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HomeMy WebLinkAbout03-08-19_Agenda_Packet THE FULL PACKET IS POSTED ON THE WEBSITE www.mwmcpartners.org MWMC MEETING AGENDA Friday, March 8, 2019 @ 7:30 a.m. Water Pollution Control Facility, Willamette Meeting Room 410 River Ave., Eugene, OR 97404 Turn off cell phones before the meeting begins. 7:30 – 7:35 I. ROLL CALL 7:35 – 7:40 II. CONSENT CALENDAR a. MWMC 2/08/19 Minutes b. Final Report on P80092 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 before the meeting starts. 7:45 – 7:50 IV. ELECTION OF OFFICERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Matt Stouder Action Requested: Nominate and elect a Commission President and Vice President to serve through March 2020. 7:50 – 8:05 V. AWARD OF CONTRACT TO THE FRESHWATER TRUST FOR CREDIT PROGRAM MANAGER SERVICES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Todd Miller Action Requested: By motion, approve Resolution 19-03 8:05 – 8:20 VI. MOBILE WASTE HAULER RATE INCREASE . . . . . . . . . . . . John Huberd, Dave Breitenstein Action Requested: Direction regarding mobile waste hauler rates 8:20 – 8:55 VII. PRELIMINARY FY 2019-20 REGIONAL WASTEWATER PROGRAM (RWP) BUDGET . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Matt Stouder, Dave Breitenstein, Katherine Bishop Action Requested: Provide direction to staff THE FULL PACKET IS POSTED ON THE WEBSITE www.mwmcpartners.org 8:55 – 9:10 VIII. BUSINESS FROM COMMISSION, GENERAL MANAGER, & WASTEWATER DIRECTOR 9:10 IX. ADJOURNMENT The meeting location is wheelchair-accessible. For the hearing-impaired, an interpreter can be provided with 48-hours-notice prior to the meeting. To arrange for service, call 541-726-3694. All proceedings before the MWMC are recorded. MWMC MEETING MINUTES Friday, February 8, 2019 at 7:30 a.m. City of Springfield City Hall, Library Meeting Room 225 Fifth St., Springfield, OR 97477 President Ruffier opened the meeting at 7:30 a.m. Roll call was taken by Kevin Kraaz. ROLL CALL Commissioners Present: Pat Farr, Doug Keeler, Walt Meyer, Joe Pishioneri, Peter Ruffier and Jennifer Yeh Absent: Bill Inge Staff Present: Meg Allocco, Todd Anderson, Jolynn Barker, Katherine Bishop, Dave Breitenstein, John Huberd, K.C. Huffman (attorney), Laura Keir, Tonja Kling, Kevin Kraaz, Shawn Krueger, Troy McAllister, James McClendon, Todd Miller, Michelle Miranda, Josh Newman, Sharon Olson, Loralyn Spiro and Matt Stouder. PUBLIC COMMENT There was no public comment. EXECUTIVE SESSION – BIOGAS: INTERCONNECTION AGREEMENT with NORTHWEST NATURAL (NWN) President Ruffier adjourned regular session and convened Executive session at 7:33 a.m. for the purpose of consulting with legal counsel pursuant to ORS 192.660(2)(f) about information or records exempt from public disclosure because they are subject to attorney-client privilege. President Ruffier asked if any representatives of the news media were present or general public; there were none. Staff was allowed to attend the Executive session. President Ruffier closed the Executive session at 8:08 a.m. and opened the regular session. SOLE SOURCE PROCUREMENT Kristin Denmark, Legal Counsel, presented to the Commission for approval Resolution 19-01, which awards a contract for the services of receiving and distributing Biomethane produced at the MWMC’s facilities and related services to Northwest Natural Gas Company without competition and through a sole-source procurement. MWMC Meeting Minutes February 8, 2019 Page 2 of 6 President Ruffier asked if there were any questions or discussion on the agreement. There was none. MOTION: IT WAS MOVED BY COMMISSIONER PISHIONERI WITH A SECOND BY COMMISSIONER KEELER TO APPROVE RESOLUTION 19-01. THE MOTION PASSED UNANIMOUSLY 6/0. CONSENT CALENDAR a. MWMC 1/11/19 Minutes MOTION: IT WAS MOVED BY COMMISSIONER PISHIONERI WITH A SECOND BY COMMISSIONER KEELER TO APPROVE THE CONSENT CALENDAR AS PRESENTED. THE MOTION PASSED UNANIMOUSLY 6/0. AMEND BIOCYCLE FARM REPLANTING SERVICES AGREEMENT Todd Miller, Environmental Management Analyst, made staff presentation. The MWMC’s Biocycle Farm, Management Unit 2 (MU-2) is currently being replanted by the Northwest Youth Corps (NYC). Additional NYC services are needed to address a modified replanting strategy. Previous amendment budget authority under Resolution 18-08 has been fully utilized. Additional amendment budget is needed in the amount of $31,725. Approval of Resolution 19-02 is request to authorize the needed amendment. Mr. Miller went over the difficulties endured in planting MU-2 in 2018: dry, hard soils required water for proper planting, irrigated fields promoted rapid weed growth, dry conditions, and improper planting. MU-1 had two-year-old trees die off from a vole infestation. He said that one third of the cuttings needed for replanting will come from MU1 and the rest will need to be purchased from GreenWood Resources. The amended budget will provide for 4.5 crew weeks of additional services to include the following: February, collect cuttings February, inter-planting trees in MU-1 due to trees lost to vole damage April, replanting 5 acres in MU-2 to replace trees lost due to poor field conditions April or earlier, inter-plant trees in MU-2 April – August, weed management September, pruning time The 4.5 crew weeks comes out to $31,725. The requested amendment will bring the total agreement not-to-exceed value to $133,787. This amended value is 65% of the competitor’s bid received for MU-2 replanting in spring 2018. Commissioner Keeler asked about how many people in the crew. Mr. Miller replied there are 12-15 people on a crew and the average cost is $7000/crew week. Commissioner Farr and Commissioner Meyer both stated they were glad we are using the Northwest Youth Corp. Commissioner Meyer said he was wondering if the Commission should give a contingency in case later on there is additional vole or mortality. It could be authority for additional $10,000 for unforeseen circumstances. President Ruffier stated that staff can always come back for future request for additional funds. MWMC Meeting Minutes February 8, 2019 Page 3 of 6 Mr. Stouder pointed out that we normally provide for contingency in the initial agreement and not the amendment. K.C. Huffman, legal counsel, stated it wouldn’t be a contingency but a designated item and the Commission does have the authority to do that. Commissioner Pishioneri suggested approving the amendment now and adding the additional amount in the next budget instead of trying to plug it in mid-stream. Mr. Stouder said that there is a poplar component in the budget for the harvest of MU-3. It is possible that we could utilize some of that money. He also thought Mr. Miller would be tracking this, and over the next couple of months it would become apparent if there would be a need for additional funds. There will be one or two opportunities to do a supplemental budget and it would take minimal staff time to prepare a supplemental budget. Commissioner Pishioneri suggested getting ahold of WorkSource Partnership; maybe money is available to help with some of these types of programs that are for the workforce development. Mr. Huffman said he would suggest the supplemental budget to keep everything clean. If there was a time crunch, he would suggest doing it now but since it is not currently needed, it makes more sense to do a supplemental budget when needed. Commissioner Ruffier asked if Mr. Miller was satisfied with the evolution of learning by the Northwest Youth Corp and their performance on the project going forward. Mr. Miller replied that he will have a wrap up discussion with them. They are interested in doing this for the long term. He is pleased with the overall executive level management. He said there are some issues to recognize. We did not have the same crews; just as one crew was trained up and ready, they were scheduled to move off on a forest project and a different crew came in and needed to be trained up. That is a disadvantage to this model. Mr. Miller thinks that as the Corps gains the institutional knowledge about how to do the farm it will improve. Mr. Miller said this year we will be preparing for the harvest of MU-3 that is scheduled for 2020. Staff is developing a concerted outreach effort to make more entities aware of the opportunity to provide harvest services as well as utilize and manufacture materials out of the poplar. So when we go out for bid we can get a holistic view on that as possible and hopefully have that last rotation of trees really well lined-up for the best success. MOTION: IT WAS MOVED BY COMMISSIONER PISHIONERI WITH A SECOND BY COMMISSIONER MEYER TO APPROVE RESOLUTION 19-02. THE MOTION PASSED UNANIMOUSLY 6/0. FY 2019-20 MWMC CAPITAL BUDGET & 5-YEAR CAPITAL PLAN Troy McAllister, Managing Civil Engineer, Todd Anderson, Interim Operations Manager, and Josh Newman, Managing Civil Engineer presented the draft FY 2019-20 Regional Wastewater Program (RWP) Capital Budget and the 5-Year Capital Plan. MWMC Meeting Minutes February 8, 2019 Page 4 of 6 Mr. McAllister said the projects that are being finished up for FY 18-19 are the Increase Digestion Capacity, and the Electrical Distribution System Replacement/Upgrade. Projects being carried over to FY 2019-20 are the following: Operations and Maintenance Building improvements, Decommission WPCF Lagoon, Renewable Natural Gas (RNG) Upgrades Facilities, Thermal Load Mitigation: Pre-Implementation, Poplar Harvest Management Services, Facilities Plan Engineering Services, Recycled Water Demonstration Project, Class A Disinfection Facilities, Resiliency Planning, and Riparian Shade Credit Program. Commissioner Meyer asked how many certified credits have we accumulated on the Riparian Shade Credit Program. Mr. Miller responded that the credits are measured in kilocalories per day and we are just over 20 million kilocalories per day on the three pilot projects and they are certified and registered in MWMC’s name. New Projects for FY 2019-20 are Aeration Basin improvements Phase 2 and Administration Building Improvements. The total carryover funding is $15,359,000; the total new budget projects are $2,000,000 which equals $17,359,000 total funds for projects. Mr. Anderson went over the Equipment Replacement fund and Major Rehabilitation fund. The FY 2019- 20 Equipment Replacement fund is for the following: three farm tractors (BMF and Biocycle Farm), Cargo Van (Operations), Small Shop Vehicle/Box Van (plant), Pro Anion MCS ION Chromatograph with laptop (Operations), Segmented Flow Analyzer (Operations), Computer File Server (Operations), Sludge Blanket Level System (Secondary), LEL Detection System (digesters). Total budget for equipment is $621,000. The Major Rehabilitation projects for FY 2019-20 are the following: dome interior coating repair (Digester #2); dredge rebuild (BMF); collector mechanism, clarifier rake arms recoating (Secondary), Yokogawa Vnet DCS migration (Operations), Operations/Maintenance Building Improvements (plant), roof replacement on the gravity belt thickener building, roof replacement on the MWMC Modular building (plant). Total budget for rehab is $520,000. Mr. Newman showed Exhibit 13, the 5-Year Capital Program (Attachment 1, page 8), stating the 5-year total capital improvements was $56,690,000. Commissioner Meyer asked about the big increase in Major Rehab in FY 21-22. Mr. Anderson said he believes it is the coatings on the Pretreatment structure. Commissioner Ruffier asked if the $1 million for the Administrative Building Improvements is a place holder or is there a more defined estimate. Mr. McAllister replied that it will allow for a consultant agreement for design. Mr. Stouder added it is a placeholder to start the design at the end of this fiscal year and then if we awarded the contract at the end of the fiscal year, we could start design in FY 2019- 20. President Ruffier asked about the $4 million in FY 21-22 for the Administrative building. Mr. Stouder replied it is a construction place holder. Commissioner Ruffier asked if the potential for new permit requirements are rolled into the Comprehensive Facility Plan Update. Mr. Stouder replied it is intended for the new permit as there will be associated requirements which will require major upgrades. It is the support for the planning and MWMC Meeting Minutes February 8, 2019 Page 5 of 6 processes for a new permit. The Comprehensive Facility Plan Update is the one that gets pushed out every year due to the delayed status of receiving a new permit. We will continue to push it out as the permit continues to not be issued. President Ruffier asked if Mr. Stouder had received an update on the permit renewal. Mr. Stouder replied no; DEQ says a couple years every time the question is asked. We do know that our permit is one of the more challenging permits and therefore will not be one of the first permits issued by the DEQ. So for now, he expects it to be a couple of years. Commissioner Meyer stated that the DEQ just signed a consent agreement on the schedule for permitting. President Ruffier asked where the MWMC is on the consent calendar. Mr. Stouder replied that we are not on the permit issuance plan; nobody on the Willamette River is on the permit calendar this year. He believes Ashland and Medford may be within the next year. They will be important for us to watch with respect to trading. Commissioner Ruffier would appreciate if they look at a “green” roof for the gravity belt thickener building. Mr. Anderson said he would look into the cost and efficiency of a green roof versus the regular roof. Commissioner Pishioneri asked about the modular roof. Mr. Anderson said it is around 14-years-old and it may still be under warranty, if so it would be pro-rated. Staff will be looking into that. Commissioner Pishioneri suggested a metal roof, it lasts longer. Mr. Anderson said we could get some bids on that. Commissioner Ruffier asked if the expansion on the Glenwood Pump Station is based on projected increase in the service area. Mr. Stouder replied yes, but there is also a pump performance issue that was identified previously with respect to piping underneath the river. Mr. Newman added that he is working with Jacobs (previously known as CH2M Hill) who put a task together to pick up where work was left off. Previously, draw-down tests had been performed which found the 12-inch force main does not perform as it theoretically should. There are two lines (force mains) that run under the river, one is a 20-inch line (no problems) and the other is the 12-inch line. The 12-inch line was flushed out and a lot of debris came out and then it was tv’d – it was clean. So now we are left with a mystery and Jacobs is going to help us figure it out. Mr. Newman reaffirmed that the expansion of the Glenwood Pump Station was based on projections of the service area and the timing of when we would do it is based on flows as development happens. BUSINESS FROM COMMISSION, GENERAL MANAGER, AND WASTEWATER DIRECTOR Commissioner: Commissioner Pishioneri recognized Commissioner Keeler being reappointed to the Commission as the City of Springfield citizen represented. Mr. Stouder added that Commissioner Keeler has been on the Commission since 1997 and that we appreciate his service. General Manager: SDCs on Small Homes – The Commission set aside $100,000 in last year’s budget for small homes SDCs, 800 square feet or smaller. The program is in place until June 30, 2019 and then it will sunset unless extended by the Commission. To date, there have been two homes in Springfield [that used MWMC Meeting Minutes February 8, 2019 Page 6 of 6 the funds] and none in Eugene. Staff suggests rolling the $97,000 forward into the FY 19-20 budget. Then if the Cities extend their programs, the Commission could extend ours. o Commissioner Farr requested in the future we look at other fees that are charged for similar types of projects. For instance, there are fees charged on some Lane County properties that are used to address housing issues. There has been a Phase II Stormwater Permit issued by DEQ. There are six MS4 Phase II communities appealing the permit, they include Springfield, Bend, Albany, Corvallis and a couple of smaller communities. There have been some challenges in negotiating with the DEQ and working on that process. Wastewater Director: The Maintenance building will be finished in February/March. They gave us a move-in date of February 19, 2019 so we can move in while they wrap up the project. The 2019 Legislative Session is under way. There are number of bills that staff is tracking, some with greater concern than others and a few we are providing our input working with ACWA. o Senate Bill 286 is related to biosolids; it would allow more local control. It would allow counties to restrict or add conditions to biosolids applications/processes. We are strongly opposed to that because the Federal and State rules and the program administered by the State are the most efficient and effective management means to use in the best interest of everyone involved. o House Bill 2065 requires each manufacturer of covered drugs that are sold within this state to participate in a drug take-back program for the purpose of collecting those drugs for disposal. It requires the take-back program to be operational by February 1, 2021. The DEQ would be responsible to administer it. ACWA is supporting this bill. o House Bill 2340 relates to residential sales; it would require real estate transactions to disclose whether the private lateral was scoped or not. o Mr. Newman added that he is watching Senate Bill 98 that allows the natural gas company to buy RNG directly from producers. That is one that ACWA is tracking and also wrote a letter of support. ADJOURNMENT President Ruffier adjourned the meeting at 9:16 a.m. Submitted by: Kevin Kraaz AGENDA ITEM IIb M E M O R A N D U M DATE: February 28, 2019 TO: Metropolitan Wastewater Management Commission (MWMC) FROM: John Casto, Design and Construction Coordinator SUBJECT: Final Report – Electrical Distribution System Upgrades, Project P80092 ______________________________________________________________________________ Project Location: Water Treatment Facility 410 River Avenue Eugene, Or. 97404 MWMC Design Consultant: CH2M Hill Engineers 1100 NE Circle Blvd., Suite 300 Corvallis, Or. 97330 MWMC Project Manager: John Casto City of Springfield 225 Fifth Street Springfield, Or. 97477 General Contractor: Lantz Electric 34531 Highway 58 Eugene, Or. 97405 Major Subcontractors: Camp Creek Electric 34597 Highway 58 Eugene, Or. 97405 Notice to Proceed: May 1, 2018 Substantial Completion: February 25, 2019 Final Completion: March 25, 2019 Memo: Final Report Electrical Distribution System Upgrades, Project P80092 February 28, 2019 Page 2 of 4 FINAL REPORT SUMMARY PROJECT OVERVIEW: The Electrical Distribution System Upgrades project was initiated in 2016 due to the risk of the insulation on the medium voltage conductors (wiring) failing. These conductors were installed in the 1980’s and the MWMC on-call consultant CH2M HILL, now Jacobs, recommended replacing the conductors as early as possible to minimize the risk of losing power to key treatment processes. Additional safety and redundancy features were identified during design and incorporated into the project. The primary objectives of this project were the replacement of the conductors and added electrical redundancy. The work included the following: 1. Replacement of medium voltage conductors. 2. Modifications to the Primary Power Switching Station to add an Automatic Transfer Switch (ATS) including associated site work. The ATS contract was assigned to the Contractor with supplier directly paid by the Owner. This allows for complete redundant power for the Wastewater Treatment Facility from the Willakenzie Pump Station. 3. Modify an existing section of the 4,160 Turbo Blower Switchgear (04MCC43-05) located in the Secondary Building to replace the fuse and contactor with a new fused load break switch that will power the transformer and 480V blower. 