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HomeMy WebLinkAboutMWMC Agenda Packet THE FULL PACKET IS POSTED ON THE WEBSITE www.mwmcpartners.org MWMC MEETING AGENDA Friday, July 9th, 2021 7:30 AM – 9:30 AM (PDT) The MWMC Meeting will be held remotely via computer or phone. To join the meeting by phone dial: 877-853-5247; Access Code: 649 567 0749 7:30 – 7:35 I. ROLL CALL 7:35 – 7:40 II. CONSENT CALENDAR a. MWMC 6/11/21 Minutes Action Requested: By motion, approve the Consent Calendar 7:40 – 7:45 III. PUBLIC COMMENT: Public comment can be submitted by email to jbrennan@springfield-or.gov or by phone 541-726-3694 by 5 PM July 8th, 2021 or made at the meeting. All public comments need to include your full name, address, if you are representing yourself or an organization (name of organization), and topic. 7:45 – 8:05 IV. ADMINISTRATIVE & OPERATIONS BUILDING UPGRADES P80104 UPDATE…………. ………………………………………………………………….………Mark Van Eeckhout Action Requested: Approve, by motion, Resolution 21-06 8:05 – 8:35 V. BIOCYCLE FARM MU3 HARVEST CONTRACTING………………………...…Todd Miller Action Requested: Approve, by motion, Resolutions 21-07 and 21-08 8:35 – 8:50 VI. CREDIT PROGRAM MANAGER CONTRACT AMENDMENT………………….Todd Miller Action Requested: Informational and Discussion 8:50 – 9:10 VII. NPDES PERMIT UPDATE…………………………..……Todd Miller and Bryan Robinson Action Requested: Informational and Discussion 9:10 – 9:30 VIII. MWMC PARTNERSHIP VIDEO…………………………Mike McGillivray and April Miller Action Requested: Informational and Discussion 9:30 – 9:40 IX. BUSINESS FROM COMMISSION, GENERAL MANAGER, & WASTEWATER DIRECTOR 9:40 X. ADJOURNMENT MWMC MEETING MINUTES Friday, June 11th, 2021 at 7:30 a.m. Due to the Coronavirus Pandemic and Oregon Executive Order 20-16, the MWMC Meeting was held remotely via computer or phone. Meeting was video recorded. Commissioner Yeh opened the meeting at 7:30 a.m. Roll call was taken by Josi Brennan. ROLL CALL Commissioners Present Remotely: Pat Farr, Walt Meyer, Jennifer Yeh, Doug Keeler, Joe Pishioneri Commissioners Absent: Bill Inge, Peter Ruffier Staff Present Remotely: Lou Allocco, Meg Allocco, Katherine Bishop, Dave Breitenstein, Josi Brennan, Mark Van Eeckhout, Shawn Krueger, Troy McAllister, James McClendon, April Miller, Todd Miller, Michelle Miranda, Brooke Mossefin, Bryan Robinson, Loralyn Spiro, Matt Stouder, Valerie Warner, Greg Watkins Guest Present Remotely: Ron Cutter (Sr. Vice President/Public Sector Practice Leader at Brown & Brown Northwest Insurance) Legal Counsel Present Remotely: Brian Millington (Thorp, Purdy, Jewett, Urness, & Wilkinson, PC) CONSENT CALENDAR a. MWMC 5/14/21 Minutes MOTION: IT WAS MOVED BY COMMISSIONER FARR WITH A SECOND BY COMMISSIONER PISHIONERI TO APPROVE THE CONSENT CALENDAR. THE MOTION PASSED UNANIMOUSLY 5/0, WITH COMMISSIONER INGE AND COMMISSIONER RUFFIER EXCUSED PUBLIC COMMENT There was no public comment. SOFTWARE PROCUREMENT FOR CAPITAL PROGRAM Troy McAllister, Managing Civil Engineer, explained that MWMC is nearing the end of a software agreement with DLT Solutions, LLC for Constructware (Autodesk product) that is used to support the Capital Improvement Program (CIP). Staff requests Commission approval for Resolution 21-05 to negotiate and procure the use of a new software system. AGENDA ITEM IIa June 11, 2021 MWMC Minutes Page 2 of 8 In 2006, staff received advice from consultants to obtain a software package to help with the CIP and were approved to enter into a software agreement with Constructware. Constructware recently provided notice they will discontinue their product, and the MWMC’s renewal agreement will end on August 25th, 2021. Earlier this year, staff investigated and reached out to ten software companies and received request for information (RFI) responses from nine vendors. Most of the construction/project management software systems are internet cloud-based tools accessed by computer users, that are granted controlled permissions and training. Staff has three short-listed vendors under consideration based on the RFI responses, software demonstrations and other elements of a due diligence process. Staff is coordinating with Autodesk to move the old and active Constructware electronic files to another software storage tool controlled by the MWMC. That process will happen in July and August of this year. Staff has investigated potential software partnering options with other public works agencies in Eugene, Springfield, Lane County. The Capital Program team uses software for MWMC project delivery during planning, design, and construction. Staff anticipates choosing a company to have a long-term relationship, based on their performance of goods and services. Staff estimates the cost for multi-year agreement will be no more than $150,000. If there is a contract changes, staff is seeking a total procurement authority of up to $172,500. DISCUSSION: Commissioner Meyer asked once we sign up, are we paying $100,000 plus every year or is that a one-time amount? Mr. McAllister said we are mostly seeing price points below $50,000 (start-up first year). The first year will be setting up the tool and we will be seeking a multi-year software agreement such as three or four-years. MOTION: IT WAS MOVED BY COMMISSIONER MEYER TO ADOPT RESOLUTION 21-05. THE MOTION WAS SECONDED BY COMMISSIONER PISHIONERI. THE MOTION PASSED 5/0, WITH COMMISSIONER INGE AND COMMISSIONER RUFFIER ABSENT. INSURANCE RENEWAL Katherine Bishop, Environmental Services Program Manager, explained the Property Insurance for MWMC will be renewing soon. In January of 2021 the Commission approved the Liability Insurance on a calendar year basis, whereas the Property insurance is a fiscal year and on a one-year term. The costs of earthquake insurance have changed, and staff decided on the $50 million in earthquake coverage that comes with the property policy from Star Tech. Ms. Bishop introduced Ron Cutter to the Commission so he could discuss what has been taking place in the insurance market, particularly during the pandemic. Mr. Cutter stated the market has deteriorated and earthquake coverage is considerably more expensive today than what it was a year ago. The market as a whole is currently classified as a hard insurance market, and the rates are going up and capacity is shrinking. Property Insurance is cyclical, and companies are in a hard market cycle. As rates go up, Capital is sitting on the sideline and insurance companies are sitting on their hands not interested in sharing property exposures at the rate commonly obtained. As rates go up there is more Capital coming into the industry and the property market could stabilize. It all depends on the hurricane season, wildfires in the Northwest, and ice storms in Texas. Mr. Cutter was optimistic that the property market is recovering, however, for this year there is a decent increase in premium. June 11, 2021 MWMC Minutes Page 3 of 8 Ms. Bishop stated the Renewable Natural Gas project and the expansion of construction at the plant, is part of this insurance and did increase the statement of values. Those projects are spanning multiple years and now moving into the completion phase. Ms. Bishop requested by motion for the Commission to authorize and direct the MWMC executive officer to enter into agreements to secure property insurance coverage for the period of July 1st, 2021 through June 30th, 2022. MOTION: IT WAS MOVED BY COMMISSIONER PISHIONERI AND THE MOTION WAS SECONDED BY COMMISSIONER FARR. THE MOTION PASSED 5/0, WITH COMMISSIONER INGE AND COMMISSIONER RUFFIER ABSENT. PUBLIC INFORMATION PROGRAM UPDATE Loralyn Spiro, Lead Communications Coordinator and April Miller, Communications Coordinator, updated the Commission on the public information program updates. The last full update for the Public Information Program occurred at the June 2020 Commission meeting. Ms. Spiro stated the Public Information Program is guided by the MWMC Communications Plan, particularly in the Commission goal of Key Outcome #5, that is part of the annual budget. The plan was updated in 2020 based on 2019 and 2020 survey results, and the full plan was presented to the Commission at the September 2020 MWMC meeting. The plan currently has three objectives, five strategies and 20 tactics. Objectives set within Key Outcome #5  Increase community awareness so that more than 25% of those surveyed are able to identify the MWMC; up from an average of 17.5%  Increase initial favorable response regarding the MWMC to 20%; up from an average of 13%.  Improve community opinion regarding the MWMC’s performance by 10% with overall performance of 50% or better on all metrics; up from an average of 43.5%. The survey is a tactic measured and tracked in Key Outcome #5 and is tentatively scheduled in 2024 and 2025 for the next survey. The strategies and tactics support the MWMC’s mission to protect the community's health and environment by providing high quality wastewater services. Results of the strategies and tactics are from previous communication plans as well as implemented information, based on the 2019/2020 survey results. The 2021 Communications Plan contains five overarching strategies  Increase community understanding of the connection between well-managed wastewater services and a healthy local environment.  