Loading...
HomeMy WebLinkAboutAgenda Packet 09/14/2004 UTILITY ADVISORY COMMITTEE PUBLIC WORKS r':-ONFERENCE ROOM PORt ANGELES~ WA cJS362 SEPTEMBER I 4~ 2004 3:OD P.M. AGENDA I. P-ALL To ORDER II. ROLL P-ALL mil. APPROVal Of MINUTES FOR AUGUSt 1 n, 20n4 IV. LATe ITEMS V. DISCUSSION ITEMS A. WATERMAIN BREAK REPORT B. REPLACEMENT OF GARBAGE TRUCK (MEMO PROVIDED AT MEETING} r., r-H2M HILL - NEW P-ONTRACT D. P-SO REDUCTION PLAN UPDATE E. CSO UPDATE F. EES P-ONTRACT AMENDMENT PARTICIPANT AGREEMENT FOR CELERITY PRO-IECT ELECTRIC RATES FOR 2005 {VERBAL} VI. NEXT MEETING DATE - OCTOBER ~ 2~ 20n4 VII. ADdOURNMENT UTILITY ADVISORY COMMITTEE Port Angeles, Washington August 10, 2004 ~/~ I. Call to Order: Chairman Rogers called the meeting to order at 3:00 p.m. II. Roll Call: Members Present: Chairman Rogers, Councilmember Erickson, Allen Bentley, Mayor Headrick Members Absent: Dean Read Staff Present: Mike Quinn, Bill Bloor, Glenn Cutler, Gary Kenworthy, Tom McCabe, Larry Dunbar, Steve Sperr, JeffYoung, Jim Harper, Dave Ireland, Ralph Hoffman, Helen Freilich, Cate Rinehart Others Present: Brian Gawley - Daily News Jane Lindsey - Brown and Caldwell Todd Keithalm - Brown and Caldwell III. Approval of Minutes: Chairman Rogers asked if there were any additions or corrections to the meeting minutes of July 13, 2004. Allen Bentley moved to approve the minutes. Councilmember Erickson seconded the motion, which carried unanimously. Mayor Headrick abstained due to absence. IV. Late Items: None V. Discussion Items: A. Presentation And Discussion Of Draft Update To CSO Reduction Plan Steve Sperr, Engineering Manager, provided an overview of the sites requiring monitoring. The City's wastewater consultant, Brown and Caldwell, distributed a handout and gave a presentation based on that information. The consultant was requested to return at a later date with a revised impact which would include an extra half million dollars, and a schedule showing the annual cost per household fi.om 2004 through 2027. No action taken. Information only. UTILITY ADVISORY COMMITTEE August 10, 2004 B. Update On Combined Sewer Overflow Directed ~4ctions By Department Of Ecology Glenn Cutler, Director of Public Works and Utilities, briefly reviewed the actions and schedule table. There was a brief discussion. No action taken. Information only. C. Electrical Transformer Procurement Economic Analysis Dave Ireland, Light Operations Manager, reviewed the information in the packet, responded to questions and provided clarification. There was a brief discussion. Allen Bentley moved to recommend City Council authorize the City Manager to sign purchase orders for a total of $49,462.70 for thirty-five single phase, pad mounted distribution transformers as follows: General Pacific Inc. (Howard) - ten 25 KVA transformers at $10, 990.10, ten 75 KVA transformers at $18,003.90, and Western States Electric (Cooper Power) - fifteen 50 KVA transformers at $20,468.70. Councilmember Erickson seconded the motion, which carried unanimously. D. Vehicle Replacement- 1956 Chevrolet Sedan Tom McCabe, Solid Waste Superintendent, explained that due to a renewed emphasis on recycling and the age and condition of the 1956 Chevrolet Sedan, a replacement vehicle was recommended. The sedan was originally purchased in 1995 to help promote the solid waste utility's recycling program and now needs repairs at an estimated cost of $4,000. It was suggested that it be sold and replaced with an energy efficient hybrid vehicle equipped with a gasoline engine and electric motor. Following a brief discussion and clarification, Mayor Headrick moved to bring the item before City Council for a decision. Allen Bentley seconded the motion, which carried unanimously. E. Qwest Dex Media Contract Tom McCabe, Solid Waste Superintendent, introduced Helen Freilich, the new Waste Reduction Specialist. Ms. Freilich distributed a sample 4-page guide staff prepared and advised that research indicated promoting recycling and solid waste services through advertising in the telephone book had proven to be very beneficial to other utilities. During a short discussion suggestions for changes to the sample guide were given. Information only. Committee concurred with staff's plans to proceed with the Qwest Dex Media Contract. 