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HomeMy WebLinkAbout12-08-17 Agenda PacketTHE FULL PACKET IS POSTED ON THE WEBSITE www.mwmcpartners.org MWMC MEETING AGENDA Turn off cell phones before the meeting begins. I.ROLL CALL II. CONSENT CALENDAR Action Requested: III.PUBLIC COMMENT IV. BIOGAS/RENEWABLE NATURAL GAS (P80095) CONSULTANT SELECTION Action Requested: By motion, a V. FY 2017-18 SUPPLEMENTAL BUDGET #2 Action Requested: By motion, a VI. LIABILITY INSURANCE RENEWAL FOR 2018 Action Requested: VII. MWMC FINANCIAL PLAN DISCUSSION #1 Action Requested: VIII. PURE WATER PARTNERS UPDATE Action Requested: THE FULL PACKET IS POSTED ON THE WEBSITE www.mwmcpartners.org IX.BUSINESS FROM COMMISSION, GENERAL MANAGER, AND WASTEWATER DIRECTOR X. 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 541-726-369 All proceedings before the MWMC are recorded. ________________________________________________________________________________________ MWMC MEETING MINUTES Thursday, November 9, 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 Kevin Kraaz. ROLL CALL Commissioners Present: Pat Farr, Bill Inge, Doug Keeler, Walt Meyer, Joe Pishioneri, Peter Ruffier, Jennifer Yeh Staff introductions were made: Meg Allocco, Jolynn Barker, Dave Breitenstein, Judy Castleman, John Casto, John Huberd, K.C. Huffman (attorney), Madeline Klein, Tonja Kling, Kevin Kraaz, Shawn Krueger, Sharon Olson, Barry Mays, Troy McAllister, Todd Miller, Michelle Miranda, Loralyn Spiro, Matt Stouder, and Greg Watson CONSENT CALENDAR a. MWMC 10/13/17 Amended Meeting Minutes MOTION: IT WAS MOVED BY COMMISSIONER KEELER WITH A SECOND BY COMMISSIONER PISHIONERI TO APPROVE THE MINUTES AS AMENDED. THE MOTION PASSED UNANIMOUSLY 7/0. PUBLIC COMMENT There was no public comment. ELECTRICAL DISTRIBUTION SYSTEM REPLACEMENT AND UPGRADES P80092 – EQUIPMENT PRE-PURCHASE John Casto, Design and Construction Coordinator, requested approval of Resolution 17-14 to pre- purchase an Automatic Transfer Switch (ATS) for the Electrical Distribution System Replacement and Upgrades Project. Mr. Casto gave background on the plant and the need for the ATS. The plant receives power from the Santa Clara sub-station and the Willakenzie sub-station. Those are the two required sources of electricity and they back each other up. Currently the feed from the Willakenzie sub-station only reaches part of the plant. When the upgrades are done, there will be the ability to power the whole plant by the Willakenzie sub-station. Mr. Casto said the project is still in early design and to date is under budget; he is not asking for money. The pre-purchase is about schedule. It takes six months or more to get the equipment on MWMC Meeting Minutes November 9, 2017 Page 2 of 4 site which includes going through submittals, etc. The construction is planned for the dry weather when the flows are lowest because, at some point, the conductors will be changed out at which time the equipment will be turned off to take the old wires off and put the new wires on. The current construction schedule is shorter than the lead time for the equipment; therefore, Mr. Casto would like to have the equipment here when the contractor gets started. When the contract is awarded in May, transfer of ownership of the ATS will be made to the contractor so they would be responsible for the installation and warranty start up. It would be as though the contractor purchased it. DISCUSSION: Commissioner Keeler stated it sounds like there would be some cost savings in terms of contractor mark up, if they were to purchase the equipment. Mr. Casto replied there is another monetary advantage as well, if the construction has to extend, they are either going to demobilize and charge us to remobilize or charge us to sit on site. Commissioner Ruffier asked if Mr. Casto has any concerns that the contractor might have a different preference for equipment. Mr. Casto said it is not their decision to make, this way we get to pick a specific one that we want not the cheapest one that the contractor picks. Commissioner Pishioneri stated he appreciates Mr. Casto’s work; he likes the ability to pick our own equipment so we know that it is quality. He liked Mr. Casto’s presentation, short and simple. MOTION: IT WAS MOVED BY COMMISSIONER PISHIONERI WITH A SECOND BY COMMISSIONER MEYER TO APPROVE RESOLUTION 17-14. THE MOTION PASSED UNANIMOUSLY 7/0. EXECUTIVE SESSION – SDC WAIVERS/INCENTIVES President Inge adjourned regular session at 7:46 