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O Board Materials 09/18/2019 MASSACHUSETTS WATER RESOURCES AUTHORITY Charlestown Navy Yard 100 First Avenue, Building 39 Boston, MA 02129 Frederick A. Laskey Telephone: (617) 242-6000 Executive Director Fax: (617) 788-4899 TTY: (617) 788-4971 WATER POLICY & OVERSIGHT COMMITTEE MEETING to be held on Chair: B. Pefia Wednesday, September 18, 2019 Vice-Chair: C. Cook Committee Members: Location: 100 First Avenue, 2nd Floor J. Carroll J. Foti Charlestown Navy Yard A. Pappastergion Boston, MA 02129 H. Vitale J. Walsh J. Wolowicz Time: 10:00 a.m. AGENDA A. Information 1. Update on Quabbin Cemetery (verbal report) 8. Approvals 1. Battery Storage Demonstration Project at Brattle Court Pump Station and Chelsea Facility - Utility Tariff Optimization Service and Site License Agreement: Stem, Inc. C. Contract Awards 1. Design and Engineering Services During Construction for Quinapoxet Dam · Removal: Milone & MacBroom, Inc. Contract 7347 2. Section 56 Replacement Saugus River Crossing, Design and Engineering Services During Construction: AECOM Technical Services, Inc., Contract 7454 D. Contract Amendments/Change Orders 1. Wachusett Aqueduct Pumping Station Design, Construction Administration and Resident Inspection Services: Stantec Consulting Services, Inc., Contract 7156, Amendment 5 W(i) 8/18/19 MASSACHUSETTSWATER RESOURCES AUTHORITY Meeting of the Water Policy and Oversight Committee July 17, 2019 A meeting of the Water Policy and Oversight Committee was held on July 17, 2019 at the Authority headquarters in Charlestown. Committee Chair Pena presided. Present from the Board were Messrs. Carroll, Cotter, Flanagan, Pappastergion, Vitale and Walsh. Ms. Wolowicz and Messrs. Cook and Foti were absent. Among those present from the Authority staff were Frederick Laskey, Carolyn Francisco Murphy, David Coppes, Carolyn Fiore, John Colbert, Corinne Barrett, Jeffrey Bina and Kristin MacDougall. The meeting was called to order at 12:08 p.m. Contract Awards * Section 22 Rehabilitation Alternative Analysis and Environmental Permitting: Black & Veatch, Contract 7155 There was brief discussion. The Committee recommended approval (ref. W A.1 ). Contract Amendments/Change Orders * Bellevue 2 and Turkey Hill Water Tank Painting Project: Worldwide Industries Corp., Contract 7634, Change Order 7 Staff made a presentation. There were questions and answers. The Committee recommended approval (ref. W B.1 ). The meeting adjourned at 12:17 p.m. * Committee recommendation approved by the Board on July 17, 2019 WB.1 IV A.1 9/18/19 STAFF SUMMARY TO: Board ofDirectors � _--7 () _f_ -------- FROM: Frederick A. Laskey, Executive Director -� .,. v-0 DATE: September 18, 2019 SUBJECT: Battery Storage System at the Brattle Court Pumping Station and the Chelsea Facility Utility - Tariff Optimization Service and Site License Agreement Stem, Inc. COMMITTEE: Water Policy & Oversight __ INFORMATION X VOTE ��� Director ofAdministration Carolyn M. Fiore, Deputy Chief Operating Officer Michael E. McDonald, Energy Manager Denise K. Breiteneicher, Prog. Mgr. Energy and Env. Manager Preparer/Title ChiefOperating Officer RECOMMENDATION: To authorize the Executive Director, on behalf of the Authority, to execute a Utility Tariff Optimization Service and Site License Agreement with Stem, Inc. for the operation and maintenance of a battery storage system at the Brattle Court Pumping Station and the Chelsea Facility for an amount not to exceed $300,100. DISCUSSION: The Massachusetts Department of Public Utilities approved the implementation of demand reduction demonstration project offerings and associated budget for Eversource Energy in December 2017. The plan includes four types ofdemand reduction demonstration projects forthe commercial and industrial sector including battery storage, thermal storage, softwareand controls, and active demand response. Eversource's demonstration project includes data collection intended to provide information regarding projects that can be scaled-up forinclusion in future peak demand reduction programs. Eversource approached MWRA about installing battery storage demonstration projects at facilities with high demand charges. MWRA had expressed interest to Eversource about piloting battery storage previously, in order to reduce high demand costs at certain facilities and to test the use of batteries as a potential tool to increase the resiliency at MWRA's facilities in the future. This project aligns with Governor Baker's Energy Storage Initiative that set a target of200 MWh's ofenergy storage to be achieved by January 1, 2020. The Brattle Court Pumping Station and the Chelsea Facility were chosen as demonstration sites specificallyfor their high daily electrical demand charges, consistency ofdemand, and availability of space for the batteries. In FY19, MWRA