2 UTILITY ADVISORY COMMITTEE August 10, 2004 F. Solid Waste RFP Authorization To Proceed Larry Dunbar, Power Resources Manager, reported that the transfer station request for proposals had been advertised but due to a unique State law and time constraints, additional authorizations to proceed must be obtained to stay on schedule. A discussion followed. Allen Bentley moved to recommend City Council authorize the City Manager or his designee to proceed with evaluation of proposals and negotiation of Service Agreements. As part of the motion staffwas directed to provide adequate and appropriate representation on the evaluation committee. Mayor Iteadrick seconded the motion, which carried unanimously. VI. Next meeting date: September 14, 2004 VII. Adjournment: The meeting was adjourned at 5:00 p.m. Chairman Rogers Cate Rinehart, Administrative Assistant 8/12/04 N:~PWKS\LIGHT~CONS\CATE~augl 0meet.wpd 3 pORTANGELES WASHINGTON, U.S.A. UTILITY aDVISORY COMMITTEE MEMO DATE: September 13, 2004 TO: UTILITY ADVISORY COMMITTEE FROM: Bill Beverford, Water/Wastewater Collection Superintendent. SUBJECT: 30" Transmission Water Main Break, Olympic National Park Headquarters. Summary: The resulting collaborative efforts between the PW&U Department, Fire Department, Human Resources Office, and outside agencies and organizations that expedited the isolation, repair and restoration of service can only be described as remarkable. These cooperative actions allowed the repair crews to address the issues of restoring service in a timely manner, while other entities concentrated on the effects of the damage and on maintaining sufficient water supply and fire main flows to support requirements in the High Pressure Zone Area. Recommendation: For information and recognition of those involved with the response and recovery. Background/Analysis: On Tuesday, August 24, 2004, at 2:56 AM, SCADA alarms indicated high flows out of the Peabody Heights Reservoir and City personnel responded. Police Dispatch also notified the PW&U on-call person. Approximately 2.6 to 3.0 million gallons of water were lost due to the rupture of a 30 inch water main causing associated damage to roadways and some local residences. The activation of work-crews commenced to isolate the 30 inch transmission main, reservoirs, and to begin repairs. Jordan Excavating, a local contractor, immediately responded to thc City tasking to do excavation and restoration work for the recovery operation. H.D. Fowler, a pipe supplier, went to extraordinary lengths coordinating efforts to locate replacement pipe and to fabricate and immediately ship overnight the dresser couplings sized to the specific dimensions necessary to effect repairs. Additionally, thc Human Resources Office provided direct support to City occupants affected by water damage. As a result o£ isolating thc transmission break, water from Peabody Reservoir could not bc pumped directly into the High Pressure Zone Reservoir. Initially, thc Port of P.A., Maple View Trucking, Port Angeles Fire Department, and Clallam County Fire District #2 were enlisted to transfer water by tanker trucks from the middle zone to the high zone reservoir. Water Shortage Plan - Level 4 mandatory outdoor restrictions and indoor conservation was implemented. Additionally, the PAFD investigated the possibility and implemented pumping directly from Peabody Reservoir and a middle zone fire hydrant directly into thc high-pressure zone reservoir. The Fire Department successfully conducted pumping operations through the night and was able to meet the system demands, preventing the City from having to declare Water Shortage Plan-Level #5 rationing. By Wednesday, August 25, 2004, repairs were completed, the transmission main filled, and reservoirs commenced reloading. Water Shortage Plan-Level g4 was ]ificd at 12:00 p.m., August 26, 2004. N:/UAC\O~ginaI\UAC Memo 30cc main break.doc po. T GELES W A S H I N G T O N, L]. $. A. UTILITY ADVISORY COMMITTEE MEMO DATE: September 14, 2004 TO-' UTILITY ADVISORY COMMITTEE FROM: TOM MCCABE, SOLID WASTE SUPERINTENDENT RALPH HOFFMAN, FLEET MANGER SUBJECT: REPLACE AUTOMATED PACKER 1905 Summary: Automated packer #1905 that was scheduled for replacement in early 2005 was involved in an accident Labor Day weekend and received extensive damage to the front end. In a recent 2004 procurement to replace one of the other packers, the winning bid included the option to order additional packers at the same price, which the vender has confirmed. The Staff recommendation is to not invest in the cost