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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.