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Home My WebLink About02-09-18 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. AWARD OF CONTRACT FOR POPLAR PRUNING AND CUTTING COLLECTION SERVICES Action Requested: V. SOFTWARE FOR CAPITAL PROGRAM – AUTODESK (CONSTRUCTWARE) Action Requested: VI. DRAFT FY 2018-19 REGIONAL WASTEWATER PROGRAM (RWP) CAPITAL BUDGET AND 5-YEAR CAPITAL PLAN Action Requested: VII. FATS, OILS, AND GREASE (FOG) FOOD SERVICE PROGRAM UPDATE VIII. MWMC FINANCIAL PLAN DISCUSSION #2 – RESERVES 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 ROLL CALL Commissioners Present: Absent: Staff introductions were made: CONSENT CALENDAR KEELERYEH MOTION PASSED PUBLIC COMMENT FY 2016-17 AUDITED FINANCIAL STATEMENTS AND REPORTS Inge Farr Pishioneri PISHIONERI KEELER MOTION PASSED FY 2018-19 BUDGET KICK-OFF: KEY OUTCOMES AND PERFORMANCE INDICATORS Major Issues and Challenges Ahead for the Budget: Current capital program requirements Meeting regulatory and permit requirements: Key Outcomes: Outcome #1 – Achieve and Maintain High Environmental Standards Compliance with the environmental performance requirements of all permits The high quality biosolids indicator ISO 14001 Environmental Management System certification Keeler Inge Inge Farr Inge Outcome #2 -Achieve and Maintain Fiscal Management that is Effective and Efficient Outcome #3 Intergovernmental Partnership: The Industrial Pretreatment Program in compliance with state/federal requirements indicator MWMC Facilities Plan projects consistent with CIP budget and schedule An IGA modification indicator CMOM indicator will come off Keeler Keeler Yeh Pishioneri Keeler Farr Outcome #4 – Maximize Reliability and Useful Life of Regional Assets and Infrastructure: Preventive maintenance Pishioneri Corrective Maintenance Ratio Emergency Maintenance Asset management processes and practices review and development Outcome #5 – Achieve and Maintain Public Awareness and Understanding of MWMC: Communication Plan Promoting Social Media Channels MWMC E-Newsletter Pollution Prevention Campaigns Provide Tours of the WPCF Community Survey MWMC website Budget and Rate Assumptions for FY 2018-19: Capital Improvement Program Plan: Equipment Replacement Reserve: Reserves Rate Changes: FY 2018-19 Budget and Rate Decision Schedule: Keeler Inge Keeler Inge Keeler SMALL HOMES SYTEM DEVELOPMENT CHARGES (SDCs) Pishioneri Farr Inge Farr Farr Inge Yeh Inge Farr Yeh Keeler Keeler Yeh’s Farr Inge Inge Inge Pishioneri Pishioneri Inge Farr BUSINESS FROM COMMISSION, GENERAL MANAGER, AND WASTEWATER DIRECTOR General Manager: Surveillance cameras MWMC’s Executive Officer, Anette Spickard is leaving Meetings with community groups Group photo of Commissioners ADJOURNMENT Inge M E M O R A N D U M DATE: TO: FROM: SUBJECT: ACTION REQUESTED: _____________________________________________________________________ ISSUE BACKGROUND DISCUSSION RECOMMENDATION ACTION REQUESTED ATTACHMENTS 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 MARVIN O. SANDERS (1912-1977) JACK B. LIVELY (1923-1979) JILL E. GOLDEN (1951-1991) January 30, 2018 & Sent via Email: tmiller@springfield-or.gov Todd Miller 225 North 5th Street Springfield, OR 97477 Re: Bids Received for Contract P80083 – Poplar Harvest Management Services – Poplar Pruning/Cutting Collection Services (2018) Our File No. 434-338 Dear Todd: We have reviewed copies of the Bids which were submitted to the MWMC and delivered to us for the Poplar Harvest Management Services – Poplar Pruning/Cutting Collection Services (2018) - P80083. GreenWood Resources, Inc. and Summit Forests, Inc. were the only two bidders out of the twelve contacted pursuant to MWMC Rule 137-047-0270, who provided Bids. Based on the Bids submitted, the apparent bidder who will best serve the interests of the MWMC when taking into account price as well as considerations such as experience, expertise, suitability for a particular purpose and contractor responsibility, is GreenWood Resources, Inc. Subject to further negotiations with GreenWood Resources, Inc., it is our recommendation the Commission may properly make a final award of this Contract to GreenWood Resources, Inc. Finally, this letter will serve as your reminder the MWMC must comply with any legal requirements to timely submit information regarding the MWMC’s determination of responsibility to the appropriate party. Thank you. Sincerely, THORP, PURDY, JEWETT, URNESS & WILKINSON, P.C. K.C. Huffman 1 2 METROPOLITAN WASTEWATER MANAGEMENT COMMISSION RESOLUTION 18-01 ) IN THE MATTER OF CONTRACT AWARD ) FOR MWMC PROJECT P80083 – ) POPLAR HARVEST MANAGEMENT ) SERVICES – POPLAR PRUNING/CUTTING ) COLLECTION SERVICES 2 2 M E M O R A N D U M DATE: TO: FROM: SUBJECT: ACTION REQUESTED: _____________________________________________________________________ ISSUE BACKGROUND DISCUSSION ACTION REQUESTED ATTACHMENT METROPOLITAN WASTEWATER MANAGEMENT COMMISSION (MWMC) RESOLUTION 18-02 ) IN THE MATTER OF ESTABLISHING A BRAND ) NAME SPECIFICATION FOR UPCOMING GOODS ) CONTRACT AND EXECUTIVE OFFICER ) AUTHORITY TO NEGOTIATE A SOFTWARE ) AGREEMENT M E M O R A N D U M DATE: TO: FROM: SUBJECT: ACTION REQUESTED: _____________________________________________________________________ ISSUE DISCUSSION ACTION REQUESTED ATTACHMENTS Metropolitan Wastewater Management Commission Capital Improvement Program FY 18-19 BUDGET AND CIP 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 18-19 CIP Budget, the FY 18-19 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) ATTACHMENT 1 Page 1 of 26 Metropolitan Wastewater Management