatment that include resource recovery and solar power generation. The WPCF, the City’s single-largest energy user, has been producing renewable electricity for decades via a cogeneration system (combined heat and power) using biofuel produced as part of the treatment process. The original cogeneration system was in operation between 1982 and 2014 powering approximately 40% of the plant’s load. In 2013, a fats, oils, and grease (FOG) receiving station was commissioned that accepts a waste stream that would previously go to a landfill and incorporated it into the digestion process to further boost biogas production. With more available biogas, the WPCF evaluated options for increasing its green power production. In December 2014, a new cogeneration facility was commissioned that included a larger (1,137 kW) cogeneration engine capable of producing more energy than is needed at the WPCF.
In December 2010, the City commissioned a 1.0 megawatt solar facility just west of the WPCF. In February 2020, another 0.6 megawatts of solar generation was commissioned providing a total of 1.6 megawatts of solar generation at the WPCF with plans to further expand the facility by 1.4 megawatts in the future.
The City has implemented a recycled water project that consists of approximately 8-miles of distribution pipelines, a pump station and 1-mgal storage reservoir, and treatment facility located at the WPCF. In April 2023, the WPCF began delivering recycled water to customers for irrigation uses. This facility recovers a resource that would otherwise be discharged to the Bay. The City has plans to expand the system in the future to further reduce reliance on potable water.
Recognizing that wastewater treatment facilities are moving into more sustainable practices such as recovery and reuse of biogas to produce energy, recovering waste products such as FOG to produce more biogas that can be converted to energy, as well as increasing production of recycled water to reduce reliance on potable water, the Water Environment Federation (WEF) formally began using the term “water resource recovery facility (WRRF)” to refer to wastewater treatment facilities. WEF is a highly regarded water industry group with focus on research, innovation, and development to improve wastewater treatment facilities, as well as providing educational opportunities to the water community via publications and industry conferences. The intent of renaming wastewater treatment facilities as water resource recovery facilities is intended to highlight the multi-benefits that wastewater facilities provide besides conventional wastewater treatment. The name change also reflects a shift in the water sector to focus on resource recovery, such as renewable energy, cogeneration, and recycled water. Renaming the facility will inform the public that there are expanded benefits including resource recovery operations performed at the treatment plant.
Lab Dedication
A graduate of Valor of Cal at Berkeley with a master’s degree in chemistry, Farid Ramezanzadeh served as the City’s Laboratory Supervisor from April 2003 until his passing in an accident while on vacation in September 2022. He managed the City’s laboratory for nearly 20 years and transformed the lab from a limited capacity municipal lab into one that supported sampling and testing for water distribution as well as serving industrial facilities through source control, all while complying with ever increasing sampling and monitoring requirements in response to evolving regulatory requirements. Farid was always forward-thinking and strived to stay ahead of the curve. Under Farid’s leadership, the City of Hayward’s laboratory was one of the first labs in the state to become accredited by the National Environmental Accreditation Program (NELAC) Institute (TNI), a vigorous certification program that dictates laboratory standards and processes, becoming accredited almost a year before other agencies in Northern California. For over 30 years, Farid specialized in inductively coupled plasma (ICP), which measures metal concentrations in water, reducing the need to send such samples out to a third-party laboratory for testing. In the greater Bay Area, especially among water and wastewater systems run laboratories, he was widely referred to as the industry’s metals expert, with laboratory staff coming from all over the region to ask him for advice on metals testing.
Farid was revered amongst City staff as one of the most hard-working and knowledgeable, yet easy-going colleagues who was always willing to help others. Whenever others approached for help, he would always prioritize assisting and being as helpful as he could be. Farid was an exceptional boss and mentor to many laboratory staff and chemists that had the opportunity to work with him over the years. Not only did he teach valuable laboratory skills in chemistry and biology, he also fostered and mentored his team in personal skills such as interpersonal communication, troubleshooting problems, and approaching challenges with a positive and optimistic attitude. No matter how dire a situation would be, Farid always remained calm and collected, creating a serene and confident work atmosphere where everyone enjoyed coming to work and working for him.
Farid tragically passed away in September 2022, and is survived by his wife and children. Farid was actively involved in the planning stage of the laboratory portion of the Administration Building, and the laboratory layout as reflected in the 60% design of the building has changed very little from his vision. Staff would like to request that Council dedicate the new laboratory facility to Farid to commemorate his life and many accomplishments that he achieved throughout his nearly 20 years of service to the City of Hayward as well as his dedication to advancing the water industry.
ECONOMIC IMPACT
The 60% Class 2 cost estimate for the Administration and Laboratory Building was prepared on August 14, 2023. The total estimated probable construction cost for the building is $31,883,443 with a cost accuracy of -15% to +20%.
It is anticipated that Phase II project improvements including the building, will significantly impact sewer service rates and sewer connection fees; however, the extent to which rates will need to be adjusted cannot be determined with certainty at this point. Staff will prepare a rate impact study upon receipt of the total Phase 2 construction estimate in November 2023. Staff intends to aggressively pursue low-interest loans to minimize the impact to customers. It is also worth noting that Hayward’s sewer-related fees are currently among the lowest in the area and that under the upcoming 3rd watershed permit all wastewater treatment facilities discharging to the San Francisco Bay will be required to implement nutrient removal technologies.
FISCAL IMPACT
The estimated total capital cost for the Administration Building is $42,539,989. The cost breakdown is provided below.
