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Home My WebLink AboutMWMC 3.12.21 Agenda Packet THE FULL PACKET IS POSTED ON THE WEBSITE www.mwmcpartners.org MWMC MEETING AGENDA Friday, March 12th, 2021 7:30 AM – 9:30 AM (PDT) Due to the Coronavirus Pandemic and Oregon Executive Order 20-16, the MWMC Meeting will be held remotely via computer or phone. To join the meeting by phone dial: 877 853 5247; Access Code: 928 1882 5842; Passcode: 335642 7:30 – 7:35 I. ROLL CALL 7:35 – 7:40 II. CONSENT CALENDAR a. MWMC 2/12/21 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 March 11th, 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 – 7:50 IV. ELECTION OF OFFICERS…………………………………………………………….…Matt Stouder Action Requested: Nominate and elect a Commission President and Vice President to serve through March 2022. 7:50 – 8:10 V. SYSTEM DEVELOPMENT CHARGE ANNUAL INFLATIONARY ADJUSTMENTS.…… ……………………………………………………………………………………………..Katherine Bishop Action Requested: Approve, by motion 8:10 – 8:45 VI. PRELIMINARY FY2021-2022 REGIONAL WASTEWATER BUDGET.………………..…… ………………………………………………Matt Stouder, Dave Breitenstein, Katherine Bishop Action Requested: Informational and Discussion 8:45 – 9:05 VII. KEY OUTCOME 1: ENVIRONMENTAL STANDARDS………………………………………….. ………………………………………………………….……..………Matt Stouder, Dave Breitenstein Action Requested: Informational and Discussion 9:05 – 9:30 VIII. BUSINESS FROM COMMISSION, GENERAL MANAGER & WASTEWATER DIRECTOR 9:30 IX. ADJOURNMENT Staff Present Remotely: Lou Allocco, Meg Allocco, Steve Barnhardt, Katherine Bishop, Dave Breitenstein, Josi Brennan, Brian Conlon, Shawn Krueger, Barry Mays, Troy McAllister, James McClendon, April Miller, Todd Miller, Michelle Miranda, Brooke Mossefin, Sharon Olson, Bryan Robinson, Loralyn Spiro, Matt Stouder, Mark Van Eeckhout, Valerie Warner, Greg Watkins Guests Present Remotely: Jessica Groff (United Rentals Fluid Solutions) Josh Johnson (Brown and Caldwell) Ryan Pasquarella (Grove, Mueller & Swank, P.C. Independent auditors) Legal Counsel Present Remotely: K.C. Huffman (Thorp, Purdy, Jewett, Urness, & Wilkinson, PC) MOTION: IT WAS MOVED BY COMMISSIONER PISHIONERI WITH A SECOND BY COMMISSIONER RUFFIER TO APPROVE THE CONSENT CALENDAR. THE MOTION PASSED UNANIMOUSLY 6/0, WITH COMMISSIONER KEELER EXCUSED PUBLIC COMMENT There was no public comment. AGENDA ITEM IIa MWMC MEETING MINUTES Friday, February 12, 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 Farr opened the meeting at 7:30 a.m. Roll call was taken by Josi Brennan. ROLL CALL Commissioners Present Remotely: Pat Farr, Bill Inge, Walt Meyer, Joe Pishioneri, Peter Ruffier, Jennifer Yeh Commissioner Absent: Doug Keeler CONSENT CALENDAR a. MWMC 1/8/21 Minutes March 12, 2021 MWMC Minutes Page 2 of 12 FY 2019-20 AUDITED FINANCIAL STATEMENTS AND REPORT Valerie Warner, MWMC Accountant, introduced Ryan Pasquarella from Grove, Mueller & Swank, P.C., the independent auditor for the MWMC. Mr. Pasquarella expressed how much he missed in person meetings and the level of interaction they bring. For an individual or firm to perform an independent audit of a governmental agency, that individual or firm needs to be licensed by the Oregon Board of Accountancy. Grove, Mueller & Swank has been auditing MWMC for many years. Mr. Pasquarella focused on the governance letter and displayed the agenda packet to the Commission, mentioning the auditor’s responsibility is to obtain reasonable rather than absolute assurance on whether the financial statements are free from material misstatement. Absolute assurance over the financial statements would be more expensive and time consuming. The standards do require sampling is completed on large and small transactions. If a large transaction is incorrect this will misstate the financial statements and reviewing smaller transactions will ensure the process the Commission has in place are being followed. The internal control processes are looked at annually to observe how the MWMC pays money, collects money, and to see who has access to change the accounting data. The remote work environment proved to be more difficult this year. Meetings were virtual and documents were scanned back and forth. In the past, there were ongoing discussions about good processes and what needs to be done. The Commission has always accepted the firm’s recommendations, and currently there are no recommendations unless the MWMC changes any of their internal control processes, and that did not happen this year. If consistency remains, Grove, Mueller & Swank will not be writing a recommendation letter on how to fix processes, because that was covered in prior years. Solid information coming through the financial staff tends to make the auditor leave the building quicker, even in a virtual environment. The governance letter has a significant accounting estimate section. Many estimates happen in financial statements, such as company carrying value of capital assets. Knowing how much longer those capital assets will last is best guess and are looked at annually. Corrected or uncorrected misstatements can be immaterial, or material adjustments recommended to the Commission. The firm did not identify any material adjustments to be posted for the financial statements to be accurate. However, a passed adjustment was found. The finance department decided to not record it because of the amount and because the financial statements were already drafted. An expense of around $61,000 in the Commission's financial statements should have been recorded, but management decided not to. If the number was bigger, the firm would have recommended that management either record the amount or receive a qualified opinion. The Commission has never received a qualified opinion, which means not following proper protocol. The amount is small enough based on the threshold created for the audience, and the amount will be absorbed into next year. DISCUSSION: Commissioner Inge asked what the number must be, for it to be considered a material number? Mr. Pasquarella said numbers change year to year, and it is a closely guarded secret for auditors on what their thresholds really are. This information is not shared with the client during the audit, but for this organization the number is around $250,000. A material misstatement would mean, if an individual viewed these financial statements and a number was off by $250,000, that person might make a different decision based on that information. March 12, 2021 MWMC Minutes Page 3 of 12 Mr. Pasquarella continued his presentation with the financial statement and explained the discussion and analysis. This compares three years of data and shows the change in those years. The depreciation expense is from offsetting the new capital assets. Assets that have been on the books and depreciated over their lives, create little change in the numbers but make capital assets go up. Liabilities have gone down steadily from consistently making payments. The consolidated income statement shows the operating revenues for the past three years. Overall, this information is consistent. Depreciation expenses have gone up from completed capital projects. The financial statement shows this information in detail, explains specific amounts, and displays 2 years of information. The Statement of Cash Flows found on page 31, is helpful to understand cash transactions as it relates more to the operations and fees being charged. DISCUSSION: Commissioner Farr thanked Mr. Pasquarella for the presentation and said each one of the Commissioners have received many financial audit statements, and his was very entertaining, thorough and covered some of the details that auditors do not often cover that sometimes we pretend we already know. Mr. Pasquarella said OSCPA (Oregon Society of Certified Public Accountants) holds a governmental conference, and one of the main topics was remote auditing. This last year shockingly has become a necessity for a lot of firms to use this method, and Grove, Mueller & Swank adjusted quickly Commissioner Ruffier wanted clarification on page 48 of the agenda packet, particularly on the paragraph that started with operations and maintenance expenses increased by approximately $462,000. Could you provide a little clarity around what the city of Eugene did with their net pension expense and the city of Springfield with capitalization of personal services? Ms. Warner said concerning capitalization of personal services, in any particular year the engineering staff will record timecards. When working on a particular capital project, the project number is placed on the timecard. That time spent to prepare the project into service becomes the capital expense, not an annual expensive. If there are $3.3 million of expenses that year and $200,000 is staff time working on capital projects, we reduce the operating cost of admin time and put that $200,000 on various projects, and later those will be depreciated. Ms. Warner stated the other question is more complicated because she records the information but does not figure it out. When coming up with pension liabilities, every year there are actuaries. Staff look at the numbers to figure out what the liability is going to be and when these numbers are obtained from both cities about pension liabilities, they are recorded. It is like a bump every two years when the new actuarial numbers come in. Eugene had a significant bump in their operating expense because it is not related to capital projects. That money is paid to employees when they retire or take time off. Mr. Pasquarella said the actuarial is done every two years, yet the estimate is done annually. When the new report is received, it will include two years’ worth of data. Every year both cities will figure out the net pension liability, and a particular fund will get that amount. This is not only the net pension liabilities or PERS liability, this includes post-employment benefits liability and compensated absences for the employees specific to the commission. The past adjustment of $61,000 will be absorbed next year and is on the operation and maintenance side. Commissioner Ruffier asked if the $499,000 is specific to operations provided by the City of Eugene to MWMC. Mr. Pasquarella said it is those employees’ portion of the net pension liability. March 12, 2021 MWMC Minutes Page 4 of 12 Commissioner Ruffier asked if Springfield operates on an opposite year basis or if there were no adjustments made for their pension liabilities. Mr. Pasquarella said there was, but Eugene ended up being larger. The report for Springfield and Eugene gets combined for reporting purposes. In the management discussion analysis, the goal is to point out large and significant changes so the document does not get too long. In this case, the city of Eugene’s percent and allocation of the total purge liability must have increased this year, causing their expense and liability to go up. Commissioner Ruffier referred to page 69 of the agenda packet document and asked for an explanation on what the eliminations column is. Mr. Pasquarella said it is the difference in how governments should be reporting. These are supplementary tables split out by the individual funds of the Commission. Looking at the accounting records and how the budget is adopted, it is by fund. The basic financial statements for recording are consolidated information, and the elimination column removes the activity between the different funds. Looking at page 69 there are transfers in and transfers out, that zero each other out. If those two were on an income statement it would look strange because the entity did not transfer money. This would be between individual funds. The elimination column removes items flowing between funds in an entity, so it is not reported up front and allows the far-right column on this page to match your front basic financials. Commissioner Ruffier asked under expenses, development, and public works, is that operational expenses? Ms. Warner said it is the engineering transfers and the work done by staff for capital projects. Commissioner Ruffier asked if the category development and public works really relates to operational expenses. Mr. Stouder said it relates to development in public works department for the city of Springfield where the engineers for MWMC are located. Ms. Warner said it is the same for Eugene as well and includes the city of Eugene costs, which are reimbursed from the city of Springfield development and public works budget. Commissioner Ruffier thanked them for the clarification and agreed it is for operationally related activities. Ms. Warner said yes, it is, as well as ESD administration. MOTION: IT WAS MOVED BY COMMISSIONER PISHIONERI TO APPROVE THE ANNUAL FINANCIAL REPORT, INCLUDING THE AUDITED FINANCIAL STATEMENTS FOR FY19-20. COMMISSIONER YEH SECONDED THIS MOTION. THE MOTION PASSED UNANIMOUSLY 6/0, WITH COMMISSIONER KEELER ABSENT. AERATION BASIN PROJECT UPDATE Barry Mays, Design and Construction Coordinator for the City of Springfield, updated the Commission on the progress of the Aeration Improvement Project. Josh Johnson, Engineering Consultant with Brown and Caldwell, helped with technical questions in the presentation. Mr. Mays said the project is phase 2 of the aeration improvement, and part of the 2004 facilities plan and partial facility update plan. Phase 2 of the aeration basis has two sections; the first section is a recommendation by staff to perform an evaluation on the existing aeration system and provide recommendations for the basis of design. All four basins are currently in full operation. With the scope of work laid out, staff completed a condition assessment on mechanical equipment, electrical equipment, and communications. Staff used information from the 1982 original construction and the 2009 phase 1 of the aeration basin. The process assessment contains two parts, the aeration system assessment and dry and wet weather process modeling assessment. New innovations and technologies are being looked at, along with a computerized modeling system for operation staff to use for operating the aeration basin. An energy March 12, 2021 MWMC Minutes Page 5 of 12 evaluation was also included. At the end, all assessments and evaluations were put into a business case evaluation and will be used for basis of design recommendations. Brown and Caldwell completed a condition assessment team that performed visual observations, physical condition, functional integrity, operability, maintenance data and staff interviews to make condition assessment recommendations. These assessments were made by using an operational performance score chart, which found some equipment needs to be replaced within the next 3-5 years. The process assessment was completed in two parts. The first part is an aeration system assessment that tests for dissolved oxygen. Redmond Engineering specializes in this and tested all four basins for how well oxygen is distributed and the consistency across the base. The second part is testing fine course diffusers to see how efficient they distribute oxygen. These diffusers were installed in 2009 and have a life span of around 10 years. The test found the diffusers are an excellent condition and have around 6-8 plus years of life left. Mr. Johnson explained to the Commission the bar plot. The measured concentration is on target and shows the system can maintain the desired set point. The blowers and blower control system do a good job of holding the process to the operation strategy in which the plant manager and plant operators want. Mr. Mays discussed the dry and wet weather process simulator. While assembling the model, staff put together a sampling plan for both dry weather in low flows and wet weather. Historical data from the past 5 years was used and input this information into the model. The process model evaluates the complex biological interactions are biological processes, lets staff know if they are within permit compliance and shows various impacts and process changes within the aeriation system. Mr. Johnson explained the purpose of the simulator is to assess the plant needs in 5-20 years, and that is done by modeling different scenarios for the process configuration and plan growth. To have confidence of future forecasts, it is important to use this calibration of the model. The project has 3 steps and starts with building the model of the existing system. Next is assessing historical data and sampling to calibrate that model and to be confident the model is accurately predicting the current conditions. When confidence is established, staff can predict current conditions and build that out to the future. This helps with the overall purpose and plans for future upgrades in the next 10-20 years. The wet and dry weather calibration is prepared since the summer and winter months have a different process, and there is a good deal of changing flow rate between those two time periods. Brown and Caldwell are in the process of reviewing various innovations and technologies. The mix liquor channel system is being aerated and in poor condition, rating a 4 on the scale. Therefore, staff is considering a mix liquor channel mechanical mixing system. DISCUSSION: Commissioner Farr asked if that pertains to a 1-10 scale. Mr. Mays said no, he is referring to a 1-5 scale. Mr. Johnson explained 1 is essentially new condition, 5 is inoperable and the 2-4 range is range where most equipment that has been installed falls into. Mr. Mays stated that a 4 means the equipment needs to be replaced within the next few years. Mr. Mays went on to say the Profibus system is being replaced with the ethernet fiber optics communication system, which has also been replaced on the digester project. Profibus connections are starting to fail and do not provide the data quickly enough for the plant. The motor control center in March 12, 2021 MWMC Minutes Page 6 of 12 VFD’s are from the 1982 original install and operate fine, but the parts are hard to obtain. It is becoming obsolete and staff are cannibalizing other equipment to keep some of it operating. If the plant performs an upgrade to the ethernet system, the technologies are incompatible. A customized modeling system of either BioWin or Sumo is currently being considered for operation staff. BioWin was selected and is used in dry and wet weather modeling. The goals for choosing the system included overall performance, what-if scenarios, ability to accurately model the process and make modification changes, user friendly and the ability to interface with a future digital twin platform. Brown and Caldwell evaluated the aeration system for energy efficiency and found the plant is one of the most energy aeration efficient systems in the nation. Compared to other plants across the US, the MWMC plant is the best. After the scope of work is evaluated, information from various comments, tech memos and workshops will be considered for the recommendations in the project design. Brown and Caldwell will provide staff with construction costs, lifecycle costs, and operation and maintenance costs. A workshop will be held to view the information and the recommendations will be approved for use. Those recommendations will be the basis for the project