Commission Capital Improvement Program FY 18-19 BUDGET AND CIP Capital Program Funding and Financial Planning Methods and Policies This annual budget document presents the FY 18-19 CIP Budget, the FY 18-19 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 of CWSRF funding derived from the sponsorship option, which derives additional principal over the life of the loan by an in-kind reduction in the interest rate. The sponsorship option is limited in use as an incentive to invest in watershed improvement projects. The MWMC’s sponsorship option funding was allocated for riparian shade tree planting pilot projects as a potential strategy to address the MWMC’s pending thermal load obligations. $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 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. ATTACHMENT 1 Page 2 of 26 Metropolitan Wastewater Management Commission Capital Improvement Program FY 18-19 BUDGET AND CIP 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 rate trends from 2006 through 2017, capital project budgets now reflect a 4% annual inflationary factor in the FY 18-19 Budget and 5-year Capital Plan. Regional Wastewater Capital Program Status and Budget CIP Project Status and Budget The FY 18-19 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 18-19 project budgets is $30,826,000. Each capital project represented in the FY 18-19 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. ATTACHMENT 1 Page 3 of 26 Metropolitan Wastewater Management Commission Capital Improvement Program FY 18-19 BUDGET AND CIP Completed Capital Projects No capital projects were completed in FY 17-18. The MWMC FY 17-18 projects are all active and will continue (carryover) into FY 18-19. Carryover Capital Projects All or a portion of remaining funding for active capital projects in FY 17-18 is carried forward to the FY 18-19 Budget. The on-going carryover projects are: Operations & Maintenance Building Improvements RNG Upgrade Facilities Decommission WPCF Lagoon Electrical Distribution System Replacement and Upgrades Increase Digestion Capacity Resiliency Planning Thermal Load Mitigation: Pre-Implementation Poplar Harvest Management Services Facilities Plan Engineering Services Thermal Load Mitigation: Implementation 1 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 Recycled Water Demonstration Project Class A Recycled Water Facilities Riparian Shade Credit Program Comprehensive Facility Plan Update FY 18-19 Capital Budget Summary (Exhibit 12) Exhibit 12 below displays the adjusted budget and end-of-year expenditure estimates for FY 17-18, the amount of funding projected to be carried over to FY 18-19 and additional funding for existing and/or new projects in FY 18-19. ATTACHMENT 1 Page 4 of 26 Metropolitan Wastewater Management Commission Capital Improvement Program FY 18-19 BUDGET AND CIP FY 18-19 Asset Management Capital Project Status and Budget The AMCP consists of the following three programs: Equipment Replacement Major Rehabilitation Major Capital Outlay FY 17-18 ADJUSTED BUDGET FY 17-18 ESTIMATED ACTUALS FY 17-18 CARRYOVER TO FY 18-19 NEW FUNDING FOR FY 18-19 TOTAL FY 18-19 BUDGET Projects to be Carried Over to FY 18-19 Operations & Maint Building Improvements 17,062,947 8,162,947 8,900,000 0 8,900,000 RNG Upgrade Facilities (via SB 2 approval)470,000 470,000 0 7,050,000 7,050,000 Decommission WPCF Lagoon 111,546 11,546 100,000 5,450,000 5,550,000 Electrical Distribution System Replace / Upgrade 5,923,487 1,323,487 4,600,000 0 4,600,000 Increase Digestion Capacity 12,893,205 10,393,205 2,500,000 0 2,500,000 Resiliency Planning (via SB 3 approval)500,000 125,000 375,000 0 375,000 Thermal Load Mitigation: Pre-Implementation 161,759 122,736 39,000 161,000 200,000 Poplar Harvest Management Services 515,000 370,204 144,000 16,000 160,000 Facilities Plan Engineering Services 78,949 78,949 0 85,000 85,000 Thermal Load Mitigation: Implementation 1 400,000 32,992 0 0 0 New Projects Started in FY 18-19 Recycled Water Demonstration Project 0 0 0 300,000 300,000 Class A Disinfection Facilities 0 0 0 750,000 750,000 Riparian Shade Credit Program 0 0 0 226,000 226,000 Comprehensive Facility Plan Update 0 0 0 130,000 130,000 TOTAL Capital Projects $38,116,893 $21,091,066 $16,658,000 $14,168,000 $30,826,000 Major Capital Outlay Carried Over to FY 18-19 Biogas Cogeneration (1)1,444,145 1,444,145 0 0 0 TOTAL Major Capital Outlay $1,444,145 $1,444,145 $0 $0 $0 Notes: (1) Biogas Cogeneration is a multi-year Major Capital Outlay project that includes connectivity with the Increase Capacity project. EXHIBIT 12 Summary of FY 18-19 MWMC Construction Program Capital Budget ATTACHMENT 1 Page 5 of 26 Metropolitan Wastewater Management Commission Capital Improvement Program FY 18-19 BUDGET AND CIP The FY 18-19 budget and status of each program is described below. Equipment Replacement Program - Budget The FY 18-19 Capital Programs budget includes $649,000 in Equipment Replacement purchases that are identified on the table below. Major Rehabilitation Program - Budget The FY 18-19 Capital Programs budget includes $1,175,000 for Major Rehabilitation projects that are identified on the table below. Project Description FY 18-19 Budget Fleet Vehicles - ATV/Quad, 1 ton pickup with utility box and crane, and 2 ton up-fitted electrician’s cargo vans 263,000 Gearbox, #1 Clarifier Drive in stainless to mitigate corrosion related problems - Primary 110,000 Generator, 180KW for regional power-loss emergencies - Pump Stations and Facilities 90,000 Variable Frequency Drive (VFD) for regional pump station - Willakenzie PS 