City of Ashland, Oregon / City Recorder / City Council Information / Packet Archives / Year 2002 / 01/15 / RESO - WWTP
RESO - WWTP
[Council Communication] [
Proposed Resolution ] [WWTP
Cost Summary in PDF Format]
Council Communication
| Submitted By: |
Lee Tuneberg and Paula Brown |
| Reviewed By: |
Paul Nolte |
| Approved By: |
Greg Scoles |
Title: Update on Remaining Wastewater Treatment Plant Construction
Work and approval of increase in funding from Clean Water State Revolving
Fund.
| Synopsis: |
The City has been constructing major improvements
to the Wastewater Treatment Plant facility under a contract with Slayden
Construction (Slayden) since September 1998. Originally the wastewater treatment
plant improvements were designed as two distinct pieces; the initial phase
as process improvements at the wastewater treatment plant site (Project A),
and the second phase (Project B) for facilities to be constructed on the
City's hillside farmland for effluent reuse and biosolids application.
Council has directed the process improvements to include new membrane
filtration facilities and centrifuge biosolids handling facilities that do
not depend on land application of either effluent or biosolids. The Department
of Environmental Quality has mandated completion for the new membrane filtration
improvements so that all permit limits are met and achieved by May 1,
2002.
The project is partially funded through an Oregon Clean Water State
Revolving Fund Loan. Payments on this loan will begin November 2002. The
interest rate per the agreement is 3.43% which remains as an advantage to
the city despite recent fluctuations in the markets. This communication is
consistent with the past practice to annually come to Council for approval
before amending the loan. |
| Recommendation: |
It is recommended that the Council approve the resolution
for additional loan obligation, increasing the authorized amount to
$23,420,068. |
| Fiscal Impact: |
A year ago, staff estimated the additional facilities
to be between $10 - 10.5 Million (for a grand total of $26.6 Million plus
design, redesign and construction management; $31.8 - for the total project).
Current cost analysis includes all of the costs to date and are shown on
the attached document. The thcilities costs remain at $26.5 Million. Design
costs have increased to $5.2 Million and the prior land and wetlands
demonstration project bring the grand total for the WWTP Upgrade project
to $33.2 Million. |
| Background: |
Membrane Facilities: The membrane filtration pilot
testing program was completed in December 2000. Council approved staff and
Carollo's recommendation to sole-source the purchase of the Zenon Zeeweed
membrane filtration unit as it operated well during the pilot testing and
met all treatment objectives during the entire pilot period. The Zenon technology
provides necessary operational flexibility. The submerged design of Zenon
has the advantage of providing additional flocculation time in the membrane
tank. The Zenon Zeeweed is a vacuum system in which air is used to agitate
and clean the membranes. This air agitation injects dissolved oxygen into
the final effluent as required in the City's NPDES discharge permit. The
Zenon system requires no additional facilities for tertiary
clarification.
Staff, Carollo and Slayden Construction collaborated on a fast track
design and building project. The membrane facility is approximately 35% complete.
All of the Zenon equipment is on site. It is anticipated that the system
will be operational in April so that the City will meet the DEQ deadline
of May 1, 2002. The costs of the facility, piping, pumping, ancillary equipment
were negotiated a section at a time with Slayden Construction. Each change
order had an independent review of costs and was further negotiated. All
of the construction, including the prior yard piping changes incurred a total
cost of $3,873,092. The Zenon Zeeweed unit itself was negotiated for a total
of $2,512,500. The total membrane facility costs are $6,385,592 and are
consistent with the original estimate of $6 million.