Raise awareness of the MWMC as a leader in water resources management, specifically in wastewater treatment practices and expertise.  Increase community understanding of how their behavior and practices affect the health of local waterways and what they can do to help protect our environment.  Strengthen communications by evaluating the effectiveness of strategies/tactics implemented.  Increase awareness of the importance of having clean water now and in the future, and the steps it takes to clean water. June 11, 2021 MWMC Minutes Page 4 of 8 The Program continues to include sponsorships to help build community awareness and maintains alignment with agencies and organizations with similar community goals. The format did change due to COVID-19, and participants completed some activities on their own timeframe instead of in person. Changes to the format did impact the MWMC sponsorships, so they had to scale back. Sponsorships  EWEB Run to Stay Warm  Lane County Fair - Summer Midway Movies  Lane County Home and Garden Show  McKenzie River Trust Get Outdoors Day - River Exploration Days at Green Island  SUB Light of Liberty Celebration - Tastes of Summer  Willamette Riverkeeper - Willamette River Festival Ms. Spiro shared that Willamette Riverkeeper’s Willamette River Festival is a new and 6th sponsorship for the MWMC. As part of sponsorship, there are two tours scheduled for the wastewater plant on Tuesday August 24th from 8:00am to noon, and then again on Thursday August 26th from 5:30pm to 7:30pm. Willamette Riverkeeper will handle the signups and manage the list. The MWMC is excited to prepare for these tours and get back to the pre-COVID-19 activities, and fun giveaways will be handed out during the tour. Additionally, during the Willamette River Festival on August 28th there is a self-guided tour with activation stops along the river with fun activities for kids and adults. The MWMC will have a booth just outside the plant along the path at the junction with the Owosso Bridge. The end results will be reported in next year's annual report. Clean Water University is tracked in Key Outcome #5 and did shift to online in the 2020 and 2021 school year. The effort in building the online version will not be a onetime use, and staff will use it for schools that do not get picked n the lottery. The in-person version is scheduled to take place in the Fall of 2021, and the two-day event will be subject to any COVID-19 guidelines in place at the time. Staff welcomes the Commission to participate in this fun event. Each year the MWMC partners with the City of Eugene and City of Springfield to produce a rate brochure that is mailed to all EWEB and SUB customers. The brochure includes information on how wastewater and stormwater fees are structured and calculated within each city. In anticipation for sponsoring McKenzie River Trust Living River Exploration Days at Green Island, staff updated the signs in the portable toilets. People will be able to scan a barcode to check out the MWMC website and have reading material if needed. The updated signs will be used in the portable toilets at the 2021 Lane County Fair. Ms. Miller discussed the MWMC’s social media platforms, and the ways staff have been working to grow the social media presence over the past several years. The public can find MWMC on Facebook, Twitter, and Instagram by following @mwmcpartners. Staff is regularly posting various updates, different types of media, videos, photos, Commission updates and pollution prevention tips on all three platforms. The ticket giveaway through the Lane County Fair Summer Midway Movie Series last year resulted in a significant increase in followers. Three overall factors that contributed to the increase in followers last year were the ticket giveaway, continued messaging of what not to flush in response to COVID-19, the difficulties in finding toilet paper during COVID-19, and the increased consistency of weekly posting on all platforms. In FY20-21 (to date) staff saw a 66% increase in Facebook followers, 23% increase in Instagram followers, and an 8% increase in Twitter followers. Currently Facebook has 638 followers, June 11, 2021 MWMC Minutes Page 5 of 8 Twitter has 173 followers and Instagram has 245 followers. The response from various partners and members has been positive, and is a tactic tracked in Key Outcome #5. Another tactic is the E-Newsletter that is sent out monthly. Brooke Mossefin refreshed the design in 2020 and although there have been various formatting changes over the years the focus has remained on projects, staff and MWMC successes. Shorter stories and linking to the website to drive traffic there is a main goal as well as keeping information within the E-Newsletter as digestible as possible. There are currently 262 subscribers between the general mailing list and RNG Project mailing list. The average open rates throughout the past 10 months has been 35% compared to the industry standard of 28%, and the average click through rate is 18% compared to the industry standard of 4%. Even with positive open and click rates, staff continues to look for ways to improve. The MWMC website continues to be a robust communications tactic. Staff regularly updates the website with different information resources, and works with project managers to build larger, new webpages. Staff worked with the legal team to obtain ownership of the domain name that was previously obtained through a reseller, and the Certificate for Communications Security was implemented. With those website improvements in place staff can start working on other improvements, such as search engine optimization and the Newsroom that is included in the 2021 Communications Plan. The Annual Report is sent out each Spring to highlight past year accomplishments as well as upcoming initiatives and financials to partner agencies and the community. The 2020 Annual Report was created using a new platform, Adobe Spark. This gave staff the ability to include large, full screen imagery and graphics while using a greater variety of formatting depending on the best format for that specific content. The report links back to the MWMC website for more information, encouraging subscriptions to the E-Newsletter. The 2020 report and reports from the past several years are available on a newly created Annual Report webpage, accessible under quick links to provide more context about the tactic. The MWMC Partnership video is a high priority tactic focusing on the importance of clean water, how the community is connected to water, and the community wide watershed approach required to protect our waterways. The MWMC continues to be a strong partnership between Eugene, Springfield, and Lane County. There were 15 various community leaders interviewed that included elected Commissioners, and staff is now in the scripting and editing phase of the project. Focus for Remainder of 2021  Finalize the Partnership video and provide the Commission a preview during the July meeting.  Start providing tours again at the regional wastewater treatment plant and biosolids management facility following COVID guidelines.  Implement sponsorship benefits for Lane County Fair (July 21-25), Willamette River Festival (August 21-28), and Run to Stay Warm (TBD).  Hold CWU in-person this fall at the regional wastewater treatment plant following COVID guidelines.  Build out pollution prevention outreach collateral and campaigns for increased awareness and participation.  Increase MWMC online digital presence including Search Engine Optimization and advertising. DISCUSSION Commissioner Farr said this presentation is always the highlight of the year because we have the opportunity to help people understand how important the services provided are. When people understand that, they clearly are in favor of the work done by the staff and facilities. Commissioner Farr June 11, 2021 MWMC Minutes Page 6 of 8 was highly impressed with the work Ms. Spiro does, and highly impressed with the outreach. Ms. Spiro said she wanted to reiterate this has been a team effort with help from Ms. Miller, Brooke Mossefin and Mike McGillivray. Everyone deserves full team credit for this effort, because as you can imagine it takes a team. Commissioner Keeler had a question regarding the brochure which talks about how we communicate our rate structures to our rate payers. Commissioner Keeler had not seen that yet, but imagined it describes the breakdown of things. Does it also describe the benefits and give a highlight snapshot of what the money is being used for? Ms. Spiro said yes, it covers benefits for stormwater and wastewater since it is a joint brochure. Another new tactic we have implemented this year is building out the Commission communication memos that are sent through the monthly packets. We are currently working on the rate brochure for Eugene and Springfield along with the communication memo to give additional information. KEY OUTCOME 2: FISCAL MANAGEMENT Katherine Bishop, Environmental