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HomeMy WebLinkAbout11-09-17 Amended MWMC Agenda PacketTHE FULL PACKET IS POSTED ON THE WEBSITE www.mwmcpartners.org MWMC MEETING AGENDA Thursday, Nov 9, 2017 @ 7:30 a.m. City of Springfield City Hall, Library Meeting Room 225 Fifth St., Springfield, OR 97477 Turn off cell phones before the meeting begins. 7:30 – 7:35 I. ROLL CALL 7:35 – 7:40 II. CONSENT CALENDAR a. MWMC 10/13/17 Meeting Minutes Action Requested: By motion, approve the Consent Calendar 7:40 – 7:45 III. PUBLIC COMMENT Request to speak slips are available at the sign-in desk. Please present request slips to the MWMC Secretary. 7:45 – 8:00 IV. ELECTRICAL DISTRIBUTION SYSTEM REPLACEMENT AND UPGRADES P80092 – EQUIPMENT PRE-PURCHASE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . John Casto & Troy McAllister Action Requested: By motion, approve Resolution 17-14 8:00 – 9:00 V. EXECUTIVE SESSION – SDC WAIVERS/INCENTIVES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . K.C. Huffman & Matt Stouder Adjourn Regular Session and convene Executive Session for the purpose of consulting with legal counsel pursuant to ORS 192.660(2)(h) concerning the legal rights and duties of a public body with regard to current litigation or litigation likely to be filed. Adjourn Executive Session and convene Regular Session. Action Requested: Discussion and direction on how the Commission would like to proceed with the issue of SDC waivers/incentives. (Continued on back) THE FULL PACKET IS POSTED ON THE WEBSITE www.mwmcpartners.org 9:00 – 9:15 VI. BUSINESS FROM COMMISSION, GENERAL MANAGER, AND WASTEWATER DIRECTOR 9:15 VII. ADJOURNMENT _______________________________________________________________________________ The meeting location is wheelchair-accessible. For the hearing-impaired, an interpreter can be provided with 48-hours-notice prior to the meeting. To arrange for service, call 541-726-3694. All proceedings before the MWMC are recorded. ________________________________________________________________________________________ MWMC AMENDED MEETING MINUTES Friday, October 13, 2017 @ 7:30 a.m. City of Springfield City Hall, Library Meeting Room 225 Fifth St., Springfield, OR 97477 President Inge opened the meeting at 7:30 a.m. Roll call was taken by Jolynn Barker. ROLL CALL Commissioners Present: Pat Farr, Bill Inge, Doug Keeler, Joe Pishioneri, Peter Ruffier, Jennifer Yeh Absent: Walt Meyer Staff introductions were made: Meg Allocco, Jolynn Barker, Katherine Bishop, Dave Breitenstein, Michelle Cahill, Judy Castleman, Brian Conlon, Randy Gray, Rob Hallett, John Huberd, Kristin Denmark (attorney), Vanessa Jordan, Laura Keir, Madeline Klein, Tonja Kling, Shawn Krueger, Sarah Medary, Michelle Lewis, Troy McAllister, Todd Miller, Keith Miyata, Josh Newman, Anette Spickard, Matt Stouder, Andrew Townsend, Mark Van Eeckhout, and John Williamson CONSENT CALENDAR a. MWMC 9/8/17 Corrected Meeting Minutes MOTION: IT WAS MOVED BY COMMISSIONER KEELER WITH A SECOND BY COMMISSIONER PISHIONERI TO APPROVE THE CONSENT CALENDAR. THE MOTION PASSED UNANIMOUSLY 6/0. PUBLIC COMMENT There was no public comment. CMOM UPDATE – EUGENE/SPRINGFIELD COLLECTION SYSTEMS PREVENTATIVE MAINTENANCE AND OPERATIONS UPDATE Brian Conlon, City of Springfield Operations Manager and Rob Hallett, City of Eugene Public Works Sub-Surface Operations Manager gave the presentation to provide the Commission a status update on activities and elements contained within each city’s Capacity Management and Operations Maintenance (CMOM) plans. The cities employ key preventive maintenance strategies toward mitigating sanitary sewer overflows (SSOs) frequency and reduction of pipe infiltration and inflow (I&I). The Cities 5-year SSO trend shows that cumulatively the respective collection systems experience less that one SSO per 100 miles of pipe. Collectively, based on national metrics this puts Eugene-Springfield performance in the top 90th percentile when compared to other utilities countrywide. MWMC Meeting Minutes October 13, 2017 Page 2 of 12 A key factor in realizing these performance objectives has been to schedule work processes that achieve optimal pipe efficiency outcomes and ensure prompt response to reported problems. Some of the vital work processes that the cities undertake include: Routine hydro-jetting to remove impediments and improve pipe flow dynamics CCTV to identify pipe defects, root intrusion, and fats, oils, and grease (FOG) issues Pipe flow monitoring to evaluate system performance and hydraulic modeling characteristics Pipeline smoke testing to identify defects and wastewater/storm water cross-connection verification. Smoke testing is also effective to further investigate the origin of I&I so staff can follow up and correct any cross connection issues. President Inge asked Mr. Conlon why our goal isn’t zero SSOs. Mr. Conlon said he agrees with President Inge and thinks our goal should be zero. The intention is to continue to make our programs more robust. Matt Stouder, MWMC General Manager, added we can have an internal goal of zero SSOs, and we need to be careful not to confuse that with the federal regulatory requirements and our permit. Commissioner Farr said he agrees with President Inge that having a goal of zero is great because then your strategies aim for zero, understanding there are things beyond your control but you can go as close as possible. Commissioner Keeler stated the last bullet point on the second slide talks about continual process improvement so that is what we are speaking to. Mr. Conlon reported the City of Eugene completed, in the last year, an update of their hydraulic model and have almost finalized their Master Plan. Springfield utilized Eugene’s expertise to update flow monitoring model and evaluate I&I. He thanked Sam Novak for all