70,000 Pump, Progressive Cavity - Biosolids Management Facility 40,000 Level Controls, Secondary Clarifiers - Secondary 35,000 Programmable Logic Controls (PLC) upgrade - Biosolids Management Facility 17,000 Transmitter, Waste Activated Sludge (WAS) Flow Meter - Secondary 13,000 Element and Transmitter, Sludge Blanket Level - Secondary 11,000 Total $649,000 Equipment Replacement Project Description FY 18-19 Budget Irrigation Reel hoses, controllers, bearings, and automation rehab (4) - Biocycle Farm 304,000 Yokogawa Disributed Control System (DCS) software/hardware security rehab - Plant 263,000 Yokogawa Disributed Control System (DCS) wireless infrastructure and software - Plant 200,000 North and South Discharge Area coatings for Screw Pumps (2) - Pretreatment 120,000 Collector Mechanism, Clarifier Rake Arms coatings (2) - Secondary 80,000 Chlorine Contact Chamber expansion joints rehab (4) - Final 60,000 Operations and Maintenance Building Improvements - Plant 50,000 Clarifier Scum Box Supports refurbishment and/or replacement (2) - Secondary 38,000 HVAC system refurbishment - Glenwood Regional Pump Station 30,000 Air Supply Unit rehab and controls upgrade - Secondary 20,000 Roof replacement - Springfield Regional Plant Station 10,000 Total $1,175,000 Major Rehabilitation ATTACHMENT 1 Page 6 of 26 Metropolitan Wastewater Management Commission Capital Improvement Program FY 18-19 BUDGET AND CIP Major Capital Outlay - Budget The FY 18-19 Capital Programs budget includes $200,000 for the Major Capital Outlay items identified on the table below. Asset Management Capital Budget Summary The following table summarizes the FY 18-19 Asset Management Capital Program Budget by project type showing a total AMCP budget of $2,024,000. 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 17-18 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. Finally, those changes were reflected in the MWMC FY 17-18 budget and continue forward in the FY 18-19 for the 5-Year Capital Plan. Exhibit 13 displays the MWMC 5-Year Capital Plan programs budget, which includes $81,367,000 in planned capital projects and $11,867,000 planned asset management capital projects for an overall 5-Year Capital Plan Budget of $93,234,000. Project Description FY 18-19 Budget Laboratory Information Management System (LIMS) software replacement – Plant/Water Quality Lab 200,000 Total $200,000 Major Capital Outlay Project Description FY 18-19 Budget Equipment Replacement 649,000 Major Rehabilitation 1,175,000 Major Capital Outlay 200,000 Total $2,024,000 Asset Management Capital Project Budget ATTACHMENT 1 Page 7 of 26 Metropolitan Wastewater Management Commission Capital Improvement Program FY 18-19 BUDGET AND CIP FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 TOTAL MWMC CAPITAL PROJECTS Biosolids Management Poplar Harvest Management Services 160,000 188,000 620,000 968,000 Non-Process Facilities and Facilities Planning Comprehensive Facility Plan Update 130,000 1,170,000 1,700,000 3,000,000 Facility Plan Engineering Services 85,000 90,000 100,000 100,000 110,000 485,000 Resilency Planning 375,000 375,000 Conveyance Systems Glenwood Pummp Station 1,250,000 1,250,000 Plant Performance Improvements Aeration Basin Improvements - Phase 2 1,500,000 4,600,000 6,000,000 4,000,000 16,100,000 Tertiary Filtration - Phase 2 2,000,000 14,000,000 16,000,000 Operations & Maintenance Building Improvements 8,900,000 8,900,000 Biogas - RNG Utilization 7,050,000 7,050,000 Decommission WPCF Lagoon 5,550,000 5,550,000 Thermal Load Mitigation: Implementation 1 (1)1,850,000 1,900,000 1,800,000 5,550,000 Admin Building Improvements @ WPCF 1,000,000 4,000,000 5,000,000 Electrical Distribution System Replacement & Upgrades 4,600,000 4,600,000 Increase Digestion Capacity 2,500,000 2,500,000 Recycled Water Demonstration Projects (2)300,000 1,700,000 2,000,000 Riparian Shade Credit Program (2)226,000 227,000 212,000 210,000 214,000 1,089,000 Class A Disinfection Facilities (2)750,000 750,000 Thermal Load Mitigation: Pre-Implementation 200,000 200,000 TOTAL CAPITAL PROJECTS 30,826,000 7,125,000 13,082,000 10,210,000 20,124,000 81,367,000 ASSET MANAGEMENT Equipment Replacement 649,000 1,529,000 1,237,000 2,412,000 2,032,000 7,859,000 Major Rehab 1,175,000 488,000 836,000 896,000 413,000 3,808,000 Major Capital Outlay 200,000 0 0 0 0 200,000 TOTAL ASSET MANAGEMENT 2,024,000 2,017,000 2,073,000 3,308,000 2,445,000 11,867,000 TOTAL CAPITAL IMPROVEMENTS 32,850,000 9,142,000 15,155,000 13,518,000 22,569,000 93,234,000 Notes: (1) Thermal Load Mitigation: Implementation 1 budget used to include Mill Race Sponsorship ($200,000) and Cedar Creek Sponsorship ($250,000). However, the remainder of these efforts have been combined with new credit opportunities under Pure Water Partnes as a new Shade Credit Program Project (2) The funding for this new project was carved off of the prior existing budget plan for Thermal Load Implementation 1 EXHIBIT 13 Regional Wastewater 5-Year Capital Programs ATTACHMENT 1 Page 8 of 26 Metropolitan Wastewater Management Commission Capital Improvement Program FY 17-18 BUDGET AND CIP POPLAR HARVEST 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 to 2009 and are managed on regulated 12-year rotations. This project develops a long-term poplar management strategy for the Biocycle Farm through refinement of poplar harvest and planting practices and identification of wood products markets best aligned with the highest and best use of Biocycle Farm poplar. The project ensures the timely harvest of the initial plantings in each MU within the regulatory 