Services Program Manager explained Key Outcome #2 and requested the Commission to provide input and direction for staff. Looking at the Budget and Key Outcomes in January, a few Commission members requested to see more far reaching goals that better aligned with the Key Outcomes. Key Outcome #1 was presented at the May MWMC monthly meeting and Key Outcome #2 is a smaller and more straightforward outcome directly related to our financial services. After reviewing the strategic planning documents by the Commission, along with staff, these outcomes are intended for effective, efficient, and resilient fiscal management. Maintaining sound financial practices and ensuring the rates and rate changes are planned, moderate, and incremental are two outcomes that are rephrased. The focus for this outcome is avoiding rate spikes. Valerie Warner, MWMC Accountant explained the third option for Key Outcome #2, which is debt to equity ratio. After taking a fresh look at these key indicators, Ms. Warner searched the internet to find the best practices in terms of key financial indicators for utility agencies and came up with several possibilities. Ms. Warner and Lou Allocco reviewed liquidity debt service coverage, return on base rate, cost of Capital and debt to equity ratio. They took into consideration if these items were pertinent for MWMC and if the items could be measured and reported without performing a lot of extra work. After evaluating the possibilities, the debt to equity ratio was recommended to report because debt to equity ratio is a fundamental indicator of financial performance for all industries. This is particularly important for utilities to track because utilities often have a higher ratio from hefty infrastructure costs. The MWMC currently has a debt to equity ratio of .22%, and Clean Water Services has a ratio of .24%. EWEB reports a ratio of .59% for their Water system, and .86% for their electrical system. A desirable target for this outcome is suggested to be .3%. DISCUSSION: Commissioner Farr thanked Ms. Warner for the presentation and comparing our .22% to EWEB, because it gives us a good indicator. However, it was said because of the huge infrastructure typically in place with a water utility, such as ours, the numbers are lower. With our numbers at .22%, somebody said we should be comfortable with that, and you say you are not. Can you explain that a little bit more? Ms. Warner said .22% is our current ratio. We are sitting on some amount of cash savings, and when we do our next projects, there will be a discussion on whether we use the money saved up or June 11, 2021 MWMC Minutes Page 7 of 8 whether we have to borrow. Keep in mind every time we borrow money we add to both sides of those equations. Commissioner Farr said he agrees with the target of .3%. Ms. Warner said the guidance states anything under .5% is considered excellent and anything over 1.0% might be considered troublesome. Commissioner Meyer said while the factor presented is interesting and we look good compared to EWEB, there is a concern. By arbitrarily setting a factor we could be hamstringing future Commissions if something comes along that demands us to build something, that requires a fair amount of borrowing. For instance, if there is an upcoming new requirement and we need to expand the plan to take care of that requirement, we might find ourselves quickly bumping up against that. Even though what you said is sort of true about borrowing $100 million dollars with having $100 million new assets, that in fact does affect the ratio. That increment of borrowing and asset has a ratio of 1% and as you average it in, it will bump the overall increment a bit. Commissioner Meyer was not convinced that debt to equity ratio is a good indicator. The ability to fund that new debt within the rate structure is important. We currently are operating on rates that allow us to save money, to then put into Capital funds. If we have a future project, we can use some of that rate to pay debt service and do substantial projects without having large rate increases. If anything above .5% is excellent, why would we set something that might hamstring future Commissions at .3%, if .4% and .5% are considered excellent? Ms. Warner said we know where we are, and we know the cutoff to be considered excellent. It could certainly be .4% or .5%. because the number is not fixed. If the Commission needed financing for a large project and it was going up to .55%, the Commission would simply change the target at that time. It is good to have it here, regardless of where the target lands because that means we are keeping an eye on it. Commissioner Pishioneri said future Commissions are not bound with anything we say because these future Commissions have the authority to change whatever we have said. Commissioner Pishioneri was okay with the statement to maintain sound financial practices per the MWMC financial plan to ensure rates and rate changes are planned, moderate and incremental. A percentage would not need to be attached to it. As far as a debt to equity ratio, who knows how many people would look at that and put too much credence on it. Mr. Stouder said one thing for the Commission to keep in mind as they ask to view these key outcomes is, having the indicators better align is the overall outcome. This outcome in particular has a robust financial plan policy which has been talked about at length in the past couple of years. It is a classic case of how much information do we put in the indicators, that will then go in the budget document. We have a lot of information, supporting documents and financial plans describing in detail how staff will achieve and maintain effective and efficient fiscal management. This is a good attempt for staff to try to add an indicator or two, then get direction on what we should take and move forward with. Some people are fine with Key Outcome #2 and a couple people are lukewarm. If there is any further direction, we can use that to modify the outcome and review it again in the future. Commissioner Keeler said of the three listed here in the discussion section, the one that is appealing is number two. There is a sense of two facets of fiscally sound practices and executing those, but then there is also the element of transparency. As a transparent public agency, number two is more desirable as it deals with the impact of our rates on our ratepayers. Concerning the current events in the economy and financial world, we could be on the threshold or already past the threshold of returning to some significant inflation. Chartering ourselves to avoid wild swings in what our ratepayers are paying, and also observing how we can improve the communication of our directions is useful. Possibility at some point we could construct an outcome or goal around that. June 11, 2021 MWMC Minutes Page 8 of 8 Commissioner Yeh stated she did not have a problem with any of these and agreed with Commissioner Keeler on liking the second one the most. There was a lot of hard work and research that went into bringing these forward and it is very much appreciated. BUSINESS FROM GENERAL MANAGER Matt Stouder stated the MWMC has a couple of logging contractors they plan to work with in respect to the poplar harvest, and staff have a path forward for the harvest. Details are currently being sorted out, and staff are looking into Commission authorization at the MWMC July 9th meeting to get approval. If staff need approval sooner, they will discuss that with the Commission and also bring the topic to the next MWMC meeting. DISCUSSION: Commissioner Pishioneri stated that himself and Commissioner Meyer were given an amazing tour of the RNG facility at the MWMC plant and wanted to thank everyone and recommended the other Commissioners to take the tour. Mr. Stouder stated the credit goes to Mark Van Eeckhout, as he knows all the details on that. The ACWA conference will hopefully be the last virtual event this year. This will be held on July 28th and is a one day, five-hour event. The details will be forwarded to the Commission. Staff is hoping the MWMC monthly meeting will be in-person at the City Hall by September, along with technology for people to attend virtually and in-person. Mr. Stouder was hoping one or two Commissioners would join him at the City Hall for the July MWMC meeting so he could work out the technology kinks. BUSINESS FROM WASTEWATER DIRECTOR Dave Breitenstein said May was a month of audits for his division. Two external audits were conducted, and the Environmental Management System was one of them. The division has been ISO 14001 certified for 21 years and was due for a three-year recertification audit. An auditor used MS Teams to communicate virtually, and a full audit of the program was completed to meet the requirement for the three-year recertification. Thanks to the hard work by staff, the audit came back with flying colors. There were no nonconformances identified for the standard and no recommendations for improvement. There was a recommendation to have training on how to complete root cause analysis when staff discovers