Coastal Water Project

1
Coastal Water Project

• Capital and OM Cost Description
• North Marina Alternative -
• Desalination Plant Site

2
Introduction

• Present cost estimates for North Marina Project
  Alternative
• including key assumptions and approach
• Workshop Presenters
• Mark Schubert, PE, CAW
• Paul Findley, PE, RBF Consulting
• Dave Stephenson, CAW
• Data and assumptions derived from cost estimates
  contained in Attachments K and L of the Schubert
  Testimony, dated May 22, 2009

3
North Marina Project

• First Proposed in PEA, 2005
• Basic Components, per DEIR
• 11 mgd Desalination Plant in North Marina
• Sourced from Slant Wells
• Return up to 800 afy to water users in Salinas
  Valley
• Brine Disposal to MRWPCA Outfall
• Pipelines to CAW Service Area
• Terminal Reservoir
• Pump Station and Pipeline to ASR Wells
• 2 New ASR Wells 2 Existing ASR Wells

4
North Marina Project (contd)

• Cost Estimate History
• Capital Costs
  Annual OM Costs
• PEA 214M 7.8M (gross)
• (2005 ) (for 11,730 afy)
• 
  
• Current 250M 9.6 -10.1M (gross)
• (2009 ) 7.6M-8.1M (net)
• 
  (for 10,100-10,900 afy)

5
North Marina Cost Estimates

• Changes, Compared to PEA Estimate
• Updated to 2009 dollars (from 2005 dollars),
  checked previous estimates, and added more detail
• Slant well intakes instead of HDD well intakes
• 11mgd desalination plant capacity, instead of 10
  mgd
• Added facilities for delivery of up to 2 mgd to
  CSIP system
• Brine disposal to MRWPCA Outfall instead of MLPP
  Outfall

6
North Marina Cost Estimates (Contd)

• Changes, Compared to PEA Estimate
• Added pressure dual media filters
• Added 20 RO standby capacity
• Incorporated same system changes as Moss Landing
  Project, south of Reservation Road
• OM costs estimated at meeting 15,200 afy total
  CAW system demand plus 800 afy to CSIP
• Assumed power from grid instead of self-generation

7
Capital Cost Estimate
ML Moss Landing NM North Marina X Both Sites
8
Pipelines

• Cost Components
• Material
• Adjusted Vendor Quotes for Pipes
• Type II Asphalt Concrete
• Erosion Control (BMP)
• Labor Equipment
• ROW Preparation, Pipeline Installation, Erosion
  Control, Surface Restoration, Bore Pit
  Construction
• Prevailing Wages per Department of Labor
• Variable Production Rates for Standard Crews
• Off-site Transport and Storage of Excavated
  Material
• Required Equipment per Construction expert

9
Pipelines (contd)

• Special Construction
• 1,500/ LF for Jack and Bore
• Dewatering Wells 32,000 per Jack and Bore
  Crossing
• Cathodic Protection
• 5/ LF for metallic pipelines
• Contractor Overhead Profit (OHP)
• 18.5 of all above costs

10
Pump Stations

• Desalinated Water PS ASR PS
• Quantity estimates and unit prices per recent
  similar project estimate
• All Other Pump Stations
• Equipment estimated on / Installed HP, plus 25
  for taxes, installation, material, plus 18.5
  for contractor OHP
• Building based on 110/ SF, includes contractor
  OHP
• Wet wells based on 700/ CY of concrete

11
ASR Wells

• Monitoring Well, Core, Test well at ASR Well 3
• Test Well at ASR Well 4
• Stainless Steel Material for Test Wells
• Wellhead facilities at ASR Wells 3 4
• Conversion of Test Wells to Production wells
• Well Pumps
• Electrical Pump Building
• Well Field Piping Civil Work
• Electrical, IC
• Back flush Water Reclamation Facility
• Estimates from ASR Systems
• Contractor OHP included in above

