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HomeMy WebLinkAbout07/19/2011 19A Public Works Trust Fund Cosntruction Loan Application - 20 yr (Funding Resolution) � w / ° ( BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. l9 A For Meeting of July 19, 2011 ITEM TITLE: Resolution Authorizing the City Manager to sign and submit an application for a Public Works Trust Fund Loan for Design and Construction of the Extension of the City's Industrial Waste Conveyance System SUBMITTED BY: Scott Schafer, Wastewater Manager Dean Smith, Utility Project Manager Chris Waarvick, Director of Public Works CONTACT PERSON/TELEPHONE: Dean Smith /575 -6077 SUMMARY EXPLANATION: The City of Yakima Wastewater Division recently was presented with an opportunity to apply for a Public Works Trust Fund (PWTF) construction loan, which is designated for non -road, street and bridge projects. This application would allow an expedited extension of the Industrial waste conveyance system to serve current and future industrial waste customers in the northern area of our city between SR12 and Fruitvale Blvd. The amount of the loan application is for $2,000,000 at a rate of 0.5% interest and a term of 20 years. This project is a portion of a larger effort that separates high strength fruit processing waste streams from domestic sewage lines. Separating these waste streams allows the City to more efficiently and effectively treat wastewater from our community in a special, dedicated bio- reactor which is currently being designed and scheduled to be constructed by the end of 2012. Building increased capacity at the treatment plant using current treatment approaches would cost significantly more. This process will help stabilize our rates and provide development opportunities and associated economic benefits by attracting industries to locate along this industrial waste line in areas designated for industrial uses. Resolution X Ordinance _ Other (Specify) PWTF Application Contract Mail to (name and address): Phone: Funding Source: WW Facilities Proiect (478 Fund) Budgeted APPROVED FOR SUBMITTAL: City Manager STAFF RECOMMENDATION: Staff respectfully requests City Council approve the attached resolution authorizing the Interim City Manager to sign the PWTF Loan Application. BOARD /COMMISSION RECOMMENDATION: Council Committees have been briefed on the bio- reactor treatment concept discussed above. COUNCIL ACTION: ow Page 1 RESOLUTION NO. R -2011- A RESOLUTION authorizing the Interim City Manager to make application for a Public Works Trust Fund Construction Loan (PWTF) in the amount of $2,000,000 at 0 5% interest for 20 years for the extension of the industrial waste conveyance system to serve existing -_and- future--industrial customers between SR12 and Fruitvale Blvd. WHEREAS, the City of Yakima owns and operates wastewater collection and treatment facilities in accord with applicable federal, state and local regulations; and WHEREAS, innovative approaches to environmental compliance are important in seeking and implementing lower cost solutions, and WHEREAS, conceptual and pre- design development, detailed design, implementation, bid and construction - related services along with other engineering assistance will be required to construct innovative solutions to environmental requirements; and WHEREAS, the attached PWTF application seeks to expedite the extension of a dedicated industrial conveyance system to allow strong industrial waste streams to be isolated from the domestic sewers for more efficient and effective treatment; and WHEREAS, this conveyance system addition works with the planned bio- reactor project to increase existing treatment plant capacity off - setting approximately $10,000,000 of capital expenditures for infrastructure at the treatment plant, and provides economic incentives for industries to develop in our community, therefore BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: The Interim City Manager is hereby authorized to make application for a Public Works Trust Fund loan in the amount of $2,000,000 at 0.5% interest and term of 20 years to finance the extension of the industrial waste line to serve industrial customers between SR 12 and Fruitvale Blvd. ADOPTED BY THE CITY COUNCIL this 19 day of July, 2011. ATTEST: Micah Cawley, Mayor City Clerk Washington State Public Works Board Public Works Trust Fund Construction Loan Application FUNDS AVAILABLE ONLY UPON GOVERNOR AND 2012 LEGISLATIVE APPROVAL FOR THE 2013 FISCAL YEAR STARTING: JULY 1,2012 • Counties, Cities, and Towns Eligible • Water Districts • Sewer Districts Jurisdictions • Public Utility Districts • Other Districts (excluding Ports and School Districts) • Domestic Water Systems Eligible • Sanitary Sewer Systems • Storm Water Systems Systems • Solid Waste and Recycling Systems NOT ELIGIBLE: Roads, streets, and bridges How to Apply • Hardcopy application (this Word file) — submit this form, also found at www.pwb.wa.gov/ Due Date: Postmarked or Maximum Amount per Hardcopy Delivered on or before Jurisdiction per Biennium Application Submittals JULY 21 2011 Submit one signed original $ 1 0 000 000 the al an application in d a CD with 6 P M PST Microsoft applii Word format Mail /Ship /Hand Deliver to: Public Works Board 1101 Plum Street South East PO Box 42525 Olympia WA 98504 -2525 360.725.3150 For more information on the PWTF loan programs and for the PWTF Application Guidelines, please visit the Public Works Board's website at www.pwb.wa. APPLICATION REQUIREMENTS /CHECKLIST Items that will cause the application to be rejected ❑ If the applicant municipality is planning under the Growth Management Act (GMA) RCW 43.155.070, has compliance, as of July 21, 2011, with GMA been verified? X Yes ❑ No n Don't Know Verify with your Planning Department ❑ Has the Applicant Certification form been read and signed by the appropriate authority? Attach original signed document. This must be signed in order for the application to be accepted for review. ❑ Has the Preparer Certification form been