HomeMy WebLinkAbout08275ORDINANCE NO. 8275
AN ORDINANCE BUDGETING AND APPROPRIATING THE AMOUNT
OF $1,100,000 FOR CONSTRUCTION AT THE JAMES R. DIIORIO
WATER RECLAMATION FACILITY FOR THE SOLAR PHOTOVOLTAIC
PROJECT WWL02B AND FOR A DEWATERING SYSTEM PROJECT
WWL01A AS PART OF THE AMMONIA REMOVAL PROJECT
WHEREAS, the City of Pueblo’s Wastewater Department in 2009 entered into an
engineering design contract with Black & Veatch Corporation and a construction contract with
Milender White Construction Company for installation of solar power at the James R. DiIorio
Water Reclamation facility, and:
WHEREAS, the City of Pueblo’s Wastewater Department in 2009 entered into a
construction contract with Black & Veatch corporation for design and permitting of a dewatering
system at the James R. DiIorio Water Reclamation facility, and:
WHEREAS, the cost of the project requires additional funding.
BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1.
Funds in the amount of $200,000 shall be budgeted and appropriated to the James R.
DiIorio Water Reclamation Facility’s Solar Photovoltaic project WWL02B from the rebate check
received from Black Hills Energy for $200,000 for payment associated with the on site
photovoltaic system located at the James R. DiIorio Water Reclamation Facility.
SECTION 2.
The amount of $800,000 shall be budgeted and appropriated to the James R. DiIorio
Water Reclamation Facility’s Solar Photovoltaic project WWL02B from the Sewer User Fund
Reserves for said project.
SECTION 3.
The amount of $100,000 shall be budgeted and appropriated to the James R. DiIorio
Water Reclamation Facility’s Dewatering project WWL01A from the Sewer User Fund Reserves
for said project.
SECTION 4.
This ordinance shall be effective immediately upon passage.
INTRODUCED: October 12, 2010
BY: Vera Ortegon
COUNCILPERSON
PASSED AND APPROVED: October 25, 2010
Background Paper for Proposed
ORDINANCE
DATE: OCTOBER 12, 2010 AGENDA ITEM # R-4
DEPARTMENT:
WASTEWATER DEPARTMENT
GENE MICHAEL, DIRECTOR
TITLE
AN ORDINANCE BUDGETING AND APPROPRIATING THE AMOUNT OF $1,100,000
FOR CONSTRUCTION AT THE JAMES R. DIIORIO WATER RECLAMATION
FACILITY FOR THE SOLAR PHOTOVOLTAIC PROJECT WWL02B AND FOR A
DEWATERING SYSTEM PROJECT WWL01A AS PART OF THE AMMONIA
REMOVAL PROJECT
ISSUE
Should City Council budget and appropriate an additional amount of $1,100,000 for
construction at the James R. DiIorio Water Reclamation Facility for the Solar
Photovoltaic project WWL02B and for a Dewatering System project WWL01A as part of
the Ammonia Removal project?
RECOMMENDATION
Approval of this Ordinance.
BACKGROUND
On April 27, 2009, City Council adopted Ordinance No. 7998 appropriating $4,500,000
from the Sewer User Fund Reserve to fund engineering design services for the
Ammonia Removal Project at the James R. DiIorio Water Reclamation Facility. At that
time the City had applied for funding from both the American Recovery and
Reinvestment Act of 2009 (ARRA) and from the State Revolving Fund (SRF) loan
program, but the amounts of monies that would be awarded were unknown. However,
in order to meet the deadlines associated with both programs, it was necessary to begin
engineering design work immediately. The $4,500,000 was intended to pay for
engineering design services in advance of the loan awards, and was to be reimbursed
from the loans.
Ordinance 7998 stated that when loan funds were received, the appropriate funds
would be transferred to the Sewer User Fund Reserve. That transfer has been made in
accordance with that requirement. However, some engineering work which had not
been billed at the time the funds were transferred back to the reserve remains unpaid.
An additional amount of $1,100,000 is required. This appropriation does not represent
an increase in the cost of the project.
FINANCIAL IMPACT
On September 10, 2010 the Wastewater Department received a check from Black Hills
Energy in the amount of $200,000 which represents a rebate payment for participating
in the Black Hills Energy solar rebate purchase program. These funds can be used
towards the cost of the solar photovoltaic project. The additional $900,000 will be taken
from the Sewer User Fund reserves.