design. Schedule for the MWMC Plant  Work Completed o Condition Assessment Workshop 9/15/20 o Conditional Assessment Final Tech Memo 11/3/20 o Process Assessment Workshop 1/28/21 Schedule for the MWMC Plant  Remaining Work o Innovation, technology, computerized modeling system & energy evaluation workshop – late March o Process assessment final tech memo – mid April o Innovation, technology, computerized modeling system & energy evaluation memo – mid April o Business case evaluation/recommendation workshop – mid May o Business case evaluation final tech memo – early June o Update MWMC – June/July Commission Meeting DISCUSSION: Commissioner Farr referred to what Mr. Mays stated about the MWMC being one of the most energy efficient aeration systems in the nation. Is it okay to report that and brag about that? Mr. Mays said, I do not see why not. Commissioner Ruffier was curious about the perspectives on utilization of the BioWin model in making operational management decisions daily for the aeration basis. Mr. Barnhardt said there are times staff will change the modes of operation and change the amount of online basins. If this information is streamed through a model first, it will set up the basis needed to ensure we can still meet permit. In one scenario, we take off basins to have them cleaned. If we operate the system through a model for flow and biological material in the aeration basin, that can predict strategies to maintain permit compliance. Commissioner Ruffier said he has the utmost confidence in the skill level of the operational staff in managing the plant. They have been managing it to meet permit compliance all along, and this tool is used in assisting that. However, there is worry around taking a step back from actual engagement of operations in looking at how the plant is operating and being too dependent on an algorithm or model March 12, 2021 MWMC Minutes Page 7 of 12 to obtain this information. Mr. Barnhardt said the model will not operate the plant; it more so gives staff additional information. Whether changes are made, staff can predict if the change is a good idea or if they should not move forward because the flows are too high. This tool helps staff decide if changes should be made and predict what the changes will look like. Commissioner Ruffier was asked if an evaluation was made in the cost effectiveness of going to pure oxygen. Mr. Mays was not sure. Mr. Johnson said no, this was not on our radar going into the project. Staff were focused on evaluating the need for a blower upgrade, and pure oxygen has not been considered one of the technologies on the table. Commissioner Meyer asked in the wintertime, when flows are high, do staff use the four basins that have not been reconfigured? If so, is that included in the current modeling? Mr. Mays said to his understanding, staff will not be using the four basins. Mr. Barnhardt said the system is currently set up to only use four basins and can achieve a permit compliance at a full range of flow. This has gone up to around 230 million gallons. In April 2019 the flow was over 165 million gallons for 36 hours. The four basins that are online can handle that flow situation. Mr. Johnson added that part of the goal in the future scenario modeling is evaluating when or if the additional four basins would be needed within the planning horizon. Commissioner Farr was happy to hear staff does compare actual performance against the models to continually improve the models. MWMC CAPITAL BUDGET & 5 YEAR CAPITAL PLAN Troy McAllister, Civil Engineer Manager at the City of Springfield presented the Capital Improvement Program (CIP) for the proposed budget and recommended 5-year package. This was a team effort with Eugene and Springfield staff. FY20-21 Projects Wrapping Up Thermal Load Mitigation Pre-Implementation (P80062) - Todd Miller, Environmental Services Supervisor at City of Springfield and others have worked on a Thermal Load Mitigation Plan and pre- implementation efforts to study different solutions/options. This job is coming to an end and staff are documenting recommendations and thoughts for a strategy on thermal load implementation. Projects Carried Over to FY21-22 Renewable Natural Gas (P80095) - Mark Van Eeckhout, Civil Engineer for the City of Springfield is coordinating the elements at the Renewable Natural Gas project. This job has different agreements such as off taker sale of product, NW Natural Gas and construction contractor. Staff hopes to start-up by the summer of 2021, and there are different components to make the biogas clean and ready for product delivery to off-site users. Comprehensive Facilities Plan Update (P80101) – This project will be utilized heavily after the MWMC permit renewal is completed by the State of Oregon. Permit details need to be worked through, such as a new Comprehensive Facilities Plan and 20-year project list that helps set the stage for upcoming infrastructure needs. There is an active consultant contract to figure out a master plan for stormwater at the treatment plant. This will help in plant upgrades, how stormwater is dealt with, permits and other details. March 12, 2021 MWMC Minutes Page 8 of 12 Popular Harvest Management Services (P80083) – Mr. Miller is managing this project which involves harvesting the tree farm near Aubrey Lane. This MWMC farm has three different land territories and one area will be harvested in 2021. Riparian Shade Credit Program (P80080) – Mr. Miller and other staff are helping with thermal load mitigation related to the Riparian Shade Program and coordinating agreements to do cooperation with landowners for waterway tree shading. Class A Disinfection Facilities (P80098) – Mr. Mays is coordinating the project for the design of Class A recycled water. Consultants are in the design phase. Staff will be giving the MWMC project updates during design development. Recycled Water Demonstration (P80099) – This project relates to additional coordination with end users of the water. Elements to make everything come together are ongoing such as public education, as well as explaining reclaimed water and uses for Class A, such as aggregate washing and street tree watering. Aeration Basin Improvement (P80100) – Mr. Mays and others explained this project in the slideshow today. Staff are trying to optimize and improve all the equipment on the easterly basins. Studies are underway and the business case evaluation information will be delivered by 2021. Administration/Operation Building Improvements (P80104) – Staff is working on issuing a request for proposals document to obtain consulting services regarding administration/operations office space. A few years ago, a consultant team created a MWMC bid package and considered upgrading the administration building, but this construction line item was deleted. The existing administration/operations building needs to be re-evaluated to better prepare for a natural disaster. Staff will provide P80104 project updates and be seeking MWMC feedback during the pre-design phase. Glenwood Pump Station Upgrades (P80064) – This project is for pumping capacity upgrades and natural disaster preparedness. Last month, the MWMC approved hiring four engineering firms regarding on-call consultant services. The Glenwood and Resiliency Follow-up projects will have consultants assigned to do engineering work. Resiliency Follow-up (P80109) – The 2019 study provided consultant recommendation and cost estimating information related to MWMC planning for earthquakes and flooding. Mr. McAllister displayed a schematic showing the MWMC treatment plant and cost information. Some other 2021 topics include: construction/project management software changes and NPDES permit renewal via Oregon DEQ. FY21-22 Equipment Replacement Greg Watkins, Wastewater Maintenance Manager for the City of Eugene, provided detail and context for next year’s equipment replacements and major rehabilitation. 800KW Jebacher/CoGen Upper End Rebuild unit is due for an upper end rebuild that consists of new pistons, liners, and sleeves. With the RNG unit scheduled to take all our gas, why is staff putting more money into the engine? The timing between the startup of that project and scheduled need for upper end rebuild do not align perfectly. Staff does not have a lot of experience with the RNG unit in knowing how stable it is. When this equipment is down, financial calculations were made that determined using gas in the CoGen unit is financially beneficial, as well as risk and environmentally prudent versus using the boiler when the RNG unit is offline. Variable Frequency Drives at the Irvington Pump Station are at their end of life. Spare parts are difficult to find for these units and staff are noticing a shorter life than expected. March 12, 2021 MWMC Minutes Page 9 of 12 Grit Channel Drive Chains for Pretreatment Plant runs the flights, collecting the grit which settles out in pretreatment. The chain goes from submerged to exposed and therefore is susceptible to corrosion. Pickup Truck, 1-ton 4WD includes a crane and portable generator. Cargo Van 1-ton includes a portable eye washed station and storage rack. Cathodic Protection Device is used for buried pipes and will need to be replaced next year. Transformer Unit #1-2 Mains need the gauges rebuilt and instrumentation on the transformers are broke. This will take creativity and involves making parts in house because the parts are hard to find. Pickup Truck, ¾-ton 2WD used by the facility maintenance crew is an older vehicle. This does not necessitate being replaced, but staff are finding a 4WD would better serve them. Hydraulic Power Boom Attachment has been repaired, patched, and welded to help further its life. Washwater Booster Pump helps the belt filter press run its best and has shown some significant signs of wear. Staff will work with operation and maintenance staff to come up with ideas of alternate methods of wash down water and consolidate other assets to obtain more redundancy. Tires, Sterling Semi Tractor and Trailers all need a new set of tires. The tires are low on tread and very old. ODOT is not allowing staff to recertify the vehicles for street legal. 2 Polaris ATVs will be replaced with a Kubota tractor. Kubota’s have a better setup with power and configurations to spray herbicides and pesticides on the poplar farm. Sludge Blanket Level Detectors identify the depth of the sludge blankets in our clarifiers. Four sensors can be sent to one common transmitter and controller. These are no longer supported by the manufacturer and are at the end of their life. These need to be replaced with supportable technology. Residual Chlorine Analyzers are no longer supportive active units with the manufacturers. This has made it difficult to find spare parts to replace and repair them. These need to be replaced with supportable technology. Transformer Units a few need to be recoated because of rust and UV damage. FY21-22 Equipment Replacement Michelle Miranda, Interim Wastewater Operations Manager for the City of Eugene informed the Commission about other equipment that needs replaced. Mercury Analyzer is a piece of laboratory equipment that needs to be upgraded with current technology. It is used to analyze mercury in water, soil and biosolids to support environmental compliance programs. Moisture Balance, Smart System 5 is used for analyzing process control samples and is integral to calculating out correct loading rates for land application of biosolids. The unit has been repaired once and is not operating well, so it is up for replacement this year. Auger Float Function will be added to the tractor to help preserve the air-drying beds and concrete, by allowing the broom and mulcher to float above, avoiding wear and tear to the concrete of the beds. Total Kjeldahl Nitrogen Digestion Block is an old piece of equipment originally purchased in the 90s and is used to support compliance testing for the NPDES permit and other analytical lab works. March 12, 2021 MWMC Minutes Page 10 of 12 FY20-22 Major Rehabilitation Mr. Watkins discussed major rehabilitation items that included a grit channel and MWMC building improvements. The concrete and expansion joints for the grit channel need to be rebuilt. These channels have exposed rebar inside the concrete. Before too much degradation and structural compromise is made, those structures need built back up as well as the expansion joins between the segments. Staff requested $15,000 for facilities building improvements, which is the annual dollar amount for unscheduled and unanticipated improvements to on site facilities. The asset management displays both capital and asset management, showing the equipment replacement are around $1 million dollars. The dollar amounts in the future fiscal years go up from a more accurate estimate, this encompasses what needs to be replaced versus being scheduled. There is equipment that can go another 2-3 years, and the amount goes up to reflect the closer evaluation and assessment. DISCUSSION: Commissioner Ruffier asked what regulatory involvement there is in development of the facilities plan. Mr. McAllister said to his understanding it is a good thing to have a facility plan and a 20- year project list. The 20-year project list can be looked at for project's eligible for system development charge (SDC) opportunities. Commissioner Ruffier asked is there is no regulatory veto power or authoritative input into the outcome of the facilities plan. Mr. McAllister asked for more clarification around the question. Commissioner Ruffier asked if DEQ has formal input, where they can request or demand changes to the facilities. Mr. McAllister recalled last time there was a collaboration and we set the stage. If there were issues on our part, DEQ would highly encourage us to step up an element, such as sanitary sewer overflows. Staff presented the package to DEQ, they had questions and requested to include planning information such as wastewater collection system details. Staff and the consultants find out how meet the DEQ permit requirements, and we are expected to meet the DEQ permit requirement. It is in our court to figure out what the best method is to meet the permit. Commissioner Meyer explained when asking or applying for SRF funding, under those circumstances DEQ has more say in terms of what is in the plan. If the plan is done for our own purpose, DEQ does not have a veto power. Legally it is still needed to have a list of projects. Those must be in an approved facilities plan. Commissioner Ruffier thank everyone for the clarification. Commissioner Ruffier noticed the Capital Program Budget includes projects to be carried over, but no new initiated projects. Are we waiting for development to guide us on what new projects we need to do? Mr. McAllister said we are trying to get that nailed down. When something comes at us, a supplemental budget would be needed, but right now we are trying to get the best information for permit renewal outcomes. Mr. Stouder said that is technically correct. There are a few projects that were carried over and did not get started, like the Administration Building Improvements and a few items with the Resiliency Plan. Some projects were pushed out such as the Tertiary Filtration based on the projections of staffing levels and the number of planned projects. There have been conversations with DEQ, and we expect to get a permit this year which will inform our capital plan moving forward and bring on new projects. Commissioner Ruffier asked if there has been a cursory risk assessment on the projects being proposed to move forward with, regarding to what the permit implications are going to be, such as water reuse and shading. Those are still considered to be valid under whatever we expect the permit to develop? March 12, 2021 MWMC Minutes Page 11 of 12 Mr. Stouder stated that is an accurate assessment. Planning staff is looking closely on what to expect with the permit in respect to temperature, TMDL’s and other requirements. Commissioner Farr pointed out how powerful of an economic driver the MWMC is. We not only provide a necessary service but are a large part of the local economy. Not only with operations and administration, but with the capital projects too. MWMC introduces a lot of work into the area. How strongly and involved we are in the actual economy of the area; is hopefully a topic we can report on in the future. Commissioner Farr asked Mr. Stouder a question that did not need to be answered right away. What is the number of FTE’s that MWMC employees in administration and operations have, that is supplemented by the contracts we issue regarding equipment? BUSINESS FROM COMMISSION, GENERAL MANAGER, & WASTEWATER DIRECTOR General Manager: Matt Stouder explained that staff will present the full operating budget at the March MWMC meeting. If anything comes up between now and then, the Commission will have an opportunity to provide further input. Staff have tracked the number of legislative issues at the state level. One of the house bills is 2344, which is known as the wipes bill. Legislation was introduced that will require packaging for flushable wipes to be labeled. These wipes enter the system and cause maintenance challenges, sanitary sewer overflows and pump station clogs. That bill has a decent chance of passing and MWMC submitted a letter of support. On the national level with the Biden administration there is nothing specific to report at this time but will follow up with the Commission as situation's develop. Wastewater Director: Dave Breitenstein gave an update on COVID and related activities. Staff have performed weekly sampling for COVID since last September. To date, 21 samples were collected and sent to OSU to support their research. OSU monitors about 30-40 municipalities and utilities across the state and have an online dashboard that displays if the virus has been detected. Weekly tests have been consistently positive; however, 1-2 tests came back negative. Testing is expected for another two years or so. OSU is analyzing the sequence for all positive samples to pick up on whether the variants show up in the Community. The UK strain has come up in Washington, Yamhill, and Deschutes County. There has been discussion with OHA about communicating the results. The MWMC will be notified of their decision. Clean Water Services expanded their facilities with a molecular biological laboratory and will be testing the virus in their lab using the same technology as OSU. In addition to testing their own wastewater other projects being worked on include Lewis and Clark college (testing wastewater from dorms), and OHSU testing (focused on neighborhood, done in conjunction with nasal swab testing). Once their lab increases the throughput of samples, they will consider other partnerships in their region. Staff is working from home and Eugene is fully staffed. An employee tested positive for COVID and upon their awareness left work and quarantined. These actions fortunately prevented exposure and transmission to other staff. Another employee had a family member test positive, so they are in quarantine March 12, 2021 MWMC Minutes Page 12 of 12 DISCUSSION: Commissioner Farr said there is information on vaccination testing and general conditions on the MWMC website. Commissioner Ruffier asked Mr. Stouder in the last MWMC meeting there was discussion about evaluating performance indicators and perhaps revising those. When would you come back with a process for us to address that? Mr. Stouder said he is hoping to come back with individual outcomes at the monthly Commission meetings, with Outcome 1 scheduled for the March meeting. The challenge is keeping those agenda items to 15-20 minutes because the next 5-6 months of Commission meetings have a large number of topics. These can be worked in; we just need to be judicious in our time. A few weeks ago, a meeting was held with City of Eugene’s city manager to discuss the Climate Action Plan and what MWMC’s role is in that. The RNG, Recycled Water, and the Riparian Shade Restoration project with EWEB and Pure Water Partners were topics discussed. Climate action planning and policy goals that MWMC would like to consider, can be discussed under the Key Outcome 1, including high environmental standards. Commissioner Farr adjourned the meeting at 9:20am ______________________________________________________________________________ M E M O R A N D U M DATE: March 4, 2021 TO: Metropolitan Wastewater Management Commission (MWMC) FROM: Matt Stouder, Executive Officer SUBJECT: Election of Officers ACTION REQUESTED: Nominate and elect a Commission President and Vice President to serve through March 2022 ISSUE The Commission elects new officers every March for one-year terms and is requested to determine officer positions for the term of March 2021 through March 2022. 