Dewatering and Biosolids Management: At the
September 19, 2000 Council meeting, Council directed staff to pursue biosolids
options that would not utilize land application, specifically not used the
City's off-site EFU properties for any biosolids application. The biosolids
management portion at the wastewater treatment plant is the final piece of
a multi-year project. Several options have been explored and City staff members
have visited several different treatment plants throughout the western United
States to evaluate the best options for the City. After discussions with
our consultant, Carollo Engineers, and discussions with treatment plant
operators, staff is convinced that using a centrifuge system that allows
both thickening and dewatering is the best option to pursue. Building the
facility at the wastewater treatment plant ensures long-term quality control
and the ability to modify operations for a higher class material should the
City desire to use the biosolids for reuse. At the August 18, 2001 Council
Study Session, Council discussed and accepted staff's direction to go forward
with a centrifuge facility. The design for the biosolids facility has begun
and will be completed by April. The facility itself will be negotiated and
hopefully under construction in May 2002. Initial cost estimates for facility,
piping, pumping, centrifuge mechanism and potential future air scrubbing
to reduce odors remain within the $4.4-$4.6 M range.
CWSRF Funding: The City obtained a loan from
the Oregon Department of Environmental Quality, Clean Water State Revolving
Fund loan program. The original loan amount was $17,969,671. This amount
was increased to $21,767,068 in December 2000, and subject to Council's approval
of the attached resolution, will be revised again to a new loan amount of
$23,920,068. The CWSRF program offers the City excellent rates for repayment.
The additional loan encumbrance will be repaid through rates and the meals
tax.
Remaining Issues: 1) A new permit for discharge
to Ashland/Bear Creek will require development of a temperature management
plan. The temperature limits have not yet been specifically determined for
Bear Creek. This is still an issue to be negotiated and determined by DEQ.
Staffand Carollo are developing the Temperature Management Plan documentation.
2) The future use or disposition of the City's EFU land is still pending.
The current use of that land is through a contract with a farmer for cattle
grazing. |
End of Document - Back to Top
RESOLUTION NO. 2002-
A RESOLUTION AUTHORIZING AND APPROVING AN INCREASE IN THE
AMOUNT BORROWED FROM THE CLEAN WATER STATE REVOLVING
FUND FOR THE WASTEWATER TREATMENT FACILITIES PROJECT AND
REPEALING RESOLUTION 2001-03.
RECITALS:
A. The City of Ashland (the "City") has entered into negotiations
with the State of Oregon Department of Environmental Quality (the "DEQ")
for a loan to the City from the Clean Water State Revolving Fund in the amount
of $23,420,068, which increases the previously adjusted loan value by $1,653,000.
B. The DEQ has provided to the City a form of the amended Clean Water
State Revolving Fund Agreement. ("CWSRF")
C. The City Attorney and Finance Director are finalizing this agreement.
THE CITY COUNCIL OF THE CITY OF ASHLAND RESOLVES:
Section 1. City authorizes and approves the form of the CWSRF
Loan Agreement for the increased amount to finance the Wastewater Treatment
Facility Project.
Section 2. City authorizes and approves the establishment and
funding of a designated reserve account to meet the "Loan Reserve" requirement
of the CWSRF Loan Agreement, and directs the Director of Finance to establish
this Loan Reserve.
Section 3. City authorizes and approves the establishment and
funding of a Wastewater Rate Stabilization Account. The purpose of this account
is to mitigate rate shock when the Food and Beverage Tax sunsets. City directs
the Director of Finance to establish this account.
Section 4. City authorizes and directs the Director of Finance
and the City Administrator, acting for and on behalf of the City, to execute
the final CWSRF Loan Agreement and such other and additional documents as
may reasonably be required for the consummation and closing of the Loan,
and any amendments required thereafter.
Section 5. Resolution 2001-03 is repealed.
Section 6. This resolution takes effect upon signing by the
mayor.
This resolution was read by title only in accordance with Ashland Municipal
Code 2.04.090 duly PASSED
and ADOPTED this __ day of __________________________,2002.
SIGNED and APPROVED this __ day of ______________________,2002.
.
End of Document - Back to Top
WWTP Cost Summary for 2002:
This cost summary is available as a PDF file. Click on the link below
to download and view the document:
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