Central Arizona Project

Capital Project Program Review

Ted Cooke September 18, 2014

FAP Agenda Number 4. Attachment 2.

9/18/2014 FAP Capital Projects Review 2

Project Steering Committee (PSC)

o The PSC is composed of a cross-functional team of SMT, managers and supervisors from throughout CAP, supported by subject matter experts and project managers

o The purpose of the PSC is to identify, evaluate, prioritize, plan and oversee CAP capital projects and to manage the CAP capital budget within approved spending levels and available resources o All capital projects must support the CAP Strategic Plan

and have a business rationale o Considerations include cost, system reliability, health and

safety, capacity requirements and return on investment o All projects are evaluated from a “triple bottom line”

perspective and impact on operations

9/18/2014 FAP Capital Projects Review 3

Project Steering Committee

o The PSC reviews, approves and manages capital projects through four phases, each with its own required documentation: o Concept – problem statement (most projects are initiated

by Maintenance, Engineering, Information Technology or Power Programs, but anyone in CAP can submit a Project Concept)

o Assessment – alternatives identified and analyzed o Planning – detailed schedule and resource requirements

for selected alternative (projects that pass this phase are eligible to be included in the next budget)

o Implementation – day-to-day work managed by CAP project managers and status reviewed quarterly by PSC

9/18/2014 FAP Capital Projects Review 4

Project Steering Committee

o PSC budget responsibility is a “matrix” – the budget must be managed in aggregate annually and for individual projects o The PSC must manage the overall annual capital budget

(including projects and equipment) within Board-approved guidelines (no more than 102% of the total budget in any given year) or request additional spending authority from the Board

o Mandatory project-level controls for individual projects require re-evaluation and approval by the PSC if total spending for a project over its lifetime is estimated to exceed previously approved levels

o The smoothed “Big R” rate component that funds capital projects is another control point for capital spending

9/18/2014 FAP Capital Projects Review 5

Project Steering Committee

PSC Process

PSC Monthly Meetings – Quarterly Financial Review

9/18/2014 FAP Capital Projects Review 6

Central Arizona Project

Capital Project Program Report

Ryan Johnson September 18, 2014

Agenda

o Condition-Based Monitoring Project (610317) o Chiller (HVAC) Replacement at Black Mountain &

Snyder Hill (610413) o Site Drainage Correction at Headquarters (610416) o Annunciator Panel Replacement at Pumping Plants

(610419) o Discharge Valve Replacement at Black Mountain &

Snyder Hill (610445) o Water Blast Area Relocation at Headquarters

(610477)

2

Condition-Based Monitoring (CBM) - 610317

Project Scope o Vibration analysis o Partial discharge analysis o Motor analysis o 109 pump units at 15 plants o Reliability Engineering monitor pump and motor performance Design Phase o CAP In-House design o Approx. 150 Electrical drawing modifications per plant o 2 plants complete, 4 plants in 2014, 9 plants in 2015

Status o Construction Contractor: Corbins Electric o Construction for Hassayamapa & Little Harquahala Pumping Plants complete o Construction for Salt Gila, Brady, Picacho for Fall Outage (2014) o Construction for remaining eight (8) for 2015 and 2016 o 17% complete o Close-out October 2016

3

Condition-Based Monitoring (CBM) - 610317

CBM HMI Screen

Sensor Control Panel Wiring

Vibration sensors on motor shaft

(IN $000s) Pre-2014 2014 2015 2016 Totals Variance Budget 984.6 2,189.0 2,199.3 477.0 5,849.9 73.50 1.26% Actuals + Forecast 1,233.6 1,913.8 2,209.7 419.3 5,776.4

4

Chiller (HVAC) Replacement at Black Mountain & Snyder Hill - 610413

Project Scope o Replacement of existing evaporative coolers with package Heating Ventilation & Air

Conditioning (HVAC) Units o Upgrading the HVAC supervisory control hardware and software. Design Phase o Design Consultant: Bridgers & Paxton o Notice to Proceed: February 2013 o Design Complete: July 2013 o Design Contract: $172,354 o Remove old evaporative coolers; install 75 Ton & 50 Ton HVAC units w/ duct systems Status o Construction-phase work completed April 2014 o Completed Supply & Return Duct work to new Air Handlers o Completed HVAC Controls interface o WebCTRL Accessible control from CAP Headquarters o 100% complete

5

Chiller (HVAC) Replacement at Black Mountain & Snyder Hill - 610413

New HVAC Units & Ducting

New HVAC Automated Logic Control System

(IN $000s) Pre-2014 2014 Totals Variance Budget 743.0 1,190.7 1,933.7 (351.9) -18.20% Actuals + Forecast 862.2 1,423.4 2,285.6