of repairing #1905, but rather to allow Equipment Services to place the order for another new automated packer off of the existing contract now. ',ince there is a 6 month manufacturing time, funds from the 2005 budget will be used for this ,rocurement as originally planned. Recommendation: Support staffs' recommendation to ask City Council for approval to order a replacement vehicle for 1905 prior to approval of the 2005 budget. Background/Analysis: The Solid Waste Collection Division has a fleet of five automated packers that pick-up 6,500 residential customers five days a week and 800 commercial customers six days a week. Four automated packers are used on a daily basis to accomplish the workload with the fifth automated packer acting as a back up. The back up vehicle is used whenever one of the main vehicles is down for repairs. The back-up vehicle is used approximately 20 hours a week. Estimated Cost: Equipment Services has done a preliminary repair estimate and figures are around $5,000 - $7,000 to put the unit back into a safe running unit. It is recommended by Equipment Services that we don't do the repairs on the packer. The trade in value or salvage value is less than the repair value. The vehicle hakes approximately six months to receive from the time of order, so it is imperative that we order a new packer now. By doing this we can save time and money. Equipment Services has enough reserve funds to buy the packer in 2005. PW 0101_06 [Revised 07/24/03] pORTANGELES UTILITY ADVISORY COMMITTEE MEMO DATE; September 14, 2004 To: UTILITY ADVISORY COMMITTEE FROM: Stephen Sperr, P.E., Engineering Manager SUBJECT: New CH2M Hill Agreement Summary: CH2M Hill, Inc. has been selected to continue to provide engineering services related to the City's water system. The current agreement with CH2M Hill expired last month, though sufficient funds remain to continue until a new agreement is executed. A new agreement will provide that the ongoing engineering services of CH2M Hill will continue without delay, and that additional engineering needs related to the City's water system will be met for the remainder of 2004 and 2005. Recommendation: Forward a favorable recommendation to City Council to enter into an Agreement for Professional Services with CH2M Hill, Inc, and authorize the Mayor to sign the Agreement for an amount not to exceed $418,000.00. Background/Analysis: On August 30, 2000, the City signed a Consultant agreement with CH2M Hill to assist the City in ensuring there will be full mitigation of impacts that the removal of the Elwha dams would have on the City's water supplies, as well as meeting groundwater under the influence of surface water (GWI) compliance measures mandated by the Department of Health. It also authorized tasks to complete the design of two reservoirs covers (Black Diamond and Peabody Heights), complete an updated Comprehensive Water System Plan, and assist the City with various directed services. The Agreement was amended twice, and all tasks were completed except for the ongoing assistance related to the Elwha dams. Based on the extensive involvement that CH2M Hill has had in providing engineering services for the City's Water System, including its involvement in issues that are overlapping the expiring Agreement and the proposed new agreement, CH2M Hill was selected as the best qualified to perform water system-related professional services and a new agreement is being negotiated. The following is a table of the tasks in the proposed Agreement, with estimated budget and funding source. The work in the agreement will be ordered as funds are available and the total fee is a not-to-exceed price. A summary of the Tasks for this Agreement is attached. [ TASK BUDGET I FUNDING SOURCE(S) 1. Elwha Dam Removal Mitigation $72,000 Federal Government, Water Utility~ 2. Phase 2 of Concrete Cylinder Pipe $230,000 2002 Water/Wastewater Bond Replacement 3. Develop Vulnerability Assessment- $16,000 2004 Water Utility Budget Related Capital Improvement Program 4. Emergency Response Plan $15,000 2004 Water Utility Budget 5. Fairmount Pump Station $30,000 2004 Water Utility Budget Construction Support 6. Update Scope and Budget for Water $5,000 2005 Water Utility Budget Projects 7. Other Services as Directed $50,000 Varies2 Total $418,000 ~ Reimbursement of some, but not all, of the costs to be provided by Federal Government 2 _ Directed