his work helping Springfield. Springfield installed 15 new flow monitors with equipment matching Eugene’s and there is now an analytical compatibility between both cities. Mr. Hallett stated, currently Eugene-Springfield staff meet quarterly. Recently, operators and line staff got together where Dave Breitenstein, Wastewater Director, helped put on the training and talked to them about our definition of SSOs, how we respond once one occurs, and the reporting responsibilities, so we are all on the same page when it comes to SSOs and how they are tracked and reported. Commissioner Farr stated this collaboration between the two cities is important. Commissioner Keeler said he recalled many years ago when the MWMC was looking at stepping up our game with monitoring and the collection system for flows. It’s a difficult thing to do; obviously you can’t see where the best place is to put out equipment and how do you know it’s working well. We had very few flow meters but it sounds like we have a pretty robust data collection system and software and analysis in place now. President Inge said he was curious – are we seeing any consistencies at all relative to the SSOs that we have had. Is there some shared data so that when we see something over here we may go into another area that is similar and say “if it is happening here there is a potential that it could happen here too.” Mr. Conlon asked if President Inge was referencing cause to which President Inge replied, “absolutely.” Mr. Conlon replied that he thought maybe staff could report on that. He said he would make a note and investigate that a little further and see. He expects the answer to MWMC Meeting Minutes October 13, 2017 Page 3 of 12 that is yes. Mr. Hallett added the model has pinpointed areas of possible SSOs and that’s been verified because we’ve had SSOs in those particular manhole sites – it’s a powerful tool for us. President Inge stated he believes we have tremendous staff and the results speak for themselves so he doesn’t want to diminish the hard work done and results accomplished by latching on to having a goal that maybe is just a little bit stronger than what we’ve had historically. Mr. Conlon replied staff embraces that. Mr. Conlon said the next time Operations presents, he thinks it might be good to have some of the capital staff report on some of the great things that are happening there. He noted staff had some good rehab projects that occurred during this summer. Commissioner Ruffier said he was curious about the reporting of SSOs. It was reported that less than one per 100 miles of pipe, is that annually or over the 5-year period of time? Mr. Conlon noted that was annually. Commissioner Ruffier asked how those were reported. Mr. Breitenstein replied the spills crew transfers information to the plant, based on the information we decide whether we conduct a further risk assessment and then follow up an oral report within 24 hours and a written report within five days. Commissioner Ruffier asked if there were any response from DEQ to any of your reports. Mr. Breitenstein replied sometimes there is communication especially most recently because DEQ has had staff turnover so they have had new people in place so it’s more about building that relationship. Commissioner Ruffier asked if there were enforcement actions or notices of violations. He said he knows that at one point in regards to the threat or risk of citizen litigation there was interest in perhaps having DEQ issue some form of formal notification to indicate that it was responding to these issues and they weren’t going unnoticed or unattended. Mr. Breitenstein replied he remembers John Gasik with DEQ told him about a year or two ago that we can expect to receive more often instructions from them to do public notice, but that is always going to be based on the magnitude of the event. So far, the WPCF events have been relatively small and there has not been a time since then that they have required more public notice than we have already undertaken. Mr. Conlon reported Springfield takes a similar approach; also immediately reporting to the Oregon Emergency Response System as well as DEQ. And trying to make contact quickly with DEQ and report later after cleanup and a written report as to what occurred. Commissioner Ruffier asked with regards to the City of Eugene’s pilot project on private laterals, is staff taking a look at some of the work they are doing and at some time are they going to report on that? President Inge asked if that information could be part of an agenda packet for a future meeting. Mr. Stouder agreed. Commissioner Ruffier said that with Springfield now certified in the pipeline certification program, is there any interest or intent by Eugene to do this? Mr. Hallet didn’t know about that program, and would need to talk to Mr. Conlon about it. Mr. Conlon stated they would report on that next time. Commissioner Ruffier said he isn’t sure how rigorous the pretreatment programs are right now in dealing with the fats, oils, and grease (FOG) but you are seeing the manifestation of the problem in the collection system. FOG tends to be a cause of SSOs so he would be very interested in hearing a report on the FOG program. Mr. Stouder replied that he would schedule a FOG update for the Commission. Commissioner Ruffier said he is particularly interested in the interaction with the businesses that are generating the FOG and how effective that is. MWMC Meeting Minutes October 13, 2017 Page 4 of 12 FY 2016-17 ANNUAL FINANCIAL SUMMARY, BUDGET RECONCILATION Meg Allocco, MWMC Accountant, noted staff is in the middle of making audit adjustments for reporting purposes to reconcile actual prior year ending balances with budgeted beginning for the subsequent year. Ms. Allocco referred to page 2 of the