12-year rotation limit and subsequent replanting. Status: 50% complete. MU-1 was replanted in 2016. MU-2 was harvested in 2017 and is undergoing replanting in 2018. MU-3 is scheduled for harvest in 2020. Justification: Regulatory land use requirements for operation of the Biocycle Farm, and optimization of farm effectiveness and efficiency. Project Driver: Land Use Compatibility Statement (LUCS) issued by Lane County; Biosolids Management Plan and Recycled Water Use Plan under the MWMC’s NPDES permit. Project Trigger: Maturity of each 12-year rotation age cycle. Project Type: 100% Performance Improvement SDC Eligibility: 22.2% Estimated Project Cost: $1,811,145 Estimated Cash Flow: FY 13-14 = $116,009; FY 14-15 = $114,465; FY 15-16 = $136,814; FY 16-17 = $105,653; FY 17-18 = $370,204; FY 18-19 = $160,000; FY 19-20 = $188,000; FY 20-21 = $620,000; FY 21-22 = $0 Expenditure/Category: Prior Years 2017-18 Est. Act. 2018-19 2019-20 2020-21 2021-22 2022-23 Total Design/Construction $472,941 $370,204 $160,000 $188,000 $620,000 $0 $0 $1,811,145 Other $0 $0 $0 $0 $0 $0 $0 $0 Total Cost $472,941 $370,204 $160,000 $188,000 $620,000 $0 $0 $1,811,145 ATTACHMENT 1 Page 9 of 26 Metropolitan Wastewater Management Commission Capital Improvement Program FY 17-18 BUDGET AND CIP 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 stormwater planning for the WPCF, 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: The stormwater planning portion is triggered by local building permit needs and requirements starting in FY 18-19. The remaining project scope will be initiated by the next NPDES permit renewal schedule, now estimated for 2019 at the earliest. Improvement SDC Eligibility: 20.6% Estimated Project Cost: $3,000,000 Estimated Cash Flow: FY 18-19 = $130,000; FY 19-20 = $1,170,000; FY 20-21 = $1,700,000 Expenditure/Category: Prior Years 2017-18 Est. Act. 2018-19 2019-20 2020-21 2021-22 2022-23 Total Design/Construction $0 $0 $0 $0 $0 $0 $0 $0 Other $0 $0 $130,000 $1,170,000 $1,700,,000 $0 $0 $3,000,000 Total Cost $0 $0 $130,000 $1,170,000 $1,700,000 $0 $0 $3,000,000 ATTACHMENT 1 Page 10 of 26 Metropolitan Wastewater Management Commission Capital Improvement Program FY 17-18 BUDGET AND CIP FACILITY PLAN ENGINEERING SERVICES Description: Engineering services for analysis, project definition, cost estimating, and general consultation regarding the 20-Year Facilities Plan. Status: An electrical distribution system plan for the WPCF was completed this year. This effort provided the planning, project sequencing and cost estimation information needed to develop the scope and budget for design and construction of the new electrical distribution system, which was then implemented as a separate project (P80092 – Electrical Distribution System Replacement and Upgrades Project). In addition, the first phase of a multi-phase stormwater master planning effort will be completed. This effort will provide baseline stormwater flows and water quality treatment capacity estimates under design storm conditions for further planning, which will be carried out in FY 18-19 under the Comprehensive Facilities Plan Update. Justification: Projects were developed to varying levels of specificity in the 20-Year Facilities Plan and there is an on-going need for technical and engineering resources to help in further refine projects and generally assist with implementation of the plan. Another need addressed by this resource is assurance that the new improvements maintain the plant’s overall treatment processes and hydraulics integrity. 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: $1,146,639 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 = $59,823; FY 17-18 = $78,949; FY 18-19 = $85,000; FY 19-20 = $90,000; FY 20-21 = $100,000; FY 21-22 = $100,000; FY 22-23 = $110,000 Expenditure/Category: Prior Years 2017-18 Est. Act. 2018-19 2019-20 2020-21 2021-22 2022-23 Total Design/Construction $0 $0 $0 $0 $0 $0 $0 $0 Other $582,690 $78.949 $85,000 $90,000 $100,000 $100,000 $110,000 $1,146,639 Total Cost $582,690 $78,949 $85,000 $90,000 $100,000 $100,000 $110,000 $1,146,639 ATTACHMENT 1 Page 11 of 26 FY 18-19 BUDGET AND CIP Metropolitan Wastewater Management Commission Capital Improvement Program RESILIENCY PLANNING Description: Given a range of disaster scenarios including a Cascadia Subduction Zone Earthquake, this planning project will identify critical system vulnerabilities, and provide engineering and operational strategies to mitigate vulnerabilities in order of priority. Status: Planning phase Justification: The MWMC’s facilities and wastewater conveyance and treatment services are integral to protection of the community and public health following a major disaster such as the anticipated Cascadia Subduction Zone Earthquake. Project Driver: Cost effectively ensure reasonable recovery of MWMC’s core facilities and services following major disasters including earthquake, flooding, and fire. Project Trigger: Per commission direction, work to begin in FY 17-18 Project Type: 100% Performance Improvement SDC Eligibility: 0% Estimated Project Cost: $500,000 Estimated Cash Flow: FY 17-18 = $125,000; FY 18-19 = $375,000 Expenditure/Category: Prior Years 2017-18 Est. Act. 2018-19 2019-20 2020-21 2021-22 2022-23 Total Design/Construction $0 $125,000 $375,000 $0 $0 $0 $0 $500,000 Other $0 $0 $0 $0 $0 $0 $0 $0 Total Cost $0 $125,000 $375,000 $0 $0 $0 $0 $500,000 ATTACHMENT 1 Page 12 of 26 Metropolitan Wastewater Management Commission Capital Improvement Program FY 18-19 BUDGET AND CIP 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: Monitoring the existing pump station and peak flows. The scope of work is to add one wastewater pumping system and will be confirmed during predesign. 