paid $198,400 for demand charges at Brattle Court and $114,200 for demand charges for the Chelsea Facility. The batteries will store energy at night when power is less expensive, and then release it during the daily peak, when costs are the highest. The batteries will be supplied at no cost to MWRA as part of the demonstration program (the approximate cost is $500,000 per battery) and will be in place forten years. The company that will own and operate the batteries and the artificialintelligence that determines when the batteries operate is Stem, Inc. Eversource selected Stem, Inc. through a competitive bid process. MWRA will be required to pay an annual fee for maintenance of the batteries and optimization of the software that instructs the batteries when to operate corresponding with the daily peaks. The table below shows the expected total savings, net savings, and total service fee for both facilities over the life of the ten-year agreement. Total Demand Savings Service Fee Net Savings to MWRA $713,500 $300,100 $413,400 MWRA will be guaranteed a minimum savings amount annually that would cover the annual maintenance fee. At the end of the ten years, Stem Inc. is required to remove the batteries. Eversource benefits fromthe demonstration at a water pumping station and officebuilding because the information it collects from this project is replicable at other similar facilities throughout its service area. The mechanism for contracting with Stem, Inc. forthe Eversource battery storage demonstration program is a Utility Tariff Optimization Service and Site License Agreement. MWRA staffwill be preparing the sites, including constructing the concrete pads and running the conduits and wires for the batteries. Stem, Inc. will deliver, operate and maintain the batteries throughout the term of the agreement. BUDGET/FISCAL IMPACT: Eversource and Stem expect the net savings to the MWRA, after the service fee has been paid, to be approximately $413,400 total for both facilities over the life of the contract. MWRA will pay about $30,000 annually for both facilities for maintenance and operation of the battery and the softwareused to operate the batteries. However, the project has a guaranteed minimum savings of no less than the cost of the maintenance fee for the batteries; therefore, the net savings of the demonstration project will always be positive. MBE/WBEPARTICIPATION: There are no MBE/WBE participation requirements established for this contract due to the limited opportunities forsubcontracting. 2 W.L.'I IV B.1 9/18/19 STAFF SUMMARY TO: Board of Directors FROM: Frederick A. Laskey, Executive Director '--;2_;J,,, � DATE: September 18, 2019 SUBJECT: Design and Engineering Services During Construction for Q mapoxet Dam Removal Milone & MacBroom, Inc. Contract 734 7 COMMITTEE: Water Policy & Oversight INFORMATION _K_ VOTE M1. /l./J ,4. K'Iitff{I�Gillen�J..L­ John J. Gregoire, Program Manager, Reservoir Operations Beth Card, Director, Env. and Regulatory Affairs Preparer/Title RECOMMENDATION: To approve the recommendation of the Consultant Selection Committee to award Contract 7347, Design and Engineering Services During Construction for Quinapoxet Dam Removal, to Milone & MacBroom, Inc., and to authorize the Executive Director, on behalf of the Authority, to execute said contract in an amount not to exceed $425,442.07 for a contract term of 24 months from the Notice to Proceed. BACKGROUND: The Quinapoxet Dam 1s an earthen embankment and stone masonry horseshoe dam that spans the Quinapoxet River from bank to bank. The Quinapoxet Dam was built in 1905 when the Wachusett Reservoir was constructed as part of an effort to straighten and widen the riverbed to drop sediment before entering the reservoir. The Dam was intended to prevent upcutting of the channel. The dam is owned by the Commonwealth of Massachusetts and is under the care and control of the DCR Division of Water Supply Protection, which is funded by MWRA. The Department of Fish and Game, Division of Ecological Restoration (DER) has documented naturally reproducing coldwater fishesin the Quinapoxet River and Wachusett Reservoir, and has done analysis on what the potential would be if habitat above the dam were accessible. DER has quantified the habitat available for salmon in the Stillwater (now available) and the Quinapoxet (available after dam removal). Dam removal could increase the salmon population and establish a highly valued fishery. The Quinapoxet Dam is in need of repair and will require continued maintenance and regulatory inspection into the future fora dam of questionable service to the present-day reservoir. When the reservoir was created, this dam was completed as part of the lower river channel widening and collectively served to mitigate sediment impact
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