read and signed by the appropriate authority? Attach original signed document. This must be signed in order for the application to be accepted for review. ❑ Has the applicant adopted a policy to reduce greenhouse gas emissions? X Yes No SEE GUIDELINES FOR DETAILS TITLE OF POLICY: DATE OF ADOPTION: ATTACH THE POLICY: X Yes F I No IF NO, FORWARD BY NO LATER THAN 6PM AUGUST 4, 2011 Items /Actions to ensure a complete application LI Have you read the PWTF Application Guidelines? This document contains all the necessary information to assist you in applying for a PWTF loan. To download the current PWTF Application Guidelines go to www.pwb.wa.qov. ❑ Have all questions applicable to your type of system been answered? Unanswered questions receive no points. Submitted information will be verified by Public Works Board staff. ❑ Have you verified the accuracy of the Project Cost sum and the Project Funding sum? These figures must match and accurately reflect the sum of the costs and the sum of the funding. ❑ Is all relevant documentation (i.e., proof of other funding sources, regulatory orders, moratoriums, etc) attached? ❑ Has the application been reviewed by someone other than the person who completed the application? ❑ Have you made a copy, including all attachments, of the final, signed application package for your records? ❑ Applications and modifications (additions, removals, and substitutions) are allowed until: 6PM PST, July 21, 2011 After that time, no further changes will be accepted. TABLE OF CONTENTS SECTION 1: GENERAL APPLICANT INFORMATION 1 PRIMARY SYSTEM AFFECTED BY THIS PROJECT (check only one) 1 GENERAL APPLICANT INFORMATION 1 LEGISLATIVELY REQUIRED INFORMATION 2 MEASURES OF FISCAL CAPACITY 2 RATE BASED SYSTEMS ONLY 3 SECTION 2: PROJECT INFORMATION 4 PROJECT DESCRIPTION 4 PROJECT'S SCOPE OF WORK 4 REQUIRED PERMITS (LOCAL, STATE, AND FEDERAL) 4 PROJECT SCHEDULE 6 PROJECT COSTS 6 PROJECT FUNDING 8 SECTION 3: PROJECT NEED AND SOLUTION 10 PROJECT CATEGORY 11 GENERAL PROJECT NEED QUESTIONS 12 SYSTEM - SPECIFIC QUESTIONS 13 NEED AND SOLUTION NARRATIVE STATEMENT 16 SECTION 4: LOCAL MANAGEMENT EFFORT 18 LOCAL MANAGEMENT EFFORT (In the last 5 years) 18 STEWARDSHIP OF WASHINGTON'S NATURAL RESOURCES (RCW 70.235.070) (In last 12 months)19 APPLICANT CERTIFICATION 20 CERTIFICATION BY PREPARER OF APPLICATION 21 SECTION 1: GENERAL APPLICANT INFORMATION Public Works Trust Fund Construction Loan Application PRIMARY SYSTEM AFFECTED BY THIS PROJECT (check only one) Domestic X Sanitary Sewer Storm Solid Waste/ Water Water Recycling GENERAL APPLICANT INFORMATION 1.1 Applicant City of Yakima Wastewater Division (Legal Name) Municipal 1.2 Corporation 0 8 5 7 http: / /www.pwb.wa.gov /macg listinq.asp Agency # (MCAG) 1.3 Federal Tax ID # 9 1- 6 0 0 1 2 9 3 1.4 Statewide Vendor S W V 0 0 j 7 1 2 2 - 0 3 Number and Suffix http : / /ofm.wa.gov /isd /vendors.asp Administrative office — 129 North 2 Street, Yakima, WA 98901 Street Address Mailing Address — 129 North 2 Street 1.5 Of different from street) City j Yakima State WA Zip 9 8 9 0 1- 1.6 County 1 .7 Legislative District 14th Congressional District 4th http: / /apps.leq.wa. qov /DistrictFinder /Default.aspx http: / /apps.leq.wa. qov /DistrictFinder /Default:asox Client's Contact Dean Smith j Person Title Utility Project Manager Mailing Address — 2220 E Viola 11.8 City Yakima State WA Zip 9 8 9 0 1- Telephone 509 249 - 6814 Email dsmith @ci.yakima.wa.us 1.9 Project Title Industrial Sewer Main am Extensions 1.10 PWTF Loan Request $2,000,000 1.11 Total Project Cost $3,300,000 Fiscal Year 2013 Public Works Trust Fund Loan Application Page 1 LEGISLATIVELY REQUIRED INFORMATION: 1.12 Does applicant jurisdiction (cities and counties only) have guidelines to process development permit requests? AND Does applicant jurisdiction abide by the guidelines set for processing permits? The guidelines should include: x ❑ ❑ •The length of time between permit application submission and permit decision Yes No N/A •The information necessary to make a complete permit application •A written explanation for denying a permit application, if applicable Review section 1(2), Chapter 231, 2007 Laws of 2007: http: / /www.leg.wa.gov /pub /billinfo/ 2007 08 /Pdf /Bills/ Session %20Law %202007 /5508. SL. pdf (Not a scored question, but the Board may take this into consideration during deliberation of the construction loan list as a balancing factor.) MEASURES OF FISCAL CAPACITY The next series of questions is intended to establish the level of the applicant's fiscal capacity to incur debt. 1.13 Has the applicant experienced severe fiscal distress resulting from a natural disaster (e.g., Governor declared emergency) or emergency public works need in the past 12 months? If Yes, describe below. ❑ Yes X No (Not a scored question, but the Board may take this into consideration during deliberation of the construction loan list as a balancing factor.) The event(s) ; NA When occurred Fiscal distress caused '1.14 Describe short- and long -term fiscal management strategies, which the applicant jurisdiction uses to maximize its ability to finance the system described in this application. The response must address the primary system identified at the top of this application. (Max 1 point) Rate based. Sewer rates are set by ordinance and are regularly adjusted by City Council to support the Capital Improvement Program for the Wastewater Department. Connection fees and annual rates of future and existing Industrial customers will collected to cover operations and maintenance costs. Fiscal Year 2013 Public Works Trust Fund Loan Application Page 2 RATE BASED SYSTEMS ONLY THE RESPONSE MUST ADDRESS THE PRIMARY SYSTEM IDENTIFIED AT THE TOP OF THE APPLICATION. This information will assist the Board in evaluating the applicant system's financial capacity to incur debt. Please use system specific financial data to complete this section. This information may be found in the applicant's balance sheet as submitted to the State Auditor's Office (www.sao.wa.gov) The data will be used to calculate the ratio of debt, cash, and capital per capita 1.15 Number of people in Number of people served by the Percentage of people in the system jurisdiction: 98,000 system in 2010. 