4. Associated site-work improvements including electrical duck banks and equipment pads. 5. Installation of sectionalizers for above ground splicing and future connection points. The MWMC went out to bid on March 12, 2018 and received one bid on April 3, 2018. The bid result is listed below. Contractor Total Lump Sum Bid Engineer’s Estimate $2,352,549 Lantz Electric, Inc. $1,995,000 The apparent low bid submitted by Lantz Electric, Inc., was reviewed by staff, the design consultant (CH2M HILL Engineers), and the MWMC legal counsel (Thorp, Purdy, Jewett, Urness & Wilkinson, P.C.) and found to be in substantial compliance with the bidding requirements. The apparent low bid amount was below the design consultant’s construction cost estimate of $2,352,549 and within the total project budget ($6 million). The Notice of Intent to Award was sent out on April 5, 2018 followed by a seven day protest period. No protests were received. On April 30, 2018 the MWMC entered into a contract with Lantz Electric Inc. for the Electrical Distribution System Upgrades (P80092). Memo: Final Report Electrical Distribution System Upgrades, Project P80092 February 28, 2019 Page 3 of 4 PROJECT TASKS AND SCHEDULE: A summary of the major project tasks and associated finish dates is presented in Table 1 below. Table 1. Major Task Description Finish Date Pre-purchase the ATS (supplier: Graybar) 01/30/18 Construction Notice to Proceed 05/01/18 Mobilization/Start Construction 05/21/18 ATS Start up 10/20/18 Substantial Completion 02/25/19 Final Completion 03/25/19 APPLICABLE PERMITS: Structural and electrical permit #18-02160-01 from the City of Eugene issued on March 23, 2018. PROBLEMS ENCOUNTERS AND/OR UNUSUAL INCIDENTS: The MWMC has three electrical conduits crossing the Owosso Bridge that carry two sets of conductors between the Water Pollution Control Facility (WPCF) and the Willakenzie Pump Station (WPS) and a spare conduit. It was discovered that the three conduits were blocked and out of alignment on both ends of the bridge. Permits to work in the public way were obtained on October 3, 2018 and the bridge was closed while the concrete and fill material were removed on both ends of the bridge. It was then discovered that in the original construction flexible rubber couplings had been used to join the conduits on the bridge to those in the ground approaching the bridge. The conduits approaching the bridge had settled to the point that the conductors were pinched at the rubber couplings. A generator supplied redundant power to the WPS while the new conductors were pulled in and landed. All of the conduits were eventually realigned and secured, new conductors pulled in, concrete replaced and the bridge re-opened on November 30, 2018. CONTRACT COST SUMMARY: There were a total of four (4) construction change orders on this project. A summary of the contract costs is provided in Table 2. The Change Orders were the result of fourteen Contractor Change Requests and two Contractor Change Directives. Table 2. Electrical Distribution System Upgrades P80092 Cost Original Contract Amount $1,995,000.00 Change Orders $ 123,102.35 Final Contract Amount $2,118,102.35 ATS pre-purchased equipment from Graybar (Eugene, OR): $_191,000.00__ Memo: Final Report Electrical Distribution System Upgrades, Project P80092 February 28, 2019 Page 4 of 4 ADDITIONAL INFORMATION: As-built documents are archived within the P80092 project records (electronic format). FINAL CONCLUSIONS: The MWMC project P80092 was a successful project. Many factors contributed to the overall project success such as: 1. The dedication and knowledge of the onsite staff. Their willingness to work with the Contractor was crucial to the success of this project. 2. The knowledge and expertise of the design firm of CH2M HILL Engineers, now Jacobs. 3. The expertise and craftsmanship of the electrical contractors field crews. 4. Even though there were about eight plant outages scheduled for this P80092 construction work, none cause any plant upsets or permit violations. ______________________________________________________________________________ M E M O R A N D U M DATE: February 28, 2019 TO: Metropolitan Wastewater Management Commission (MWMC) FROM: Matt Stouder, General Manager SUBJECT: Election of Officers ACTION REQUESTED: Nominate and elect a Commission President and Vice President to serve through March 2020 ISSUE The Commission elects new officers every March for one-year terms and is requested to determine officer positions for the term of March 2019 through March 2020. DISCUSSION Traditionally, the Commission has employed a practice of rotating the officer positions among the three jurisdictions on an annual basis, and rotates the Commissioner serving as Vice President to President. However, there are no formalized guidelines in the MWMC Bylaws regarding the rotation of officers among the jurisdictions, nor any restrictions on the number of consecutive years a Commissioner serves in a particular office. President Peter Ruffier is a Eugene citizen representative, and vice president Doug Keeler is a Springfield citizen representative. If the Commission chooses to follow its traditional practice, Commissioner Keeler would become President, and the new Vice-President would be a representative from Lane County. ACTION REQUESTED The Commission is requested to nominate and elect from among its members a Commission President and Vice President to serve through March 2020. ______________________________________________________________________________ M E M O R A N D U M DATE: February 28, 2019 TO: Metropolitan Wastewater Management Commission (MWMC) FROM: Todd Miller, Environmental Management Analyst SUBJECT: Award of Contract to The Freshwater Trust for Credit Program Manager Services ACTION REQUESTED: Approval of Resolution 19-03 ISSUE Staff has selected The Freshwater Trust to provide Credit Program Manager (CPM) services to the MWMC related to the Riparian Shade Credit Program project (P80080) through a competitive request for qualifications (RFQ)/ request for proposals (RFP) process. Staff now requests authorization to execute a contract with The Freshwater Trust for Phase 1 of the agreement. BACKGROUND In August 2018, the MWMC entered into an intergovernmental agreement (IGA) with the Eugene Water & Electric Board (EWEB) to partner for credit development under EWEB’s Pure Water Partners (PWP) program. The PWP program involves cost-sharing associated with outreach to, investment in, and documentation of watershed protection and restoration projects as administered through a McKenzie Watershed Conservation Fund (hereafter, the Fund) by a third-party (Cascade-Pacific Resource Conservation & Development (CPRCD)). Among the responsibilities of the MWMC under the IGA are: Delegate a Credit Production Manager to provide direction and decisions on site recruitment and implementation related to fulfilling the MWMC's objectives. Establish, through formal agreement, CPRCD as fiscal manager of the MWMC's funds via the Fund for promoting and implementing MWMC's objectives. Provide annual funding, via the Fund, for general support of ongoing PWP activities and associated landowner outreach and engagement, riparian assessments and scoring processes at an amount of $15,000 per year for the first 5 years of program. The MWMC expanded project P80080 in FY18-19 to include necessary funding for the PWP effort under the MWMC’s Riparian Shade Credit Program. Formerly this project covered only the pilot riparian shade sponsorship projects at the Springfield Millrace and Cedar Creek. Memo: Award of Contract to The Freshwater Trust for Credit Program Manager Services February 28, 2019 Page 2 of 2 Staff had anticipated that under the PWP framework, the CPM will be overseeing approximately $2,000,000 in shade credit implementation on behalf of the MWMC and the CPM role would be awarded under competitive procurement. However through participation in the PWP discussions in 2018, it became clear that the CPM assistance would need to be expanded to include an upfront task to help establish the operational framework and relationships under the Fund. Therefore, it became necessary to seek the competitive procurement earlier than previously contemplated to bring the CPM expertise into developing the Fund administration. Staff proceeded with a RFQ followed by RFP process starting on January 7, 2019 and closing on February 15, 2019. DISCUSSION Through the RFQ/RFP process, The Freshwater Trust was selected to fulfill the CPM services contract. The selection process is further described in the Attachment 1. The RFQ/RFP outlines a two phase contract need: Phase 1 – Credit Program Framework Establishment Phase 2 – Credit Program Implementation The services required for each phase are detailed in the RFP for Water Quality Trading Credit Program Manager (Attachment 2). As outlined in the RFP, CPM services are requested starting with the next Fund development workshop scheduled for March 14, 2019. The Freshwater Trust’s proposal outlines four tasks under Phase 1 totaling $193,063. The basis for Phase 2 costs will be outlined in the contract agreement; any commitment for funding Phase 2 will come via a later amendment. The full amount of the Phase 1 budget will be added to the FY18-19 budget for project P80080 via Supplemental Budget 3 (SB3). SB3 will be presented to the Commission for approval in the spring of 2019. ACTION REQUESTED Staff requests approval of Resolution 19-03 (Attachment 3) to authorize execution of a contract with The Freshwater Trust for CPM services. ATTACHMENTS 1. Contractor Selection memo 2. RFP 3. Resolution 19-03 M E M O R A N D U M DATE: February 21, 2019 TO: Metropolitan Wastewater Management Commission FROM: Todd Miller, Environmental Management Analyst SUBJECT: MWMC Project P80080 Riparian Shade Credit Program selection of contractor for Credit Program Manager services ______________________________________________________________________________ The MWMC requires the services of a contractor to act as the MWMC Credit Program Manager (CPM) to oversee, prioritize, coordinate, and accredit riparian shade restoration projects under the Pure Water Partners collaborative. The CPM services will be phased in, with potential contract value exceeding $2,000,000. To ensure an open opportunity for the required CPM services, the MWMC issued a Request for Qualifications (RFQ) followed by a Request for Proposal (RFP). The Freshwater Trust was selected as the sole, qualified, responsive candidate. The RFQ was issued on January 7, 2019 and closed on January 28, 2019. The RFQ was advertised via the Daily Journal of Commerce, the Eugene Register-Guard, the MWMC web site, and shared via email communications to known organizations in the field of watershed restoration, management, and water quality compliance. The Freshwater Trust was the only organization to express interest and to submit a response to the RFQ. Todd Miller serves as the project manager and reviewed the RFQ response for minimum qualifications and completeness. This included ensuring The Freshwater Trust had all the capabilities to provide the necessary services, meet insurance requirements, and meet the MWMC’s standard contract conditions. Three references were called. The references were: Tom Suttle, City of Medford Paula Brown, City of Ashland Ralph Meyers, Idaho Power Company All references gave The Freshwater Trust positive recommendations. Among the positive comments were: Great working relationship and eager to get the projects going ATTACHMENT 1 Page 1 of 3 Memo: MWMC Project P80080 Riparian Shade Credit Program selection of contractor for Credit Program Manager services February 21, 2019 Page 2 of 2 Good communication and easy to get a hold of Provided key assistance in working with regulatory agencies Did what they said they would do (went out and secured landowner agreements and produced credit sites) with virtually no effort on the agency’s part Among pointers the references gave in negotiating a working relationship that would work best for the agency were: Phase in project timeline with anticipated number of credits to be produced Ability to adopt tasks/work elements performed by the agency or under the agency’s control; The Freshwater Trust is adaptable to level of service needed In-house strengths may be kept in-house (e.g. construction management), and integrate The Freshwater Trust as needed for elements outside the agency’s areas of expertise Document the history/context of the project and written agreements with the regulatory agency (this is important to maintaining correct project focus) Provide a clear schedule of costs/investment over the project timeline to ensure project performs as needed for regulatory compliance but does not exceed intended expenditure rate (e.g. be clear if budget is to be spread evenly over 10 years or if all sites/landowners can be enrolled in the initial years with bulk of costs up front) The RFQ included a scored qualifications section. The scoring was conducted through mutual agreement of an inter-agency review committee representing the implementation of the Pure Water Partners collaborative. The committee was composed of: Todd Miller, City of Springfield/MWMC Karl Morgenstern, Eugene Water & Electric Board (EWEB) Kirk Shimeall, Cascade-Pacific Resource Conservation & Development (CPRCD) The scored results are attached (MWMC Credit Program Manager, RFQ Respondents Score Sheet). Across six categories scored on a 0 to 10 scale, the scores ranged from 7 to 10 with an overall score of 8.5. This score represents a high satisfaction in the capabilities of The Freshwater Trust to provide the CPM services. An RFP was issued to The Freshwater Trust on February 4, 2019 and closed on February 15, 2019, on which date The Freshwater Trust submitted their proposal. The proposal will form the basis of the contract which includes an initial Phase 1 for program implementation assistance, and a later Phase 2 for credit implementation services to be initiated under an amendment. ATTACHMENT 1 Page 2 of 3 MWMC Credit Program Manager, RFQ Respondents Score Sheet Contractor must show familiarity, knowledge, and experience in the below categories. Each category will be scored from 0 to 10, with a score of 5 based on meeting the minimum requirements for each category. The MWMC’s evaluation team may score higher or lower based on the demonstrated capabilities of the respondent. Respondent must score at least a 5 in each of the scored categories. Higher scores will lead to an overall higher ranked response. The MWMC, in its discretion, may qualify a respondent with less than a score of 5 in a category if the overall strengths of the qualifications merit consideration of lower capability in some area(s). Final scores compiled after discussion of individual scoring on 1/30/19 by Pure Water Partners inter-organizational team of Todd Miller (City of Springfield), Karl Morgenstern (EWEB), and Kirk Shimeall (Cascade Pacific RC&D). Overall score 8.5. Category Minimum Requirement Additional Strengths Score NPDES permit compliance Basic understanding of NPDES permit process and compliance requirements, including compliance schedules and reporting. Experience working with clients and DEQ directly on NPDES permit compliance strategies. (see pp. 6,9 of TFT response) 8 Oregon water quality trading rules and associated DEQ Internal Management Directive on implementation Understanding of requirements for compliance-grade water quality trading credits. Experience implementing projects designed to result in water quality trading credits. (see pp. 2-4,6-7,9 of TFT response) 10 Riparian restoration implementation and management Expertise in restoration project management, including restoration plan development and implementation. Experience with implementing riparian shade restoration projects developed to performance metrics for water quality trading credits. (see pp. 2-4,7 of TFT response) 9 Trading credit verification, monitoring, documentation, recording, and maintenance. Understanding of third-party verification, credit accounting, and long term credit maintenance. Has produced and documented verified water quality trading credits. (see pp. 7 of TFT response) 10 Private landowner agreements and relationships Experience with implementing projects on private lands, working within easements or lease-holdings, and working directly with private landowners. History of successful landowner relationships for conservation and restoration practices. (see pp. 7 of TFT response) 7 Collaborative project implementation and partnering Demonstrated capacity to work as part of a team with multiple partners and multiple funding sources. Track record of successful multi-partner project implementation, including resource sharing. (see pp. 8 of TFT response and reference checks) 7 ATTACHMENT 1 Page 3 of 3 REQUEST FOR PROPOSAL FOR WATER QUALITY TRADING CREDIT PROGRAM MANAGER METROPOLITAN WASTEWATER MANAGEMENT COMMISSION EUGENE-SPRINGFIELD, OREGON February 4, 2019 MWMC Project P80080 – Riparian Shade Credit Program RESPONSE IS DUE NOT LATER THAN 2:00 PM, FRIDAY, FEBRUARY 15, 2019 ATTACHMENT 2 Page 1 of 8 ATTACHMENT 2 Page 2 of 8 REQUEST FOR PROPOSAL To: The Freshwater Trust Date: February 4, 2019 From: Todd Miller, City of Springfield Environmental Management Analyst Project: MWMC Riparian Shade Credit Program (P80080) Pursuant to the Request for Qualifications (RFQ) issued by the MWMC on January 7, 2019 and the response to the RFQ submitted by The Freshwater Trust (TFT) on January 28, 2019, the MWMC finds that TFT is the sole, qualified, responsive contractor to provides services as the MWMC Credit Program Manager (CPM) for its Riparian Shade Credit Program project. This Request for Proposal (RFP) is the second step of the RFQ process. The MWMC requires TFT’s response to this RFP to generate a draft contract for the basis of MWMC authorization to execute the contract agreement with TFT at its March 8, 2019 meeting. Therefore, the MWMC requires TFT’s timely response no later than 2:00 pm on Friday, February 15, 2019. TFT’s response shall be emailed as a PDF attachment to mwmcproposals@springfield-or.gov, cc Todd Miller at tmiller@springfield-or.gov. SECTION 1: DESCRIPTION OF RFP A. Pre-Qualification under the RFP TFT meets all necessary qualifications under the RFQ. The MWMC’s issue and need are as stated in the RFQ, and all contractor requirements of the RFQ apply to the resulting contract agreement between the MWMC and TFT. The supporting references and materials for the RFQ remain available on the MWMC’s website for use in response to this RFP. B. Purpose of the RFP TFT’s response to this RFP will define the basis of the resulting contract agreement. The MWMC intends to issue a multiple-phase contract as described in the RFQ and this RFP as follows: • Phase 1 services – based on cost and level of service as proposed, for immediate execution, and may be initiated based on task orders for independent tasks. • Phase 2 services – the cost basis for Phase 2 services will be based on proposed cost estimate(s) under this RFP and as further modified and developed as a result of Phase 1 services. The MWMC anticipates initiating Phase 2 services via contract amendments as negotiated between ATTACHMENT 2 Page 3 of 8 MWMC and TFT; multiple phases may be initiated under individual amendments and/or task orders. Contracting schedule: • Response to RFP received by February 15, 2019 • Drafting of contract during week of February 18-22, 2019. The draft contract will be based on sample contract and insurance requirements presented in RFQ, information provided in RFQ and on response to this RFP, as well as any clarifications/negotiations between MWMC and TFT. • The proposed contract will be presented to the MWMC on March 8, 2019 for authorization. • Execution of contract by signatures of both parties during March 11-13, 2019 • TFT shall expect to be in attendance (either by phone or in person) at the March 14 McKenzie Watershed Conservation Fund workshop and the March 15 Pure Water Partners (PWP) meeting as described herein. SECTION 2: CONTRACTOR DUTIES AND PERFORMANCE EXPECTATIONS As the MWMC CPM, TFT shall meet the highest standards prevalent in the industry or business most closely involved in providing the requested services. The CPM is required to fulfill the duties and meet the performance expectations outlined below, including coordination with Pure Water Partners (PWP), Cascade Pacific Resource Conservation and Development (CPRCD), and McKenzie Watershed Conservation Fund (MWCF) needs. A. Phase 1 Duties and Expectations 1. Project management and coordination a. Attend strategy coordination meetings with MWMC b. Respond to phone calls/emails to coordinate on project development c. Provide monthly invoicing for services 2. Pure Water Partners riparian shade project framework coordination a. Attend up to 12 monthly PWP coordination meetings in Eugene (currently slated for the 3rd Friday of each month) b. Attend up to 3 McKenzie Watershed Conservation Fund workshop meetings in Eugene (currently a March 14 and tentative June/July meeting; possibly final fund implementation meeting) c. Provide input and guidance at meetings on integration of shade credit projects under the umbrella of PWP projects, including preparation of any proposals, work plans, data sets, or other information as helpful. 