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Reference 30

Non- Academic Project Program Resource Planning Status Report

UAF Atkinson Power Plant Renewal Phase 3 – Project Change Request This project is a major Deferred Maintenance and Renewal of existing facilities and was initiated prior to acceptance of the Program Resource Planning process by the Regents. This project change request is the result cost savings realized by the UAF Facilities Technicians and product vendor incorporating a redesign of key components of the project. Milestone #0

Mission Area Analysis: (not required at time of project development) Date: N/A Statement of Need: (not required at time of project development) Date: N/A

Milestone #1

SAC Review: (not required) Date: N/A

Milestone #2 Preliminary Administrative Approval: Date: 11/08

Milestone #3 Statement of Requirements: (Developed in conjunction with the FPA) Date: 06/03/11

Milestone#4 Business and Financing Plan: Date: 06/03/11 Operating Budget Request Date: N/A Capital Budget Request: Date: FY12 Legislative Funding: FY12 DM&R Bonds Board Approval of FY13 Capital Budget Distribution: Date: 06/07/12

Milestone #5 Formal Project Approval: Date: 06/03/11 Schematic Design Approval (Phase 3): Date: 01/09/13

Milestone #6 Construction Started: Date: 04/13 Project Change Request #1 (Current action requested) Date: 09/26/13 Construction Completed: Date: ______ Beneficial Occupancy: Date: ______ Final Project Report: Date: ______

PCR Atkinson Power Plant Renewal Phase 3 Page 2 of 3

RATIONALE AND REASONING Background In 2006, UAF hired a consultant to perform a comprehensive study of the condition of the existing utility systems, including the Atkinson Power Plant. The study also evaluated the need for utility expansion to keep pace with projected campus growth. The funding to implement the total scope of work contained in the 2006 Utilities Development Plan will not be available in one appropriation; thus, the work will be done in a phased approach. Formal Project Approval by the Board of Regents was granted for $40.4M in June 2011. The purpose of the aforementioned approval was to provide overall Formal Project Approval for all phases. Subsequent Schematic Design Approvals will be obtained for each phase as funding is received each fiscal year. Previous Schematic Design Approval “The Chair of the Facilities and Land Management Committee approves the Schematic Design Approval request for the University of Alaska Fairbanks Atkinson Power Plant Renewal Phase 3 as presented in compliance with the campus master plan, and authorizes the University administration to complete construction bid documents to bid and award a contract within the approved budget, and to proceed to completion of project construction not to exceed a Total Project Cost of $1,900,000. This motion is effective January 9, 2013.” Project Scope This project replaces all of the Variable Frequency Drives (VFDs) in the Atkinson Power Plant. VFDs allow motors to be operated at less than 100 percent speed, which allows control of systems as well as energy savings. The work includes but is not limited to the replacement of Variable Frequency Drives (VFDs) currently installed on the following equipment: Boiler #4 FD fan Boiler feed pump #5 Domestic water pump Air cooled condenser #’s 3 & 4 R.O. Pump #’s 1 & 2 Variances The scope of work presented at Schematic Design Approval included replacement of all of the VFDs in the Atkinson Power plant including the electrical conductors from the VFDs to the individual motors with a specialized cable. The engineering team worked with the manufacturers and developed an alternative to replacing conductors with the specialized cables. The alternative involves installing reactors and filters in the VFDs. This change added about $50,000 to the cost of the VFDs but saved $800,000 in replacing new conduits and cables in a very congested facility. Another factor in the reduction of the SDA amount was the cost estimate. Although there is not a clear single item, the SDA cost estimate was higher than market costs for both the purchase of the VFDs and the bids for installation. Electrical costs have been volatile over the years and that factor led cost estimators to be conservative. The schedule has also changed. Although most of the work will be completed in 2013, the addition of VFDs for Boilers No. 1 and 2 has necessitated an overall extension of the project schedule. The cost of shutting the boilers down for repairs and modifications is about $25,000/day due to increased fuel costs.

PCR Atkinson Power Plant Renewal Phase 3 Page 3 of 3

The boilers are shut down for annual overhaul in April, by installing the VFDs during this regular shutdown in April 2014, there is a savings from timing both events at the same time. Total Project Cost and Funding Sources

Funding Title Fund/Org Account# Original Amount New Amount FY12 DM Bonds Series “Q” 514498-50216 $1,400,000 $1,100,000 FY14 Bond TBD $ 500,000 0 Total Project Cost $1,900,000 $1,100,000

Annual Program and Facility Cost Projections The project should result in lower maintenance and operations costs by virtue of having more reliable equipment in place.