staff memo summarizing how the MWMC did in comparison to the revised budget by category. Operating revenue exceeded budget by $1.2M or 3.7% driven mainly by a combination of septage fees ($559K or 302%) and monthly user fees ($478K or 1.5%) exceeding budget and also items such as FEMA reimbursement ($39K) not budgeted, interest income over performing budget, and other miscellaneous receipts. Operating expenses were under budget by $1.9M for Eugene and Springfield combined. Capital Revenue was over $497K and SDC Revenue was over by $776K. Estimates on these are generally conservative because we don’t always know what projects are going to happen and what the timing will be. President Inge said he was curious why on Attachment 3 shows a budgeted $31M and the year to date $32M but it shows a shortage of $1M instead of being over by $1M. Ms. Allocco agreed it is an overage of $1M; she will change how she shows that on the Revenue Report. Commissioner Ruffier said he is a proponent of fairly steady rate increases that reflect the cost of doing business but the results of this calls into question whether or not we need a rate increase in the future. It really depends on what our projected expenditure rates are. As reported historically we’ve ended up with a surplus in addition to reserves. He is wondering that since we are facing an unclear future with respect to additional expenditures would rate increases for the next year be justified. He said that’s just a comment that he thinks should be factored into the Commissions discussion on the budget. Also it would seem that capital aside, the net increase of reserves for the operating side does provide a source of funds for the concept of having an innovation fund. Mr. Stouder said he noted the comment last month and staff is working on that. Commissioner Keeler asked Katherine Bishop, Financial Administration Environmental Services Program Manager, one of the reasons we have the reserves that we have he understands is for our bond indebtedness. Now that we have been able to pare that back quite a bit, does that factor into what we consider when we are looking at budgets for the future? Ms. Bishop replied she could speak for the rate side of it in terms of rate forecast and paying it forward. We have a lot of uncertainty about what is going to be in our permit in terms of projects and future expenses. What we rely on in terms of forecasting our rates is cash flow estimates by the engineers who manage the capital projects. We update that information monthly and on an annual basis and we use that information as to when we are going to spend down the capital and that information can impact rates. Each time we come to the Commission with a rate plan we include the following: The proposed rates and a couple of alternative scenarios so the Commission has an opportunity to discuss the different scenarios and provide staff with input and direction. We could also bring back information about what would happen in the longer term without a rate change. In terms of reserves, they are driven by a number of factors including the financial plan. Some of those reserves are spelled out in the financial plan and also having to do with the bonds as well. In addition, we are building capital reserves to be financially positioned to use pay-as-you-go financing for capital infrastructure investments, when appropriate, to defer future revenue bonds. MWMC Meeting Minutes October 13, 2017 Page 5 of 12 Commissioner Ruffier said those comments also lead him to wonder that if we have reserves on the operating side for unforeseen circumstances, he didn’t know if we have ever dipped into the reserves for an unforeseen circumstance. He said that begs the question of what our level of risk assessment is in constructing a budget. We budget for conservative factors that perhaps we don’t need to because we have reserves to fall back on. President Inge asked didn’t we draw down the stability reserves a couple of years ago? Mr. Stouder replied that we had double-digit rate increases mid-year a few years back (due to the closure of Hynix) and the Commission was concerned about that. He commented that staff is planning to do some updates to the Financial Plan and bring those back to the Commission for review and input. SYSTEM DEVELOPMENT CHARGES – SMALL HOMES Mr. Stouder said this year the MWMC received a couple of requests concerning waivers for SDCs for tiny homes and accessory dwelling units (one from the City of Springfield and one from Square One Villages). This was discussed by the Commission in June 2017 as well as a discussion about policy issues, history of partner agencies and what the MWMC have done with respect to SDC waivers or incentives. Also, issues of equity across the service area, rational for possibly incentivizing, IGA concerns, and potential financial concerns. After discussing IGA concerns, the Commission directed staff to look into whether a separate user class for small homes would be appropriate. Staff took that direction and contracted with Galardi Rothstein Group (GRG) to perform the work. Mr. Stouder directed the Commission to the Tech Memo from GRG (Attachment 2 to the staff memo). GRG looked at fee structures incentives that could reduce development costs for smaller homes at the national level. Several examples were discussed. GRG analyzed the flows and load data that was available and found that in general there is a correlation between household size and flows. As would be suspected, a smaller house corresponds to a smaller flow. MWMCs SDC is made up of two components – flow and strength. A portion is charged based on the flow and another cost is based on the strength and the cost to treat that waste at the WPCF. Because of the flow component, it is justifiable to assess small homes at a lesser