Item
Cost
Construction Cost
$31,883,000
Third Party Construction Management
$3,188,300
Administrative Change Orders
$3,188,300
Staff Time
$300,000
Specialty Inspection & Testing Services
$150,000
LEED Building Commissioning Agent
$100,000
B&C Engineering Design Cost
$3,630,389
City Building Permit
$100,000
Total 60% Construction Cost Estimate
$42,539,989
The funding for construction of the Administration and Laboratory Building will be allocated from the Sewer Improvement Fund, 612-07786. The FY24 Adopted Capital Improvement Program (CIP) includes a total of $38,265,000 programmed for the project through FY26.
As the design progresses, the estimated project cost is expected to be adjusted, especially as construction costs become more refined as the design becomes more complete. Budget adjustments will be brought forward to Council through the annual budget approval process and upon Council award of the construction contract. Approval of plans and specifications and call for bids is anticipated for July 2024, with construction award in October 2024.
Assistance to pursue and procure funding for the project is included in the consultants’ scope of work. Funding efforts for the Administration and Laboratory Building includes pursuing financing under the U.S. Environmental Protection Agency (USEPA) Water Infrastructure Finance and Innovation Act (WIFIA) program. A benefit of WIFIA funding is that the funding can retroactively reimburse for engineering design services and the payback period is deferred by up to five years after substantial completion of the project. However, only up to 49% of the project cost is eligible under WIFIA funding. Staff will pursue WIFIA funding as part of this project. The Administration and Laboratory Building is not eligible for the State Revolving Fund (SRF), as this project does not focus on direct recycled water, potable water, and wastewater treatment upgrades. SRF funding is highly competitive and prioritizes water quality improvements, reuse and recycled water improvements, and upgrades for facilities at agencies not in compliance with existing regulations. The project will not be able to compete with other projects with the previously stated upgrades, and funding is very limited. Therefore, as it currently stands, staff will not pursue SRF for this construction package. For the remaining 51% of the project cost, staff will look to the option of financing through other sources such as municipal bonds, which requires further analysis on rate and fee impacts.
STRATEGIC ROADMAP
This agenda item supports the various goals of Council’s Strategic Roadmap. The WPCF Improvements Phase II Project will address infrastructure needs and improvements to increase the reliability of the City’s treatment plant, and construct process improvements to meet more stringent nutrient limits in accordance with upcoming regulatory requirements, while supporting the goals of the Council. Specifically, this item relates to the implantation of the following projects:
Confront Climate Crises & Champion Environmental Justice.
Mitigate Climate Crisis Impacts through Resilient Design and Community Engagement Project C14b: Implement Shoreline Master Plan, including mitigating sea level rise in the industrial corridor through building requirements and outreach Invest in Infrastructure.
Invest in Water Supplies, Sanitation Infrastructure & Storm Sewers Project N19: Update Water Pollution Control Facility Phase II Plan
SUSTAINABILITY FEATURES
The Administration and Laboratory Building will be reviewed by the City’s Building Division for conformance with State and local requirements related to sustainability (i.e., California Building Code, California Energy Code, etc.) which require a minimum level of energy efficiency, resource conservation, material recycling, etc. The building will be designed to be all electric and will not use any natural gas for heating or for lunchroom appliances such as ovens and stoves. In addition, the building will be designed and constructed to meet the City required Leadership in Energy and Environmental Design (LEED) standards for a Silver Certification. LEED Silver Certification will be achieved by including sustainable improvements, such as drought tolerant landscaping in accordance with ReScape Bay Friendly requirements, recycled water for landscape irrigation, solar covered parking, energy efficient lighting and HVAC equipment, and other green improvements.
PUBLIC CONTACT
As part of the funding process, an environmental study (CEQA and/or Initial Study and Mitigated Negative Declaration) will be posted for public review and comment. In addition, a public hearing will be held to review the environmental study.
The project will include a web page to be hosted on the City’s website with periodic updates throughout the multi-year duration of the project.
NEXT STEPS
The following schedule has been developed for this project:
City Council Authorization to Award Final Design and Engineering Services During Construction for the Phase II Project January 2024
Award of Professional Services Agreement for Third Party Construction Management Services January 2023
Submit WIFIA Letter of Interest
January 2024
Approval of Environmental Study – IS/MND or CEQA
June 2024
Approval of Plans and Specifications and Call for Bids for the Administration and Laboratory Building August 2024
Award of Construction Contract for the Administration Building Project November 2024
Approval of Plans and Specifications and Call for Bids for the Primary Effluent Equalization Basin Project August 2024
Award of Construction Contract for the Primary Effluent Equalization Basin Project November 2024
Approval of Plans and Specifications and Call for Bids for the Phase II Improvements Project April 2025
WIFIA Loan Fully Funded
January 2025
Award of Construction Contract for the Phase II Improvements Project August 2025
Administration Building Project Construction Completion October 2026
Primary Effluent Equalization Basin Project Construction Completion February 2027
Phase II Improvements Project Construction Completion
January 2029
Prepared by: Mariza Sibal, Associate Civil Engineer
Hank Vink, Laboratory Supervisor
Reviewed by: Suzan England, Utilities Engineering Manager David Donovan, Water Pollution Control Facility Manager Recommended by: Alex Ameri, Director of Public Works
Approved by:
_________________________________________
Kelly McAdoo, City Manager
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