118,000 affected by this project 100% Total operating revenue for the system in 2010. $16,441,799 I Total operating expenses for the system in 2010. $14,262,083 Total outstanding debt for the, system in 2010. $22,443,590 Cash and cash equivalents (deposits and all cash investments including restricted assets) for the system in 2010. $12,957,888 Land and capital assets, net of depreciation (construction in progress, building, machinery and equipment, infrastructure, and other $73,553,388 improvements) for the system in 2010. (For those using Asset Management, not depreciation, enter annual value.) THE RESPONSE MUST ADDRESS THE PRIMARY SYSTEM IDENTIFIED AT THE TOP OF THE APPLICATION. This information will assist the Board in evaluating the applicant system's source of revenue The data will be used to calculate the percent of monthly household income dedicated to utility services. 1.16 Year Rate List the average monthly rate per Equivalent 2010 $38.38 Residential Unit (ERU) 2009 $37.54 2008 $36.42 2007 $36.32 2006 $35.92 If rates have not changed over the last five years, why NA not? 1 .171 What will be the estimated average residential customer's monthly rate $40.34 upon project completion? (Not a scored question. Response is used to aid in the determination of Affordability Index (Al). See guidelines for more information about the Al.) j Fiscal Year 2013 Public Works Trust Fund Loan Application Page 3 • SECTION 2: PROJECT INFORMATION PROJECT DESCRIPTION 2.1 In 150 words or less, please describe the project to be completed. (Not scored) Isolate existing and future industrial discharges for more efficient and effective treatment which will result in keeping rates down and higher level of treatment to protect the environment, specifically the Yakima River. This project will also enable the City to increase the usage of the Industrial Waste Bioreactor to a year round operation, which will enhance biogas production for beneficial use to provide heat for process needs, including a biosolids dryer which will produce a Class A biosolid from the sludge collected in the wastewater treatment plant. The Class A sludge is a recognized fertilizer product which will be marketed commercially. PROJECT'S SCOPE OF WORK 2.2 Describe in detail all the activities required to complete this project. This should include only the contract deliverables, e.g., number of feet and size of pipe to be laid, etc. The activities listed here will be incorporated into the loan contract should this project be selected for funding. Do not use this section to explain the problem. The activities listed here must correspond with the 1) project schedule, 2) project costs, and 3) project funding. (Maximum of 4,000 characters including letters, spaces, and punctuation - 1 page with 1 inch margins and 61 lines is approximately 4,000 characters. SEE GUIDELINES) (Not scored. Used as reference material in conjunction with schedule, costs, funding, and _permitting.) Project includes 3 portions of the Industrial Sewer Main to be extended as follows: • Madison Avenue Industrial Sewer Main — 4 Ave to Fruitvale Blvd.: This portion includes extending the existing Industrial Sewer Main with 9,800 LF of 12" pipe, 500 LF of 8" pipe, 500 LF of 6" pipe, associated manholes, boring for railroad crossing, and affected road restoration. Total estimated cost: $550,000. • H Street Industrial Sewer Force - main — 3 Avenue to 7 Street: This portion includes extending the existing Industrial Sewer Main with 4,600 LF of 10" force -mail, associated cleanouts and manhole, boring for railroad crossing, and affected road restoration. Total estimated cost: $2,400,000. • Noel Canning Industrial Sewer Main — Nob Hill Blvd. to Arlington St.: This portion includes extending the existing Industrial Sewer Main with 1,350 LF of 12" pipe, associated manholes, and affected road restoration. Total estimated cost: $350,000. Refer to the attached map identifying end of existing IW line in proximity to vacant land which can potentially be developed for industrial purposes. REQUIRED PERMITS (LOCAL, STATE, AND FEDERAL) 1 2.3 List permits required for the proposed project and indicate status of each permit (e.g., applied for, pending, issued, etc.) If no permits are required, explain why not. Needs to correspond with Question 4.1 Readiness -to- Proceed. Attach additional pages if more than five (5) permits are needed for the project. For assistance with permitting requirements, contact the Office of Regulatory Assistance or go to http: / /www.ora.wa.gov. (Required Permits is not scored, but will be cross - referenced with Readiness -to- Proceed and may impact ' scoring associated with Readiness -to- Proceed.) Permit Expected Date Submitted Expected Date Issued or Status Received 1. Railroad 1 Half 2012 1 Half 2012 Not Started 2. Stormwater 2nd Half 2011 2 " Half 2011 Not Started 3. Building Half 2011 2nd Half 2011 Not Started Fiscal Year 2013 Public Works Trust Fund Loan Application Page 4 4. 