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 Pat Farr is a Lane County Commissioner, and Vice President Jennifer Yeh is a Eugene City Councilor. If the Commission chooses to follow its traditional practice, Commissioner Yeh would become President, and the new Vice-President would be a representative from the City of Springfield. ACTION REQUESTED The Commission is requested to nominate and elect from among its members a Commission President and Vice President to serve through March 2022. AGENDA ITEM IV ______________________________________________________________________________ M E M O R A N D U M DATE: March 4, 2021 TO: Metropolitan Wastewater Management Commission (MWMC) FROM: Katherine Bishop, ESD Program Manager SUBJECT: Systems Development Charges (SDC) Annual Inflationary Adjustments ACTION REQUESTED: Provide direction with respect to applying an annual inflationary adjustment to regional wastewater SDCs for FY 2020-21 and FY 2021-22 ISSUE Prior to the beginning of each fiscal year (July 1), the MWMC adjusts the regional wastewater SDC for inflation, consistent with the regional wastewater SDC methodology. Due to the impacts associated with COVID-19, an annual inflationary adjustment was not implemented on July 1, 2020 for FY 2020-21. Staff is seeking direction from the Commission regarding inflationary adjustments up to 1.079% for FY 2020-21 and 0.884% in FY 2021-22, resulting in up to 1.963% when combined. BACKGROUND SDCs are impact fees that are collected when expansion, new development or intensification of use occurs on a property served by municipal infrastructure. SDCs allow for the accumulation of capital funding needed to provide sufficient capacity in infrastructure systems to accommodate growth associated with development. In the MWMC’s case, regional wastewater SDCs provide a revenue source to help fund a portion of the Capital Improvement Program that are otherwise funded with user fees. SDC’s also provide the ability to recoup a portion of the community’s investment in existing infrastructure. The MWMC’s SDC methodology was adopted by the Commission and Governing Bodies in 2004 following a 90-day public notification process and public hearing, and subsequently modified in 2006 and 2009. The methodology provides for annual inflationary adjustments consistent with Oregon Revised Statute 223.304(8), allows SDCs to be adjusted by periodic application of a specific cost index. In 2013, the Commission provided direction to staff to apply an annual inflationary adjustment to AGENDA ITEM V Memo: Systems Development Charges (SDC) Annual Inflationary Adjustments March 4, 2021 Page 2 of 3 the regional wastewater SDC based on the cost of construction index associated with the Engineering News Record (ENR). The Commission also directed staff to apply the annual inflationary adjustment at the beginning of each fiscal year (July 1). In 2017, Springfield staff conducted a review of regional SDC’s including: (1) Refreshing financing and interest charges associated with revenue bonds and Clean Water State Revolving Fund (CWSRF) loans; (2) Updated the original 20-year capital project list established with the 2004 MWMC Facilities Plan to reflect actual project costs for completed projects through fiscal year 2016, and; (3) Captured planned capital projects with current cost estimates, with updated cost incorporated into the updated SDC calculation with assistance from Deb Galardi and Associates. The outcome reflected a slight SDC fee increase in low strength establishments, and an SDC fee decrease for commercial and industrial establishments with a greater discharge strength (ex: medium, high, very high, and super high strengths) based on average total biological oxygen demand (BOD) and suspended solids in mg/L. DISCUSSION Since 2013, staff has been following the Commission’s direction by adjusting the regional wastewater SDC based on inflation associated with the cost of construction index associated with the ENR. Last year (FY2020-21), due to concerns with COVID-19, staff brought the SDC inflationary adjustment to the Commission for consideration, rather than following the Commission’s 2013 guidance. The inflationary adjustment for FY2020-21 was up to 1.079%. After discussion, the Commission directed staff to not apply the inflationary adjustment on July 1, 2020. Additionally, the Commission suggested they may wish to recoup the up to 1.079% inflationary adjustment as part of the FY 2021-22 process and asked to revisit the topic during the FY2021-22 time-period. Staff has prepared the regional wastewater SDC inflationary adjustment for the FY 2021-22. The inflationary adjustment for FY2021-22 is up to 0.884% based on establishment type. If the Commission directs staff to adjust the SDCs to include both the FY2020-21 and FY2021-22 amounts, the two-year adjustment combined would be 1.953% to 1.963% (based on establishment type). For context, the MWMC’s SDC rate schedule is included as Attachment 1. Last year, the MWMC collected approximately $1.8 million in regional wastewater SDC revenues, and the prior year included $2.2 million. The amount of SDCs collected on an annual basis is difficult to predict due to fluctuations associated with the economy. If the MWMC were to collect the same amount of SDCs this year (FY 2021-22), a rate adjustment of 1.953% to 1.963% would represent approximately $30,000 to $50,000. Staff is seeking direction from the Commission on how to apply an inflationary adjustment to the regional wastewater SDC and intends to discuss options with the Commission on March 12, 2021. The staff recommendation is for the Commission to consider applying an inflationary adjustment to the regional wastewater SDCs to capture both the FY 2020-21 and FY 2021-22 adjustments (at Memo: Systems Development Charges (SDC) Annual Inflationary Adjustments March 4, 2021 Page 3 of 3 an amount that is less than 2%) to realign the overall adjustment with the adopted MWMC SDC Methodology. ACTION REQUESTED Staff requests the Commission to provide direction regarding applying annual inflationary adjustments to regional wastewater SDCs for FY 2020-21 and FY 2021-22, and continual annual adjustments. ATTACHMENTS 1. MWMC SDC Rate Schedule METROPOLITAN WASTEWATER MANAGEMENT COMMISSION (MWMC)REGIONAL WASTEWATERSYSTEM DEVELOPMENT CHARGE (SDC) SCHEDULEMetropolitan Wastewater Management CommissionRegional Wastewater SDC Fee Schedule - Effective July 1, 2021July 1, 2021Mar 18, 2019Springfield Traffic/Waste water Code Type of Establishment Flow Estimation Unit (FEU)Base Flow Impact (gal/FEU/day)Dry Season Average Flow Impact (gal/FEU/day)Dry Season Max Month Impact (gal/FEU/day) Wet Season Peak Flow Impact (gal/FEU/day) BOD/TSS Strength (mg/l)StrengthBOD (lbs/FEU/day) *TSS (lbs/FEU/day) *Reimburse-ment Cost per FEUImprovement Cost per FEUCompliance Cost per FEUImprovement Credit for Rate Support Total Cost per FEUPrior Model%Change$Change30 TRUCK TERMINALTGSF100137 205 398 150Low0.1710.171$80.51$1,085.37$13.04$142.13$1,036.78$1,016.911.954%$19.87151 MINI WAREHOUSETGSF3041 61 119 150Low0.0510.051$24.15$325.61$3.91$42.64$311.03$305.071.955%$5.96170 UTILITIESTGSF100137 205 398 150Low0.1710.171$80.51$1,085.37$13.04$142.13$1,036.78$1,016.911.954%$19.87200 OTHER RESIDENTIAL (SFD W/OTHER USES)DU175239 359 696 150Low0.2990.299$140.89$1,899.40$22.81$248.73$1,814.37$1,779.601.954%$34.77220 OTHER RESIDENTIAL - MULTI FAMILYDU150205 307 597 150Low0.2560.256$120.76$1,628.05$19.55$213.20$1,555.17$1,525.371.954%$29.80200 OTHER RESIDENTIAL - RESIDENTIAL HOTEL/MOTELTGSF200273 410 796 150Low0.3420.342$161.02$2,170.74$26.07$284.27$2,073.56$2,033.821.954%$39.74240 OTHER RESIDENTIAL - MOBILE HOME PARKDU150205 307 597 150Low0.2560.256$120.76$1,628.05$19.55$213.20$1,555.17$1,525.371.954%$29.80220 OTHER RESIDENTIAL - SMALL HOME < = 800 SQ FTDU150205 307 597 150Low0.2560.256$120.76$1,628.05$19.55$213.20$1,555.17$1,525.371.954%$29.80210 SFD / DUPLEXDU175239 359 696 150Low0.2990.299$140.89$1,899.40$22.81$248.73$1,814.37$1,779.601.954%$34.77320/310 MOTEL / HOTELTGSF200273 410 796 300Medium0.6840.684$267.17$2,996.44$36.49$380.15$2,919.96$2,863.901.958%$56.06411 PUBLIC PARKTGSF160219 328 636 150Low0.2740.274$128.81$1,736.59$20.86$227.41$1,658.85$1,627.061.954%$31.79435 MULTIPURPOSE RECREATION FACILITY (Indoor)TGSF160219 328 636 150Low0.2740.274$128.81$1,736.59$20.86$227.41$1,658.85$1,627.061.954%$31.79444 THEATERTGSF160219 328 636 150Low0.2740.274$128.81$1,736.59$20.86$227.41$1,658.85$1,627.061.954%$31.79488 OUTDOOR ATHLETIC COMPLEXTGSF160219 328 636 150Low0.2740.274$128.81$1,736.59$20.86$227.41$1,658.85$1,627.061.954%$31.79490 TENNIS COURTTGSF160219 328 636 150Low0.2740.274$128.81$1,736.59$20.86$227.41$1,658.85$1,627.061.954%$31.79491 RACQUET CLUBTGSF160219 328 636 150Low0.2740.274$128.81$1,736.59$20.86$227.41$1,658.85$1,627.061.954%$31.79492 HEALTH CLUBTGSF160219 328 636 150Low0.2740.274$128.81$1,736.59$20.86$227.41$1,658.85$1,627.061.954%$31.79437 BOWLING ALLEYTGSF160219 328 636 150Low0.2740.274$128.81$1,736.59$20.86$227.41$1,658.85$1,627.061.954%$31.79495 RECREATIONAL CENTERTGSF160219 328 636 150Low0.2740.274$128.81$1,736.59$20.86$227.41$1,658.85$1,627.061.954%$31.79500 INDUSTRIAL PROCESS LOW STRENGTHTGALEF10001,366 2,049 3,978 150Low1.7101.710$805.08$10,853.70$130.37$1,421.34$10,367.81$10,169.121.954%$198.69500 INDUSTRIAL PROCESS MEDIUM STRENGTHTGALEF10001,366 2,049 3,978 300Medium3.4193.419$1,335.86$14,982.22$182.46$1,900.74$14,599.80$14,319.481.958%$280.32500 INDUSTRIAL PROCESS HIGH STRENGTHTGALEF10001,366 2,049 3,978 500High5.6995.699$2,043.56$20,486.91$251.93$2,539.94$20,242.46$19,853.291.960%$389.17500 INDUSTRIAL PROCESS VERY HIGH STRENGTHTGALEF10001,366 2,049 3,978 700Very High7.9797.979$2,751.26$25,991.61$321.40$3,179.14$25,885.12$25,387.101.962%$498.02500 INDUSTRIAL PROCESS SUPER HIGH STRENGTHTGALEF10001,366 2,049 3,978 900Super High10.25810.258$3,458.96$31,496.31$390.86$3,818.34$31,527.79$30,920.921.963%$606.87520 ELEMENTARY SCHOOLTGSF5068 102 199 150Low0.0850.085$40.25$542.68$6.52$71.07$518.39$508.461.953%$9.93522 MIDDLE SCHOOLTGSF5068 102 199 150Low0.0850.085$40.25$542.68$6.52$71.07$518.39$508.461.953%$9.93530 HIGH SCHOOLTGSF5068 102 199 150Low0.0850.085$40.25$542.68$6.52$71.07$518.39$508.461.953%$9.93540 COMMUNITY COLLEGETGSF5068 102 199 150Low0.0850.085$40.25$542.68$6.52$71.07$518.39$508.461.953%$9.93550 UNIVERSITYTGSF5068 102 199 150Low0.0850.085$40.25$542.68$6.52$71.07$518.39$508.461.953%$9.93560 CHURCHTGSF5068 102 199 150Low0.0850.085$40.25$542.68$6.52$71.07$518.39$508.461.953%$9.93565 DAY CARE CENTERTGSF5068 102 199 150Low0.0850.085$40.25$542.68$6.52$71.07$518.39$508.461.953%$9.93590 LIBRARYTGSF5068 102 199 150Low0.0850.085$40.25$542.68$6.52$71.07$518.39$508.461.953%$9.93591 FRATERNAL ORGANIZATIONTGSF5068 102 199 150Low0.0850.085$40.25$542.68$6.52$71.07$518.39$508.461.953%$9.93945 SERVICE STATION / MARKETTGSF180246 369 716 150Medium0.6150.615$240.45$2,696.80$32.84$342.13$2,627.96$2,577.511.958%$50.45610 HOSPITALTGSF150205 307 597 150Medium0.5130.513$200.38$2,247.33$27.37$285.11$2,189.97$2,147.921.958%$42.05620 NURSING HOMETGSF150205 307 597 150Low0.2560.256$120.76$1,628.05$19.55$213.20$1,555.17$1,525.371.954%$29.80630 CLINIC, MEDICAL OFFICETGSF150205 307 597 150Low0.2560.256$120.76$1,628.05$19.55$213.20$1,555.17$1,525.371.954%$29.80934 FAST FOOD RESTAURANTTGSF500683 1,024 1,989 500 Very High3.9893.989$1,375.63$12,995.81$160.70$1,589.57$12,942.56$12,693.551.962%$249.01720 VETERINARIAN SERVICESTGSF200273 410 796 150Low0.3420.342$161.02$2,170.74$26.07$284.27$2,073.56$2,033.821.954%$39.74750 OFFICE PARKTGSF100137 205 398 150Low0.1710.171$80.51$1,085.37$13.04$142.13$1,036.78$1,016.911.954%$19.87770 BUSINESS PARKTGSF100137 205 398 150Low0.1710.171$80.51$1,085.37$13.04$142.13$1,036.78$1,016.911.954%$19.87730 GOVERNMENT BUILDINGTGSF100137 205 398 150Low0.1710.171$80.51$1,085.37$13.04$142.13$1,036.78$1,016.911.954%$19.87732 US POST OFFICETGSF100137 205 398 150Low0.1710.171$80.51$1,085.37$13.04$142.13$1,036.78$1,016.911.954%$19.87876 RETAILTGSF5068 102 199 150Low0.0850.085$40.25$542.68$6.52$71.07$518.39$508.461.953%$9.93931 QUALITY RESTAURANTTGSF500683 1,024 1,989 500 Very High3.9893.989$1,375.63$12,995.81$160.70$1,589.57$12,942.56$12,693.551.962%$249.01932 HIGH TURNOVER RESTAURANTTGSF500683 1,024 1,989 500 Very High3.9893.989$1,375.63$12,995.81$160.70$1,589.57$12,942.56$12,693.551.962%$249.01937 EATING PLACE WITH MINIMAL FOOD PREPARATION***TGSF300410 615 1,193 150Low0.5130.513$241.53$3,256.11$39.11$426.40$3,110.34$3,050.731.954%$59.61835 DRINKING PLACE WITH MINIMAL FOOD PREPARATION****TGSF340464 697 1,353 150Low0.5810.581$273.73$3,690.26$44.32$483.25$3,525.06$3,457.501.954%$67.56932 DRINKING PLACE WITH RESTAURANT LIKE FOOD PREPARATIONTGSF500683 1,024 1,989 150Very High3.9893.989$1,375.63$12,995.81$160.70$1,589.57$12,942.56$12,693.551.962%$249.01925 DRINKING PLACETGSF340464 697 1,353 150 Low0.5810.581$273.73$3,690.26$44.32$483.25$3,525.06$3,457.501.954%$67.56840 AUTO CARETGSF4055 82 159 150Medium0.1370.137$53.43$599.29$7.30$76.03$583.99$572.781.958%$11.21841 NEW CAR SALESTGSF5068 102 199 150Low0.0850.085$40.25$542.68$6.52$71.07$518.39$508.461.953%$9.93947 CAR WASHTGSF500683 1,024 1,989 150Low0.8550.855$402.54$5,426.85$65.18$710.67$5,183.90$5,084.561.954%$99.34848 TIRE STORETGSF5068 102 199 150Low0.0850.085$40.25$542.68$6.52$71.07$518.39$508.461.953%$9.93Page 1 of 2 ATT 1 - SDC Fee Schedule FY20-21 & FY21-22 METROPOLITAN WASTEWATER MANAGEMENT COMMISSION (MWMC)REGIONAL WASTEWATERSYSTEM DEVELOPMENT CHARGE (SDC) SCHEDULEMetropolitan Wastewater Management CommissionRegional Wastewater SDC Fee Schedule - Effective July 1, 2021July 1, 2021Mar 18, 2019Springfield Traffic/Waste water Code Type of Establishment Flow Estimation Unit (FEU)Base Flow Impact (gal/FEU/day)Dry Season Average Flow Impact (gal/FEU/day)Dry Season Max Month Impact (gal/FEU/day) Wet Season Peak Flow Impact (gal/FEU/day) BOD/TSS Strength (mg/l)StrengthBOD (lbs/FEU/day) *TSS (lbs/FEU/day) *Reimburse-ment Cost per FEUImprovement Cost per FEUCompliance Cost per FEUImprovement Credit for Rate Support Total Cost per FEUPrior Model%Change$Change850SUPERMARKETTGSF180246 369 716 300High1.0261.026$367.84$3,687.64$45.35$457.19$3,643.64$3,573.591.960%$70.05851CONVENIENCE MARKETTGSF180246 369 716 150Low0.3080.308$144.92$1,953.67$23.47$255.84$1,866.21$1,830.441.954%$35.77854DISCOUNT MARKETTGSF3041 61 119 150Low0.0510.051$24.15$325.61$3.91$42.64$311.03$305.071.955%$5.96890FURNITURE STORETGSF3041 61 119 150Low0.0510.051$24.15$325.61$3.91$42.64$311.03$305.071.955%$5.96895VIDEO ARCADETGSF160219 328 636 150Low0.2740.274$128.81$1,736.59$20.86$227.41$1,658.85$1,627.061.954%$31.79911FINANCIAL INSTITUTIONTGSF110150 225 438 150Low0.1880.188$88.56$1,193.91$14.34$156.35$1,140.46$1,118.601.954%$21.86251ELDERLY HOUSING - DETACHEDTGSF100137 205 398 150Low0.1710.171$80.51$1,085.37$13.04$142.13$1,036.78$1,016.911.954%$19.87252ELDERLY HOUSING - ATTACHEDTGSF100137 205 398 150Low0.1710.171$80.51$1,085.37$13.04$142.13$1,036.78$1,016.911.954%$19.87253CONGREGATE ELDERLY CARE FACILITYTGSF100137 205 398 150Low0.1710.171$80.51$1,085.37$13.04$142.13$1,036.78$1,016.911.954%$19.87120HEAVY INDUSTRY/INDUSTRIAL**TGSF5068 102 199 150Low0.0850.085$40.25$542.68$6.52$71.07$518.39$508.461.953%$9.93120HEAVY INDUSTRY/INDUSTRIAL**TGSF5068 102 199 150Low0.0850.085$40.25$542.68$6.52$71.07$518.39$508.461.953%$9.93120HEAVY INDUSTRY/INDUSTRIAL**TGSF5068 102 199 150Low0.0850.085$40.25$542.68$6.52$71.07$518.39$508.461.953%$9.93120HEAVY INDUSTRY/INDUSTRIAL**TGSF5068 102 199 150Low0.0850.085$40.25$542.68$6.52$71.07$518.39$508.461.953%$9.93120HEAVY INDUSTRY/INDUSTRIALTGSF5068 102 199 150Low0.0850.085$40.25$542.68$6.52$71.07$518.39$508.461.953%$9.93710GENERAL OFFICE BLDGTGSF100137 205 398 150Low0.1710.171$80.51$1,085.37$13.04$142.13$1,036.78$1,016.911.954%$19.87860WHOLESALE TRADETGSF5068 102 199 150Low0.0850.085$40.25$542.68$6.52$71.07$518.39$508.461.953%$9.93870CLOTHING / DRYGOODS / HOUSEWARESTGSF3041 61 119 150Low0.0510.051$24.15$325.61$3.91$42.64$311.03$305.071.955%$5.96820LAUNDRYTGSF100137 205 398 150Low0.1710.171$80.51$1,085.37$13.04$142.13$1,036.78$1,016.911.954%$19.87900OTHER SERVICESTGSF100137 205 398 150Low0.1710.171$80.51$1,085.37$13.04$142.13$1,036.78$1,016.911.954%$19.87110CONSTRUCTION TRADETGSF100137 205 398 150Low0.1710.171$80.51$1,085.37$13.04$142.13$1,036.78$1,016.911.954%$19.87440OTHER EDUCATIONAL/CULTURALTGSF5068 102 199 150Low0.0850.085$40.25$542.68$6.52$71.07$518.39$508.461.953%$9.93450OTHER ENTERTAINMENTTGSF160219 328 636 150Low0.2740.274$128.81$1,736.59$20.86$227.41$1,658.85$1,627.061.954%$31.79820SHOPPING CENTERTGSF100137 205 398 150Low0.1710.171$80.51$1,085.37$13.04$142.13$1,036.78$1,016.911.954%$19.87ABBREVIATIONSNOTESTGSF - THOUSAND GROSS SQUARE FEET* Calculated as average flow X 8.345 X strengthTSFGLA - THOUSAND SQUARE FEET GROSS LEASABLE AREA** Process flow is in addition to other flowDU - DWELLING UNIT*** Minimal food preparation - food is assembled from prepackaged food products and cooking, other than warming, is not requiredTGALEF - THOUSAND GALLONS ESTIMATED FLOW**** Includes coffeehouses and juice bars where appropriateVFP - VEHICLE FUELING POSITIONSPage 2 of 2 ATT 1 - SDC Fee Schedule FY20-21 & FY21-22 M E M O R A N D U M DATE: March 4, 2021 TO: Metropolitan Wastewater Management Commission (MWMC) FROM: Katherine Bishop, ESD Program Manager SUBJECT: Preliminary FY 2021-22 Regional Wastewater Program Budget ACTION REQUESTED: Provide comments and direction to staff for finalization of the Regional Wastewater Program Budget for FY 2021-22 ISSUE The Preliminary Regional Wastewater Program (RWP) Budget and Capital Improvements Program for fiscal year 2021-22 (FY 21-22) is attached for your review. During the Commission meeting on March 12, 2021, staff will present the proposed operating budget as well as scenarios for FY 21-22 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 9, 2021. BACKGROUND AND DISCUSSION On January 8, 2021, the Commission reviewed the proposed Key Outcomes and Performance Indicators as part of the Budget Kick-Off. On February 12, 2021, the Commission reviewed the proposed Capital Budget and 5-Year Capital Programs Plan. Proposed Capital Programs Budget - The proposed FY 21-22 capital programs budget is $22,828,000, of which $1,128,000 reflects asset management. Approximately $11.1M of the capital budget includes carryover funding from FY 20-21 for projects that span multiple years and may continue into FY 21-22. Projects include: Administration Building Improvements, Class A Disinfection Facilities, Renewable Natural Gas Upgrades, Glenwood Pump Station Upgrades, and the Riparian Shade Credit Program. The 5-year capital programs plan total is $90,156,000 as displayed in Exhibit 13, on page 47 of the budget. Proposed Operating Program Budget - The total proposed FY 21-22 operating program budget is $20,673,011 reflecting an increase of 4.5% ($899,011) when compared to the FY 20-21 adopted budget. Exhibit 3, on page 14 of the preliminary budget document, displays the RWP AGENDA ITEM VI Memo: Preliminary FY 2021-22 Regional Wastewater Program Budget March 4, 2021 Page 2 of 2 operating budget summary by program area.  