HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 03/18/2014 - SECOND READING OF ORDINANCE NO. 032, 2014, APPROPRAgenda Item 5
Item # 5 Page 1
AGENDA ITEM SUMMARY March 18, 2014
City Council
STAFF
Link Mueller, Utilities Special Projects Manager
Jason Graham, Water Reclamation/Biosolids Manager
Kevin Gertig, Water Resources/Treatment Operations Manager
SUBJECT
Second 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
This Ordinance, unanimously adopted on First Reading on March 4, 2014, appropriates 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 Second Reading.
ATTACHMENTS
1. First Reading Agenda Item Summary, March 4, 2014 (w/o attachment) (PDF)
2. Ordinance No. 032, 2014 (PDF)
Agenda 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.
ATTACHMENT 1
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)
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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
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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