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HomeMy WebLinkAbout02-10-17_Agenda Packet THE FULL PACKET IS POSTED ON THE WEBSITE www.mwmcpartners.org MWMC MEETING AGENDA Friday, February 10, 2017 @ 7:30 a.m. City of Springfield City Hall, Library Meeting Room 225 Fifth St., Springfield, OR 97477 Please Turn Off Cell Phones 7:30 – 7:35 I. ROLL CALL 7:35 – 7:40 II. CONSENT CALENDAR a. MWMC 1/13/17 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 – 7:55 IV. FY 2016-17 SUPPLEMENTAL BUDGET #3 . . . . . . . . . . . . . . . .Meg Allocco Action Requested: By motion, approve Resolution 17-03 7:55 – 8:15 V. CONSTRUCTION CONTRACT AWARD FOR INCREASE DIGESTION CAPACITY P80084, RESOLUTION 17-02 . . . . Barry Mays/ Troy McAllister Action Requested: By motion, approve Resolution 17-02 awarding the contract and authorizing the MWMC Executive Officer to execute an agreement for the construction of the Increase Digestion Capacity Project P80084 with Slayden Contractors Inc. in the amount of $10,594,018. 8:15 – 8:45 VI. DRAFT FY 2017-18 REGIONAL WASTEWATER PROGRAM CAPITAL BUDGET AND 5-YEAR CAPITAL PLAN . . . . . . . . . . . . . . . . . . . . . . . . . Josh Newman/ Troy McAllister/ Greg Watkins Action Requested: Provide comments for finalization. 8:45 – 8:55 VII. BUSINESS FROM COMMISSION, GENERAL MANAGER, AND WASTEWATER DIRECTOR 8:55 VIII. ADJOURNMENT THE FULL PACKET IS POSTED ON THE WEBSITE www.mwmcpartners.org 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 MEETING MINUTES Friday, January 13, 2017 @ 7:30 a.m. City of Springfield City Hall, Library Meeting Room 225 Fifth St., Springfield, OR 97477 Vice-President Inge opened the meeting at 7:30 a.m. Roll call was taken by Kevin Kraaz. ROLL CALL Commissioners Present: Bill Inge, Doug Keeler, George Poling, Peter Ruffier and Faye Stewart Commissioners Absent: Walt Meyer, Joe Pishioneri Staff in Attendance: Meg Allocco, Todd Anderson, Jolynn Barker, Nate Bell, Katherine Bishop, Dave Breitenstein, Judy Castleman, K.C. Huffman (attorney), Laura Keir, Tonja Kling, Kevin Kraaz, Shawn Krueger, Troy McAllister, Todd Miller, Josh Newman, Anette Spickard, Loralyn Spiro, Matt Stouder, Mark Van Eeckhout, and Greg Watkins Guest: Ryan Pasquarella, Grove, Mueller & Swank, P.C. CONSENT CALENDAR a. MWMC 12/09/16 Meeting Minutes MOTION: IT WAS MOVED BY COMMISSIONER KEELER TO APPROVE THE CONSENT CALENDAR. THE MOTION WAS SECONDED BY COMMISSIONER STEWART. THE MOTION PASSED UNANIMOUSLY 3/0. 2 ABSTAINED (Ruffier & Poling) PUBLIC COMMENT There was no public comment. Matt Stouder, MWMC General Manager, welcomed back George Poling, City of Eugene Councilor, to the Commission. PROPOSED SYSTEM DEVELOPMENT CHARGES (SDC) MODIFICATION Katherine Bishop, ESD Program Manager, stated that the MWMC SDCs were reviewed to ensure equity and fairness pursuant of ORS 223.309. The modification was not a methodology change but rather a refreshing of the Capital Project list, reflecting the change in the revenue bonds, and bringing in the SRF loans that were not previously within the calculation. A written notification was sent out on December 9, 2016 to interested parties regarding the public hearing to be held on January 13, 2017. A link to documents regarding the SDC modification was posted on the MWMC website as well as available at the City of Springfield. A public notice was published in the Register Guard newspaper on January 3, 2017 regarding the public hearing. MWMC Meeting Minutes January 13, 2017 Page 2 of 8 Ms. Bishop stated that each year, on July 1, the MWMC SDCs are adjusted for inflation based on the Engineering News Record (ENR) Cost of Construction Index (CCI). There will be no inflationary adjustment in 2017. The adjustment would have been 3% which is more than what the change will be with this modification. The proposed 2017 SDC Fee Schedule is planned for implementation by the Cities of Springfield and Eugene on March 1, 2017. Mr. Stouder added that staff reached out to the Home Builder’s Association to let them know about the public hearing and about the increase for low strength users and the fact that the increase will be lower than the standard CCI increase. They were appreciative of the information and informed us that they had no concerns at that time. Public Hearing: Vice-President Inge opened the public hearing for the proposed 2017 MWMC SDC schedule. There were no members of the public requesting to speak. Vice-President Inge closed the public hearing. MOTION: IT WAS MOVED BY COMMISSIONER KEELER TO ADOPT RESOLUTION 17-01 TO MODIFY THE CAPITAL PROJECT LIST FOR SDCs AND MODIFY THE FEE SCHEDULE. THE MOTION WAS SECONDED BY COMMISSIONER STEWART. THE MOTION PASSED UNANIMOUSLY 5/0. Ms. Bishop added that Springfield City Council will be looking at these fees at their February 6 meeting and Eugene City Council at their February 13 meeting. March 1, 2017 is the planned implementation date. FY 2015-16 AUDITED FINANCIAL STATEMENTS AND REPORT Meg Allocco, MWMC Accountant, introduced Ryan Pasquarella, from the independent audit firm Grove, Mueller and Swank, P.C. Ms. Allocco stated in October, the budget based results showed MWMC’s revenues were on track and the expenses were under by 4%. At that point, audit adjustments were made to bring things to full accrual, following all the government accounting policies and standards. Mr. Pasquarella stated the MWMC is required to get an audit annually by the state of Oregon because of the amount of money that the MWMC spends. The audit must be performed in accordance with government auditing standards. Because of the debt that MWMC has with the DEQ, another layer is added to the audit. Mr. Pasquarella went over the two-page letter addressed to MWMC’s governing board. It contains a rundown of the audit. There were no issues with management; they were very helpful in getting the information to the audit firm. The Financial Statements are in accordance with generally accepted accounting principles. On page six of the audit report, is the Statements of Revenues, Expenses, and Changes in Net Position. In this report the two expenses, Operations and Maintenance, and Administration, show a significant increase between 2015 and 2016. The increase was due to the net pension liability. The reason for the increase was because both Cities (Springfield and Eugene) implemented new accounting and reporting standards for pensions. To further complicate the matter, the State’s Legislature passed pension reforms in a prior year that resulted in the Cities PERS net pension liability becoming a net pension asset in 2015. MWMC Meeting Minutes January 13, 2017 Page 3 of 8 Mr. Pasquarella said one of the big things that occurred over FY 2015-16 was the MWMC paid off some debt and made an advance refunding on other debt. At the beginning of the fiscal year there was over $73M in bonded debt and at the end of the fiscal year it was down to $32.7M. Over $40M of debt was paid off which caused the overall cash to go down to $30M. Mr. Pasquarella said one other thing to bring to the Commission’s attention was during the audit they discovered some of the capital assets were incorrect. The MWMC replaced the accounting tool used for tracking capital assets and calculating depreciation. As a result, it was discovered that some assets were over-depreciated in prior years resulting in higher depreciation expense and lower net asset value. An adjustment to correct the beginning net position and capital asset and accumulated depreciation was made. The adjustment relates specifically to Gap Reporting rather than the budgetary reporting that happens from day to day. Depreciation is recorded at the end of the year and has no bearing on cash. Ms. Allocco stated that a new accounting tool was being used for tracking capital assets and calculating depreciation. It is a more transparent procedure than what was previously used and has both Eugene and Springfield double checking each other on the MWMC’s assets. Commissioner Ruffier asked if the PERS liability was loaded all in one year. Mr. Pasquarella said yes, the whole liability went on the books this year under long-term liabilities. As the Tier 1 employees start retiring, the MWMC’s liability will go down. Ms. Allocco added it was a new accounting standard that just went into effect; that is why it went on all at once. It will be updated from year to year. Mr. Pasquarella expressed his appreciation of the accounting staff, stating they are very professional. MOTION: IT WAS MOVED BY COMMISSIONER POLING TO ACCEPT THE ANNUAL FINANCIAL REPORT, INCLUDING THE AUDITED FINANCIAL STATEMENTS FOR FY 2015-16. THE MOTION WAS SECONDED BY COMMISSIONER RUFFIER. THE MOTION PASSED UNANIMOUSLY 5/0. FY 2017-18 BUDGET KICK-OFF: KEY OUTCOMES AND PERFORMANCE INDICATORS Mr. Stouder said there was a 2% rate increase in FY 2016-17, which resulted in a 49 cent per month increase for a typical residential customer. The philosophy for the last several years has been small incremental rate increases over time to help pay off the MWMC’s debt. With the bond refunding, the goal is to build the Capital Reserves back. Total revenues are on target year-to- date with SDC revenues performing above target. The expenditures are below budget year-to-date, which is typical for this time of year because it is only halfway through the fiscal year. There are some new hires in positions that were vacant and they are starting at a lower pay grade which results in year-to-date savings. The reserves are healthy and are being maintained at appropriate balances per the Financial Plan. The Capital Reserves are about $33M this year, last year they were about $50M; the difference is due to the bond refunding. The equipment replacement MWMC Meeting Minutes January 13, 2017 Page 4 of 8 reserves are about 11.7M; there will be more detail on this in March. The Insurance reserve is around $515,000 per the Commission’s direction. Key Outcomes: 1. High Environmental Standards 2. Effective and Efficient Fiscal Management 3. Successful Intergovernmental Partnership 4. Maximize Reliability and Useful Life of Regional Assets and Infrastructure 5. Public Awareness and Understanding Mr. Stouder stated that every year, staff looks at the indicators of these key outcomes and makes incremental changes so that the outcomes and indicators are more meaningful. Last year Key Outcome 5 was the focus; trying to help people understand what the MWMC does and raise public awareness. Moving forward, staff intends to start making minor modifications mid-year to make the indicators more meaningful for when we come back to the Commission next year. Major Challenges Ahead: Working to replenish capital reserves and budgeting to be responsive to the current bidding climate. Things are changing in the economy so that we are seeing bids coming in over the engineer’s estimate. Engineer’s estimates continue to climb so staff will budget appropriately. Meeting regulatory and permit requirements by planning for an NPDES Permit renewal and temperature/toxics/mass loads issues. Key Outcomes Status and Work Plan: 1. High Environmental Standards: Dave Breitenstein, Wastewater Director, stated the MWMC has three significant permits that drive the standards; NPDES Waste Discharge permit, 1200Z Stormwater permit, and Air Contaminant Discharge permit. The MWMC has had 10 consecutive years of 100% compliance with the effluent discharge permit. The MWMC has a reclaimed water volume target to reduce the discharge and supporting environmental attributes of the Biocycle Farm. Staff will continue to emphasize work and efforts in the Environmental Management System (EMS). Two key objectives for the EMS program in the coming year will be to continue to reduce power use and to develop a wildlife management policy. The work done at the facilities has an impact on the wildlife such as clearing brush and the use of pesticides; staff wants to manage that impact. 