3. NPDES permit trading credit program coordination a. Prepare and present materials to MWMC as helpful towards development of a NPDES permit-ready water quality trading plan ATTACHMENT 2 Page 4 of 8 b. Attend meetings and/or phone calls with DEQ and MWMC staff to ascertain/negotiate the trading program for the MWMC c. Prepare brief reports or memos on the context and understanding of the MWMC’s trading program under PWP for regulatory compliance 4. Prepare Phase 2 cost proposal. Based on evolved information and developments from Phase 1 work, present the MWMC with a proposal for committing the Phase 2 contract amendment for implementation of shade credits for the MWMC. MWMC currently anticipates the proposal will have four service elements: a. Interim PWP shade program implementation b. Long-term PWP shade program implementation c. Optional additional credit projects implementation d. Management of pilot shade projects B. Phase 2 Duties and Expectations 1. Fulfill long-term role of Credit Program Manager for the MWMC in overseeing production of shade credits per MWMC’s agreements with PWP. Credit production oversight may include: a. Assisting with landowner outreach and property agreements b. Identifying, prioritizing, and/or authorizing shade credit projects c. Ensuring shade credit projects are established according to necessary protocols for regulatory compliance d. Tracking and/or coordination of labor, services, equipment, and supplies necessary to complete the shade credit projects e. Ensuring proper documentation of credits for the MWMC’s regulatory compliance, including ongoing monitoring and maintenance f. Fulfilling and/or managing all service needs for the duration of the shade credits, anticipated to be 20 years from point of accreditation 2. Provide all necessary documentation for PWP/CPRCD records for reimbursement of credit costs through the MWCF. Documentation for disbursement of credit payment funds may be achieved multiple ways, depending on the Phase 2 contract agreement. a. Submit evidence to CPRCD for release of funds per agreement(s) anticipated to be in place among TFT, MWMC, CPRCD, and PWP. b. Present invoicing or other documentation required for release of funds to PWP partner agencies and/or subcontractors for work related the shade credit implementation (or as otherwise arranged for in the final fund/program set up). SECTION 3: PROPOSAL BASIS – PROJECT NEED The MWMC requests TFT to submit a proposal for services and costs of those services based on the duties and performance expectations outlined in this RFP and on the project needs outlined below. ATTACHMENT 2 Page 5 of 8 A. Phase 1: Credit Program Framework Establishment Assist the MWMC with guiding the final development of the governance and administrative structure of the Pure Water Partners’ McKenzie Watershed Conservation Fund as related to water quality trading credit objectives for establishing the roles, responsibilities, decision-making, funding, and other authorities of the parties involved in implementing the Pure Water Partners watershed conservation/restoration/enhancement collaborative. Assistance shall include: • Advise on fund construction and management to optimize reimbursement efficiency and funds tracking for credit project implementation. • Advise on role of CPM in PWP framework and mapping roles of partners toward implementing MWMC credits – e.g. would CPM be purely a credit administrator, have on-the-ground responsibilities, supervise all work, or portion out work that can be done by local partners with CPM conducting specific functions? Functions may include: o Landowner outreach o Site leasing/contracting o Riparian shade restoration o Credit verification o Monitoring, maintenance, and reporting • Recommend protocols for prioritizing, targeting, and/or making go/no-go decisions on shade credit projects • Attend meetings (PWP/fund workshops) Assist the MWMC with developing an approvable water-quality trading plan for compliance certainty negotiated with DEQ for pre-permit implementation of riparian shade credit projects. • Support fact-finding background information for MWMC consideration of trading program and pre-permit implementation. • Assist with trading area definition, protocols, and trading plan for approval by DEQ as consistent with trading rules/permit compliance. • Assist with any pre-permit credit implementation agreement(s) with DEQ, including opportunity for enhanced credit ratios. • Model potential shade credit sites based on time-step scenarios for optimized permit compliance by date, as applicable. ATTACHMENT 2 Page 6 of 8 B. Phase 2: Credit Program Implementation The major details of Phase 2 implementation will be coordinated and worked out under the Phase 1 scope of work. Please provide a working proposal for how TFT foresees the implementation of Phase 2 to meet the objectives listed below, and how reimbursement and costing could be agreed to. New Credit Implementation. Through the implementation framework formalized under Phase 1, implement shade credit projects on behalf of the MWMC through the Pure Water Partners landowner enrollment process. • PWP Pilot Sites: MWMC desires to start credit projects on sites being identified/enrolled into PWP if shade credit opportunity is feasible, prior to finalizing the program and protocols for the 5-year implementation. Propose how CPM would recommend scale/budget for those sites. • 5-year implementation plan: Shade credits shall be implemented under the protocols approved by DEQ as adopted under the MWMC’s pilot riparian shade sponsorship projects, including credit registry, third party verification, shade establishment metrics, and monitoring and reporting schemas. o Propose implementation schema to be used. o Propose cost per credit based on current level of understanding/information. Describe sideboards on the cost estimate and factors that may impact the cost once the administrative framework and protocols are in place, including sensitivity to MWMC’s commitment on number of credits and schedule of roll out. For example, how would the costs or management of the program differ if the MWMC committed to a 205 Mkcal/day credit delivery schedule over 5-years, versus committing on an annual basis – such as replenishing the MWCF up to $200,000/year, pending credit production rate evaluation. o Projects are expected to be implemented using the cooperative efficiency of other Pure Water Partner organizations as well as the staff and/or contractors of the CPM as appropriate. Describe TFT’s “Plan A” based on known information for how the steps towards credit implementation will be performed by CPM and partners/subcontractors. o Address direction on expanding shade credit projects beyond the multi-objective PWP approach to target landowners, as appropriate, for shade-credit-only projects. This may include projects along the Mohawk tributary, which falls outside of EWEB’s drinking water protection interests (but may have overlap with SWCD or other program partner interests). Expansion may also include early opportunities to implement shade credit projects in the Middle Fork Willamette and Coast Fork Willamette watersheds in advance of, or in tandem with, EWEB’s establishment of a second source water intake downstream of those tributary systems. ATTACHMENT 2 Page 7 of 8 o Projects are expected to be implemented over a 5-year permit cycle and include 20- years of monitoring and reporting associated with maintaining credit eligibility. Propose long-term roll of CPM versus PWP local partners in fulfilling credit project maintenance. • Additional credit production – long-term or accelerated options o The MWMC foresees its credit need will exceed the target 205 Mkcal/day in 5 years rollout. It is expected the number of credits and compliance schedule for securing credits will be established in its NPDES permit. This may result in need for more than 205 Mkcal/day credits within the 5-year period, or more than 205 Mkcal/day credits over a longer compliance period, most likely 10 years. Describe how TFT anticipates the demand for additional credits would or would not impact costs and project rollout. Current Credit Maintenance. Fulfill the long term monitoring and reporting associated with the MWMC’s pilot shade credit projects initially planted 2013-2016. This project element is subject to re- negotiation or cancellation of the current MWMC-TFT contract for long-term credit maintenance on projects. • These projects are already implemented under landowner agreements and credit verification protocols. • These projects are currently under long-term contract for monitoring and reporting. The MWMC seeks to consolidate all shade credit program fulfillment under a single contract. • The long-term maintenance of these credit projects is dependent on eventual acceptance by DEQ/EPA of these projects as eligible credits towards the MWMC’s NPDES permit. CPM assistance may be needed to negotiate and ascertain the credit recognition of the pilot projects. ATTACHMENT 2 Page 8 of 8 ATTACHMENT 3 RESOLUTION 19-03, Page 1 of 2 METROPOLITAN WASTEWATER MANAGEMENT COMMISSION RESOLUTION NO. 19-03 ) IN THE MATTER OF AWARD OF CONTRACT ) TO THE FRESHWATER TRUST FOR ) CREDIT PROGRAM MANAGER SERVICES ) RELATED TO THE MWMC RIPARIAN SHADE ) CREDIT PROGRAM, PROJECT P80080 WHEREAS, the fiscal year 2018/2019 (FY18-19) capital improvement program includes Riparian Shade Credit Program Project P80080; WHEREAS, the Metropolitan Wastewater Management Commission (MWMC) intends to approve additional funding for Project P80080 as part of the Supplemental Budget Request #3 for the FY18-19 budget to include consultant fees described herein; WHEREAS, the MWMC authorized Resolution 18-10 on June 8, 2018 to enter into an intergovernmental agreement (IGA) with the Eugene Water & Electric Board (EWEB) for the Pure Water Partners collaborative; WHEREAS, the IGA stipulates the MWMC will appoint a Credit Program Manager to oversee implementation of water quality trading credits for riparian restoration performed via the Pure Water Partners collaborative; WHEREAS, the MWMC has followed the procedures for contract procurement set forth in MWMC’s Procurement Rule 137-048-0220(3); WHEREAS, the MWMC advertised a request for qualifications (RFQ) on January 7, 2019 for Credit Program Manager services; WHEREAS, the MWMC received one response to the RFQ from The Freshwater Trust on January 28, 2019; WHEREAS, an inter-agency evaluation committee evaluated the response to the RFQ and determined that The Freshwater Trust was the sole, qualified, responsive candidate with satisfactory scoring; WHEREAS, the MWMC issued a request for proposal (RFP) on February 4, 2019 to The Freshwater Trust as the qualified candidate for Credit Program Manager services; and WHEREAS, pursuant to the requirements of the RFP, The Freshwater Trust submitted a fee proposal to the MWMC on February 15, 2019 for Phase 1 of Credit Program Manager services and the fee proposal value was $193,063; ATTACHMENT 3 RESOLUTION 19-03, Page 2 of 2 NOW, THEREFORE, BE IT RESOLVED BY THE METROPOLITAN WASTEWATER MANAGEMENT COMMISSION: The duly authorized MWMC executive officer (or authorized designee) is hereby authorized to: (a) designate qualified staff to negotiate and execute a consultant services contract with The Freshwater Trust for an authorized amount not-to-exceed (NTE) value of $193,063; and (b) delegate performance of project manager functions including, but not limited to, issuance of notices to proceed, contract amendments not to exceed a cumulative total of 15% of the initial contract amount, and management of the contract to ensure deliverables and services meet the contract requirements. ADOPTED BY THE METROPOLITAN WASTEWATER MANAGEMENT COMMISSION OF THE SPRINGFIELD/EUGENE METROPOLITAN AREA ON THE 8TH DAY OF MARCH 2019. ________________________________________ President/Vice-President: 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 28, 2019 TO: Metropolitan Wastewater Management Commission FROM: John Huberd, Wastewater Finance Manager Dave Breitenstein, Wastewater Division Director SUBJECT: ACTION REQUESTED: Mobile Waste Hauler Rate Increase Direction Regarding Mobile Waste Hauler Rates ______________________________________________________________________________ ISSUE Mobile waste hauler (MWH) rates are evaluated and adjusted periodically. Based on an updated cost of service evaluation, staff recommends a 4% increase to the MWH rates for FY19-20. A rate increase of 4% is expected to generate $38,000 in additional revenue at current septage volume levels and achieve full cost recovery. BACKGROUND The City of Eugene provides waste treatment to MWHs as provided for in the Intergovernmental Agreement (IGA) between the MWMC and the City for operation and maintenance of the regional wastewater treatment facilities. A special permit under the City’s pretreatment program regulates MWMs. Under the IGA, septage may be treated at the regional facilities as long as there is capacity for such treatment over and above what is needed to serve the directly connected customers of the MWMC. Currently there are ten active permitted MWHs. Two MWH companies, by volume, account for about 75% of all MWH revenue. DISCUSSION The current MWH rate is 12.7 cents per gallon, and is based on a cost of service analysis. The last rate increase was 5% in FY11-12. A revised cost of service based rate model was developed last year and discussed with the Commission. The model was improved for the FY19-20 rates evaluation, and provides a costing methodology based on the relative volume and strength of septage waste to Memo: Mobile Waste Hauler Rate Increase February 28, 2019 Page 2 of 2 residential waste. The model takes into account standard operations and maintenance costs, additional wear and tear on equipment, administration, and capital costs. The results of the rate model for projecting the cost of septage treatment for FY19-20 indicate the current septage rate of $0.127/gallon will be insufficient to achieve full cost recovery in the coming fiscal year. The model’s projection for FY19-20 indicates the cost of service will likely range between $0.130 and $0.132 per gallon. Fiscal Year Cost of Service FY18-19 $0.124 / gallon1 FY18-19 $0.130/gallon2 FY19-20 $0.130 / gallon3 FY19-20 $0.132 / gallon4 1Projected cost based on previous cost model 2Projected cost based on updated cost model to capture capital depreciation expense 3Projected cost at current septage volume 4Projected cost if septage volume increases by 25% ACTION REQUESTED Staff welcomes input from the Commission regarding the rate increase of 4%, for a septage rate of $0.132/gallon. Staff will incorporate feedback from the Commission into a public hearing during the upcoming April 2019 meeting. M E M O R A N D U M DATE: February 28, 2019 TO: Metropolitan Wastewater Management Commission (MWMC) FROM: Katherine Bishop, ESD Program Manager SUBJECT: Preliminary FY 2019-20 Regional Wastewater Program Budget ACTION REQUESTED: Provide comments and direction to staff for finalization of the Regional Wastewater Program Budget for FY 2019-20 __________________________________________________________________________ ISSUE The Preliminary Regional Wastewater Program (RWP) Budget and Capital Improvements Program for fiscal year 2019-20 (FY19-20) is attached for your review. During the Commission meeting on March 8, 2019, staff will present the proposed operating budget as well as scenarios for FY19-20 user rates for consideration. The Commission is requested to provide input and direction on the Preliminary RWP Budget and Capital Improvements Program Budget for finalization of the budget document in preparation for a public hearing on April 12, 2019. BACKGROUND AND DISCUSSION On January 11, 2019, the Commission reviewed the proposed Key Outcomes and Performance Indicators as part of the Budget Kick-Off. On February 8, 2019, the Commission reviewed the proposed Capital Budget and 5-Year Capital Plan. Proposed Capital Programs Budget - The proposed FY19-20 capital programs budget is $18,500,000. About 57% ($10.6M) of the capital budget amount is programmed for contract awards in the current FY18-19 that will continue into FY19-20 spanning multiple years. Projects include: Operations & Maintenance Building Improvements, Renewable Natural Gas Upgrade, Decommissioning WPCF Lagoon, Resiliency Planning, and Class A Disinfection Facilities. The 5-year capital program budget plan total is $56,690,000 as displayed on page 44 of the budget (Attachment 1) in Exhibit 13. Proposed Operating Program Budget - The total proposed FY19-20 operating program budget is $18,667,909 reflecting an increase of 3% ($548,491) when compared to the FY18-19 adopted budget. Exhibit 3, on page 14 of the preliminary budget document, displays the RWP operating budget summary by program area. Memo: Preliminary FY 2019-20 Regional Wastewater Program Budget February 28, 2019 Page 2 of 2 Operations and Maintenance - The proposed operations and maintenance budget for Eugene is $14,484,457, reflecting an overall increase of 2.4% ($334,706) when compared to the adopted FY18-19 budget. The personnel services component of the budget reflects a budget increase of 5.8% ($531,384) in regular wages and employee related benefits. Full-time equivalent (FTE) staffing remains level at 78.36 FTE. The materials and services budget reflects a total net budget decrease of 1.1% ($52,972), and the capital outlay budget reflects a one-time decrease of $143,706. Exhibit 11, on page 36 of the budget document displays the Eugene operations and maintenance line item budget summary. Administration - The proposed administration budget for Springfield is $4,183,452, reflecting an overall net increase of 5.4% ($213,786) when compared to the adopted FY18-19 budget. The Administration FTE staffing increased by 1.0 to 16.56 FTE for additional staff in Public Information and Education. The personnel services budget reflects a budget increase of 10.6% ($200,916) in regular wages and employee related benefits. The materials and services budget reflect a net budget increase of 0.6% ($12,870). Exhibit 9, on page 30 of the budget document displays the Springfield administration line item budget summary. Proposed User Fee Rate Change - The Preliminary RWP Budget for FY19-20 is based on a 2.0% user fee rate change effective July 1, 2019. The proposed 2.0% rate change is less than previously forecasted at 3.5%. The proposed rate change takes into consideration customer activity, reserve funding levels, changes in operations and maintenance, administration and the proposed capital program plan budgets included in the preliminary budget document. Fiscal Impact to the Typical Residential Monthly Bill - The proposed 2.0% rate change to the regional wastewater component would result in a $0.53 monthly increase from $26.49 to $27.02 for a typical residential customer based on 5,000 gallons of wastewater treated. With the proposed 2.0% rate change, sufficient revenues will be generated to fund daily operations, planned capital projects and debt service obligations, while maintaining a positive financial position and capital reserves with a focus on pay-as-you-go funding for capital improvements. Rate scenarios will be presented at the March 8 meeting for Commission consideration and direction. ACTION REQUESTED The Commission is requested to provide comments and direction for finalization of the Regional Wastewater Program Budget and Capital Improvements Program FY19-20. ATTACHMENT 1. Preliminary FY19-20 Regional Wastewater Program Budget Preliminary Regional Wastewater Program Budget and Capital Improvements Program Fiscal Year 2019-2020 Metropolitan Wastewater M ANAGEMENT COMMISSION partners in wastewater management Cover photo: aerial of the Water Pollution Control Facility on River Avenue. Preliminary REGIONAL WASTEWATER PROGRAM BUDGET and CAPITAL IMPROVEMENTS PROGRAM Fiscal Year 2019-20 The Metropolitan Wastewater Management Commission is scheduled to adopt its Operating Budget and Capital Improvements Program (CIP) for FY 19-20 on April 12, 2019. The Budget and CIP are currently scheduled for consideration and ratification by the Springfield City Council on May 6, 2019, the Eugene City Council on May 13, 2019, and the Lane County Board of Commissioners on May 21, 2019. The Commission is scheduled for final consideration and ratification of the Budget and CIP on June 14, 2019. COMMISSION MEMBERS: Peter Ruffier, President (Eugene) Doug Keeler, Vice President (Springfield) Pat Farr (Lane County) Bill Inge (Lane County) Walt Meyer (Eugene) Joe Pishioneri (Springfield) Jennifer Yeh (Eugene) STAFF: Tom Boyatt, Interim MWMC Executive Officer/Springfield Development & Public Works Director Matthew Stouder, MWMC General Manager/Springfield Environmental Services Manager Dave Breitenstein, Interim Eugene Wastewater Division Director Nathan Bell, MWMC Finance Officer/Springfield Finance Director www.mwmcpartners.org TABLE OF CONTENTS Metropolitan Wastewater Management Commission Overview METROPOLITAN WASTEWATER MANAGEMENT COMMISSION FY 19-20 BUDGET AND CAPITAL IMPROVEMENTS PROGRAM for the REGIONAL WASTEWATER PROGRAM TABLE OF CONTENTS PROGRAM OVERVIEW Budget Message.. ..................................................................................................................... 1 Acronyms and Explanations ..................................................................................................... 3 Regional Wastewater Program Overview ................................................................................ 5 Exhibit 1: Interagency Coordination Structure ............................................................... 11 BUDGET SUMMARY Regional Wastewater Program Budget and Program Summary ............................................ 12 Exhibit 2: Regional Operating Budget Summary ........................................................... 12 Exhibit 3: Line Item Summary by Program Area ........................................................... 14 Exhibit 4: Budget Summary and Comparison ................................................................. 15 RESERVE FUNDS Regional Wastewater Program Reserve Funds ...................................................................... 19 Exhibit 5: Operating Reserves Line Item Budget ........................................................... 20 OPERATING PROGRAMS Regional Wastewater Program Staffing ................................................................................. 23 Exhibit 6: Regional Wastewater Program Organizational Chart .................................... 23 Exhibit 7: Regional Wastewater Program Position Summary ........................................ 24 Springfield Program and Budget Detail ................................................................................. 26 Exhibit 8: Springfield Administration Program Budget Summary ................................. 29 Exhibit 9: Springfield Administration Line Item Summary ............................................ 30 Eugene Program and Budget Detail ....................................................................................... 31 Exhibit 10: Eugene Operations & Maintenance Program Budget Summary ................... 35 Exhibit 11: Eugene Operations & Maintenance Line Item Summary ............................. 36 CAPITAL PROGRAM Regional Wastewater Capital Improvements Program .......................................................... 37 Exhibit 12: Capital Program Budget Summary ................................................................ 40 Exhibit 13: Capital Program 5-Year Plan ........................................................................ 44 CAPITAL PROJECT DETAIL Capital Program Project Detail Sheets ................................................................................... 