12
Slant Wells

• Test Slant Well 5 Additional Production Slant
  Wells
• 13.8 million, Including contractor OHP
• Slant Well Drilling costs detailed by Doheny
  State Beach Slant Well Driller
• Stainless Steel Material
• Includes
• Well Pumps Installation
• Well Development Testing
• Testing / Development Water Disposal facility
• Civil works and well head vaults
• Electrical, IC
• Electrical Costs Include additional 250,000 for
  upgraded service to site

13
Process Equipment

• Cost Components
• Vendor Supplied Equipment
• RO System, Pressure Filters, Pumps, Screens,
  Chemical Systems
• Includes Delivery, Taxes, Manuals, Testing,
  Training
• Installation
• Includes Labor, Equipment, Contractor Supplied
  Appurtenances
• Estimate based on expert consultation and
  experience
• Building, Electrical, IC, and Site Work
• Estimated Separately
• Contractor OHP
• 10 for RO Equipment
• 18.5 for other installed equipment
• The North Marina RO Process Facility cost was
  developed by multiplying the Moss Landing RO
  Process cost by a factor of 1.10

14
Buildings Structures

• Floor Slabs, Foundations, and Hydraulic
  Structures were estimated at 1100/ CY
• Superstructures were estimated at
• 120/ SF for large process buildings
• 110/ SF for pump stations
• 350/ SF (first floor area) for two story admin
  building
• Detailed estimates for buildings were estimated
  using commercially available cost estimating
  software

15
Civil Works

• Line Items in the Estimate
• Desalination Plant Earthwork, Sitework, Piping
• Terminal Reservoir Earthwork, Sitework, Piping
• ASR Backflush Reclamation Basin
• Dried Solids Storage
• RO Clean in Place (CIP) Waste Storage

16
Civil Works (contd)

• Unit Costs
• General Site work 5/ SF
• Site Preparation
• Rough Grading
• Fine Grading
• Paving
• Landscape Irrigation
• Site Lighting Security
• Fencing
• Excavation / Backfill 7/ CY
• Yard Piping 400/ LF
• Above Costs Include 18.5 Contractor OHP

17
Tanks (Reservoirs)

• Circumferentially Pre-stressed, Post-Tensioned
  Concrete Tanks w/ Concrete Covers
• Partially Buried Clearwell 1.75/ gallon
• Clearwell at Moss Landing 1.50/gallon
• Buried Terminal Reservoir 1.75/ gallon
• Costs Include 18.5 Contractor OHP
• Earthwork, Site work, and Piping estimated
  separately
• Based on analysis of two similar recently
  constructed projects

18
Electrical, Instrumentation Control (IC)

• Desalination Plant Electrical /IC
• Power intensive facility
• Allowance of 25 of other plant non-electrical
  costs, based on recommendation from electrical
  engineering expert
• Includes plant control systems, and SCADA system
  for remote communications and control
• Other Facilities Electrical /IC
• Allowance of 5 to 15 of facility non-electrical
  costs, depending on power intensity of facility
• Includes connection to SCADA system

19
Property

• Site Acquisition
• Desalination Plant and other above ground
  facilities
• Based on 2009 communication with licensed real
  estate appraiser
• Residential 400,000 - 1,000,000/Acre
• Light Industrial 600,000 - 800,000/Acre
• Agricultural 3,000 - 40,000/Acre
• ROW Acquisition for Pipelines (Present Worth)
• Transportation Agency of Monterey County and
  private agricultural lands evaluated by licensed
  real estate appraiser

20
Allowances

• Electrical / IC
• Contractor OHP
• 18.5 except for RO Equipment at 10
• Contractor Mobilization/Demobilization
• Included in OHP. Added 1 for Desalination
  Plant only

21
Allowances (contd)

• Implementation
• Project Administration and Management,
  Engineering, Legal
• Design/Bid/Build Facilities Used 30 of base
  construction costs, based on experience,
  excluding costs through December 31, 2008.
• Design/Build Facility Used 20 of base
  construction costs
• Contingency
• Covers unanticipated changes in project scope or
  schedule due to unforeseen changed site
  conditions regulatory or institutional
  requirements, including mitigation implementation
  and permit compliance and acts of nature.
• 20, based on AACEI, for conceptual design
  stage of project development.

