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Home My WebLink AboutCOUNCIL - AGENDA ITEM - 03/04/2014 - FIRST READING OF ORDINANCE NO. 032, 2014, APPROPRIAgenda Item 6 Item # 6 Page 1 AGENDA ITEM SUMMARY March 4, 2014 City Council STAFF Link Mueller, Utilities Special Projects Manager Jason Graham, Water Reclamation/Biosolids Manager Kevin Gertig, Water Resources/Treatment Operations Manager SUBJECT First Reading of Ordinance No. 032, 2014, Appropriating Unanticipated Grant Revenue in the Wastewater Fund and Authorizing the Transfer of Existing Appropriations from the Drake Water Reclamation Facility Improvements Capital Project for the Drake Water Reclamation Facility's Nutrient Grant Project for South Process Train Improvements. EXECUTIVE SUMMARY The purpose of this item is to appropriate grant funding in the amount of $1,080,000 in the Wastewater Fund. The grant funds will be used for the planning, design, and construction of a portion of the Nutrient Removal Improvements required for the Drake Water Reclamation Facilities’ South Process Train. STAFF RECOMMENDATION Staff recommends adoption of the Ordinance on First Reading. BACKGROUND / DISCUSSION In 2013 the Colorado General Assembly created a Nutrient Grant Program to assist wastewater treatment facilities in the planning, design, and construction of improvements to comply with Regulation #85, Nutrients Management Control, established by the Water Quality Control Commission in 2012. In July 2013, the State of Colorado, Department of Health and Environment announced that the City of Fort Collins had been awarded $1.08 million dollars in grant funds. Grant funds awarded under this program must be expended by May 31, 2016. Planning Grant Eighty thousand dollars ($80,000) was awarded to continue evaluation of locally-produced carbon sources for facilitating nutrient removal. Chemical nutrient removal technologies to provide redundancy for the existing and proposed biological nutrient removal facilities will also be researched and evaluated. This portion of the grant requires a 20% match ($16,000), which will come from existing appropriations for wastewater plant improvements. Construction Grant One million dollars ($1,000,000) is provided for the design and construction of nutrient removal improvements to the Drake Water Reclamation Facilities’ South Process Train. The Wastewater Fund’s 5-year Capital Improvement Program had already identified the design and construction of the South Process Train Improvements for nutrient removal in the 2014/2015 time frame. This grant will help fund a large portion of the required improvements. No match is required for this portion of the Grant. Agenda Item 6 Item # 6 Page 2 Overall Project The estimated construction of the South Process Train Improvements is $8.9 million dollars. In addition to the Grant Funding, two million dollars of funding for the 2014 construction will come from prior year appropriations for Water Reclamation Replacements. An offer for the 2015 construction funding will be requested in the 2015/2016 Budget. FINANCIAL / ECONOMIC IMPACT Drake Water Reclamation Facilities’ next Water Quality permit will require the improvements proposed for the South Process Train. The State has indicated the next permit will be issued after the Regulation #31 Basin Standard’s hearing, scheduled for the 2015/2016 time frame. The 2014 Wastewater Capital Budget included funds for the design of the South Process Train improvements. This Grant, coupled with proposed capital funding requests in the 2015/2016 budget, will allow the City meet its regulatory obligations. ENVIRONMENTAL IMPACTS In March 2013, the State passed Regulation #85, requiring Publicly Owned Treatment Works (POTWs) with greater than 2 million gallons per day capacity to meet more stringent effluent water quality. The regulation mandates that existing POTWs limit their effluent discharge on a monthly median value of Total Phosphorus to 1.0 mg/L and Total Inorganic Nitrogen (TIN) to 15 mg/L. BOARD / COMMISSION RECOMMENDATION At its February 20, 2014 meeting, the Water Board voted unanimously to recommend approval of the appropriation. ATTACHMENTS 1. Water Board minutes, February 20, 2014 (PDF) Excerpt from Unapproved Water Board Minutes, February 20, 2014 1 State of Colorado CDPHE Nutrient Grant Appropriation (Attachments available upon request). Water Reclamation and Biosolids Manager Jason Graham and Capital Projects Engineer Link Mueller presented information on this item. The purpose of this item is to appropriate grant funding in the amount of $1,080,000 in the Wastewater Fund. The grant funds will be used for the planning, design, and construction of a portion of the Nutrient Removal Improvements required for the Drake Water Reclamation Facility’s (DWRF) South Process Train. The North Process Train has already been updated. State awarded the grant to the City in July 2013: 1 of 12 grants issued in the State. $80,000 for Planning Grant $1,000,000 for Design and Construction Grant Planning Grant: Chemical Phosphorus Removal o Pilot removal in stabilized sludge just prior to dewatering o Goal to minimize Phosphorus recirculation Develop Nutrient Engineering Report o Continue local Carbon evaluation o Beer Waste Phase III is underway Mr. Graham shared some background information on the Brew Waste Study. Colorado Wastewater Treatment Plants operate under Regulation (Reg.) 85. Reg. 85 establishes requirements for organizations holding a National Pollutant Discharge Elimination System (NPDES) permit. Since DWRF had high levels of phosphorus and nitrogen, community sources of carbon were sought that could be introduced in the wastewater treatment process to help reduce these levels. The addition of carbon from brewery waste has removed both phosphorus and nitrogen. Mr. Graham presented some photographs of the Carbon Piloting Phase III. Mr. Mueller presented a site map of the Drake Water Reclamation Facility and a map showing the proposed South Process Train