45 PROGRAM OVERVIEW Metropolitan Wastewater Management Commission Budget Message Page 1 FY 19-20 BUDGET AND CIP BUDGET MESSAGE Members of the Metropolitan Wastewater Management Commission (MWMC) MWMCs’ Customers and Partnering Agencies We are pleased to present the Metropolitan Wastewater Management Commission’s budget for fiscal year 2019-20. This budget funds operations, administration, and capital projects planned for the Regional Wastewater Program. MWMC Background The Metropolitan Wastewater Management Commission (MWMC) was formed by Eugene, Springfield, and Lane County through an intergovernmental agreement (IGA) in 1977 to provide wastewater collection and treatment services for the Eugene-Sprinfield metropolitan area. The seven-member Commission, appointed by the City Councils of Eugene and Springfield and the Lane County Board of Commissioners, is responsible for oversight of the Regional Wastewater Program. Since 1983, the Commission has contracted with the cities of Springfield and Eugene to provide all staffing and services necessary to maintain and support the Regional Wastewater Program. The MWMC has been quietly providing high-quality wastewater services to the metropolitan area for 42 years. The service area for the MWMC consists of approximately 250,000 residents, including 79,100 residential and commercial accounts. The MWMC is committed to clean water, the community’s health, the local environment, and to providing high quality services in a manner that will achieve, sustain, and promote balance between community, environmental, and economic needs. Budget Development Process The MWMC’s budget development schedule begins in January, with a budget kick-off to review key outcomes the Commission strives to achieve, along with performance indicators identified to measure results of annual workplans over time. February includes a presentation of the draft Capital Improvement Program (CIP) budget and five-year capital plan, and in March the operating budget programs and user fee rate scenarios are presented for discussion and direction. In April, the Commission holds public hearings on the Preliminary Regional Wastewater Program (RWP) Budget and CIP, and regional wastewater user rates. In May, the RWP budget is provided to the three governing bodies of Springfield, Eugene and Lane County for their review, input and ratification. The RWP Budget and CIP returns to the MWMC in June for final approval, with budget implementation occuring July 1. Fiscal Year 2019-20 Budget The Administration and Capital Improvements Program (CIP) components of the MWMC’s budget are reflected in the City of Springfield’s RWP budget. Operations, maintenance, equipment replacement, major rehabilitation, and major capital outlay components are reflected in the City of Eugene’s RWP budget. Both cities’ Industrial Pretreatment Programs are managed Metropolitan Wastewater Management Commission Budget Message Page 2 FY 19-20 BUDGET AND CIP locally in compliance with the MWMC Model Ordinance, and are also included in the RWP budget. Capital Budget - The capital program reflects a continued focus on design and construction of capital improvements planned to ensure that operation of the Regional Wastewater Facilities meets environmental regulations, and that adequate capacity will be provided to meet the needs of a growing service area. The Capital Budget for FY 19-20 is $18.5 million, and the five-year Capital Plan is currently projected at $56.7 million. Operating Budget - The FY 19-20 RWP Operating Budget for personnel services, materials and services and capital outlay expenses is $18.66 million, reflecting a 3% increase when compared to the prior year adopted budget (or a 2% increase when compared to the prior year amended budget). The FY 19-20 budget includes Debt Service payments that total $4.95 million as scheduled repayment of the $32.7 million for revenue bonds issued in May 2016, and $11.3 million in Clean Water SRF loans to fund the Facilities Plan capital improvements. Revenues - The RWP is 100% funded by user fees, from customers and industries receiving regional wastewater services. FY 19-20 user fee revenues (including septage service) are projected at $34.7 million. This level of revenue is based on a recommended 2% increase on regional monthly wastewater user fees and a 4% increase on septage and hauled waste to meet revenue objectives for planned capital improvements. Balanced Budget - The RWP achieves and maintains a structurally balanced budget with resources equal or greater than expenditures to set aside a portion of fund balance in reserves. In summary, the FY 19-20 budget implements the Commission’s adopted Financial Plan policies, funding operations and administration sufficiently to maintain service levels and to meet the environmental performance necessary for compliance with the National Pollutant Discharge Elimination System (NPDES) permit issued jointly to the MWMC and the two cities. Regulatory Permit Status Since 2006, the MWMC’s NPDES permit has been administratively extended by the Department of Environmental Quality (DEQ) pending ongoing litigation and future regulatory standards that are anticipated to include more stringent requirements. During this period of regulatory uncertainty the MWMC continues to reduce debt obligations, while planning financially to be positioned for future permit renewal. Respectfully submitted, Matt Stouder MWMC General Manager Metropolitan Wastewater Management Commission Acronyms and Explanations Page 3 FY 19-20 BUDGET AND CIP ACRONYMS AND EXPLANATIONS AMCP – Asset Management Capital Program. 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. ARRA – American Reinvestment and Recovery Act. This funding was part of the federal government’s economic stimulus program and issued loans under favorable conditions to stimulate infrastructure and capital project investment. BMF – Biosolids Management Facility. The Biosolids Management Facility is an important part of processing wastewater where biosolids generated from the treatment of wastewater are turned into nutrient rich, beneficial organic materials. CIP – Capital Improvements Program. This program implements projects outlined in the 2004 Facilities Plan and includes projects that improve performance, or expand treatment or hydraulic capacity of existing facilities. CMOM – Capacity Management and Maintenance Program. The CMOM program addresses wet weather issues such as inflow and infiltration with the goal to eliminate sanitary sewer overflows to the extent possible and safeguard the hydraulic capacity of the regional wastewater treatment facility. CWSRF – Clean Water State Revolving Fund. The Clean Water State Revolving Fund loan program is a federal program administered by the Oregon DEQ that provides low-cost loans for the planning, design and construction of various water pollution control activities. (DEQ) EMS – Environmental Management System. An EMS is a framework to determine the environmental impacts of an organization’s business practices and develop strategies to address those impacts. ESD – Environmental Services Division. The ESD is a division of the City of Springfield’s Development and Public Works Department that promotes and protects the community’s health, safety, and welfare by providing professional leadership in the protection of the local environment, responsive customer service, and effective administration for the Regional Wastewater Program. IGA – Intergovernmental Agreement. Pursuant to ORS 190.010, ORS 190.080, and ORS 190.085, the IGA is an agreement between the cities of Eugene and Springfield and Lane County that created the MWMC as an entity with the authority to provide resources and support as defined in the IGA for the Regional Wastewater Program. Metropolitan Wastewater Management Commission Acronyms and Explanations Page 4 FY 19-20 BUDGET AND CIP MWMC – Metropolitan Wastewater Management Commission. The MWMC is the Commission responsible for the oversight of the Regional Wastewater Program. In this role, the MWMC protects the health and safety of our local environment by providing high-quality management of wastewater conveyance and treatment to the Eugene-Springfield community. The Commission is responsible for the oversight of the Regional Wastewater Program. NPDES – National Pollutant Discharge Elimination System permit. The NPDES permit program is administered by the Oregon Department of Environmental Quality (DEQ) in fulfillment of federal Clean Water Act requirements. The NPDES permit includes planning and technology requirements as well as numeric limits on effluent water quality. RWP – Regional Wastewater Program. Under the oversight of the MWMC, the purpose of the RWP is to protect public health and safety and the environment by providing high quality wastewater management services to the Eugene-Springfield metropolitan area. The MWMC and the regional partners are committed to providing these services in a manner that will achieve, sustain, and promote balance between community, environmental, and economic needs while meeting customer service expectations. SDC – System Development Charge. SDCs are charges imposed on development so that government may recover the capital needed to provide sufficient capacity in infrastructure systems to accommodate the development. SRF – Clean Water State Revolving Fund. The Clean Water State Revolving Fund loan program is a federal program administered by the Oregon DEQ that provides low-cost loans for the planning, design and construction of various water pollution control activities. (DEQ) SSO – Sanitary Sewer Overflows. Discharges of raw sewage. TMDL – Total Maximum Daily Load. The federal Clean Water Act defines Total Maximum Daily Load as the maximum amount of any pollutant that can be safely assimilated by a waterway in one day without significant degradation of water quality. TSS – Total Suspended Solids. Organic and inorganic materials that are suspended in water. WPCF – Regional Water Pollution Control Facility. The WPCF is a state-of-the-art facility providing treatment of the wastewater coming from the Eugene/Springfield metropolitan area. The WPCF is located on River Avenue in Eugene. The treatment plant and 49 pump stations distributed across Eugene and Springfield operate 24 hours a day, 7 days a week, 365 days a year to collect and treat wastewater from homes, businesses and industries before returning the cleaned water, or effluent, to the Willamette River. Through advanced technology and processes, the facility cleans, on average, up to 30 million gallons of wastewater every day. WWFMP – Wet Weather Flow Management Plan. This plan evaluated and determined the most cost-effective combination of collection system and treatment facility upgrades needed to manage excessive wet weather wastewater flows in the Eugene/Springfield metropolitan area. Metropolitan Wastewater Management Commission Overview Page 5 FY 19-20 BUDGET AND CIP REGIONAL WASTEWATER PROGRAM OVERVIEW The Metropolitan Wastewater Management Commission The Metropolitan Wastewater Management Commission (MWMC) was formed by Eugene, Springfield, and Lane County through an intergovernmental agreement (IGA) in 1977 to provide wastewater collection and treatment services for the Eugene-Springfield metropolitan area. The seven-member Commission is composed of members appointed by the City Councils of Eugene (3 representatives), Springfield (2 representatives) and the Lane County Board of Commissioners (2 representatives). Since its inception, the Commission, in accordance with the IGA, has been responsible for oversight of the Regional Wastewater Program (RWP) including: construction, maintenance, and operation of the regional sewerage facilities; adoption of financing plans; adoption of budgets, user fees and connection fees; adoption of minimum standards for industrial pretreatment and local sewage collection systems; and recommendations for the expansion of regional facilities to meet future community growth. Staffing and services have been provided in various ways over the 42 years of MWMC’s existence. Since 1983, the Commission has contracted with the Cities of Springfield and Eugene for all staffing and services necessary to maintain and support the RWP. Lane County’s partnership has involved participation on the Commission and support to the Lane County Metropolitan Wastewater Service District (CSD), which managed the proceeds and repayment of general obligation bonds issued to construct RWP facilities. Regional Wastewater Program Purpose and Key Outcomes The purpose of the RWP is to protect public health and safety and the environment by providing high quality wastewater management services to the Eugene-Springfield metropolitan area. The MWMC and the regional partners are committed to providing these services in a manner that will achieve, sustain, and promote balance between community, environmental, and economic needs while meeting customer service expectations. Since the mid-1990s, the Commission and RWP staff have worked together to identify key outcome areas within which to focus annual work plan and budget priorities. The FY 19-20 RWP work plans and budget reflect a focus on the following key outcomes or goals. In carrying out the daily activities of managing the regional wastewater system, we will strive to achieve and maintain: 1. High environmental standards; 2. Fiscal management that is effective and efficient; 3. A successful intergovernmental partnership; 4. Maximum reliability and useful life of regional assets and infrastructure; 5. Public awareness and understanding of MWMC, the regional wastewater system, and MWMC’s objectives of maintaining water quality and a sustainable environment. The Commission believes that these outcomes, if achieved in the long term, will demonstrate success of the RWP in carrying out its purpose. In order to help determine whether we are successful, indicators of performance and targets have been identified for each key outcome. Tracking performance relative to identified targets over time assists in managing the RWP to achieve desired results. The following indicators and performance targets provide an important framework for the development of the FY 19-20 RWP Operating Budget, Capital Improvements Program and associated work plans. Metropolitan Wastewater Management Commission Overview Page 6 FY 19-20 BUDGET AND CIP Outcome 1: Achieve and maintain high environmental standards. Indicators: Performance: FY 17-18 Actual FY 18-19 Estimated Actual FY 19-20 Target Volume of wastewater treated to water quality standards 100%; 11.2 billion gallons 100%; 10.5 billion gallons 100%; 11 billion gallons Average removal efficiency of carbonaceous biochemical oxygen demand (CBOD) and total suspended solids (TSS) (permit limit 85%) 97% 98% 95% High quality biosolids (pollutant concentrations less than 50% of EPA exceptional quality criteria) Arsenic 29% Cadmium 15% Copper 33% Lead 12% Mercury 6% Nickel 7% Selenium 18% Zinc 33% Arsenic 0% Cadmium 0% Copper 35% Lead 11% Mercury 7% Nickel 5% Selenium 0% Zinc 35% Arsenic <50% Cadmium <50% Copper <50% Lead <50% Mercury <50% Nickel <50% Selenium <50% Zinc <50% ISO14001 Environmental Management System Certification (no major nonconformance) All objectives met All objectives met Meet all objectives Outcome 2: Achieve and maintain fiscal management that is effective and efficient. Indicators: Performance: FY 17-18 Actual FY 18-19 Estimated Actual FY 19-20 Target Annual budget and rates align with the MWMC Financial Plan Policies met Policies met Policies met Annual audited financial statements Clean audit Clean audit Clean audit Uninsured bond rating AA AA A+ Reserves funded at target levels Yes Yes Yes Financial Plan policy updates Partial plan update Adopted and implemented --- System Development Charges update Adopted and implemented --- --- Metropolitan Wastewater Management Commission Overview Page 7 FY 19-20 BUDGET AND CIP Outcome 3: Achieve and maintain a successful intergovernmental partnership. Indicators: Performance: FY 17-18 Actual FY 18-19 Estimated Actual FY 19-20 Target Industrial Pretreatment Programs are consistent with the MWMC pretreatment model ordinance Consistent across service area Consistent across service area Consistent across service area MWMC capital projects consistent with CIP budget and schedule 100% of initiated projects within budget and 100% (6 of 6 projects) on schedule 100% of initiated projects within budget and 100% (11 of 11 projects) on schedule 100% of initiated projects within budget and 75% on schedule Interagency coordination regarding Capacity Management Operations and Maintenance (CMOM) Program Implemented Regional CMOM Program annual reporting Quarterly meetings between Eugene and Springfield; Annual update to the Commission Quarterly meetings between Eugene and Springfield; Annual update to the Commission Community presentations regarding MWMC partnership, services and outcomes delivered jointly --- 4 community presentations delivered by Eugene and Springfield staff to community groups within the service area 4 community presentations delivered by Eugene and Springfield staff to community groups within the service area MWMC IGA Modification to allow acceptance of hauled waste from outside the service area Amendment of the IGA approved by the governing bodies --- --- Outcome 4: Maximize reliability and useful life of regional assets and infrastructure. Indicators: Performance: FY 17-18 Actual FY 18-19 Estimated Actual FY 19-20 Target Preventive maintenance completed on time (best practices benchmark is 90%) 94% 95% 90% Preventive maintenance to corrective maintenance ratio (benchmark 4:1-6:1) 5.5:1 5:1 5:1 Emergency maintenance required (best practices benchmark is less than 2% of labor hours) 0.6% 1% <2% Asset management (AM) processes and practices review and development Asset management work plan development completed Asset management plan completed Annual update to the asset management plan Metropolitan Wastewater Management Commission Overview Page 8 FY 19-20 BUDGET AND CIP Outcome 5: Achieve and maintain public awareness and understanding of MWMC, the regional wastewater system, and MWMC’s objectives of maintaining water quality and a sustainable environment. Indicators: Performance: FY 17-18 Actual FY 18-19 Estimated Actual FY 19-20 Target Communications Plan Update of plan completed Continue implementation and refresh as needed Update in Spring 2020 based on survey results Promote MWMC social media channels Created new Facebook and Twitter accounts Created new Instagram account Implement strategies to grow Facebook followers to 300, Twitter followers to 250 and Instagram to 125 Create and distribute MWMC e-newsletters Completed design update and increased distribution by 24% Distribute monthly and increase distribution by 10% Distribute monthly and increase distribution to 250 subscribers Pollution prevention campaigns 2 campaigns and 4 sponsorships; combined reaching 20% of residents in service area 2 campaigns and 4 sponsorships, combined reaching over 20% of residents in service area 2 campaigns and 4 sponsorships; combined reaching 40% of residents in service area Provide tours of the MWMC Facilities Provided tours for more than 600 people Provide tours for greater than 750 people Provide tours for greater than 1,000 people Community survey (approx. every 4 years) Annual review of data --- Surveying in Fall 2019 MWMC website Unable to determine, due to lack of data --- --- Metropolitan Wastewater Management Commission Overview Page 9 FY 19-20 BUDGET AND CIP Roles and Responsibilities In order to effectively oversee and manage the RWP, the partner agencies provide all staffing and services to the MWMC. The following sections describe the roles and responsibilities of each of the partner agencies, and how intergovernmental coordination occurs on behalf of the Commission. City of Eugene The City of Eugene supports the RWP through representation on the MWMC, provision of operation and maintenance services, and active participation on interagency project teams and committees. Three of the seven MWMC members represent Eugene – two citizens and one City Councilor. Pursuant to the Intergovernmental Agreement (IGA), the Eugene Wastewater Division operates and maintains the Regional Water Pollution Control Facility (WPCF), the Biosolids Management Facility (BMF) and associated residuals and reclaimed water activities, along with regional wastewater pumping stations and transmission sewers. In support of the RWP, the Division also provides technical services for wastewater treatment; management of equipment replacement and infrastructure rehabilitation; biosolids treatment and recycling; industrial source control (in conjunction with Springfield staff); and regional laboratory services for wastewater and water quality analyses. These services are provided under contract with the MWMC through the regional funding of 78.36 full-time equivalent (FTE) employees. City of Springfield The City of Springfield supports the RWP through representation on the MWMC, provision of MWMC administration services, and active coordination of and participation on interagency project teams and committees. Two MWMC members represent Springfield – one citizen and one City Councilor. Pursuant to the IGA, the Springfield Development and Public Works Director, and the Environmental Services Manager serve as the MWMC Executive Officer and General Manager, respectively. The Environmental Services Division and Finance Department staff provide ongoing staff support to the Commission and administration of the RWP in the following areas: legal and risk management services; financial management and accounting; coordination and management of public policy; regulatory and permit compliance issues; coordination between the Commission and the governing bodies; long-range capital project planning, design, and