HomeMy WebLinkAboutR-2006-159 Expenditure Authority - Wastewater Treatment Plant Improvements. f.
RESOLUTION NO. R-2006-159
A RESOLUTION giving the City manager authority for approving expenditures of budgeted
funds for Engineering services and construction of improvements for the
Wastewater Treatment plant (WWTP) and Collection System.
WHEREAS, the 2004 City of Yakima Wastewater Facility Plan identifies the
requirements by regulatory mandates, growth (capacity) issues, replacement of aging facilities,
and improved efficiencies that are going to be needed over the next 20 years; and
WHEREAS, Black & Veatch Corporation completed the Facility plan, Phase One Pre -
design, Phase One Final Design, Phase One Bid Phase Services, NPDES Permit Services and
Metals Studies, continues providing Construction services for Phase One implementation, and
began the Collection System Evaluation, as described in the Agreement Between the City of
Yakima and Black & Veatch Corporation made and entered into on April 23, 2003; and
WHEREAS, Council authorized execution of budgeted funds for Design Services and
Collection System Evaluation on 7/7/04. On 12/13/05 an amendment to the professional
services agreement with Black & Veatch Corporation was authorized by Council for
implementation of the Phase One WWTP Improvements; and
WHEREAS, with the addition of the Proposed Ultra Violet Disinfection System and
additional Human Machine Interface (HMI) Software Upgrades identified for the WWTP
processes, use of additional budgeted funding for professional engineering services is required
to complete the first construction phase of WWTP Improvements and HMI upgrades per the
Agreement with Black and Veatch Corporation; now therefore
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA:
The City Manager is authorized to approve all contracts, grant applications, and expenditures of
budgeted funds for Engineering services and construction of improvements for the Wastewater
Treatment Plant (WWTP) and Collection System and also to take all necessary and prudent
actions to implement the 2004 City of Yakima Wastewater Facility Plan
ADOPTED BY THE CITY COUNCIL this 7th day of November, 2006.
ATTEST:
Dave Edler, Mayor
For City Council Information
April 18, 2005
To: Honorable Mayor, City Council and City Manager
From: Max Linden, Wastewater Utility Engineer
Subject: Wastewater Facility Improvements
This memo will provide an update on Wastewater Facility Improvements and
justification for additional funding. The Wastewater division wishes to request
permission to submit an application for a $4,000,000 loan from PWTF for council
approval at the May 3rd 2005 City Council meeting.
Implementation of the adopted 2004 Wastewater Facility Plan is dependent on
development of a realistic and sustainable Capital Facilities Plan which takes into
account various internal sources of revenue such as rates, fees and connection
charges as well potential external sources such as grants and loans. The
implementation and fmancing program is based on analyses of the wastewater
collection and treatment systems, projected growth rates and recommended and
required improvements for sustaining growth and meeting regulatory requirements.
The Wastewater Facility Plan provides a general overview of past rates analyses,
financial policies of the City of Yakima's Wastewater Utility and an overview of
the revenue requirements associated with completion of the projects outlined
herein are provided. In addition, project implementation costs are evaluated and
potential revenue alternatives that may be available to the City are discussed.
A summary of recommended improvements to the Yakima Regional WWTP and
the collection system have been identified in section 12 of the 2004 Wastewater
Facility Plan. Improvements have been divided into near term (0-6 years), mid-
term (7-12 years) and long range (13-20 years) recommendations that are further
broken down into key treatment feature projects, other wastewater treatment
facilities projects and collection system improvements. Project prioritization were
determined based on relative need and regulatory requirements associated with
each.
Over the 20 -year planning horizon recommended improvements to the Wastewater
Treatment Facility include a variety of projects totaling an estimated $41 million in
regulatory, capacity upgrade, health and safety features and regular renewal and
replacement projects with approximately $31 million in improvements scheduled
" J
for the 0-6 year near-term capital improvement program. The 2004 Wastewater
Facility Plan identifies the improvements, estimates costs, relative schedules and
the primary reason for installation or upgrade. Indication of the reason for the
upgrade should be a primary determination in deciding the type of funding to be
utilized for each project. General speaking, upgrades that are mandated by
regulation are most suitable for loan and grant financing, while smaller projects
and regular renewal and replacements are most commonly financed from available
cash and rates. This does not, however, preclude the packaging of several related
improvements into funding applications that allow similar projects to be
accomplished simultaneously. The inclusion of a variety of projects into one
application also allows the more serious of the issues being addressed to help sell
less significant aspects of the overall project through the competitive processes.
Analysis of the treatment systems performed as part of the facility plan indicates
the need to provide redundancy to several operations within the treatment plant.
