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Home My WebLink About5D Staff Correspondence (WWTP Rate Study CIP)City of Palm Springs WASTEWATER FINANCIAL PLAN / RATE STUDY 2021 WASTEWATER CAPITAL PROGRAM APRIL 22, 2021 2 Palm Springs Wastewater Treatment Plant Liquids and Solids Treatment Processes 10.9 million gallons per day capacity City of Palm Springs Wastewater Financial Plan / Rate Study Wastewater Capital Improvement Program 3 Palm Springs Sewer Collection System 265 miles of sewer lines 5,500 manholes 5 lift stations City of Palm Springs Wastewater Financial Plan / Rate Study Wastewater Capital Improvement Program LEG,END 8.as i ns -1 -.2 -3 -4 -5 -B -9 -10 11 -12 -13 -14 15 -16 -11 0 o.-----L5 2 _j N 4 Primary Treatment City of Palm Springs Wastewater Financial Plan / Rate Study Wastewater Capital Improvement Program Recently completed upgrade to Headworks / Primary Clarifiers 5 Secondary Treatment City of Palm Springs Wastewater Financial Plan / Rate Study Wastewater Capital Improvement Program May need to be replaced depending upon new Liquids Treatment requirements. 6 Liquids Disposal to Percolation Ponds City of Palm Springs Wastewater Financial Plan / Rate Study Wastewater Capital Improvement Program Treated wastewater discharged to percolation ponds. 7 Solids Treatment / Disposal City of Palm Springs Wastewater Financial Plan / Rate Study Wastewater Capital Improvement Program Solids treatment generates biogas that is flared producing GHGs Consideration of utilizing biogas as a renewable energy source (generate electricity or clean as renewable natural gas) 8 Wastewater Flows into the WWTP have reduced over time City of Palm Springs Wastewater Financial Plan / Rate Study Wastewater Capital Improvement Program 5.81 6.08 6.04 6.04 5.73 5.80 6.00 5.40 4.82 0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20Million Gallons per DayFiscal Year Annual Average Daily Flow (MGD)FY 19/20 annual average = 4.82 mgd 44% of plant capacity No future expansion will be required • • • • • 9 Regional Water Quality Control Board Permit City of Palm Springs Wastewater Financial Plan / Rate Study Wastewater Capital Improvement Program •Prior permit issued in 1993, no requirement to treat for Total Nitrogen (TN) or Total Dissolved Salts (TDS) •Updated permit issued 2017 incorporates latest State Water Board regulations to address TN and TDS in wastewater •City required to analyze sources of TN and TDS and evaluate ability to reduce/control sources or otherwise reduce TN and TDS in treated wastewater discharged to percolation ponds 10 Recycled Water Partnership with Desert Water Agency City of Palm Springs Wastewater Financial Plan / Rate Study Wastewater Capital Improvement Program •Agreement dates back to 1977 •1988 DWA constructed original Reclamation Facility to process City’s treated wastewater for recycled water use, currently used to irrigate Demuth Park, Tahquitz Creek Golf Course, Escena Golf Course, Mesquite Country Club Golf Course, Palm Springs High School athletic fields, Dinah Shore Drive median landscaping •Through this partnership, more treated wastewater is reused for irrigation purposes than is discharged to the percolation ponds. 