a.m. and convened 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. President Inge adjourned Executive Session and convened Regular Session at 8:42 a.m. DISCUSSION: President Inge said that he felt that the Commission is receptive to moving forward in finding a way to help in this housing crisis. For him personally, he has never objected to the concept of it. His objection has been to the order we were doing things. He believes very strongly that order matters. Commissioner Farr instructed staff to create a line item in MWMC’s budget to cover relief for SDCs for certain classifications of housing and at the same time (staff and legal counsel) continue to research what other jurisdictions are doing regarding waivers or payments of SDCs. The Commission was in agreement. Commissioner Pishioneri added to do the research and provide a road map on how to get where we want to go so there is a clear understanding of what steps need to be taken. Commissioner Meyer would like feedback from the elected officials on what each entity is actually doing with respect to SDC’s. Mr. Stouder said that it could be scheduled in a meeting or it could be under business of the Commission. MWMC Meeting Minutes November 9, 2017 Page 3 of 4 Commissioner Pishioneri asked Mr. Stouder to ask Sandy Belson, Springfield, to provide information on what Springfield is doing. Commissioner Yeh asked if a road map was going to be done for both the waiver system and the new classification. Commissioner Pishioneri and President Inge said both. Mr. Stouder replied that from his perspective the road map would be if we want to set money aside as a line item in the budget. We looked at a new user class for Tiny Homes, similar to what we did for Small Homes. That framework already exists, we could just be directed to reach out to the consultant again and they probably have the data and could do something pretty quick. President Inge restated what the Commission is looking for; to have Staff provide a framework for the potential to waive SDCs and the potential for paying SDCs. He asked if that was correct. There was agreement from the Commission that they want framework for both tracks. K.C. Huffman, legal counsel, added that for one we are almost there and for the other, there is work to do. Commissioner Farr said that this is clearly new ground for the Commission. We have the 2021 games coming and one thing we want to make certain is that when people from all over the world come here they get a good impression on how we take care of the details of simply living. One of those details is making certain that those people who are least able to take care of themselves are being taken care of. BUSINESS FROM COMMISSION, GENERAL MANAGER, AND WASTEWATER DIRECTOR Commission: President Inge asked for a roster to be sent out to the Commission with staff names and titles (jobs). Commissioner Ruffier had two questions in regards to the RWP Monthly Report. 1. The notice of the SSO due to grease blockage; was the source of the grease identified? Mr. Breitenstein asked if it was the one by Autzen Stadium, Commissioner Ruffier said yes. Mr. Breitenstein said he would have to get back to him on that. 2. For Eugene Pretreatment: Superior Steel Fabrication had a series of violations, are they getting close to noncompliance and do we have any other Pretreatment industries that are in SNC (significant noncompliance). Commissioner Farr stated he is also interested about the Autzen Stadium issue. Commissioner Ruffier said that he and President Inge took a tour of the plant recently. It was a good update and appreciates staff time and effort in taking them around. General Manager: Mr. Stouder stated he, Mr. Breitenstein, and Josh Newman attended a resiliency workshop yesterday in Eugene. It was led by Allison Pyrch who works for Hart Crowser in Portland and is a leading expert on Cascadia Subduction Zone Quakes and is helping Oregon get prepared. Mr. Stouder said it was a good training and thinks the MWMC is on the right track with respect to the resiliency analysis that we are doing. He expects to have the RFP out in the coming months will update the commission when appropriate. MWMC Meeting Minutes November 9, 2017 Page 4 of 4 Communication staff has been working on business cards for the MWMC. It is another tool to have to hand out to people so they can follow MWMC on Facebook or Twitter. Mr. Stouder handed the cards out to the Commission. The Eugene Law Alliance Worldwide