things, that are nonconformity and need correction right away. The second audit conducted was on the laboratory and was the first audit that focused specifically on the laboratory. Lab supervisor Melanie Ryan brought in a third-party assessor expert who was a prior Director of the Oregon Laboratory Accreditation Program. The laboratory has never encountered an audit and staff is waiting to receive the final report, but the results have been good so far. The auditor characterized the program as in the top 10% of laboratories he has reviewed. Commissioner Yeh adjourned the meeting at 9:00am ______________________________________________________________________________ M E M O R A N D U M DATE: July 1, 2021 TO: Metropolitan Wastewater Management Commission (MWMC) FROM: Mark Van Eeckhout, Civil Engineer SUBJECT: Administrative and Operations Building Upgrades P80104 Update ACTION REQUESTED: Approval of Resolution 21-06 ISSUE Staff is requesting Commission approval of Resolution 21-06 (Att. 2), which authorizes staff to enter into a contract with Jacobs Engineering for architectural and engineering (AE) services for the Administration and Operations Building Upgrades Project (P80104). BACKGROUND The current support facilities at the Water Pollution Control Facility (WPCF) were originally constructed in the early 1980’s, and since that time the use of the support facilities have changed with modifications in the workforce, advancing technology, and regulatory changes. A recent effort (2017) was led to upgrade these support facilities to include the existing Administrative and Operations Building during the Operations and Maintenance Building Improvements Project (P80085). This project ultimately designed and bid scope including renovations and additions to the Maintenance Building, Administrative/Operations Building, and a new Water Quality Lab. Two bids were received for this work from Corp Inc., and Wildish Building. Costs came in above the engineers estimate. The Administrative/Operations Building was listed as a deductive alternate on the bid documents. With the two bids coming in above engineers estimates, a decision was made, and direction was given by the Commission to deduct the Administrative/Operations Building work and defer it to a later time. This deferred work is encompassed in the Administrative and Operations Upgrades Project (P80104) and is approved in the capital program budget for $7.6 million. AGENDA ITEM IV Memo: Administrative and Operations Building Upgrades P80104 Update July 1, 2021 Page 2 of 3 In addition to the high construction costs in 2017, there was an understanding by staff and the Commission that changes may be necessary to the Administrative and Operations Building based on findings from the resiliency study by Carollo Engineers P80096. The 2019 resiliency study recommended that the Administrative/Operations Building be usable after a natural disaster such as a Cascadia subduction zone earthquake. Staff have created and issued a qualifications-based Request for Proposal (RFP) seeking consultant services related to this budgeted project. We have received and scored proposals from three consulting firms: (MWA Architects, PIVOT Architects, and Jacobs Engineering). Jacobs Engineering was scored the highest of the three proposers and staff issued a Notice of Intent to Award (Att. 1). The anticipated project schedule is as follows. SCHEDULE DATE Release of RFP March, 2021 Deadline for submission of Proposals April, 2021 Evaluation and scoring of Proposals May, 2021 Contract Negotiation (Professional Services) May-June 2021 Commission Approval of MWMC Consultant Contract July 2021 PLANNING SCHEDULE Assume 6 months & update the Commission Estimate: Jul. 2021 to Feb. 2022 DESIGN SCHEDULE Assume 10 -12 months Estimate: Feb. 2022 to Dec. 2022 BIDDING & CONSTRUCTION SCHEDULE Assume 16 months Estimate: Jan. 2023 to Apr. 2024 DISCUSSION The RFP scope for the Administrative and Operations Upgrades Project was for professional consulting services including four phases of work (Planning, Design, Bidding and Construction Support Services). Since the existing building houses Operations and the main controls system for the WPCF and some associated City of Eugene service connections, a concerted effort is being made during the planning phase to understand how these systems may be affected by construction. When the design team understands these interrelations, interim working conditions and key connection points for continued operation of the plant will be designed for construction. Jacobs will be contracted to begin the project by executing the planning and 30% design portion of the work. This will include the review of past work products (MWA Architects Plans and Resiliency Plan), review of current work practices (Post COVID-19), development of 2-3 alternatives for Commission review, and help in scoring and selection of the leading alternative to move forward into design. Memo: Administrative and Operations Building Upgrades P80104 Update July 1, 2021 Page 3 of 3 Following the selection of the leading alternative to move forward into design, the project will plan to amend the contract with Jacobs to include refinement of their scope and fees. Design costs can vary, but on average they are roughly 15% of the final construction costs. However, this is dependent on the overall scope selected in the final building alternative. We hope that the current budget will allow for the necessary upgrades to be conducted, however with increasing costs and the designation of the building an essential facility these costs may need to be reviewed during the next budget cycle. Staff and Jacobs Engineering have negotiated the fees for the planning and preliminary design scope of work. The fees related to this work totals $305,000. After an alternative is selected, the fee and scope for design, bidding, and construction support services will be finalized and brought to the Commission. ACTION REQUESTED Staff requests Commission, by motion approve Resolution 21-06, which will:  Authorize the MWMC Executive Officer or his authorized designee to execute and manage the contract with Jacobs Engineering for planning consultant services for the Administrative and Operations Building Upgrades Project (P80104) at $305,000, and contract amendments not to exceed a cumulative total of 15% ($45,750) of $305,000. ATTACHMENTS 1. MWMC Notice of Intent to Award: April 2021 2. Resolution 21-06 April 30, 2021 SUBJECT: NOTICE of INTENT OF CONSULTANT SELECTION Administrative and Operations Building Upgrades MWMC Project Number: P80104 Proposals for the Metropolitan Wastewater Management Commission (MWMC) Administrative and Operations Building Improvements, Project P80104 were due at 3:00 p.m. local time on April 14, 2021. The MWMC received a total of three (3) proposals for architectural and engineering services. After the review committee members reviewed all proposals, a virtual meeting was convened on April 22, 2021 where the review committee members shared notes, observations and collectively scored each proposal relative to each criterion in the request for proposals. Jacobs Engineering was the highest ranked proposer by the P80104 review committee. Please refer to the scoring summary below: Summary of Scores Jacobs Engineering Pivot Architecture 120 points 111 points MWA Architects 109 points The MWMC hereby notifies all proposers (pursuant to the MWMC Procurement Rule 137- 048-0220 and ORS 279C.100) that staff intends to enter negotiations with Jacobs Engineering for consultant services for the Administrative and Operations Building Upgrades, Project P80104. Unless a valid protest is received within seven (7) calendar days (pursuant to the MWMC Procurement Rule 137-048-0248 and ORS 279C.100) from the date of this Notice of Intent to Consultant Selection, the MWMC will enter into P80104 contract negotiations with Jacobs Engineering. Notice emailed and issued on April 30, 2021. Thank you. Mark Van Eeckhout MWMC Civil Engineer Copy: All Proposers Matt Stouder, MWMC General Manager Troy McAllister, City of Springfield Dave Breitenstein, City of Eugene MWMC Commission Jennifer Yeh Eugene City Councilor MWMC President Joe Pishioneri Springfield City Councilor MWMC Vice President Pat Farr Lane County Commissioner Bill Inge Lane County Citizen Doug Keeler Springfield Citizen Walt Meyer Eugene Citizen Peter Ruffier Eugene Citizen Administration Matt Stouder MWMC Executive Officer City of Springfield 225 Fifth Street Springfield, Oregon 97477 (541) 726-3694 FAX (541) 726-2309 Operations Dave Breitenstein Wastewater Director City of Eugene 410 River Avenue Eugene, Oregon 97404 (541) 682-8600 FAX (541) 682-8601 Attachment 1 - MWMC Notice of Intent to Award: April 2021 ATTACHMENT 2 Resolution 21-06 Page 1 of 2 METROPOLITAN WASTEWATER MANAGEMENT COMMISSION RESOLUTION 21-06 ) IN THE MATTER OF CONTRACT AUTHORITY ) FOR MWMC ENGINEERING SERVICES ) FOR MWMC PROJECT P80104, ADMINISTRATIVE ) AND OPERATIONS BUILDING UPGRADES WHEREAS, the budget allocates $7,600,000 for the upgrades to the Metropolitan Wastewater Management Commission (MWMC) Water