2. Effective and Efficient Fiscal Management: As demonstrated in part by the audited financial statements reported on in the previous presentation. Also to maintain AA insured bond rating which demonstrates strong credit worthiness that is based on the MWMC’s ability to repay its debt. 3. Successful Intergovernmental Partnership: Strive to maintain a high level of collaboration and coordination between Eugene and Springfield staff to have top of the line Pretreatment Programs. Implementation of the annual reporting for the Regional CMOM program. 4. Reliability/Useful Life of Assets: The MWMC uses Maximo, an asset management system to electronically keep track and achieve performance goals in maintenance practices. Staff has embarked on efforts to improve the asset management programs. Recently Eugene and Springfield staffs have been working together on a GAP analysis using Water MWMC Meeting Minutes January 13, 2017 Page 5 of 8 Environment Research Foundation (WERF) Strategic Asset Management (SAM) GAP analysis tool to improve the asset management programs. Commissioner Inge asked if there is some kind of comparative between an industry standard for life expectancy for a piece of equipment versus what the actual life turns out to be. Mr. Breitenstein answered that he is not aware of any. Typically there are so many differences between facilities and agencies and the conditions that they operate under that it is hard to have an accurate estimate. There are some general guidelines for types of equipment, for example pumps – 15 years. There are so many different kinds of pumps that it is hard to make a direct correlation with specific equipment. 5. Public Awareness and Understanding: Mr. Stouder said that staff is planning to refresh the Communication Plan and will bring it to the Commission mid- to late-year to get feedback on the draft. Staff plans to continue the MWMC newsletter and to increase the readership, and to continue the plant tours. About 750 people took the tour last year; staff is looking to keep that number up this year. Three educational videos were launched last year and are on the website. They resulted in an increase in website visits. Staff is looking at how to incorporate social media into the Communication Plan. The MWMC has a new website that is ready to launch, it is being done in coordination with the City of Springfield’s new website. It is expected that both websites will go live this spring. Budget and Rate Assumptions: Personnel Services: Ms. Bishop stated Personnel Services tends to be the largest cost on the operating budget considering the staffing levels it takes to operate a 24/7 operation. Personnel services are based on contracted salary and benefit programs. Springfield has a market study done every 3 years, to compare classifications and salaries to other agencies within the market. The next market survey will be implemented by July 1, 2018. There will not be a lot of change in the upcoming year. Eugene is doing a total compensation review and it will be completed in March or April of 2017 and perhaps implemented in the next fiscal year. The PERS contributions have increased this year significantly. Materials and Services are related to ongoing maintenance of aging infrastructure and the newer expanded infrastructure; this includes contractual services. Capital Outlay for new purchases over $5,000 (for example: motorized vehicles/equipment) Assumes stable revenues Strategic transfers to Capital Fund Capital Improvement Program Plan: Proposed CIP Budget includes 4% annual inflation which takes into consideration the Engineering News Record Construction Cost Index. The index has been averaging around 3.4%. Equipment Replacement Reserve is strong, around $11.7M currently. Reserves funded based on the MWMC Financial Plan and capital program requirements Budget and Rate Strategy: Ms. Bishop stated the strategies are to comply with Bond Covenants greater than 1.25 debt service coverage ratio; to continue use of SDC revenues to pay debt service; to make significant MWMC Meeting Minutes January 13, 2017 Page 6 of 8 capital transfers; and to remain financially positioned for permit renewal and potential construction cost increases, all while maintaining moderate and incremental rate changes. Commissioner Ruffier asked if there was an anticipated significant increase in the SDC revenues. Ms. Bishop replied that there had been a big push around 18 – 24 months ago which was due to student housing in Eugene. There also has been some hotel expansion on the Springfield side (Gateway). Ms. Bishop said it is hard to anticipate because some of the projects are one time in nature as opposed to an ongoing trend. Mr. Stouder added that it is very difficult to forecast SDCs and staff tries to be conservative in estimating the revenue. He said generally, things are more active than they have been in the past several years. Budget Schedule: February 10 – Draft Capital Program presentation March 10 – FY 2017-18 presentation and discussion on the operating budget, revenues and reserves, and rate scenarios April 14 – Budget and User Rate public hearings and options to adopt May 1 – Springfield City Council votes on budget May 8 – Eugene City Council votes on budget May 16 – Lane County Board of Commissioners votes on budget June 9 – Final ratification of FY 2017-18 budget, rates, & capital programs by the MWMC DISCUSSION: Commissioner Poling asked why, in the Key Outcomes, the targets were lowered on some of the indicators. For example the volume of reclaimed water was lowered, the uninsured bond rating was lowered from AA to A, and under Outcome 4, the maximize reliability was lowered from 95% to 90%. Ms. Bishop replied in regards to the uninsured bond rating, the target of A as a credit rating comes from the adopted Financial Plan. It is the target that we do not want to fall below. It has been fortunate that MWMC’s financials have received the AA rating. Mr. Breitenstein replied that the reclaimed water dropping from 91M to 70M gallons was because Unit 1 (Poplar Farm) had recently been harvested and replanted. Younger trees cannot have as much water applied on them; that is why the adjustment was made. On Outcome #4, preventive maintenance completed on time, the target is 90% and the actual is 95%. The target previously was 90%. Mr. Stouder added this is one of the reasons why staff wants to tweak the indicators to be more meaningful and provide a snapshot of what is being done long term as well as short term. He went on to explain, for Outcome 1 the MWMC started a high quality biosolids program which has a policy that is more stringent than what the EPA requires, and the MWMC is able to meet that. But the indicator “compliance with environmental performance requirements of all permits” is not as meaningful because that is something the MWMC has to do and there are penalties for not complying. Mr. Stouder plans to show what is planned, when it is in progress, and when it is completed. Commissioner Keeler said when you transition indicators out because we achieved them consistently, it doesn’t mean they don’t have value. For example, 100% permit compliance, or MWMC Meeting Minutes January 13, 2017 Page 7 of 8 meeting all the requirements of the EMS. Maybe there could be a note put into a brief narrative at the top of the key outcome describing what it is about, to set it as a baseline. Mr. Stouder said he plans on getting feedback from the Commission on what is proposed, if it is acceptable or should be modified and kept. Commissioner Ruffier appreciates the challenge of tweaking performance indicators and goals and coming back for more discussion. He was curious about the timing; would it be before the next fiscal year starts so you can begin tracking the new measures rather than have a gap in a year. Commissioner Ruffier suggested taking one performance measure per meeting. Mr. Stouder replied that they need to have things completed this fiscal year as early as April. Vice-President Inge closed regular session at 8:28 a.m. and opened the executive session. EXECUTIVE SESSION The Metropolitan Wastewater Management Commission met in Executive Session pursuant to ORS 192.660(2)(e) to conduct deliberations with persons designated by the governing body to negotiate real property transactions. Vice-President Inge asked if any representatives of the news media were present or general public; there were none. Staff was allowed to attend the executive session. Vice-President Inge closed the executive session at 9:30 a.m. and opened the regular session. MOTION: IT WAS MOVED BY COMMISSIONER KEELER FOR STAFF LEADERSHIP TO WORK WITH THE PROPERTY OWNER OF THE SUBJECT PROPERTIES TO SEE IF THEY CAN CRAFT A SALE AGREEMENT THAT WOULD BE BROUGHT BACK TO THE COMMISSION FOR REVIEW. THE MOTION WAS SECONDED BY COMMISSIONER STEWART. THE MOTION PASSED UNANIMOUSLY 5/0. BUSINESS FROM COMMISSION, GENERAL MANAGER, AND WASTEWATER DIRECTOR Commission: Commissioner Stewart asked if a report on the Poplar Farm damage which occurred during the ice storm would be given. Mr. Stouder replied that staff had been working with FEMA; documentation and claims have been submitted. He will forward the claim sent to FEMA to the Commission. Mr. Breitenstein will give a brief analysis of the damage assessment. Harvesting Unit 2 is still planned for this summer and it is planned to salvage the downed poplar. Commissioner