New Interior Ducting Installation

6

Project Scope o Site drainage features to capture and control on-site and off-site flows o Basins, swales, catch basins, drain pipe, and channels to meet regulatory

requirements o West Entrance development, parking lot asphalt upgrades, and security road

improvements Design Phase o Design Consultant: Kimley-Horn & Associates o Notice to Proceed: April 2014 o Design Completed: September 2014 o Design Contract: $121,699 Status o Drainage features and details design complete o Public bid solicitation advertised o Public Bid Opening September 23, 2014 o Construction Contract will be brought to the Board for approval October 2, 2014 o 15% complete o Close-out May 2015

Site Drainage Correction at Headquarters - 610416

7

Existing Basin E West of Weld Shop

Offsite Flows Leaving Our Site to the South

Flooded Warehouse Access

(IN $000s) Pre-2014 2014 2015 Totals Variance Budget 92.7 894.8 398.9 1,386.4 (34.7) -2.5% Actuals + Forecast 80.3 534.5 806.3 1,421.1

8

Site Drainage Correction at Headquarters - 610416

Annunciator Panel Replacement at Pumping Plants- 610419 Project Scope o Provides touch-screen monitors with software to provide a Human Machine

Interface (HMI) for monitoring and addressing plant operations o Extensive removal of annunciator alarm wiring and rewiring to a new personal

computer system Design Phase o Design Consultant: Black & Veatch o Notice to Proceed: June 2012 o Design Complete: December 2013 o Design Contract: $380,763 Status o In-House Construction Execution: CAP's Instrumentation and Control Group (I&C) o Start Date: January 7, 2013 o New HMI installation complete at SGL, HSY, LHQ, BSH, BRD, PIC, RED o CAP I&C Crew will mobilize and commence work at MWP in September 2014 o 60% complete o Close-out January 2016

9

Existing Annunciation System & New Frames for HMI Screens

New HMI Screens Mounted on Existing Annunciation Cabinets

(IN $000s) Pre-2014 2014 2015 Totals Variance Budget 2,373.0 1,093.2 423.1 3,889.3 (282.4) -7.26% Actuals + Forecast 2,520.3 1,070.5 580.9 4,171.7

10

Annunciator Panel Replacement at Pumping Plants- 610419

Discharge Valve Replacement at Black Mountain & Snyder Hill- 610445

Project Scope o Replace valves due to leaks, non-performance, and obsolescence o System hydraulic and transient modeling & new valve performance criteria o Replace suction/discharge/check valves at five pump units at Black Mountain

Pumping Plant and nine units at Snyder Hill Design Phase o CAP In-House Design o Pipeline hydraulic analysis for catastrophic pressure changes o Replacement of 42 valves o Design Complete: August 2014

Status o Construction Contractor: PCL o Award Date: June 2014 o Contract Cost: $813,744 o Witnessed valve manufacturing & testing complete o Valves for Black Mountain shipped o Outage planning and prep in progress; outage start October 2014 o 30% complete o Close-out March 2015

11

Discharge Valve Replacement at Black Mountain & Snyder Hill- 610445

(IN $000s) Pre-2014 2014 2015 Totals Variance Budget - 2,912.0 451.9 3,363.9 681.8 20.3% Actuals + Forecast 146.8 2,080.8 454.5 2,682.1

Black Mountain Pump Units

Butterfly Valves in Testing

Check Valve in Testing

High Performance Butterfly Valve

12

Water Blast Area Relocation at Headquarters - 610477

Project Scope o Addresses three projects at Headquarters:

Permanent and efficient water blast area w/ extended cart rails and containment structure

New concrete slab for stop log storage Extended driveway access to diesel fueling station for large vehicles/trailers

Design Phase o CAP In-House Design o Approx. 400 cubic yards of concrete work o Design Complete: June 2014 Status o Construction Contractor: Dorn o Award Date: August 2014 o Contract Cost: $269,000 o Public bid opening o Pre-Construction Meeting held and Safety Plan accepted o Construction contractor site mobilization mid-September o 25% complete o Close-out February 2015

13

Concrete stop-log storage

Water blast area & containment

Access extension at diesel fueling station

(IN $000s) 2014 2015 Totals Variance Budget 505.4 30.6 536.0 (21.7) -4.1% Actuals + Forecast 526.5 31.2 557.7

14

Water Blast Area Relocation at Headquarters - 610477