11 Recycled Water Partnership with Desert Water Agency City of Palm Springs Wastewater Financial Plan / Rate Study Wastewater Capital Improvement Program Over the last 9 years the City has diverted fully 2/3 of its treated wastewater to DWA for recycled water Treated Wastewater Diverted to DWA 2,500.00 2,000.00 1,500.00 1,000.00 500.00 0.00 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 •Treated Wastewater (Million Gallons} • Effluent Diverted to DWA (Million Gallons} 12 Liquids Treatment –Total Nitrogen (TN) Removal City of Palm Springs Wastewater Financial Plan / Rate Study Wastewater Capital Improvement Program Alternative 1A New Biologically Activated Filter (BAF)–a new treatment process that utilizes the existing Secondary Treatment processes (the Trickling Filters and Secondary Clarifiers) but adds a new filter system to remove the nitrogen. Alternative 2A New Conventional Activated Sludge (CAS)–a new treatment process that requires removal of the existing Trickling Filters and replaces them with new tanks to treat and remove the nitrogen. Alternative 3A New Membrane Reactor (MBR)–a new treatment process that requires removal of the existing Secondary Treatment processes (both the Trickling Filters and Secondary Clarifiers) and replaces it with new tanks and a membrane filtration system to remove the nitrogen. 13 Liquids Treatment –Total Nitrogen (TN) Removal City of Palm Springs Wastewater Financial Plan / Rate Study Wastewater Capital Improvement Program Alternative Process Train Capital Cost ($M) Annual O&M Cost ($M/Year) Net Present Value ($M) 1A BAF $45 $2.3 $80 2A CAS $51 $2.3 $85 3A MBR $60 $3.7 $115 The lowest overall capital cost is identified for Alternative 1A at $45 million with estimated annual O&M costs of $2.3 million for a net present value cost of $80 million. 14 Liquids Treatment –Total Nitrogen (TN) Removal City of Palm Springs Wastewater Financial Plan / Rate Study Wastewater Capital Improvement Program •Nitrogen helps with landscaping irrigated with recycled water –acts as a fertilizer •Mass-loading basis: At full plant capacity (4 Billion Gallons Annually)@ 10mg/L TN concentration,City is permitted to discharge 167 tons of TN into the ground At existing flows to percolation ponds (688 Million Gallons Annually)@ 16.5 mg/L TN concentration,City only discharges 47 tons of TN into the ground = 28%of the amount otherwise allowed to discharge 15 Liquids Treatment –Total Dissolved Solids (TDS) Removal City of Palm Springs Wastewater Financial Plan / Rate Study Wastewater Capital Improvement Program Salt concentration varies in water, 10 mg/L to > 50,000 mg/L App o,ximate To a l D i ss1olved Sol i"ds (TDS), Vial . es in Natu al Wate,rs 10 ,40 275 Bnnes 16 Liquids Treatment –Total Dissolved Solids (TDS) Removal City of Palm Springs Wastewater Financial Plan / Rate Study Wastewater Capital Improvement Program •Salt concentration in Palm Springs groundwater = 376 mg/L •Salt concentration in wastewater = 602.5 mg/L and increasing to over 700 mg/L 0 100 200 300 400 500 600 700 800 TDS in mg/LDate TDS in Wastewater Flow 17 Liquids Treatment –Total Dissolved Solids (TDS) Removal City of Palm Springs Wastewater Financial Plan / Rate Study Wastewater Capital Improvement Program •Regional Board set interim limit of 700 mg/L, may require City to add processes at treatment plant to remove salts from wastewater •Alternative 1B: Alternative 1A + Side Stream Micro Filtration / Reverse Osmosis (MF/RO) –a new treatment process that utilizes the existing Secondary Treatment processes (the Trickling Filters and Secondary Clarifiers), adds a new filter system to remove the nitrogen, and adds another microfilter and RO system to remove TDS. •Alternative 2B: Alternative 2A + Side Stream Micro Filtration / Reverse Osmosis (MF/RO) –a new treatment process that requires removal of the existing Trickling Filters and replaces them with new tanks to treat and remove the nitrogen, and adds another microfilter and RO system to remove TDS. •Alternative 3B: Alternative 3A + Side Stream Reverse Osmosis (RO)–a new treatment process that requires removal of the existing Secondary Treatment processes (both the Trickling Filters and Secondary Clarifiers) and replaces this with new tanks and a membrane