Operations and Maintenance - The proposed operations and maintenance budget for Eugene is $15,996,119, reflecting an overall increase of 4.0% ($616,919) when compared to the adopted FY 20-21 budget. The Operations and Maintenance staffing includes 79.36 Full-time equivalent (FTE). The personnel services component of the budget reflects a budget increase of 1.5% ($150,032) in regular wages and employee related benefits. The materials and services budget reflects a total net budget increase of 8.5% ($450,887), and the capital outlay budget reflects a one-time increase of $138,000. Exhibit 11, on page 37 of the budget document displays the Eugene operations and maintenance line item budget summary.  Administration - The proposed administration budget for Springfield is $4,676,892, reflecting an overall net increase of 6.4% ($282,092) when compared to the adopted FY 20-21 budget. The Administration FTE staffing includes a proposed increase at 0.98 FTE to 17.76 FTE. The personnel services component of the budget reflects a budget increase of 7.7% ($164,060) in regular wages and employee related benefits. The materials and services budget reflects a net budget increase of 5.2% ($118,032). 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 FY 21-22 is based on a 3.5% user fee rate change effective July 1, 2021. The proposed 3.5% rate change takes into consideration Septage/Hauled Waste user fees projected at $650,000 in FY 21-22.  Fiscal Impact to a Residential Monthly Bill - The proposed 3.5% rate change to the regional wastewater component would result in a $0.95 monthly increase from $27.02 to $27.97 for a residential customer based on 5,000 gallons of wastewater treated. With the proposed 3.5% rate change, sufficient revenues will be generated to fund daily operations, planned capital projects and debt service obligations. While maintaining positive cash flow and capital reserves for investments in capital improvement infrastructure with the MWMC’s upcoming National Pollutant Discharge Elimination System (NPDES) permit renewal planned in late calendar year 2021. Rate scenarios will be presented at the March 12 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 FY 21-22. ATTACHMENT 1. Preliminary FY21-22 Regional Wastewater Program Budget Regional Wastewater Program Budget and Capital Improvements Program Fiscal Year 2021-2022 Metropolitan Wastewater M ANAGEMENT COMMISSION partners in wastewater management Preliminary Cover photo: aerial view of the Biosolids Management Facility and Biocycle Farm in north Eugene Preliminary REGIONAL WASTEWATER PROGRAM BUDGET and CAPITAL IMPROVEMENTS PROGRAM Fiscal Year 2021-22 The Metropolitan Wastewater Management Commission is scheduled to adopt the Operating Budget and Capital Improvements Program (CIP) for FY 21-22 on April 9, 2021. The Budget and CIP are scheduled to be ratified by the Springfield City Council on May 3, 2021, the Eugene City Council on May 10, 2021, and the Lane County Board of Commissioners on May 11, 2021. The Commission is scheduled to give final ratification of the Budget and CIP on June 11, 2021. COMMISSION MEMBERS: Pat Farr, President (Lane County) Jennifer Yeh, Vice President (Eugene) Bill Inge (Lane County) Doug Keeler (Springfield) Walt Meyer (Eugene) Joe Pishioneri (Springfield) Peter Ruffier (Eugene) STAFF: Matthew Stouder, MWMC Executive Officer/General Manager Dave Breitenstein, Wastewater Director Nathan Bell, MWMC Finance Officer www.mwmcpartners.org TABLE OF CONTENTS Metropolitan Wastewater Management Commission Table of Contents METROPOLITAN WASTEWATER MANAGEMENT COMMISSION FY 2021-22 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 ................... 36 Exhibit 11: Eugene Operations & Maintenance Line Item Summary ............................. 37 CAPITAL PROGRAM Regional Wastewater Capital Improvements Program .......................................................... 38 Exhibit 12: Capital Program Budget Summary ................................................................ 41 Exhibit 13: Capital Program 5-Year Plan ........................................................................ 47 CAPITAL PROJECT DETAIL Capital Program Project Detail Sheets ................................................................................... 48 PROGRAM OVERVIEW Metropolitan Wastewater Management Commission Budget Message Page 1 FY 21-22 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 2021-22. 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-Springfield 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 providing high-quality wastewater services to the metropolitan area for 44 years. The service area for the MWMC consists of approximately 250,000 residents, including 79,700 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 2021-22 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 21-22 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 21-22 is $21.7 million, and the five-year Capital Plan is currently projected at $76.6 million. Operating Budget - The FY 21-22 RWP Operating Budget for personnel services, materials and services and capital outlay expenses is $20.6 million, reflecting a 4.5% increase when compared to the prior year adopted budget (as well as compared to the prior year amended budget). The FY 21-22 budget includes Debt Service payments that total $4.1 million as scheduled repayment of the $32.7 million for revenue bonds issued in May 2016, and $104,250 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 21-22 user fee revenues (including septage service) are projected at $36.0 million. This level of revenue is based on a recommended 3.5% increase on regional monthly wastewater user fees, and septage and hauled waste user fees, 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 21-22 budget implements the Commission’s adopted 2019 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. Currently, the target date set by the DEQ for permit issuance is by the end of calendar year 2021. Respectfully submitted, Matt Stouder MWMC Executive Officer Metropolitan Wastewater Management Commission Acronyms and Explanations Page 3 FY 21-22 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. 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. 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. Metropolitan Wastewater Management Commission Acronyms and Explanations Page 4 FY 21-22 BUDGET AND CIP 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 21-22 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 44 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 for customers that are served by the MWMC in the Santa Clara unincorporated area. 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 21-22 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 21-22 RWP Operating Budget, Capital Improvements Program and associated work plans. Metropolitan Wastewater Management Commission Overview Page 6 FY 21-22 BUDGET AND CIP Outcome 1: Achieve and maintain high environmental standards. Indicators: Performance: FY 19-20 Actual FY 20-21 Estimated Actual FY 21-22 Target • Volume of wastewater treated to water quality standards 100%; 10.9 billion gallons 100%; 11 billion gallons 100%; 11 billion gallons • Average removal efficiency of carbonaceous biochemical oxygen demand (CBOD) and total suspended solids (TSS) (permit limit 85%) 97% 97% 95% • High quality biosolids (pollutant concentrations less than 50% of EPA exceptional quality criteria) Arsenic 21% Cadmium 12% Copper 29% Lead 8% Mercury 5% Nickel 5% Selenium 12% Zinc 29% Arsenic 25% Cadmium 15% Copper 30% Lead 10% Mercury 10% Nickel 10% Selenium 15% Zinc 30% 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 19-20 Actual FY 20-21 Estimated Actual FY 21-22 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 AA • Reserves funded at target levels Yes Yes Yes Metropolitan Wastewater Management Commission Overview Page 7 FY 21-22 BUDGET AND CIP Outcome 3: Achieve and maintain a successful intergovernmental partnership. Indicators: Performance: FY 19-20 Actual FY 20-21 Estimated Actual FY 21-22 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 90% of initiated projects within budget and 100% (11 of 11 projects) on schedule 100% of initiated projects within budget and 100% (9 of 9 projects) on schedule 100% of initiated projects within budget and 75% on schedule • Interagency coordination regarding Capacity Management Operations and Maintenance (CMOM) Program CMOM Program update presented to the Commission 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 2 community presentations delivered by staff to groups in the service area 4 community presentations delivered by staff to groups in the service area 4 community presentations delivered by staff to groups in the service area Outcome 4: Maximize reliability and useful life of regional assets and infrastructure. Indicators: Performance: FY 19-20 Actual FY 20-21 Estimated Actual FY 21-22 Target • Preventive maintenance completed on time (best practices benchmark is 90%) 92% 94% 90% • Preventive maintenance to corrective maintenance ratio (benchmark 4:1-6:1) 5.6:1 5:1 5:1 • Emergency maintenance required (best practices benchmark is less than 2% of labor hours) 2% 1% <2% • Asset management (AM) processes and practices review and development Asset management plan completed Change to Bi-Annual update to AM plan Bi-Annual update to AM plan • MWMC Resiliency Plan Presented final plan to the Commission Plan implementation Continue plan implementation Metropolitan Wastewater Management Commission Overview Page 8 FY 21-22 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 19-20 Actual FY 20-21 Estimated Actual FY 21-22 Target • Communications Plan Updated in Spring 2020 based on survey results Update in Spring 2021 based on survey results Implement 2021 Communications Plan • Promote MWMC social media channels Grew Facebook followers to 375 - Did not meet goals to grow Twitter or Instagram Growth of Facebook and Twitter followers are on track while Instagram continues to struggle Implement strategies to grow Facebook followers to 700, Twitter to 250 and Instagram to 275 • Create and distribute MWMC e-newsletters Distributed monthly and increased distribution to 222 subscribers Distribute monthly and increase distribution to 300 subscribers Distribute monthly and increase distribution to 375 subscribers • Pollution prevention campaigns 2 campaigns, 3 sponsorships; reaching 40% of residents in the service area 2 campaigns, 4 sponsorships; reaching <40% of residents in the service area due to COVID-19 2 campaigns, 4 sponsorships; reaching 40% of residents in the service area • Provide tours of the MWMC Facilities Provided tours for 840 people. Tours canceled as of March 12th due to COVID-19 Due to COVID-19, there have been no tours provided Provide tours for greater than 1,150 people • Clean Water University Reached 25% of 5th Graders in the service area Reach 25% of 5th Graders in the service area so long as online enrollment holds Reach 25% of 5th Graders in the service area • Community survey (approx. every 4 years) Survey completed in Fall 2019 Survey completed in Fall 2020 --- Metropolitan Wastewater Management Commission Overview Page 9 FY 21-22 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 79.36 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 Department, provides staff to serve as the MWMC Executive Officer / 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 16.85 FTE of Development and Public Works Department staff and .88 FTE of Finance Department staff, and .03 FTE of City Manager’s Office for a total 17.76 FTE as reflected in the FY 21-22 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 21-22 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 MWMC Executive Officer / MWMC General Manager, together with 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. In addition, 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 21-22 BUDGET AND CIP EXHIBIT 1 EUGENE CITY COUNCIL LANE COUNTY COMMISSIONERS SPRINGFIELD CITY COUNCIL METROPOLITAN WASTEWATER MANAGEMENT COMMISSION EUGENE WASTEWATER DIVISION - Regional Facility Operation and Maintenance - Major Rehab and Equipment Replacement - Technical Services - Eugene Pretreatment Program - Pump Station and Interceptor Operations and Maintenance PUBLIC WORKS ADMINISTRATION - Billing and Customer Service MAINTENANCE DIVISION - Regional Sewer Line Support SPRINGFIELD ENVIRONMENTAL SERVICES DIVISION - Planning - Capital Construction - Rates, Revenues - Permit Coordination - Interagency Coordination - Public Information/Education - Springfield Pretreatment Program - Legal and Risk Services - Billing and Customer Service FINANCE DEPARTMENT - Accounting and Financial Reporting INTERAGENCY COORDINATION AND PROJECT TEAMS - Administrative Policy Decisions and Coordination - Operational Policy Decisions and Coordination - Capital Project Planning and Coordination - Design Standards Development - Capital Construction Guidance REGIONAL WASTEWATER PROGRAM INTERAGENCY COORDINATION STRUCTURE Operation & Maintenance Contract Administration Contract KEY OUTCOMES ACHIEVED BUDGET SUMMARY Metropolitan Wastewater Management Commission Budget and Program Summary Page 12 FY 21-22 BUDGET AND CIP REGIONAL WASTEWATER PROGRAM FY 21-22 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 20-21” column in all budget tables represents the updated FY 20-21 RWP budget as of February 17, 2021, which reconciled actual beginning balances at July 1, 2020, and approved budget transfers and supplemental requests. Notes: 1. The Change column and Percent Change column compare the Proposed FY 21-22 Budget with the originally Adopted FY 20-21 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. ADOPTED BUDGET AMENDED BUDGET PROPOSED BUDGET FY 20-21 FY 20-21 FY 21-22 Full-Time Equivalent Staffing Level 96.14 96.14 97.12 0.98 1.0% Personnel Services (2)$12,097,626 $12,097,626 $12,411,718 $314,092 2.6% Materials & Services (2)7,554,374 7,620,158 8,123,293 568,919 7.5% Capital Outlay (2, 3)122,000 122,000 138,000 16,000 13.1% Equip Replacement Contributions (4)750,000 750,000 750,000 - 0.0% Capital Contributions (5)13,000,000 12,437,108 9,800,000 (3,200,000) -24.6% Debt Service (6)4,260,934 4,260,934 4,110,375 (150,559) -3.5% Working Capital Reserve (7)900,000 900,000 900,000 - 0% Rate Stability Reserve (8)2,000,000 2,000,000 2,000,000 - 0% Insurance Reserve (9)1,500,000 1,500,000 1,500,000 - 0% Operating Reserve (10)3,124,598 3,124,598 4,215,639 1,091,041 34.9% Rate Stabilization Reserve (11)2,000,000 2,000,000 2,000,000 - 0% SRF Loan Reserve (12)186,616 186,616 186,616 - 0% Budget Summary $47,496,148 $46,999,040 $46,135,641 ($1,360,507)-2.9% EXHIBIT 2 REGIONAL OPERATING BUDGET SUMMARY INCLUDING RESERVE CONTRIBUTIONS CHANGE (1) INCR/(DECR) Metropolitan Wastewater Management Commission Budget and Program Summary Page 13 FY 21-22 BUDGET AND CIP 4. The Equipment Replacement Contribution is a budgeted transfer of operating revenues to reserves for scheduled future equipment replacement, including all fleet equipment and other equipment, with an original cost over $10,000, and with a useful life expectancy greater than one year. See table on page 21 for year-end balance. 5. The Capital Reserve Contribution is a budgeted transfer of operating revenues to 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 21-22 is $4,110,375. 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 to cover the insurance deductible amount for property and liability insurance coverage, for losses per occurrence. The Insurance Reserve is set at $1.5 million. 