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 anticipated the need to install a third pump to increase capacity. The timing will be triggered by the rate and type of development in the area and efforts to minimize infiltration and inflow that impact the Glenwood pump station. Project Type: 100% Capacity Improvement SDC Eligibility: 38.2% Estimated Project Cost: $1,250,000 Estimated Cash Flow: FY 19-20 = $1,200,000; FY 20-21 = $50,000 Expenditure/Category: Prior Years 2017-18 Est. Act. 2018-19 2019-20 2020-21 2021-22 2022-23 Total Design/Construction $0 $0 $0 $1,250,000 $0 $0 $0 $1,250,000 Other $0 $0 $0 $0 $0 $0 $0 $0 Total Cost $0 $0 $0 $1,250,000 $0 $0 $0 $1,250,000 ATTACHMENT 1 Page 13 of 26 Metropolitan Wastewater Management Commission Capital Improvement Program FY 18-19 BUDGET AND CIP AERATION BASIN IMPROVEMENTS – PHASE 2 Description: Aeration Basin (Phase 2): Recent recommendations are to evaluate and consider improving some of the secondary treatment systems. Upcoming early work items to be evaluated are changes to the existing air piping, change to the diffuser/mixing systems, and consider upgrading older blower equipment. Future upgrades include adding 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: Planned for future implementation. Justification: Improve secondary treatment process. 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). Project Type: 50% Capacity; 50% Performance Improvement SDC Eligibility: 58.7% Estimated Project Cost: $16,100,000 Estimated Cash Flow: FY 19-20 = $1,000,000; FY 20-21 = $1,475,000; FY 21-22 = $6,400,000; FY 22-23 = $6,550,000; FY 23-24 = $675,000 Expenditure/Category: Prior Years 2017-18 Est. Act. 2018-19 2019-20 2020-21 2021-22 2022-23 Total Design/Construction $0 $0 $0 $1,500,000 $4,600,000 $6,000,000 $4,000,000 $16,100,000 Other $0 $0 $0 $0 $0 $0 $0 $0 Total Cost $0 $0 $0 $1,500,000 $4,600,000 $6,000,000 $4,000,000 $16,100,000 ATTACHMENT 1 Page 14 of 26 Metropolitan Wastewater Management Commission Capital Improvement Program FY 18-19 BUDGET AND CIP 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 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 2017-18 Est. Act. 2018-19 2019-20 2020-21 2021-22 2022-23 Total Design/Construction $0 $0 $0 $0 $0 $2,000,000 $14,000,000 $16,000,000 Other $0 $0 $0 $0 $0 $0 $0 $0 Total Cost $0 $0 $0 $0 $0 $2,000,000 $14,000,000 $16,000,000 ATTACHMENT 1 Page 15 of 26 Metropolitan Wastewater Management Commission Capital Improvement Program FY 18-19 BUDGET AND CIP OPERATIONS & MAINTENANCE (O&M) BUILDING IMPROVEMENTS New Laboratory Maintenance Building Expansion Description: After Commission approval to proceed with the project, on May 24, 2017 the MWMC construction contract was executed to build a new water quality laboratory and expand the existing maintenance building at the Water Pollution Control Facility (WPCF). The project will also modify the existing administrative/operations building to create some office space for repurposing. Status: As of January 9, 2018: Construction is underway to build a new laboratory and expand the existing maintenance building. Construction is scheduled for completion by summer of 2019. 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 Industrial Source Control 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 modifications stem from a changing wastewater/environmental business as a result of evolving 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: $18,800,000 Improvement SDC Eligibility: 20.6% Estimated Cash Flow: FY 14-15 = $180,833; FY 15-16 = $845,914; FY 16-17 = $710,306; FY 17-18 = $8,162,947; FY 18-19 = $6,300,000; FY 19-20 = $2,600,000 Expenditure/Category: Prior Years 2017-18 Est. Act. 2018-19 2019-20 2020-21 2021-22 2022-23 Total Design/Construction $1,737,053 $8,162,947 $8,900,000 $0 $0 $0 $0 $18,800,000 Other $0 $0 $0 $0 $0 $0 $0 $0 Total Cost $1,737,053 $8,162,947 $8,900,000 $0 $0 $0 $0 $18,800,000 ATTACHMENT 1 Page 16 of 26 FY 18-19 BUDGET AND CIP Metropolitan Wastewater Management Commission Capital Improvement Program RENEWABLE NATURAL GAS (RNG) UPGRADES Description: This project provides the planning, decision support, and potentially design and construction of Renewable Natural Gas (RNG) Upgrades consisting of biogas purification facilities at the Water Pollution Control Facility (WPCF) and an interconnection with the NW Natural utility grid. Together, these upgrades would allow the MWMC to sell the upgraded gas (RNG) as a transportation fuel through an offtake agreement with Trillium CNG. In addition, Trillium CNG would buy the environmental attributes associated with this renewable fuel. Status: Pre-design Justification: Full utilization of the MWMC’s biogas at the highest value available for ratepayers. Project Driver: Currently, the WPCF can only utilize approximately 70% of the biogas produced with the remaining 30% being flared as a waste product. Project Trigger: The Commission must make a Go/No Go decision by summer of 2018. If the project is a Go, a final completion date in early 2020 is desired to improve certainty of environmental attribute value, which relies on federal and state governmental programs Project Type: 100% Performance Improvement SDC Eligibility: 0% Estimated Project Cost: $7,520,000 Estimated Cash Flow: FY-17-18 = $470,000; FY 18-19 = $1,325,000; FY 19-20 = $5,725,000 Expenditure/Category: Prior Years 2017-18 Est. Act. 2018-19 2019-20 2020-21 2021-22 