pollution Control Facility (WPCF) Administrative and Operations Building; and WHEREAS, in March of 2021, MWMC issued and advertised for a request for proposal for consulting services to include Planning, Design and Construction Support Services of the Administrative and Operations Upgrades Project; and WHEREAS, MWMC received three (3) proposals including all three phases of consulting on April 14, 2021 for architectural & engineering services for the Administrative and Operations Upgrades Project and Jacobs Engineering was the highest ranked proposer by the review committee; and WHEREAS, pursuant to the Metropolitan Wastewater Management Commission (MWMC) Procurement Rule 137-048-0220 (Formal Selection Procedure) and ORS 279C.110 allow for staff to negotiate with Jacobs Engineering for architectural & engineering services for the Administrative and Operations Building Upgrade work; and WHEREAS, MWMC will contract first to perform the Planning and Preliminary Design Phase of the project and then with a selected building alternative seek approval to amend the consultant services contract to continue with the Design and Construction Services phases; and WHEREAS, on April 30, 2021, staff issued a “Notice of Intent To Make Consultant Selection” listing the scores of each proposal and explaining the seven (7) calendar day protest timeframe pursuant to the MWMC Procurement Rule 137-048-0240 (Protest Procedures); and WHEREAS, no protest was submitted related to the P80104 consultant selection; and ATTACHMENT 2 Resolution 21-06 Page 2 of 2 WHEREAS, if contract negotiations with Jacobs Engineering are unsuccessful, MWMC has the option to reject the proposal and negotiate with the second highest ranked proposer for the work; and WHEREAS, MWMC has appointed a duly authorized Executive Officer for efficient execution of the day-to-day administration of MWMC business and the Executive Officer may name an authorized designee; and NOW, THEREFORE, BE IT RESOLVED BY THE METROPOLITAN WASTEWATER MANAGEMENT COMMISSION: The duly authorized Executive Officer of the MWMC, or his/her authorized designee, is hereby authorized to: negotiate and execute a contract with Jacobs Engineering for architectural and engineering services for Planning and Preliminary Design of the Administrative and Operations Upgrades Project, MWMC Project Number P80104, for an authorized amount not to exceed $305,000; and (b) if an agreement cannot be reached with Jacobs Engineering terminate negotiations with Jacobs Engineering and proceed with negotiations with the second highest ranked proposer; and (c) delegate performance of project management functions including, but not limited to, issuance of notices to proceed, contract amendments not to exceed a cumulative total of 15% ($45,750) of the 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 9TH DAY OF JULY 2021. _____________________________________________ Jennifer Yeh, MWMC President Approved as to form: __________________________ MWMC Legal Counsel Attest: _______________________________________ Josi Brennan, MWMC Secretary Digital Signature: Digital Signature: Digital Signature: ______________________________________________________________________________ M E M O R A N D U M DATE: July 1, 2021 TO: Metropolitan Wastewater Management Commission (MWMC) FROM: Todd Miller, Environmental Services Supervisor SUBJECT: Biocycle Farm MU3 Harvest Contracting ACTION REQUESTED: Approve Resolutions 21-07 and 21-08 ISSUE The MWMC’s Biocycle Farm Management Unit 3 (MU3) poplar tree stand is at 12 years of age and requires harvesting in 2021. An invitation to bid (ITB) procurement process earlier this year yielded zero bids. Due to not receiving any bids and the requirement to MU3 in calendar year 2021 the MWMC Executive Officer has determined an emergency exists with respect to this harvest. Pursuant to the MWMC’s Emergency Procurement rules, staff has directly negotiated with local contractors to complete the harvest and sale of poplar logs to market. Additionally, staff has identified a milling contractor under the Intermediate Procurement process to produce a minor quantity of boards for introducing Biocycle Farm poplar to sustainable building markets. Harvest needs to start in July 2021 for timely completion of the required work. Staff requests Commission approval of two resolutions:  Resolution 21-07 for contracting of poplar logging services under the Emergency Procurement provision.  Resolution 21-08 for contracting of poplar milling services under the Intermediate Procurement provision. BACKGROUND At the May 14, 2021 MWMC meeting, staff updated the Commission on the status of the MU3 harvest. This included the regulatory drivers requiring MU3 harvest in 2021, the extent of outreach and engagement with the timber industry prior to harvest, and the no-bid outcome of the ITB, including an overview of feedback staff received from industry contacts on the current economic conditions presenting challenges to a 2021 poplar harvest. Commissioners requested that staff explore options regarding land use rules dictating the 12-year poplar rotation age limit to determine if an appeal or other mechanism would allow either deferral of the harvest until 2022 or other accommodations. AGENDA ITEM V Memo: Biocycle Farm MU3 Harvest Contracting July 1, 2021 Page 2 of 4 Despite the no-bid condition, staff reported that direct discussion with potential logging contractors appeared promising, pending details regarding contractor availability, identification of markets, and price points. Staff also reported that in parallel with the ITB process, a request for quotes (RFQ) for poplar board milling and a request for interest (RFI) is using poplar wood products for pilot projects were yielding opportunities to demonstrate local poplar use. Staff expected to recommend moving forward with the board milling opportunity if a successful harvest contract could be negotiated. DISCUSSION MU3 Harvest Contracts Staff, in coordination with legal counsel, has negotiated contracting opportunities to complete the MU3 harvest in 2021. Staff recommends contracting with two entities to harvest separately the north section of MU3 and the south section of MU3: Lane Forest Products and CTS, Inc. Staff arrived at this recommendation based on several factors influencing the harvest conditions:  Legal counsel confirmation that the agricultural and land use regulations governing the Biocycle Farm MU3 require harvest within the 12th year of growth.  Staff confirmation that other poplar growers who have exceeded the 12-year limitation were not constrained by the same land use rules governing the Biocycle Farm operation.  Under Emergency Procurement provisions, the MWMC is able to enter into contracts as a result of direct negotiation with contractor(s) given the urgency of the 2021 harvest.  Independent negotiations with each harvest contractor led to similar but slightly different pricing structures presenting no clear cost advantage to either contractor.  Reported concerns from the harvest contractors that ongoing shortages on labor, equipment, trucking, and other factors could constrain availability to complete the entire MU3 harvest.  Beneficial opportunities are afforded by dual contractors to diversify market base, level out interruptions to harvest progress due to logistics problems, and secure services to fill potential service gaps that may be beyond the MWMC’s or contractor control. Both contractors arrived at a price structure based on a per-acre cost for harvest, a per-ton cost for log handling and trucking, and a per-ton price for market sales. Given unknowns on exact acreage (portions of MU3 were impacted by storm events and previously harvested) and yield (yields are highly variable and suitable log material for 2021 markets may further impact yield), staff negotiated contracts based on a maximum not-to-exceed cost not accounting for market sales. Additionally, staff determined Lane Forest Products is better able to provide all slash processing services and therefore additional per-hour rates for residuals processing for the entire MU3 harvest area is part of the Lane Forest Products contract. The tables below present the maximum costs of harvest under the negotiated arrangements and the range of potential market sales predicted. Memo: Biocycle Farm MU3 Harvest Contracting July 1, 2021 Page 3 of 4 Table 1: Contract Basis with CTS, Inc. for MU3-North Harvest Contract Item Unit Basis Rate Max. Units Not-to-Exceed Cost Tree felling/processing acre 2,100$ 60 126,000$ Log loading/trucking green ton 24$ 100/acre 144,000$ 270,000$ Pulp log sales (low yield)green ton 26$ 2,750 71,500$ Pulp log sales (hugh yield)green ton 26$ 6,000 156,000$ Total Contract Not-to-Exceed Cost Potential market sales Table 2: Contract Basis with Lane Forest Products for MU3-South Harvest Contract Item Unit Basis Rate Max. Units Not-to-Exceed Cost Tree felling/processing acre 2,500$ 57 142,500$ Log loading/trucking green ton 34$ 100/acre 193,800$ Slash piling/cleanup hour 160$ 450 72,000$ Slash grinding hour 600$ 140 84,000$ Equipment mobilizations hour 145$ 16 2,320$ 