5. If no permits are required, please explain why not. Fiscal Year 2013 Public Works Trust Fund Loan Application Page 5 PROJECT SCHEDULE 2.4 Indicate the month and year when the activities were or will be completed. Schedule should clearly correspond to Question 4.1 Readiness -to- Proceed in the Local Management Effort section. (Project Schedule is not scored, but will be cross- referenced with Readiness -to- Proceed and may impact scorin • associated with Readiness -to- Proceed.) Activity Current Status % Complete Completion Date (Mo /Yr) Engineering Report In Progress 10% 3/2012 Cultural and Historical Resources Review N/A (Section 106 or Executive Order 05-05) Environmental Review Not Started 0% 3/2012 Land /Right - of - Way Acquisition Not Started 0% 7/2012 Permits Not Started 0% 7/2012 Public Involvement/Information Not Started 0% 10/2012 Bid Documents Not Started 0% 10/2012 Award Construction Contract Not Started 0% 11/2012 Construction Start Not Started 0% 11/2012 Construction Complete Not Started 0% 12/2013 Project in Use Not Started 0% 12/2013 Investment Grade Efficiency Audit (if applicable): N/A Other: Other: PROJECT COSTS 2.5 1 The Total Estimated Project Cost must equal the Total Project Funding in Question 2.6. ; The Project Costs table will become a part of the loan contract, should this project be approved for funding. (Project Costs is not scored, but will be cross - referenced with Readiness -to- Proceed and may impact scoring associated with Readiness -to- Proceed.) Cost Category Amount Engineering Report $100,000 Cultural and Historical Resources Review (Section 106 or Executive Order 05 -05) $0 Environmental Review $0 Land /Right -of -Way Acquisition $0 Permits $100,000 Public Involvement/Information $0 Bid Documents $500,000 Construction $2,250,000 Other Fees (Sales or Use Taxes) $0 Contingency (15 %) $350,000 Investment Grade Efficiency Audit (if applicable): $0 The EO 05 -05 requires recipients of state funds to consult with interested parties (i.e., Department of Archaeology and Historic Preservation, and Indian Tribes) prior to starting project construction. For PWTF construction loans, this consultation should take place as early as possible, in order to avoid delays in starting the project construction. If you have questions regarding this process, please contact Stephen Dunk at (360) 725 -3157 or email him at Stephen.Dunk @commerce.wa.gov. Fiscal Year 2013 Public Works Trust Fund Loan Application Page 6 Other: $ Other: $ TOTAL ESTIMATED PROJECT COST $3,300,000 Fiscal Year 2013 Public Works Trust Fund Loan Application Page 7 . PROJECT FUNDING 2.6 The Total Project Funding must equal the Total Estimated Project Cost in Question 2.5. Construction applicants must have local matching funds unless applicants have an Affordability Index of greater than 2.01% (see guidelines). The minimum local match for those with an Affordability Index of 2% or less is 5% of the total project funding. Refer to the PWTF Application Guidelines for more information on Affordability Index criteria. List the local matching funds in the Loans and Local Revenue sections below. Please state the status of the project's funding sources as follows: • Funds are Planned for if they are found in a formally adopted Capital Facilities Plan. • Funds are Applied for if a formal application has been submitted to a funding source, and the funding source considers that application or funding request as having been submitted (attach notification from funder that application has been received). • Funds are considered Awarded if a formal notice of approval for the funds is in place from the funding source (attach letter from funder or contract number). Local revenue must be in an approved budget to be considered in -hand. The Project Funding table will become a part of the loan contract, should this project be approved for funding. (Project Funding is not scored but will be checked for accuracy and cross - referenced with Readiness-to-Proceed. Status (Planned, Contract/ Applied for, Reference Type of Funding Identify Source Amount Awarded, etc.) Number Grants (State /Federal Agency or Organization) - Non Match Grant #1 - - -- - - - -_- Grant #2 $ Grant #3 $ Total Grants $ Prior PWTF PreConstruction Loans - Non Match Non -Match Loan #1 $ Non -Match Loan #2 $ Total Prior PWTF PreConstruction Loans $ Loans (State, Federal, Private Agency or Organization) - Local Match This PWTF Request Public Works Board $2,000,000 Proposed Other Loan #1 $ Other Loan #2 $ Total Loans $ Local Revenue (Rates, General Fund, Levies, Reserves, Assessments, ULID, LID, etc.) - Local Match Local Revenue #1 Wastewater Fund $1,300,000 Local Revenue #2 $ Local Revenue #3 _ $ Total Local Revenue $ Other Funds Other Funds #1 $ Total Other Funds $ TOTAL PROJECT FUNDING $3,300,000 2 If federal funds are included in the project- funding package, the project is subject to the federal Section 106 Cultural Historic Requirements. If you have questions regarding this process, please contact Stephen Dunk at (360) 725 -3157 or email him at Stephen.Dunk@commerce.wa.gov. Fiscal Year 2013 Public Works Trust Fund Loan Application Page 8 2.7 Are there any constraints on the identified funding sources in Question 2.6 Project Funding'? If yes, please explain. (Not ❑ Yes X No scored) 2,8 Please describe what attempts have been made to secure resources for funding this project other than applying for this PWTF loan (e.g., applied for other grants and loans, issued bonds, etc.). Please be specific. (Not scored) • Attempt Description Date Outcome None project no attempts have been N p made, please explain why not Fiscal Year 2013 Public Works Trust Fund Loan Application Page 9 SECTION 3: PROJECT NEED AND SOLUTION This section includes a series of questions related to the need for the project and the proposed solution to the problem. Have thorough and complete responses. Attach any verifying information if necessary to clarify the degree of the problem (i.e., regulatory orders, negotiated letters of agreement, etc.). This is the applicant's opportunity to state the problem and its impact on the community. The information below states the Program's priorities, which are used to recommend projects for funding. • The program priority in which they fall, • Need assessment, • How well the situation is documented, and • How well the proposed solution addresses the problem. 