2022-23 Total Design/Construction $0 $470,000 $7,050,000 $0 $0 $0 $0 $7,520,000 Other $0 $0 $0 $0 $0 $0 $0 $0 Total Cost $0 $470,000 $7,050,000 $0 $0 $0 $0 $7,520,000 ATTACHMENT 1 Page 17 of 26 Metropolitan Wastewater Management Commission Capital Improvement Program FY 18-19 BUDGET AND CIP DECOMMISSION WPCF LAGOON Description: This project decommissions the existing biosolids lagoon at the Water Pollution Control Facility (WPCF). Status: As of January 12, 2018: 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 onsite work is anticipated by summer of 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 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: $5,800,000 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 = $18,104; FY 17-18 = $11,546; FY 18-19 = $600,000; FY 19-20 = $4,950,000 Expenditure/Category: Prior Years 2017-18 Est. Act. 2018-19 2019-20 2020-21 2021-22 2022-23 Total Design/Construction $238,454 $11,546 $5,550,000 $0 $0 $0 $0 $5,800,000 Other $0 $0 $0 $0 $0 $0 $0 $0 Total Cost $238,454 $11,546 $5,550,000 $0 $0 $0 $0 $5,800,000 ATTACHMENT 1 Page 18 of 26 Metropolitan Wastewater Management Commission Capital Improvement Program FY 17-18 BUDGET AND CIP THERMAL LOAD MITIGATION – IMPLEMENTATION 1 Description: This project implements thermal load mitigation projects and may include recycled water use expansion at MWMC facilities, extension of recycled water services to community partners, and other strategies to reduce the MWMC’s liability for thermal load. The recycled water projects may include additional treatment, disinfection, pumping, pipeline, and distribution/irrigation systems. Status: Planning and conceptual design phase for expanded recycled water storage and use at the MWMC’s BMF/BRS/Biocycle Farm facilities as part of the Phase 3 Recycled Water/Thermal Load Mitigation Study, currently underway. Justification: The Phase 2 Recycled Water/Thermal Load Mitigation Study identified expanded use and storage of recycled water at the MWMC’s Biocycle Farm and adjacent facilities as a multiple-benefit, infrastructure-ready means to reduce thermal load impacts through effluent diversion. Enhanced Biocycle Farm irrigation could increase total harvest yields and market revenues. Project Driver: NPDES permit thermal load limit compliance as required under updated Oregon temperature standards and implementation. Project serves as a complement, or backstop measure, to the Riparian Shade Credits project. Project Trigger: Project implementation as necessary for compliance with Oregon’s temperature standard. Project Type: 100% Performance Improvement SDC Eligibility: 26.1% Estimated Project Cost: $9,084,000 (planned project budget includes $6,011,574 through FY 22-23 and an additional $3,072,426 beyond FY 22-23 as shown in the estimated cash flow projection below) Estimated Cash Flow: FY 13-14 = $78,925; FY 14-15 = $87,116; FY 15-16 = $110,122; FY 16-17 = $63,682; FY 17-18 = $32,992; FY 18-19 = $0; FY 19-20 = $0; FY 20-21 = $1,850,000; FY 21-22 = $1,900,000, FY 22-23 = $1,800,000; FY 23-24 = $2.000.000; FY 24-25 = $1,100,000 Expenditure/Category: Prior Years 2017-18 Est. Act. 2018-19 2019-20 2020-21 2021-22 2022-23 Total Design/Construction $428,582 $32,992 $0 $0 $1,850,000 $1,900,000 $1,800,000 $6,011,574 Other $0 $0 $0 $0 $0 $0 $0 $0 Total Cost $428,582 $32,992 $0 $0 $1,850,000 $1,900,000 $1,800,000 $6,011,574 ATTACHMENT 1 Page 19 of 26 Metropolitan Wastewater Management Commission Capital Improvement Program FY 18-19 BUDGET AND CIP ADMINISTRATION/OPERATIONS BUILDING IMPROVEMENTS Operations Building Description: The project will upgrade the Administration/Operations Building at the Water Pollution Control Facility (WPCF). This project is a follow up to the 2018 construction that is underway to build a new laboratory and expand the existing maintenance building. Status: Due to high construction bids received on March 14, 2017, the MWMC proceed with a reduced project scope and awarded a construction contract to build a new laboratory and expand the existing maintenance building. Staff is evaluating the next steps to repurpose the Administration/Operations Building. Justification: The original design and construction of the WPCF Administration/Operations Building was completed in the early 1980s. Since that time, use of the building has 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. Project Driver: The need to update and/or replace the existing Administration/Operations building is driven by the necessity to provide a safe and efficient work environment for the WPCF staff. Many of the planned changes stem from a changing wastewater/environmental business as a result of changing regulations since the WPCF was originally constructed in the early 1980’s. Project Trigger: Expansion and changes needed for functionality and safety. Estimated Project Cost: $5,000,000 Improvement SDC Eligibility: 20.6% Estimated Cash Flow: FY 19-20 = $660,000; FY 20-21 = $1,800,000; FY 21-22 = $2,540,000 Expenditure/Category: Prior Years 2017-18 Est. Act. 2018-19 2019-20 2020-21 2021-22 2022-23 Total Design/Construction $0 $0 $0 $1,000,000 $4,000,000 $0 $0 $5,000,000 Other $0 $0 $0 $0 $0 $0 $0 $0 Total Cost $0 $0 $0 $1,000,000 $4,000,000 $0 $0 $5,000,000 ATTACHMENT 1 Page 20 of 26 Metropolitan Wastewater Management Commission Capital Improvement Program FY 18-19 BUDGET AND CIP 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 electrical 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: As of January 10, 2018: This project is in the design development phase, and construction bidding is anticipated