HomeMy WebLinkAbout07998ORDINANCE NO. 7998
AN ORDINANCE BUDGETING AND APPROPRIATING THE AMOUNT
OF $4,500,000.00 FROM THE SEWER USER FUND RESERVE FOR
PROFESSIONAL ENGINEERING SERVICES INCIDENT TO THE
DESIGN AND CONSTRUCTION MANAGEMENT OF THE JAMES R.
DIIORIO WATER RECLAMATION FACILITY AMMONIA REMOVAL
PROJECT
BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1.
The amount of $4,500,000.00 is hereby budgeted and appropriated from the Sewer User
Fund Reserve for professional engineering services incident to the design and construction
management of the Ammonia Removal Project at the James R. Dilorio Water Reclamation
Facility.
SECTION 2.
The amount of $4,500,000.00 shall be budgeted and appropriated to the capital
improvement account in the Sewer User Fund for said project.
SECTION 3
Funds from loans made under the American Reinvestment and Recovery Act of 2009
and the State Revolving Fund shall upon receipt by the City be transferred to the Sewer User
Fund Reserve. $4,500,000.00 in Sewer User Fund Reserves are hereby budgeted and
appropriated for the Project, said funds are to be held in a separate reserve fund subject to
transfer by Resolution of the City Council.
A77ESTED SY:
CITY CLERK
INTRODUCED: April 13, 2009
BY: Randy Thurston
Councilperson
APPR t)' 40 �-
PRESIDENTof City Council
PASSED AND APPROVED: April 27, 2009
L) 4
Background Paper for Proposed
ORDINANCE
AGENDA ITEM # 28
DATE: April 13, 2009
DEPARTMENT: WASTEWATER DEPARTMENT
Gene Michael, Director
TITLE
AN ORDINANCE BUDGETING AND APPROPRIATING THE AMOUNT OF
$4,500,000.00 FROM THE SEWER USER FUND RESERVE FOR PROFESSIONAL
ENGINEERING SERVICES INCIDENT TO THE DESIGN AND CONSTRUCTION
MANAGEMENT OF THE JAMES R. DIIORIO WATER RECLAMATION FACILITY
AMMONIA REMOVAL PROJECT
ISSUE
Should the City Council budget and appropriate the amount of $4,500,000.00 from the
Sewer User Fund Reserve for design and construction management of the James R.
Dilorio Water Reclamation Facility Ammonia Removal Project.
RECOMMENDATION
Approval of this ordinance
BACKGROUND
Pueblo operates the James R. Dilorio Water Reclamation Facility under a discharge
permit issued by the State of Colorado to treat wastewater generated within the
community. The discharge permit is issued for a period of five years, and contains
numeric limits for maximum concentrations of specific chemicals that can be discharged
in the effluent from the treatment facility. In 2005 the State of Colorado adopted a new
water quality rule establishing more restrictive standards for ammonia. Pueblo's new
discharge permit will contain numeric limits for ammonia that the existing treatment
facility cannot attain reliably. Maintaining compliance will require constructing new
treatment facilities. In addition, Pueblo is considering an optional project converting the
existing gaseous chlorine disinfection process to disinfection via ultraviolet radiation, to
be constructed only if federal funding is available.
Both projects require substantial professional engineering work for detailed facility
design, plan approval by the State of Colorado, and development of bidding documents
for selection of construction contractors through a competitive bidding process. The
Black & Veatch Corporation was selected in 2005 through a competitive bidding
process to serve as the Wastewater Department's Engineer of Record, and will be
responsible for providing these engineering services. In addition, these projects will
entail large -scale industrial construction that exceeds the scope and expertise of the
City's inspectors. The City will need to retain expert construction management
assistance to ensure these projects are constructed properly, timely, and within budget.
Black & Veatch will also provide construction management services.
The State of Colorado has a process for establishing its funding priority list and
disbursing funds that is expected to result in making loans available by October 2009.
However, due to the current national economic downturn, there is significant pressure to
rush more money into circulation. To accomplish this goal, loan programs require that
construction projects be started within short time frames. In addition, the economic
downturn has created an extremely favorable bidding environment, and it is greatly to
the City's advantage to move quickly to take advantage of these conditions.
Preparing the projects for construction will require professional engineering work
immediately, in advance of receipt of the expected loans. In order to pay for these
advance engineering services, this ordinance budgets and appropriates a sum of
$4,500,000 from the Sewer User Fund Reserve.
FINANCIAL IMPACT
The Sewer User Fund has a reserve balance of approximately $6,500,000. Funds are
available for appropriation. Costs for facility design and construction are reimbursable
through State Revolving Fund Loans and through loans made under the American
Reinvestment and Recovery Act of 2009. Pueblo is included in Colorado's Intended
Use Plan for funding through a conventional State Revolving Fund loan in 2009. In
addition Pueblo is eligible for a principal- forgiveness loan in the amount of
$2,000,000.00 under the American Reinvestment and Recovery Act of 2009, and for
additional interest -free loans under the American Reinvestment and Recovery Act of
2009. These loans will be used to reimburse the Sewer User Fund for the cost of final
engineering design and construction management.