Project Schedule

DESIGN Conceptual Design October 2006 Formal Project Approval June 2011 Schematic Design December 2012 Schematic Design Approval January 2013 Construction Documents January 2013

BID & AWARD Advertise and Bid March 2013 Construction Contract Award April 2013

CONSTRUCTION Start of Construction April 2013 Construction Complete June 2014 Date of Beneficial Occupancy June 2014 Warranty Period 1 year

Project Delivery Method Design – Bid – Build with UAF purchase of major equipment. Affirmation This project complies with Regents’ Policy and the campus master plan. Supporting Documents

One-page Project Budget Atkinson Renewal Overall Status

Approvals The level of approval required for PCR shall be based upon the estimated TPC as follows:

Changes with an estimated impact in excess of $1.0 million will require approval by the Board based on recommendations from the Facilities and Land Management Committee (F&LMC);

Changes with an estimated impact in excess of $0.4 million but not more than $1.0 million will require approval by the F&LMC.

The new policy language does not address approval levels between $250,000 - $400,000 for project change requests.

PCR Atkinson Power Plant Renewal Phase 3

UNIVERSITY OF ALASKA

Project Name: Atkinson Power Plant Renewal Phase 3MAU: UAF

Date: June 3, 2013Prepared by: Mike Ruckhaus

Project #: 2013019 BARN3Total GSF Affected by Project:PROJECT BUDGET SDA Budget Amended BudgetA. Professional Services Advance Planning, Program Development $100,000 Consultant: Design Services Consultant: Construction Phase Services $10,000 Consul: Extra Services (List:_____________________) Site Survey Soils Testing & Engineering Special Inspections $10,000 Plan Review Fees / Permits Other

Professional Services Subtotal $110,000 $10,000B. Construction General Construction Contract(s) $680,000 $274,000 Other Contractors (List:_______________________) Construction Contingency $134,900 $179,000

Construction Subtotal $814,900 $453,000 Construction Cost per GSF N/A N/AC. Building Completion Activity Equipment $740,000 $510,000 Fixtures Furnishings Signage not in construction contract Move-Out Costs Move-In Costs Art Other (Interim Space Needs or Temp Reloc. Costs) OIT Support Maintenance Operation Support

Building Completion Activity Subtotal $740,000 $510,000D. Owner Activities & Administrative Costs Project Plng, Staff Support $74,921 $82,705 Project Management $133,192 $43,785 Misc. Expenses: Advertising, Printing, Supplies, Etc.

Owner Activities & Administrative Costs Subtotal $208,113 $126,490E. Total Project Cost $1,873,013 $1,099,490 Total Project Cost per GSF N/A N/AF. Total Appropriation(s) $1,900,000 $1,100,000

Building: Atkinson PlantCampus: Fairbanks

Acct #(s): 514498-50213

Design was done under an earlier phase

Atkinson Heat and Power Plant Renewal Scope Page 1 of 7

Atkinson Heat and Power Plant Renewal Scope May 2013

The following table shows the items in their approximate order of priority to the operational mission and their status: Atkinson Renewal Items for FY11, FY12 & FY13 allocation of $5,492,700

Item Item needed

if new plant is

constructed

Cost Description Comments

Partial replace boiler tubes for Boilers 1&2 (Project: BAST – Complete)

No

$958,000 Replace superheater tubes (approximately 25% of the total tubes) which inspections have shown to be in the worst condition. Also perform ultrasonic testing on the remainder of the tubes and other parts to ascertain their condition.

Replace Boiler No. 4 air pre-heater (Project: BAPH4 Complete)

Yes

$183,000 A recent inspection has revealed that this heater is near failure. If it fails, boiler No. 4 will not be able to provide steam which significantly reduces the steam plant redundancy.

Additional domestic water aerator (Phase 1 (BARN1) – Complete)

Yes

$1,569,000

This item provides installation of a second parallel unit to enable extended shutdown of the existing tank and its internal components for inspection and repair. It requires a small addition to the building.

Add second deaerator tank (Phase 2 (BARN2) –Complete) Yes $674,000

Existing unit has been in service in excess of 40 years. Install new unit in parallel with existing. Partial emergency repairs were completed

Atkinson Heat and Power Plant Renewal Scope Page 2 of 7

in 2011 but replacement is needed.

Replace feedwater heater (Phase 2 (BARN2) –Complete) Yes

$250,000

Existing feedwater heater is approaching the end of its useful life and is a potential single point of failure.

Eliminate single points of failure in critical piping (partial scope) (Phase 2 (BARN2) –Complete) Yes $401,000

Eliminate single points of failure in critical piping: A large portion of the piping system is on the order of 40 years old.

Replace existing variable frequency drives (Phase 3 (BARN3) In Construction 0% complete

Yes

$1,100,000

Replace 25 year old variable frequency drives as parts are not available to repair

TOTAL $5,135,000 Atkinson Plant Renewal Items (FY14-17), in order of priority: Item

(Phases to be Determined) Item needed

if new plant is constructed

Cost Description Comments

Replace boiler tubes for Boilers 1&2

No

$11,475,000

Replace boiler tubes for Boilers 1&2: Existing units have been in service in excess of 40 years. Perform thorough NDE inspection of tubes. Replace as indicated. Rehabilitate existing mechanical components such as fans, coal elevator, stoker grates, ash removal, etc.