Stewart stated that since hemp (the fiber) is an approved product to grow, has it been analyzed to see if it would offer any kind of benefit to the Biocycle Farm. Mr. Stouder said he was not aware if hemp was one of the crops that staff looked into, he will follow-up with staff on that request. o Mr. Breitenstein said from an operations point of view, staff has looked at all crops from a high level in terms of what their nitrogen loading rates are. That is why poplar was chosen, hemp doesn’t require as much nitrogen. MWMC Meeting Minutes January 13, 2017 Page 8 of 8 Commissioner Keeler asked about the email address request for constituents. Mr. Stouder replied there is a general email account that requests come to and it is monitored by staff. If a question comes in for one of the Commissioners, it will be forwarded to them. The elected officials serving on the Commission will have their official emails posted on the website. Commissioner Keeler said that was good, he just didn’t want a request to not be responded to. General Manager: Introduced Laura Keir, the new Communication Coordinator. Goshen, Lane County: Galardi Consulting made a records request regarding MWMC data. Items requested included: fixed asset records, current budget and debt service schedule, and capacity and design parameters. They will compile that information and give some options for Goshen to buy into the system. There will be a lot of discussion prior to any decisions being made. When there is information to share, Mr. Stouder will bring it to the Commission. o Commissioner Keeler asked if the Short Mountain’s landfill leachate program is part of the Goshen request. Mr. Stouder and Commissioner Stewart both said they believe it is. Wastewater Director: Ice Storm: The treatment plant did fairly well but staff was busy answering power-bumps. There were at least 13 power-bumps, where everything in the plant loses power and then with each one of those bumps, operators have to assess what came back on and what needs to be restarted. The Cogen system has an auto restart and it worked all 13 times. There was some electrical equipment damage because of the power-spikes and bumps. Staff had to deal with five pump stations. The most problematic one was on Loraine Hwy at the top of Chambers. It was on generator power for quite a while. There was general debris picked up from fallen limbs and some fence damage. The estimates for the FEMA claim, outside the Biocycle Farm, added up to another $100,000 for overtime and equipment costs. o Mr. Stouder added that Eugene, Springfield, EWEB, SUB, as well as others, submitted documentation to the county to make a request to the state to request that the federal government issue a State of Emergency for Lane County. The estimated damage in Lane County was around $9.5 to $10M. If it does get accepted, then MWMC would be potentially eligible up to 75% reimbursement for cost associated with the ice storm. Mr. Stouder will forward the wastewater specific claim to the Commission. ADJOURNMENT Vice-President Inge adjourned the meeting at 9:36 a.m. M E M O R A N D U M DATE: February 3, 2017 TO: Metropolitan Wastewater Management Commission (MWMC) FROM: Meg Allocco, MWMC Accountant SUBJECT: FY 2016-17 Supplemental Budget #3 ACTION REQUESTED: Approve Resolution 17-03 _____________________________________________________________________ ISSUE The purpose of this memo is to request approval of Resolution 17-03 authorizing proposed supplemental budget requests for FY 2016-17. These adjustments will go through the City of Springfield Finance department supplemental budget processes along with supplemental budget #3 for the City. DISCUSSION The medium voltage conductors, along with other components of the electrical distribution system at the Water Pollution Control Facility (WPCF), are in need of replacement and/or upgrade. Staff is evaluating the scope of the project and costs of replacement. In doing so, staff has identified a need for additional planning prior to design in order to integrate the following considerations into the project: Future connected loads associated with planned CIP projects, and Needed emergency electrical outage mitigation optimization measures Accordingly, on October 14, 2016 the Commission approved Resolution 16-13 for a new direct-appoint contract with CH2M, to provide the needed planning services. Resolution 16-13 anticipated that a portion of the consultant contract funding would be transferred from the remaining FY 2016-17 Facilities Plan Engineering Services (P80090) budget to the newly created Electrical Distribution System Replacement and Upgrades project (P80092). The remaining portion would come in as new money requested under a supplemental budget process in early 2017. Originally, staff assumed a request of $77,000 in new money and $22,000 transferred from P80090 to P80092. However, the estimate of required new money was revised downward considering that there was more money available to transfer from P80090 than originally anticipated. In addition to the funding required for the consultant planning Memo: FY 2016-17 Supplemental Budget #3 February 3, 2017 Page 2 of 2 assistance, the total amount of funding needed was adjusted slightly upward to cover administrative costs such as staff time. Staff is now requesting $53,000 of new money, and $72,000 to be transferred from P80090 to P80092 in Supplemental Budget # 3. ACTION REQUESTED Approve, by motion, Resolution 17-03 authorizing the budget actions requested in this memorandum. ATTACHMENTS 1. Resolution 17-03 ATTACHMENT 1 Resolution 17-03 Page 1 of 1 METROPOLITAN WASTEWATER MANAGEMENT COMMISSION RESOLUTION 17-03 ) IN THE MATTER OF APPROVAL OF FISCAL ) YEAR 2016-17 SUPPLEMENTAL BUDGET #3 WHEREAS, the Metropolitan Wastewater Management Commission (MWMC) approved the FY 2016-17 Budget on April 8, 2016 pursuant to Resolution 16-07; WHEREAS, sewer rates and budget amounts for the FY 2016-17 Budget were based upon certain estimates; WHEREAS, the transfer of $72,000 in capital project funding from Facilities Plan Engineering Services (P80090) to Electrical Distribution System Replacement project (P80092) is appropriate to help fund the upgrades; WHEREAS, the increase of $53,000 to the Electrical Distribution System Replacement project (P80092) funded from capital reserves is appropriate to fund the planning services of this project in addition to the transfer from Facilities Plan Engineering; WHEREAS, MWMC has appointed Anette Spickard as its duly authorized Executive Officer for efficient execution of the day-to-day administration of MWMC business. NOW, THEREFORE, BE IT RESOLVED BY THE METROPOLITAN WASTEWATER MANAGEMENT COMMISSION THAT: The FY 2016-17 Supplemental Budget #3 as presented to the MWMC on February 10, 2016, is hereby approved. ADOPTED BY THE METROPOLITAN WASTEWATER MANAGEMENT COMMISSION OF THE SPRINGFIELD/EUGENE METROPOLITAN AREA ON THE 10th DAY OF FEBRUARY, 2017. ___________________________________________ PRESIDENT: Joe Pishioneri ATTEST: _______________________________________ Secretary: Kevin Kraaz Approved as to form: _________________________ MWMC Legal Counsel: K.C. Huffman M E M O R A N D U M DATE: February 3, 2017 TO: Metropolitan Wastewater Management Commission (MWMC) FROM: Barry Mays, Design and Construction Coordinator Troy McAllister, Managing Civil Engineer SUBJECT: Construction Contract Award for Increase Digestion Capacity- Project P80084 ACTION REQUESTED: Approve Resolution 17-02 _____________________________________________________________________ ISSUE Staff requests that the Commission, by motion, approve Resolution 17-02 (attached) awarding the Increase Digestion Capacity, Project P80084 contract to Slayden Constructors, Inc., the low bidder, and authorizing the Executive Officer to enter into a contract for the Total Base Bid and Alternate #1 with Slayden Constructors, Inc. in the amount of $10,594,018. BACKGROUND As planned for in the MWMC 2004 Facilities Plan, staff and consultants have determined that the MWMC needs to increase capacity of the digestion process. The MWMC has three existing anaerobic digesters each with a capacity of one-million gallons, and the Increase Digestion Capacity Project P80084 will add a fourth digester for additional capacity. The project will also be changing the process/system related to cleaning the digesters by way of pumping material to the MWMC offsite biosolids lagoons. On January 24, 2017 a total of seven sealed bids were received by staff and were opened and publicly read aloud. The construction bid results are identified as follows: Memo: Construction Contract Award for Increase Digestion Capacity- Project P80084 February 3, 2017 Page 2 of 3 * Stellar J Corporation’s bid is under review due to inconsistency in the bid form. The apparent low bid submitted by Slayden Constructors, Inc. was reviewed by staff, the design consultant (Brown and Caldwell), and legal counsel (Thorp, Purdy, Jewett, Urness & Wilkinson, P.C.) and found to be in substantial compliance with the bidding requirements. Slayden Constructors, Inc. bid of $10,594,018 (with Alternate #1 for digester tank wall insulation/brick system) is below the design consultant engineer’s estimate of $11.87 million. The fourth digester scope of work and pricing includes additional improvements to the MWMC cogeneration system such as new electrical switch gear, low pressure blower and the waste heat radiators. These cogeneration related items will be funded by the MWMC major capital outlay budgeted at $972,000. The P80084 project approved budget is $16,653,170 for administration, design, permits, construction, etc. plus the cogeneration major capital outlay which totals $17,625,170. The cost of the project appears to be in line with the MWMC October 2016 project update. DISCUSSION The following two options are for consideration by the Commission and includes a staff Recommendation (Option 1). Option 1: Staff recommends approving the attached Resolution 17-02, which authorizes the MWMC Executive Officer, or the Executive Officer’s designee, to enter into a construction contract for the Increase Digestion Capacity, Project P80084 with the lowest responsive bidder, Slayden Constructors, Inc. in the contract amount of $10,594,018. This contract amount, if awarded, includes $227,000 for Alternate #1. Alternate # 1 provides tank wall insulation/brick system for the new digester #4. The insulation helps reduce digester heat loss and the brick veneer matches the look of the existing three digesters in that area. Option 2: Staff would also like to present to the Commission a second option for their consideration. This