Redundancy is required to meet Washington State Department of Ecology criteria
for provision of backup facilities to major treatment processes to assure
compliance with the City's NPDES permit and associated rules and regulations.
The following areas, scheduled for the 0-6 near term planning horizon, have been
identified and prioritized in the planning process as the most critical facilities
requiring redundancy. These projects are included in the Series B bond proceeds
funding received in 2003.
• Centrifuge Dewatering in new solids handling building (Project 23) —
Currently only one of the two centrifuges is function for dewatering
biosolids and this requires extensive maintenance to continue operating. A
new centrifuge is required to maintain compliance when the older centrifuge
is out of service. The new centrifuge will be located in a new solids
handling building. The older centrifuge will be used for redundancy
requirements for dewatering and thickening.
• Solids Thickening (Projects 21 and 22) — The waste activated sludge
thickening process reduces the total volume sent to the digestion process,
and directly impacts regulatory compliance. Currently only one dissolved
air flotation thickener (DAFT) unit is in place to thicken secondary sludge.
The older centrifuge will also be used as a second thickening unit to meet
redundancy criteria.
• Standby Power Capacity Addition (Project 38) - The emergency power
system supplies a backup source of power to assure that minimum treatment
is provided during a power failure. The existing generator set was installed
in 1980 and at a minimum, requires a complete inspection/overhaul. An
additional generator set is required to operate the minimum treatment
process. This unit will be housed in the new blower building.
• New Blowers in New Blower Building (Project 7) — Existing VFDs that
operate the four 400 horsepower blowers are far less efficient and generate
more harmonic distortion on the electrical power system than newer
technology. The blowers and VFDs are all at the end of their useful life, are
difficult to find replacement parts for and require replacement. Construction
of a new structure to accommodate new blowers is recommended.
In addition, to redundancy projects the following projects, also scheduled for the 0-
6 near term planning horizon, have been identified as critical projects for renewal,
safety and efficiency of operations.
• Replace SCADA System (Project 39) — Major SCADA system components
will be replaced, including PLCs, computer hardware and software, HMI
software, and historical data logging software.
• IJV Disinfection (Project 40) — UV disinfection facilities will be installed to
replace chlorine disinfection, reducing safety and security concerns.
• New Grease Receiving, Facility, Replacement of Digester Gas Piping,
Valves and Flow Meters — The digester gas collection piping is over 20
years old and needs to be upsized.
The projects above, identified as part of the near term (0-6 yrs.) priority
improvements in the 2004 Wastewater Facility Plan, are being packaged as one
project. This package includes having our engineer upgrade the plants SCADA
system (currently under way), two pre -procurement bid packages to pre -purchase
blowers and a centrifuge (ready to go out for bid) and a construction bid package
planned to be advertised for bid in October of 2005. The total cost of this will be
approximately $13,796,000. (See highlighted projects on Table 3-4 Capital
Improvement Projects)
In 2003, the City of Yakima implemented a new rate structure to increase revenues
to the wastewater utility. Additional funding assistance for future projects comes
from the approximate $18 million in revenue bonds that were issued by the City in
2003. These bonds were divided into two distinctive series with approximately
$7.46 million in proceeds from Series A bonds being used to pay for the settlement
of previous litigation relating to odor control within the sewer system.
Approximately $10 million in proceeds from sale of Series B Bonds is being used
to fund a variety of projects and capital improvements involving the City's
wastewater treatment plant.
Projects dedicated to resolving issues related to regulatory requirements are often
financed by government administered grant and low interest loan financing
programs. In competitive financing programs such as Public Works Trust Fund,
Centennial Clean Water and State Revolving Fund programs, regulation mandated
projects tend to receive higher scores than renewal and replacement or growth
driven projects. Growth related system improvements are generally funded
through property assessments, connection charges and development fees. None of
the specific improvements mentioned above. are growth related only. Long term
financing strategies will include continuing to apply for grant and low interest
funding, where appropriate, and maintaining current and equitable connection
charges and fees so that growth can finance required system expansions.
The 2004 Wastewater Facility Plan presents a historical and projected budget for
the City of Yakima Wastewater Utility. This simplified budget overview is
intended to provide order of magnitude costs and assist the City in its on-going
decision making, project prioritization and budgeting. More detailed consideration
of available finds and revenue requirements occurs bi-annually in the City's
established rate review and cost-of-service analysis and periodic review and
adjustment of connections charges. As discussed previously the 2003 bond issue
provides a significant source of revenue ($10,000,000) for immediate
improvements to the wastewater treatment plant. The overall cost of this first
phase of (0-6 yr) priority projects is estimated to be $13,796,000. Another
$4,000,000 is needed to fund this work through 2008.