services are likely to be for Task 1, which will be reimbursed by Federal Government. If not, funding source will be the Water Utility. The duration of the Agreement will be through January 31, 2006, and based on the completion of all Tasks. Tasks that are to be funded by the 2005 Water Utility Budget will not begin until the budget is authorized. Attachment: Summary of Tasks SUMMARY OF TASKS Task 1. Elwha Dam Removal Mitigation The scope of services presented for this task is anticipated to cover the remainder of the design phase of the Elwha Dam Removal Mitigation project, which includes the Port Angeles Water Treatment Plant, the Elwha Water Treatment Plant, and the Elwha Surface Water Intake. Design is anticipated to extend into the summer of 2005. Task 2. Phase 2 of Concrete Cylinder Pipeline Replacement CONSULTANT shall design and prepare construction documents for replacement of the existing 24-inch concrete cylinder pipeline (CCP) along Park Avenue, westward across Valley and Tumwater Creek Canyons, and along Doyle Road to a connection with the recently designed section of ductile iron pipe as part of the Fairmount Pump Station Project. The 7,200 linear feet of 24-inch diameter pipeline on Park Avenue runs from near the Olympic National Park Administration Building to the Black Diamond Reservoir. An additional 1,800 linear feet of 20- inch diameter pipeline extends across Tumwater Creek Canyon and northward along Doyle Road. The resulting total pipeline length is approximately 9,000 feet. The new pipelines shall parallel the existing pipelines in CITY streets, and shall include crossing of two canyons, Valley Creek and Tumwater Creek. The new pipelines shall consist of 24-inch and 20-inch Class 52 ductile iron pipe, except at the canyon crossings where the pipe may be HDPE. Task 3. Develop Vulnerability Assessment-Related CIP CONSULTANT shall review the City's existing Vulnerability Assessment. Two Vulnerability Assessment-trained CONSULTANT staff persons, one with expertise in water systems and one with expertise in system security, shall undertake the review, and prepare a brief memorandum with review comments. In addition, one &the two reviewers listed above will travel to Port Angeles for the purpose of meeting with CITY staff and visiting key water system facilities. Upon completion of the above-described activities CONSULTANT shall prepare a brief technical memorandum of up to 2 pages summarizing review comments on the City's Vulnerability Assessment for review by CITY. Upon completion of City's review of the memorandum and coordination of any potential changes to the Vulnerability Assessment as a result of Consultant's memorandum, CONSULTANT shall prepare list of recommended improvements and associated "concept-level" cost estimates to improve the security of the City's water system facilities. Task 4. Emergency Response Plan The Public Health Security and Bioterrorism Preparedness and Response Act of 2002 (PL 107- 188) requires all water utilities serving more than 3,300 customers to develop or update an existing Emergency Response Plan (ER_P) for terrorist events (or other events identified in the vulnerability assessment) within 6 months of completing the vulnerability assessment. CONSULTANT shall prepare an updated ERP to comply with federal regulations in conformance with guidance provided by the U.S. EPA and DOH for water system emergency response plans. No maps or figures are planned for inclusion into ERP or budgeted as part of this task. If maps or figures are desired by CITY for inclusion in the ERP, they shall be developed by CITY. Task 5. Fairmount Pump Station Services During Construction CONSULTANT shall provide engineering services during construction of the Fairmount Pump Station and Pipeline Project. This includes shop drawing review, answering technical questions, as-needed site visits, and record drawings. Task 6. Update Scope and Cost Estimates for WSP Projects Two key improvement projects listed in Table 9-1 of the City's 2002 Water System Plan arc scheduled for implementation soon. As a result, thc CITY desires to update thc estimated costs and project scopes previously developed. To accomplish updating these two projects, CONSULTANT shall make use of existing cost information available from Phase 1 of the Concrete Cylinder Pipeline Replacement Project and thc Fairmount Pump Station and Pipeline Project. The project