HomeMy WebLinkAbout12/6/2000 - STAFF REPORTS (8) DATE: December 6, 2000
TO: City Council
FROM: Assistant City Manager- Special Projects
WASTEWATER TREATMENT PLANT EQUIPMENT & EFFICIENCY IMPROVEMENTS
RECOMMENDATION:
It is recommended that City Council authorize staff to conduct final negotiations with
US Filter Operating Services(USFOS)for efficiency improvements at the Wastewater
Treatment Plant(WWTP),that WWTP reserves be utilized to fund the project and that
a denitrification study be authorized.
SUMMARY:
This action would authorize final negotiations with US Filter to carry out efficiency
improvements at the plant so as to increase the hydraulic capacity to 12 MGD utilizing
WWTP reserves and would authorize a denitrification study.
BACKGROUND:
The WWTP has a capacity of 10.9 MGD with current average demand at 8.9 and
peaking in excess of capacity. It is at this point that the Regional Water Quality Board
requires operators to begin the expansion process.
One of the primary reasons that the City undertook its privatization effort was to have
an operator with experience in operating and expanding plants. Both finalist firms told
the City that efficiency improvement at the plant, rather than a major public works
expansion effort, could be implemented to bring hydraulic capacity to 12 MGD. With
almost a year of actual operations of the City's plant behind it, USFOS has identified
efficiency improvements as follows that will result in a 12 MGD plant:
• Installation of a belt press for increased sludge drying.
• Rework/replace headworks/sludge mechanisms.
Reroute the trickling filter line.
• Cover the primary clarifiers.
In reviewing the most efficient and cost-effective way of carrying out the desired
impacts, staff sought the City Attorney's opinion on utilizing a design/build process.
The Attorney found that without an actual "lease" with USFOS, state law did not
provide for design/build. The City, as a Charter City, could, through itsredrafting of
its procurement ordinance, authorize design/build. Section 5.3 of the agreement with
USFOS allows for equipment replacement and efficiency improvements and calls for
USFOS to provide a scope of work and fixed cost to carry out the proposed work.
The City is to evaluate the scope and review the cost proposal and then may
authorize USFOS to complete the work. It is this process that staff recommends be
followed. USFOS has provided the scope of work and a cost of $2.823 million with
a 14-month plus environmental time line. Staff is in the process of closely scrutinizing
the cost proposal. To complete this package of work under the traditional public
works process, staff has estimated a cost of$3.385 million and at least a 2-year plus
environmental time line.
WWTP Equipment Replacement & Efficiency Improvements
December 6, 2000
Page Two
Financing Options:The Palm Springs WWTP is at the top of the state's low interest/no
interest loan program. Staff has closely examined this attractive program which
provides 100% financing at 2.7% interest or 83% financing at 0% interest. The loan
program has a study process requirement, state approval process requirement,
prevailing wage requirement, and a special process for design/build, all of which add
substantial cost. By the time all the special requirements costs are added to the
project, any interest savings that may have occurred are absorbed by the project.
The WWTP Fund currently has a balance of$6.3 million. The City Council adopted
policy Resolution#19793 which established that a minimum fund balance should be
maintained at $2.2 million. The proposed project costs of $2.863 million plus
environmental, if taken from fund balance, would leave a reserve of$3.477 million.
Therefore, staff recommends that these improvements bepaid for by funds already
on hand. This funding approach would have no impact on sewer serve charge rates.
Denitrification: The City Council recently authorized USFOS to conduct a ground
water dispersion model study. The results of that study will define the extent of any
nitrate problem. Staff has negotiated with USFOS for a follow-on engineering analysis
of denitrification for a flat fee of$33,000. This analysis would take the ground water
data and develop a specific approach for WWTP denitrification effort so the plant
could meet Regional Water Quality Board standards.
Based on the above data, staff recommends City Council approval of the attached
Resolution which would authorize efficiency improvements to the WWTP utilizing
USFOS, subject to final cost review and acceptance, authorize paying for the
improvements from WWTP fund balance, and would authorize a denitrification
engineering analysis.
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ALLEN F. SMOO , AAE
Assistant City Manager- Special Projects
APPROVED:
City Manager
Attachment: REVIEWED BY DEPT.OF FINANCE
1. Resolution 4.
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RESOLUTION NO.
OF THE CITY COUNCIL OF THE CITY OF
PALM SPRINGS, CALIFORNIA,
AUTHORIZING U.S. FILTER OPERATING
SERVICES, SUBJECT TO FINAL SCOPE AND
COST ACCEPTANCE, TO CARRY OUT
EFFICIENCY IMPROVEMENTS TO THE
WASTEWATER TREATMENT PLANT TO
BRING HYDRAULIC CAPACITY TO 12 MGD,
AUTHORIZING THE FUNDING OF THESE
IMPROVEMENTS FROM THE RESERVES OF
THE WASTEWATER FUND, AND
AUTHORIZINGA$33,000 DENITRIFICATION
ENGINEERING ANALYSIS BY U.S. FILTER
OPERATING SERVICES.
WHEREAS the City of Palm Springs,via a competitive process,selected U.S. Filter Operating
Services (USFOS) as the firm to operate and maintain the Wastewater Treatment Plant; and
WHEREAS the contract with USFOS contemplates that equipment upgrades and efficiency
improvements to the plant may be carried by USFOS on behalf of the City; and
WHEREAS after ten (10) months of operating the plant, USFOS has determined that certain
equipment upgrades and plant efficiency improvements can be made which will result in a
hydraulic capacity enhancement to 12 MGD and odor control enhancements; and
WHEREAS these improvements have been estimated at below$3 million which can be paid
from plant reserves and still allow for a reserve in excess of$3 million, well above the City
Council established $2.2 million minium, and
WHEREAS the City has authorized USFOS to undertake a Ground Water Dispersion Model
Study to determine nitrate level and possible sources and that this data can be utilized to
develop nitrate removal programs for the City's wastewater treatment efforts,
NOW THEREFORE BE IT RESOLVED as follows:
1. That subject to final Scope and Cost acceptance, USFOS is hereby selected to
perform necessary and desired equipment upgrades and efficiency improvements to
the Wastewater Treatment Plant so as to increase hydraulic capacity to 12 MGD;and
2. That funding for the proposed improvements may be taken from the Wastewater
Treatment Plant reserve fund; and
3. That USFOS is hereby authorized to proceed with a denitrification engineering
analysis for a cost of $33,000, to determine needed process improvements for the
plant.
446
ADOPTED this day of , 2000.
AYES:
NOES:
ABSENT:
ATTEST: CITY OF PALM SPRINGS, CALIFORNIA
City Clerk City Manager
REVIEWED &APPROVED AS TO FORM