option would be to reject Alternate #1 and award the contract to Slayden Constructors Inc. for the amount of $10,367,018. Contractor Base Bid Alternate #1 Total Bid Slayden Constructors, Inc.10,367,018$ 227,000$ 10,594,018$ Stellar J Corporation *10,643,018$ 201,000$ 10,844,018$ R&G Excavating, Inc.11,092,018$ 198,000$ 11,290,018$ McClure & Sons, Inc.11,439,000$ 236,400$ 11,675,400$ Pacific Excavation, Inc.12,739,018$ 195,000$ 12,934,018$ Stettler Supply Company 13,349,098$ 230,000$ 13,576,098$ Wildish Building Co.14,129,018$ 220,000$ 14,349,018$ Memo: Construction Contract Award for Increase Digestion Capacity- Project P80084 February 3, 2017 Page 3 of 3 With the Commission’s approval of either option, a notice to proceed is anticipated to be issued March 6, 2017 after the contract elements have been finalized. Construction is anticipated to be substantially completed by September 30, 2018. ACTION REQUESTED Staff requests that the Commission, by motion, approve Resolution 17-02 (attached) awarding the contract and authorizing the MWMC Executive Officer to execute an agreement for the construction of the Increase Digestion Capacity, Project P80084 with Slayden Constructors Inc. in the contract amount of $10,594,018. ATTACHMENTS 1. Resolution 17-02 2. P80084 Bid Tabulation (bid opening on January 24, 2017) 3. Letters from MWMC Legal Counsel and Brown and Caldwell (design consultant) ATTACHMENT 1 Resolution 17-02 Page 1 of 2 METROPOLITAN WASTEWATER MANAGEMENT COMMISSION RESOLUTION 17-02 ) IN THE MATTER OF DELEGATING ) AUTHORITY TO AWARD A CONTRACT ) FOR THE CONSTRUCTION OF ) PROJECT P80084 ) INCREASE DIGESTION CAPACITY WHEREAS, the Metropolitan Wastewater Management Commission (MWMC) advertised for bids on December 12, 2016 for Project P80084, Increase Digestion Capacity; and WHEREAS, the MWMC has budgeted $16,653,170 (P80084) and $972,000 (MWMC major capital outlay) for overall expenses related to administration, design, technical services, and construction for Project P80084 Increase Digestion Capacity (Project); and WHEREAS, on January 24, 2017, staff received a total of seven (7) bids for the Project; and WHEREAS, the apparent low bidder was Slayden Constructors, Inc. (address: 500 Willamette Avenue, Stayton, Oregon 97383) with a total base bid of $10,367,018 and alternative #1 brick/insulation at $227,000; and WHEREAS, the MWMC legal counsel (Thorp, Purdy, Jewett, Urness & Wilkinson, P.C.) has reviewed the bid for compliance with applicable law and determined that Slayden Constructors, Inc. is the low responsive bidder; and WHEREAS, the MWMC design consultant (Brown and Caldwell) has reviewed the technical portion of the bid document from Slayden Constructors, Inc. for the Project and found it to be in substantial compliance with the technical requirements of the specifications; and WHEREAS, pursuant to the MWMC Procurement Rule 137-049-0395 (3), the award of the contract shall become final if no bid protest are received within seven (7) calendar days after the date of the Notice of Intent to Award the construction contract; and WHEREAS, the MWMC has appointed a duly authorized Executive Officer for efficient execution of the day-to-day administration of the MWMC business. NOW, THEREFORE, BE IT RESOLVED BY THE METROPOLITAN WASTEWATER MANAGEMENT COMMISSION THAT; The duly authorized Executive Officer of the MWMC, or its authorized designee, is hereby authorized, 1) to enter into a Contract for construction services for Project P80084, Increase Digestion Capacity for a contract price of $10,594,018; and 2) to execute or ATTACHMENT 1 Resolution 17-02 Page 2 of 2 designate qualified staff to execute all contract and project management functions including, but not limited to, issuance of notices to proceed, contract changes not to exceed a cumulative total of 15% (or $1,589,102) of the lump sum fee listed above, and to manage the contract to ensure the products and services meet the contract specifications. ADOPTED BY THE METROPOLITAN WASTEWATER MANAGEMENT COMMISSION OF THE SPRINGFIELD/EUGENE METROPOLITAN AREA ON THE 10TH DAY OF FEBRUARY, 2017. ___________________________________ Joe Pishioneri, MWMC President ATTEST: _______________________________ Kevin Kraaz, MWMC Secretary Approved as to form: _______________ MWMC Attorney Bids Due: January 24, 2017 @ 2:00 pm Bid Opening: January 24, 2017 @ 4:00 pm Constructors & Sons, Inc.Excavating Supply Co.Excavating Inc.Building Co. Project: P80084 - Increased Digestion Capacity Wildish Slayden * Stellar J McClure R&G Stettler Pacific January 30, 2017 Mr. Barry Mays City of Springfield Metropolitan Wastewater Management Commission 225 Fifth Street Springfield OR 97477 1053-147149 Subject: Increase Digestion Capacity Project Bid Compliance and Award Recommendation Dear Mr. Mays: We have completed our review of the bids for construction of MWMC’s Increase Diges- tion Capacity Project #P80084. Seven bids were received by MWMC on January 24, 2017. The following bid documents were evaluated by Brown and Caldwell and are con- sidered to be complete and in accordance with the specified requirements: Specified requirement Submitted, complete and acceptable? Specified requirement Submitted, complete and acceptable? Section 00151 Yes Addendum 1 Yes Section 00157 Yes Addendum 2 Yes Section 00162 Yes Addendum 3 Yes Section 00165 Yes Section 00161 Yes Section 00170 Yes Based on our evaluation of Slayden’s bid submission, we find Slayden to be the respon- sible bidder. It is our recommendation that MWMC proceed with issuing a notice of in- tent to award the contract to Slayden. Very truly yours, Brown and Caldwell Tim Mills, Project Engineer Portland TAM:wp cc: Mr. Tom Lebo, Brown and Caldwell Mr. Bryan Paulson, Brown and Caldwell ATTACHMENT 3 Page 1 of 2 THORP PURDY JEWETT URNESS WILKINSON, P.C. ATTORNEYS AT LAW K.C. Huffman ~ Shareholder 1011 HARLOW ROAD, SUITE 300 SPRINGFIELD, OREGON 97477 PHONE: (541) 747-3354 FAX: (541) 747-3367 E-MAIL ADDRESS: kchuffman@thorp-purdy.com WEBPAGE: WWW.THORP-PURDY.COM MARVIN O. SANDERS (1912-1977) JACK B. LIVELY (1923-1979) JILL E. GOLDEN (1951-1991) January 31, 2017 & Sent via Email: bmays@springfield-or.gov Barry Mays Metropolitan Wastewater Management Commission 225 North 5th Street Springfield, OR 97477 Re: Bids Received for Contract P80084 – Increase Digestion Capacity. Our File No. 434-365 Dear Barry: We have reviewed copies of the three (3) lowest Bids submitted to the MWMC and delivered to us for the Increase Digestion Capacity Project - P80084. Slayden Constructors, Inc. (Slayden), Stellar J Corporation (Stellar J), and R&G Excavating, Inc. (R&G) were the three lowest bidders. Of the three (3) Bids, the apparent low bidder is Slayden at $10,594,018 which is below the engineer’s estimate of $11,870,000. Slayden’s Bid appears to be in substantial compliance with the bidding requirements, including timely submission of the First-Tier Subcontractors List. Upon receipt of a favorable recommendation from the design consultant regarding technical compliance with the Contract Documents, and upon confirmation by MWMC that Slayden meets the responsibility requirements set forth in ORS 279C.375(3), it is our recommendation that the Commission may properly make a final award of this Contract to Slayden Constructors, Inc. provided no protests are filed within the applicable time period. The award of this Contract shall be final upon the following two conditions being satisfied. First, no protests are filed during the seven (7) calendar day protest period established by ORS 279C.375(2). Second, at its Feb. 10, 2017 meeting, the Commission votes to award the contract to Slayden. The first day of the protest period begins on Feb. 1, 2017, which is the day after the Conditional Notice of Intent to Award was provided and the last day of the protest period is Feb. 7, 2017. If a protest is timely filed then award of the Contract will be delayed until the protest is resolved. Finally, this letter will serve as your reminder the MWMC must submit the Responsibility Determination Form required by ORS 279C.375(3) to the CCB within 30 calendar days after the final award of Contract. Thank you. Sincerely, THORP, PURDY, JEWETT, URNESS & WILKINSON, P.C. K.C. Huffman ATTACHMENT 3 Page 2 of 2 M E M O R A N D U M DATE: February 3, 2017 TO: Metropolitan Wastewater Management Commission (MWMC) FROM: Troy McAllister, Managing Civil Engineer Josh Newman, Managing Civil Engineer Greg Watkins, AIC Operations Plant Manager SUBJECT: Draft FY 2017-18 Regional Wastewater Program (RWP) Capital Budget and 5-Year Capital Plan ACTION REQUESTED: Commission review and input for finalization of the Draft FY 2017-18 RWP Capital Budget and 5-Year Capital Plan _____________________________________________________________________ ISSUE The first draft of the FY 2017-18 RWP Capital Budget and 5-Year Capital Plan is attached for Commission review and comment. Staff will provide a presentation of the RWP Capital Budget and 5-Year Capital Plan at the February 10, 2017 MWMC meeting. DISCUSSION The Capital Program budget has two major components: 1) The Capital Improvement Program (CIP) budget, and 2) the Asset Management Capital Program (AMCP) budget. The Capital Program section of the draft FY 2017-18 MWMC budget document (attached) provides a detailed discussion of these budgets including: An overview of the RWP Capital Program and objectives An overview of the RWP Capital Program funding and financial planning processes and methods A description of the CIP status and FY 2017-18 CIP Budget A description of the AMCP status and FY 2017-18 AMCP Budget A summary of the 5-Year Capital Plan The proposed draft FY 2017-18 budget document anticipates the following: CIP FY 2017-18 proposed budget $33,641,000 AMCP FY 2017-18 proposed budget $1,903,000 CIP 5-year planning subtotal $68,526,000 AMCP 5-year planning subtotal $11,807,000 RWP Capital Program 5-year planning total $80,333,000 Memo: Draft FY 2017-18 RWP Capital Budget & 5-Year Capital Plan February 3, 2017 Page 2 of 2 At the February 10, 2017 meeting, staff will provide a presentation summarizing the proposed FY 2017-18 Capital Program budget and the 5-Year Capital Plan. Staff will incorporate into the final draft of the Capital Program Budget comments received from the Commission. Staff will then present the final draft of the RWP Capital Budget at a later Commission meeting, along with the first review of the FY 2017-18 Operating Budget. ACTION REQUESTED Staff requests that the Commission review the draft FY 2017-18 Capital Program Budget and the 5-Year Capital Plan and provide comments for finalization. ATTACHMENTS 1. Draft FY 2017-18 