scopes and initial capital costs of thc following two projects listed in Table 9-1 shall be re-developed: Concrete Cylinder Pipeline Replacement (City CFP No. WT02-99) McDougal Subzonc Fire Pump (WT64-99) Task 7. Directed Services CONSULTANT shall provide technical assistance and other services to the CITY, related to the City's water system or other utilities, at thc specific direction of authorized CITY staff. No such assistance or services shall be provided unless specifically directed by the CITY. The purpose of this task is to facilitate timely response by CONSULTANT to needs that arc unforeseen at this time. The budget for this task is essentially a contingency allowance that includes labor and expenses. WASHINGTON, U.S.A. UTILITY ADVISORY COMMITTEE MEMO DATE .' September 14, 2004 TO: UTILITY ADVISORY COMMITTEE FROM: Stephen Sperr, P.E., Engineering Manager SUBJECT: CSO REDUCTION PLAN UPDATE Summary: To meet Department of Ecology (DOE) requirements and timetable for control of CSO events, the City is required to update its Combined Sewer Overflow (CSO) Reduction Plan and submit it to them for approval by October 23, 2004. A draft update to the Plan was presented and discussed at last month's UAC meeting. The Plan has been revised to address suggestions from the UAC and is now ready for presentation to the City Council for their approval. Recommendation: Forward a favorable recommendation to City Council to authorize the Public Works and Utilities Director to submit the updated CSO Reduction Plan to the Department of Ecology. Background/Analysis: The City has five Combined Sewer Overflow (CSO) sites that require monitoring as part of the Wastcwater Treatment Plant's (WWTP) National Pollution Discharge Elimination System (NPDES) permit issued bythc Department of Ecology (DOE). At the August 10, 2004 UAC meeting a presentation was given by thc City's Wastcwatcr Consultant, Brown and Caldwell, that provided an overview of the CSO Reduction Plan, and a draft update to the Plan for discussion. The UAC provided input and suggested changes to the Plan, which have been incorporated into a final version that staff believes is ready for City Council approval. A short presentation and discussion of the Plan, highlighting the changes from the previous version, will be made today. A copy of presentation will bc handed out at the meeting. The revised Executive Summary for the Plan is attached. Attachment: Executive Summary of CSO Reduction Plan Update N:\UAC~DcpDirWinal CSO Reduction Plan.wpd EXECUTIVE SUMMARY This Combined Sewer Overflow (CSO) Reduction Plan Update has been developed to meet the permit requirements for the Port Angeles Wastewater Treatment Plant (WWrP) and the Waskington Deparmaent of Ecology's admlni~trafive order, dated April 23, 2004, requiring submission ora CSO reduction plan update be made no later than October 23, 2004. The goal of the updated plan is to reduce CSO discharges to an average of one per year per permitted CSO outfall. This report describes the Port Angeles sanitary sewer collection system, including the five CSO discharge points currently permitted. The report also reviews CSO sampling data, summariZeS alternatives for control of CSOs, and describes recommended CSO reduction projects (summsuSzed in Table ES-l), proposes a schedule for their implementation, and provides financing information. Table ES-1. Summary of Proposed CSO Capital Improvement Program Es~ated P/:oject Nme Project Sumama~ Pi'oject Costs* West End CSO Reduction Proiecta · New gravity sewer to pump station 3, 2500 ft of 15-in I-DPE pipe, PS 3 $1,449,000 pump station 3 upgrades pump upgrades Downtown to ~/WfP CSO Reduction Projects · Lincoln St stormwater separation 550 ft of 24~m HDPEin do~rntown core, reconnect catch ~496,000 basins and manholes · New force ma/ns from pump statio~ 4 10,200 ft of 12- and 30-ni HDPE $6,260,000 to wwrP slipline and open cut · New Famp station 4 25-mgd submeriible pump station, $10,260,000 standby power · New FIancis St gravity sewer 4500 ft of 30-in HDPE, directional $2,826,000 dowas~earn ofCSO 8 dill and open cut · New RaiLroad Ave gray/fy sewer 3300 fi of 30-m HDPE parallel $3~36,000 sewer, dLrecfional ckill and open cut · Pump station 4 hnd swap $10,000 WWIP CSO Reduction Projects · Ra},onier tank pttrchase 5.3 MG steel tank puachase $1,500,000 · Rayoaleroutfallpurchase(ifnecessal3m) Purchase outfalk obtain permitting $125,000 for City WWTP use · Rayonier tank modifications Mechanical upgrades to tank. $2,600,000 esthetics upgrades · Wastewatet treatment plant Secondat7 treatment upgrades, $2,846,000 modifications SCADA, aluminum covets · Rayonier outfall connection (ff Cross-over connection between $115,000 necessary~} Cit,/and Rayonier outfalls General · Development allowance Annual allotment for new $100,000 - $500,000 development sewer upgrades Total Cost: i $31,723,000 Notes: ' All costs expressed in July 2004 dollars. Project costs include capital costs, design, City project administration, construction management, permirtnig, and 8.3°/0 sales tax. See Appendix A. b. Acquisition and use of the Rayomer outfall is subject to future facility decisions and system experience A schedule to meet the Department of Ecology's 2015 deadline of one disch~ge pe~ year per CSO discharge point per year was initially developed. This 2015 deadline proved to be cost p~ohibifive to the City, according to the Department of Ecology's affordability guidelines. The City has proposed to implement the CSO reduction plan by 2027. The schedule based on the 2015 deadline and the schedule based on affo~dability are smed in Table ES-2 below. Table ES-2 - Proposed CSO Capital Program Schedule 20L~ Deadline Affordable Project Description Completion Completion Date Date West End CSO Reduction Projects · New g~avity sewer to pump st/fion 3 2004 2004 Downtown to w~'rFp CSO Reduction Proiccts · Lincoln St stormwater sepazation 2005 2006 · New Francis St j~a~4t7 sewer 2007 2010 · New force mains from pmaap station 4 to 2010 2021 WWTP · New Railroad Ave./Llncoln St. j~avity sewex 4 2010 2021 · New pump sta6on 4 2012 2023 · Pump station 4 land swap 2005 2006 WWI'P CSO Reduction Projects CSO Reduction Program September 14, 2004 UAC Presentation ~ CSO Plan Agenda · Background - Directed by EPA/WDOE/NPDES permit - Current completion schedule 2015 · CSO control options · Cost summary · Financing issues and schedule 2 Current Overflow Status Port Angeles System ~ Current C.onditions.: CSO Flow \~ Reducbon Requ,rements · WDOE regulatory requirement to control one overflow per year by 2015 · Port Angeles making argument for 2027 compliance extension CSO Control Options  Assumptions Avoid storage tanks away from the treatment plant - High O&M costs - Odor control needed - Requires additional staffing Downtown stormwater separation continues at a slow pace Overflows conveyed to the WWTP for treatment and discharge Program completion in phases through 2015 (Ecology mandated) Program completion in phases through 2029 (Port Angeles affordable) West Side Improvements · Elimination of PS 1 and CSO 1 - 2004 · Improvements are currently out to bid by the City for implementation this year · $1.4 million budget 4 West Side Improvements  Downtown/Eastside Improvements Pump Station 4 to WWTP Separate storm drainage on Lincoln St. ($500,000) with 24" HDPE pipe Replace PS 4 with new larger capacity (25 mgd) station ($10.3 million) install new 12" and 30" force mains from new PS 4 to VVWTP inside the IWL ($6.3 million) Installation of new 30" gravity sewer from Francis St. to WWTP (collecting CSO 10) ($2.8 million) Installation of new 30" gravity sewer from CSO 8 to PS4 along Lincoln St. and Railroad Ave. (collecting CSOs 6,7,8) ($3.2 million) Implement nine minimum controls / Eastside Zmprovements Zmprovements at WWTP · WWTP capacity re-rating study ($85,000) · Modifications of WWTP to increase secondary capability ($2.8 million) · Possible acquisition of Rayonier tank and related work ($4.3 million) · Acquisition of Rayonier ouffall ($125,000) · Connection to Rayonier ouffall ($115,000) Treatment of CSO at WWTP · Storage of excess flows - meter through WWTP - Use existing Rayonier tank - Install upgrades ~ Wastewater Treatment Plant ]4 Cost Summary ]5 Recommended Facilities Constru~ion Cost Estimate Total Project Cost July 2004 Dollars* Financing Tssues and Schedule Financing all improvements by 2015 will present a hardship on citizens ($30.2 million) Constructing Francis St., Lincoln St. Stormwater Separation and Rayonier Tank by 2010 will reduce CSO's by about 50% ($8 million) Pursue extension from Ecology for completion through 2029 King County CSO completion date - 2030 Seattle CSO completion date - 2020 Rate :Impacts Analysis Option I: Rate impacts based on Rayonier tank option Option 2: Rate impacts based