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 two months operating expenses 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 21-22 BUDGET AND CIP SPRINGFIELD ACTUALS ADOPTED BUDGET AMENDED BUDGET PROPOSED BUDGET CHANGE MWMC ADMINISTRATION FY 19-20 FY 20-21 FY 20-21 FY 21-22 INCR/(DECR) Personnel Services $1,356,210 $1,622,077 $1,622,077 $1,751,851 $129,774 8.0% Materials & Services 1,744,191 2,086,434 2,152,218 2,195,287 108,853 5.2% Capital Outlay - - - - - -- TOTAL $3,100,401 $3,708,511 $3,774,295 $3,947,138 $238,627 6.4% INDUSTRIAL PRETREATMENT Personnel Services $369,560 $378,253 $378,253 $402,464 $24,211 6.4% Materials & Services 104,709 138,936 138,936 145,421 6,485 4.7% Capital Outlay - - - - - -- TOTAL $474,269 $517,189 $517,189 $547,885 $30,696 5.9% ACCOUNTING Personnel Services $121,300 $127,136 $127,136 $137,211 $10,075 7.9% Materials & Services 38,887 41,964 41,964 44,658 2,694 6.4% Capital Outlay - - - - - -- TOTAL $160,187 $169,100 $169,100 $181,869 $12,769 7.6% TOTAL SPRINGFIELD Personnel Services $1,847,069 $2,127,466 $2,127,466 $2,291,526 $164,060 7.7% Materials & Services 1,887,787 2,267,334 2,333,118 2,385,366 118,032 5.2% Capital Outlay - - - - - -- TOTAL $3,734,856 $4,394,800 $4,460,584 $4,676,892 $282,092 6.4% EUGENE ADMINISTRATIVE SERVICES Personnel Services $2,149,487 $2,587,991 $2,587,991 $2,508,683 ($79,308)-3.1% Materials & Services 758,422 987,976 987,976 994,978 7,002 0.7% Capital Outlay - - - - - -- TOTAL $2,907,909 $3,575,967 $3,575,967 $3,503,661 ($72,306)-2.0% BIOSOLIDS MANAGEMENT Personnel Services $1,388,669 $1,490,828 $1,490,828 $1,460,913 ($29,915)-2.0% Materials & Services 727,827 1,019,481 1,019,481 936,089 (83,392)-8.2% Capital Outlay - 30,000 30,000 - (30,000) -- TOTAL $2,116,496 $2,540,309 $2,540,309 $2,397,002 ($143,307)-5.6% INDUSTRIAL SOURCE CONTROL Personnel Services $652,456 $677,929 $677,929 $677,414 ($515)-0.1% Materials & Services 87,791 122,142 122,142 213,477 91,335 74.8% Capital Outlay - - - - - -- TOTAL $740,247 $800,071 $800,071 $890,891 $90,820 11.4% TREATMENT PLANT Personnel Services $4,376,978 $4,714,995 $4,714,995 $5,035,102 $320,107 6.8% Materials & Services 2,649,631 2,795,349 2,795,349 3,265,962 470,613 16.8% Capital Outlay 32,584 92,000 92,000 138,000 46,000 50.0% TOTAL $7,059,193 $7,602,344 $7,602,344 $8,439,064 $836,720 11.0% REGIONAL PUMP STATIONS Personnel Services $169,397 $211,535 $211,535 $194,052 ($17,483)-8.3% Materials & Services 255,613 303,248 303,248 270,193 (33,055)-10.9% Capital Outlay - - - - - -- TOTAL $425,010 $514,783 $514,783 $464,245 ($50,538)-9.8% BENEFICIAL REUSE SITE Personnel Services $196,810 $286,882 $286,882 $244,028 ($42,854)-14.9% Materials & Services 60,670 58,844 58,844 57,228 (1,616)-2.7% Capital Outlay - - - - - -- TOTAL $257,480 $345,726 $345,726 $301,256 ($44,470)-12.9% TOTAL EUGENE Personnel Services $8,933,797 $9,970,160 $9,970,160 $10,120,192 $150,032 1.5% Materials & Services 4,539,953 5,287,040 5,287,040 5,737,927 450,887 8.5% Capital Outlay 32,584 122,000 122,000 138,000 16,000 13.1% TOTAL $13,506,335 $15,379,200 $15,379,200 $15,996,119 $616,919 4.0% TOTAL REGIONAL BUDGET $17,241,191 $19,774,000 $19,839,784 $20,673,011 $899,011 4.5% NOTE: Does not include Major Rehabilitation, Equipment Replacement or Major Capital Outlay EXHIBIT 3 REGIONAL WASTEWATER PROGRAM OPERATING BUDGET LINE ITEM SUMMARY BY PROGRAM AREA Metropolitan Wastewater Management Commission Budget and Program Summary Page 15 FY 21-22 BUDGET AND CIP Note: * The Change compares the adopted FY 21-22 budget to the originally adopted FY 20-21 budget column. ADOPTED BUDGET AMENDED BUDGET PROPOSED BUDGET CHANGE* FY 20-21 FY 20-21 FY 21-22 INC(DECR) Administration $4,394,800 $4,460,584 $4,676,892 $282,092 Operations 15,379,200 15,379,200 15,996,119 616,919 Capital Contribution & Transfers 13,000,000 12,437,108 9,800,000 (3,200,000) Equipment Replacement - Contribution 750,000 750,000 750,000 0 Operating & Revenue Bond Reserve 9,711,214 9,711,214 10,802,255 1,091,041 Debt Service 4,260,934 4,260,934 4,110,375 (150,559) Total Operating Budget 47,496,148$ $46,999,040 $46,135,641 ($1,360,507) Funding: Beginning Balance $11,500,938 $11,003,830 $8,732,548 (2,768,390) User Fees 34,520,000 34,520,000 36,050,000 1,530,000 Other 1,475,210 1,475,210 1,353,093 (122,117) Total Operating Budget Funding 47,496,148$ $46,999,040 46,135,641$ ($1,360,507) RNG Upgrade Facilities $8,570,000 $10,694,892 $2,000,000 (6,570,000) Class A Disinfection Facilities 7,750,000 7,983,230 6,770,000 (980,000) Aeration Basin Improvements - Phase 2 1,550,000 1,891,986 440,000 (1,110,000) Glenwood Pump Station Upgrades 850,000 850,000 1,800,000 950,000 Adminstration Building Improvements 600,000 600,000 7,230,000 6,630,000 Riparian Shade Credit Program 500,000 566,397 1,370,000 870,000 Poplar Harvest Mgmt. Services 450,000 460,236 660,000 210,000 Resiliency Follow-Up 300,000 300,000 490,000 190,000 Comprehensive Facility Plan Update 200,000 299,125 600,000 400,000 Recycled Water Demonstration Project 110,000 207,101 340,000 230,000 Facility Plan Engineering Services 15,000 133,702 - 0 WPCF Lagoon Remove/Decommission - 100,000 - 0 Thermal Load Pre-Implementation - 224,834 - 0 Asset Management: Equipment Replacement Purchases 2,450,000 2,545,000 $963,000 (1,487,000) Major Rehab 610,000 1,345,000 165,000 (445,000) Major Capital Outlay - 370,000 - 0 Total Capital Projects 23,955,000$ $28,571,503 $22,828,000 ($1,127,000) Funding: Equipment Replacement $2,450,000 $2,545,000 $963,000 (1,487,000) SDC Improvement Reserve 3,450,810 3,450,810 4,414,570 963,760 Capital Reserve 18,054,190 22,575,693 17,450,430 (603,760) Total Capital Projects Funding $23,955,000 $28,571,503 $22,828,000 ($1,127,000) 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 21-22 BUDGET AND CIP BUDGET AND RATE HISTORY The graphs on page 17 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 47. 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 subsequent 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 includes 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 demographics, geography, regulatory requirements, and a range of other issues. Within Region 10, the annual change in the cost of clean water index reflected a 4.7% average increase over the past 3 years. In FY 20-21 the MWMC regional user rates remained level with no rate change over the prior year. The FY 21-22 Budget is based on a 3.5% user rate increase over the FY 20-21 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 3.5% or $0.95 increase effective July 1, 2021. Metropolitan Wastewater Management Commission Budget and Program Summary Page 17 FY 21-22 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. $18,288,200 $18,119,417 $18,667,909 $19,774,000 $20,673,011 $0 $3,000,000 $6,000,000 $9,000,000 $12,000,000 $15,000,000 $18,000,000 $21,000,000 $24,000,000 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 REGIONAL OPERATING Metropolitan Wastewater Management Commission Budget and Program Summary Page 18 FY 21-22 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 21-22 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 MWMC Financial Plan. Further details on the FY 21-22 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 21-22, $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 21-22 no additional contribution to this reserve is budgeted and the balance at June 30, 2021, 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 $186,616 for FY 21-22. Metropolitan Wastewater Management Commission Reserves Page 20 FY 21-22 BUDGET AND CIP INSURANCE RESERVE The Insurance Reserve was established to set aside funds to cover 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 21-22. 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 guidelines to establish the Operating Reserve at a minimum target of two months expenses. For FY 21-22, the Operating Reserve is budgeted at $4,215,639, which includes approximately two months of total Personnel Services, Materials and Services, and Capital Outlay in accordance with Commission policy. EXHIBIT 5 OPERATING RESERVES ADOPTED BUDGET FY 20-21 AMENDED BUDGET FY 20-21 PROPOSED BUDGET FY 21-22 Beginning Balance $11,500,938 $11,003,830 $8,732,548 User Fee Revenue 33,700,000 33,700,000 35,400,000 Septage Revenue 820,000 820,000 650,000 Other Revenue 1,265,500 1,265,500 1,250,921 Interest 181,000 181,000 75,000 Transfer from Reimbursement SDCs 24,710 24,710 23,172 Personnel Services (12,097,626)(12,097,626)(12,411,718) Materials & Services (7,550,374)(7,616,158)(8,119,293) Capital Outlay (122,000)(122,000)(138,000) Interfund Transfers (13,750,000)(13,187,108)(10,550,000) Debt Service - SRF Loan (251,429)(251,429)(104,250) Debt Service - 2016 Revenue Bond (4,009,505)(4,009,505)(4,006,125) Working Capital (900,000)(900,000)(900,000) Insurance Reserve (1,500,000)(1,500,000)(1,500,000) SRF Loan Reserve (186,616)(186,616)(186,616) 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 $3,124,598 $3,124,598 $4,215,639 Metropolitan Wastewater Management Commission Reserves Page 21 FY 21-22 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 valued over $10,000 with life expectancy greater than one year; 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 21-22 budget total $750,000, 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. Estimates used in the analysis include replacement costs, 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 21-22 are approximately $1,800,000. The projected beginning SDC Reserve balance on July 1, 2021 is $5,713,219. EQUIPMENT REPLACEMENT RESERVE ADOPTED BUDGET FY 20-21 AMENDED BUDGET FY 20-21 PROPOSED BUDGET FY 21-22 Beginning Balance $14,903,629 $15,474,952 $13,929,952 Annual Equipment Contribution 750,000 750,000 750,000 Interest 356,000 356,000 150,000 Equipment Purchases (2,450,000)(2,545,000)(963,000) Equipment Replacement Reserve $13,559,629 $14,035,952 $13,866,952 Metropolitan Wastewater Management Commission Reserves Page 22 FY 21-22 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 21-22 Budget includes a contribution from the Operating Reserve of $9,800,000. The beginning balance on July 1, 2021, is projected to be $53,327,365. Additional budget detail on the CIP, Major Capital Outlay and Major Rehabilitation Program reserves is provided below. REIMBURSEMENT SDC RESERVE ADOPTED BUDGET FY 20-21 AMENDED BUDGET FY 20-21 PROPOSED BUDGET FY 21-22 Beginning Balance $1,411,910 $1,448,096 $1,696,386 Reimbursement SDCs Collected 150,000 150,000 200,000 Interest 37,000 37,000 25,000 SDC Compliance Charge 4,000 4,000 4,000 Transfer to Debt Service (Fund 612)(24,710)(24,710)(23,172) Materials & Services (2,000)(2,000)(2,000) Reimbursement SDC Reserve $1,576,200 $1,612,386 $1,900,214 IMPROVEMENT SDC RESERVE ADOPTED BUDGET FY 20-21 AMENDED BUDGET FY 20-21 PROPOSED BUDGET FY 21-22 Beginning Balance $3,603,605 $3,812,990 $4,016,833 Improvement SDCs Collected 1,500,000 1,500,000 1,600,000 Interest 67,000 67,000 25,000 Materials & Services (2,000)(2,000)(2,000) Funding for Capital Improvement Projects (3,450,810) (3,450,810) (4,414,570) Improvement SDC Reserve $1,717,795 $1,927,180 $1,225,263 CAPITAL RESERVES ADOPTED BUDGET FY 20-21 AMENDED BUDGET FY 20-21 PROPOSED BUDGET FY 21-22 Beginning Balance $49,103,179 $53,391,085 $53,327,365 Transfer from Operating Reserve 13,000,000 12,437,108 9,800,000 Interest 1,192,000 1,192,000 525,000 Other Income 10 10 10 Funding For Capital Improvement Projects (17,444,190)(20,860,693)(17,285,430) Funding For Major Rehabilitation (610,000)(1,345,000)(165,000) Funding For Major Capital Outlay - (370,000)- Capital Reserve $45,240,999 $44,444,510 $46,201,945 OPERATING PROGRAMS Metropolitan Wastewater Management Commission Staffing Page 23 FY 21-22 BUDGET AND CIP EXHIBIT 6 REGIONAL WASTEWATER PROGRAM* ORGANIZATION CHART FY 21-22 Metropolitan Wastewater Management Commission CITY OF EUGENE **Wastewater Division79.36 FTE Division Director.85 FTE Operations Manager.93 FTE Wastewater Treatment Plant41.11 FTE Regional Pump Stations 1.31 FTE Computer Services2.73 FTE Biosolids Management 12.67 FTE Operations 16.0 FTE Beneficial Reuse Site 1.82 FTE Equipment Maintenance 10.3 FTE Facility Maintenance10.32 FTE Laboratory2.65 FTE Industrial Pretreatment 5.35 FTE Stores 2.67 FTE Env Data Analyst.65 FTE User Fee Support1.0 FTE Operations 6.97 FTE Operations .53 FTE Equipment Maintenance.85 FTE Equipment Maintenance .59 FTE Equipment Maintenance 2.57 FTE Facility Maintenance 2.03 FTE Facility Maintenance.39 FTE Laboratory 1.27 FTE Laboratory.66 FTE Laboratory.15 FTE Regulations &Enforcement 3.38 FTE Admin Support5.36 FTE Support Services 15.32 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 Assistant City Manager .03 FTE MWMC Executive Officer/ General Manager.75 FTE Administration Support .30 FTE Accounting.88 FTE MWMC Administration12.85 FTE Industrial Pretreatment3.25 FTE Administration Support1.85 FTE Regulations & Enforcement2.95 FTE Budget & Financial Management1.15 FTE Property/ Risk Mgmt .20 FTE Customer Service.25 FTE Public Education2.0 FTE Construction Management5.40 FTE CITY OF SPRINGFIELD **Environmental Services Division & Finance Department 17.76 FTE Facility Maintenance.46 FTE Special Projects/ Planning 2.00 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 21-22 BUDGET AND CIP BUDGET BUDGET PROPOSED FTE CLASSIFICATION FY 19-20 FY 20-21 FY 21-22 CHANGE SPRINGFIELD ENVIRONMENTAL SERVICES & FINANCE Accountant 0.80 0.80 0.80 - Accounting Manager 0.08 0.08 0.08 - Administrative Specialist 2.65 2.65 2.65 - Civil Engineer/Design & Construction Coordinator 3.00 3.00 3.00 - Assistant City Manager 0.08 0.05 0.03 (0.02) Environmental Management Analyst 0.90 0.90 1.90 1.00 Environmental Services Program Manager 0.80 0.80 0.80 - Environmental Services Supervisor 0.95 1.95 1.95 - Environmental Services Technician 2.00 2.00 2.00 - ESD Division Director/MWMC Executive Officer 0.80 0.80 0.80 - Management Analyst 0.75 0.75 0.75 - Managing Civil Engineer 1.75 1.00 1.00 - Public Information & Education Analyst 2.00 2.00 2.00 - TOTAL SPRINGFIELD 16.56 16.78 17.76 0.98 EXHIBIT 7 REGIONAL WASTEWATER PROGRAM POSITION SUMMARY Metropolitan Wastewater Management Commission Staffing Page 25 FY 21-22 BUDGET AND CIP BUDGET BUDGET PROPOSED FTE CLASSIFICATION FY 19-20 FY 20-21 FY 21-22 CHANGE EUGENE WASTEWATER DIVISION & OTHER PW Administrative Specialist, Sr 1.78 1.78 1.78 - Administrative Specialist 0.95 0.95 0.95 - Application Support Technician, Sr 0.95 0.95 0.95 - Application Systems Analyst 1.78 1.78 1.78 - Custodian 1.00 2.00 2.00 - 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 13.25 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 Plant Operations Manager 0.93 0.93 0.93 - Wastewater Operations Supervisor 2.00 2.00 2.00 - Wastewater Plant 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 78.36 79.36 79.36 - GRAND TOTAL 94.92 96.14 97.12 0.98 POSITION SUMMARY EXHIBIT 7 (Continued) REGIONAL WASTEWATER PROGRAM Metropolitan Wastewater Management Commission Springfield Budget Detail Page 26 FY 21-22 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 ▪ 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 21-22 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 ESD Director serves as the MWMC Executive Officer and 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 21-22 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 division in the Springfield Finance Department, in coordination with ESD. Springfield Accounting staff provides oversight of financial control systems, ensures compliance with all local, state and federal accounting requirements for MWMC including debt management and treasury management services. This division 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 21-22, 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. ▪ Planning operationally and financially to begin the MWMC’s NPDES permit renewal, the target date set by the DEQ for permit issuance is by the end of calendar year 2021. Metropolitan Wastewater Management Commission Springfield Budget Detail Page 28 FY 21-22 BUDGET AND CIP BUDGET CHANGES FOR FY 21-22 The budget for Springfield Personnel Services, Materials and Services, and Capital Outlay for FY 21-22 totals $4,676,892 representing an overall increase of $280,092 or 6.4% from the adopted FY 20-21 budget, as displayed in Exhibit 8 on page 29. Personnel Services Personnel Services totaling $2,291,526 represents a FY 21-22 increase of $164,060 or 7.7% above the originally adopted FY 20-21 budget. The notable changes are summarized below: Staffing The FY 21-22 staffing budget includes a net increase of 0.98 Full Time Equivalent (FTE). The portion of the Public Works Director position .05 FTE was replaced with .03 FTE of the Assistant City Manager along with the added Environmental Management Analyst 1.0 FTE position, resulting in a total staffing level at 17.76 FTE in Springfield. Regular Salaries and Overtime - $1,471,013, an increase of $104,004 or 7.6% Salaries are based upon the negotiated management/labor contracts as approved by the Springfield City Council, and staffing levels. Employee Benefits - $461,321, an increase of $41,702 or 9.9% The employee benefits consist mainly of PERS/OPSRP retirement system costs, FICA and Medicare contributions. Health Insurance - $359,192, an increase of $18,353 or 5.4% 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 $2,363,366 in FY 21-22, representing an increase of $118,033 or 5.2% above the adopted FY 20-21 budget. The notable changes are summarized below: Billing & Collection Expense - $730,000, an increase of $14,000 or 2.0% The $14,000 increase includes contracted billing services for Eugene and Springfield utility billing services combined, as funded through the Springfield portion of the regional budget. The increase reflects growth in customer transactions and associated billing service contracts. Computer Software & Licenses - $66,132, an increase of $60,750 The $60,750 increase reflects Capital Construction software renewal. Internal & Indirect Charges Combined - $615,191, an increase of $50,413 or 9.3% The $50,413 increase is based on changes in overhead costs as programmed in the FY 21-22 budget, when compared FY 20-21. Internal charges are determined by the City of Springfield, and indirect costs are based on a methodology approved by the federal government, which is outlined in the MWMC Intergovernmental Agreement. Metropolitan Wastewater Management Commission Springfield Budget Detail Page 29 FY 21-22 BUDGET AND CIP Note: * Change column compares the proposed FY 21-22 Budget to the adopted FY 20-21 Budget. ACTUALS ADOPTED BUDGET AMENDED BUDGET PROPOSED BUDGET FY 19-20 FY 20-21 FY 20-21 FY 21-22 Personnel Services $1,847,069 $2,127,466 $2,127,467 $2,291,525 $164,059 7.7% Materials & Services 1,887,287 2,267,334 2,333,118 2,385,367 118,033 5.2% Capital Outlay 0 0 0 0 0 0.0% Budget Summary $3,734,356 $4,394,800 $4,460,585 $4,676,892 $282,092 6.4% FY 21-22 INCR/(DECR) EXHIBIT 8 SPRINGFIELD ADMINISTRATION PROGRAM PROPOSED FY 21-22 BUDGET SUMMARY CHANGE * $3,941,900 $3,969,666 $4,183,452 $4,394,800 $4,676,892 $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 5-YEAR MWMC BUDGET COMPARISON SPRINGFIELD ADMINISTRATION Metropolitan Wastewater Management Commission Springfield Budget Detail Page 30 FY 21-22 BUDGET AND CIP ADOPTED AMENDED PROPOSED ACTUALS BUDGET BUDGET BUDGET FY 19-20 FY 20-21 FY 20-21 FY 21-22 PERSONNEL SERVICES Regular Salaries $1,178,375 $1,361,268 $1,361,268 $1,465,272 $104,004 7.6% Overtime 0 5,741 5,741 5,741 0 0.0% Employee Benefits 367,536 419,619 419,619 461,321 41,702 9.9% Health Insurance 301,159 340,839 340,839 359,192 18,353 5.4% Total Personnel Services $1,847,069 $2,127,466 $2,127,467 $2,291,526 $164,060 7.7% FTE 16.56 16.78 16.78 17.76 0.98 5.8% MATERIALS & SERVICES Billing & Collection Expense $658,413 $716,000 $716,000 $730,000 $14,000 2.0% Property & Liability Insurance 296,645 335,000 335,000 345,000 10,000 3.0% Contractual Services 126,285 139,000 139,000 143,373 4,373 3.1% Attorney Fees and Legal Expense 36,722 185,005 185,005 183,022 (1,983)-1.1% WPCF/NPDES Permits 138,232 165,800 165,800 167,000 1,200 0.7% Materials & Program Expense 104,059 107,122 172,906 96,734 (10,388)-9.7% Computer Software & Licenses 43,792 5,382 5,382 66,132 60,750 1128.8% Employee Development 10,015 23,475 23,475 20,760 (2,715)-11.6% Travel & Meeting Expense 13,230 27,800 27,800 18,154 (9,646)-34.7% Internal Charges 131,814 218,974 218,974 230,195 11,221 5.1% Indirect Costs 328,080 343,776 343,776 384,996 41,220 12.0% Total Materials & Services $1,887,287 $2,267,334 $2,333,118 $2,385,366 $118,032 5.2% CAPITAL OUTLAY Total Capital Outlay $0 $0 $0 $0 $0 0.0% TOTAL $3,734,356 $4,394,800 $4,460,585 $4,676,892 $282,092 6.4% INCR/(DECR) CHANGE SPRINGFIELD ADMINISTRATION LINE ITEM BUDGET SUMMARY EXHIBIT 9 Metropolitan Wastewater Management Commission Eugene Budget Detail Page 31 FY 21-22 BUDGET AND CIP Program Responsibilities ▪ Facility Operations ▪ Facility Maintenance ▪ Biosolids Management ▪ Environmental Services ▪ Management Information Services ▪ Administration and 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 land application, regional laboratory services, and an industrial source control and pretreatment program in conjunction with City of Springfield staff. REGIONAL WASTEWATER TREATMENT - FACILITY OPERATIONS The Wastewater Division operates the WPCF to treat residential, commercial, and industrial wastes to achieve an effluent quality that protects 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. REGIONAL WASTEWATER TREATMENT - FACILITY 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, regional pump stations, pressure sewers, as well as the Biosolids Management Facility, the Beneficial Reuse Site, and Biocycle Farm. These sections provide a preventative maintenance program to maximize equipment life and reliability; a corrective maintenance program to repair unanticipated failures; and a facility maintenance program to maintain the buildings, treatment structures, and grounds. BIOSOLIDS AND RECYCLED WATER MANAGEMENT The Residuals Management section of the Wastewater Division operates the Biosolids Management Facility (BMF) and Biocycle Farm to process and land apply biological solids (biosolids) produced as a result of the activated sludge treatment of wastewater. After further processing the biosolids from the WPCF, the dried material is applied to approved agricultural land. Biosolids are also applied on poplar trees at the Biocycle Farm as a beneficial nutrient and soil conditioner. In addition, this section utilizes recycled water for the processing of biosolids and for irrigation. This section also operates the Beneficial Reuse Site which formerly served to treat wastewater from food processing operations. Metropolitan Wastewater Management Commission Eugene Budget Detail Page 32 FY 21-22 BUDGET AND CIP ENVIRONMENTAL SERVICES Environmental Services is comprised of Industrial Source Control (Pretreatment), Analytical Services, and Sampling Team. Industrial Source Control (ISC) - The pretreatment program is a regional activity implemented jointly by the cities of Eugene and Springfield. The ISC 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 and discharge authorization system for industrial and commercial users of the wastewater collection system. This permit system, common to both Eugene and Springfield, implements necessary prohibitions and 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 and commercial discharges in Eugene and evaluating the impact of their 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, surface water, and groundwater. Information from the laboratory is used to evaluate the performance of the treatment process, 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 and field monitoring 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, biosolids, application site soils, and stormwater samples. 