construction management; coordination of public information, education, and citizen involvement programs; and coordination and development of regional budgets, rate proposals, and revenue projections. Springfield staff also provides local implementation of the Industrial Pretreatment Program, as well as billing coordination and customer service. These services are provided under contract with the MWMC through the regional funding of 15.68 FTE of Development and Public Works Department staff and 0.88 FTE of Finance Department staff, for a total 16.56 FTE as reflected in the FY 19-20 Budget. Lane County Lane County supports the RWP through representation on the MWMC, including two MWMC members that represent Lane County – one citizen and one County Commissioner. Lane County’s partnership initailly included providing support to manage the proceeds and repayment of the RWP general obligation bonds to finance the local share of the RWP facilities construction. These bonds were paid in full in 2002. The County, while not presently providing sewerage, has the authority under its charter to do so. The Urban Growth Boundary includes the two Cities (urban lands) and certain unincorporated areas surrounding the Cities which lies Metropolitan Wastewater Management Commission Overview Page 10 FY 19-20 BUDGET AND CIP entirely within the County. Federal funding policy requires sewage treatment and disposal within the Urban Growth Boundary to be provided on a unified, metropolitan basis. Interagency Coordination The effectiveness of the MWMC and the RWP depends on extensive coordination, especially between Springfield and Eugene staff, who provide ongoing program support. This coordination occurs in several ways. The Springfield ESD/MWMC General Manager and the Eugene Wastewater Division Director coordinate regularly to ensure adequate communication and consistent implementation of policies and practices as appropriate. The Eugene and Springfield Industrial Pretreatment Program supervisors and staff meet regularly to ensure consistent implementation of the Model Industrial Pretreatment Ordinance. Additionally, interagency project teams provide input on and coordination of ongoing MWMC administration issues and ad hoc project needs. Exhibit 1 on the following page reflects the interagency coordination structure supporting the RWP. Special project teams are typically formed to manage large projects such as design and construction of new facilities. These interagency staff teams are formulated to provide appropriate expertise, operational knowledge, project management, and intergovernmental representation. Relationship to Eugene and Springfield Local Sewer Programs The RWP addresses only part of the overall wastewater collection and treatment facilities that serve the Eugene-Springfield metropolitan area. The Cities of Eugene and Springfield both maintain sewer programs that provide for construction and maintenance of local collection systems and pump stations, which discharge to the regional system. Sewer user fees collected by the two Cities include both local and RWP rate components. Metropolitan Wastewater Management Commission Overview Page 11 FY 19-20 BUDGET AND CIP EXHIBIT 1 BUDGET SUMMARY Metropolitan Wastewater Management Commission Budget and Program Summary Page 12 FY 19-20 BUDGET AND CIP REGIONAL WASTEWATER PROGRAM FY 19-20 BUDGET The MWMC’s RWP Operating Budget provides the Commission and governing bodies with an integrated view of the RWP elements. Exhibit 2 provides a summary of the overall Operating Budget. Separate Springfield and Eugene agency budgets and staffing also are presented within this budget document. Major program areas supported by Springfield and Eugene are described in the pages that follow and are summarized in Exhibit 3 on page 14. Finally, Exhibit 4 on page 15 combines revenues, expenditures, and reserves to illustrate how funding for all aspects of the RWP is provided. It should also be noted that the “Amended Budget FY 18-19” column in all budget tables represents the updated FY 18-19 RWP budget as of February 19, 2019, which reconciled actual beginning balances at July 1, 2018, and approved budget transfers and supplemental requests. Notes: 1. The Change column and Percent Change column compare the adopted FY 19-20 Budget with the originally Adopted FY 18-19 Budget column. 2. Personnel Services, Materials and Services, and Capital Outlay budget amounts represent combined Springfield and Eugene Operating Budgets that support the RWP. 3. Capital Outlay does not include CIP, Equipment Replacement, Major Capital Outlay, or Major Rehabilitation, which are capital programs. 4. The Equipment Replacement Contribution is a budgeted transfer of operating revenues to “sinking funds” (reserves) for scheduled future replacement of major equipment, vehicles, and computers. See table on page 21 for year-end balance. ADOPTED BUDGET AMENDED BUDGET PROPOSED BUDGET FY18-19 FY18-19 FY19-20 Full-Time Equivalent Staffing Level 93.92 93.92 94.92 1.00 1.1% Personnel Services (2)$11,103,999 $11,103,999 $11,836,299 $732,300 6.6% Materials & Services (2)6,851,712 7,036,163 6,811,610 (40,102) -0.6% Capital Outlay (2, 3)163,706 163,000 20,000 (143,706) -87.8% Equip Replacement Contributions (4)1,000,000 1,000,000 1,500,000 500,000 50.0% Capital Contributions (5)14,000,000 14,000,000 14,700,000 700,000 5.0% Debt Service Contributions (6)5,452,810 5,452,810 4,947,783 (505,027) -9.3% Working Capital Reserve (7)900,000 900,000 900,000 - 0% Rate Stability Reserve (9)2,000,000 2,000,000 2,000,000 - 0% Insurance Reserve (9)515,000 1,500,000 1,500,000 985,000 191% Operating Reserve (10)3,916,913 4,764,824 3,951,064 34,151 0.9% Rate Stabilization Reserve (11)2,000,000 2,000,000 2,000,000 - 0% SRF Loan Reserve (12)670,908 435,603 435,603 (235,305) -35% Budget Summary $48,575,048 $50,356,399 $50,602,358 $2,027,311 4.2% EXHIBIT 2 REGIONAL OPERATING BUDGET SUMMARY: INCLUDING RESERVE CONTRIBUTIONS CHANGE (1) INCR/(DECR) Metropolitan Wastewater Management Commission Budget and Program Summary Page 13 FY 19-20 BUDGET AND CIP 5. The Capital Reserve Contribution is a budgeted transfer of operating revenues to “sinking funds” (reserves). Capital is passed through the Springfield Administration Budget. See table on page 22 for year-end balance. 6. The Debt Service line item is the sum of annual interest and principal payments on the Revenue Bonds and Clean Water State Revolving Fund (SRF) loans made from the Operating Budget (derived from user rates). The total amount of Debt Service budgeted in FY 19-20 is $5,383,386 a portion of which is funded by SDCs. 7. The Working Capital Reserve acts as a revolving account which is drawn down and replenished on a monthly basis to fund Eugene’s and Springfield’s cash flow needs. 8. The Rate Stability Reserve is used to set aside revenues available at year-end after the budgeted Operating Reserve target is met. Internal policy has established a level of $2 million for the Rate Stability Reserve. See Exhibit 5 on page 20 for year-end balance. 9. The Insurance Reserve was established to set aside funds equivalent to the insurance deductible amount for property and liability insurance coverage, for losses per occurrence. 10. The Operating Reserve is used to account for the accumulated operating revenues net of operations expenditures. The Commission’s adopted policy provides minimum guidelines to establish the Operating Reserve balance at approximately 10% of the adopted Operating Budget. The Operating Reserve provides for contingency funds in the event that unanticipated expenses or revenue shortfalls occur during the budget year. 11. The Rate Stabilization Reserve contains funds to be used at any point in the future when net revenues are insufficient to meet the bond covenant coverage requirements. The Commission shall maintain the Rate Stabilization Reserve account as long as bonds are outstanding. This reserve is set at $2 million. 12. The Clean Water SRF loan reserve is budgeted as required per loan agreements. Metropolitan Wastewater Management Commission Budget and Program Summary Page 14 FY 19-20 BUDGET AND CIP SPRINGFIELD ACTUALS ADOPTED BUDGET AMENDED BUDGET PROPOSED BUDGET CHANGE MWMC ADMINISTRATION FY 17-18 FY 18-19 FY 18-19 FY 19-20 INCR/(DECR) Personnel Services $1,357,908 $1,431,501 $1,431,501 $1,607,536 $176,035 12.3% Materials & Services 1,555,986 1,907,578 2,045,328 1,927,948 20,370 1.1% Capital Outlay - - - - - -- TOTAL $2,913,894 $3,339,079 $3,476,829 $3,535,484 $196,405 6% INDUSTRIAL PRETREATMENT Personnel Services $332,582 $351,786 $351,786 $369,059 $17,273 4.9% Materials & Services 109,361 122,869 122,869 115,825 (7,044) -5.7% Capital Outlay - - - - - -- TOTAL $441,943 $474,655 $474,655 $484,884 $10,229 2.2% ACCOUNTINGPersonnel Services $109,583 $116,034 $116,034 $123,642 $7,608 6.6% Materials & Services 25,413 39,898 39,898 39,442 (456) -1.1% Capital Outlay - - - - - -- TOTAL $134,996 $155,932 $155,932 $163,084 $7,152 4.6% TOTAL SPRINGFIELD Personnel Services $1,800,073 $1,899,321 $1,899,321 $2,100,237 $200,916 10.6% Materials & Services 1,690,760 2,070,345 2,208,095 2,083,215 12,870 0.6% Capital Outlay - - - - - -- TOTAL $3,490,833 $3,969,666 $4,107,416 $4,183,452 $213,786 5.4% EUGENE ADMINISTRATIVE SERVICES Personnel Services $1,694,741 $1,761,718 $1,761,718 $1,863,293 $101,575 5.8% Materials & Services 516,776 683,318 682,712 421,273 (262,045) -38.3% Capital Outlay - - - - - -- TOTAL $2,211,517 $2,445,036 $2,444,430 $2,284,566 ($160,470) -6.6% BIOSOLIDS MANAGEMENT Personnel Services $1,247,142 $1,381,950 $1,381,950 $1,427,133 $45,183 3.3% Materials & Services 807,387 909,816 909,247 983,055 73,239 8.0% Capital Outlay 109,297 - - - - -- TOTAL $2,163,826 $2,291,766 $2,291,197 $2,410,188 $118,422 5.2% INDUSTRIAL SOURCE CONTROL Personnel Services $525,757 $624,405 $624,405 $590,474 ($33,931) -5.4% Materials & Services 97,829 120,132 119,948 118,262 (1,870) -1.6% Capital Outlay - - - - - -- TOTAL $623,586 $744,537 $744,353 $708,736 ($35,801) -4.8% TREATMENT PLANT Personnel Services $4,952,030 $4,994,444 $4,994,444 $5,329,404 $334,960 6.7% Materials & Services 2,810,250 2,736,780 2,785,031 2,806,126 69,346 2.5% Capital Outlay 31,852 163,706 163,706 20,000 (143,706) -87.8% TOTAL $7,794,132 $7,894,930 $7,943,181 $8,155,530 $260,600 3.3%REGIONAL PUMP STATIONS Personnel Services $125,271 $173,580 $173,580 $248,788 $75,208 43.3% Materials & Services 217,908 286,428 286,314 347,951 61,523 21.5% Capital Outlay - - - - - -- TOTAL $343,179 $460,008 $459,894 $596,739 $136,731 29.7% BENEFICIAL REUSE SITE Personnel Services $115,744 $268,581 $268,581 $276,970 $8,389 3.1% Materials & Services 8,660 44,893 44,815 51,728 6,835 15.2% Capital Outlay - - - - - -- TOTAL $124,404 $313,474 $313,396 $328,698 $15,224 4.9% TOTAL EUGENE Personnel Services $8,660,685 $9,204,678 $9,204,678 $9,736,062 $531,384 5.8% Materials & Services 4,458,810 4,781,367 4,828,068 4,728,395 (52,972) -1.1% Capital Outlay 141,149 163,706 163,706 20,000 (143,706) -87.8% TOTAL 13,260,644$ 14,149,751$ $14,196,452 $14,484,457 $334,706 2.4% TOTAL REGIONAL BUDGET 16,751,477$ $18,119,417 $18,303,868 $18,667,909 $548,492 3.0% NOTE: Does not include Major Rehab, Equipment Replacment or Major Capital Outlay EXHIBIT 3 REGIONAL WASTEWATER PROGRAM OPERATING BUDGET LINE ITEM SUMARY BY PROGRAM AREA Metropolitan Wastewater Management Commission Budget and Program Summary Page 15 FY 19-20 BUDGET AND CIP Note: * The Change (Increase/Decrease) column compares the adopted FY 19-20 budget to the originally adopted FY 18-19 budget column. ADOPTED BUDGET AMENDED BUDGET PROPOSED BUDGET CHANGE* FY 18-19 FY 18-19 FY 19-20 INC(DECR) Administration $3,969,666 $4,107,416 $4,183,452 $213,786 Operations 14,149,751 14,196,452 14,484,457 334,706 Capital Contribution & Transfers 14,000,000 14,000,000 14,700,000 700,000 Equipment Replacement - Contribution 1,000,000 1,000,000 1,500,000 500,000 Operating & Revenue Bond Reserve 10,002,821 11,600,427 10,872,909 870,088 Debt Service 5,452,810 5,452,810 4,947,783 (505,027) Total Operating Budget $48,575,048 $50,357,105 $50,688,601 $2,113,553 Funding: Beginning Balance $11,581,093 $13,363,149 $12,432,240 $851,147 User Fees 33,745,000 33,745,000 34,700,000 955,000 Other 3,248,955 3,248,955 3,470,119 221,164 Total Operating Budget Funding $48,575,048 $50,357,105 $50,602,359 $2,027,311 RNG Upgrade Facilities $7,050,000 $7,261,666 $6,065,000 ($985,000) WPCF Lagoon Remove/Decommission 5,550,000 5,561,312 4,700,000 (850,000) Class A Disinfection Facilities 750,000 750,000 2,300,000 1,550,000 Aeration Basin Improvements - Phase 2 0 0 1,000,000 NA Adminstration Building Improvements 0 0 1,000,000 NA Operation Building Improvements 8,900,000 9,924,165 800,000 (8,100,000) Poplar Harvest Mgmt. Services 160,000 94,631 425,000 265,000 Riparian Shade Credit Program 226,000 205,081 416,000 190,000 Thermal Load Pre-Implementation 200,000 277,542 295,000 95,000 Recycled Water Demonstration Project 300,000 300,000 180,000 (120,000) Facility Plan Engineering Services 85,000 131,582 90,000 5,000 Resiliency Planning 625,000 739,036 88,000 (537,000) Electrical Distribution System 4,600,000 4,904,482 0 NA Increase Digestion Capacity 2,500,000 $3,968,092 0 NA Comprehensive Facility Plan Update 130,000 130,000 0 NA Asset Management: Equipment Replacement Purchases 649,000 884,000 621,000 (28,000) Major Rehab 1,175,000 1,463,300 520,000 (655,000) Major Capital Outlay 200,000 215,000 0 NA Total Capital Projects $33,100,000 $36,809,889 $18,500,000 ($14,600,000) Funding: Equipment Replacement $649,000 $884,000 $621,000 ($28,000) Capital Reserve 32,451,000 35,925,889 17,879,000 (14,572,000) Total Capital Projects Funding $33,100,000 $36,809,889 $18,500,000 ($14,600,000) OPERATING BUDGET CAPITAL PROGRAM BUDGET BUDGET SUMMARY AND COMPARISON EXHIBIT 4 REGIONAL WASTEWATER PROGRAM Metropolitan Wastewater Management Commission Budget and Program Summary Page 16 FY 19-20 BUDGET AND CIP BUDGET AND RATE HISTORY The graphs on pages 17-18 show the regional residential wastewater service costs over a 5-year period, and a 5-year Regional Operating Budget Comparison. Because the Equipment Replacement, Major Infrastructure Rehabilitation and Major Capital Outlay programs are managed in the Eugene Operating Budget, based on the size, type and budget amount of the project these programs are incorporated into either the 5-year Regional Operating Budget Comparison graph or the 5-Year Capital Programs graph on page 18. The Regional Wastewater Capital Improvement Programs graph on page 18 shows the expenditures over the recent five years in the MWMC’s Capital Program and including Asset Management projects. A list of capital projects is located in Exhibit 13 on page 44. As shown on the Regional Residential Sewer Rate graph on page 17, regional sewer user charges have incrementally increased to meet the revenue requirements necessary to fund facility improvements as indentified in the 2004 MWMC Facilities Plan. This Plan and the subsequest 2014 Partial Facilies Plan Update demonstrated the need for a significant capital investment in new and expanded facilities to meet environmental performance requirements and capacity to serve the community through 2025. Although a portion of these capital improvements can be funded through system development charges (SDCs), much of the funding for approximately $196 million in capital improvements over the 20-year period will come from user charges. This has become a major driver of the MWMC’s need to increase sewer user rates, moderately and incremental on an annual basis. The National Association of Clean Water Agency (NACWA) publishes an annual Cost of Clean Water Index, which indicates the national average charges for wastewater services. The index includesg average wastewater charges by Environmental Protection Agency (EPA) regions. Of the EPA regions, Region 10 which includes Oregon, Washington and Idaho reflects the second highest wastewater expenses nationwide, based on demongraphics, geography, regulartory requirements, and a range of other issues. Within Region 10, the annual change in the cost of clean water index reflected a 4.3% average increase over the past 4-years: In FY 16-17 the MWMC regional user rates increased by 2% over the prior year rates, and in FY 17-18 rates increased by 3%, and the FY18-19 user rates increased by 2.5% over the prior year. The FY 19-20 Budget is based on a 2% user rate increase over the FY 18-19 rates. This increase will provide for Operations, Administration, Capital programs, reserves and debt service, continuing to meet capital and operating requirements and supporting the Commission’s Financial Plan policies, as well as financially positioning for future investments in capital assets. The following chart displays the regional component of a residential monthly bill when applying the base and flow rates to 5,000 gallons of wastewater treated, which includes a 2% or $0.53 increase effective July 1, 2019. Metropolitan Wastewater Management Commission Budget and Program Summary Page 17 FY 19-20 BUDGET AND CIP The graph below displays the regional component of a residential monthly bill, when applied to 5,000 gallons of wastewater treated for the recent 5-year period. The graph below displays the Regional Operating Budget amounts for the recent 5-year period. Metropolitan Wastewater Management Commission Budget and Program Summary Page 18 FY 19-20 BUDGET AND CIP The graph below displays the Regional Wastewater Capital Improvement Program Budget amounts for the recent 5-year period. RESERVE FUNDS Metropolitan Wastewater Management Commission Reserves Page 19 FY 19-20 BUDGET AND CIP REGIONAL WASTEWATER PROGRAM RESERVES The RWP maintains reserve funds for the dedicated purpose to sustain stable rates while fully funding operating and capital needs. Commission policies and guidance, which direct the amount of reserves appropriated on an annual basis, are found in the 2005 MWMC Financial Plan. Further details on the FY 19-20 reserves are provided below. OPERATING RESERVES The MWMC Operating Budget includes six separate reserves: the Working Capital Reserve, Rate Stability Reserve, Rate Stabilization Reserve, State Revolving Fund (SRF) Reserve, Insurance Reserve and the Operating Reserve. Revenues are appropriated across the reserves in accordance with Commission policy and expenditure needs. Each reserve is explained in detail below. WORKING CAPITAL RESERVE The Working Capital Reserve acts as a revolving account that is drawn down and replenished on a monthly basis to provide funds for payment of Springfield Administration and Eugene Operations costs prior to the receipt of user fees from the Springfield Utility Board and Eugene Water and Electric Board. The Working Capital Reserve is set at $900,000 for FY 19-20, $200,000 of which is dedicated to Administration and $700,000 is dedicated to Operations. RATE STABILITY RESERVE The Rate Stability Reserve was established to implement the Commission’s objective of maintaining stable rates. It is intended to hold revenues in excess of the current year’s operating and capital requirements for use in future years, in order to avoid potential rate spikes. The amount budgeted on an annual basis has been set at $2 million, with any additional net revenues being transferred to the capital reserve for future projects. RATE STABILIZATION RESERVE The Rate Stabilization Reserve contains funds to be used at any point in the future when net revenues are insufficient to meet the bond covenant coverage requirement. The Commission shall maintain the Rate Stabilization account as long as bonds are outstanding. In FY 19-20 no additional contribution to this reserve is budgeted and the balance at June 30, 2020, will remain at $2 million. CLEAN WATER STATE REVOLVING FUND (SRF) RESERVE The Clean Water SRF Reserve was established to meet revenue coverage requirements for SRF loans. The SRF Reserve is set at $435,603 for FY 19-20. Metropolitan Wastewater Management Commission Reserves Page 20 FY 19-20 BUDGET AND CIP INSURANCE RESERVE The Insurance Reserve was established to set aside funds equivalent to the insurance deductible amount for property and liability insurance coverage, for losses per occurrence. The Insurance Reserve is set at $1.5 million for FY 19-20. OPERATING RESERVE The Operating Reserve is used to account for accumulated operating revenues net of operating expenditures (including other reserves). The Commission’s adopted policy provides minimum guidelines to establish the Operating Reserve at approximately 10% of the adopted operating budget. For FY 19-20, the Operating Reserve is budgeted at $3,953,011, which includes the 10% of total Personnel Services, Materials and Services, and Capital Outlay in accordance with Commission policy. EXHIBIT 5 OPERATING RESERVES ADOPTED BUDGET FY 18-19 AMENDED BUDGET FY 18-19 PROPOSED BUDGET FY 19-20 Beginning Balance $11,581,093 $13,363,149 $12,432,240 User Fee Revenue 33,260,000 33,260,000 34,050,000 Septage Revenue 485,000 485,000 650,000 Other Revenue 1,072,110 1,072,110 1,262,210 Interest 150,000 150,000 180,000 Transfer from Improvements SDCs 2,000,000 2,000,000 2,000,000 Transfer from Reimbursement SDCs 22,845 22,845 23,909 Personnel Services (11,103,999) (11,103,999) (11,836,299) Materials & Services (6,847,712) (7,032,163) (6,805,663) Capital Outlay (163,706) (163,706) (20,000) Interfund Transfers (15,000,000) (15,000,000) (16,200,000) Debt Service - SRF Loan (1,446,158) (1,446,158) (936,928) Debt Service - 2016 Revenue Bond (4,006,652) (4,006,652) (4,010,855) Working Capital (900,000) (900,000) (900,000) Insurance Reserve (515,000) (1,500,000) (1,500,000) SRF Loan Reserve (670,908) (435,603) (435,603) Rate Stability Reserve (2,000,000) (2,000,000) (2,000,000) Rate Stabilization Reserve (2,000,000) (2,000,000) (2,000,000) Operating