Regional Wastewater Program Capital Budget Metropolitan Wastewater Management Commission Capital Improvement Program REGIONAL WASTEWATER PROGRAM CAPITAL PROGRAMS Overview The Regional Wastewater Program (RWP) includes two components: the Capital Improvement Program (CIP) and the Asset Management Capital Program (AMCP). The FY 17-18 CIP Budget, the FY 17-18 AMCP Budget, and the associated 5-Year Capital Plan are based on the 2004 MWMC Facilities Plan (2004 FP) and the 2014 Partial Facilities Plan Update. The 2004 FP was approved by the MWMC, the governing bodies of the City of Eugene, the City of Springfield, Lane County, and the Oregon Department of Environmental Quality (DEQ) in 2004. The 2004 FP and its 20-year capital project list was the result of a comprehensive evaluation of the regional wastewater treatment facilities serving the Eugene-Springfield metropolitan area. The 2004 FP built on previous targeted studies, including the 1997 Master Plan, 1997 Biosolids Management Plan, 2001 Wet Weather Flow Management Plan (WWFMP), and the 2003 Management Plan for a dedicated biosolids land application site. The 2004 FP was intended to meet changing regulatory and wet weather flow requirements and to serve the community’s wastewater capacity and treatment needs through 2025. Accordingly, the 2004 FP established the CIP project list to provide necessary facility enhancements and expansions over the planning period. The CIP is administered by the City of Springfield for the MWMC. The AMCP implements the projects and activities necessary to maintain functionality, lifespan, and effectiveness of the MWMC facility assets on an ongoing basis. The AMCP is administered by the City of Eugene for the MWMC and consists of three sub-categories: Equipment Replacement Program Major Rehabilitation Program Major Capital Outlay The MWMC has established these capital programs to achieve the following RWP objectives: Compliance with applicable local, state, and federal laws and regulations Protection of the health and safety of people and property from exposure to hazardous conditions such as untreated or inadequately treated wastewater Provision of adequate capacity to facilitate community growth in the Eugene-Springfield metropolitan area consistent with adopted land use plans Construction, operation, and management of the MWMC facilities in a manner that is as cost-effective, efficient, and affordable to the community as possible in the short and long term Implementation of the Citizens Advisory Committee recommendations, which represent diverse community interests, values and involvement, and that have been adopted by the Commission as the MWMC’s plans and policies Mitigation of potential negative impacts of the MWMC facilities on adjacent uses and surrounding neighborhoods (ensuring that the MWMC facilities are “good neighbors” as judged by the community) Metropolitan Wastewater Management Commission Capital Improvement Program Capital Program Funding and Financial Planning Methods and Policies This annual budget document presents the FY 17-18 CIP Budget, the FY 17-18 AMCP Budget, and 5-Year Capital Plan which includes the CIP and AMCP Capital Plan. The MWMC CIP financial planning and funding methods are in accordance with the financial management policies put forth in the MWMC 2005 Financial Management Plan. Each of the two RWP capital programs relies on funding mechanisms to achieve RWP objectives described above. The CIP is funded primarily through proceeds from revenue bond sales, system development charges, and transfers from the Operating Fund to Capital Reserves. The AMCP is funded through wastewater user fees. In addition to revenue bond sales, financing for qualified CIP projects was also secured through the State of Oregon Department of Environmental Quality (DEQ) Clean Water State Revolving Fund (CWSRF) loan program. From 2008-2010, the MWMC secured several CWSRF loan agreements totalling $20.8 million. These 20-year loans provide the MWMC below-market interest rates, along with additional financial benefits, including: $450,000 in “Sponsorship” funding allocated for riparian shade tree planting projects to help address the MWMC’s pending thermal load obligations. The financing of these watershed-based projects is made available through the CWSRF program Sponsorship Option, which provides funding to the borrower to address nonpoint source water quality solutions through a reduced interest rate. The interest rate reduction allows the MWMC to invest in watershed improvements using money that would have otherwise been paid as interest on the loan. $4 million funded through the American Reinvestment and Recovery Act (ARRA, or “Stimulus”). The ARRA funding provided 50% of the loan in principal forgiveness (not requiring repayment), and the remaining 50% of principal payment bearing 0% interest. This resulted in $2 million of net revenue to the CIP in addition to interest savings. The RWP’s operating fund is maintained to pay for operations, administration, debt service, equipment replacement contributions and capital contributions associated with the RWP. The operating fund derives the majority of its revenue from regional wastewater user fees that are collected by the City of Eugene and City of Springfield from their respective customers. In accordance with the MWMC 2005 Financial Plan, funds remaining in excess of budgeted operational expenditures can be transferred from the Operating Fund to the Capital Reserve fund. The Capital Reserve accumulates revenue to help fund capital projects, including major rehabilitation, to reduce the amount of borrowing necessary to finance capital projects. The AMCP consists of three programs managed by the City of Eugene and funded through regional wastewater user fees: The Equipment Replacement Program, which funds replacement of equipment valued at or over $10,000 but less than $200,000; The Major Rehabilitation Program, which funds rehabilitation of the MWMC infrastructure such as roof replacements, structure coatings, etc.; and the Major Capital Outlay Program for capital items (new or replacement) with costs greater than $200,000. The MWMC assets are tracked throughout their Metropolitan Wastewater Management Commission Capital Improvement Program lifecycle using asset management tracking software. Based on this information, the three AMCP program annual budgets are established and projected for the 5-Year Capital Plan. For planning purposes, the MWMC must consider market changes that drive capital project expenditures. Specifically, the MWMC capital plan reflects projected price changes over time that affect the cost of materials and services. Until about 2003, the 20-city average Engineering News Record Construction Cost Index (ENRCCI) served as a good predictor for future inflation and was used for projecting the MWMC’s construction costs. Accordingly, construction cost projections considered in the 2004 FP were based on January 2004, 20-city average ENRCCI. However, in the period 2004 through 2008, construction inflation accelerated nationally with local construction cost inflation accelerating even faster than the national average. City of Springfield staff identified this trend in 2005 and subsequently modified their inflationary projection methodology accordingly. In early 2006, the MWMC hired the consulting firm CH2M to perform a comprehensive update of project cost estimates. Following the 2006 update, the RWP’s CIP assumed a general price increase of 5% per-year over the planning period. However, the MWMC continues to monitor inflationary trends to inform our forecasting of capital improvement costs. Accordingly, based on historical inflationary rates from 2006 through 2016, capital project budgets now reflect a 4% annual inflationary factor in the FY 17-18 Budget and 5-year Capital Plan. Regional Wastewater Capital Program Status and Budget CIP Project Status and Budget The FY 17-18 CIP Budget is comprised of the individual budgets for each of the active (carryover) or starting (new) projects in the first year of the 5-Year Capital Plan. The total of these FY 17-18 project budgets is $33,641,000. Each capital project represented in the FY 17-18 Budget is described in detail in a CIP project sheet that can be found at the end of this document. Each project sheet provides a description of the project, the project’s purpose and driver (the reason for the project), the funding schedule for the project, and the project’s expected final cost and cash flow. For those projects that are in progress, a short status report is included on the project sheet. Metropolitan Wastewater Management Commission Capital Improvement Program Completed Capital Projects In FY 16-17, the following capital projects are projected to be completed and closed out. No CIP project sheets are included for these projects because there is no expected carryover of project funds to FY 17-18. Repair/Replacement of Biosolids Force Main Sodium Hypochlorite Conversion Capacity Management Operations and Maintenance (CMOM) Carryover Capital Projects All or a portion of remaining funding for active capital projects in FY 16-17 is carried forward to the FY 17-18 Budget. The on-going carryover projects are: Increase Digestion Capacity Operations & Maintenance Building Improvements Electrical Distribution System Replacement and Upgrades1 Thermal Load Mitigation: Pre-Implementation Thermal Load Mitigation: Implementation 1 Poplar Harvest Management Services Decommissioning WPCF Lagoon Facilities Plan Engineering Services Overall, the budgeting for these projects follows, and is consistent with, the 2006 CH2M estimated cost of the listed capital projects and new information gathered during design development. New Projects No new projects are anticipated for the MWMC FY 17-18 Capital Budget. 