in Spring/Summer of 2018. Justification: Provide reliable electrical power distribution to the treatment plant processes. Project Driver: The medium voltage conductors and some of the associated equipment have reached the end of useful life and are increasingly at risk of failure. Project Trigger: This project is being scheduled for earliest possible implementation with construction in 2018. Project Type: 100% Performance Improvement SDC Eligibility: 0% Estimated Project Cost: $6,000,000 Estimated Cash Flow: FY 16-17 = $76,513; FY-17-18 = $1,323,487; FY 18-19 = $4,600,000 Expenditure/Category: Prior Years 2017-18 Est. Act. 2018-19 2019-20 2020-21 2021-22 2022-23 Total Design/Construction $76,513 $1,323,487 $4,600,000 $0 $0 $0 $0 $6,000,000 Other (planning) $0 $0 $0 $0 $0 $0 $0 $0 Total Cost $76,513 $1,323,487 $4,600,000 $0 $0 $0 $0 $6,000,000 ATTACHMENT 1 Page 21 of 26 Metropolitan Wastewater Management Commission Capital Improvement Program FY 18-19 BUDGET AND CIP INCREASE DIGESTION CAPACITY Description: Installation of a fourth digester for expanded production of Class B biosolids and installing some upgrades to the existing cogeneration system. This project also supported the plant-wide landscaping work that was completed in December of 2012. Status: As of January 12, 2018: The project to Increase Digestion Capacity is in the construction phase of building a fourth digester. 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 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 = $1,670,460; FY 17-18 = $10,393,205; FY 18-19 = $2,500,000 Expenditure/Category: Prior Years 2017-18 Est. Act. 2018-19 2019-20 2020-21 2021-22 2022-23 Total Design/Construction $3,759,965 $10,393,205 $2,500,000 $0 $0 $0 $0 $16,653,170 Other $0 $0 $0 $0 $0 $0 $0 $0 Total Cost $3,759,965 $10,393,205 $2,500,000 $0 $0 $0 $0 $16,653,170 ATTACHMENT 1 Page 22 of 26 FY 18-19 BUDGET AND CIP Metropolitan Wastewater Management Commission Capital Improvement Program RECYCLED WATER DEMONSTRATION PROJECTS Description: Design, construction, permitting, and implementation of recycled water delivery systems to pilot recycled water uses at demonstration scale. Delivery may include tanker truck fills at the WPCF and connection to existing MWMC plumbing plus additional infrastructure needed to pipe water to identified points of use. Project may also entail onsite upgrades and retrofits to allow the use of recycled water, including watering truck equipment and wash rack plumbing and controls. Status: Conceptual design of demonstration project sites is underway through the Phase 3 recycled water/thermal load mitigation study (Thermal Load Mitigation Pre- Implementation). Justification: Demonstration of MWMC’s capability and consistency of recycled water for use in a safe effective and publicly accepted manner is a key step toward future, larger-scale, recycled water uses. Future recycled water uses may be an important strategy for diverting effluent from the Willamette River to meet NPDES permit discharge limits as well as to meet growing community water resource and resiliency needs. Project Driver: The Phase 2 recycled water implementation/thermal load mitigation study recommended demonstration scale use of Class A recycled water to address stakeholder acceptability issues identified as barriers to full-scale recycled water uses. Project Trigger: Pilot recycled water demonstration sites with willing, ready-to-proceed partners have been identified, including City of Eugene street tree watering and industrial aggregate site equipment washing. Project Type: 100% Performance Improvement SDC Eligibility: 26.1 Estimated Project Cost: $2,000,000 Estimated Cash Flow: FY 18-19 = $300,000; FY 19-20 = $1,700,000 Expenditure/Category: Prior Years 2017-18 Est. Act. 2018-19 2019-20 2020-21 2021-22 2022-23 Total Design/Construction $0 $0 $300,000 $1,700,000 $0 $0 $0 $2,000,000 Other $0 $0 $0 $0 $0 $0 $0 $0 Total Cost $0 $0 $300,000 $1,700,000 $0 $0 $0 $2,000,000 ATTACHMENT 1 Page 23 of 26 FY 18-19 BUDGET AND CIP Metropolitan Wastewater Management Commission Capital Improvement Program RIPARIAN SHADE CREDIT PROGRAM Description: This project facilitates the generation of water quality trading credits for temperature through implementation of riparian shade restoration projects. The primary project elements are the support and funding of the MWMC’s watershed interests through EWEB’s Pure Water Partners program and the ongoing long-term monitoring and reporting associated with the MWMC’s pilot “shade sponsorship” projects that were implemented in 2013-2016 and previously covered under the Thermal Load Mitigation Implementation 1 project sheet on prior year’s budget documents. Prior year’s expenses associated with the MWMC’s pilot “shade sponsorship” projects are not shown here but are shown under the Thermal Load Mitigation Implementation 1 project sheet. Status: On-going Justification: Sponsorship pilot projects have ongoing contractual obligations through the year 2034 to maintain the site monitoring and reporting required to maintain the MWMC’s regulatory credit. The Pure Water Partners program is the MWMC’s leading and most cost-effective strategy for thermal load compliance. The Pure Water Partners program starts in 2018, including initial outreach to identify qualified project sites to generate shade credits for the MWMC. Project Driver: Ongoing shade contract commitment plus additional NPDES permit compliance needs based on updated temperature standards and thermal load limits. Project Trigger: Impending NPDES permit renewal; currently in