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.