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. Metropolitan Wastewater Management Commission Eugene Budget Detail Page 33 FY 21-22 BUDGET AND CIP 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 (EMS), safety, and training programs, and an inventory/storeroom administrative 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. PROGRAMS AND SIGNIFICANT SERVICE/EXPENDITURE CHANGES In FY 21-22, Eugene staff will support the following major regional initiatives in addition to ongoing operations and maintenance 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 21-22 BUDGET AND CIP SIGNIFICANT CHANGES IN THE O&M BUDGET FOR FY 21-22 The FY 21-22 budget for Operations and Maintenance of the regional wastewater treatment facilities (personnel, materials and services, and capital outlay) totals $15,996,119. The amount represents an increase of $616,919 or 4% from the FY 20-21 budget. The significant cost centers for the budget include personnel costs, chemicals, computer equipment and software, and utilities. Significant items and changes for the FY 21-22 Operations and Maintenance budget as compared to the FY 20-21 budget include: Personnel Services Personnel Services totaling $10,120,192 represents an FY 21-22 increase of $150,032 or 1.5%. There is no change in the current staffing level for FY 21-22, which is currently at 79.36 Full Time Equivalent (FTE) positions. The notable changes are in the following budget categories: Health Insurance – $1,743,549, an increase of $100,941 or 6.1% Employer health care costs are rising primarily due to uncertainty about preventative and elective care expenses owing to the COVID-19 pandemic. Overtime – $33,100, a decrease of $47,300 or -58.8% Analysis of overtime expenses from prior fiscal years indicates that a decrease in budgeted overtime would be adequate to sustain O&M work and the expected need for overtime at the current service level. Workers Comp/Unemployment Insurance – $122,079, an increase of $14,583 or 13.6% Employer costs for workers compensation and unemployment insurance are rising due to heightened risk for employee safety owing to the COVID-19 pandemic. Materials and Services The Materials and Services budget totaling $5,737,927 represents an FY 21-22 increase of $450,887 or 8.5%. The notable changes are in the following budget categories: Chemicals – $454,350, a net increase of $41,500 or 10.1% The costs for hypochlorite, sodium bisulfite, polymer (both dry and liquid), and other chemicals have increased substantially. Unit prices are established through regional competitive price agreements, and resupply orders are placed depending on the timing of treatment process and O&M activity. Computer Equipment and Supplies – $385,753, a net increase of $105,793 or 37.8% Eugene has instituted a new internal service rate across the organization to establish a fund for future Corporate Software Replacements. The corporate software contribution for FY 21-22 is $47,600 or roughly 45% of the increase to the Computer Equipment budget category. Other increases are for network service, software application licensing, and computer hardware. Contractual Services – $459,300, an increase of $55,186 or 13.7% Greater need for contractual services is anticipated for FY 21-22, and this category includes analytical services for specific laboratory work, professional services (engineering), Lane County Sheriff’s work crew, solid waste disposal and recycling, and specialty custodial services. Metropolitan Wastewater Management Commission Eugene Budget Detail Page 35 FY 21-22 BUDGET AND CIP Risk Insurance – Employee Liability – $72,912, a net decrease of $47,276 or 39.3% City of Eugene’s one-time surcharge for the construction of an Emergency Operations Center was for FY 20-21 only and is not included in the FY21-22 budget. In addition, adjustments were made for a decrease in Eugene’s employee liability insurance. Utilities – $1,255,297, a net increase of $159,297 or 14.5% The Utilities account includes the purchase of electrical power, natural gas, water, and sewer charges for all regional facilities. The increase for FY 21-22 is in anticipation of higher utility expenses once the Renewable Natural Gas system (CIP-P80095) becomes operational in spring- summer 2021. Capital Outlay The FY 21-22 Capital Outlay budget includes $138,000 for the items listed below Pipe Repair Kits, Resiliency – The pipe repair kits will be kept in stock for emergency repairs to damaged conveyance pipelines after a seismic event. This is consistent with recommended mitigation activities of MWMC’s Disaster Mitigation and Recovery Plan. Microwave Digestion System, ESB Laboratory – This equipment will be used to prepare water quality samples for immediate analysis and meet lower detection limits required by a rule change. The microwave digestion system is standalone equipment that does not require software or service contracts. Project Description FY 21-22 Proposed Budget Pipe Repair Kits, Resiliency Preparedness $100,000 Microwave Digestion System, ESB Laboratory 38,000 Total $138,000 Capital Outlay Metropolitan Wastewater Management Commission Eugene Budget Detail Page 36 FY 21-22 BUDGET AND CIP ACTUALS ADOPTED BUDGET AMENDED BUDGET PROPOSED BUDGET FY 19-20 FY 20-21 FY 20-21 FY 21-22 Personnel Services $8,386,225 $9,970,160 $9,970,160 $10,120,192 $150,032 1.5% Materials & Services 4,904,097 5,287,040 5,287,040 5,737,927 450,887 8.5% Capital Outlay 32,584 122,000 122,000 138,000 16,000 13.1% Budget Summary $13,322,906 $15,379,200 $15,379,200 $15,996,119 $616,919 4.0% NOTE: Does not include Major Rehabilitation or Equipment Replacement INCR/(DECR) EXHIBIT 10 EUGENE - OPERATIONS AND MAINTENANCE PROGRAM PROPOSED FY 21-22 BUDGET SUMMARY CHANGE * $14,346,300 $13,367,484 $14,484,457 $15,379,200 $15,996,119 $0 $3,000,000 $6,000,000 $9,000,000 $12,000,000 $15,000,000 $18,000,000 FY 17-18 FY 18-19 FY 19-20 FY 20-21 FY 21-22 5-YEAR MWMC BUDGET COMPARISON EUGENE -OPERATIONS AND MAINTENANCE Metropolitan Wastewater Management Commission Eugene Budget Detail Page 37 FY 21-22 BUDGET AND CIP ADOPTED AMENDED PROPOSED ACTUAL BUDGET BUDGET BUDGET FY 19-20 FY 20-21 FY 20-21 FY 21-22 PERSONNEL SERVICES Regular Salaries $5,166,945 $5,650,713 $5,650,713 $5,690,627 $39,914 0.7% Overtime 33,632 80,400 80,400 33,100 (47,300)-58.8% Employee Benefits 2,123,582 2,488,943 2,488,943 2,530,837 41,894 1.7% Workers' Comp/Unemploy Ins 107,997 107,496 107,496 122,079 14,583 13.6% Health Insurance 1,501,641 1,642,608 1,642,608 1,743,549 100,941 6.1% Total Personnel Services $8,933,797 $9,970,160 $9,970,160 $10,120,192 $150,032 1.5% FTE 78.36 79.36 79.36 79.36 0.00 0.0% MATERIALS & SERVICES Utilities $729,428 $1,096,000 $1,096,000 $1,255,297 $159,297 14.5% Fleet Operating Charges 485,999 490,784 490,784 448,914 (41,870)-8.5% Maintenance-Equip & Facilities 188,262 274,670 274,670 234,300 (40,370)-14.7% Contractual Services 379,598 404,132 404,132 459,300 55,168 13.7% Materials & Program Expense 656,555 822,976 822,976 820,001 (2,975)-0.4% Chemicals 383,883 412,850 412,850 454,350 41,500 10.1% Parts & Components 362,098 387,480 387,480 407,100 19,620 5.1% Risk Insurance - Employee Liability 49,979 120,188 120,188 72,912 (47,276)-39.3% Computer Equip, Supplies, Maint 283,289 279,960 279,960 385,753 105,793 37.8% Indirects 1,020,863 998,000 998,000 1,200,000 202,000 20.2% Total Materials & Services $4,539,954 $5,287,040 $5,287,040 $5,737,927 $450,887 8.5% CAPITAL OUTLAY Motorized Vehicles $0 $0 $0 $0 $0 0.0% Capital Outlay - Other 32,584 122,000 122,000 138,000 16,000 13.1% Total Capital Outlay $32,584 $122,000 $122,000 $138,000 $16,000 13.1% TOTAL $13,506,335 $15,379,200 $15,379,200 $15,996,119 $616,919 4.0% EXHIBIT 11 EUGENE - OPERATIONS & MAINTENANCE LINE ITEM BUDGET SUMMARY CHANGE INCR/(DECR) CAPITAL PROGRAM Metropolitan Wastewater Management Commission Capital Improvement Program Page 38 FY 21-22 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 21-22 CIP Budget, the FY 21-22 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). 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 is 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 39 FY 21-22 BUDGET AND CIP Capital Program Funding and Financial Planning Methods and Policies This annual budget document presents the FY 21-22 CIP Budget, the FY 21-22 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 the 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 primarily 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 fund capital projects, including major rehabilitation, to reduce the amount of borrowing necessary to finance capital projects. In addition, a significant amount of the CIP is funded with Improvement System Development Charges (SDC) in FY 21- 22. 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 with a life expectancy greater than one year; 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. Accordingly, the 2004 FP projections were based on the 20-city average Engineering News Record Construction Cost Index (ENRCCI). In addition, City of Springfield staff and MWMC design consultants monitor construction trends in Oregon. Metropolitan Wastewater Management Commission Capital Improvement Program Page 40 FY 21-22 BUDGET AND CIP Regional Wastewater Capital Program Status and Budget CIP Project Status and Budget The FY 21-22 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 21-22 project budgets is $21,700,000. Each capital project represented in the FY 21-22 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. In 2019, the MWMC Resiliency Planning consultant study focused on seismic (Cascadia magnitude 9.0 earthquake) and major flooding event(s), and recommended some infrastructure multi-year improvements for consideration during the CIP Budgeting process. Completed Capital Projects The following capital projects were completed in FY 20-21: ▪ Thermal Load Mitigation: Pre-Implementation ▪ Facilities Plan Engineering Services ▪ Decommission WPCF Lagoon Carryover Capital Projects All or a portion of remaining funding for active capital projects in FY 20-21 is carried forward to the FY 21-22 Budget. The on-going carryover projects are: ▪ Administration Building Improvements ▪ Class A Disinfection Facilities ▪ Renewable Natural Gas (RNG) Upgrade Facilities ▪ Glenwood Pump Station Upgrades ▪ Riparian Shade Credit Program ▪ Poplar Harvest Management Services ▪ Comprehensive Facility Plan Update ▪ Resiliency Follow-Up ▪ Aeration Basin Improvements ▪ Recycled Water Demonstration Project Metropolitan Wastewater Management Commission Capital Improvement Program Page 41 FY 21-22 BUDGET AND CIP Overall, the budgeting for these projects follows, and is consistent with, the estimated cost of the listed capital projects and new information gathered during the MWMC design development process. FY 21-22 Capital Budget Summary (Exhibit 12) Exhibit 12 displays the adjusted budget and end-of-year expenditure estimates for FY 20-21, the amount of funding projected to be carried over to FY 21-22 and additional funding for existing and/or new projects in FY 21-22. FY 20-21 ADJUSTED BUDGET FY 20-21 ESTIMATED ACTUALS FY 20-21 CARRYOVER TO FY 21-22 NEW FUNDING FOR FY 21-22 TOTAL FY 21-22 BUDGET Project to be Completed in FY 20-21 Thermal Load Mitigation: Pre-Implementation 224,834 224,834 0 0 0 Facilities Plan Engineering Services 133,702 128,000 0 0 0 Decommission WPCF Lagoon 100,000 25,000 0 0 0 Projects to be Carried Over to FY 21-22 Administration Building Improvements 600,000 370,000 230,000 7,000,000 7,230,000 Class A Disinfection Facilities 7,983,230 1,213,230 6,770,000 0 6,770,000 Renewable Natural Gas Upgrades 10,694,892 8,694,892 2,000,000 0 2,000,000 Glenwood Pump Station Upgrades 850,000 250,000 600,000 1,200,000 1,800,000 Riparian Shade Credit Program 566,397 276,397 290,000 1,080,000 1,370,000 Poplar Harvest Management Services 460,236 165,236 295,000 365,000 660,000 Comprehensive Facility Plan Update 299,125 109,125 190,000 410,000 600,000 Resiliency Follow-Up 300,000 210,000 90,000 400,000 490,000 Aeration Basin Improvements - Phase 2 1,891,986 1,451,986 440,000 0 440,000 Recycled Water Demonstration Project 207,101 42,101 165,000 175,000 340,000 TOTAL Capital Projects $24,311,503 $13,160,801 $11,070,000 $10,630,000 $21,700,000 EXHIBIT 12 Summary of FY 21-22 MWMC Construction Program Capital Budget Metropolitan Wastewater Management Commission Capital Improvement Program Page 42 FY 21-22 BUDGET AND CIP FY 21-22 Asset Management Capital Program and Budget The AMCP consists of the following three programs: ▪ Equipment Replacement ▪ Major Rehabilitation ▪ Major Capital Outlay The FY 21-22 budget of each program is described below. Equipment Replacement Program - Budget The FY 21-22 Capital Programs budget includes $963,000 in Equipment Replacement purchases that are identified on the table below. 800KW Jenbacher/CoGen Rebuild – The cogen unit provides redundant heat for the digesters and generates electricity which reduces the amount of utility power purchased. The engine will be due for a 20,000-hour upper end rebuild. Variable Frequency Drives (VFDs), Irvington Pump Station – Variable frequency drives (VFDs) control the speed of pump motors and improve energy efficiency. Their replacement will restore reliable operation of the three 250 horsepower pumps. Project Description FY 21-22 Proposed Budget 800KW Jenbacher/CoGen Upper End Rebuild, Plant $120,000 Variable Frequency Drives (VFDs), Irvington Pump Station 115,000 Grit Channel Drive Chains (x4), Pretreatment, Plant 110,000 Pickup Truck, 1T 4WD, w/ Upfit (incl. Utility Box, Crane/Generator), BMF 100,000 Cargo Van 1T, w/ Upfit (incl. Eyewash, Storage Racks), Sampling Team 84,000 Cathodic Protection Devices, Secondary Clarifiers, Plant 80,000 Transformer Unit #1-2 Mains, Gauges Rebuild, Pretreatment and Digesters, Plant 55,000 Pickup Truck, 3/4T Longbox, Facilities Maintenance 50,000 Mercury Analyzer / Discrete Analyzer, ESB/Metals Laboratory, Plant 40,000 Hydraulic Power Broom Attachment (for CAT/tool carrier), BMF 40,000 Washwater Booster Pump, Belt Filter Presses, BMF 30,000 Tires, Sterling Semi Tractors and Trailers (x3 each)30,000 All-Terrain Vehicle (ATV), BMF 20,000 Sludge Blanket Finder, Transmitter and Elements, Primary Clarifiers, Plant 20,000 Residual Chlorine Analyzer, Final, Plant 16,000 Transformer Units, Coating, Pretreatment and Digesters, Plant 15,000 Moisture Balance, Smart System 5, Biosolids Drying Lab, BMF 15,000 Total Kjeldahl Nitrogen (TKN) Digestion Block, ESB/Nutrients Laboratory, Plant 13,000 Auger Float Function, Mulcher, CAT 586C Tractor, BMF 10,000 Total $963,000 Equipment Replacement Metropolitan Wastewater Management Commission Capital Improvement Program Page 43 FY 21-22 BUDGET AND CIP Grit Channel Drive Chains (x4) – These chains drive the grit collector mechanisms in the aerated grit removal channels. They are failing due to corrosion so alternate materials will be evaluated. Pickup Truck, 1T 4WD w/ Utility Upfit, BMF – This vehicle is used at the Biocycle Farm, BMF, and BRS to meet operational and maintenance needs. Sampling Team Van w/Upfits – This vehicle is used to conduct field work, monitoring, and sampling to support environmental and compliance programs. Replacing this vehicle will improve the efficiency and safety of field activities. Cathodic Protection Devices – The cathodic protection system protects buried pipe against corrosion. The sacrificial anodes are nearly depleted and need to be replaced to restore the system’s protective function. Transformer Units #1-2 Mains – After nearly forty years of service, the gauges and indicators on three transformers have failed and need to be replaced. The main components of the transformers have remaining service life. Pickup Truck, 3/4T Longbox – This vehicle has exceeded its projected life. High-Level Mercury Analyzer, Metals Lab – This analyzer tests for mercury in water, soil, and biosolid samples to support environmental and compliance programs. Hydraulic Power Broom, BMF – This tractor attachment is used to sweep the air drying beds during biosolids drying at the BMF. At fourteen years in service, the power broom attachment is beyond repair and requires replacement. Washwater Booster Pump, Belt Filter Presses, BMF – This pump and filter system supplies water to flush the belt filter press belts of any solids accumulated during operation. Replacing this system will ensure reliable and efficient operation of the presses. Tires, Sterling Semi Tractors & Trailers – These tractors and trailers are used to haul debris/grit collected at pretreatment to the landfill and to haul biosolids. After 15 years of service, the wear on the tires has advanced enough to warrant replacement. All-Terrain