1. Public health and safety 2. Environmental health Program 3. System performance Priorities: (Repair /Replacement 4. Growth / Economic Development SEVERE • Project is to fix systems that have failed, are in imminent SITUATION danger of failing, and /or are currently out of regulatory —or — compliance (under an active regulatory order); • An economic opportunity has presented itself provided that CHANCE the local government improves infrastructure to enable the OPPORTUNITY opportunity. • The project is being done to meet emerging regulatory Assessing requirements and /or the project is being done to bring a non - Need: MODERATE compliant (but not under regulatory order) system up to existing standards; • Local government is improving the local business climate for future business expansion • Project is necessary for the repair or replacement (end of POTENTIAL/ lifecycle) PREVENTATIVE • Project is being done to enable potential opportunities for growth and /or economic development SEVERE • Court orders SITUATION Official regulatory orders • — — • Negotiated agreement with an external agency OPPORTUNITY CHANCE • A letter of commitment/intent from a business Supporting External agency is driving the project/timeline • Documentation: • Project specific formal studies and /or reports (either from an MODERATE internal or external source) • A letter of interest from a business _ POTENTIAL/ • Internal monitoring PREVENTATIVE • Awareness of a problem SEVERE SITUATION • Solution clearly solves the problem — — • Solution clearly meets the need Proposed CHANCE p OPPORTUNITY Solution • Solution does not solve the entire problem or fully address MODERATE the need POTENTIAL/ • Solution does not meet the problem or the need PREVENTATIVE Fiscal Year 2013 Public Works Trust Fund Loan Application Page 10 PROJECT CATEGORY • 3.1 For the applicant's primary system, as selected at the top of this application, identify the sub - category that is most affected by the proposed project. Check only one. (Max 8 points; the Board may take this into consideration during deliberation of the construction loan list as a balancing factor.) 8 points 6 points 4 points 2 points 1 point 1 point 1 point 1 point Domestic Water. Treatment Primary Secondary Storage or Transmission Distribution Telemetry or Conservation Supply or Supply or Reservoir Equipment or Other Source Source 8 points 6 points 4 points 2 points 1 point 1 point Sanitary ❑ X ❑ ❑ ❑ ❑ Sewer Treatment/ Interceptor or Pump Collector Telemetry or Conservation Reclamation Trunk Line Lift Station Equipment or Other 23 points 6 points 4 points 2 points 1 point Storm I 1 ❑ Ti ❑ ❑ Water Treatment Storage or Interceptor or Collector Other Detention Trunk Line 8 points 6 points 4 points 2 points 1 point Solid ❑ 1 n ❑ ❑ ❑ Waste/ Remedial Final Transfer Waste Other Recycling Action Disposal Station Reduction or Recycling Fiscal Year 2013 Public Works Trust Fund Loan Application Page 11 . GENERAL PROJECT NEED QUESTIONS The answers to Questions 3.2 through 3.7 must relate to the primary system as identified at the top of the application Be thorough and complete when responding 3. Howold ° a fi r e the components What are the comp p onent ' What is the condition of the system being corrected by the project? materials and what are the y components, which are being corrected by made of? the project? Example: 40 years old Example: asbestos cement Example: Deteriorating: they crumble when pipes flushed for routine maintenance. NA 3,3 What are the impacts the existing situation has, or will have, on the system's operation and expenses, if this project is not completed? NA 3,4 What are the impacts the existing situation has, or will have, on the environment and /or endangered species, if this project is not completed? NA 3.5 j Is this project being done in partnership with any other organizations /agencies? If Yes, please identify the partner(s) and describe the roles of each partner. See Guidelines for details. www.pwb.wa.gov /FORMS.HTM ❑ Yes X No (The Board may take this into consideration during deliberation of the construction loan list as a balancing factor.) PARTNER ROLE 3.6 Is this project being done to comply with emerging /maintaining /anticipating X Yes ❑ No re•ulator re•uirements or economic o••ortunities? If es, 'lease describe. By separating the industrial waste flows from the domestic sewer, the wastewater treatment plant will gain capacity and save -$10,000,000 in future capital improvement projects since treating industrial waste with other domestic wastewater is not as efficient or effective. Increasing capacity will extend regulatory requirements to expand the WWTP to treat these wastes. This project will provide economic opportunities for growth and jobs by attracting new businesses to locate along the City's industrial waste line. Additionally, the City will enhance gas production and production of a Class A Biosolid which both provide a beneficial use. A reduction in power consumption, hauling costs and associated greenhouse gasses will also be a resulting benefit to the City and the environment. 3,7 Have any other measures /activities been undertaken to address the problem /situation /opportunity? Ell Yes X No If Yes, please describe. If No, explain why not? Presently only one industry is hooked up to the Industrial Waste Line which has only seasonal flows. A project is currently in design to install an industrial waste bioreactor to treat this waste separately. This new bioreactor will open up opportunities to hood additional industrial customers up to this new treatment process which is scheduled to be installed in 2012. Fiscal Year 2013 Public Works Trust Fund Loan Application Page 12 SYSTEM - SPECIFIC QUESTIONS • Please answer only those questions that relate to the primary system as selected at the top of the application Domestic Water Projects ONLY (in the last five years) 3.8 What is the current status of the Red Yellow Blue Green applicant's operating permit? http:// www.doh.wa.gov /ehp /dw /sentry.ht n ❑ ❑ ❑ in 3,9 Does the applicant have sufficient water rights for the project? If no, explain the ,- status of the situation including a time Yes ❑ No when the water rights will be acquired. 3.10 Is the applicant taking over a failing water system? ❑ Yes ❑ No (The Board may take this into Identify system: Date taken over: ❑ N/A consideration during deliberation of the construction loan list as a balancing factor.) 