1 The Electrical Distribution System Replacement and Upgrades Project was budgeted in FY 16-17 through Supplemental Budget #3 Metropolitan Wastewater Management Commission Capital Improvement Program FY 17-18 Capital Budget Summary (Exhibit 12) Exhibit 12 below displays the adjusted budget and end-of-year expenditure estimates for FY 16-17, the amount of funding projected to be carried over to FY 17-18 and additional funding for existing and/or new projects in FY 17-18. FY 17-18 Asset Management Capital Project Status and Budget The AMCP consists of the following three programs: Equipment Replacement Major Rehabilitation Major Capital Outlay Summary of FY 17-18 MWMC Construction Program Capital Budget FY 16-17 ADJUSTED BUDGET FY 16-17 ESTIMATED ACTUALS FY 16-17 CARRYOVER TO FY 17-18 NEW FUNDING FOR FY 17-18 TOTAL FY 17-18 BUDGET Projects to be Completed in FY 16-17 Biosolids Force Main Rehab 50,000 0 0 0 0 Sodium Hypochlorite Conversion 50,000 16,000 0 0 0 Capacity Mgmt Operations Maint (CMOM)45,000 5,000 0 0 0 Projects to be Carried Over to FY 17-18 Increase Digestion Capacity 14,563,665 1,029,665 13,534,000 0 13,534,000 Operations & Maint Building Improvements 13,873,253 1,353,253 12,520,000 0 12,520,000 Electrical Distribution System Replace / Upgrade 125,000 125,000 0 5,875,000 5,875,000 Thermal Load Mitigation: Implementation 1 (1)190,550 144,894 46,000 984,000 1,030,000 Poplar Harvest Management Services 798,712 78,910 330,000 0 330,000 Thermal Load Mitigation: Pre-Implementation 291,527 98,073 180,000 0 180,000 Decommissioning WPCF Lagoon 479,650 37,650 92,000 0 92,000 Facilities Plan Engineering Services 58,772 58,772 0 80,000 80,000 TOTAL Capital Projects $30,526,129 $2,947,217 $26,702,000 $6,939,000 $33,641,000 Major Capital Outlay Carried Over to FY 17-18 Biogas Cogeneration (2)1,652,979 1,030,979 622,000 0 622,000 TOTAL Major Capital Outlay $1,652,979 $1,030,979 $622,000 $0 $622,000 Notes: (1) Thermal Load Mitigation: Implementation 1 budget includes Mill Race Sponsorship ($200,000) and Cedar Creek Sponsorship ($250,000). (2) Biogas Cogeneration is a multi-year Major Capital Outlay project that includes connectivity with the Increase Digestion Capacity project. EXHIBIT 12 Metropolitan Wastewater Management Commission Capital Improvement Program The FY 17-18 budget and status of each program is described below. Equipment Replacement Program - Budget The FY 17-18 Capital Programs budget includes $715,000 in Equipment Replacement purchases that are identified on the table below. Bar Screens. Replacement of 4 bars screens in pretreatment. Fleet Replacement. An assessment of age, mileage, hours of operation, and maintenance costs supports the replacement of one electric cart, two utility pickup trucks, one utility cart, and one sweeper broom attachment. Clarifier Drive Unit. Replace drive unit on #3 primary clarifier. Digester Dilution Water Pump. Replacement of 27 year old progressive cavity pump. Autoclave. Replacement of 30 year old lab autoclave. Digester Drain Grinder. Replacement of 22 year old digester drain grinder. Plotter Printer. Replace large plotter printer. Project Description FY 17-18 Budget Bar Screens (4)240,000 Fleet Replacement (5)217,000 Clarifier Drive Unit 110,000 Digester Dilution Water Pump, Progressive Cavity 80,000 Autoclave 30,000 Digester Drain Grinder 25,000 Plotter Printer 13,000 Total $715,000 Equipment Replacement Metropolitan Wastewater Management Commission Capital Improvement Program Major Rehabilitation Program - Budget The FY 17-18 Capital Programs budget includes $566,000 for Major Rehabilitation projects that are identified on the table below. Signal and Network Cabling, Building Improvement Projects. Replace signal and network cabling infrastructure and devices during the building improvement project. Upgrade cables and network equipment to current network standards. Air Drying Bed Resurfacing. The biosolids drying process takes place on 13 asphalt drying beds over a 25 acre area. The beds have been on a rotational schedule for resurfacing to extend their useful life. In FY17-18 bed #13 will be resurfaced. Secondary Clarifier Rake Arms. Sandblast and recoat areas of corrosion with a three layer coating process. Rehabilitation plan is to recoat two arms per year until all 10 arms have been recoated. Influent Pump Discharge Coating. Recoating to prevent corrosion and prolong life. Biosolids Management Facility (BMF) Controls Evaluation. Request is for professional services to evaluate the state of automation at BMF and make recommendations on how to improve the stability and maintainability of the process control and communication systems. Operations/Maintenance Building Improvements. This expenditure will go towards miscellaneous improvements, repairs, and renovations to improve the functionality and usefulness of existing buildings. Air Drying Beds Crack/Fog Sealing (all 13 beds). Provides a protective seal on the surface of asphalt drying beds to maximize useful life. LED Pole Lighting. Purchase and installation of 22 LED pole mounted lights to finish replacing the remaining HID high pressure sodium lights. Project Description FY 17-18 Budget Signal and Network Cabling, Bldg Improvement Projects 156,000 Air Drying Bed Resurfacing (bed #13)115,000 Secondary Clarifier Rake Arms Coating 80,000 Influent Pump Discharge Coating 75,000 BMF Controls Evaluation 50,000 Operations / Maintenance Building Improvements 50,000 Air Drying Beds Crack / Fog Sealing (all 13 beds)25,000 LED Pole Lighting 15,000 Total $566,000 Major Rehabilitation Metropolitan Wastewater Management Commission Capital Improvement Program Major Capital Outlay - Budget The FY 17-18 Capital Programs budget includes $622,000 for the Major Capital Outlay items identified on the table below. Electrical Swith Gear. Construction and engineering services to install new electrical switch gear to increase load capacity for the engine generator and the new 4th digester. Asset Management Capital Budget Summary The following table summarizes the FY 17-18 Asset Management Capital Program Budget by project type. 5-Year Capital Plan (Exhibit 13) For each fiscal planning cycle, only the first year of budget authority is appropriated. The remaining four years of the CIP and AMCP Capital Plans are important and useful for fiscal and work planning purposes. However, it is important to note that the funds in the outer years of the Capital Plan are only planned and not appropriated. Also, the full amount of obligated multi-year project costs is often appropriated in the first year of the project, unless a smaller subset of the project, such as project design, can be identified and funded without budgeting the full estimated project cost. For these multi-year contracts, unspent funds from the first fiscal year will typically be carried over to the next fiscal year until the project is completed. Accordingly, the RWP Capital Plan presented herein is a subsequent extension of the plan presented in the adopted FY 16-17 Budget that has been carried forward by one year. However, changes to the plan typically occur from year to year as more information becomes available. In addition to these yearly adjustments, RWP staff were further informed by a Partial Facilites Plan Update that was completed in June of 2014. Those changes were reflected in the MWMC FY 16-17 budget and continue forward in the FY 17-18 for the 5-Year Capital Plan. Project Description FY 17-18 Budget Biogas Cogeneration Electrical Switch Gear 622,000 Total $622,000 Major Capital Outlay Capital Project Type FY 17-18 Budget Equipment Replacement 715,000 Major Rehabilitation 566,000 Major Capital Outlay 622,000 Total $1,903,000 Asset Management Capital Project Budget Summary Metropolitan Wastewater Management Commission Capital Improvement Program Exhibit 13 displays the MWMC 5-Year Capital Plan programs budget, which includes $68,526,000 in planned capital projects and $11,807,000 planned asset management capital projects for an overall 5-Year Capital Plan Budget of $80,333,000. FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 TOTAL CAPITAL PROJECTS Biosolids Management Poplar Harvest Management Services 330,000 680,000 380,000 90,000 90,000 1,570,000 Non-Process Facilities and Facilities Planning Facility Plan Engineering Services 80,000 85,000 90,000 100,000 100,000 455,000 Comprehensive Facility Plan 200,000 820,000 1,070,000 2,090,000 Conveyance Systems Glenwood Pump Station 1,200,000 1,200,000 Plant Performance Improvements Increase Digestion Capacity 13,534,000 13,534,000 Operations & Maintenance Building Improvements 12,520,000 12,520,000 Electrical Distribution System Replace / Upgrade 5,875,000 5,875,000 Thermal Load Mitigation: Implementation 1 (1)1,030,000 1,030,000 1,530,000 2,010,000 2,010,000 7,610,000 Thermal Load Mitigation: Pre-Implementation 180,000 100,000 280,000 Decommissioning WPCF Lagoon 92,000 5,200,000 5,292,000 Aeration Basin Improvements - Phase 2 4,300,000 6,000,000 5,800,000 16,100,000 Tertiary Filtration - Phase 2 2,000,000 2,000,000 TOTAL CAPITAL PROJECTS $33,641,000 $8,495,000 $7,120,000 $9,270,000 $10,000,000 $68,526,000 ASSET MANAGEMENT Equipment Replacement 715,000 1,600,000 2,080,000 1,930,000 1,240,000 7,565,000 Major Rehab 566,000 1,157,000 707,000 644,000 546,000 3,620,000 Major Capital Outlay(2)622,000 622,000 TOTAL ASSET MANAGEMENT $1,903,000 $2,757,000 $2,787,000 $2,574,000 $1,786,000 $11,807,000 TOTAL CAPITAL IMPROVEMENTS $35,544,000 $11,252,000 $9,907,000 $11,844,000 $11,786,000 $80,333,000 (1) Thermal Load Mitigation: Implementation 1 budget includes Mill Race Sponsorship ($200,000) and Cedar Creek Sponsorship ($250,000). (2) Biogas Cogeneration is a multi-year Major Capital Outlay project that includes connectivity with the Increase Digestion Capacity project. EXHIBIT 13 Regional Wastewater 5-Year Capital Programs Note: Metropolitan Wastewater Management Commission Capital Improvement Program INCREASE DIGESTION CAPACITY Description: Installation of a fourth digester for expanded production of Class B biosolids. This project also included supporting the plant-wide landscaping construction work that was completed in December of 2012. Status: As of January 9, 2017, the project to Increase Digestion Capacity is in the bidding phase for a fourth digester and construction should start in spring of 2017. The MWMC has three existing digesters. Justification: Continue to meet the requirements for Class B digestion with the ability to take one digester out of service for cleaning and/or repairs. Project Driver: Addresses the need for anaerobic digestion capacity. The 2004 MWMC Facilities Plan considers an option to upgrade the existing digestion process to meet Class A biosolids standards as a strategy to secure a wider range of beneficial end-use options and increase program flexibility. Since that time, the MWMC has effectively expanded beneficial application of Class B biosolids with expansion of the Biocycle Poplar Farm, and through working with private sector end-users. Project Trigger: Estimates indicate that expanded digestion facilities will be needed by 2018. Improvement SDC Eligibility: 54.3% Estimated Project Cost: $16,653,170 (funding for administration, design, permits, construction, etc.) Estimated Cash Flow: FY 11-12 = $139,028; FY 12-13 = $44,142; FY 13-14 = $0; FY 14-15 = $312,932 FY 15-16 = $1,593,403; FY 16-17 = $1,029,665; FY 17-18 = $9,295,000; FY 18-19 = $4,239,000 Expenditure/Category: Prior Years 2016-17 Est. Act. 