The Wastewater Division. can apply now for a $4,000,000 low interest loan
from the Public Works Trust Fund, PWTF, in May 2005, and make debt
payments without raising rates. The Table titled Wastewater System Debt
Service shows our existing debt service and coverage along with projected future
loans. The new loans would not add to our debt coverage, only to our debt service,
and in 2008, 2011, 2013, and 2015 existing loans and bonds will be paid for. With
the addition of the three project loans (shown on Table 3-3) our obligation to these
debts will only increase by approximately $200,000/yr. for three years, which can
be covered without raising rates, and then will decrease over the life of these loans.
After 2008 Long term financing strategies will include continuing to apply for
grant and low interest funding, where appropriate, and maintaining current and
equitable connection charges and fees so that growth can finance required system
expansions.
BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. /lo ''r
For Meeting Of 11/07/06
ITEM TITLE: - Request approval of a resolution giving the City manager authority for
approving expenditures of budgeted funds for Engineering services and
construction of improvements for the Wastewater Treatment plant (VVVVfP)
and Collection System.
SUBMITTED BY: Dave Zabell, ACM - Doug Mayo, WW Manager - Max Linden, Utility
Engineer
CONTACT PERSON/TELEPHONE: Max Linden/575-6077
SUMMARY EXPLANATION:
The 2004 City of Yakima Wastewater Facility Plan identifies the requirements by regulatory
mandates, growth (capacity) issues, replacement of aging facilities, and improved efficiencies
required over the next 20 years. The engineering consulting firm of Black & Veatch Corporation
provided NPDES Permit Services, began the Collection System Evaluation, completed a Metals
Study, Facility plan, the Pre -design, Final Design, Bid Phase Services, and continuing
construction services for the current mandated Phase One Wastewater Improvements as
described in the April 23, 2003 Agreement Between City of Yakima and Black and Veatch
Corporation for Professional Services.
(...continued on next page)
Resolution X Ordinance _ Other (Specify) to authorize use of budgeted funds for Phase One
WWTP Improvements
Contract -- Mail to (name and address):
Funding Source WW Facilities Project (478 Fund) Budgeted and WW Facilities Project (472
Fund) Budgeted
APPROVED FOR SUBMITTAL:
City Manager
STAFF RECOMMENDATION: Staff respectfully requests City Council approve the resolution.
BOARD/COMMISSION RECOMMENDATION:
COUNCIL ACTION: Resolution adopted. _Resolution R-2006-159
(...continued from front page.)
Council authorized use of budgeted funds for Design Services and Collection System
Evaluation on 7R/04. Since that approval, several other items requiring the services of Black &
Veatch were added to their Scope of Work. These included: design work for the Speedway
Interceptor, Risk Management Plan update, Odor Control Study, Chemical Feed Pilot Project,
SR 24 Permit Review, and SR 24 Monitoring Plan. Amendment 1 was authorized on 12/13/05
to include these and provide construction services for the current phase One WWTP
Improvements.
With the addition of the proposed Ultra Violet Disinfection System funded by a $2,300,000
Public Works Trust Fund Loan and needed Human Machine Interface (HMI) software upgrades,
additional contract budget authority is required to continue construction services and HMI
upgrades for the current construction phase of WWTP Improvements. It is estimated that the
services for the completion of construction and HMI software upgrades will be $600,000
Currently, the agreement between the City of Yakima and Black & Veatch Corporation for
professional services has authorized expenses for completing the mandated Facility Plan
($608,000), mandated NPDES permitting requirements for Collection System Infiltration and
Inflow Evaluation (400,000), required regulatory compliance evaluations and plans ($250,000),
Odor Evaluation and Survey ($70,000), Collection System Design ($450,000), WWTP Phase
One Design ($1,800,000) and WWTP Phase One Construction Services ($1,030,000) for a total
of $4,758,000. The additional $600,000 required to complete the current ongoing construction
work, will increase the total authorized budget for this agreement to $5,358,000.
The 478 Wastewater Facility Project Fund (project 2055) and 472 Wastewater Facility Project
Fund (project 2182) identified in the 2006 adopted budget and 2007 preliminary budget includes
appropriations to accommodate the expenditures required to complete the first portion of Phase
One improvements and Construction Services provided by Black & Veatch Corporation.
Additional engineering services provided under the agreement between the City of Yakima and
Black & Veatch Corporation for professional services, along with future construction of Phase
One WWTP improvements, will be funded as resources become available.