3.11 Has the system had any boil water ❑ orders? If yes, indicate when, for how El Yes No long, and how (or if) the issue was Date(s): Duration(s): corrected. 3.12 Have there been any connection moratoriums? If yes, indicate when, for El Yes ❑ No how long, and how (or if) the moratorium Date(s): Duration(s): was lifted. more there been m than ° 3.13 oet an10 /o unaccounted for water loss? If yes, please describe the current situation ❑ Yes ❑ No including whether or not the water loss has been stopped or decreased. Does the system have a bilateral 3.14 j compliance order from Dept of ❑ Yes ❑ No Health? ATTACH A COPY Fiscal Year 2013 Public Works Trust Fund Loan Application Page 13 Sanitary Sewer /Storm Water Projects (in the last five years) 3.15 Is the applicant currently meeting National Pollutant Discharge Elimination X Yes ❑ No System (NPDES) permit and /or State Waste Discharge Permit (SWDP) limits? 3.16 Has the applicant had violation(s) of Li Yes X No NPDES and /or SWDP permit(s)? If yes, . indicate the type of violation, when it Violation(s): Date(s): occurred, and how (or if) it was resolved. 3.17 Has the applicant had any Combined Sewer Overflows (CSO)? If yes, indicate El Yes X No the type of violation, when it occurred, Violation(s): Date(s): Volume(s): the volume of the violation, and how (or if) it was resolved. _ 3.18 Has the applicant's system caused any environmental degradation (i.e., shellfish bed closures, water temperature increase, 303(d) list water body, etc.)? If ❑ Yes X No yes, indicate the type of degradation, when it occurred, and how (or if) it was resolved. 3.19 Has the applicant's system had hookup ❑ Yes X No moratoriums'? If yes, indicate when for how long, and how (or if) the moratorium Date(s): Duration(s): was lifted. Fiscal Year 2013 Public Works Trust Fund Loan Application Page 14 Solid Waste /Recycling Projects ONLY (in the last five years) 3.20 Has the applicant's system caused negative impacts on ground water? If yes, please explain the impact and, if resolved, what was done to solve ❑ Yes ❑ No the problem. 3.21 Is the applicant's system currently under a consent decree or any other order'? If yes, please identify the consent decree(s) and /or order(s) and if ❑ Yes ❑ No lifted, what was done to lift the decree(s)/order(s). 3,22 Has the applicant's system caused any environmental degradation (i.e., shellfish bed closures, water temperature increase, 303(d) list water Yes body, ground water, etc.)? If yes, indicate the type of degradation, when El No it occurred, and how or if) it was resolved. 3.23 Is the solid waste or recycling facility consistent with, and necessary for, the implementation of local government's adopted comprehensive solid ❑ Yes ❑ No waste management plan? If no, please clarify. Fiscal Year 2013 Public Works Trust Fund Loan Application Page 15 NEED AND SOLUTION NARRATIVE STATEMENT 13,24 Please include a Problem- Solution - Result narrative about the problem being solved. This is the applicant's opportunity to state the problem or possibility, its impact on the community, and the benefits to be achieved through this project. Attach relevant documents (i.e., regulatory orders, negotiated letter of agreements, resolutions, moratoriums, etc.) to clarify the degree of the problem or opportunity. The project need will be evaluated on: • Clarity of the need, including whether it is substantiated by data and documentation • A comparison of the relative hardship or possibility and the frequency of the identified need • The level of urgency required to address the need. Please use a maximum of 4,000 characters in each response box: Problem, Solution, and Result (including letters, spaces, and punctuation). 1 page with 1 -inch margins and 61 lines is approximately 4,000 characters. SEE GUIDELINES Problem /Opportunity: Please describe the problem, or opportunity, facing the community. Currently, industrial wastewater flows from Del Monte Foods are processed along with the domestic wastewater. These flows have a high sugar content and require a high amount of aeration and digester capacity, taking up the capacity of the wastewater treatment plant to treat the domestic wastewater. Additionally, Del Monte is only in operation a few months out of the year, requiring the City to reserve plant capacity for these flows. Even though this existing Industrial wastewater main currently only serves Del Monte, it extends significantly farther to the North, near some existing industrial customers with similar waste streams and areas of vacant land designated by the City for industrial uses. A project has already been initiated to install a bioreactor to treat this industrial waste stream separately from the domestic flows. This will open up more capacity for both domestic and additional industrial flows. Extending the existing industrial wastewater main to serve other customers will enhance growth and provide a more efficient and effective treatment of this industrial waste. Additional industries will lengthen the period of operation of the bioreactor, increasing the operational efficiencies further. Solution: Please describe the solution proposed to address the Problem or develop the Opportunity. Several areas have been identified to extend the industrial wastewater line in order to serve existing and /or potential industrial customers. The end of the existing industrial wastewater main is located near an area of town with over 150 acres of vacant land and an empty 513,000 square foot building (refer to attached map which identifies these areas). This area is primarily zoned for industrial uses. Extending the existing industrial wastewater line opens up industrial development opportunities for the City of Yakima, brings in jobs, and improves the economy coupled with allowing the City to capture and treat existing industrial users separate from the domestic sewer. Result: Please describe the results or benefits anticipated with the proposed Solution. Extending this line allows the industrial wastewater to be treated in a more economical manner and in a more effective way since it will