filtration system to remove the nitrogen, and adds a new RO system to remove TDS. 18 Liquids Treatment –Total Dissolved Solids (TDS) Removal City of Palm Springs Wastewater Financial Plan / Rate Study Wastewater Capital Improvement Program The lowest overall net present value cost is identified for Alternative 1B at $141 million.This cost includes both liquids treatment processes for TN and TDS. Until the Regional Board imposes TN /TDS Removal on Palm Springs,these projects will be deferred and not funded. Alternative Process Train Capital Cost ($M) Annual O&M Cost ($M/Year) Net Present Value ($M) 1B Alt. 1A + MF/RO $77 $4.3 $141 2B Alt. 1B + MF/RO $85 $4.3 $148 3B Alt 3A + RO $76 $5.3 $155 19 Liquids Treatment –Total Dissolved Solids (TDS) Removal City of Palm Springs Wastewater Financial Plan / Rate Study Wastewater Capital Improvement Program •Colorado River water is imported as groundwater replenishment at higher salt concentration of 747 mg/L as compared to City’s discharge of treated wastewater =0.55%of total annual volume of imported Colorado River water. •Mass-loading basis: At full plant capacity (4 Billion Gallons Annually)@ 700mg/L TDS concentration,City is permitted to discharge 11 ,600 tons of salt into the ground At existing flows to percolation ponds (688 Million Gallons Annually)@ 583 mg/L TDS concentration,City only discharges 1,700 tons of salt into the ground =14%of the amount otherwise allowed to discharge 20 Proposed 5-Year Wastewater Capital Improvement Program City of Palm Springs Wastewater Financial Plan / Rate Study Wastewater Capital Improvement Program Project Name Capital Cost ($M) 1 Digester No.2 Replacement w/Gas Storage and new gas flare $10.60 2 Filtrate Pump Station Upgrade $2.30 3 General Sitework Pavement Replacement $1.60 4 Rehabilitate Sludge Drying Beds $1.10 5 Abandon Headworks,Primary Clarifiers,Sand Filter,Chlorine Tank $3.70 6 New Solids Handling/Dewatering Facility with Odor Control $27.00 7 New Primary Effluent Pump Station $4.52 8 New Access Road with Traffic Signal $1.35 9 New Administration Building $6.36 10 Percolation Pond Improvements $1.61 11 Bogert Trail Lift Station $2.13 12 Sewer Collection System Repairs $4.00 13 Indian Canyon Drive Sewer Extension $11.00 14 Expansion of Solar System $2.00 Total Estimated Cost:$79.27 21 Sewer Rates City of Palm Springs Wastewater Financial Plan / Rate Study Wastewater Capital Improvement Program $ 66 $ 50 $ 45 $ 40 $ 35 $ 30 $ 25 $ 20 $15 $10 $5 $-r Palm Springs Ciity of CVWD -City of Banning Coachella Redlands Valley Lake Hemet IMWD Valley Sanitary District T City of San Rancho Jacinto California Water District -Average r City of City of HDWD-City of Mission Western Hemet Beaumont Yuca Coachella Springs Muniicipa l Valley Water Water District Di strict 22 Sewer Rates City of Palm Springs Wastewater Financial Plan / Rate Study Wastewater Capital Improvement Program •Sewer rate increase approved in 2012 increasing rates to current $20 /month intended to accumulate fund balance to finance Capital Improvement Program on a “pay as you go”basis •Annual Wastewater Fund revenue =$12.3m •Annual Wastewater Fund O&M costs =$5.5m •Annual surplus =$6.8m •Current Wastewater Fund Balance =$72.3m •Draw down Fund Balance over next 5 years to finance Capital Improvement Program •No Sewer Rate Increase will be required (unless Board requires TN/TDS Removal) 23 Financing of 5-Year Capital Improvement Program City of Palm Springs Wastewater Financial Plan / Rate Study Wastewater Capital Improvement Program ..,..-,.., ~ $BO.OM $70.0M ~ $60.0M ru 0 i $50.0M m cc "'CJ $40.0M s= :::I ~ $30.0M :::I C: ru 2·0 •M· ;:::,. I . . " .