July 2009July 20091

Coastal Water ProjectCoastal Water Project

Capital and O&M Cost DescriptionCapital and O&M Cost Description

North Marina Alternative -North Marina Alternative -Desalination Plant SiteDesalination Plant Site

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IntroductionIntroduction

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

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

North Marina Project (cont’d)

Cost Estimate History Capital Costs Annual O&M 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)

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

North Marina Cost Estimates (Cont’d)

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 O&M costs estimated at meeting 15,200 afy total CAW system

demand plus 800 afy to CSIP Assumed power from grid instead of self-generation

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Capital Cost Estimate Capital Cost Estimate

Capital Cost DescriptionPipeline

PumpStation Well

ProcessEquipment

Building/Structure

CivilWorks Tank

Elec.I&C Property

Allowance (% of total)

Construction Costs                    

Off-Site Feedwater & Brine Facilities X X NM ML    NM   NM   X 

Desalination Plant    X   X X X X X   X

Desalinated Water Conveyance X X     X X   X    X

Terminal Reservoir & ASR PS X X     X X X  X    X

ASR System X   X   X X   X    X

Implementation Costs                   X

ROW Easement & Land Acquisition                 X  

Contingency Allowance                   X

ML = Moss LandingNM = North MarinaX = Both Sites

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PipelinesPipelines

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

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Pipelines (cont’d)Pipelines (cont’d)

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 (OH&P)• 18.5% of all above costs

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Pump StationsPump 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 OH&P Building based on $110/ SF, includes contractor OH&P Wet wells based on $700/ CY of concrete

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ASR WellsASR 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, I&C Back flush Water Reclamation Facility

Estimates from ASR Systems Contractor OH&P included in above

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Slant WellsSlant Wells

Test Slant Well & 5 Additional Production Slant Wells $13.8 million, Including contractor OH&P 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, I&C

• Electrical Costs Include additional $250,000 for upgraded service to site

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Process EquipmentProcess 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, I&C, and Site Work• Estimated Separately

Contractor OH&P• 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

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Buildings & StructuresBuildings & 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

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Civil WorksCivil 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

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Civil Works (cont’d)Civil Works (cont’d)

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 OH&P

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Tanks (Reservoirs)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 OH&P Earthwork, Site work, and Piping estimated separately Based on analysis of two similar recently constructed

projects

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Electrical, Instrumentation &Control (I&C)Electrical, Instrumentation &Control (I&C)

Desalination Plant Electrical /I&C 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 /I&C Allowance of 5 to 15% of facility non-electrical costs,

depending on power intensity of facility• Includes connection to SCADA system

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PropertyProperty

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

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AllowancesAllowances

Electrical / I&C Contractor OH&P

18.5% except for RO Equipment at 10%

Contractor Mobilization/Demobilization Included in OH&P. Added 1% for Desalination Plant only

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Allowances (cont’d)Allowances (cont’d)

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.

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North Marina Capital Cost Estimate North Marina Capital Cost Estimate Summary ( 2009 $)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

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Accuracy of EstimateAccuracy 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.

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Operation & Maintenance CostsOperation & Maintenance Costs

O&M Cost DescriptionEnergy Chemicals Labor

Membrane Replacement

GeneralR&R

O&M CostsAvoided

Facilities            

Off-Site Feedwater & Brine Facilities X       NM  

Desalination Plant X X X X X  

Desalinated Water Pumping X       X  

Terminal Reservoir & ASR PS X       X  

ASR Wells X X X   X  

Valley Greens PS X       X  

Begonia Iron Removal Plant X X X     X

Segunda PS X   X     X

Seaside Wells           X

General System     X      

ML = Moss LandingNM = North MarinaX = Both SitesO&M Costs Avoided Include: Energy, Chemicals, & Labor

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EnergyEnergy

Energy Rate Schedules were selected considering: Based on PG&E Tariffs Load

• E-19 (< 1000 kw)

• E-20 (> 1000 kw)

Grid Voltage• Transmission Voltage

• Primary Voltage

• Secondary Voltage

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Energy (cont’d)Energy (cont’d)

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

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ChemicalsChemicals

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

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LaborLabor

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

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Repair and ReplacementRepair and Replacement

Assumed replacement of 15% of membranes every year starting in 2017 for North Marina Project

Assumed R&R for structures, buildings, and civil works at 1% of original cost, per year.

Assumed R&R for mechanical and electrical systems at 3% of original cost, per year.

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O&M Costs AvoidedO&M 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

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North Marina ProjectNorth Marina ProjectO&M Cost EstimateO&M 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

End of Formal Presentation