not be diluted with domestic sewage. It also eliminates some of the potential operational and odor problems which commonly occur when a high strength waste is combined with a domestic sewage. Additionally, this development will not use the domestic wastewater treatment capacity of Yakima's treatment plant. Therefore, the domestic growth potential of the City will also be increased. Therefore, this project provides both an environmental and economic benefit. Treatment will be Fiscal Year 2013 Public Works Trust Fund Loan Application Page 16 improved through improving the quality of the Yakima river. The carbon footprint will be reduced through lower power consumption and beneficial use of the biogas and biosolids in a more sustainable manner. Economically it will help keep rates down, provide opportunities for industry and jobs in the Yakima area. Fiscal Year 2013 Public Works Trust Fund Loan Application Page 17 SECTION 4: LOCAL MANAGEMENT EFFORT Local Management Effort responses are system specific and should be based on the primary system identified at the top of the application. READINESS - TO - PROCEED 4.1 All responses are based on "at the time of application." If the applicant is not required to do a % completed particular task, list N/A in "% completed at time of application" box and explain why the task is not at time of required. In order to receive points for a task marked "N /A," an explanation must be included in application the box below. (or N /A) Applicant certifies that the status of engineering and design is complete. (Max 5 points) Name and license number of certified engineer assigned to the project: 5% Name: HLA License #: Applicant certifies that all applicable permits are in hand (Max 4 points) 0 % Applicant certifies that bid documents are ready (Max 4 points) 0 % Applicant certifies that right -of- way /easement for project is acquired (Max 3 points) 0% Applicant certifies that cultural and historic and environmental reviews are complete. Please attach verification that consultation with both Department of Archeological and Historic 0% Preservation (DAHP) and concerned tribe(s) has been completed. SEE GUIDELINES (Max 3 points) If "N /A" is listed for any of the above tasks explain why the activity is not required. * These items must match the project's Scope of Work as identified in Question 2.2 in this application, as well as the Project Schedule (Question 2.4). LOCAL MANAGEMENT EFFORT (In the last 5 years) 4.2 • What is the applicant's process for establishing the project system's maintenance schedule? • How frequently is the system's maintenance schedule reviewed and updated? Give two specific examples of maintenance or operations activities performed on this system. If unable to • ive two exam • les from the • rior five ears, 'lease ex •lain wh not. Max 1 • oint The City employs an 18 person collection system crew who routinely clean, inspect, and maintain all the sewer lines within the city. The cleaning frequency is based upon time, condition assessment and historical performance. Problem area lines area given higher priority and put on a more frequent cleaning and inspection schedule. Maintenance/ Operations Activity Example 1: Maintenance/ Operations Activity Example 2: 4.3 List two distinct and separate capital improvements, other than this project, made to the system. If unable to give two examples from the prior five years, please explain why not. (Max 1 point) Capital Improvements Industrial Bioreactor project which is currently in design Example 1: Capital Improvements Installation of new blowers and UV disinfection system Example 2: Fiscal Year 2013 Public Works Trust Fund Loan Application Page 18 4.4 • Describe the planning and public involvement activities performed that identify and /or prioritize local public works maintenance and capital needs for the applicant system. • Give two specific examples of planning activities performed on this system in the last five years. If unable to do so, please explain why not. (Max 1 point) The City uses and updates their planning documents regularly and includes public hearings and council approval of the wastewater capital improvement budget. Planning Activity Yakima Urban Area Comprehensive Plan which includes the wastewater Example 1: division was completed in July 2010. The facility plan we are currently working off was originally developed in Planning Activity 2004 and has been updated or amended for specific projects in 2005 and Example 2: 2011. A comprehensive sewer plan is currently in process and scheduled to be completed in 2012. STEWARDSHIP OF WASHINGTON'S NATURAL RESOURCES (RCW 70.235.070) (In last 12 months) 14.5 During the last 12 month period, what activities have been done on the: 1. Jurisdiction level to conserve Washington state's natural resources'? 2. System level to conserve Washington state's natural resources? If nothing has been done, please explain why not. SEE GUIDELINES FOR EXAMPLES (Max 3 points) What aspect of this project will result in the conservation of Washington state's natural resources? (e.g., metering the system; reusing methane gas for energy creation; planting trees to offset carbon emissions, etc.) This may be a contractually obligated item. See below. Jurisdiction level Participation with Yakima County on levee set back project to increase flood conservation activity plain and fish habitat. Example 1: System level Phosphorus reduction through the installation of a struvite system which conservation activity incorporated into commercial fertilizers. Project also identified as power Example 2: saving project through Pacific Power (Design is complete. Bidding scheduled for August 2011.) Project level Aeration basin mixer installation for power reduction due to reduced conservation activity aeration needs. Project will also reduce nutrients discharged to the Yakima Example 3: River. NOTE! In order to receive the point for the Project level conservation activity, applicant must be willing to have that response included in the 