Vehicle (ATV), BMF –This vehicle is used for operational tasks, maintenance, and environmental sampling at the Biocycle Farm, BMF and BRS. Sludge Blanket Finder – The sludge blanket detectors are used to measure the depth of settled sludge in clarifiers. Replacement will help maintain reliability in data collection for process control. Residual Chlorine Analyzer – This analyzer measures the amount of chlorine remaining in the effluent so the proper dechlorination dosing can be calculated. Replacement will maintain reliability in providing effective disinfection with economical chemical use. Transformer Units, Coatings – The factory coating on two transformers has failed and needs to be replaced to prevent corrosion. Moisture Balance, Biosolids Drying Lab, BMF – This analytical balance is used to produce data results used in the operations and process-control at the BMF. Metropolitan Wastewater Management Commission Capital Improvement Program Page 44 FY 21-22 BUDGET AND CIP Total Kjeldahl Nitrogen (TKN) Analysis System, Nutrients Lab – This analysis system tests for Total Kjeldahl Nitrogen (TKN) in water, soil, and biosolid samples to support environmental and compliance programs. Auger Float Function, CAT 586C Mulcher, BMF – The float function attachment for the tractor is used at the Biocycle Farm, BMF, and BRS for operations and maintenance. Use of this attachment prolongs the life of equipment and the air drying beds. Major Rehabilitation Program - Budget The FY 21-22 Capital Programs budget includes $165,000 for Major Rehabilitation projects that are identified on the table below. Grit Channels, Concrete Rehab, Pretreatment – The highly corrosive environment of the aerated grit channels has caused the cement in the concrete walls to soften and flake off. If left untreated, the corrosion will continue until the walls experience structural failure. Repairs will replenish lost material and return the walls to their design strength. MWMC Facilities/Building Improvements – This expenditure will go towards improvements to the functionality of existing workspaces and buildings at the treatment plant and MWMC facilities. Major Capital Outlay There are no new requests for Major Capital Outlay in FY 21-22. Asset Management Capital Budget Summary The following table summarizes the FY 21-22 Asset Management Capital Program Budget by project type showing a total AMCP budget of $1,128,000. Project Description FY 21-22 Proposed Budget Grit Channels, Expansion Joints and Concrete, Pretreatment, Plant $150,000 MWMC Facilities/Building Improvements 15,000 Total $165,000 Major Rehabilitation Project Description FY 21-22 Proposed Budget Equipment Replacement $963,000 Major Rehabilitation 165,000 Major Capital Outlay - Total $1,128,000 Asset Management Capital Project Budget Metropolitan Wastewater Management Commission Capital Improvement Program Page 45 FY 21-22 BUDGET AND CIP FY 22-23 Asset Management Capital Program Status and Budget The AMCP consists of the following programs: ▪ Equipment Replacement ▪ Major Rehabilitation ▪ Major Capital Outlay The FY 22-23 budget and status of each program is described below. Equipment Replacement Program – Budget Forecast The FY 22-23 Capital Programs budget includes $1,220,000 in Equipment Replacement purchases that are identified in the table below. Tractor, Paddle Mixer – This tractor attachment is used to mix the biosolids in the air drying beds. Tractor/Loader, Integrated Tool Carrier – The integrated tool carrier performs a variety of functions including sweeping drying beds, biosolids production, biosolids application, and lifting and moving heavy objects. Sodium Hypochlorite Tank #1 – The cost to repair degradation to the chemical storage tank is greater than half the cost of a new tank. Sludge Grinder – The grinder is a critical spare to chop-up trash collected on the bar screens before it is dewatered and sent to the landfill. This will replace the current spare for which parts are no longer available. Air Supply Unit, Controls – The controls for the air supply system in the secondary control complex are obsolete and inefficient. New controls will improve energy efficiency and control of conditioned spaces. Grit Channels, Baffles – Baffles in the grit channels assist with separating grit from incoming wastewater. These baffles were made of treated wood and are rotting. Pickup Truck – Replacement of maintenance pickup which has reached the end of its economic useful life. Sedan 4-Door, EV/Hybrid – Replacement of 20-year old passenger vehicle. Project Description FY 22-23 Forecast Budget Tractor, Paddle Mixer $546,000 Tractor,/Loader, Integrated Tool Carrier (Catepillar)350,000 Sodium Hypochlorite Tank 100,000 Sludge Grinder 60,000 Air Supply Unit, Controls 50,000 Grit Channels, Baffles 50,000 Pickup Truck 35,000 Sedan 4-Door 29,000 Total $1,220,000 Equipment Replacement Metropolitan Wastewater Management Commission Capital Improvement Program Page 46 FY 21-22 BUDGET AND CIP Major Rehabilitation Program - Budget The FY 22-23 Capital Programs budget includes $416,000 for Major Rehabilitation projects that are identified in the table below. Interior Dome Recoating, Digester #1 – An industrial epoxy coating on the interior of the digester dome protects the structural concrete from corrosive hydrogen sulfide gas. The existing coating is delaminating. Interior Dome Recoating, Digester #3 – An industrial epoxy coating on the interior of the digester dome protects the structural concrete from corrosive hydrogen sulfide gas. The existing coating is delaminating. Masonry Wall Sealing – The exterior masonry walls at the BMF will be sealed for protection from water instrusion. Major Capital - Budget The FY 22-23 Capital Program budget includes $2,000,000 for the Major Capital items listed below. Distributed Control System – The plant’s distributed control system hardware is nearing its “end of support” phase and should be replaced to maintain supportability. Summary of FY 22-23 Asset Management Capital Program Budget Project Description FY 22-23 Forecast Budget Interior Dome Recoating, #1 Digester $200,000 Interior Dome Recoating, #3 Digester 200,000 Masonry Wall Sealing 16,000 Total $416,000 Major Rehabilitation Project Description FY 22-23 Forecast Budget Distributed Control System $2,000,000 Total $2,000,000 Major Capital Outlay Project Description FY 22-23 Forecast Budget Equipment Replacement $1,220,000 Major Rehabilitation 416,000 Major Capital Outlay 2,000,000 Total $3,636,000 Asset Management Capital Project Budget Metropolitan Wastewater Management Commission Capital Improvement Program Page 47 FY 21-22 BUDGET AND CIP 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 20-21 Budget that has been carried forward by one year to FY 21-22. Changes to the 5-Year Plan typically occur from year to year as more information becomes available and evaluated such as the P80096 Resilency Planning study and the MWMC permit renewal outcomes. Exhibit 13 displays the MWMC 5-Year Capital Plan programs budget, which includes $76,650,000 in planned capital projects and $13,506,000 planned asset management capital projects for an overall 5-Year Capital Plan Budget of $90,156,000. FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26 TOTAL CAPITAL PROJECTS Biosolids Management Poplar Harvest Management Services 660,000 660,000 Non-Process Facilities and Facilities Planning Comprehensive Facility Plan Update 1 600,000 1,470,000 2,070,000 Facility Plan Engineering Services 120,000 120,000 130,000 370,000 Conveyance Systems Glenwood Pump Station 1,800,000 1,800,000 Plant Performance Improvements Administration Building Improvements 7,230,000 7,230,000 Class A Disinfection Facilities (1)6,770,000 6,770,000 Renewable Natural Gas Upgrades 2,000,000 2,000,000 Riparian Shade Credit Program (1)1,370,000 1,000,000 1,000,000 500,000 10,000 3,880,000 Resiliency Follow-Up 490,000 3,000,000 300,000 300,000 800,000 4,890,000 Aeration Basin Improvements - Phase 2 440,000 1,600,000 6,900,000 6,000,000 14,940,000 Recycled Water Demonstration Projects 340,000 340,000 Tertiary Filtration - Phase 2 3,500,000 8,500,000 4,500,000 16,500,000 Thermal Load Mitigation Implementation (2)3,000,000 3,000,000 3,000,000 9,000,000 Waste Activated Sludge Thickening 1,200,000 5,000,000 6,200,000 TOTAL CAPITAL PROJECTS $21,700,000 $11,970,000 $14,520,000 $16,520,000 $11,940,000 $76,650,000 ASSET MANAGEMENT Equipment Replacement 963,000 1,220,000 1,112,000 1,770,000 4,110,000 9,175,000 Major Rehabilitation 165,000 416,000 420,000 680,000 650,000 2,331,000 Major Capital Outlay --2,000,000 ------2,000,000 TOTAL ASSET MANAGEMENT 1,128,000 3,636,000 1,532,000 2,450,000 4,760,000 13,506,000 TOTAL CAPITAL IMPROVEMENTS $22,828,000 $15,606,000 $16,052,000 $18,970,000 $16,700,000 $90,156,000 Notes: (1) The funding for Riparian Shade and Class A Disinfection Facilities projects were allocated from previously budgeted Thermal Load Mitigation Implementation. (2) Thermal Load Mitigation Implementation provides budget for strategies currently under consideration for MWMC future permit compliance needs. EXHIBIT 13 Regional Wastewater 5-Year Capital Programs CAPITAL PROJECT DETAIL Metropolitan Wastewater Management Commission Capital Improvement Program Page 48 FY 21-22 BUDGET AND CIP POPLAR HARVEST MANAGEMENT SERVICES (P80083) Description: This project develops a long-term poplar management strategy for the Biocycle Farm through refinement of poplar harvest, 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 management unit (MU) within the regulatory 12-year rotation limit and subsequent replanting. Upon final replanting oversight of MU-3 through FY22/23, the long-term poplar harvest and planting will become operations/maintenance functions under the Eugene Wastewater Division. Status: MU-1 was replanted in 2016. MU-2 was replanted in 2018-19. MU-3 is scheduled for harvest in 2021 with replanting in 2022-2023. 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 in conformance with agricultural use rules. Estimated Project Cost: $1,982,000 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 = $138,388; FY 19-20 = $110,007; FY 20-21 = $165,236; FY 21-22 = $600,000; FY 22-23 = $60,000 Expenditure/Category: Prior Years 2020-21 Est. Act.2021-22 2022-23 2023-24 2024-25 2025-26 Total Design/Construction $1,156,909 $165,236 $660,000 $0 $0 $0 $0 $1,982,000 Other $0 $0 $0 $0 $0 $0 $0 $0 Total Cost $1,156,909 $165,236 $660,000 $0 $0 $0 $0 $1,982,000 Metropolitan Wastewater Management Commission Capital Improvement Program Page 49 FY 21-22 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. The update could include stormwater planning for the WPCF, NPDES permit renewal, system development charge evaluation, facilities planning technical services, and cost estimating for 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 community growth. Status: As of January 2021, consultant is drafting the WPCF stormwater master plan. The bulk of the planned budget is reserved for future implementation of planning work in response to the MWMC’s anticipated NPDES permit renewal (Fall of 2021). Justification: Plan future conveyance and treatment upgrades and/or expansions to meet regulatory requirements, preserve public health, community growth, and water quality standards. Project Driver: Provide 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 to address local building permit requirements for MWMC construction projects. The remaining project scope will be initiated by the next NPDES permit renewal schedule, listed as year 2021. Estimated Project Cost: $2,230,000 Estimated Cash Flow: FY 18-19 = $35,701; FY 19-20 = $15,174; FY 20-21 = $109,125; FY 21-22 = $600,000; FY 22-23 = $1,470,000 Expenditure/Category: Prior Years 2020-21 Est. Act.2021-22 2022-23 2023-24 2024-25 2025-26 Total Design/Construction $0 $0 $0 $0 $0 $0 $0 $0 Other $50,875 $109,125 $600,000 $1,470,000 $0 $0 $0 $2,230,000 Total Cost $50,875 $109,125 $600,000 $1,470,000 $0 $0 $0 $2,230,000 Metropolitan Wastewater Management Commission Capital Improvement Program Page 50 FY 21-22 BUDGET AND CIP FACILITY PLAN ENGINEERING SERVICES (P80110) Description: Engineering/technical consultant services for analysis, project definition, cost estimating, design feedback, and general consultation regarding the MWMC Facilities Plan follow up (2023 to 2028). The related project P80090 was closed out in 2021. Status: After the MWMC upcoming permit renewal, staff anticipates updating the Facilities Plan under P80101 and as needed follow up support via P80110 Facility Plan Engineering Services. Justification: Consultant services to provide ongoing technical and engineering resources as needed after the MWMC Comprehensive Facilities Plan Update (P80101). Project Driver: Ongoing engineering support. Project Trigger: Ongoing need. Estimated Cost: $650,000 (2023 to 2028) Estimated Cash Flow: FY 23-24 = $120,000; FY 24-25 = $120,000; FY 25-26 = $130,000; FY 26-27 = $140,000; FY 27-28 = $140,000 Expenditure/Category: Prior Years 2020-2021 Est. Act.2021-22 2022-23 2023-24 2024-25 2025-26 Total Design/Construction $0 $0 $0 $0 $0 $0 $0 $0 Other $0 $0 $0 $0 $120,000 $120,000 $130,000 $370,000 Total Cost $0 $0 $0 $0 $120,000 $120,000 $130,000 $370,000 Metropolitan Wastewater Management Commission Capital Improvement Program Page 51 FY 21-22 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. In 2019, the P80096 Resiliency Planning study recommended onsite geotechnical evaluation and additional improvements. 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 and 2019 Resiliency study recommendations. Project Trigger: Peak wet weather instantaneous flow reaches 80 percent of the pump station firm capacity. Estimated Project Cost: $2,050,000 Estimated Cash Flow: FY 20-21 = $250,000; FY 21-22 = $1,540,000; FY 22-23 = $260,000 Expenditure/Category: Prior Years 2020-21 Est. Act.2021-22 2022-23 2023-24 2024-25 2025-26 Total Design/Construction $0 $250,000 $1,800,000 $0 $0 $0 $0 $2,050,000 Other $0 $0 $0 $0 $0 $0 $0 $0 Total Cost $0 $250,000 $1,800,000 $0 $0 $0 $0 $2,050,000 Metropolitan Wastewater Management Commission Capital Improvement Program Page 52 FY 21-22 BUDGET AND CIP ADMINISTRATION BUILDING IMPROVEMENTS (P80104) Description: This project will address the Administration/Operations Building workspace needs at the Water Pollution Control Facility (WPCF). It is a follow up to the 2018-2019 construction of the P80085 new laboratory building and expansion of the existing maintenance building. In 2019, the P80096 Resiliency Planning study recommended evaluating MWMC options for building space including: a) constructing a new MWMC building for immediate occupancy/use after a major natural disaster, or b) upgrade the existing building for immediate occupancy post-earthquake (magnitude 9.0 event). There are challenges and benefits with each of these two options that will be explored during the initial planning phase of this project. With the creation of a building meeting immediate occupancy design, a pre-designated “Incident Command Post” could be utilized at the WPCF site after a natural disaster. The existing 1982 building is currently used for operating and control of the MWMC treatment facility. Status: As of January 2021, staff is creating a P80104 request for proposals for design consulting services. Justification: The original design and construction of the WPCF Administration/Operations Building was completed February 1982 under older building codes. Since that time, use of the building and associated construction codes have changed substantially necessitating the need to reevaluate the MWMC building options to address level of service goals after a nature disaster (earthquake or flooding). 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 because of changing regulations since the WPCF was originally constructed in 1982. Also, address the P80096 recommended level of service goals to operate after magnitude 9.0 earthquake issue. Project Trigger: Expansion and changes needed for functionality, safety, and natural disaster resiliency. Estimated Project Cost: $7,600,000 Estimated Cash Flow: FY 20-21 = $370,000; FY 21-22 = $2,000,000; FY 22-23 = $5,130,000; FY 23-24 = $100,000 Expenditure/Category: Prior Years 2020-21 Est. Act.2021-22 2022-23 2023-24 2024-25 2025-26 Total Design/Construction $0 $370,000 $7,230,000 $0 $0 $0 $0 $7,600,000 Other $0 $0 $0 $0 $0 $0 $0 $0 Total Cost $0 $370,000 $7,230,000 $0 $0 $0 $0 $7,600,000 Metropolitan Wastewater Management Commission Capital Improvement Program Page 53 FY 21-22 BUDGET AND CIP CLASS A DISINFECTION FACILITIES (P80098) Description: Provides disinfection, storage, and distribution facilities needed to bring tertiary filtered effluent to Class A standards on a consistent and reliable basis for initial demonstration of recycled water uses on- and off-site of the MWMC treatment site. The project includes the design, bidding, construction, and permitting of Class A recycled water disinfection facilities. Status: As of January 2021, notice to proceed to the P80098 design consultant. Justification: Class A recycled water is necessary to expand recycled water to landscaping, street tree, and industrial uses. Demonstration of Class A quality and reliability is necessary for stakeholder acceptance and future adoption of expanded recycled water uses. Project Driver: The Thermal Load Mitigation Alternatives Evaluation, Recycled Water Program Implementation Planning, Phase 2 Study (dated August 2014) 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 sites for equipment washing. Estimated Project Cost: $8 million (recycled water Class A infrastructure and upgrade one structure for 9.0 magnitude earthquake preparedness related to MWMC P80096 level of service goals) Estimated Cash Flow: FY 18-19 = $836; FY 19-20 = $15,934; FY 20-21 = $1,213,230; FY 21-22 = $1,850,000; FY 22-23 = $4,920,000 Expenditure/Category: Prior Years 2020-21 Est. Act.2021-22 2022-23 2023-24 2024-25 2025-26 Total Design/Construction $16,770 $1,213,230 $6,770,000 $0 $0 $0 $0 $8,000,000 Other $0 $0 $0 $0 $0 $0 $0 $0 Total Cost $16,770 $1,213,230 $6,770,000 $0 $0 $0 $0 $8,000,000 Metropolitan Wastewater Management Commission Capital Improvement Program Page 54 FY 21-22 BUDGET AND CIP RENEWABLE NATURAL GAS (RNG) UPGRADES (P80095) Description: This project provides the planning, decision support, new agreements, design and construction of Renewable Natural Gas (RNG) Upgrades consisting of biogas purification facilities at the treatment plant and connection to the Northwest Natural utility grid. Together, the new system will allow the MWMC to sell the upgraded gas (RNG) as a renewable fuel through offtake agreement(s). Status: Construction notice to proceed was issued on May 5, 2020. As of January 2021, we hope to confirm RNG system performance in April/May/June of 2021. Additional agreements are with Blue Source LLC for the RNG environmental credits and Northwest Natural Gas Company to purchase the MWMC purified biogas (also called brown gas). Justification: Full utilization of the MWMC’s biogas resource. 