Reserve $3,916,913 $4,764,824 $3,953,011 Metropolitan Wastewater Management Commission Reserves Page 21 FY 19-20 BUDGET AND CIP CAPITAL RESERVES The MWMC Capital Budget includes four reserves: the Equipment Replacement Reserve, SDC Reimbursement Reserves, SDC Improvement Reserves, and the Capital Reserve. These reserves accumulate revenue to help fund capital projects including equipment replacement and major rehabilitation. They are funded by annual contributions from user rates, SDCs, and loans. Each reserve is explained in detail below. EQUIPMENT REPLACEMENT RESERVE The Equipment Replacement Reserve accumulates replacement funding for three types of equipment: 1) major/stationary equipment items costing less than $200,000 with useful lives of 20 years or less; 2) fleet vehicles maintained by the Eugene Wastewater Division; and 3) computer servers that serve the Eugene Wastewater Division. Contributions to the Equipment Replacement Reserve in the FY 19-20 budget total $1,500,000, additional budget details are provided below. The Equipment Replacement Reserve is intended to accumulate funds necessary to provide for the timely replacement or rehabilitation of equipment, and may also be borrowed against to provide short-term financing of capital improvements. An annual analysis is performed on the Equipment Replacement Reserve. The annual contribution is set so that all projected replacements will be funded over a 20-year period and at the end of the 20-year period, the reserve will contain replacement funds for all equipment projected to be in use at that time. Estimates used in the analysis include interest earnings, inflation rates and useful lives for the equipment. SYSTEM DEVELOPMENT CHARGE (SDC) RESERVES SDCs are required as part of the MWMC IGA. They are connection fees charged to new users to recover the costs related to system capacity, and are limited to funding Capital Programs. The purpose of the SDC Reserves is to collect and account for SDC revenues separately from other revenue sources, in accordance with Oregon statutes. The Commission’s SDC structure includes a combination of “Reimbursement” and “Improvement” fee components. Estimated SDC revenues for FY 19-20 are approximately $1,740,000. Budgeted expenditures include $2 million from Improvement Fees to fund portions of the annual debt service payments on the 2016 revenue bonds. The projected beginning SDC Reserve balance on July 1, 2019 is $4,547,593. EQUIPMENT REPLACEMENT RESERVE ADOPTED BUDGET FY 18-19 AMENDED BUDGET FY 18-19 PROPOSED BUDGET FY 19-20 Beginning Balance $12,007,589 $12,426,367 $12,799,367 Annual Equipment Contribution 1,000,000 1,000,000 1,500,000 Interest 30,000 30,000 250,000 Equipment Purchases (649,000) (884,000) (621,000) Equipment Replacement Reserve $12,388,589 $12,572,367 $13,928,367 Metropolitan Wastewater Management Commission Reserves Page 22 FY 19-20 BUDGET AND CIP CAPITAL RESERVE The Capital Reserve accumulates funds transferred from the Operating Reserve for the purpose of funding the CIP, Major Capital Outlay and Major Rehabilitation Program costs. The intent is to collect sufficient funds over time to construct a portion of planned capital projects with cash in an appropriate balance with projects that are funded with debt financing. The FY 19-20 Budget includes a contribution from the Operating Reserve of $14.7 million. The beginning balance on July 1, 2019, is projected to be $41,565,079. Additional budget detail on the CIP, Major Capital Outlay and Major Rehabilitation Program reserves is provided below. REIMBURSEMENT SDC RESERVE ADOPTED BUDGET FY 18-19 AMENDED BUDGET FY 18-19 PROPOSED BUDGET FY 19-20 Beginning Balance $1,002,018 $1,044,278 $1,188,432 Reimbursement SDCs Collected 135,000 135,000 140,000 Interest 2,000 2,000 15,000 SDC Compliance Charge 5,000 5,000 5,000 Xfr to Debt Service (Fund 612)(22,845) (22,845) (23,909) Materials & Services (2,000) (2,000) (2,000) Reimbursement SDC Reserve $1,119,173 $1,161,433 $1,322,523 IMPROVEMENT SDC RESERVE ADOPTED BUDGET FY 18-19 AMENDED BUDGET FY 18-19 PROPOSED BUDGET FY 19-20 Beginning Balance $3,620,463 $4,027,161 $3,359,161 Improvement SDCs Collected 1,600,000 1,600,000 1,600,000 Interest 9,000 9,000 30,000 Materials & Services (2,000) (2,000) (2,000) Xfr to Debt Service (Fund 612)(2,000,000) (2,000,000) (2,000,000) Improvement SDC Reserve $3,227,463 $3,634,161 $2,987,161 CAPITAL RESERVES ADOPTED BUDGET FY 18-19 AMENDED BUDGET FY 18-19 PROPOSED BUDGET FY 19-20 Beginning Balance $50,921,580 $53,958,166 $41,565,079 Transfer from Operating Reserve 14,000,000 14,000,000 14,700,000 Interest 500,000 500,000 900,000 Interest Income (Revenue Bond Proceeds)5,000 0 0 Other Income 10 10 10 SRF Loan Payoff 0 (5,019,885)0 Funding For Capital Improvement Projects (31,076,000) (34,247,589) (17,359,000) Funding For Major Rehabilitation (1,175,000) (1,463,300) (520,000) Funding For Major Capital Outlay (200,000) (215,000)0 Capital Reserve $32,975,590 $27,512,402 $39,286,089 OPERATING PROGRAMS Metropolitan Wastewater Management Commission Staffing Page 23 FY 18-19 BUDGET AND CIP EXHIBIT 6 REGIONAL WASTEWATER PROGRAMS* ORGANIZATION CHART FY 19-20 Metropolitan Wastewater Management Commission CITY OF EUGENE **Wastewater Division78.36 FTE Division Director.85 FTE Operations Manager.93 FTE Wastewater Treatment Plant 40.11 FTE Regional PumpStations1.31 FTE ComputerServices2.73 FTE Biosolids Management 12.67 FTE Operations 16.0 FTE Beneficial Reuse Site1.82 FTE Equipment Maintenance10.3 FTE Facility Maintenance9.32 FTE Laboratory2.65 FTE Industrial Pretreatment 5.35 FTE Stores 2.67 FTE Env DataAnalyst.65 FTE User FeeSupport1.0 FTE Operations 6.97 FTE Operations .53 FTE Equipment Maintenance.85 FTE Equipment Maintenance.59 FTE Equipment Maintenance2.57 FTE Facility Maintenance2.03 FTE Facility Maintenance.39 FTE Laboratory1.27 FTE Laboratory.66 FTE Laboratory.15 FTE Regulations &Enforcement3.38 FTE Admin Support5.36 FTE Support Services15.32 FTE Sampling.74 FTE Sampling.44 FTE Sampling.16 FTE PW Maint1.10 FTE Sampling.70 FTE Safety, Env & Health Supervisor.89 FTE Management Analyst.89 FTE Project Mgr. .93 FTE PW Financial Services.20 FTE MWMC Executive Officer.08 FTE MWMC General Manager.75 FTE AdministrationSupport.30 FTE Accounting.88 FTE MWMCAdministration11.60 FTE Industrial Pretreatment3.25 FTE AdministrationSupport.60 FTE Regulations & Enforcement2.95 FTE Budget & Financial Management1.15 FTE Property/ Risk Mgmt.20 FTE Customer Service.50 FTE Public Education2.0 FTE Construction Management5.40 FTE CITY OF SPRINGFIELD **Environmental Services Division & Finance Department16.56 FTE Facility Maintenance.46 FTE Special Projects/ Planning1.75 FTE Notes: * Full-Time Equivalent (FTE) figures represent portions of Eugene and Springfield staff funded by regional wastewater funds. ** The chart represents groups of staff dedicated to program areas rather than specific positions. Metropolitan Wastewater Management Commission Staffing Page 24 FY 18-19 BUDGET AND CIP BUDGET BUDGET BUDGET FTE CLASSIFICATION FY 17-18 FY 18-19 FY 19-20 CHANGE SPRINGFIELD ENVIRONMENTAL SERVICES & FINANCE Accountant 0.80 0.80 0.80 - Accounting Manager 0.08 0.08 0.08 - Administrative Specialist 2.00 2.65 2.65 - Civil Engineer/Design & Construction Coordinator 3.00 3.00 3.00 - Development and Public Works Director 0.08 0.08 0.08 - Engineering Assistant 0.65 0.00 0.00 - Environmental Management Analyst 0.90 0.90 0.90 - Environmental Services Program Manager 0.80 0.80 0.80 - Environmental Services Supervisor 0.95 0.95 0.95 - Environmental Services Technician 2.00 2.00 2.00 - ESD Manager/MWMC General Manager 0.80 0.80 0.80 - Management Analyst 0.75 0.75 0.75 - Managing Civil Engineer 1.75 1.75 1.75 - Public Information & Education Analyst 1.00 1.00 2.00 1.00 TOTAL SPRINGFIELD 15.56 15.56 16.56 1.00 EXHIBIT 7 REGIONAL WASTEWATER PROGRAM POSITION SUMMARY Metropolitan Wastewater Management Commission Staffing Page 25 FY 18-19 BUDGET AND CIP BUDGET BUDGET BUDGET FTE CLASSIFICATION FY 17-18 FY 18-19 FY 19-20 CHANGE EUGENE WASTEWATER DIVISION & OTHER PW Administrative Specialist 1.78 1.78 1.78 - Administrative Specialist, Sr 0.95 0.95 0.95 - Applicantion Support Technician 0.95 0.95 0.95 - Application Systems Analyst 1.78 1.78 1.78 - Custodian 1.00 1.00 1.00 - Finance & Admin Manager 0.89 0.89 0.89 - Electrician 1 3.28 3.28 3.28 - Engineering Associate 0.35 0.35 0.35 - Maintenance Worker 12.29 13.25 13.25 - Management Analyst 5.14 5.14 5.14 - Parts and Supply Specialist 1.78 1.78 1.78 - PW Financial Services Manager 0.20 0.20 0.20 - Utility Billing Coordinator 1.00 1.00 1.00 - Wastewater Lab Assistant 0.82 0.82 0.82 - Wastewater Division Director 0.85 0.85 0.85 - Wastewater Instrument Electrician 1.00 1.00 1.00 - Wastewater Plan Operations Manager 0.93 0.93 0.93 - Wastewtaer Operations Supervisor 2.00 2.00 2.00 - Wastewater Plan Maintenance Supervisor 2.88 2.88 2.88 - Wastewater Pretreatment & Lab Supervisor 0.82 0.82 0.82 - Wastewater Technician 36.71 36.71 36.71 - TOTAL EUGENE 77.40 78.36 78.36 - GRAND TOTAL 92.96 93.92 94.92 1.00 POSITION SUMMARY EXHIBIT 7 (Continued) REGIONAL WASTEWATER PROGRAM Metropolitan Wastewater Management Commission Springfield Budget Detail Page 26 FY 18-19 BUDGET AND CIP Program Responsibilities Administration & Management Financial Planning & Management Long-Range Capital Project Planning Project and Construction Management Coordination between the Commission and governing bodies Coordination and Management of: Risk Management & Legal Services Public Policy Issues Regulatory and Permit Compliance Issues Public Information, Education and Outreach Industrial Pretreatment Source Control Customer Service CITY OF SPRINGFIELD REGIONAL WASTEWATER PROGRAM RESPONSIBILITIES The City of Springfield manages administration services for the RWP under the Intergovernmental Agreement for the Metropolitan Wastewater Management Commission (MWMC). The programs maintained by Springfield to support the RWP are summarized below and are followed by Springfield’s regional wastewater budget summaries. Activities, and therefore program budgets, for the MWMC administration vary from year to year depending upon the major construction projects and special initiatives underway. A list of the capital projects Springfield staff will support in FY 19-20 is provided in Exhibit 12 on page 41. MWMC ADMINISTRATION The Springfield Environmental Services Division (ESD) and Finance Department provide ongoing support and management services for the MWMC. The Development and Public Works (DPW) Director serves as the MWMC Executive Officer. The Environmental Services Manager serves as the General Manager. Springfield provides the following administration functions: financial planning management, accounting and financial reporting; risk management and legal services; coordination and management of public policy; coordination and management of regulatory and permit compliance issues; coordination between the Commission and the governing bodies; long-range capital project planning and construction management; coordination of public information, education, and citizen involvement programs; sewer user customer service; and coordination and development of regional budgets, rate proposals, and revenue projections. INDUSTRIAL PRETREATMENT (SOURCE CONTROL) PROGRAM The Industrial Pretreatment Program is a regional activity implemented jointly by the Cities of Eugene and Springfield. The Industrial Pretreatment section of the ESD is charged with administering the program for the regulation and oversight of wastewater discharged to the sanitary collection system by industries in Springfield. This section is responsible for ensuring that these wastes do not damage the collection system, interfere with wastewater treatment processes, result in the pass-through of harmful pollutants to treated effluent or biosolids, or threaten worker health or safety. This responsibility is fulfilled, in part, by the use of a permit system for industrial dischargers. This permit system, common to both Eugene and Springfield, implements necessary limitations on waste characteristics and establishes inspection, monitoring, and reporting requirements for documenting waste quality and quantity controls. The Industrial Pretreatment section is also responsible for locating new industrial discharges in Springfield and evaluating the impact of those discharges on the regional WPCF. The Industrial Pretreatment Program also addresses Metropolitan Wastewater Management Commission Springfield Budget Detail Page 27 FY 18-19 BUDGET AND CIP the wastewater discharges of some commercial/industrial businesses through the development and implementation of Pollution Management Practices. Pretreatment program staff also coordinates pollution prevention activities in cooperation with the Pollution Prevention Coalition of Lane County. ACCOUNTING AND FINANCIAL REPORTING Accounting and financial reporting services for the RWP are provided by the Accounting section in the Springfield Finance Department, in coordination with ESD. Springfield Accounting staff maintains grant and contract accounting systems, as well as compliance with all local, state and federal accounting and reporting requirements for MWMC finances. This section also assists ESD with preparation of the MWMC budget, capital financing documents, sewer user rates, and financial policies and procedures. PROGRAMS AND SIGNIFICANT SERVICE/EXPENDITURE CHANGES In FY 19-20, the City of Springfield will support the following major regional initiatives in addition to ongoing Commission administration and industrial pretreatment activities: Continue public information, education and outreach activities focused on the MWMC’s Key Outcomes and Communication Plan objectives to increase awareness of the MWMC’s ongoing efforts in maintaining water quality and a sustainable environment. Implement Capital Financing strategies necessary to meet current debt obligations, prepare for additional debt financing, and ensure sufficient revenues in accordance with the MWMC Financial Plan. Continue implementation of the 2004 MWMC Facilities Plan and 2014 Partial Facilities Plan Update to meet all regulatory requirements and capacity needs. Considering emerging environmental regulations that may impact the operation of the WPCF. Protect the Regional Wastewater Program (RWP) interests through participation in Association of Clean Water Agencies activities. Coordinate temperature Total Maximum Daily Load (TMDL) compliance through continued development and implementation of the thermal load mitigation strategy, including but not limited to a recycled water program. Continue participation with the Association of Clean Water Agencies and the Department of Environmental Quality on regulatory permitting strategies and the development of water quality trading rules. Implement resiliency planning to ensure protection of public health and safety following natural disasters such as earthquakes and floods. Metropolitan Wastewater Management Commission Springfield Budget Detail Page 28 FY 18-19 BUDGET AND CIP BUDGET CHANGES FOR FY 19-20 The budget for Springfield Personnel Services, Materials and Services, and Capital Outlay for FY 19-20 totals $4,183,452 representing an overall increase of $213,786 or 5.4% from the adopted FY 18-19 budget (or an increase of 1.9% from the amended FY 18-19 budget), as displayed in Exhibit 8 on page 29. Personnel Services Personnel Services totaling $2,100,237 represents a FY 19-20 increase of $200,916 or 10.6% above the originally adopted FY 18-19 budget. The notable changes are summarized below: Staffing The FY 19-20 budget includes 1.00 Full Time Equivalent (FTE) increase in staffing level from the FY 18-19 budget. This increase will expand the Public Information, Education and Outreach programs. Resulting in a total staffing level at 16.56 FTE in Springfield. Regular Wages and Overtime - $1,356,841, an increase of $97,403 or 7.8% Salaries are based upon the negotiated management/labor contracts as approved by the Springfield City Council, and staffing levels. Employee Benefits - $410,758, an increase of $84,474 or 25.9% The employee benefits consist mainly of PERS/OPSRP retirement system costs, FICA and Medicare contributions. Health Insurance - $332,638, an increase of $19,093 or 6.1% The increase is based on group claims experience and cost projections. Costs are calculated based on the number of employees. Materials and Services The Materials and Services budget total is $2,083,215 in FY 19-20, representing an increase of $12,870 or 0.6% above the adopted FY 18-19 budget. The notable changes are summarized below: Contractual Services Charges - $177,900, an increase of $37,350 or 26.6% The $37,350 increase is primarily related to Public Education and Outreach. An update to the Market Research – Community Survey is planned in FY 19-20. Property & Liablity Insurance - $320,000, a net decrease of $30,000 or 8.6% The $30,000 budget decrease is based on recent pricing for insurance premiums, multi-year agreements, and a realignment of coverage based on a risk analysis. Internal & Indirect Charges Combined - $463,789, a net decrease of $13,185 or 2.8% The $13,185 decrease is based on changes in overhead costs as programmed in the FY 19-20 budget, when compared FY 18-19. Indirect costs are based on a methodology approved by the federal government, which is outlined in the MWMC Intergovernmental Agreement. Billing & Collection Services - $645,000, an increase of $15,000 or 2.4% The $15,000 budget increase is based on an increase in billing accounts and services. Metropolitan Wastewater Management Commission Springfield Budget Detail Page 29 FY 18-19 BUDGET AND CIP Note: * Change column compares the adopted FY 19-20 Budget to the adopted FY 18-19 Budget. ACTUALS ADOPTED BUDGET AMENDED BUDGET PROPOSED BUDGET FY 17-18 FY 18-19 FY 18-19 FY 19-20 Personnel Services $1,795,502 $1,899,321 $1,899,321 $2,100,237 $200,916 10.6% Materials & Services 1,704,484 2,070,345 2,208,095 2,083,215 12,870 0.6% Capital Outlay 0 0 0 0 0 0% Budget Summary $3,499,986 $3,969,666 $4,107,416 $4,183,452 $213,786 5.4% INCR/(DECR) EXHIBIT 8 SPRINGFIELD ADMINISTRATION PROGRAM PROPOSED FY 19-20 BUDGET SUMMARY CHANGE * $3,833,401 $3,800,923 $3,941,900 $3,969,666 $4,183,452 $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 19-20 5-YEAR MWMC BUDGET COMPARISON SPRINGFIELD ADMINISTRATION Metropolitan Wastewater Management Commission Springfield Budget Detail Page 30 FY 18-19 BUDGET AND CIP ADOPTED AMENDED PROPOSED ACTUALS BUDGET BUDGET BUDGET FY 17-18 FY 18-19 FY 18-19 FY 19-20 PERSONNEL SERVICES Regular Wages $1,181,225 $1,253,697 $1,253,697 $1,351,100 $97,403 7.8% Overtime 3,144 5,741 5,741 5,741 0 0.0% Employee Benefits 300,991 326,284 326,284 410,758 84,474 25.9% Health Insurance 310,142 313,599 313,599 332,638 19,039 6.1% Total Personnel Services $1,795,502 $1,899,321 $1,899,321 $2,100,237 $200,916 10.6% FTE 15.46 15.56 15.56 16.56 1.00 6.4% MATERIALS & SERVICES Billing & Collection Expense $618,129 $630,000 $630,000 $645,000 $15,000 2.4% Property & Liability Insurance 322,812 350,000 350,000 320,000 (30,000)-8.6% Contractual Services 29,242 140,550 140,550 177,900 37,350 26.6% Attorney Fees and Legal Expense 39,091 184,505 184,505 185,005 500 0.3% WPCF/NPDES Permits 126,833 137,000 137,000 137,000 0 0.0% Materials & Program Expense 101,058 96,991 196,991 97,912 921 0.9% Computer Software & Licenses 2,678 10,550 48,300 12,934 2,384 22.6% Employee Development 15,729 21,275 21,275 20,675 (600)-2.8% Travel & Meeting Expense 14,746 22,500 22,500 23,000 500 2.2% Internal Charges 136,709 157,822 157,822 135,709 (22,113)-14.0% Indirect Costs 297,456 319,152 319,152 328,080 8,928 2.8% Total Materials & Services $1,704,484 $2,070,345 $2,208,095 $2,083,215 $12,870 0.6% CAPITAL OUTLAY Total Capital Outlay 0 0 0 0 0 0.0% TOTAL $3,499,986 $3,969,666 $4,107,416 $4,183,452 $213,786 5.4% INCR/(DECR) CHANGE SPRINGFIELD ADMINISTRATION LINE ITEM BUDGET SUMMARY EXHIBIT 9 Metropolitan Wastewater Management Commission Eugene Budget Detail Page 31 FY 19-20 BUDGET AND CIP Program Responsibilities Administration & Management Biosolids Management Facility Operations Facility Maintenance Environmental Services Management Information Services Project Management CITY OF EUGENE REGIONAL WASTEWATER PROGRAM RESPONSIBILITIES The Wastewater Division for the City of Eugene manages all regional wastewater pollution control facilities serving the areas inside the Eugene and Springfield Urban Growth Boundaries under the Intergovernmental Agreement for the Metropolitan Wastewater Management Commission (MWMC). These regional facilities include the Eugene/Springfield Regional Water Pollution Control Facility (WPCF), the Biosolids Management Facility, the Beneficial Reuse Site, the Biocycle Farm site, and regional wastewater pumping stations and transmission sewers. In support of the water pollution control program, the Division provides technical services for wastewater treatment, management of equipment replacement and infrastructure rehabilitation, biosolids treatment and recycling, regional laboratory services, and an industrial source control and pretreatment program in conjunction with City of Springfield staff. ADMINISTRATIVE AND MANAGEMENT SERVICES Administrative Services provides management, administrative, and office support to the Wastewater Division. This support includes the general planning, directing, and managing of the activities of the Division; development and coordination of the budget; administration of personnel records; and processing of payroll, accounts payable, and accounts receivable. This section also provides tracking and monitoring of all assets for the regional wastewater treatment facilities and support for reception, customer service, and other administrative needs. The