rate, in this case the multi-family rate. The MWMC has a multi-family rate that is 14% less than what is charged for a single family home. The MWMC’s mobile home rate is also the same as the multi-family rate. Next steps would be to have a conversation about what constitutes a small home such as: Any home smaller than a certain size threshold (In Springfield it is 750 square feet for an Accessory Dwelling Unit (ADU) and in Eugene it is 800 square feet for a ADU). Any home that is accessory to a primary residence (i.e. ADU only) Additionally, the MWMC’s SDC rate schedule would need to be adjusted to correspond to any action taken by the Commission. Commissioner Keeler asked Mr. Stouder if both cities already have in place SDCs they assess for these smaller homes. Mr. Stouder responded that Springfield assesses SDCs based on the number of fixture units. Therefore, if a house does not have any fixtures they will not pay an SDC. MWMC Meeting Minutes October 13, 2017 Page 6 of 12 Commissioner Keeler then confirmed that Springfield may have one method and Eugene another. Mr. Stouder replied his understanding of Eugene is that it is based on fixtures but there is also a component considering the size of the house. Commissioner Keeler commented that if the Commission elects to do anything, it would likely be different and the Commission won’t be able to follow the same pattern set by the cities because they employ different things. Mr. Stouder agreed. Commissioner Farr said there are two elements to this and he is fully in favor of charging small homes at the lesser multi-family rate. The other element is in regard to the crisis that we are in and being able to recognize the difference between a tiny home and a tiny ADU and a small home (~800 square feet). The homes that are being built in Springfield are the ones that Springfield is looking at for ADUs; four of those equal 800 square feet. He said that is significantly more than multi-family reduction in impact on the system. In fact some of the smaller dwellings actually do not have fixtures. He said that is a large discussion that he would like to be part of. Something that we don’t consider very much as a public body is the charitable portion of the work that we do. He asked with a large reserve can we afford $33K to pay the SDCs for them. Commissioner Farr then addressed President Inge saying that he would like to acknowledge that he does support the reduction to the mobile home or multi-family dwelling (about $250/unit) which is significant. Commissioner Pishioneri asked what the base price was again. Mr. Stouder responded the SDC price for MWMC for a single family home is approximately $1,700. Commissioner Pishioneri said what he was looking at in Springfield is that Springfield is waiving SDC’s on a temporary basis so they can get some homes built and help alleviate some of the pressure on the whole price point. That’s really the goal they have and he agrees with the direction for long-term as far as having a different rate for those smaller homes in the 800 square foot range. The maximum of 200-300 square foot homes was also mentioned and eliminated those SDCs. Commissioner Pishioneri said he concurs with having a different rate and just get that done today, but he still wants to look at a temporary waiver program if we can do that. Kristen Denmark, Legal Counsel, explained this has been discussed a lot around the state with other government entities and special districts and especially the City of Springfield, which has taken the position that they want to incentivize this. However, the SDC statutes are very clear that cities and counties have certain authority that does not extend to other districts. Cities and counties in the SDC statutes are given the authority to waive or incentivize SDCs for low income housing but it only says city and counties so by omission it is pretty clear that any other district doesn’t. Ms. Denmark said she knows that MWMC is made up of cities and counties however she thinks it is treated more as a special district, and it is very clear that special districts do not have that authority to incentivize for any purpose. There is no precedent on whether an entity like MWMC does have that authority; there are entities around the state that are just doing it anyway. There are special districts that are just doing it and they do not have that authority. Legally she thinks it’s a position that is not clear and probably tips towards not having the authority to do that because the statutes are pretty clear. The MWMC is not a county or city – but rather a unique body and it is in that territory and makes her feel uncomfortable. Commissioner Pishioneri responded he is aware of that but the way MWMC is put together and even the rates are administered by the cities he’s not sure if he would think it is a special district more than the other way. Ms. Denmark responded there is just no authority so she can’t tell Commissioner Pishioneri that there is a case out there that he can follow. She can just say here is what the law says. MWMC Meeting Minutes October 13, 2017 Page 7 of 12 Commissioner Pishioneri asked Ms. Denmark what would be the ramification if we just said we believe we can do this, and then someone disagrees. President Inge asked if this was something that would be better discussed in Executive Session than in an open forum relative to the legalities around the subject. Ms. Denmark responded we could likely discuss this in Executive Session at a future meeting. President Inge said his general feeling is that we probably need to get a good legal opinion on the issue and he would feel better about having a future Executive Session to do that. Ms. Denmark remarked that she doesn’t have any concerns about creating the new category being discussed. That is