2017-18 2018-19 2019-20 2020-21 2021-22 Total Design/Construction $2,089,505 $1,029,665 $13,534,000 $0 $0 $0 $0 $16,653,170 Other $0 $0 $0 $0 $0 $0 $0 $0 Total Cost $2,089,505 $1,029,665 $13,534,000 $0 $0 $0 $0 $16,653,170 Metropolitan Wastewater Management Commission Capital Improvement Program OPERATIONS & MAINTENANCE BUILDING IMPROVEMENTS Operations Building Maintenance Building Aerial Maintenance Building ISC Modular Building Description: This project will update and expand the Operations and Maintenance (O&M) support facilities at the Water Pollution Control Facility (WPCF). The support facilities to be updated and expanded include the Maintenance Building and Administrative/Operations Building. In addition, a new water quality laboratory building will be constructed where the temporary ISC building is currently located after it is removed. Status: As of January 9, 2017: The architectural consultant is finalizing the design package which includes modifications and additions to the Maintenance and Administration/Operations Buildings and the design of a new water quality laboratory building. The project is anticipated to have the construction bidding phase in February/March of 2017. Justification: The original design and construction of the O&M Buildings at the WPCF was completed in the late 1970s and early 1980s. Since that time, use of the O&M Buildings have changed substantially due to modifications in the workforce, advancing technology, regulatory changes, and an increase in staff to support the MWMC mission of cleaning water. Lastly, the ISC modular building was installed as a temporary structure in 1996 and has since reached the end of its useful life. Project Driver: The need to update and/or replace the existing O&M support facilities is driven by the need to provide a safe and efficient work environment for WPCF staff. Many of the planned changes stem from a changing wastewater/environmental business as a result of changing regulations since the WPCF was original constructed in the early 1980’s. Project Trigger: Expansion and changes needed for functionality and safety. Estimated Project Cost: $14,900,000 Improvement SDC Eligibility: 20.6% Estimated Cash Flow: FY 14-15 = $180,833; FY 15-16 = $845,914; FY 16-17 = $1,353,253; FY 17-18 = $8,800,000; FY 18-19 = $3,300,000; FY 19-20 = $420,000 (estimated cash flow related to administration, design, permits, construction, etc.) Expenditure/Category: Prior Years 2016-17 Est. Act. 2017-18 2018-19 2019-20 2020-21 2021-22 Total Design/Construction $1,026,747 $1,353,253 $12,520,000 $0 $0 $0 $0 $14,900,000 Other $0 $0 $0 $0 $0 $0 $0 $0 Total Cost $1,026,747 $1,353,253 $12,520,000 $0 $0 $0 $0 $14,900,000 Metropolitan Wastewater Management Commission Capital Improvement Program ELECTRICAL DISTRIBUTION SYSTEM REPLACEMENT AND UPGRADES Description: This project provides the planning, design and construction for the replacement of electrical distribution system components at the Water Pollution Control Facility (WPCF). In addition, some of the components may be upsized to better accommodate future load increases anticipated with the implementation of future Capital Program projects. Finally, this project assesses and provides resources to better address unplanned power outages as may occur periodically. Status: This project is currently in the planning phase. Justification: Provide reliable electrical power supply to the treatment processes needed to meet the MWMC’s NPDES permit. Project Driver: The medium voltage conductors and some of the associated equipment has reached the end of useful life and is increasingly at risk of failure Project Trigger: This project is being scheduled for earliest possible implementation Project Type: 100% Performance Improvement SDC Eligibility: 0% Estimated Project Cost: $6,000,000 Estimated Cash Flow: FY 16-17 = $125,000; FY-17-18 = $4,440,000; FY 18-19 = $1,435,000 Expenditure/Category: Prior Years 2016-17 Est. Act. 2017-18 2018-19 2019-20 2020-21 2021-22 Total Design/Construction $0 $0 $5,875,000 $0 $0 $0 $0 $5,875,000 Other $0 $125,000 $0 $0 $0 $0 $0 $125,000 Total Cost $0 $125,000 $5,875,000 $0 $0 $0 $0 $6,000,000 Metropolitan Wastewater Management Commission Capital Improvement Program THERMAL LOAD MITIGATION – IMPLEMENTATION 1 Description: This project implements thermal load mitigation projects strategized for regulatory compliance and additional environmental and community benefits. The projects may include recycled water use expansion at MWMC facilities and/or extension of recycled water services to community partners, water quality trading credit strategies through shade credit investments, and collaborative partnerships for permit compliance. The recycled water projects may include additional treatment, disinfection, pumping, pipeline, and distribution/irrigation systems. Status: Pilot-scale riparian shade projects are currently being implemented under a 25-year contract agreement with The Freshwater Trust. Additional project opportunities are being evaluated for future implementation under the Thermal Load Mitigation: Pre- Implementation Project. Justification: Meet future thermal load permit limits and improve water quality. Implementation of the thermal load compliance strategy developed under pre-implementation planning phase. Project Driver: Address NPDES permit thermal load compliance related to Willamette River total maximum daily loads (TMDL) temperature requirements. Project Trigger: Project implementation necessary for ongoing compliance with Oregon’s temperature standard. Project Type: 100% Performance Improvement SDC Eligibility: 26% Estimated Project Cost: $8,032,184 Estimated Cash Flow: FY 13-14 = $78,925; FY 14-15 = $87,116; FY 15-16 = $111,879; FY 16-17 = $144,894; FY 17-18 = $1,030,000; FY 18-19 = $1,030,000; FY 19-20 = $1,530,000; FY 20-21 = $2,010,000; FY 21-22 = $2,010,000 Expenditure/Category: Prior Years 2016-17 Est. Act. 2017-18 2018-19 2019-20 2020-21 2021-22 Total Design/Construction $277,920 $144,894 $1,030,000 $1,030,000 $1,530,000 $2,010,000 $2,010,000 $8,032,814 Other $0 $0 $0 $0 $0 $0 $0 $0 Total Cost $277,920 $144,894 $1,030,000 $1,030,000 $1,530,000 $2,010,000 $2,010,000 $8,032,814 Metropolitan Wastewater Management Commission Capital Improvement Program POPLAR MANAGEMENT SERVICES Description: The Biocycle Farm comprises nearly 400 acres of hybrid poplar trees, which were planted as three management units (MUs). The MUs were initially planted in 2004, 2007, and 2009 and are managed on regulated 12-year rotations. This project develops a harvest management plan for the Biocycle Farm through market collaboration and refinement of poplar harvest and planting practices. The project ensures the timely harvest of the initial plantings in each MU within the regulatory 12-year rotation limit and subsequent replanting. Status: 35% completed. MU-1, comprising 156 acres, was fully harvested in 2013-2015 and was replanted in 2016 with replanting monitoring activities extending into FY 16-17. MU-2 was partially harvested in FY 15-16 for test marketing of veneer. Harvest of MU-2 may resume in FY 16-17 and be completed by FY 18-19. Justification: Land use regulatory requirement for operation of the Biocycle Farm. Project Driver: Land Use Compatibility Statement (LUCS) issued by Lane County. Project Trigger: Oregon ORS/OAR and NRCS rules dictating that exclusive farm use lands and farmed wetland status agricultural lands requiring agriculturally managed hybrid poplar plantations must be limited to 12-year rotation duration. Project Type: 100% Performance Improvement SDC Eligibility: 0% Estimated Project Cost: $2,016,198 for harvest and administration of the initial plantings across all three MUs. Estimated Cash Flow: FY 13-14 = $116,009; FY 14-15 = $114,465; FY 15-16 = $136,814; FY 16-17 = $78,910; FY 17-18 = $330,000; FY 18-19 = $680,000; FY 19-20 = $380,000; FY 20-21 = $90,000; FY 21-22 = $90,000 Expenditure/Category: Prior Years 2016-17 Est. Act. 2017-18 2018-19 2019-20 2020-21 2021-22 Total Design/Construction $367,288 $78,910 $330,000 $680,000 $380,000 $90,000 $90,000 $2,016,198 Other $0 $0 $0 $0 $0 $0 $0 $0 Total Cost $367,288 $78,910 $330,000 $680,000 $380,000 $90,000 $90,000 $2,016,198 Metropolitan Wastewater Management Commission Capital Improvement Program THERMAL LOAD MITIGATION PRE-IMPLEMENTATION Description: This project includes the study and planning of thermal load mitigation measures including recycled water feasibility studies, riparian shading projects, and water quality trading credit development, as well as associated permit negotiation and legal strategy related to the temperature total maximum daily loads (TMDL) and NPDES permit renewal. Status: Two of three planned phases of thermal load strategy planning have been completed with recommendations to develop opportunities for recycled water demonstration projects and partnerships in watershed restoration for temperature credits. The third phase of study commenced in FY 15-16 and will continue in FY 16-17 through FY 17-18. Justification: Provides planning of infrastructure, projects, and collaborative agreements needed so that thermal loads are reduced on the Willamette River while providing additional environmental and community benefits. Project Driver: Address NPDES permit thermal load compliance related to Willamette River TMDL temperature requirements. Project Trigger: Planning necessary for ongoing compliance with Oregon’s temperature standard. Project Type: 100% Performance Improvement SDC Eligibility: 26% Estimated Project Cost: $757,141 Estimated Cash Flow: FY 13-14 = $ 295,995; FY 14-15 = $48,908; FY 15-16 = $34,165; FY 16-17 = $98,073; FY-17-18 = $180,000; FY 18-19 = $100,000 Expenditure/Category: Prior Years 2016-17 Est. Act. 2017-18 2018-19 2019-20 2020-21 2021-22 Total Design/Construction $0 $0 $0 $0 $0 $0 $0 $0 Other $379,068 $98,073 $180,000 $100,000 $0 $0 $0 $757,141 Total Cost $379,068 $98,073 $180,000 $100,000 $0 $0 $0 $757,141 Metropolitan Wastewater Management Commission Capital Improvement Program DECOMMISSION WPCF LAGOON Description: This project decommissions the existing biosolids lagoon at the Water Pollution Control Facility (WPCF). Status: As of January 9, 2017: The project is in the design phase. The MWMC hired a consultant in December of 2014 to create a bid package to decommission the lagoon. Lagoon decommissioning site work is anticipated in 2019, and the schedule is subject to change based on progress of the construction of the forth digester improvements. Justification: The lagoon was constructed in 1979 as a temporary biosolids storage facility while the Biosolids Management Facility was under