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HomeMy WebLinkAbout08145ORDINANCE NO. 8145 AN ORDINANCE BUDGETING AND APPROPRIATING THE AMOUNT OF $2,650,000 FROM THE SEWER USER FUND RESERVE FOR CONSTRUCTION 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 $2,650,000 is hereby budgeted and appropriated from the Sewer User Fund Reserve for construction of the Ammonia Removal Project at the James R. Dilorio Water Reclamation Facility. SECTION 2. The amount of $2,650,000 shall be budgeted and appropriated to the capital improvement account, projects WWL01A through WWL02B, in the Sewer User Fund for said project. SECTION 3 Funds from loans made from the State Revolving Fund and /or other funding sources (i.e. conventional municipal bonds) shall upon receipt by the City be transferred to the Sewer User Fund Reserve. $2,650,000 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. INTRODUCED: February 8, 2010 BY: Judy Weaver COUNCILPERSON APPROVED: RESIDENT CF CITY CC) UNCIL ATTESTED BY: GIB' Y CLERK PASSED AND APPROVED: February 22, 2010 L) 4 Background Paper for Proposed ORDINANCE AGENDA ITEM # R -3 DATE: February 8, 2010 DEPARTMENT: WASTEWATER DEPARTMENT Gene Michael, Director TITLE AN ORDINANCE BUDGETING AND APPROPRIATING THE AMOUNT OF $2,650,000 FROM THE SEWER USER FUND RESERVE FOR CONSTRUCTION OF THE JAMES R. DIIORIO WATER RECLAMATION FACILITY AMMONIA REMOVAL PROJECT ISSUE Should the City Council budget and appropriate the amount of $2,650,000 from the Sewer User Fund Reserve for construction 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 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 proposal process. The Black & Veatch Corporation was selected in 2005 through a competitive proposal process to serve as the Wastewater Department's Engineer of Record, and has been responsible for providing these engineering services. Designs for four of six sections of the project have been completed, with the remaining two sections approximately 60% complete. 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 in 2010. With the design of the Ammonia Removal Project nearing completion, and the fact that the economic downturn has created an extremely favorable bidding environment, it is to the City's advantage to move quickly to take advantage of these conditions. In order to pay for these advance construction costs, this ordinance budgets and appropriates a sum of $2,650,000 from the Sewer User Fund Reserve. FINANCIAL IMPACT The Sewer User Fund has a reserve balance of approximately $5,800,000. Funds are available for appropriation. Costs for construction are reimbursable through State Revolving Fund Loans. Pueblo is included in Colorado's Intended Use Plan for funding through a conventional State Revolving Fund loan in 2010. These loans will be used to reimburse the Sewer User Fund for the beginning costs of construction.