the cleanest way to do it. Her concern comes in about incentivizing it or the charitable donation and that is something that came up in discussion today but isn’t in the memo. Mr. Stouder noted the incentive or the waiver was talked about at the June meeting and the direction was the Commission didn’t want to focus on that; that is the main reason we didn’t have that as a focus at this meeting. We can certainly have that conversation at an upcoming meeting. Commissioner Farr reiterated he is in favor and prepared to make a motion regarding the new (or change) in category. He said back in the 1990s there was a lot of discussion surrounding SDCs because we were adding a lot of low income housing at the time and the City of Eugene didn’t waive SDCs. Payment came from reserve funds or was distributed across different funds. He said he believes that is still the policy because that was established earlier. He continued by saying he would like to have a discussion about paying the SDCs. He said the request that he has made is paying back the $33K or issuing a credit to Square One Villages that Eugene has already paid. Commissioner Keeler stated that he was a little confused and probably if something does come up for a vote he would vote no because of his lack of clarity. But he does want to try and clarify a little bit so it sounds like we have two different topics on the table: 1) Looking at an SDC rate structure modification where we would have a lower rate for smaller dwelling unit, and 2) A charitable pay back to Square One Villages. Commissioner Keeler said in his mind he needs to separate those two and he noted that Ms. Denmark said that in one place the SDC adjustment we have good legal grounding, the other one, probably not. So that may be a topic for Executive Session. Commissioner Pishioneri moved to have a separate classification of SDC rates for multi-family units that were specified by Mr. Stouder. It was seconded by Commissioner Farr. DISCUSSION: Mr. Stouder said we would need to clarify the size of the home. Commissioner Pishioneri replied 800 square foot. Commissioner Keeler asked if we have a value associated with it. Commissioner Pishioneri replied the multi-family rate. President Inge asked what’s the urgency for getting this done. Commissioner Pishioneri responded it is a timed program that is going on. Commission Inge said this development has already been done. Commissioner Farr stated the urgency with this it is a unique project that the eyes of the entire world are on. People across the state and nation are taking a look at how this type of a project can fit into a municipality and into local districts. MWMC Meeting Minutes October 13, 2017 Page 8 of 12 President Inge asked in regards to urgency does a month matter. He said at the moment he is in Commission Keeler’s camp a little bit where he too is probably going to vote no because he is not sure that he has enough information to give the support on both sides of the equation. Mr. Stouder said the reason for 800 square feet is that it would encompass both requests we had previously – ADUs and tiny homes; 800 square feet is consistent across the two jurisdictions. The data that was provided by Deb Galardi suggests that would be appropriate. If the Commission were to do that today, we would be charging those houses at an appropriate rate for their impact. Mr. Stouder said regarding the second topic, staff would be prepared to discuss that at a future Commission meeting. Commissioner Ruffier said he thought Mr. Stouder covered his comments and that he is comfortable with the documentation provided. Commission Yeh stated she feels everything has been nailed down – square footage and multi- family rate seems very appropriate to her for these smaller homes. She asked about the tiny homes and the charges based on the number of fixtures and what happens if they don’t have any fixtures. Mr. Stouder replied there are two components to the SDC: regional SDCs based on per flow units then there is the local side and SDCs are based on number of fixture units. Commissioner Yeh said she is in support of the motion and she will be voting yes. President Inge referred to the staff memo that states any home smaller than a certain size threshold 750 square feet for example. Mr. Stouder responded that was because that is what Springfield defines as an ADU. He did further research and Eugene is at 800 square feet. President Inge asked if there was further discussion on the motion. Commissioner Keeler said we do have a motion on the table and he asked if he could respectfully request that we amend the motions so that it includes some of these values, namely square footage and also what we are going to apply it to that we are going to match this multi-family rate. Commissioner Farr asked to restate the motion. Commissioner Pishioneri restated. MOTION: IT WAS MOVED BY COMMISSIONER PISHIONERI WITH A SECOND BY COMMISSIONER FARR TO CREATE A NEW SDC CLASSIFICATION THAT WOULD BE CALLED SMALL HOMES AND WOULD BE FOR 800 SQUARE FEET OR LESS AND WOULD BE CHARGED AT THE MULTI-FAMILY DWELLING RATE AND TO BECOME EFFECTIVE IMMEDIATELY. THE MOTION PASSED 5/1. (Inge opposed, Meyer was absent) DISCUSSION: Commissioner Inge said he wanted to make really clear he feels like the Commission is rushing this and he doesn’t think that the Commissioners have all the information necessary to make the decision the way that it really should be made relative to definition. Commissioner Farr had two questions to the motion: 1. He is presuming that this doesn’t need to be attached. Commissioner Pishioneri replied whatever the definition of a home is, is currently being used as our policy. 