construction. Since that time it has also served as a temporary storage lagoon to support digester cleaning operations. However, the lagoon no longer serves the purpose for which it was originally constructed and does not meet current design standards for wastewater lagoons. Project Driver: The lagoon can no longer provide the biosolids capacity for which it was intended nor cost effectively continue to support digester cleaning operations. The lagoon is almost full of accumulated rainwater and residual solids. Therefore, the decision was made to decommission the lagoon and change the process of cleaning the digesters. Project Trigger: The WPCF lagoon no longer functions as originally designed. Estimated Project Cost: $5,550,000 (funding for administration, design, permits, construction, etc.) Improvement SDC Eligibility: 0% Estimated Cash Flow: FY 13-14 = $1,769; FY 14-15 = $128,550; FY 15-16 = $90,031; FY 16-17 = $37,650; FY 17-18 = $40,000; FY 18-19 = $530,000; FY 19-20 = $4,722,000 Expenditure/Category: Prior Years 2016-17 Est. Act. 2017-18 2018-19 2019-20 2020-21 2021-22 Total Design/Construction $220,350 $37,650 $92,000 $5,200,000 $0 $0 $0 $5,550,000 Other $0 $0 $0 $0 $0 $0 $0 $0 Total Cost $220,350 $37,650 $92,000 $5,200,000 $0 $0 $0 $5,550,000 Metropolitan Wastewater Management Commission Capital Improvement Program FACILITY PLAN ENGINEERING SERVICES Description: Engineering services for analysis, project definition, cost estimating, and general consultation regarding the 20-Year Facilities Plan. Status: The work completed this year included an assessment of the existing medium voltage electrical conductors and associated equipment of the same vintage, and an assessment of the Glenwood Pump Station firm capacity (i.e., the capacity of with the largest pump out of service). Justification: Projects were developed to varying levels of specificity in the 20-Year Facilities Plan and there is an on-going need for ongoing technical and engineering resources to help in further refining projects and generally assisting with implementation of the plan. Another need addressed by this resource is assurance that the new improvements maintain the overall integrity of the plant in terms of treatment processes and hydraulics. This task also provides ongoing planning work related to items not addressed by the 2004 MWMC Facilities Plan. Project Driver: Ongoing goal to efficiently follow and accommodate the upgrades resulting from the 20-Year Facilities Plan. Project Trigger: On-going need. Estimated Project Cost: $1,108,639 Estimated Cash Flow: FY 06-07 = $50,000; FY 07-08 = $50,044; FY 08-09 = $25,467; FY 09-10 = $31,829; FY 10-11 = $69,419; FY 11-12 = $8,699; FY 12-13 = $36,690; FY 13-14 = $146,491; FY 14-15 = $67,453; FY 15-16 = $36,775; FY 16-17 = $130,772; FY 17-18 = $80,000; FY 18-19 = $85,000; FY 19-20 = $90,000; FY 20-21 = $100,000; FY 21-22 = $100,000 Expenditure/Category: Prior Years 2016-17 Est. Act. 2017-18 2018-19 2019-20 2020-21 2021-22 Total Design/Construction $0 $0 $0 $0 $0 $0 $0 $0 Other $522,867 $58,772 $80,000 $85,000 $90,000 $100,000 $100,000 $1,036,639 Total Cost $522,867 $58,772 $80,000 $85,000 $90,000 $100,000 $100,000 $1,036,639 Metropolitan Wastewater Management Commission Capital Improvement Program COMPREHENSIVE FACILITIES PLAN UPDATE NO. 1 Description: This will be the first MWMC Comprehensive Facilities Plan Update since the 2004 MWMC Facilities Plan. This Comprehensive Facilities Plan Update effort will include permit renewal and facilities planning technical services to assess capital improvement requirements over a 20-year planning horizon. The comprehensive facilities planning update will draw on the most recent plant data, permit compliance requirements, and available technology in order to ensure the MWMC continues to meet future regulations, environmental standards, and customer needs. Status: Planned for future implementation. Justification: Plan future conveyance and treatment upgrades and/or expansions to meet regulatory requirements, preserve public health and regional water quality standards. Project Driver: Provides comprehensive facilities planning to develop the capital program for the upcoming 20-year period once the MWMC receives new regulatory requirements under the next NPDES permit renewal. Project Trigger: Planning cycle initiated under the 2004 Facilities Plan and later modified to match evolving NPDES permit renewal schedule, now estimated for 2018 at the earliest. Project Type: Facilities Plan Improvement SDC Eligibility: 21% Estimated Project Cost: $2,092,280 Estimated Cash Flow: FY 14-15 = $2,280; FY 18-19 = $200,000; FY 19-20 = $820,000; FY 20-21 = $1,070,000 Expenditure/Category: Prior Years 2016-17 Est. Act. 2017-18 2018-19 2019-20 2020-21 2021-22 Total Design/Construction $0 $0 $0 $0 $0 $0 $0 $0 Other $2,280 $0 $0 $200,000 $820,000 $1,070,000 $0 $2,092,280 Total Cost $2,280 $0 $0 $200,000 $820,000 $1,070,000 $0 $2,092,280 Metropolitan Wastewater Management Commission Capital Improvement Program GLENWOOD PUMP STATION UPGRADE Description: Expand Glenwood pump station capacity. The existing pump station is built to be expandable in capacity when the need arises. Two pumps are installed with the expandability to add up to two additional pumps when needed. Status: The project is anticipated to start design development in 2018 with consultant services. The scope of work is planned to add one wastewater pumping system. Justification: Additional pumping capacity will be required at this MWMC pump station to handle increasing flows in the Glenwood area (Springfield) and the Laurel Hill area (Eugene). Project Driver: Keep up with capacity needs, maintain required pumping redundancy, and prevent overflows upstream of the Glenwood pump station. Project Trigger: Planning work in 2014 anticipates that a third pump to increase capacity should be operational by about year 2019. The timing will be impacted by the rate and type of development in the area and efforts to minimize infiltration and inflow that impact the Glenwood pump station. The MWMC Partial Facilities Plan Update document dated June 2014 recommended moving the initial budget year to FY 18-19 as shown below. Project Type: 100% Capacity Improvement SDC Eligibility: 38.2% Estimated Project Cost: $1,200,000 (funding for administration, design, permits, construction, etc.) Estimated Cash Flow: FY 18-19 = $1,120,000; FY 19-20 = $80,000 Expenditure/Category: Prior Years 2016-17 Est. Act. 2017-18 2018-19 2019-20 2020-21 2021-22 Total Design/Construction $0 $0 $0 $1,200,000 $0 $0 $0 $1,200,000 Other $0 $0 $0 $0 $0 $0 $0 $0 Total Cost $0 $0 $0 $1,200,000 $0 $0 $0 $1,200,000 Metropolitan Wastewater Management Commission Capital Improvement Program AERATION BASIN IMPROVEMENTS – PHASE 2 Description: Aeration Basin (Phase 2): Add step feed, anoxic selectors, and fine bubble diffusers to 4 of the 8 cells of the aeration basins and make hydraulic improvements. This project was originally the North Aeration Basin Improvements project; however the Phase 1 study/design phase showed that improvements to the four eastern most basins as a first phase would allow for better hydraulics and more operational flexibility. In January 2016, the project scope and cost (estimate $750K in 2015) increased to include replacement of existing aeration basin gates, valves and spray system. Status: The Aeration Basin (Phase 2) project is anticipated to start design development in fiscal year 19-20 with consultant services. Justification: Increase the dry weather aeration basin treatment capacity with respect to ammonia (with nitrification) and increase the wet weather treatment capacity. Project Driver: National Pollution Discharge Elimination System (NPDES) permit includes ammonia limit requiring nitrification in dry weather and expansion of wet weather capacity to treat wet weather flows to meet NPDES permit monthly and weekly suspended solids limits. Project Trigger: Address water quality requirements (need to evaluate the requirements based on the MWMC next NPDES permit renewal that might be issued in 2018). Project Type: 50% Capacity; 50% Performance Improvement SDC Eligibility: 58.7% Estimated Project Cost: $16,100,000 (funding for administration, design, permits, construction, etc.) Estimated Cash Flow: FY 19-20 = $1,450,000; FY 20-21 = $6,800,000; FY 21-22 = $7,150,000; FY 22-23 = $700,000 Expenditure/Category: Prior Years 2016-17 Est. Act. 2017-18 2018-19 2019-20 2020-21 2021-22 Total Design/Construction $0 $0 $0 $0 $4,300,000 $6,000,000 $5,800,000 $16,100,000 Other $0 $0 $0 $0 $0 $0 $0 $0 Total Cost $0 $0 $0 $0 $4,300,000 $6,000,000 $5,800,000 $16,100,000 Metropolitan Wastewater Management Commission Capital Improvement Program TERTIARY FILTRATION - PHASE 2 Description: The phased work program will install infrastructure/support facilities for 30 mgd of filters for tertiary filtration of secondary treated effluent. Phase 2 is planned to install filter system technology sufficient for another 10 mgd of treatment that will increase the total filtration capacity to 20 mgd. The Phase 3 project will install the remaining filtration technology to meet the capacity needs identified in the 2004 MWMC Facilities Plan. In January 2016, the project scope and cost (estimate $530K in 2015) increased to include updating electrical switchgear, and install tertiary filter flushing headers/pipe vents. Status: Tertiary Filtration (Phase 2) project is anticipated to start design development in fiscal year 21-22. Justification: The 2004 MWMC Facilities Plan proposes phasing filters on a phased work program. Filtration provides high quality secondary effluent to help meet permit requirements and potential Class A recycled water. Project Driver: Performance reliability to meet the dry weather NPDES total suspended solids limits of less than 10 mg/L, reuse development, and compliance with effluent limits during peak flow conditions. Project Trigger: NPDES permit compliance for total suspended solids (TSS): Dry weather maximum month flow in excess of 49 mgd. Also, provide higher quality effluent so that reuse options can be developed. Continue to monitor the MWMC NPDES permit renewal timing and requirements. Improvement SDC Eligibility: 41.6% Estimated Project Cost: $16,000,000 (funding for administration, design, permits, construction, etc.) Estimated Cash Flow: FY 21-22 = $1,500,000; FY 22-23 = $5,800,000; FY 23-24 = $8,700,000 Expenditure/Category: Prior Years 2016-17 Est. Act. 2017-18 2018-19 2019-20 2020-21 2021-22 Total Design/Construction $0 $0 $0 $0 $0 $0 $2,000,000 $2,000,000 Other $0 $0 $0 $0 $0 $0 $0 $0 Total Cost $0 $0 $0 $0 $0 $0 $2,000,000 $2,000,000