brings in environmental people from all over the globe to study in Eugene. There are opportunities to take the law students on tours of the plant – staff recently toured with students from Mexico and the Ukraine. It is always great to show our plant off because of the state of the art treatment processes we have. Legal Counsel: Mr. Huffman thanked the Commission for their support of Clean Water University. His son is in fifth grade and his school is not in the Eugene School District’s jurisdiction but the school was allowed to do Clean Water University. Mr. Huffman accompanied the students on the tour of the plant and said staff did a great job. Wastewater Director: Mr. Breitenstein shared that the plant has now moved into the winter permit season. He said sometimes going into the winter permit season we are taxed with rain events but he is happy to announce we were able to get through the rain events without any problems. ADJOURNMENT President Inge adjourned the meeting at 8:54 a.m. Submitted by: Kevin Kraaz M E M O R A N D U M DATE: TO: FROM: SUBJECT: ACTION REQUESTED: _____________________________________________________________________ ISSUE BACKGROUND DISCUSSION RECOMMENDATION ACTION REQUESTED ATTACHMENTS METROPOLITAN WASTEWATER MANAGEMENT COMMISSION RESOLUTION 17-15 ) IN THE MATTER OF CONTRACT AWARD ) OF ENGINEERING CONSULTING SERVICES ) MWMC PROJECT P80095 – RENEWABLE ) NATURAL GAS (RNG) UPGRADES WHEREAS WHEREAS WHEREAS WHEREAS WHEREAS WHEREAS WHEREAS WHEREAS ATTACHMENT 1 Page 1 of 2 ATTACHMENT 1 Page 2 of 2 M E M O R A N D U M DATE: TO: FROM: SUBJECT: ACTION REQUESTED: _____________________________________________________________________ ISSUE BACKGROUND AND DISCUSSION ATTACHMENT 2 Page 1 of 3 NEXT STEPS Milestone Date ATTACHMENT 2 Page 2 of 3 Milestone Date ATTACHMENT 2 Page 3 of 3 PROPOSAL EVALUATION CRITERIA AND POINT SCORING # Criteria Description Score Weight Maximum Possible Points 1 Proposer Company Experience on Similar Projects Strong company background, experience, and expertise in some or all of the following areas: State and federal renewable and low carbon fuel programs (e.g., the RFS, California LCFS, Oregon CFP) Assisting clients with governing board decision making related to biogas projects Assessing biogas utilization opportunities and limitations, Biogas utilization and RNG projects, Biomethane to natural gas-grid pipeline interconnection projects Biogas utilization equipment alternatives comparison and selection, Permitting biogas utilization projects, 1-10 3.5 35 2 Proposer Team org chart and technical expertise/experience Experience of key proposed Consultant project staff on comparable project(s) as indicated in staff resumes and descriptions of team’s prior project experience. 1-10 3.0 30 4 Project Manager References References from at least three most recent projects (specific to Project Manager). 1-10 2.0 20 3 Demonstrated Project Understanding Demonstration of high level of understanding of project as shown in Consultant’s approach to staffing, quality of approach narrative, understanding of Consultant role in collaboration with the MWMC project team, and nature and quality of proposed optional tasks (if any). 1-10 2.0 20 5 Readability of Proposal Document Overall organization, clearness of thought, ability to convey ideas and information, and overall quality of proposal document representative of a finished product from proposer. Graphics are only important to the degree they are effective in conveying the key information. 1-10 1.5 15 Totals 120 M E M O R A N D U M DATE: TO: FROM: SUBJECT: ACTION REQUESTED: _____________________________________________________________________ ISSUE DISCUSSION ACTION REQUESTED ATTACHMENT METROPOLITAN WASTEWATER MANAGEMENT COMMISSION RESOLUTION 17-16 ) IN THE MATTER OF APPROVAL OF FISCAL ) YEAR 2017-18 SUPPLEMENTAL BUDGET #2 M E M O R A N D U M DATE: December 1, 2017 TO: Metropolitan Wastewater Management Commission (MWMC) FROM: Katherine Bishop, ESD Program Manager SUBJECT: Liability Insurance Renewal for 2018 ACTION REQUESTED: Authorize the General Manager to enter into an agreement for liability insurance coverage to be effective January 1, 2018 _____________________________________________________________________ ISSUE The Metropolitan Wastewater Management Commission’s current general liability insurance coverage with Special Districts Insurance Services (SDIS) covers the 2017 calendar year. The Commission is requested to authorize the