494,620$ Pulp log sales (low yield)green ton 32$ 2,600 83,200$ Pulp log sales (hugh yield)green ton 32$ 5,700 182,400$ Total Contract Not-to-Exceed Cost Potential market sales Market Pilot Project Contracts A drawback of the markets in 2021 is that poplar logs are entirely destined for the pulp market. Not only are the prices in the pulp market low, but those markets do not provide opportunity to advance the poplar marketplace for durable lumber products. In anticipation of the need to independently demonstrate and pilot local use of poplar lumber products, staff initiated the RFQ and RFI process. Staff has identified a local mill, Urban Lumber, to produce boards from a small portion of logs coming off the MU3 harvest. Based on the RFI process and ongoing discussions, staff is optimistic that Biocycle Farm poplar boards can be introduced to regional and local markets through sales to a Portland-based company and through BRING Recycling. Staff recommends contracting with Urban Lumber to produce up to 60 thousand board feet (MBF) of poplar boards for these markets. The volume of logs to be diverted for board production will represent one to five percent (1-5%) of the total harvest. The contract with Urban Lumber would be a not-to- exceed value of $99,000 at $1,650 per MBF. Due to the cost of custom milling at the pilot scale, board production costs exceed potential market value. Staff recommends proceeding with the milling contract as an investment in future market relationship building. This effort aligns with the long-term marketing plan developed by the MWMC’s poplar marketing and communications consultant, MIG. Similarly, staff has identified interest and potential in biochar production from poplar. Staff estimates that under cooperative agreements with the Northwest Youth Corps and local nonprofit and government partners in fall 2021, a small-scale pilot project could yield approximately 100 cubic yards of biochar from slash material that would otherwise be used as mulch at the Biocycle Farm. Biochar has the Memo: Biocycle Farm MU3 Harvest Contracting July 1, 2021 Page 4 of 4 potential to be a future beneficial product from the Biocycle Farm that could sequester carbon in the soil while providing drought resistance, pollutant reduction, nutrient enhancement, and other sustainability benefits. Pilot uses of biochar include street tree planting, parks turf enhancement, stormwater bioswale treatment, restoration planting enhancement, and local sustainable development uses. Staff estimates that approximately $30,000 of investment will be needed to pilot small-scale biochar uses in 2021-2022. MWMC Budget Status The MWMC Capital Improvement Program (CIP) adopted budget includes a fiscal year (FY) 21-22 budget of $600,000 and an FY 22-23 budget of $60,000 for Poplar Harvest Management services. An additional unspent FY 20-21 budget from postponed harvest activities of approximately $130,000 is planned to be added to the FY 21-22 budget via Supplemental Budget 1 (SB1). The total unspent budget for Poplar Harvest Management Services without additional budget amendments is $790,000. The maximum value of the harvest contracts, with a customary 15% amendment authority for additional work as may be deemed essential for project delivery, equals $879,313. However, actual costs are projected to be significantly lower. Staff anticipates total contract costs will be approximately $650,000. The minimum projected market value of poplar from harvest sales is $154,700; the maximum value is projected to be $338,400. Therefore, the projected net harvest costs to the MWMC are less than $500,000. The overall CIP is adequately funded to support the full obligations of the contracts. Accounting for up to $130,000 in pilot board and biochar production costs, staff projects the total 2021 harvest and marketing cost at $630,000. Remaining project work to complete the MU3 harvest cycle includes replanting. To save costs on stump management and replanting, staff has arranged to keep stumps in place after MU3 harvest and regrow trees from the stumps. This practice has been adopted by other poplar growers and requires labor to prune back regrowth to a single lead stem; however, it avoids costs of cutting procurement, planting, and establishment of new trees. Staff is coordinating with the Northwest Youth Corps to provide the tree pruning services to re-establish MU3 in 2022. Therefore, staff projects that the entire harvest and replanting of MU3 will be completed within the adopted CIP budget via reapportionment of FY 20-21, 21-22, and 22-23 budgets without need for additional funding. ACTION REQUESTED Staff requests Commission approval of two items: 1. Resolution 21-07 to enter into contracts with Lane Forest Products and CTS, Inc. under Emergency Procurement authority for a combined not-to-exceed value of $764,620 with a 15% amendment authority of $114,693 for a total potential value of $879,313. 2. Resolution 21-08 to enter into contract with Urban Lumber under Intermediate Procurement authority for a not-to-exceed value of $99,000 with a 15% amendment authority of $14,850 for a total potential value of $113,850. ATTACHMENTS: 1. Resolution 21-07 2. Resolution 21-08 Page 1 of 3 METROPOLITAN WASTEWATER MANAGEMENT COMMISSION RESOLUTION 21-07 ) IN THE MATTER OF CONTRACT AWARD ) FOR MWMC PROJECT P80083 – POPLAR ) HARVEST MANAGEMENT SERVICES, ) BIOCYCLE FARM MU3 HARVEST WHEREAS, the MWMC’s Fiscal Year 2021/2022 (FY21/22) Budget includes Biocycle Farm Poplar Harvest Management Services, Project P80083; WHEREAS, the MWMC’s FY 20/21, 21/22, and 22/23 Capital Improvement Plan (CIP) budgets for Project P80083 have unspent funds of $790,000; WHEREAS, the CIP provides funding to enter into contract commitments exceeding the Project P80083 budget as deemed necessary; WHEREAS, the MWMC followed the procedures for competitive sealed bidding set forth in the MWMC’s Procurement Rules, Section 137-047-0255; WHEREAS, the MWMC received no response to bids as of the bid closing date; WHEREAS, Oregon Revised Statute 279B.080, permits the “head of a contracting agency … to make or authorize others to make emergency procurements of goods or services in an emergency;” WHEREAS, the legal requirement to harvest the MU3 poplar by the end of 2021, coupled with zero responses to the MWMC’s ITB for a contractor to conduct the harvest, constitutes an emergency for purposes of this procurement; WHEREAS, the MWMC Procurement Rules, Section 137-047-0280 provides for award of a contract as an emergency procurement with reasonable and appropriate competition under the circumstances; WHEREAS, the lack of a response to the ITB indicates there is no competition for this procurement; Attachment 1 - Resolution 21-07 METROPOLITAN WASTEWATER MANAGEMENT COMMISSION Resolution 21-07 Page 2 of 3 WHEREAS, the MWMC directly negotiated terms with two contractors resulting in similar capability, capacity, and rates; WHEREAS, final contract negotiations with the two contractors – Lane Forest Products and CTS, Inc. is expected to be successful; and WHEREAS, the MWMC has appointed Matt Stouder as its duly authorized Executive Officer for efficient execution of the day-to-day administration of MWMC business. NOW, THEREFORE, BE IT RESOLVED BY THE METROPOLITAN WASTEWATER MANAGEMENT COMMISSION: Matt Stouder, as the duly authorized Executive Officer of the MWMC, is hereby authorized to: a) Declare the 2021 harvest of MU3 poplars an emergency; b) Execute a contract agreement with Lane Forest Products for Poplar Harvest Management Services – Biocycle Farm MU3 Harvest, Project P80083, for an authorized amount not to exceed $494,620; c) Execute a contract agreement with CTS, Inc. for Poplar Harvest Management Services – Biocycle Farm MU3 Harvest, Project P80083, for an authorized amount not to exceed $270,000; and d) Delegate performance of project management functions including, but not limited to, issuance of notices to proceed, execution of contract amendments not to exceed a cumulative total of 15% ($74,193) of the initial contract amount with Lane Forest Products and 15% ($40,500) of the initial contract with CTS, Inc., and management of the contracts to ensure deliverables and services meet the contract requirements. Attachment 1 - Resolution 21-07 METROPOLITAN WASTEWATER MANAGEMENT COMMISSION Resolution 21-07 Page 3 of 3 ADOPTED BY THE GOVERNING BODY OF THE METROPOLITAN WASTEWATER MANAGEMENT COMMISSION ACTING IN ITS CAPACITY AS LOCAL PUBLIC CONTRACT REVIEW AUTHORITY ON THE 9TH DAY OF JULY 2021. _____________________________________________ Jennifer Yeh, MWMC President Approved as to form: __________________________ KC Huffman, MWMC Legal Counsel Attest: _______________________________________ Josi Brennan, MWMC Secretary Digital Signature: Digital Signature: Digital Signature: Attachment 1 - Resolution 21-07 Page 1 of 2 METROPOLITAN WASTEWATER MANAGEMENT COMMISSION RESOLUTION 21-08 ) IN THE MATTER OF CONTRACT AWARD FOR ) MWMC PROJECT P80083 – POPLAR ) HARVEST MANAGEMENT SERVICES, ) BIOCYCLE FARM MU3 MILLING WHEREAS, the MWMC’s Fiscal Year 2021/2022 (FY21/22) Budget includes Biocycle