on wet weather treatment option Analysis in 2004 dollars - Inflation to be considered later Funding scenarios o 20t5 - A) Bond sale at commercial rates - 6% - B) SRF Loans- 3% - C) 50% Bonds + 50% SRF Loans Alternative funding scenario option I - 2029 - A) $2.001ERU/Month/Yr increase - small and stable - B)Rangefrom$2.0Oto$2.5OIERUIMonthlYrwithaddedtreatmentcosts - C) Bond sale at commercial rates - 6% Alternative funding scenario option 2 - A)$2,751ERU/MonthlYrincrease-unaffordablein2013 - B) Range from $2.75 to $3.20/ERU/Month/Yr with added treatment costs - C) Bond sale at commercial rates- 6% If start adding additional treatment and conveyance costs after 2010 can maintain lower rates ~.o~-'°~'~ Annual $/ERU/Month Rate %~ ~[ncreases Required to :Include Additional Annual Treatment Costs from $0 to $S00,000 2100 B Option 1: 0.80 0.60 0.40 Annual C'rP 2015 Schedule ]0 ~'~ ...... ~i Projected Annual Expenditure  For Full CIP Implementation ' By 2015 ~ ~,oo / ~ ~  1 Rate Zncrease Required For Full CZP Zmplementation By ' 20:l.S - 2004 Dollars $90'00 ~ $85.00 - $80.00 - 6 $75.00 ' ~ $70.00 ec $65.00 mil [] Option 1 I~ $6o.oo m [] Option 2 $55.00 .j [] $50.00 $45.00 [] [] $40.00 ~ ~ I I $35.oo [] [] [] I $30.00 ............ Curpent 2005 2006 200? 2008 2009 2010 2011 2012 2o13 2o'~4 2o15 22 Note: Rate increase 2 to 20% per year ]1 Average Residential Rate vs. WDOE Maximum Affordability Rate .~,~, For Full CIP implementation by 2015 $90 ~ $~7 $85 ,,,~.....~ $80 $75 .,..~/~ $70 $60 100% Bo~s $45 ~ ~ ~u~ ~ ~%Bo~/50%SRF $40~' ~ - ~ - W~E A~abil~ ~te M~lmum $35 x W~ Weber $30 2005 ~06 2007 2~8 2~9 2010 ~11 ~12 ~13 2~4 ~5 EPA Financial Capability [ndicator WTP and CSO Cost per Household Moderate~High Residential Financial Impact Option 1: Rayonier Tank Annual CTP 2029 Schedule Option 2: Wet Weather Annual CTP 2024 Schedule ~-..~! Option I: Annual CIP Expenditure With $2.00/ERU/Month Rate Increase · I *I~ Option 2: Wet Weather Annual CIP Expenditure With ~ $2.75/ERU/Month Rate Increase I ~.~o s~o ~ 14 Projected Rates With Steady Annual Increases $110'00t '100.00 :~ 90.00 ~ 80.00 ~ 70.00 '~ 60.00 ~ 50.00 40.00 30.00  Average Residential Rate vs. WDOE Maximum Affordability Rate $105.00 90.00- ~ 75.00 70.00 ~ ~ ~WDOE M~ 15 CSO Reduction From Current Levels with CTP Tmplementation Recommendations 32 ]6  CSO Capital Program Recommendations · Rayonier Acquisitions · Lincoln St. Stormwater separation (2006) Francis St. gravity sewer · Pursue options to use 48-in IWL for two forcemains · Railroad Ave./Lincoln St. gravity sewer · New PS 4 · WWTP secondary treatment modifications - re- rating recommendations Continue nine minimum control compliance Next S-Year Program 17 Financing Recommendations ~p~mp.l.ete P.roj, ect.s. Iden!i,,fi_ed i.n N. ext,5-year CIP ovioe suostan~ial CSu r~eouctionj · Evaluate policy and financial goals: - Reasonable annual rate increase - Delay projects past 2015 - Further analyze schedule and financing plan · Negotiate extension with Ecology Refine near term schedule and costs for rate analysis Apply for Iow interest loans and grants Grant and Loan Applications · Ecology State Revolving Fund and Centennial Clean Water Fund - Sept./Oct. 2004 App. for 2006 - $11 - $55M available - Currently 0.5 - 1.5% · Public Works Trust Fund - May 2005 App. for 2006 - $10M/$1M per Biennium - O.5 - 1.5% · Ecology Compliance Order may increase chances for funding Borrowing Cost per SMillion $0.93 $0.76 Annual B~3~d Paymen{ Annual Loan Payment Annua~ Payment 50% $/ERU/Month $/ERU/Month Bonds 150% LOans 37 $/ERU/Month Questions 19 WASHINGTON, U.S.A. UTILITY aDVISORY COMMITTEE[ ME[MO DATE: SEPTEMBER 14, 2004 TO: UTILITY ADVISORY COMMITTEE FROM: Glenn A. Cutler, Director of Public Works and Utilities SUBJECT: Update of Combined Sewer Overflow Directed Actions by Department of Ecology ISummary:Per the May 11, 2004 UAC meeting, attached is a summary of actions and their status required to meet the Department of Ecology's CSO requirements. Recommendation: No action required. Provided for information. Background/Analysis: City Staffand our consultant, Brown and Caldwell, have been aggressively pursuing accomplishing the DOE required actions within the required time lines. A table of the required items, actions, and completion dates is attached. The information is provided for information. Attach: DOE Actions & Schedule Table N:\UAC\DepDir\CSO-UAC update 4.wpd