administrative extension. Project Type: 100% Performance Improvement SDC Eligibility: 26.1% Estimated Project Cost: $1,089,000 Estimated Cash Flow: FY 18-19 = $226,000; FY 19-20 = $227,000; FY 20-21 = $212,000; FY 21-22 = $210,000; FY 22-23 = $214,000 Expenditure/Category: Prior Years 2017-18 Est. Act. 2018-19 2019-20 2020-21 2021-22 2022-23 Total Design/Construction $0 $0 $0 $0 $0 $0 $0 $0 Other $0 $0 $226,000 $227000 $212000 $210000 $214000 $1,089,000 Total Cost $0 $0 $226,000 $227,000 $212,000 $210,000 $214,000 $1,089,000 ATTACHMENT 1 Page 24 of 26 FY 18-19 BUDGET AND CIP Metropolitan Wastewater Management Commission Capital Improvement Program CLASS A DISINFECTION FACILITIES Description: Provides disinfection facilities needed (along with filtration provided by existing facilities) to achieve Class A standards for pilot recycled water uses on non-MWMC sites. Includes the design, construction, and permitting, of Class A recycled water disinfection facilities. Status: Conceptual design prepared under the Thermal Load Mitigation Pre-Implementation project. Design/construction ready to proceed in FY18/19. Justification: Class A recycled water is necessary for pilot use of recycled water on non-MWMC sites. Demonstration of Class A quality and reliability is necessary for stakeholder acceptance and future adoption of expanded recycled water uses. Project Driver: The Phase 2 recycled water implementation/thermal load mitigation study recommended demonstration scale use of Class A recycled water to address stakeholder acceptability issues identified as barriers to full-scale recycled water uses. Project Trigger: Pilot recycled water demonstration sites with willing, ready-to-proceed partners have been identified, including City of Eugene street tree watering and industrial aggregate site equipment washing. Project Type: 100% Performance Improvement SDC Eligibility: 26.1% Estimated Project Cost: $750,000 Estimated Cash Flow: FY 18-19: $750,000 Expenditure/Category: Prior Years 2017-18 Est. Act. 2018-19 2019-20 2020-21 2021-22 2022-23 Total Design/Construction $0 $0 $750,000 $0 $0 $0 $0 $750,000 Other $0 $0 $0 $0 $0 $0 $0 $0 Total Cost $0 $0 $750,000 $0 $0 $0 $0 $750,000 ATTACHMENT 1 Page 25 of 26 Metropolitan Wastewater Management Commission Capital Improvement Program FY 17-18 BUDGET AND CIP THERMAL LOAD MITIGATION: PRE-IMPLEMENTATION Description: This project provides planning studies for thermal load mitigation measures including recycled water use and riparian shading projects. The project includes associated regulatory strategy development related to the temperature total maximum daily loads (TMDL), the temperature standard implementation, and NPDES permit renewal conditions. Status: 80% complete –the first two of three study phases are complete and Phase 3 study is finishing up in FY 18-19. Phase 3 further develops the Phase 2 recommendations to implement a riparian shade credit program, recycled water demonstration projects, and increased recycled water use and storage at the MWMC’s BMF/BRS. Phase 3 also re-assesses the likely thermal load limit in the MWMC’s upcoming NPDES permit and evaluates multiple long-term compliance strategies. Justification: A thermal load compliance strategy is needed for the future NPDES permit. The compliance strategy should balance cost-effectiveness, environmental outcomes, and community benefits to meet the MWMC’s overall goals. Further refinement of the strategies identified through the Phase1 and Phase 2 study efforts ensures ongoing commitment to those goals. Project Driver: Long-term need for NPDES permit thermal load compliance strategies related to future temperature standard requirements. Project Trigger: NPDES permit renewal readiness. Project Type: 100% Performance Improvement SDC Eligibility: 26.1% Estimated Project Cost: $818,118 Estimated Cash Flow: FY 13-14 = $ 295,995; FY 14-15 = $48,908; FY 15-16 = $34,165; FY 16-17 = $116,314; FY-17-18 = $122,736; FY 18-19 = $190,000; FY 19-20 = 10,000 Expenditure/Category: Prior Years 2017-18 Est. Act. 2018-19 2019-20 2020-21 2021-22 2022-23 Total Design/Construction $0 $0 $0 $0 $0 $0 $0 $0 Other $495,382 $122,736 $200,000 $0 $0 $0 $0 $818,118 Total Cost $495,382 $122,736 $200,000 $0 $0 $0 $0 $818,118 ATTACHMENT 1 Page 26 of 26 M E M O R A N D U M DATE: TO: FROM: SUBJECT: ACTION REQUESTED: _____________________________________________________________________ ISSUE BACKGROUND DISCUSSION RECOMMENDATION AND ACTION REQUESTED M E M O R A N D U M DATE: TO: FROM: SUBJECT: ACTION REQUESTED: _____________________________________________________________________ ISSUE BACKGROUND financial plan policy updates DISCUSSION ACTION REQUESTED ATTACHMENTS User fees, Septage fees Interest income Other Operating Revenues OperangReserveRateStabilityReserveRateStabilizaonReserveWorkingCapitalReserveSRFLoanReserveInsuranceReserveCapitalReserveEquipmentReplacementRsrveSDCReservesSDC reimbursement fees SDC Improvement fees Interest earnings TocovercashﬂowneedsbetweenreceiptsTocoverexpensesfor2monthsinunforeseencircumstances.ForusetoavoidmajorrateswingsRequiredbybondcovenants,it’sonlyuseistoincreasenetrevenuesifeverweareindangerofnotmeengourcoveragerao.RequiredbyDEQloandocumentstoguaranteepaymentofdebtserviceonSRFloans.Towardhighdeducbleintheeventofmajorclaim.TofundcapitalprojectsasdeterminedbytheCommissionintheCIPplan.Fundedbyoperangrevenuestosaveforrecurringreplace-mentofequipmentandvehiclesasdeterminedbytheassetmanagementteam.UsedforcapitalprojectsthatqualifyforuseofSDCrevenuesperORS223.307includingdebtservicerepayment.ATTACHMENT 1 ATTACHMENT 1