Administrative services include oversight and coordination of the Division’s Environmental Management System, safety, and training programs, and a stores unit that purchases and stocks parts and supplies and assists with professional services contracting. Another area this program administers is the coordination of local and regional billing and rate activities. REGIONAL WASTEWATER TREATMENT FACILITY OPERATIONS The Wastewater Division operates the WPCF to treat domestic and industrial liquid wastes to achieve an effluent quality that protects and sustains the beneficial uses of the Willamette River. The Operations section optimizes wastewater treatment processes to ensure effluent quality requirements are met in an efficient and cost effective manner. In addition, the Operations section provides continuous monitoring of the alarm functions for all plant processes, regional and local pump stations, Biosolids Management Facility, and the Beneficial Reuse Site. MAINTENANCE The mechanical, electrical, and facilities maintenance sections of the Wastewater Division are responsible for preservation of the multi-million dollar investment in the equipment and infrastructure of the WPCF, local and regional pump stations, pressure sewers, as well as the Biosolids Management Facility. These sections provide a preventative maintenance program to maximize equipment life and reliability; a corrective maintenance program for repairing unanticipated equipment failures; and a facility maintenance program to maintain the buildings, treatment structures, and grounds. Metropolitan Wastewater Management Commission Eugene Budget Detail Page 32 FY 19-20 BUDGET AND CIP BIOSOLIDS MANAGEMENT The Residuals Management section of the Wastewater Division manages the handling and beneficial reuse of the biological solids (biosolids) produced as a result of the activated sludge treatment of wastewater. This section operates the Biosolids Management Facility (BMF) and the Biocycle Farm located at Awbrey Lane in Eugene. The biosolids are treated using anaerobic digestion, stored in facultative lagoons (which provide some additional treatment benefits), and then processed through a belt filter press and air-dried to reduce the water content and facilitate transport. The dried material is ultimately applied to agricultural land. Biosolids are also irrigated on poplar trees at the Biocycle Farm as a beneficial nutrient and soil conditioner. This section also operates the Beneficial Reuse Site which formerly served to treat wastewater from food processing operations. ENVIRONMENTAL SERVICES Environmental Services is comprised of Industrial Source Control (Pretreatment), Analytical Services, and Sampling Team. Industrial Source Control - The pretreatment program is a regional activity implemented jointly by the cities of Eugene and Springfield. The Industrial Source Control group of the Wastewater Division is charged with administering the pretreatment program for the regulation and oversight of commercial and industrial wastewaters discharged to the wastewater collection system by fixed-site industries in Eugene and by mobile waste haulers in the Eugene and Springfield areas. This group is also responsible for ensuring that these wastes do not damage the collection system, interfere with wastewater treatment processes, result in the pass-through of harmful pollutants to treated effluent or biosolids, or threaten worker health or safety. This responsibility is fulfilled through the use of a permit system for industrial dischargers. This permit system, common to both Eugene and Springfield, implements necessary limitations on waste characteristics and establishes inspection, monitoring, and reporting requirements for documenting waste quality and quantity controls. The staff is also responsible for locating new industrial discharges in Eugene and evaluating the impact of new non-residential discharges on the WPCF. The section also has responsibilities related to environmental spill response activities. Analytical Services - The Analytical Services group provides analytical laboratory work in support of wastewater treatment, residuals management, industrial source control, stormwater monitoring, and special project activities of the Wastewater Division. The laboratory's services include sample handling and analyses of influent sewage, treated wastewater, biosolids, industrial wastes, stormwater, and groundwater. Information from the laboratory is used to make treatment process control decisions, document compliance with regulatory requirements, demonstrate environmental protection, and ensure worker health and safety. Sampling Team - The Sampling Team is responsible for sampling activities related to regional wastewater program functions. These include the Eugene pretreatment program, wastewater treatment process control, effluent and ambient water quality, groundwater quality, facultative sludge lagoons, and stormwater samples. The Division’s Environmental Data Analyst evaluates and reports on the sampling data for various programs. Metropolitan Wastewater Management Commission Eugene Budget Detail Page 33 FY 19-20 BUDGET AND CIP MANAGEMENT INFORMATION SERVICES (MIS) The MIS section provides services for electronic data gathering, analysis, and reporting in compliance with regulatory requirements and management functions. This section also maintains the network communication linkages with the City of Eugene and supplies technical expertise and assistance in the selection, operation, and modification of computer systems (hardware and software) within the Division. PROJECT MANAGEMENT Management of wastewater system improvements and ongoing developments is carried out by the Project Management staff. Activities include coordination of CIP activities with the City of Springfield staff, problem-solving and action recommendations, project management, technical research, coordination of activities related to renewal of the National Pollutant Discharge Elimination System (NPDES) wastewater discharge permit, computer-aided design and electronic storage of design drawings, and planning of projects to anticipate and prepare for new regulatory and operational requirements. The Project Management staff develops Request for Proposals and Request for Quotes, coordinates special project activities between work sections, and coordinates the procurement of building permits as necessary in support of project activities. PROGRAMS AND SERVICE/EXPENDITURE CHANGES In FY 19-20, Eugene staff will support the following major regional initiatives in addition to ongoing operational activities. Manage the O&M responsibilities of the NPDES permits for the treatment of wastewater and the Lane Regional Air Protection Agency (LRAPA) air emissions permit for the regional wastewater treatment plant. Evaluate impacts of regulatory actions upon operational responsibilities such as the federal sanitary sewer overflows (SSO), blending policy development, Willamette River TMDLs implementation, and any newly adopted state water quality standards. Provide technical input and O&M assessments related to proposed initiatives for addressing TMDL compliance, renewable energy objectives, and operational resiliency. Complete scheduled major rehabilitation, equipment replacement, and other capital projects in an efficient and timely manner. Work cooperatively on CIP elements and effectively integrate capital project work with ongoing O&M activities with an emphasis on maintaining an effective CIP management and coordination program with Springfield staff. Manage the Operations & Maintenance (O&M) aspects of the Biocycle Farm, continuing biosolids irrigation practices and poplar tree management. Metropolitan Wastewater Management Commission Eugene Budget Detail Page 34 FY 19-20 BUDGET AND CIP CHANGES IN THE O & M BUDGET FOR FY 19-20 The FY 19-20 budget for Operations and Maintenance of the regional wastewater treatment facilities (personnel, materials and services, and capital outlay) totals $14,484,457. The amount represents an increase of $334,706 or 2.4% from the FY 18-19 budget (or an increase of 2.0% from the amended FY 18-19 budget). The significant cost centers for the budget include personnel costs, chemicals, materials, maintenance, contractual services, fleet, and utilities. Significant items and changes for the FY 19-20 Operations and Maintenance budget as compared to the FY 18-19 budget include: Personnel Services Personnel Services totaling $9,736,062 represents a FY 19-20 increase of $531,384 or 5.8%. There are no requested changes in the current staffing level of 78.36 Full Time Equivalent (FTE) positions. The notable changes are in the following budget categories: Employee Benefits - $2,411,197, an increase of $305,441 or 14.5% For FY 19-20 there will be an increase of PERS/OPSRP retirement system costs, the largest portion of employee benefits, in addition to FICA and Medicare contributions. Health Insurance - $1,612,273, an increase of $66,420 or 4.3% The increase is based on group claims experience and cost projections. Costs are calculated based on the number of employees. Overtime - $70,400, an increase of $30,400 or 76% The FY 19-20 budget includes an increase in overtime from the FY 18-19 budget. This increase is due to the need for additional water quality sampling and monitoring resulting from a 2015 EPA/DEQ Audit of MWMC’s pretreatment programs. These increases in sampling and monitoring include additional work due to the Local Limits Sampling Project. The Local Limits Sampling Project is scheduled to occur quarterly and requires overnight sampling. Regular Wages - $5,535,693, an increase of $139,985 or 2.6% Salaries are based upon the negotiated management/labor contracts between the City of Eugene and the local union (AFSCME). The current AFSCME contract is effective through June 20, 2020. Materials and Services The Materials and Services budget totaling $4,728,395 represents an FY 19-20 net decrease of $52,972 or 1.1%. The notable changes are in the following budget categories: Chemicals - $350,850, a net increase of $20,850 or 6.3% The price agreement for sodium hypochlorite expired recently and a new five-year price agreement has been entered into. The increase for costs in this line item are mainly due to increases in the new price agreement. Contractual Services - $402,511, a net decrease of $75,486 or 15.8% This account includes services for outside lab testing, USGS water monitoring, seasonal temporary help, and grit waste disposal. The decrease for this item is mostly owing to the conclusion of one-time projects in FY 18-19 and an expected reduction in professional services for FY 19-20. Metropolitan Wastewater Management Commission Eugene Budget Detail Page 35 FY 19-20 BUDGET AND CIP Computer Equipment, Supplies, Maintenance - $270,919, a net decrease of $84,515 or 23.8% The decrease is due mostly to the completion in FY 18-19 of budgeted one-time items related to the Building Improvements project. Fleet - $372,105, a net decrease of $40,152 or 9.7% Fleet services are managed centrally by Eugene Fleet Services. Budgeted fleet rates are based upon recent vehicle and equipment maintenance costs. Utilities - $862,200, an increase of $85,782 or 11.0% The Utilities account includes the purchase of electrical power, natural gas, water, and sewer charges for all regional facilities. While EWEB is not forecasting a rate increase for FY 19-20, the utilities increase for FY 19-20 is mainly due to the inclusion of the fourth Digester and its associated utility costs, the projected cost due to expected down-time for the co-generation engine, and the eventual inclusion of the RNG capital project resulting in an increased demand for natural gas instead of biogas for process heating. Metropolitan Wastewater Management Commission Eugene Budget Detail Page 36 FY 19-20 BUDGET AND CIP ACTUALS ADOPTED BUDGET AMENDED BUDGET PROPOSED BUDGET FY 17-18 FY 18-19 FY 18-19 FY 19-20 Personnel Services $8,660,685 $9,204,678 $9,204,678 $9,736,062 $531,384 5.8% Materials & Services 4,458,809 4,781,367 4,828,067 4,728,395 (52,972) -1.1% Capital Outlay 141,149 163,706 163,000 20,000 (143,706) -87.8% Budget Summary $13,260,643 $14,149,751 $14,195,745 $14,484,457 $334,706 2.4% NOTE: Does not include Major Rehab or Equipment Replacement INCR/(DECR) EXHIBIT 10 EUGENE - OPERATIONS AND MAINTENANCE PROGRAM PROPOSED FY 19-20 BUDGET SUMMARY CHANGE * $13,516,071 $13,899,707 $14,346,300 $14,149,751 $14,484,457 $0 $3,000,000 $6,000,000 $9,000,000 $12,000,000 $15,000,000 $18,000,000 FY 15-16 FY 16-17 FY 17-18 FY 18-19 FY 19-20 5-YEAR MWMC BUDGET COMPARISON EUGENE - OPERATIONS AND MAINTENANCE CAPITAL PROGRAM Metropolitan Wastewater Management Commission Capital Improvement Program Page 37 FY 19-20 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 19-20 CIP Budget, the FY 19-20 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 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 Page 38 FY 19-20 BUDGET AND CIP Capital Program Funding and Financial Planning Methods and Policies This annual budget document presents the FY 19-20 CIP Budget, the FY 19-20 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 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 Capital Reserves, which may include proceeds from revenue bond sales, financing through the State of Oregon Department of Environmental Quality (DEQ) Clean Water State Revolving Fund loan program, system development charges, and transfers from the Operating Fund to Capital Reserves. The AMCP is funded through wastewater user fees. 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 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; 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 the initial purchase of major equipment that will be placed on the equipment replacement list, or a one time large capital expense.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. 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. Accoridingly, the 2004 FP projections were based on the 20-city average Engineering News Record Construction Cost Index (ENRCCI). Since 2004, local construction cost inflation accelerated even faster than the national average. City of Springfield staff identified this trend and subsequently modified their inflationary projection methodology accordingly. 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 19-20 Budget and 5-year Capital Plan. Metropolitan Wastewater Management Commission Capital Improvement Program Page 39 FY 19-20 BUDGET AND CIP Regional Wastewater Capital Program Status and Budget CIP Project Status and Budget The FY 19-20 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 19-20 project budgets is $17,359,000. Each capital project represented in the FY 19-20 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. Completed Capital Projects The following capital projects were completed in FY 18-19: Increase Digestion Capacity Electrical Distribution System Replacement / Upgrades Carryover Capital Projects All or a portion of remaining funding for active capital projects in FY 18-19 is carried forward to the FY 19-20 Budget. The on-going carryover projects are: Renewable Natural Gas (RNG) Upgrade Facilities Decommission WPCF Lagoon Class A Disinfection Facilities Operations & Maintenance Building Improvements Poplar Harvest Management Services Riparian Shade Credit Program Thermal Load Mitigation: Pre-Implementation Recycled Water Demonstration Project Facilities Plan Engineering Services Resiliency Planning Metropolitan Wastewater Management Commission Capital Improvement Program Page 40 FY 19-20 BUDGET AND CIP 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 Aeration Basin Improvements - Phase 2 Administration Building Improvements FY 19-20 Capital Budget Summary (Exhibit 12) Exhibit 12 displays the adjusted budget and end-of-year expenditure estimates for FY 18-19, the amount of funding projected to be carried over to FY 19-20 and additional funding for existing and/or new projects in FY 19-20. FY 18-19 ADJUSTED BUDGET FY 18-19 ESTIMATED ACTUALS FY 18-19 CARRYOVER TO FY 18-19 NEW FUNDING FOR FY 19-20 TOTAL FY 19-20 BUDGET Increase Digestion Capacity 3,968,092 3,900,000 0 0 0 Electrical Distribution System Replace / Upgrade 4,904,482 2,200,000 0 0 0 Renewable Natural Gas (RNG) Upgrade 7,261,666 3,346,666 3,915,000 2,150,000 6,065,000 Decommission WPCF Lagoon 5,561,312 861,312 4,700,000 0 4,700,000 Class A Disinfection Facilities 750,000 4,000 746,000 1,554,000 2,300,000 Operations & Maint Building Improvements 9,924,165 9,124,165 800,000 0 800,000 Poplar Harvest Management Services 94,631 118,486 (24,000) 449,000 425,000 Riparian Shade Credit Program 205,081 94,782 110,000 306,000 416,000 Thermal Load Mitigation: Pre-Implementation 277,542 171,424 106,000 189,000 295,000 Recycled Water Demonstration Project 300,000 0 180,000 0 180,000 Facilities Plan Engineering Services 131,582 130,943 0 90,000 90,000 Resiliency Planning 739,036 651,000 88,000 0 88,000 Comprehensive Facility Plan Update 130,000 130,000 0 0 0 Thermal Load Mitigation: Implementation 1 0 (47,736)0 0 0 New Projects Started in FY 19-20 Administration Building Improvements 0 0 0 1,000,000 1,000,000 Aeration Basin Improvements - Phase 2 0 0 0 1,000,000 1,000,000 TOTAL Capital Projects $34,247,589 $20,685,042 $10,621,000 $6,738,000 $17,359,000 Laboratory Information Management System 215,000 215,000 0 0 0 TOTAL Major Capital Outlay $215,000 $215,000 $0 $0 $0 EXHIBIT 12 Summary of FY 19-20 MWMC Construction Program Capital Budget Projects to be Carried Over to FY 19-20 Major Capital Outlay Carried Over to FY 19-20 Projects to be Copleted in FY 18-19 Metropolitan Wastewater Management Commission Capital Improvement Program Page 41 FY 19-20 BUDGET AND CIP FY 19-20 Asset Management Capital Program and Budget The AMCP consists of the following three programs: Equipment Replacement Major Rehabilitation Major Capital Outlay The FY 19-20 budget of each program is described below. Equipment Replacement Program - Budget The FY 19-20 Capital Programs budget includes $621,000 in Equipment Replacement purchases that are identified on the table below. Farm Tractors – Replacing three John Deere tractors that were purchased in 2004 for year-round use at the BMF and Biocycle Farm. Cargo Van – Replacing 12 year old utility van used by sampling staff to conduct water quality sampling work in the field. Compact IC Pro Anion MCS Chromatograph with Laptop – This laboratory instrument is used to analyze groundwater samples (e.g., chloride, fluoride, sulfate, etc.) as required for NPDES permit compliance. This replacement will update obsolete technology and take advantage of technological improvements. Segmented Flow Analyzer (SFA) – This is a permit required piece of laboratory equipment used for analyzing treatment samples (e.g., TSS, CBOD, ammonia, etc.) from all process areas. Used daily, the current SFA was installed in 2009 and has an expected life of 10 years. Shop Vehicle/Box Van – Electrical maintenance staff currently uses an electric cart that is due for replacement and intend to replace the cart with a larger vehicle that is road licensed to provide greater utility. Cesrv300 File Server – Most applications and file shares (directories) at Eugene WW Division are run from or routed through the Cesrv300 File Server. Used heavily by staff, the Cesrv300 File Server is a mission critical computer and storage system with an expected service life of five years. Project Description FY 19-20 Budget Three Farm Tractors - BMF and Biocycle Farm $420,000 Cargo Van - Oprations 60,000 Pro Anion MCS ION Chromatograph with Laptop - Operations 40,000 Segmented Flow Analyzer - Operations 40,000 Shamll Shop Vehicle/Box Van - Plant 26,000 Computer File Server (cesrv300) - Operations 15,000 Sludge Blanket Level System - Secondary 10,000 LEL Detection System - Digetsters 10,000 Total $621,000 Equipment Replacement Metropolitan Wastewater Management Commission Capital Improvement Program Page 42 FY 19-20 BUDGET AND CIP Sludge Blanket Level System – These are elements and transmitters in the secondary clarifiers to measure the sludge blanket levels and communicate data to the distributed control system (DCS) at the operations console. Purchased and replaced as a package for all 10 clarifiers, the current electronics were installed in 2006 and are due for replacement. Lower Explosive Limit (LEL) Detection System – Due to construction of Digester #4, replacement of the boiler, and reconstruction of the boiler piping system, the current LEL detection system needs upgraded with newer compatible technology and expanded to cover a larger area. Major Rehabilitation Program - Budget The FY 19-20 Capital Programs budget includes $520,000 for Major Rehabilitation projects that are identified on the table below. Dome Interior Coating Repair, Digester #2 – When evaluated at last cleaning, the interior coating on the dome of Digester #2 showed evidence of delaminating. Dredge Rebuild, BMF – The dredge used in the lagoons at BMF is rebuilt every 10 years and is on schedule for overhaul in FY 19-20. Secondary Clarifier Rake Arms Recoating – There are ten secondary clarifiers and two of the clarifier rake arms are scheduled for recoating each year to remove corrosion and prolong equipment life. Yokogawa Vnet DCS Migration – The Yokogawa software used at the DCS Operations Console was installed in 1995 as a loop (“chain”) network with all connected computer systems in sequence. Vnet (“mesh”) virtual network architecture is much more stable and secure but requires the re-installation of all communication cables among all computer systems integrated into the DCS at the WPCF. Operations/Maintenance Building Improvements – This expenditure will go towards miscellaneous improvements, repairs, and renovations to prolong the life and improve functionality of existing MWMC buildings. Roof Replacement, GBT Building – The gravity belt thickener (GBT) building is a standalone facility at the WPCF with its own roof, constructed in 1993, which has reached the end of its useful life. Roof Replacement, MWMC Modular – The modular building at the WPCF used by MWMC staff was constructed with a 20-year shingled roof, which is now in need of replacement. Project Description FY 19-20 Budget Dome Interior Coating Repair - Digester #2 $150,000 Dredge Rebuild - BMF 120,000 Collector Mechanism, Clarifier Rake Arms Recoating - Secondary 80,000 Yokogawa Vnet DCS Migration - Operations 60,000 Operations/Maintenance Building Improvements - Plant 50,000 Roof Replacement - Gravity Belt Thickener Building 45,000 Roof Replacement - MWMC Modular Building, Plant 15,000 Total $520,000 Major Rehabilitation Metropolitan Wastewater Management Commission Capital Improvement Program Page 43 FY 19-20 BUDGET AND CIP Major Capital Outlay There are no new requests for Major Capital Outlay in FY 19-20. Asset Management Capital Budget Summary The following table summarizes the FY 19-20 Asset Management Capital Program Budget by project type showing a total AMCP budget of $1,141,000. 