Atkinson Heat and Power Plant Renewal Scope Page 3 of 7

Modification of existing Ash Handling system

No $300k to

$600k

Add an enclosure to prevent ash from escaping out the open door. Dust collection will be required

Continuous emissions monitoring for Boiler No. 4

Yes

$425,000

Continuous Emissions Monitoring for Boiler No. 4: Existing air permit includes 10% capacity constraint for Boiler #4 that would be lifted with installation of continuous monitoring.

Replacement of Boiler Feed Pump No. 5

Yes $300,000

A recent failure of this pump requires its replacement

Replace Existing Pressure Reducing valves (PRV)

Yes $500,000

The PRV’s are marginally functional and if they fail, it will result in a reduced capacity to heat campus

Improve domestic water taste (membrane filtration)

Yes

$425,000

Improve Domestic water taste (membrane filtration): This measure would install point-of-use membrane filtration units in key locations to reduce consumer concern about taste. Improvements needed for regulatory compliance with disinfection byproducts. Scope and cost is being determined.

Atkinson Heat and Power Plant Renewal Scope Page 4 of 7

Raw water pumping station re-build

Yes $50,000

Re-build the piping in the Geist Well Houses.

Central air compressor replacement

Yes

$250,000 .

Eliminate single points of failure in condensate system

Yes $337,000

Provide bypass for pump header to deaerator, bypass for North Utilidor meter, redundant receiver

Replace Chilled water Head tank

Yes

$350,000

Replacement of the tank will significantly reduce pumping costs. This project also includes modifications to chilled water piping in Duckering to allow for reduced head in the system

Eliminate single points of failure in critical piping (partial scope) Yes $648,000

Eliminate single points of failure in critical piping: A large portion of the piping system is on the order of 40 years old

Replace Steam and condensate lines between Lathrop and MBS Yes

($2,000,000)

Construct new Utilidor between Lathrop Hall and MBS. Provided new steam, condensate, and water lines.

Not in the original list of projects at FPA

Utilidor ventilation

Yes

$425,000

Installation of fire rated door assemblies at the plant/utilidor access points and certain locations at campus buildings has eliminated natural ventilation in large portions of the utilidor system, causing a large amount of condensation on exposed steel and significant corrosion. This measure would

Atkinson Heat and Power Plant Renewal Scope Page 5 of 7

install ventilation shafts in sealed areas of the utilidor system.

Replace obsolete control system

Yes $2,155,000

This is an aging plant control system (1980's vintage). This system runs the bulk of the steam generation facility. Controllers are becoming difficult to obtain due to product obsolescence.

Expansion of ash silo No

$4,000,000

The new coal boiler project would eliminate the need for this project.

Rail spur maintenance

No $250,000

Because the University's rail spur is used as the primary conduit for coal, it has been in near continuous service for over 40 years and is in need of maintenance.

Reconstruct feedwater pumping station

No $750,000

This measure would remove the abandoned 1960's vintage feedwater pumping station and replace it with new technology multistage pumps.

Additional water storage tank for redundancy

Yes

$2,500,000

Additional water storage tank for redundancy: This is a reliability and redundancy measure that would allow isolation and drainage of the existing tank for periodic cleaning, inspection and repair.

Increase RO capacity

Yes $350,000

Reverse Osmosis is used in water treatment for make-up water in the steam generation process.

Replace existing demineralizer Yes $25,000 Demineralized water is used as make up in the

Atkinson Heat and Power Plant Renewal Scope Page 6 of 7

steam generation process. Existing unit is approaching useful design life. The new demineralizer could supply the new power plant.

Back-up cooling water

No $350,000

This is a reliability measure to provide redundancy in a system that is critical to operation of power generation. Existing single wall unit is in excess of design life.

Convert Boiler No. 3 to dual fuel (natural gas and oil)

Yes $750,000

Add current natural gas burner technology to Unit #3 to allow operation with less expensive fuel source. Operation with natural gas may have a positive impact on the University's air quality permit application.

Replace thinwall steel chilled water piping on Lower Campus

Yes

$1,750,000

Replace thin wall steel chilled water piping on Lower Campus: Piping in portions of the existing chilled water distribution system on lower campus was constructed of a thin wall material subject to corrosion and failure.

Additional condenser capacity No

$1,500,000 Additional condensers will allow the steam turbine to increase its output in the summer.

Replace steam and condensate lines to U-Park Yes $5,000,000 The pipes are near the end of their useful life.

New water plant controls Yes

$200,000 Existing controls are not supported by the manufacturer and are at the end of their life.

Pave Atkinson parking lot for dust control (air permit issue)

Yes $200,000

Pave Atkinson parking lot for dust control (air permit issue): Efficient Operation of a utility

Atkinson Heat and Power Plant Renewal Scope Page 7 of 7

plant of this nature requires relatively good vehicle access. During wet conditions, access to the backside of the plant is restricted.

TOTAL $36,372,500 PROJECT TOTAL (FY11/12/13 work plus FY14-17

work)

$40,400,000