2. Commissioner Farr said the SDCs on Emerald Village have already been paid. He would like the consideration of crediting back the $250 difference. MWMC Meeting Minutes October 13, 2017 Page 9 of 12 Mr. Stouder said his understanding was that the SDC’s had been paid on behalf of the City of Eugene so it would be credited back to the City of Eugene. Commissioner Farr said he will provide more information about that request. Commissioner Keeler said he has concerns from Legal Counsel’s advice and also from an equity standpoint. We have a project that may probably be worthwhile of receiving that incentive but we may have another project that’s a little bit prior to that and maybe others. He wonders where we stop. RESILIENCY PLANNING REQUEST FOR PROPOSALS (RFP) Josh Newman, Managing Civil Engineer, said the main issue relates back to the concern about a Cascadia Subduction Zone earthquake. He said the state has done a lot of work to move forward with preparations and they have developed a robust framework for doing this type of work. We were aware that EWEB had done a resiliency plan as part of their 2014 Water Master Plan work. At the May Commission meeting, the Commission supported staff’s proposal to move forward with a resiliency planning effort that was tailored for the MWMC’s core services, critical assets and resources. Mr. Newman sent an email to ACWA and received some responses. Several communities are doing resiliency planning. He looked at Portland‘s approach as well as King County’s approach, and reviewed EWEB’s approach. He found that some of these approaches started at the ground level and boils down to a smaller network related to treatment plant services. A strategy was developed for a scope of work (attached to the staff memo) that focuses on what MWMC’s motivation is. This attachment borrows a lot from the Oregon Resiliency Plan and shows it did a really good job of characterizing the earthquake levels and it developed earthquake hazard maps so our project team can build on that. Mr. Stouder added Eugene-Springfield has a Natural Hazard Mitigation Plan that they are working collectively to do some of the things that Mr. Newman talked about at the city levels. Our focus currently is how do we build on that effort? Mr. Newman stated that staff wants to bring a consultant on board to develop and build off of the Oregon Resilience Plan. The Oregon Resilience Plan developed levels of service to restore within certain time frames. Mr. Newman passed a handout to the Commission showing those target timeframes for recovery. The target timeframes would define how quickly the MWMC would need to respond after an event. Previously the Commission made comments regarding fire and flooding; so those are additional hazards that we would leave some space to develop a better understanding of what those risks truly are. Commissioner Ruffier told Mr. Newman he appreciated him handing out the target timeframe for recovery as it clarifies some of the objectives that he had a question about with regards to recovery. He hopes that something similar to this would be included in the RFP to give the consultants more direction about recovery times etc. He said he would also be curious in terms of the deliverables about options. The presumption is you go back to the original state (i.e. 100% functional) as pre-event. He doesn’t know how to do it without expanding the scope substantially but whether or not there are options for different directions. So rather than restore to original condition, work towards distributed treatment or something else. If we are going to wipe the slate clean, would we do things exactly the same way? MWMC Meeting Minutes October 13, 2017 Page 10 of 12 Commissioner Pishioneri asked if these were our goals. Mr. Newman responded that we would adopt the recovery goals. Commissioner Ruffier said he knows we are party to ORWARN. He thinks that should be reflected somewhere as an option for assistance. Commissioner Keeler asked Mr. Newman if he would help him understand the vision overall. He said when he thinks about disasters he thinks what’s your immediate response and what is your business resumption (do we restore the plant the same way it was or does it change). There are three timeframes: preparation, response, and rebuild. What is the product of this work – do we wind up with recommendations like we need to install a diesel generator here or something else to make us more robust now in preparation. Mr. Newman said that in the scopes of work that he’s looked at there have been widely different approaches taken, some of what Commissioner Keeler is talking about and others really focus on rebuilding that backbone. It also appears to him that the MWMC is kind of the heart of the wastewater system. We provide the treatment and all of our systems are part of that backbone; the treatment plant, large pump stations, and interceptor. Mr. Stouder added the critical component will be performing an ability assessment and from there we will identify where our highest priority needs are and we can invest capital funds potentially where we choose to help ourselves out in the event. Mr. Newman stated the goals are to minimize the damage so that we can rebuild quicker. That is the main goal. The broader goal would be to harden so that we have a quicker ability to get our systems back on line. Maybe there are some other considerations for how we might want to be strategic about how we rebuild but that’s almost its own scope. Mr. Newman said he could see adding an assessment like that maybe see it as an optional task; find out about the costs, what it includes, how useful is it really going to be. Commissioner Keeler commented it is an opportunity for collaboration – we are depending on power supply (EWEB, SUB) also the collection system that the cities own. Commissioner Ruffier said resiliency tends to focus on the hard assets of the infrastructure but labor