Improvements. He also presented a drawing of the proposed layout. Funding for South Process Train Improvements: 2014 Funding o 2014 Appropriation - $481,000 for South Process Train Design o Nutrient Removal Grant - $1,000,000 o Existing Replacement Funds - $2,000,000 Proposed 2015 Funding o $5,400,000 request in the 2015/2016 BFO offer o Regulatory based o CDPHE expectation in continuation of Water Reclamation Facility Improvements Highlights from the discussion: A board member inquired about the content of the brewery waste. Mr. Mueller stated this is primarily spent grains, yeast, and sugars from the bottom of the tanks. This is high- Excerpt from Unapproved Water Board Minutes, February 20, 2014 2 strength waste compared to municipal waste, and is material that is normally land- applied. A board member asked for clarification on the available funds. Mr. Graham stated staff is asking City Council for appropriation of the grant funding. The grant money is unanticipated revenue and grant funds awarded under this program must be expended by May 31, 2016. A board member inquired about the future use of ultraviolet (UV) to replace the current use of chlorine gas for disinfection. Staff stated this may be part of a future BFO offer. A board member inquired about electrical upgrades to the Mulberry Water Reclamation Facility (MWRF) and the improved energy efficiency. Mr. Mueller stated planned improvements to the South Process Train will improve MWRF’s energy efficiency. Vote on the motion: It passed unanimously. Board Member Brian Brown moved that the Water Board recommend adoption of the Ordinance for appropriation of Unanticipated Grant Revenue into the Wastewater Fund for the Drake Water Reclamation Facility's Nutrient Grant Project for South Process Train Improvements on First Reading. Board Member Hill seconded the motion. - 1 - ORDINANCE NO. 032, 2014 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROPRIATING UNANTICIPATED GRANT REVENUE IN THE WASTEWATER FUND AND AUTHORIZING THE TRANSFER OF EXISTING APPROPRIATIONS FROM THE DRAKE WATER RECLAMATION FACILITY IMPROVEMENTS CAPITAL PROJECT FOR THE DRAKE WATER RECLAMATION FACILITY’S NUTRIENT GRANT PROJECT FOR SOUTH PROCESS TRAIN IMPROVEMENTS WHEREAS, the Utilities Department has received two grants from the State of Colorado totaling $1,080,000 to study local carbon sources, evaluate nutrient removal options and assist in the design and construction of plant improvements; and WHEREAS, the planning grant of $80,000 will allow the City to continue evaluation of locally-produced carbon sources for facilitating nutrient removal and research chemical nutrient removal technologies to provide redundancy for the existing and proposed biological nutrient removal facilities; and WHEREAS, the second grant of $1,000,000 will assist in the design and construction of nutrient removal improvements to the Drake Water Reclamation Facilities’ South Process Train, as identified in the Wastewater Funds 5-year Capital Improvement Program for nutrient removal improvements in the 2014/2015 timeframe; and WHEREAS, the State of Colorado planning grant requires a 20% local funding match totaling $16,000 which will be transferred from existing appropriations in the Drake Water Reclamation Facility Improvements Capital Project to the Drake Water Reclamation Facility Nutrient Grant Project; and WHEREAS, the grant-supported Projects will facilitate the City’s ability to meet the regulatory water quality requirements mandated by the Colorado Department of Public Health and Environment’s Regulation No. 85 (Nutrients Management Control); and WHEREAS, Article V, Section 9, of the City Charter permits the City Council to make supplemental appropriations by ordinance at any time during the fiscal year, provided that the total amount of such supplemental appropriations, in combination with all previous appropriations for that fiscal year, does not exceed the current estimate of actual and anticipated revenues to be received during the fiscal year; and WHEREAS, City staff has determined that the appropriation of the grant and matching funds revenue as described herein will not cause the total amount appropriated in the Wastewater Fund to exceed the current estimate of actual and anticipated revenues to be received in that fund during any fiscal year; and WHEREAS, Article V, Section 10, of the City Charter authorizes the City Council to transfer by ordinance any unexpended and unencumbered appropriated amount or portion thereof - 2 - from one fund or capital project to another fund or capital project, provided that the purpose for which the transferred funds are to be expended remains unchanged. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1. That there is hereby appropriated for expenditure from unanticipated grant revenue in the Wastewater Fund the sum of EIGHTY THOUSAND DOLLARS ($80,000) for the continued evaluation of locally-produced carbon sources for facilitating nutrient removal. Section 2. That there is hereby appropriated for expenditure from unanticipated grant revenue in the Wastewater Fund the sum of ONE MILLION DOLLARS ($1,000,000) for the design and construction of nutrient removal improvements to the Drake Water Reclamation Facilities’ South Process Train. Section 3. That the unexpended appropriated amount of SIXTEEN THOUSAND DOLLARS ($16,000) in the Drake Water Reclamation Facility Improvements Capital Project is authorized for transfer to the Drake Water Reclamation Facility Nutrient Grant Project and appropriated therein for expenditure on the Project. Introduced, considered favorably on first reading, and ordered published this 4th day of March, A.D. 2014, and to be presented for final passage on the 18th day of March, A.D. 2014. __________________________________ Mayor ATTEST: _______________________________ City Clerk Passed and adopted on final reading on the 18th day of March, A.D. 2014. __________________________________ Mayor ATTEST: _______________________________ City Clerk