· ru 0::: $10.0M $0.0M I I I I I I I I I I I I I --I I I I -Current Plan --Target -- - -• • • I I I I I I 24 Sewer Facility Fee Reduction City of Palm Springs Wastewater Financial Plan / Rate Study Wastewater Capital Improvement Program •Current sewer facility fee (connection fee)=$3,000 per Equivalent Dwelling Unit (EDUs) •Has been in effect since June 2006 •Based on recent analysis that an expansion of the Wastewater Treatment Plant will not be required in the future,the sewer facility fee was reviewed for an applicable cost to “Buy-In”to the wastewater system based on the asset value of the system Component Value Treatment $54,790,184 Collection $21,503,325 Total $76,293,509 25 Sewer Facility Fee Reduction City of Palm Springs Wastewater Financial Plan / Rate Study Wastewater Capital Improvement Program •Revised sewer facility fee based on build-out number of connections (75,842 EDUs) •Sewer facility fee may be reduced based on “Buy-In”Method Component Asset Value System Capacity (EDUs)Facility Fee Treatment $54,790,184 75,842 $722.43 Collection $21,503,325 75,842 $283.53 Total $76,293,509 75,842 $1,005.95 26 Sewer Facility Fee Reduction City of Palm Springs Wastewater Financial Plan / Rate Study Wastewater Capital Improvement Program •Recommend sewer facility fee reduced from $3,000 to $1,006 per EDU for residential uses •Sewer facility fee to be reduced for non-residential uses as follows: Property Type Current Fee Proposed Fee Commercial and Industrial Properties $306 / Fixture Unit $100 / Fixture Unit Hotel Room (without kitchen)$1,290 / Unit $343 / Unit Hotel Room (with kitchen)$1,500 / Unit $663 / Unit Recreational Vehicle Park Spaces $2,340 / Unit $246 / Unit 27 New Sewer Facility Fee (Sewer Street Main Charge) City of Palm Springs Wastewater Financial Plan / Rate Study Wastewater Capital Improvement Program •Recommend new fee for extension of public sewers in areas of Palm Springs without sewer service –entirely voluntary program at resident request •Fee is developed by cost to extend sewer divided by number of homes to be connected Sewer Li ne Extens i on (LF) Cost Per Linear Foot o f Pr oj ect {$/LF) --- Number of EDUs se r ve d i n Benefit Area (EDUs) --Cost Per EDU ($/EDU) 28 New Sewer Facility Fee (Sewer Street Main Charge) City of Palm Springs Wastewater Financial Plan / Rate Study Wastewater Capital Improvement Program •New fees vary depending on cost of sewer and number of homes •Fee may be collected pursuant to long-term agreement with fee paid over time pursuant to recorded agreement binding on future property owners Sewer Line Extension Area Sewer Line Extension Length (LF) Cost Per Linear Foot* Anticipated Project Cost EDUs Served Approximate Cost Per EDU Arnico Street 730 425.00$ 310,250.00$ 21 14,773.81$ Executive Drive 1,300 425.00$ 552,500.00$ 21 26,309.52$ Racquet Club Road 7,100 425.00$ 3,017,500.00$ 114 26,469.30$ Camino Del Norte 1,360 425.00$ 578,000.00$ 26 22,230.77$ Chino Canyon/Panorama 6,110 425.00$ 2,596,750.00$ 58 44,771.55$ Panga Way 280 425.00$ 119,000.00$ 4 29,750.00$ Santa Rosa Drive 500 425.00$ 212,500.00$ 5 42,500.00$ Chuilla Hills Drive 2,410 425.00$ 1,024,250.00$ 21 48,773.81$ El Camino/Crestview 800 425.00$ 340,000.00$ 24 14,166.67$ 29 Recommendations City of Palm Springs Wastewater Financial Plan / Rate Study Wastewater Capital Improvement Program •Approve 2021 Wastewater Capital Rehabilitation and Repair Plan and 5-Year Capital Improvement Program •Amend FY 20-21 Allocated Positions &Compensation Plan to fund (1)Senior Civil Engineer position allocated to Wastewater Fund to manage the 5-Year Capital Improvement Program (no General Fund cost) •Adopt Resolution to reduce the current Sewer Facility Fees •Schedule Public Hearing on May 27 to consider establishing new Sewer Facility Fees for Sewer Street Main Charges