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 in year 2019 for RNG design and construction contract award in April 2020. Estimated Project Cost: $14,500,000 Estimated Cash Flow: FY-17-18 = $258,334; FY 18-19 = $1,246,389; FY 19-20 = $2,300,385; FY 20-21 = $8,694,892; FY 21-22 = $2,000,000 Expenditure/Category: Prior Years 2020-21 Est. Act.2021-22 2022-23 2023-24 2024-25 2025-26 Total Design/Construction $3,805,108 $8,694,892 $2,000,000 $0 $0 $0 $0 $14,500,000 Other $0 $0 $0 $0 $0 $0 $0 $0 Total Cost $3,805,108 $8,694,892 $2,000,000 $0 $0 $0 $0 $14,500,000 Metropolitan Wastewater Management Commission Capital Improvement Program Page 55 FY 21-22 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 MWMC is part of the Pure Water Partners collaborative with EWEB to partner on watershed projects in the McKenzie and other upper Willamette watersheds. The project includes the ongoing long-term monitoring and reporting associated with the MWMC’s pilot “shade sponsorship” projects that were implemented in 2013 thru 2016. Status: November 2020: The Pure Water Partners Memorandum of Agreement was finalized in 2020 and will be formally entered into in 2021. The Credit Program Manager contract with The Freshwater Trust will be amended to address the credit-production schedule for new MWMC temperature credits, including the two pilot Pure Water Partners project sites initiated in 2020 and the ongoing maintenance of the three Sponsorship pilot projects planted in 2013-2016. 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 FY 18-19 under the EWEB intergovernmental agreement 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 MWMC regulatory credit. Project Driver: Ongoing shade contract commitment plus additional NPDES permit compliance needs based on updated temperature standards, TMDL, and associated thermal load limits. Project Trigger: Impending NPDES permit renewal currently scheduled for issuance in year 2021. Estimated Project Cost: $5 million (estimate 2012 to 2034) Estimated Cash Flow: FY 12-13 = $84,621; FY 13-14 = $77,394; FY 14-15 = $79,245; FY 15-16 = $102,191; FY 16-17 = $58,948; FY 17-18 = $0; FY 18-19 = $172,119; FY 19-20 = $260,482; FY 20-21 = $276,397; FY 21-22 = $1,370,000; FY 22-23 = $1,000,000; FY 23-24 = $1,000,000; FY 24-25 = $500,000; FY 25-26 = $10,000; FY 26-27 = $20,000; FY 27-28 = $20,000; FY 28-29 = $20,000; FY 29-30 = $20,000 Expenditure/Category: Prior Years 2020-21 Est. Act.2021-22 2022-23 2023-24 2024-25 2025-26 Total Design/Construction $768,603 $276,397 $1,370,000 $1,000,000 $1,000,000 $500,000 $10,000 $4,925,000 Other $0 $0 $0 $0 $0 $0 $0 $0 Total Cost $768,603 $276,397 $1,370,000 $1,000,000 $1,000,000 $500,000 $10,000 $4,925,000 Metropolitan Wastewater Management Commission Capital Improvement Program Page 56 FY 21-22 BUDGET AND CIP RESILIENCY FOLLOW-UP (P80109) Description: This project provides follow-up evaluation and some implementation of the P80096 Resiliency Study (Disaster Mitigation and Recovery Plan - dated March 2020). The 2019 study recommended seismic and flooding mitigation projects estimated at $34.6-million to be coordinated with the MWMC ongoing infrastructure/facilities construction program. The main objective is to address “level of service” goals before a natural disaster such as 9.0 magnitude earthquake or major flooding. Also, the MWMC should continue to communicate with the agencies that prepare for natural disasters that can impact the Eugene/Springfield community. Status: As of January 2021: Completed qualification based selection of on-call engineering consultants to help with the recommendations from the P80096 Resiliency Study regarding proposed mitigation projects to reduce the impact of flooding and earthquake (magnitude 9.0) issues. 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 and major flooding. Project Driver: Cost effectively ensure reasonable recovery of MWMC’s core facilities and services following major disaster impacts after earthquake or flooding. Project Trigger: Per Commission direction, consultant work began in July 2018. The MWMC plan with consultant recommendations is dated March 2020. Estimated Project Cost: Mitigation recommendations estimate: $34.6-million (2019 dollars) Estimated Cash Flow: FY 20-21 = $210,000; FY 21-22 = $490,000; FY 22-23 = $3,000,000; FY 23-24 = $300,000; FY 24-25 = $300,000; FY 25-26 = $800,000; and continue the MWMC mitigation work estimated above $34-million Expenditure/Category: Prior Years 2020-21 Est. Act.2021-22 2022-23 2023-24 2024-25 2025-26 Total Design/Construction $0 $210,000 $490,000 $3,000,000 $300,000 $300,000 $800,000 $5,100,000 Other $0 $0 $0 $0 $0 $0 $0 $0 Total Cost $0 $210,000 $490,000 $3,000,000 $300,000 $300,000 $800,000 $5,100,000 Metropolitan Wastewater Management Commission Capital Improvement Program Page 57 FY 21-22 BUDGET AND CIP AERATION BASIN IMPROVEMENTS – PHASE 2 (P80100) Description: Aeration System (Phase 2): Recent recommendations are to evaluate and consider improving parts of the existing 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 four of the eight cells of the aeration basins and make hydraulic improvements. This project was originally the North Aeration Basin Improvements project; however, the Phase 1 final design in 2007 recommended improvements to the four eastern most basins as a first phase would allow for better hydraulics and more operational flexibility. Phase 1 construction was completed in March 2009. 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: As of January 2021: Brown and Caldwell is evaluating the existing aeration system. 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 limits 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 anticipated in year 2021). Estimated Project Cost: $16,500,000 (including upgrading westerly basins) Estimated Cash Flow: FY 19-20 = $108,014; FY 20-21 = $1,451,986; FY 21-22 = $440,000; FY 22-23 = $0; FY 23-24 = $1,600,000; FY 24-25 = $6,700,000; FY 25-26 = $6,200,000 Expenditure/Category: Prior Years 2020-21 Est. Act.2021-22 2022-23 2023-24 2024-25 2025-26 Total Design/Construction $108,014 $1,451,986 $440,000 $0 $1,600,000 $6,900,000 $6,000,000 $16,500,000 Other $0 $0 $0 $0 $0 $0 $0 $0 Total Cost $108,014 $1,451,986 $440,000 $0 $1,600,000 $6,900,000 $6,000,000 $16,500,000 Metropolitan Wastewater Management Commission Capital Improvement Program Page 58 FY 21-22 BUDGET AND CIP RECYCLED WATER DEMONSTRATION PROJECTS (P80099) Description: This project provides for stakeholder engagement, community communication/outreach, and any additional design, construction, permitting, and implementation of recycled water point-of-use needs beyond the MWMC’s point-of-delivery of Class A recycled water product. Project may entail onsite upgrades and retrofits to allow the use of recycled water in partnership with end-users, point-of-delivery metering, piping, and controls, user training and information materials, and public interpretative signage. Status: December 2020: Letters of intent from three demonstration site partners were secured in 2020 and planning of demonstration site use is underway in parallel with the Class A Disinfection Facilities design contract approved by the MWMC on October 9, 2020. A recycled water advisory network and informational strategy was launched in 2020 to facilitate community partner and stakeholder identification of future Class A recycled water uses. 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 for temperature and other benefits, including providing community water resource partnership opportunities. Project Driver: The Thermal Load Mitigation Alternatives Evaluation, Recycled Water Program Implementation Planning, Phase 2 Study (dated August 2014) 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 Class A 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 via private/public partnership. Estimated Project Cost: $410,000 Estimated Cash Flow: FY 19-20 = $27,899; FY 20-21 = $42,101; FY 21-22 = $200,000; FY 22-23 = $140,000 Expenditure/Category: Prior Years 2020-21 Est. Act.2021-22 2022-23 2023-24 2024-25 2025-26 Total Design/Construction $27,899 $42,101 $340,000 $0 $0 $0 $0 $410,000 Other $0 $0 $0 $0 $0 $0 $0 $0 Total Cost $27,899 $42,101 $340,000 $0 $0 $0 $0 $410,000 Metropolitan Wastewater Management Commission Capital Improvement Program Page 59 FY 21-22 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 listed as year 2021. 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 2020-21 Est. Act.2021-22 2022-23 2023-24 2024-25 2025-26 Total Design/Construction $0 $0 $0 $3,500,000 $8,500,000 $4,500,000 $0 $16,500,000 Other $0 $0 $0 $0 $0 $0 $0 $0 Total Cost $0 $0 $0 $3,500,000 $8,500,000 $4,500,000 $0 $16,500,000 Metropolitan Wastewater Management Commission Capital Improvement Program Page 60 FY 21-22 BUDGET AND CIP THERMAL LOAD MITIGATION – IMPLEMENTATION (P80063) Description: This funding source provides thermal load implementation money related to projects as they are developed - such as the Riparian Shade Credit Program (P80080) and Class A recycled water disinfection facilities and 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 related to the Willamette River. Status: Project definition is in progress as part of the NPDES permit renewal preparation for the MWMC’s 10-year compliance strategy for temperature. This project may be split to fund additional water quality trading credits under the Pure Water Partners IGA/MOA (via P80080) as well as recycled water project implementation. Final recommendations for P80063 are pending completion of the thermal load mitigation assessment under P80062 in spring 2021. Justification: The 2004 MWMC Facilities Plan recommended phased implementation of recycled water use for thermal load compliance, including Class A greenspace irrigation. The Thermal Load Mitigation Alternatives Evaluation, Recycled Water Program Implementation Planning, Phase 2 Study (dated August 2014) identified riparian shade credits as the primary near-term compliance strategy, coupled with expanded use and storage of recycled water at the MWMC’s facilities and Class A demonstration uses with identified partners. The recommendations include long-term development of recycled water projects and partnerships. Project Driver: NPDES permit thermal load limit compliance as required under updated Oregon temperature standards and implementation. Future thermal load mitigation projects serve 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. The MWMC NPDES permit renewal is scheduled for fall of 2021. Estimated Project Cost: $9 million (placeholder estimate) 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 = -$45,477; FY 19-20 = $0; FY 20-21 = $0; FY 21-22 = $0; FY 22-23 = $3,000,000; FY 23-24 = $3,000,000; FY 24-25 = $3,000,000 Expenditure/Category: Prior Years 2020-21 Est. Act.2021-22 2022-23 2023-24 2024-25 2025-26 Total Design/Construction $0 $0 $0 $3,000,000 $3,000,000 $3,000,000 $0 $9,000,000 Other $32,259 $0 $0 $0 $0 $0 $0 $32,259 Total Cost $32,259 $0 $0 $3,000,000 $3,000,000 $3,000,000 $0 $9,032,000 Metropolitan Wastewater Management Commission Capital Improvement Program Page 61 FY 21-22 BUDGET AND CIP WASTE ACTIVATED SLUDGE THICKENING (P80078) Description: Third gravity belt thickener (GBT) with associated at grade building. Assumes additional basement floor space is not required. Status: Continue to monitor the timing of this project. Justification: Provide additional capacity for waste active sludge (WAS) thickening process. Project Driver: Additional capacity to provide WAS thickening with one unit offline at WWMW upper limit flow projections. Nitrification required by the NPDES permit and increasing wastewater flows and loads generates more WAS solids. Provide ability to conduct recuperative thickening. Project Trigger: Exceeding solids and hydraulic loading rate design criteria. Estimated Project Cost: $6,200,000 Estimated Cash Flow: FY 24-25 = $1,200,000; FY 25-26 = $4,900,000; FY 26-27 = $100,000 Expenditure/Category: Prior Years 2020-21 Est. Act.2021-22 2022-23 2023-24 2024-25 2025-26 Total Design/Construction $0 $0 $0 $0 $0 $1,200,000 $5,000,000 $6,200,000 Other $0 $0 $0 $0 $0 $0 $0 $0 Total Cost $0 $0 $0 $0 $0 $1,200,000 $5,000,000 $6,200,000 ______________________________________________________________________________ M E M O R A N D U M DATE: March 4, 2021 TO: Metropolitan Wastewater Management Commission (MWMC) FROM: Matt Stouder, Executive Officer Dave Breitenstein, Wastewater Division Director SUBJECT: Key Outcome 1 ACTION REQUESTED: Provide input/direction to staff on Key Outcome 1 and associated Performance Indicators ISSUE At the January 8, 2021 meeting, the Commission requested that staff evaluate the various Performance Indicators associated with the five Key Outcomes in the MWMC’s Regional Wastewater Program (RWP) Budget, to potentially include new and/or revised indicators that better align with each outcome. BACKGROUND Each year in January, staff begins the budgeting process by providing the Commission with a presentation on the MWMC’s five Key Outcomes and associated Indicators. Included with this presentation is a discussion on performance with respect to the Indicators over the past fiscal year (actual), current fiscal year (estimated actual) and upcoming fiscal year (target). At the January 8, 2021 meeting, the Commission requested staff revisit the draft Performance Indicators associated with the Key Outcomes to better align with the overarching goal of each outcome. Staff suggested, and the Commission agreed, to review the Key Outcomes individually over the course of calendar year 2021 during regular Commission meetings as agenda time permits. Staff intends to start the discussion with Commission with Key Outcome 1 at the March 12, 2021 Commission meeting. DISCUSSION Key Outcome 1 relates to environmental standards, with specific language as adopted in the RWP each year of “Achieve and maintain high environmental standards.” Key Outcome 1, with AGENDA ITEM VII Memo: Key Outcome 1 March 4, 2021 Page 2 of 2 associated Indicators and performance measures as discussed at the January 8, 2021 Commission meeting, is presented as Attachment 1. It should also be noted that the Commission recently adopted a Strategic Plan in 2020 (Attachment 2), which is based on four strategic pillars and a foundation of a successful intergovernmental partnership. The first strategic pillar in the Strategic Plan is Protect the Environment, and includes the following goals:  Protect the vitality and quality of our water, air and land  Comply with Environmental Regulations  Protect the health and safety of the community Taking into consideration the feedback from the January 2021 Commission meeting, the goals of the first strategic pillar in the MWMC’s Strategic Plan, and the objective of Key Outcome 1 to achieve and maintain high environmental standards, staff prepared Attachment 3. Attachment 3 is a red-lined concept of Key Outcome 1 and serves as a starting point for Commission consideration and feedback. At the March 12, 2021 meeting, staff plans to discuss the proposed changes to Key Outcome 1 in more detail. ACTION REQUESTED Provide input to staff regarding the draft Key Outcomes 1 and associated performance indicators. ATTACHMENTS 1. Key Outcome 1, as presented at the 1/8/21 Commission Meeting 2. 2020 MWMC Strategic Plan 3. Red-lined draft Key Outcome 1 for discussion and feedback Outcome 1: Achieve and maintain high environmental standards. Indicators: Performance: FY 19-20 Actual FY 20-21 Estimated Actual FY 21-22 Target  Volume of wastewater treated to water quality standards 100%; 10.9 billion gallons 100%; 11 billion gallons 100%; 11 billion gallons  Average removal efficiency of carbonaceous biochemical oxygen demand (CBOD) and total suspended solids (TSS) (permit limit 85%) 97% 97% 95%  High quality biosolids (pollutant concentrations less than 50% of EPA exceptional quality criteria) Arsenic 21% Cadmium 12% Copper 29% Lead 8% Mercury 5% Nickel 5% Selenium 12% Zinc 29% Arsenic 25% Cadmium 15% Copper 30% Lead 10% Mercury 10% Nickel 10% Selenium 15% Zinc 30% 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 All objectives met MWMC STRATEGIC PLAN MISSION To protect our community’s health and the environment by providing high-quality wastewater services to the Eugene-Springfield metropolitan area in partnership with Eugene, Springfield and Lane County VISION The MWMC will be recognized as a leader in protecting water quality through sustainable and fiscally responsible practices VALUES  Clean Water  Protecting Community Health  Providing Excellent Customer Service  Sustain Environmental Stewardship  Collaboration with Partners  Maintaining Fiscal Responsibility KEY OUTCOMES (STRATEGIC PILLARS) PROTECT THE ENVIRONMENT BE COST-EFFECTIVE PROVIDE RELIABLE, RESILIENT INFRASTRUCTURE BUILD PUBLIC SUPPORT & EFFECTIVE PARTNERSHIPS  Protect the vitality and quality of our water, air and land  Comply with environmental regulations  Protect the health and safety of the community  Maintain sound financial practices  Ensure rates and rate changes are planned, moderate and incremental  Maximize cost effective use of resources through science, technology and innovative partnerships  Employ best practices in asset management  Develop and implement resiliency planning policies  Sound governance of infrastructure development through capital planning that meets existing and future community needs  Grow communication and educational outreach within the service area  Leverage partnerships to influence legislative policies that support our mission  Explore partnership opportunities through a value-on-investment discernment process A SUCCESSFUL INTERGOVENMENTAL PARTNERSHIP (FOUNDATION)  Maintain model performance of intergovernmental cooperation  Prioritize and invest in emerging opportunities within the context of the Strategic Plan  Ensure organizational capacity to effectively support strategic priorities Outcome 1: Achieve and maintain high environmental standards. Indicators: Performance: FY 19-20 Actual FY 20-21 Estimated Actual FY 21-22 Target  Volume of wastewater treated to water quality standards 100%; 10.9 billion gallons 100%; 11 billion gallons 100%; 11 billion gallons  Average removal efficiency of carbonaceous biochemical oxygen demand (CBOD) and total suspended solids (TSS) (permit limit 85%) 97% 97% 95%  High quality biosolids (pollutant concentrations less than 50% of EPA exceptional quality criteria) Arsenic 21% Cadmium 12% Copper 29% Lead 8% Mercury 5% Nickel 5% Selenium 12% Zinc 29% Arsenic 25% Cadmium 15% Copper 30% Lead 10% Mercury 10% Nickel 10% Selenium 15% Zinc 30% Arsenic <50% Cadmium <50% Copper <50% Lead <50% Mercury <50% Nickel <50% Selenium <50% Zinc <50%  ISO14001 Environmental Management System - Continual Improvement of Environmental Performance  NPDES Permit Renewal  Climate Action Planning  Urban Waters & Wildlife Partnership All objectives met and no major nonconformities --- --- --- All objectives met and no major noncomformities Complete toxics monitoring; Prepare updates to plans; Coordinate renewal process with DEQ Explore development of a Climate Action Statement/Policy Explore partnership Reduce waste gas flaring; Produce gas for use as renewable fuel; Install new laboratory information management system Begin implementation of new permit requirements Adopt Statement/Policy Identify MWMC opportunities