Farm Poplar Harvest Management Services, Project P80083; WHEREAS, the MWMC’s FY 20/21, 21/22, and 22/23 Capital Improvement Plan (CIP) budgets for Project P80083 have unspent funds of $790,000; WHEREAS, the CIP provides funding to enter into contract commitments exceeding the Project P80083 budget as deemed necessary; WHEREAS, the MWMC followed the procedures for intermediate procurement set forth in the MWMC’s Procurement Rules, Section 137-047-0270; WHEREAS, the MWMC received a single response to a request for quotes as of the solicitation closing date; WHEREAS, the MWMC solicited quotes from two other mills after the solicitation closing date and determined those mills could not meet the specifications of the request for quotes; WHEREAS, the MWMC finds that Urban Lumber, Inc. as the sole respondent to the request for quotes is able to favorably provide the milling services requested; WHEREAS, final contract negotiation with the Urban Lumber, Inc. is expected to be successful; and WHEREAS, the MWMC has appointed Matt Stouder as its duly authorized Executive Officer for efficient execution of the day-to-day administration of MWMC business. Attachment 2 - Resolution 21-08 METROPOLITAN WASTEWATER MANAGEMENT COMMISSION Resolution 21-08 Page 2 of 2 NOW, THEREFORE, BE IT RESOLVED BY THE METROPOLITAN WASTEWATER MANAGEMENT COMMISSION: Matt Stouder, as the duly authorized Executive Officer of the MWMC, is hereby authorized to: a) Execute a contract agreement with Urban Lumber, Inc. for Poplar Harvest Management Services – Biocycle Farm MU3 Milling, Project P80083, for an authorized amount not to exceed $99,000; and b) Delegate performance of project management functions including, but not limited to, issuance of notices to proceed, execution of contract amendments not to exceed a cumulative total of 15% ($14,850) of the initial contract amount, and management of the contracts to ensure deliverables and services meet the contract requirements. ADOPTED BY THE GOVERNING BODY OF THE METROPOLITAN WASTEWATER MANAGEMENT COMMISSION ACTING IN ITS CAPACITY AS LOCAL PUBLIC CONTRACT REVIEW AUTHORITY ON THE 9TH DAY OF JULY 2021. _____________________________________________ Jennifer Yeh, MWMC President Approved as to form: __________________________ KC Huffman, MWMC Legal Counsel Attest: _______________________________________ Josi Brennan, MWMC Secretary Digital Signature: Digital Signature: Digital Signature: Attachment 2 - Resolution 21-08 ______________________________________________________________________________ M E M O R A N D U M DATE: July 1, 2021 TO: Metropolitan Wastewater Management Commission (MWMC) FROM: Todd Miller, Environmental Services Supervisor SUBJECT: Credit Program Manager Contract Amendment ACTION REQUESTED: Information and discussion ISSUE The MWMC has contracted with The Freshwater Trust, a nonprofit conservation organization, to be the MWMC’s credit program manager for the long-term implementation of water quality trading credits. Staff proposes amending The Freshwater Trust contract to expand pilot project implementation in 2021 under existing contract authority. Additional funding authority may be requested later in 2021 to further develop the final credit program strategy for compliance with the MWMC’s upcoming renewed National Pollutant Discharge Elimination System (NPDES) permit. BACKGROUND The MWMC’s NPDES permit is scheduled for renewal in fall 2021. Under updated temperature standards and DEQ policies for permit limits, the MWMC expects to be required to meet thermal load limits under a multi-year compliance schedule. The MWMC has identified generation of water quality trading credits through restoration of riparian shade in upper Willamette River watersheds as the principal strategy for temperature compliance. The Freshwater Trust was selected to serve as the MWMC’s Credit Program Manager under MWMC procurement rules via a request for qualifications (RFQ) and request for proposals (RFP) process. The RFP scope of work required Phase 1 services to establish the framework and costing of generating water quality trading credits via the Pure Water Partners and Phase 2 services to implement the regulatory credit program for the MWMC’s NPDES permit compliance. AGENDA ITEM VI Memo: Credit Program Manager Contract Amendment July 1, 2021 Page 2 of 3 The current contract with The Freshwater Trust was authorized under two previous resolutions:  Resolution 19-03 (Attachment 1), adopted March 8, 2019: Authorized Phase 1 Credit Program Manager services for a not-to-exceed value of $193,063 with a 15% amendment authority of $28,959.45 for a total authority of $222,022.45.  Resolution 20-03 (Attachment 2), adopted February 14, 2020: Authorized amending the Credit Program Manager contract to initiate a pilot phase of Phase 2 Credit Program Manager services (“Task 2A”) for a not-to-exceed value of $250,000.00 with a 15% amendment authority of $37,500.00 for a total authority of $287,500.00. The purpose of Task 2A pilot projects were to test the model for Pure Water Partners collaboration on implementation of riparian shade restoration projects to ensure The Freshwater Trust had identified a workable model for landowner recruitment, site establishment, accreditation, and long-term maintenance and monitoring. The pilot projects were partially funded to allow The Freshwater Trust to plant and credit the projects. However, ongoing project establishment and long-term maintenance funding was deferred to roll into the full Phase 2 scope of work. DISCUSSION The Freshwater Trust has completed most Phase 1 services. Delivered products to date include:  Recommended edits to the Pure Water Partners Memorandum of Agreement (MOA) and Handbook to which the MWMC subsequently became party  Coordination and training of Pure Water Partners member organizations on assessment and implementation of riparian shade restoration projects  Development of funding relationships to facilitate The Freshwater Trust’s oversight of the credit program for the MWMC  Drafting of a proposed water quality trading plan for the MWMC’s NPDES permit compliance  Analysis of seasonal shade credit potential throughout the year  Final cost proposal for the MWMC’s compliance program Under Task 2A pilot site services, the MWMC authorized The Freshwater Trust to enroll up to two sites in credit production projects, including 20-year landowner agreements, planting, and site accreditation by December 31, 2021. The MWMC authorized up to $247,850 for The Freshwater Trust to implement the pilot projects through accreditation, with the understanding that additional funds would be allocated for ongoing site establishment and maintenance under the full Phase 2 program implementation contract. The Freshwater Trust enrolled two landowners in MWMC pilot projects comprising approximately 5 acres. The Freshwater Trust constrained the planting area on the second site based on budget limitations allocated for the pilot projects. Approximately 2 acres of additional planting area for shade credits is available. The Freshwater Trust estimates it can proceed with the most or all of the available acreage if the MWMC approves doing so now. Memo: Credit Program Manager Contract Amendment July 1, 2021 Page 3 of 3 Under the current amendment authorities of Resolution 19-03 and 20-03 for Phase 1 and Task 2A work, respectively, The Freshwater Trust indicates that it can complete the following tasks without further budget amendments:  Phase 1 support of the MWMC’s Water Quality Trading Plan negotiations with DEQ for approval.  Task 2A expansion of pilot projects by approximately 2 additional acres through planting in early 2022.  Ongoing establishment work on planted pilot sites into early 2022. Staff has discussed additional work with The Freshwater Trust that may be beneficial to the MWMC’s final credit program considerations. Additional tasks considered include:  Re-costing evaluation of the MWMC shade credit program if the MWMC determined to reduce the scope of the initial shade credit program.  Evaluation of instream restoration potential for credit generation in the Pure Water Partners boundary area. These tasks would require further budget amendment, legal consultation, and MWMC resolution authority. Therefore, staff has deferred those tasks for later optional consideration after better clarity on the MWMC’s thermal load obligations and NPDES permit compliance schedule are known. RECOMMENDATION Staff recommends proceeding with the pilot project expansion via amendment to The Freshwater Trust Credit Program Manager services contract. This recommendation is favorable based on the current status of the program: 1. The pilot site acreage is extensive, the site is already enrolled and under lease for shade credits, the site is in a ready-to-plant condition, and the site ranks on the upper end of shade credit production potential. 2. The Freshwater Trust can take advantage of the cost-effectiveness of the site opportunity and expand the planted acreage within the current amendment authority for budget increases. 