General Manager to enter into an agreement for liability (casualty) insurance coverage with SDIS to be effective January 1, 2018 for the calendar year term through December 31, 2018. BACKGROUND The MWMC carries property insurance and general liability (casualty) insurance policies that provide risk insurance coverage, working closely with the MWMC Insurance Agent of Record. Insurance Agent of Record - In January 2015, following a competitive process, the Commission authorized the MWMC General Manager to enter into a multi-year contract with Brown & Brown Northwest (BBNW) for Insurance Agent of Record services. The BBNW team members serving the MWMC include Ron Cutter, Senior Vice President / NW Public Sector Practice Leader; Tim Clarke, Senior Vice President of Claims; and Cathi Pham, Account Manager. Liability (Casualty) Insurance - In May 2015 staff presented information on liability risk insurance scenarios including insurance providers and associated insurance services and premiums. Based on the information presented, the Commission recommended moving from City County Insurance Services (CIS) to Special Districts Insurance Services based on services, overall fit, and better premiums. The Special Districts Insurance Services (SDIS) is a program provided by the Special Districts Association of Oregon. The Commission authorized the MWMC General Manager to enter into an initial contract with the SDIS for Liability (Casualty) Insurance effective July 1, 2015, and later authorized renewal of liability insurance coverage with SDIS for the 2016 and 2017 Memo: Liability Insurance Renewal for 2018 December 1, 2017 Page 2 of 2 calendar years. Property Insurance - In June 2017 the Commission authorized the MWMC General Manager to enter into agreements to secure property insurance including earthquake and flood coverage for the MWMC’s property assets currently valued at $320.5 million for the fiscal year period of July 1, 2017 through June 30, 2018. The current property insurance policy includes a two-year rate lock agreement. Staff will return to the Commission in June 2018 to discuss property insurance renewal. DISCUSSION Liability (casualty) insurance covers general liability, administrative liability, public officials’ liability, non-owned and hired automobile liability, hired automobile physical damage, and umbrella/excess liability coverage. Staff is recommending renewal of liability insurance coverage with SDIS for the 2018 calendar year with the insurance premium at $24,900, plus associated membership dues at $1,168 paid to the Special Districts Association of Oregon (SDAO). The combined 2018 premium and membership is $26,068. The 2018 premium reflects a cost decrease of 1.4% when compared to the 2017 premium. ACTION REQUESTED The Commission is requested by motion, to authorize and direct the General Manager to enter into an agreement with Special Districts Insurance Services (SDIS) for liability (casualty) insurance coverage, plus associated SDAO membership renewal for the period of January 1, 2018 through December 31, 2018. M E M O R A N D U M DATE: December 1, 2017 TO: Metropolitan Wastewater Management Commission (MWMC) FROM: Katherine Bishop, Environmental Services Program Manager SUBJECT: MWMC Financial Plan Discussion #1 ACTION REQUESTED: Informational for discussion and input _____________________________________________________________________ ISSUE Staff plans to begin a series of discussions on the 2005 MWMC Financial Plan with the Commission to include background information and a forward looking plan to update components of the financial planning policies and objectives to bring key information up to date. BACKGROUND AND DISCUSSION As previously noted in financial presentations, the financial work plan includes financial plan policy updates. Staff has started on a preliminary review of the MWMC Financial Plan, which was last updated in 2005 and adopted by the Commission on November 20, 2005. This Plan, in conjunction with municipal, state, and federal law, is intended to guide the financial administration of the Eugene-Springfield Regional Wastewater Program. For reference the MWMC 2005 Financial Plan (53 pages in length) is located at: http://www.mwmcpartners.org/wp-content/uploads/2017/11/MWMC-2005-Financial- Plan.pdf The 2005 Financial Plan updated key components from the 2003 Financial Plan adopted by the Commission on February 20, 2003. The 2003 Financial Plan revised and renewed goals and policies