2013 Construction Loan Contract as a contractually obligated requirement. Do you agree to this requirement: XYes ❑ No Fiscal Year 2013 Public Works Trust Fund Loan Application Page 19 APPLICANT CERTIFICATION WHEREAS, City of Yakima (name of local government) is applying to the Washington State Public Works Trust Fund program for a low- interest loan for an eligible project; and WHEREAS, RCW 43.155.070 requires that applicants planning under RCW 36.70A.040 must have adopted comprehensive plans in conformance with the requirements of chapter 36.70A RCW, and must have adopted development regulations in conformance with the requirements of chapter 36.70A ROW; and WHEREAS, RCW 70.95 requires a comprehensive Solid Waste Management plan be adopted by the city or county; and WHEREAS, RCW 43.155.070(10) requires that solid waste or recycling facility is consistent with and necessary to implement the comprehensive solid waste management plan adopted by the city or county under chapter 70.95 RCW. WHEREAS, the applicant certifies that it has a currently adopted plan for each and every one of the systems it owns and operates and that these plans fully conform to the specifics within this application; and WHEREAS, RCW 43.155.070 requires that county and city applicants must have adopted the local optional one - quarter of one percent Real Estate Excise Tax, as described in Chapter 82.46 ROW; and WHEREAS, the applicant states that their Capital Facility Plan is consistent with the Comprehensive Land Use Plan of the jurisdiction in which they provide service; and WHEREAS, the local governing body has approved submission of this application for a Public Works Trust Fund loan; and WHEREAS the applicant certifies that if they have permitting authority (Counties and Cities) that they have developed and are adhering to guidelines regarding their permitting process for those applying for development permits consistent with section 1(2) of Chapter 31, 2007 laws. WHEREAS the applicant certifies that it has adopted, or will adopt by August 4, 2011, and that this project adheres to policies to reduce greenhouse gas emissions in accordance with RCW 70.235.070. POLICY TITLE: Yakima Urban Area Comprehensive Plan 2025 DATE ADOPTED: 7/20/2010 WHEREAS the applicant certifies that, there is currently no litigation in existence seeking to enjoin the commencement or completion of the above - described public facilities project or to enjoin the applicant from repaying the Public Works Trust Fund loan extended by the Public Works Board with respect to such project. The applicant is not a party to litigation, which will materially affect its ability to repay such loan on the terms contained in the loan agreement. WHEREAS, the applicant recognizes and acknowledges that the information in the application forms is the only information, which will be considered in the evaluation and /or rating process. Incomplete responses will result in a reduced chance of funding. In order to ensure fairness to all, the Public Works Board does not accept any additional written materials or permit applicants to make presentations before the Board; and WHEREAS, it is necessary that certain conditions be met as part of the application process; and WHEREAS, RCW 43.155.060 requires that the project will be advertised for competitive bids and administered according to standard local procedure; and WHEREAS, the loan will not exceed the maximum amount allowed by the Board of eligible costs incurred for the project; and WHEREAS, the applicant certifies that the improvement has a minimum life expectancy of at least the number of years of the loan term for which they are applying; and WHEREAS, any loan arising from this application constitutes a debt to be repaid, and Scott Schafer/ Wastewater Division Manager (person /title) has reviewed and concluded it has the necessary capacity to repay such a loan; and WHEREAS, the information provided in this application is true and correct to the best of the government's belief and knowledge and it is understood that the state may verify information, and that untruthful or misleading information may be cause for rejection of this application or termination of any subsequent loan agreement(s); and NOW THEREFORE, City of Yakima (name of local government) certifies that it meets these requirements, and further that it intends to enter into a loan agreement with the Public Works Board, provided that the terms and conditions for a Public Works Trust Fund loan are satisfactory to both parties. Signed: Name: Michael Morales Title: Acting City Manager Phone Number: (509) 575 -6040 Date: Attest: Fiscal Year 2013 Public Works Trust Fund Loan Application Page 20 CERTIFICATION BY PREPARER OF APPLICATION 0 To Be Completed by Staff Member or Consultant WHEREAS, Dean Smith has prepared this application for a Washington State Public Works Trust Fund loan; and WHEREAS, the preparer recognizes and acknowledges that the information in this application is the only information that will be considered in the evaluation and /or rating process. Incomplete responses will result in a reduced chance of funding, and that in order to ensure fairness for all, the Public Works Board does not accept any additional written materials or permit applicants to make presentations before the Board; and WHEREAS, the information provided in this application is true and correct to the best of the preparer's belief and knowledge; and NOW THEREFORE, Dean Smith recognizes and acknowledges the above declarations and certifies that this application meets the above requirements. Signed: Name: Dean P. Smith Title: Utility Project Manager Phone Number: (509) 249 -6814 Date: Attest: Fiscal Year 2013 Public Works Trust Fund Loan Application Page 21 Preparer Certification t• "' :rR'aYfow •bra • � - A r. .rte • .. i r � . ' C ' • " .... %�: ' _ .. • tiiii.. i— u �•'^..• • x'T� - ..+�,[ ,� A—,.....;;;'. • al."' al."' 1 3.x : `•.- .�. f -' 'Y '11 f 1 ' . , 1 ►r . A a ' 1. 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