3. The MWMC intends to launch the full shade credit compliance program upon NPDES permit renewal and approval of the MWMC’s Water Quality Trading Plan. Permit renewal is scheduled for fall 2021 and contracting for the full credit compliance program is expected by early 2022. At that time, the pilot projects will be funded for necessary ongoing establishment, monitoring, and maintenance. Staff invites Commission discussion prior to issuing the proposed amendment. ATTACHMENTS: 1. Attachment 1: Resolution 19-03 2. Attachment 2: Resolution 20-03 Attachment 1 Attachment 1 Attachment 2 Attachment 2 ______________________________________________________________________________ M E M O R A N D U M DATE: July 1, 2021 TO: Metropolitan Wastewater Management Commission (MWMC) FROM: Todd Miller, Environmental Services Supervisor Bryan Robinson, Environmental Management Analyst SUBJECT: Regulatory Update – NPDES Permit Renewal Status ACTION REQUESTED: Informational and Discussion ISSUE Regional wastewater program staff is currently working with the Oregon Department of Environmental Quality (DEQ) to renew the MWMC’s National Pollution Discharge Elimination System (NPDES) permit. DEQ staff has confirmed their intention to issue the MWMC’s updated permit as scheduled on the 2021 Permit Issuance Plan (PIP) on or close to September 30, 2021. At the July 9, 2021 MWMC meeting, staff will provide an update related to permit renewal status. BACKGROUND Staff has provided regular updates to the Commission related to the MWMC’s permit renewal process. The MWMC’s current permit was issued in 2002 and has been in administrative extension since 2007, effectively locking in the permit conditions at that time. The new permit will reflect nearly 20 years of new data and regulatory updates. Staff has been engaged with DEQ staff to track the permit issuance timeline and expected updates to the permit. At the April 2021 MWMC meeting, staff briefed the Commission on the permit writing process and timeline and reviewed the ancillary plans referenced by the permit that would require updating in tandem with permit renewal. Key milestones in the MWMC’s permit renewal over the past year include:  MWMC follow-up to DEQ’s request for additional toxics monitoring data  Identification of the MWMC on the DEQ’s PIP for fourth quarter 2021 (ending September 30, 2021)  Identification of the DEQ staff persons who are serving as the MWMC’s permit writing team  Establishment of the tentative timeline for DEQ permit drafting, applicant review, public review, and final issuance AGENDA ITEM VII Memo: Regulatory Update – NPDES Permit Renewal Status July 1, 2021 Page 2 of 2 DISCUSSION Staff has coordinated on review and preparation of permit development elements including Reasonable Potential Analysis (RPA) by which new permit limits are evaluated, thermal load mitigation requirements, and associated plan updates. In coordination with DEQ, staff has resolved that only two plans are needed by DEQ in advance of permit renewal: the Biosolids Management Plan and the Recycled Water Use Plan. Staff has updated both plans for submittal to DEQ by early July. DEQ intends to issue those plans for public review comment in tandem with the public review period for the NPDES permit. Other plans are being updated to be submitted upon or after permit issuance. Staff will provide more detailed updates on permit renewal status to the Commission at the July MWMC meeting. Updates will include:  Current status of permit issuance and review schedule  Preliminary RPA outcomes and technical consultant review of RPAs  Negotiation of a compliance schedule for temperature  MWMC plan submittals to DEQ ACTION REQUESTED This item is informational. No action is requested; Commission feedback is welcome. ____________________________________________________________________________________________________ M E M O R A N D U M DATE: June 29, 2021 TO: Metropolitan Wastewater Management Commission (MWMC) FROM: April Miller, Communications Coordinator Mike McGillivray, Communications Coordinator SUBJECT: MWMC Partnership Video ACTION REQUESTED: Informational and Discussion ISSUE At the July 9 Commission meeting, staff will provide the Commission a preview of the MWMC’s new Partnership Video. The presentation will give an overview of the video’s objectives, as well as background information on the steps taken to write, shoot, edit, and produce the video in house. Additionally, staff will share the dissemination plan for the video with the Commission and request feedback ahead of finalization of the video. BACKGROUND As part of the MWMC’s Strategic Communications Planning Phase 2 in 2019 and 2020, the creation of a Partnership Video was identified as a potential tactic. The Commission expressed support for the video, and the tactic was incorporated into the 2021 MWMC Communications Plan. The video will support the objectives and strategies outlined in the communications plan, as well as Key Outcome #5 – Achieve and maintain public awareness and understanding of the MWMC, the regional wastewater system, and the MWMC’s objectives of maintaining water quality and a sustainable environment. As part of the strategic communications planning process, the focus of the MWMC Partnership Video was discussed and supported by the Commission. The video is to focus on the importance of clean water and how the community is connected to water, while touching on the MWMC’s successes, why it continues to be a strong partnership, and the overarching purpose of the MWMC. DISCUSSION Based on the communications plan and discussions with the Commission, staff created a list of key messages to be included in the video and identified 15 community leaders to interview. An outline was developed using these key messages to determine the desired flow of the video and staff wrote interview questions for each participating community leader. Staff coordinated interview times for each participant and all interviews were shot over eight weeks in April and May. AGENDA ITEM VIII Memo: MWMC Partnership Video June 29, 2021 Page 2 of 2 Key Messages:  Every living thing has a connection to and a need for clean water. There are a variety of reasons to care about clean water such as drinking water quality, recreation, wildlife, farming, industrial use, beer brewing, and more.  Water is a resource that requires management and protection.  The MWMC plays an important role in protecting water quality by providing high-quality wastewater services and contributing to a holistic watershed approach through partnerships.  Call to Action – It takes the entire community working together to protect our waterways. Interviewees:  Matt Stouder, MWMC Executive Officer  Dave Breitenstein, City of Eugene Wastewater Division Director  Jennifer Yeh, MWMC President & Eugene City Councilor  Joe Pishioneri, MWMC Vice President & Springfield City Councilor  Pat Farr, MWMC Commissioner & Lane County Commissioner  Congressman Peter DeFazio, Oregon District 4 Representative  Spencer Goodro, MWMC Wastewater Operator  Jeff Nelson, Springfield Utility Board General Manager  Frank Lawson, Eugene Water & Electric Board General Manager  Jared Weybright, McKenzie Watershed Council Executive Director  Travis Williams, Willamette Riverkeeper Executive Director  Sarah Whitney, Long Tom Watershed Council Urban Restoration & Stormwater Specialist  Brittany Quick-Warner, Eugene Area Chamber of Commerce President & CEO  Stan Pickett, Delta Sand & Gravel Co. President & General Manager  Dewey Hofer, Local Farmer and H&E Feeds Owner Once all interviews were conducted and transcribed, staff selected quotes that best supported the video’s objectives and key messages, put together a video script, and created a shot list of desired B- roll. B-roll is supplemental video footage to intercut with on-camera interviews and help tell the story visually. This footage was collected over several shoot days and at a variety of locations, such as MWMC facilities, local riverfront parks, and even in a staff member’s home to show the connection of water to our everyday lives. Staff made a list of needed graphics for the video and those were created as well. Royalty free music was selected from an online stock music database to serve as the music bed for the video. Incorporating each of these elements, staff edited the video in Adobe Premiere Pro to put it all together, as well as enhance the audio and visual quality of each video clip included. The draft of the Partnership Video that will be shown to the Commission at the July 9 meeting is the product of those efforts. Next Steps: Staff will incorporate a few additional planned shots into the video and make final adjustments after receiving feedback from the Commission. The video will then be distributed digitally through channels such as the MWMC’s YouTube channel, website, social media accounts, and e-Newsletter. Community partners who participated in the video and the cities of Eugene and Springfield and Lane County will be encouraged to share to their channels as well. Additionally, the video will be used for community and industry presentations. ACTION REQUESTED Commission input and discussion is requested.