in the MWMC 1992 Financial Master Plan. Financial administration of the Regional Wastewater Program is directed toward achieving the objectives as required by Section 3.f. of the MWMC Intergovernmental Agreement (IGA). In summary, the financial administration objectives include: 1. Establishing revenue adequacy to provide for long-term health and stability of the regional sewerage facilities through a program of monthly sewer user charges, and system development charges that are imposed uniformly throughout the service Memo: MWMC Financial Plan Discussion #1 December 1, 2017 Page 2 of 2 area to achieve full cost recovery 2. Fully funding a program of capital improvements to address capacity, regulatory, and efficiency/effectiveness needs 3. Ensuring equity between newly connected and previously connected users for their total contributions toward regional sewerage facilities 4. Ensuring equity among various classes of users based on the volume, strength, and flow rate characteristics of their discharges together with any other relevant factors 5. Ensuring efficient and cost-effective financial administration of the regional sewerage facilities 6. Complying with applicable laws and regulations including those governing the establishment of user charges and the establishment of system development charges At the Commission’s December 8, 2017 meeting, staff would like to begin a series of discussions on the MWMC 2005 Financial Plan to include a background overview and a plan to update components of the financial planning policies and objectives to bring key information up to date in 2018. At the meeting, staff will discuss the following policies which are located under Policy F5 on page 12 of the Financial Plan: F5a) Working Capital Reserve; F5d) Equipment Replacement Reserve; and F5x) adding an Insurance Reserve policy. A team of Springfield and Eugene staff will be actively contributing to the MWMC Financial Plan update, to be followed by a planned review for input by the MWMC’s Financial Advisors. The scope of work includes an update of key information in 2018, while anticipating a comprehensive financial plan update to follow future permit renewal, and a newly adopted MWMC Facilities Plan. ACTION REQUESTED This is an informational item for discussion and input. ATTACHMENTS 1. 2005 Financial Plan (Electronic Only – hard copy available upon request) M E M O R A N D U M DATE: TO: FROM: SUBJECT: ACTION REQUESTED: _____________________________________________________________________ ISSUE BACKGROUND DISCUSSION ACTION REQUESTED ATTACHMENTS MWMC-EWEB IGA: Pure Water Partners – Draft 3 1 ATTACHMENT 1 INTERGOVERNMENTAL AGREEMENT Pure Water Partners Collaborative RECITALS: MWMC-EWEB IGA: Pure Water Partners – Draft 3 2 ATTACHMENT 1 DEFINITIONS AGREEMENTS MWMC-EWEB IGA: Pure Water Partners – Draft 3 3 ATTACHMENT 1 o o o MWMC-EWEB IGA: Pure Water Partners – Draft 3 4 ATTACHMENT 1 TERMS MWMC-EWEB IGA: Pure Water Partners – Draft 3 5 ATTACHMENT 1 MWMC-EWEB IGA: Pure Water Partners – Draft 3 6 ATTACHMENT 1 MWMC EWEB: Pure Water Partners program management IGA PWP Watershed Conservation Fund Fiscal Management Agreement McKenzie Watershed Council and Upper Willamette Soil & Water Conservation District: site recruitment and implementation The Freshwater Trust: credit cycle management including master implementation and monitoring obligations Willamette Partnership: credit certification and verification services Private Landowners: restoration site leases LCOG: GIS and webpage management Conceptual Framework: Pure Water Partners Fiscal Management Relationships $ $ $ $ $ $ $ StreamBank: MWMC shade credits $ CPRCD: fiscal management ATTACHMENT 2 Background on the MWMC’s Temperature Compliance and Shade Credit Development The updated Oregon temperature standard will impose temperature limits in the MWMC’s next NPDES discharge permit. The temperature limits will be in the form of a thermal load limit expressed in kilocalories per day (kcal/day), which is a function of both effluent temperature and effluent flow. Staff anticipates the excess thermal load of the MWMC’s discharge will be a minimum of 93 million kcal/day (Mkcal/day), based on the 2006 Willamette Basin Temperature Total Maximum Daily Load (TMDL). The time period of the excess thermal load risk occurs in late October. Mitigation of thermal load is possible through a broad range of means that reduce effluent temperature, reduce effluent flow, or offset temperature