pORTANGELES W A S H i N G T O N, U. $. A. UTILITY aDVISORY COMMITTEE MEMO DATE: September 14, 2004 TO: UTILITY ADVISORY COMMITTEE FROM: Scott McLain, Deputy Director for Power Systems SUBJECT-' Budget Amendment for Economic and Engineering Services Agreement ;ummary: Economic and Engineering Services has been retained to perform a rate study for he Solid Waste Utility. A revised scope of work has been developed to assist the City in its ~roposal for the Solid Waste RFP. The estimated budget for the revised scope is $6,000. The ~greement has a current budget limit of $24,790. Recommendation: Forward a favorable recommendation to City Council to amend the not to exceed amount of the EES agreement to $30,790. Background/Analysis: The City retained EES to perform a comprehensive study of the Solid Waste Utility. A revised scope of work has been developed with EES to assist the City in developing the City's proposal to the Solid Waste RFP. The revised scope includes the following tasks: · Review selected sections of RFP document · Review the City's cost estimate · Review and evaluation of cost allocations · Review City Staffand Parametrix findings and recommendations · Written summary The revised scope is expected to take about 60 hours with an expected cost of $6,000. N:\UAC~FinaI\UAC budget adjustment RFP.doc UTILITY ADVISORY C;OMMITTEE MEMO DATE: September 14, 2004 To: UTILITY ADVISORY COMMITTEE FROM: Scott McLain, Deputy Director for Power Systems SUSJECT: Participant Agreement for Celerity Project Summary: Celerity Energy Partners, LLC, has entered into an agreement with the Bonneville Power Administration to develop a demonstration project aggregating a number of small generation units. The participation agreement under consideration defines the terms and conditions to integrate the 550 KW emergency generator at the Wastewater Treatment Plant into the demonstration project. Recommendation: Forward a favorable recommendation to City Council to sign the participation agreement with Celerity Energy Partners, LLC, for use of the Wastewater Treatment Plant emergency generator, in the generation aggregation project. Background/Analysis: Celerity Energy Partners, LLC has entered into an agreement with the Bonneville Power Administration to develop a pilot demonstration project that will aggregate a number of small generating units such that the systems could be brought onto the BPA system in times of transmission congestion. The project currently under consideration is the 550 KW emergency generator at the Wastewater Treatment Plant. The proposal for this unit will bring the generator online with the treatment plant and then disconnect from the BPA line such that the Treatment Plant load would not be served by BPA during these events. This pilot project will evaluate the effectiveness of aggregating small generators to delay building upgraded transmission facilities to handle the few hours in the year that the transmission system must operate at very high peak loads. Delaying this construction will benefit Port Angeles and the rest of the region by delaying the capital costs associated with the transmission improvement project. N:\UAC~Final\UAC 091404 participation agreement.doc Celerity Participation Agreement Sept. 14, 2O04 Page 2 The direct benefits that the City will receive for participating in this project include the following: · Equipment will become property of the City at the end of three-year project. Celerity will perform all maintenance during project. · Celerity will pay for all fuel costs during project. · City will receive credit for power produced during any generation. · Celerity will perform load bank test on machine once per year. · City will always be able to override system in any emergency to operate plant. · Gives City real world experience operating under emexgency conditions. The City must provide the following as a participant: · Celerity has right to bring generator online up to 100 hours per year. · We will have to pay for installed equipment on a sliding scale should we decide we want out of the contract before the end of the three year period. · City must perform minor walk around maintenance. Staffrecommends that we enter into a participation agreement with Celerity Energy Partners, LLC for use of the Wastewater Treatment Plant emergency generator for the generation aggregation pilot project. UAC 091404 participation agreement