requirements of disaster recovery are also a component. Particularly in a short run if we have a major earthquake and people can’t get to work or have other priorities with regards to their families or personal properties that ought to be a component of it. Maybe some discussion with the cities about staffing plans. Mr. Stouder responded the project team could have the consultant look at the National Hazard Mitigation Plan and see what other cities are doing. Commissioner Ruffier said outside the scope of this effort in terms of resiliency planning and what’s going on with the county right now he is curious about a note maybe in the future of the status of strike planning for the cities. Whether there is a strike plan or how updated it is. Mr. Newman commented he thinks the human resources part is important and probably should be in this facility’s seismic vulnerability assessment. There needs to be some recognition that the vulnerabilities associated with workforce and how that fits in this. Mr. Breitenstein said there are different ways to plan around that. One of the options for where we could go for labor is in the OAR agreement; we could bring in certified operators from anywhere else in the state. MWMC Meeting Minutes October 13, 2017 Page 11 of 12 BUSINESS FROM COMMISSION, GENERAL MANAGER, AND WASTEWATER DIRECTOR Commission: None General Manager: Mr. Stouder had a few topics to report: Brown Lane property is now owned by the MWMC Staff is scheduled in December to go to the governing bodies for an IGA update regarding non- domestic mobile waste. Changes to the monthly report will be made over the next several months – probably going to be an iterative process. Any questions about the changes contact Mr. Stouder. November meeting falls on Veterans Day which is a holiday for city offices. Currently we have the agendas for the future set such that there is no business in November, however we could meet if the Commission is interested. This would have to be a special meeting at a different time and we need to have a quorum. We have a topic today that will need to be added to December’s agenda. o Commissioner Pishioneri said he thinks there will be quite a bit of conversation on today’s topic so it depends on how much we have to accomplish on what was going to be regularly done in December. He thinks we should try to have that meeting the Thursday prior to the Veterans Day holiday because he doesn’t want to shorten that conversation. Mr. Stouder said he will send out an email about having the meeting the day before the holiday. Mr. Stouder gave a quick update on the digester project. We have a fourth digester going in and he showed some progression photos of the construction. Wastewater Director: Mr. Breitenstein had two topics. Unfortunately the engine generator for the co-generator is not on-line yet. The engine was rebuilt, the new control system installed, and the gas blower needed to be replaced. We selected one, ordered it and got it here and during the system startup found out the blower leaked gas. Working with the local vendor they said the gas-type blower was not specified when ordered. None of the information available to staff indicated that there was an option in that regard. Now at this stage we do have a plan in place, the supplier will be retrofitting the blower to bring it up to a standard design acceptable which has been reviewed by the design engineer. But, that requires 3-5 day travel freight back to New Jersey, about two weeks to do the work and another 3-5 days to get it back to the plant. The plant is not responsible for additional cost for freight. That will go to the vendor and/or supplier. Earlier this year EPA transitioned from paper discharge monitoring reporting system to fully electronic nationwide so staff successfully transitioned to that in September. A copy of the electronic submission is coming to Commissioners through the Monthly Reports and if you look at that closely it is not very intuitive as to what you are reading. If you need any help in any parts of the report let him know. Commissioner Ruffier asked about the status of the Poplar Farm. Todd Miller, Project Manager, responded we are about 80% through the harvesting. Contract intended to have all the trees down prior to this week but we are at the mercy and limits of available trucks and market receptivity. We MWMC Meeting Minutes October 13, 2017 Page 12 of 12 are little behind schedule hoping the rains don’t come on too vigorously so we should be wrapping up next week. Commissioner Ruffier ask at some point will Mr. Miller report on the revenue generation. Mr. Stouder replied that there will be an update. President Inge stated for the next meeting to send out ahead of time the definition of tiny home, accessory dwelling unit, small home and whatever staffs understanding of the definition is. ADJOURNMENT President Inge adjourned the meeting at 9:36 a.m. Submitted by: Judy Castleman M E M O R A N D U M DATE: November 1, 2017 TO: Metropolitan Wastewater Management Commission (MWMC) FROM: Troy McAllister, Managing Civil Engineer John Casto, Design and Construction Coordinator SUBJECT: Electrical Distribution System Replacement and Upgrades (Project P80092) - Equipment Pre-purchase ACTION REQUESTED: Approve Resolution 17-14 _____________________________________________________________________ ISSUE Staff requests approval of Resolution 17-14 (Attachment 1), which authorizes staff to procure and execute an equipment contract for the purchase of an Automatic Transfer Switch (ATS) for the Electrical Distribution System Replacement and Upgrades Project P80092. BACKGROUND In August 2016, staff informed the Commission that the medium voltage conductors installed at the treatment plant in the 1980s are at risk of failing due to the type of