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 18-19 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 18-19 budget and continue forward in the FY 19-20 for the 5-Year Capital Plan. Exhibit 13 displays the MWMC 5-Year Capital Plan programs budget, which includes $46,688,000 in planned capital projects and $10,002,000 planned asset management capital projects for an overall 5-Year Capital Plan Budget of $56,690,000. Project Description FY 19-20 Budget Equipment Replacement $621,000 Major Rehabilitation 520,000 Major Capital Outlay - Total $1,141,000 Asset Management Capital Project Budget Metropolitan Wastewater Management Commission Capital Improvement Program Page 44 FY 19-20 BUDGET AND CIP FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24 TOTAL CAPITAL PROJECTS Poplar Harvest Management Services 425,000 230,000 175,000 830,000 Facility Plan Engineering Services 90,000 105,000 110,000 305,000 Resiliency Planning 88,000 88,000 Comprehensive Facility Plan Update 2,080,000 2,080,000 Glenwood Pump Station Upgrade 1,300,000 1,300,000 Renewable Natural Gas (RNG) Upgrades 6,065,000 6,065,000 Decommissioning WPCF Lagoon 4,700,000 4,700,000 Class A Disinfection Facilities (1)2,300,000 2,300,000 Aeration Basin Improvements - Phase 2 1,000,000 1,000,000 1,500,000 3,500,000 Administration/Operations Building Improvements 1,000,000 4,000,000 5,000,000 Operations & Maintenance Building Improvements 800,000 800,000 Riparian Shade Credit Program (1)416,000 416,000 416,000 416,000 416,000 2,080,000 Thermal Load Mitigation: Pre-Implementation 295,000 295,000 Recycled Water Demonstration Projects (1) 180,000 565,000 500,000 1,245,000 Thermal Load Mitigation - Implementation 1 1,600,000 2,000,000 500,000 4,100,000 Tertiary Filtration - Phase 2 3,500,000 8,500,000 12,000,000 TOTAL CAPITAL PROJECTS $17,359,000 7,191,000 7,091,000 4,521,000 10,526,000 46,688,000 Equipment Replacement 621,000 2,179,000 1,451,000 1,096,000 1,022,000 6,369,000 Major Rehab 520,000 732,000 1,842,000 357,000 182,000 3,633,000 Major Capital Outlay - - - - - - TOTAL ASSET MANAGEMENT 1,141,000 2,911,000 3,293,000 1,453,000 1,204,000 10,002,000 TOTAL CAPITAL IMPROVEMENTS $18,500,000 $10,102,000 $10,384,000 $5,974,000 $11,730,000 $56,690,000 Note: (1) The funding for new projects is allocated from the Thermal Load Implementation 1 budget plan. Plant Performance Improvements ASSET MANAGEMENT EXHIBIT 13 Regional Wastewater 5-Year Capital Programs Biosolids Management Non-Process Facilities and Facilities Planning Conveyance Systems CAPITAL PROJECT DETAIL Metropolitan Wastewater Management Commission Capital Improvement Program Page 45 FY 19-20 BUDGET AND CIP POPLAR HARVEST MANAGEMENT SERVICES (P80083) 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. Management of poplars is anticipated to become a Eugene Operations duty in FY 22/23. Status: 65% complete. MU-1 was replanted in 2016. MU-2 was replanted in 2018-19. 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, including biosolids and recycled water management strategies. 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. Improvement SDC Eligibility: 22.2% Estimated Project Cost: $1,857,000 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 = $435,573; FY 18-19 = $118,486; FY 19-20 = $425,000; FY 20-21 = $230,000; FY 21-22 = $175,000; Expenditure/Category: Prior Years 2018-19 Est. Act.2019-20 2020-21 2021-22 2022-23 2023-24 Total Design/Construction $908,514 $118,486 $425,000 $230,000 $175,000 $0 $0 $1,857,000 Other $0 $0 $0 $0 $0 $0 $0 $0 Total Cost $908,514 $118,486 $425,000 $230,000 $175,000 $0 $0 $1,857,000 Metropolitan Wastewater Management Commission Capital Improvement Program Page 46 FY 19-20 BUDGET AND CIP FACILITY PLAN ENGINEERING SERVICES (P80090) Description: Engineering services for analysis, project definition, cost estimating, and general consultation regarding the 20-Year Facilities Plan. Status: Work on the preliminary phase of a multi-phase stormwater master planning effort continued in FY 18-19. In addition, the performance of the Glenwood pump station was further evaluated. 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. Improvement SDC Eligibility: N/A Estimated Cost: $1,646,000 Estimated Cash Flow: FY 12-13 = $36,690; FY13-14 = $146,491; FY 14-15 = $67,453; FY 15-16 = $36,775; FY 16-17 = $59,823; FY 17-18 = $32,367; FY 18-19 = $130,943; FY 19-20 = $90,000; FY 20-21 = $0; FY 21-22 = $0; FY 22-23 = $105,000; FY 23-24 = $110,000; FY 24-25 = $115,000; FY 25-26 = $115,000; FY 26-27 = $120,000; FY 27-28 = $120,000 Expenditure/Category: Prior Years 2018-19 Est. Act.2019-20 2020-21 2021-22 2022-23 2023-24 Total Design/Construction $0 $0 $0 $0 $0 $0 $0 $0 Other $615,057 $130,943 $90,000 $0 $0 $105,000 $110,000 $1,051,000 Total Cost $615,057 $130,943 $90,000 $0 $0 $105,000 $110,000 $1,051,000 Metropolitan Wastewater Management Commission Capital Improvement Program Page 47 FY 19-20 BUDGET AND CIP RESILIENCY PLANNING (P80096) 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. This work will result in recommendations for future capital projects to increase the resiliency of the MWMC’s critical infrastructure. Status: This planning effort anticipated to be completed by fall of 2019. 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 began in FY 17-18. Improvement SDC Eligibility: 0% Estimated Project Cost: $739,000 Estimated Cash Flow: FY 18-19 = $651,000; FY 19-20 = $88,000 Expenditure/Category: Prior Years 2018-19 Est. Act.2019-20 2020-21 2021-22 2022-23 2023-24 Total Design/Construction $0 $0 $0 $0 $0 $0 $0 $0 Other $0 $651,000 $88,000 $0 $0 $0 $0 $739,000 Total Cost $0 $651,000 $88,000 $0 $0 $0 $0 $739,000 Metropolitan Wastewater Management Commission Capital Improvement Program Page 48 FY 19-20 BUDGET AND CIP RENEWABLE NATURAL GAS (RNG) UPGRADES (P80095) 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: Completed the pre-design and design phases and began the construction phase. Executed an interconnection agreement with NW Natural and began negotiations on an off-take agreement with Trillium CNG. Justification: Full utilization of the MWMC’s biogas. Project Driver: Currently, the WPCF can only utilize approximately 66% of the biogas produced with the remaining 34% being flared as a waste product. Project Trigger: Commission approval of full project implementation by early 2020. Improvement SDC Eligibility: N/A Estimated Project Cost: $9,670,000 Estimated Cash Flow: FY-17-18 = $258,334; FY 18-19 = $3,346,666; FY 19-20 = $6,065,000 Expenditure/Category: Prior Years 2018-19 Est. Act.2019-20 2020-21 2021-22 2022-23 2023-24 Total Design/Construction $258,334 $3,346,666 $6,065,000 $0 $0 $0 $0 $9,670,000 Other $0 $0 $0 $0 $0 $0 $0 $0 Total Cost $258,334 $3,346,666 $6,065,000 $0 $0 $0 $0 $9,670,000 Metropolitan Wastewater Management Commission Capital Improvement Program Page 49 FY 19-20 BUDGET AND CIP DECOMMISSION WPCF ONSITE LAGOON (P80093) Description: This project decommissions the existing biosolids lagoon at the Water Pollution Control Facility (WPCF). Status: As of January 2019: The design package is being finalized for the bidding phase. The lagoon decommissioning onsite contractor work is anticipated for summer of 2019. 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 = $234; FY 18-19 = $861,312; FY 19-20 = $4,700,000 Expenditure/Category: Prior Years 2018-19 Est. Act.2019-20 2020-21 2021-22 2022-23 2023-24 Total Design/Construction $238,688 $861,312 $4,700,000 $0 $0 $0 $0 $5,800,000 Other $0 $0 $0 $0 $0 $0 $0 $0 Total Cost $238,688 $861,312 $4,700,000 $0 $0 $0 $0 $5,800,000 Metropolitan Wastewater Management Commission Capital Improvement Program Page 50 FY 19-20 BUDGET AND CIP CLASS A DISINFECTION FACILITIES (P80098) Description: Provides disinfection facilities needed (along with filtration provided by existing facilities) to achieve Class A standards for pilot recycled water uses on and off MWMC sites. Includes the design, construction and permitting of Class A recycled water disinfection facilities. Status: Preliminary design phase. Justification: Class A recycled water is necessary or more appropriate 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. Improvement SDC Eligibility: 26.1% Estimated Project Cost: $2,304,000 Estimated Cash Flow: FY 18-19: $4,000; FY 19-20 = $2,300,000 Expenditure/Category: Prior Years 2018-19 Est. Act.2019-20 2020-21 2021-22 2022-23 2023-24 Total Design/Construction $0 $4,000 $2,300,000 $0 $0 $0 $0 $2,304,000 Other $0 $0 $0 $0 $0 $0 $0 $0 Total Cost $0 $4,000 $2,300,000 $0 $0 $0 $0 $2,304,000 Metropolitan Wastewater Management Commission Capital Improvement Program Page 51 FY 19-20 BUDGET AND CIP AERATION BASIN IMPROVEMENTS – PHASE 2 (P80100) 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). Improvement SDC Eligibility: 58.7% Estimated Project Cost: $16,500,000 Estimated Cash Flow: FY 19-20 = $985,000; FY 20-21 = $1,000,000; FY 21-22 = $15,000; FY 22-23 = $0; FY 23-24 = $1,500,000; FY 24-25 = $6,500,000; FY 25-26 = $6,500,000 Expenditure/Category: Prior Years 2018-19 Est. Act.2019-20 2020-21 2021-22 2022-23 2023-24 Total Design/Construction $0 $0 $1,000,000 $1,000,000 $0 $0 $1,500,000 $3,500,000 Other $0 $0 $0 $0 $0 $0 $0 $0 Total Cost $0 $0 $1,000,000 $1,000,000 $0 $0 $1,500,000 $3,500,000 Metropolitan Wastewater Management Commission Capital Improvement Program Page 52 FY 19-20 BUDGET AND CIP ADMINISTRATION BUILDING IMPROVEMENTS (P80104) Administration/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 2018-2019 construction that is underway to build a new laboratory and expand the existing maintenance building. Status: Due to high construction costs on bids received March 14, 2017, the MWMC proceeded with a reduced project scope and awarded a construction contract to build a new laboratory and expand the existing maintenance building. The new lab and maintenance building space is planned to be occupied in 2019. As part of this project, 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 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 1980s. 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 = $300,000; FY 20-21 = $700,000; FY 21-22 = $2,200,000; FY 22-23 = $1,800,000 Expenditure/Category: Prior Years 2018-19 Est. Act.2019-20 2020-21 2021-22 2022-23 2023-24 Total Design/Construction $0 $0 $1,000,000 $0 $4,000,000 $0 $0 $5,000,000 Other $0 $0 $0 $0 $0 $0 $0 $0 Total Cost $0 $0 $1,000,000 $0 $4,000,000 $0 $0 $5,000,000 Metropolitan Wastewater Management Commission Capital Improvement Program Page 53 FY 19-20 BUDGET AND CIP OPERATIONS & MAINTENANCE (O&M) BUILDING IMPROVEMENTS (P80085) 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). Status: As of January 2019 construction workers continue to build a new laboratory and expand the existing maintenance building. The maintenance building expansion is planned to be occupied in early 2019. Construction contract work 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 1980s. 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 = $7,138,782; FY 18-19 = $9,124,165; FY 19-20 = $800,000 Expenditure/Category: Prior Years 2018-19 Est. Act.2019-20 2020-21 2021-22 2022-23 2023-24 Total Design/Construction $8,875,835 $9,124,165 $800,000 $0 $0 $0 $0 $18,800,000 Other $0 $0 $0 $0 $0 $0 $0 $0 Total Cost $8,875,835 $9,124,165 $800,000 $0 $0 $0 $0 $18,800,000 Metropolitan Wastewater Management Commission Capital Improvement Program Page 54 FY 19-20 BUDGET AND CIP RIPARIAN SHADE CREDIT PROGRAM (P80080) 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 the 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. Status: On-going with new credit projects in development. Justification: The Pure Water Partners program is the MWMC’s leading and most cost-effective strategy for thermal load compliance. The MWMC formally started the Pure Water Partners program in FY18-19 under the EWEB IGA and contracting of a long-term credit program manager for project implementation. Sponsorship pilot projects have ongoing contractual obligations through the year 2034 to maintain the sites enrolled for regulatory credit. 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. Improvement SDC Eligibility: 26.1% Estimated Project Cost: $2,632,000 Estimated Cash Flow: FY12-13 = $84,621; FY13-14 = $77,394; FY14-15 = $79,245; FY15-16 = $102,191; FY16-17 = $58,948; FY17-18 = $0; FY 18-19 = $94,782; FY 19-20 = $416,000; FY 20-21 = $416,000; FY 21-22 = $416,000; FY 22-23 = $416,000; FY 23-24 =$416,000; FY 24-25 = $10,000; FY 25-26 = $10,000; FY 26-27 = $10,000; FY 27-28 = $10,000; FY 28-29 = $10,000 Expenditure/Category: Prior Years 2018-19 Est. Act.2019-20 2020-21 2021-22 2022-23 2023-24 Total Design/Construction $407,218 $94,782 $416,000 $416,000 $416,000 $416,000 $416,000 $2,582,000 Other $0 $0 $0 $0 $0 $0 $0 $0 Total Cost $407,218 $94,782 $416,000 $416,000 $416,000 $416,000 $416,000 $2,582,000 Metropolitan Wastewater Management Commission Capital Improvement Program Page 55 FY 19-20 BUDGET AND CIP THERMAL LOAD MITIGATION: PRE-IMPLEMENTATION (P80062) Description: This project comprises the three-phase planning study for thermal load mitigation strategies, including recycled water use and riparian shading projects. The study also addresses regulatory strategy development related to the temperature standard implementation and NPDES permit renewal conditions. The current Phase 3 study effort further develops the recommendations of the Phase 2 study to implement the riparian shade credit program; Class A recycled water demonstration, and increased recycled water use and storage at the MWMC’s BMF/BRS. Phase 3 work also provides analysis of other potential future thermal load mitigation strategies including formal expansion of recycled water distribution, wetland and stream flow augmentation, and credit for watershed partnerships for cold water function. Status: 90% complete –the first two of three study phases are complete and Phase 3 study is scheduled for completion in FY 19-20. 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. Final analyses and recommendation plans will guide permit compliance strategies. Project Driver: Long-term need for NPDES permit temperature standard strategies related to future thermal load compliance requirements. Project Trigger: NPDES permit renewal readiness. Improvement SDC Eligibility: 26.1% Estimated Project Cost: $1,007,000 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 = $45,194; FY 18-19 = $171,424; FY 19-20 = $295,000 Expenditure/Category: Prior Years 2018-19 Est. Act.2019-20 2020-21 2021-22 2022-23 2023-24 Total Design/Construction $0 $0 $0 $0 $0 $0 $0 $0 Other $540,576 $171,424 $295,000 $0 $0 $0 $0 $1,007,000 Total Cost $540,576 $171,424 $295,000 $0 $0 $0 $0 $1,007,000 Metropolitan Wastewater Management Commission Capital Improvement Program Page 56 FY 19-20 BUDGET AND CIP RECYCLED WATER DEMONSTRATION PROJECTS (P80099) Description: This project provides for the design, construction, permitting, and implementation of recycled water demonstration site needs beyond the production and distribution of Class A recycled water for use. Project may entail onsite upgrades and retrofits to allow the use of recycled water in partnership with end-users and point of delivery plumbing and controls. Status: Preliminary design phase. Justification: Demonstration of the 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. Improvement SDC Eligibility: 26.1% Estimated Project Cost: $1,245,000 Estimated Cash Flow: FY 18-19 = $0; FY 19-20 = $180,000; FY 20-21 = $565,000; FY 21-22 = $500,000 Expenditure/Category: Prior Years 2018-19 Est. Act.2019-20 2020-21 2021-22 2022-23 2023-24 Total Design/Construction $0 $0 $180,000 $565,000 $500,000 $0 $0 $1,245,000 Other $0 $0 $0 $0 $0 $0 $0 $0 Total Cost $0 $0 $180,000 $565,000 $500,000 $0 $0 $1,245,000 Metropolitan Wastewater Management Commission Capital Improvement Program Page 57 FY 19-20 BUDGET AND CIP COMPREHENSIVE FACILITIES PLAN UPDATE (P80101) Description: This will be the first MWMC Comprehensive Facilities Plan Update since the 2004 MWMC Facilities Plan. This update will include stormwater planning for the WPCF; NPDES permit renewal, SDC assessment and facilities planning technical services to assess capital improvement requirements over a 20-year planning horizon. The 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. A portion of the planned budgeted ($130,000) was moved forward to FY 18-19 to implement the second phase of stormwater planning for the WPCF site following the first phase that was implemented under the Facilities Plan Engineering Services (P80090) project. Status: Stormwater planning is underway in FY 18-19. The bulk of the planned budget is reserved for future implementation of planning work in response to the MWMC’s anticipated NPDES permit renewal. 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: $2,210,000 Estimated Cash Flow: FY 18-19 = $130,000; FY 19-20 = $0; FY 20-21 = $2,080,000 Expenditure/Category: Prior Years 2018-19 Est. Act.2019-20 2020-21 2021-22 2022-23 2023-24 Total Design/Construction $0 $0 $0 $0 $0 $0 $0 $0 Other $0 $130,000 $0 $2,080,000 $0 $0 $0 $2,210,000 Total Cost $0 $130,000 $0 $2,080,000 $0 $0 $0 $2,210,000 Metropolitan Wastewater Management Commission Capital Improvement Program Page 58 FY 19-20 BUDGET AND CIP GLENWOOD PUMP STATION UPGRADE (P80064) Description: Expand Glenwood pump station capacity to accommodate growth and meet Oregon Department of Environmental Quality (DEQ) wastewater pump station design requirements. The pump station was designed with stalls for additional pumps. Two pumps are currently installed with space for two additional pumps to be added when flow to the pump station increases with development of the Glenwood and Laurel Hills basins. Status: Continuing to monitor the Glenwood pump station operations and performance. 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: Oregon DEQ wastewater pump station redundancy requirements. Project Trigger: Peak wet weather instantaneous flow reaches 80 percent of the pump station firm capacity. Improvement SDC Eligibility: 38.2% Estimated Project Cost: $1,300,000 Estimated Cash Flow: FY 20-21 = $1,250,000; FY 21-22 = $50,000 Metropolitan Wastewater Management Commission Capital Improvement Program Page 59 FY 19-20 BUDGET AND CIP THERMAL LOAD MITIGATION – IMPLEMENTATION 1 (P80063) Description: This project initiates related projects as they are specifically developed (such as the Riparian Shade Credit Program (P80080) and the recycled water demonstration projects (P80098 and P80099), and will implement other thermal load mitigation projects anticipated as part of a multi-pronged compliance strategy. Anticipated projects include recycled water use expansion at MWMC facilities, extension of recycled water services to community partners, and other strategies to reduce the MWMC’s total thermal load impact. The recycled water projects may include additional treatment, disinfection, pumping, pipeline, and distribution/irrigation systems. Status: Planning study underway under Project P80062 for expanded recycled water storage and use at the MWMC’s BMF/BRS/Biocycle Farm facilities, as well as for other potentially feasible projects. 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 value. 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. Improvement SDC Eligibility: 26.1% Estimated Project Cost: $6,610,000 Estimated Cash Flow: FY 13-14 = $1,531; FY 14-15 = $7,871; FY 15-16 = $9,689; FY 16-17 = $4,734; FY 17-18 = $53,911; FY 18-19 = -$47,736; FY 19-20 = $0; FY 20-21 = $1,600,000; FY 21-22 = $2,000,000; FY 22-23 = $500,000; FY 23-24 = $0; FY24-25 = $1,240,000; FY 25-26 = $1,240,000 Expenditure/Category: Prior Years 2018-19 Est. Act.2019-20 2020-21 2021-22 2022-23 2023-24 Total Design/Construction $77,736 -$47,736 $0 $1,600,000 $2,000,000 $500,000 $0 $4,130,000 Other $0 $0 $0 $0 $0 $0 $0 $0 Total Cost $77,736 -$47,736 $0 $1,600,000 $2,000,000 $500,000 $0 $4,130,000 Metropolitan Wastewater Management Commission Capital Improvement Program Page 60 FY 19-20 BUDGET AND CIP TERTIARY FILTRATION - PHASE 2 (P80102) 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 22-23. 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 product. 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: $16,500,000 Estimated Cash Flow: FY 22-23 = $1,500,000; FY 23-24 = $6,000,000; FY 24-25 = $8,800,000; FY 25-26 = $200,000 Expenditure/Category: Prior Years 2018-19 Est. Act.2019-20 2020-21 2021-22 2022-23 2023-24 Total Design/Construction $0 $0 $0 $0 $0 $3,500,000 $8,500,000 $12,000,000 Other $0 $0 $0 $0 $0 $0 $0 $0 Total Cost $0 $0 $0 $0 $0 $3,500,000 $8,500,000 $12,000,000