impacts elsewhere in the watershed under a regulatory tool known as water quality trading. The primary means of water quality trading for temperature is through establishment of riparian shade by planting native vegetation along eligible waterways. The measureable kcal/day of beneficial impact the riparian shade project has is quantified as a water quality trading credit (“shade credit”). A riparian shade credit program was identified as a premier permit compliance strategy for further development as an outcome of the MWMC’s Phase 2 Recycled Water/Thermal Load Mitigation Planning Study completed in 2015. As such, staff has focused the Phase 3 planning effort over the past two years on further assessment and development of a shade credit program integrated into Pure Water Partners. Staff is also developing opportunities to expand recycled water use as a complementary thermal load compliance strategy. The MWMC has pilot riparian shade projects which were planted in 2013-2016 at three locations on the Springfield Mill Race (in downtown Springfield) and Cedar Creek (in the Thurston area of Springfield). The MWMC has a long-term contract with The Freshwater Trust to implement the pilot projects. The pilot projects provided experience with implementing projects on private and public lands, the level of restoration work, monitoring effort, and documentation required to establish shade credits, and the ongoing nature of landowner agreements, monitoring, and reporting necessary to maintain active regulatory credits. These projects have been third-party verified and registered in a water quality trading credit database under the MWMC’s name, resulting in approximately 20 million credits at a total project cost of $650,000. During the same time period, EWEB piloted a McKenzie Watershed voluntary incentives program (McKenzie VIP) to develop a source water protection partnership with private landowners. Recognizing the mutual watershed landowner interests shared by EWEB and the MWMC, staff began identifying opportunities to work together on a single program to meet both utility’s needs. The pilot McKenzie VIP developed into “Pure Water Partners” as additional ATTACHMENT 3 Page 1 of 2 partnerships and interest grew. In January 2016, MWMC entered into an MOU with EWEB to collaborate on the MWMC’s participation in EWEB’s Pure Water Partners program. Through the collaborative effort of the Pure Water Partners stakeholder work group, Cascade-Pacific Resource Conservation & Development (CPRCD) was identified as the appropriate organization to manage the financial aspect of a watershed conservation fund to streamline program payments from multiple funding sources. EWEB will remain the program coordinator for branding and outreach. In August 2016, the MWMC amended its contract with The Freshwater Trust to assess the eligible shade credit areas within the McKenzie, Middle Fork Willamette, and Coast Fork Willamette watersheds. The McKenzie is EWEB’s current drinking water source watershed; the Middle Fork and Coast Fork Willamette are potential expansion areas for Pure Water Partners if EWEB establishes a second water source on the Willamette. Those assessments showed there is shading potential of more than five times the initial target for the MWMC’s permit compliance (under the allocation of the 2006 Willamette Temperature TMDL). The assessments also indicated that the per credit cost to the MWMC under the Pure Water Partners’ outreach is expected to be at least half of the cost projected for shade credits than as estimated in the 2015 Phase 2 Recycled Water Planning study. Costs could be further reduced under an early- implementation incentives agreement to get trees growing and established in advance of permit requirements. In early 2017, staff presented these findings to the MWMC’s upper management and legal counsel, along with the emerging framework for the watershed conservation fund partnerships. Given that the proposed administrative premise appeared legally viable and operationally feasible, staff further endeavored to work toward formalizing MWMC’s role in Pure Water Partners. The formal steps identified include an IGA with EWEB and a fiscal management agreement with CPRCD. ATTACHMENT 3 Page 2 of 2 M E M O R A N D U M DATE: TO: FROM: SUBJECT: ACTION REQUESTED: _____________________________________________________________________ ISSUE BACKGROUND ATTACHMENT 4 DISCUSSION ATTACHMENT 4 RECOMMENDATION ACTION REQUESTED ATTACHMENT 4