21
22
North Marina Capital Cost Estimate Summary ( 2009
)

• Off-site Feedwater/Brine 20M
• Desalination Plant 81M
• Desalinated Water Conveyance 38M
• Terminal Reservoir/ ASRPS 15M
• ASR System 10M
• Subtotal for Construction 164M
• Implementation Costs 42M
• Present Worth of Land/ROW Costs 5M
• Contingency Allowance 42M
• Total Capital Costs 253M
• Rounded to 250M

22
23
Accuracy of Estimate

• Cost estimating accuracy is typically keyed to
  project development stage
• North Marina Alternative between Class 3 and
  Class 4
• AACEI Class 3-Budget, 10-40 -10/20 to 10/30
• AACEI Class 4-Study, 1-15 -15/30 to 20/50
• Used -15/25
• Final North Marina Project capital costs could be
  in range of 210M to 310M in 2009 Dollars.

23
24
Operation Maintenance Costs
ML Moss Landing NM North Marina X Both
Sites OM Costs Avoided Include Energy,
Chemicals, Labor
25
Energy

• Energy Rate Schedules were selected considering
• Based on PGE Tariffs
• Load
• E-19 (lt 1000 kw)
• E-20 (gt 1000 kw)
• Grid Voltage
• Transmission Voltage
• Primary Voltage
• Secondary Voltage

26
Energy (contd)

• Unit Costs for Energy for each facility were
  developed considering
• Time of day (Peak, Partial Peak, Off-Peak)
• Season (Summer / Winter)
• Service Voltage
• Maximum Demand per Month
• Average Use per month
• Diurnal Load Profiles
• Energy Unit Costs 0.079 - 0.142 /kWh
• North Marina Desal Plant Unit Costs
• Winter 0.093 / kwh
• Summer 0.136 / kwh
• Highest Unit Cost is at remote pump stations

27
Chemicals

• Variable according to annual production
• Chemicals and dosages per DEIR Project
  Description
• Chemical costs obtained by 2009 quotation from
• national vendor
• Bulk delivery and storage

28
Labor

• Fixed, does not vary with annual production
• Operations labor categories and rates from CAW-
  Monterey
• Desalination plant staffing levels estimated on
  basis of two other desalination plants and
  consultation with industry experts

29
Repair and Replacement

• Assumed replacement of 15 of membranes every
  year starting in 2017 for North Marina Project
• Assumed RR for structures, buildings, and civil
  works at 1 of original cost, per year.
• Assumed RR for mechanical and electrical systems
  at 3 of original cost, per year.

30
OM Costs Avoided

• Project will reduce production and operations
  costs at
• Begonia WTP (BIRP) by 6,900 afy, 1.36M annual
  reduction
• Segunda PS, by 6,900 afy, 0.37M annual reduction
• Seaside Wells, by 2,200 afy, 0.28M annual
  reduction
• Datum used is current conditions
• Begonia WTP (BIRP) at 11,500 afy
• Seaside Wells at 3,700 afy
• Avoided costs were developed on basis of existing
  operational data, calculation of avoided power,
  and consistent (calculated) energy unit cost

31
North Marina ProjectOM Cost Estimate

• For 2021, in 2009 Dollars, at 10,900 AFY
• Desalination Plant 9.2M
• Desalinated Water Conveyance 0.5M
• ASR System 0.5M
• Total (gross) 10.2M
• Costs avoided ( 2.0M)
• Total (net) 8.2M

31
32

• End of Formal Presentation