insulation material used at that time. The MWMC’s on-call consultant, CH2M HILL Engineers, Inc. (CH2M), recommended replacement of the conductors as early as possible to minimize risk of losing power to key treatment processes. In June of 2017, CH2M was awarded the design consultant contract for the project via a formal request for proposals process. DISCUSSION CH2M is proceeding with the design development work that is approximately 20% complete. The design is currently on-schedule and within the contract price. The completed construction bid package is anticipated in March of next year, with the intent of having the P80092 contract signed and construction starting in June of 2018. During project team workshops this year, it has been recommended to pre-purchase the ATS electrical equipment to accommodate the upcoming project construction schedule. The new ATS system will provide the ability to control and feed electricity from two separate substations that energize the treatment facility and help improve MWMC Memo: Electrical Distribution System Replacement and Upgrades (Project P80092) - Equipment Pre-purchase November 1, 2017 Page 2 of 2 resiliency if one substation isn’t functional. Additionally, the ATS installation will provide flexibility during construction to support the 2018 installation of the medium voltage new wiring. CH2M has estimated the ATS lead time for onsite delivery to be 20 to 24 weeks. Therefore, the ATS needs to be ordered to ensure manufacturing in December of 2017 so that it will be available when the construction contract is awarded in June of 2018. The current project schedule estimates the construction phase being five months in duration. If we wait to have the contractor order the ATS once they are under contract, it will likely extend the construction phase by six months or more due to the lead time of the equipment, which would likely add overhead costs to the construction contract. If the equipment is pre-purchased by the MWMC, most of the contractor mark-up can be reduced for the ATS equipment. Staff recommends pre-purchasing the ATS and assigning the equipment contract package to the construction contractor to coordinate installation, system commissioning and product warrant. CH2M has identified at least two manufacturers who produce ATS equipment with the features required for this project. Staff anticipates the ATS equipment bid package with operations/maintenance training and vendor start-up services to be below $325,000. This fits within the current construction estimated budget and is within the P80092 total project budget of $6-million. RECOMMENDATION Staff recommends procurement (pre-purchase) of a goods and services contract for an amount not to exceed $325,000 for an Automatic Transfer Switch for the Electrical Distribution System Replacement and Upgrades Project (P80092). ACTION REQUESTED Consider adoption of Resolution 17-14 authorizing staff to publicly procure and execute a contract for an amount not to exceed $325,000 for an Automatic Transfer Switch for the Electrical Distribution System Replacement and Upgrades Project (P80092). ATTACHMENTS 1. MWMC Resolution 17-14 METROPOLITAN WASTEWATER MANAGEMENT COMMISSION (MWMC) ATTACHMENT 1 Page 1 of 2 RESOLUTION 17-14 ) IN THE MATTER OF CONTRACT ATHORITY ) FOR THE MWMC PROJECT P80092 – ) EQUIPMENT PRE-PURCHASE FOR ) ELECTRICAL DISTRIBUTION SYSTEM UPGRADES WHEREAS, the Budget for Fiscal Year 2017/2018 includes the Electrical Distribution System Replacement and Upgrades (P80092); and WHEREAS, following the approval of Resolution 17-11 the design consultant work is underway by CH2M HILL Engineers, Inc., including scheduling and specifications for procurement; and WHEREAS, during preliminary design and work planning it became apparent that the equipment lead time for the Automatic Transfer Switch (ATS) will impact the projected construction schedule and the design consultant has recommended that the Metropolitan Wastewater Management Commission (MWMC) pre-purchase the ATS equipment; and WHEREAS, the terms of the future construction contract will require the General Contractor to accept the assignment of the MWMC pre-purchased equipment package and execute all contract and project management functions required to assure that all terms of the ATS equipment contract are met by the supplier/vendor; and WHEREAS, pursuant to the MWMC Procurement Rule 137-047-0255 (Competitive Sealed Bidding), staff requests authority to issue an Invitation to Bid for the ATS equipment package; and WHEREAS, the MWMC has appointed a duly authorized Executive Officer for efficient execution of the day-to-day administration of the MWMC business and the Executive Officer may name an authorized designee. NOW, THEREFORE, BE IT RESOLVED BY THE METROPOLITAN WASTEWATER MANAGEMENT COMMISSION THAT: The duly authorized MWMC Executive Officer, or authorized designee, is hereby authorized to: (a) issue an Invitation to Bid ; (b) negotiate and execute a contract with the lowest responsive, responsible Bidder for the pre-purchase of an Automatic Transfer Switch for the P80092 project (Electrical Distribution System Replacement and Upgrades) for an authorized not-to-exceed price of $325,000; and (c) delegate performance of project management functions including, but not limited to, scope changes not to exceed a cumulative total of 15% of the initial contract amount, and management of the contract to ensure the goods and services meet the contract requirements. METROPOLITAN WASTEWATER MANAGEMENT COMMISSION (MWMC) ATTACHMENT 1 Page 2 of 2 ADOPTED BY THE METROPOLITAN WASTEWATER MANAGEMENT COMMISSION OF THE SPRINGFIELD/EUGENE METROPOLITAN AREA ON THE 9TH DAY OF NOVEMBER, 2017. Bill Inge, MWMC President ATTEST: Kevin Kraaz, MWMC Secretary Approved as to form: K. C. Huffman, MWMC Legal Counsel