HomeMy WebLinkAboutStaff Report 5.B 1/27/2014 Agenda/Iteww#5.3
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DATE: January 27, 2014
TO: Honorable Mayor and Members of the City Council through City Manager
FROM: Dan St. John, F.ASCE—Director, Public Works and Utilities
Leah Walker—'Environmental Services Manager
SUBJECT: Resolution Authorizing°Funding for the North Bay Water Reuse Authority Phase
H Feasibility Study of Recycled Water Projects
RECOMMENDATION
It is recommended that the City Council adopt the attached Resolution Authorizing the City
Manager to approve funding for the North Bay Water Reuse Authority (NBWRA) to perform
feasibility studies of potential recycled water projects in the City of Petaluma.
BACKGROUND
The NBWRA was created in 2005 for the purpose of coordinating,interagency efforts to address
the potential use of recycled wateron.a regional basis. City Council authorized membership in
the NBWRA Memorandum of Understanding (MOU) in 2011. The MOU project scope consists
of Phase I and Phase II feasibility studies, securing federal and state grant funding, perform
EIR/EIS preparation for the projects and project construction. The City did not participate in
Phase I of the project. On May 6;,2013, City Council authorized the City Manager to execute the
Third Amended MOU allowing the City to participate in Phase II of the project. Phase I focused
mainly on groundwater projects for other agencies and is nearly:complete. Phase II will focus on
recycled water projects more aligned with City Council goals. The City's goals are to increase
tertiary recycled water distribution further into City limits, create recycled water storage, and
increase the tertiary treatment capacity to meet the overall plant design capacity. The four Phase
II projects that.will>undergo feasibility studies for the City will include:
• Ellis Creek Water-Recycling Facility (ECWRF) capacity increase.
• Agricultural recycled water distribution expansion.
• Urban recycled'water distribution expansion.
• Additional onsite storage at or adjacent to the ECWRF.
Agenda Review:
City Attorney Finance Director City Manager I
DISCUSSION
The stated purpose of the NBWRA is to secure Federal and State funding on a regional basis to
provide recycled water for agricultural, urban, and environmental uses thereby reducing reliance
on local and imported surface water and groundwater supplies and reducing the amount of
treated effluent released to San Pablo Bay and its tributaries. Current members consist of
Sonoma County Water Agency (SCWA), Sonoma Valley County Sanitation District,Napa
Sanitation District,.Napa<County,North Marin Water District; Novato Sanitary District, Las
Gallinas Valley Sanitary District, Marin Municipal Water District and the City of Petaluma.
The NBWRA Phase I implementation (2005-2010) included the Feasibility Analysis and
completion of the EIR/EIS-for seven projects for Las Gallinas,North Marin,Novato SD,
Sonoma Valley, and Napa. The NBWRA received-congressional:appropriations for the Phase I
projects of approximately 25 percent of their costs, and has now moved to Phase II of the MOU
scope including;project definitions leading to feasibility studies and EIR/EIS preparation. Phase
II projects must- found consistent with Phase 1 objectives, which are:
• Offset urban and agricultural demands on potable water supplies;
• Enhance local and regional ecosystems;
• Improve local and'regional water supply reliability;
• Maintain and protect public health and safety;
• Promote sustainable practices;
• Give top priority to local needs:for recycled water; and
• Implement recycled water facilities in an economically viable manner.
Following the adoption of the City of Petaluma Recycled Water Master Plan (2004) and General
Plan`(2008);and the certification of the Recycled Water Environmental Impact Report, the Public
Works and Utilities Department has pursued site acquisition, design and engineering, and
funding for the next phases of the recycled water expansion program. In order to move forward
with the program,joining forces with other agencies to engage collectively in securing funding
opportunities has distinct advantages.To optimize currently available capital funds, the Public
Works and Utilities Department continues to seek additional State and Federal funding sources.
Membership in the NBWRA increases funding opportunities for City recycled water projects
through special.programs and matching grants offered by the Federal and State government to
regional projects. Thus participating in the NBWRA feasibility study will aid in implementing
the General Plan objectives and City Council goals for the expansion of recycled water assets in
the most cost-effective manner.
The Phase II study will take three years, beginning in July 2014. The four projects potentially
eligible for funding that the City will include in the Phase II feasibility study include:
• Ellis Creek Water Recycling Facility (ECWRF) capacity increase—the current capacity
of the two existing ultra violet (UV) light treatment channels is 5.2 million gallons per
day (mgd). By adding a third UV treatment channel, an additional 2.6 mgd of capacity
will be created. This additional capacity will assist in meeting future demands.
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• Recycled water distribution:expansion to East Petaluma—expand tertiary recycled water
line to reach City Parks, Santa Rosa_JuniorCollege, and other eastside<accounts identified
in the Recycled Water Master Plan.
• Agricultural recycled water distribution expansion=determine feasibility of meeting
future agricultural.demands`in areas close to agriculture customers currently served by
the recycled system.along Lakeville Highway.
• Additional onsite storage at the ECWRF—determihe feasibility of developing.additional
storage of recycled..water at the ECWRF oronadjacent properties.
These are projects that staff believes will be attainable under the 10 year time frame of the
NBWRA MOU. There were other projects identified in the Recycled Water Master Plan and in
earlier NBWRA planning sessions,that had the potential to be studied under the NBWRA project
thathave been deemed too far out.of the scope of the NBWRA MOU to be included in Phase II.
These projects include expanding recycled water to West Petaluma, Installing a 5 million gallon
storage tank in East Petaluma and developing storage on agricultural properties.
The proposed action meets Council goal: "Cost Effective Use of Recycled Water assets."
FINANCIAL IMPACTS
Each agency participating in Phase II Of the project is requiredto share in the EIR/EIS
preparation and feasibility study costs. The feasibility studies and.EIR/EIS are performed by
consultants who have been selected by the NBWRA. The:study posts-are proportional to the final
project'costs which is why City staff have been judicious in selecting only four projects (listed
above) to be studied.
TheCity will be responsible for.its share:of the Phase II study costs in proportion to the total
estimated value of the City's.proposed projects. The distribution of costs between agencies is
being determined, butthe City shareis expected to be $300;000'to $500,000 per year for the
next three fiscal years based on the City share of the final projects lists for all the participating
agencies. This amount represents the Phase II consultant fees and a joint use fee. These fees
include the following:
• Program Management
• Feasibility Studies and Reports
• Federal Authorizations and Appropriations
• 'State Funding/State Outreach
• Outreach and Community Support
• SCWA Administration
The City will fund the annual costs for the projects,being_studied by the Authority, through the
capital improvement program budget. As the studies progress and the costs are better defined,
staff will prepare financing plans for the City's expected 75 percent contribution to deliver the
projects. No funds are required for the study in the current fiscal year, but costs will be
incorporated into wastewater opertions budgets for the next three fiscal years.
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ATTACHMENTS
1. Resolution
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Attachment.I
RESOLUTION.AUTHORIZING FUNDING FOR THE NORTH BAY WATER REUSE
AUTHORITY PHASE,II FEASIBILITY STUDY OF RECYCLED WATERPROJECTS
WHEREAS, on May 19, 2008, the.City Council adopted Resolution No. 2008-085
N.C.S. Adopting the City of Petaluma General Plan 2025 (General Plan), including its Technical
Appendix C, a Water Demand and Supply Analysis Report (2006) and the Recycled Water
Master Plan (2004); and
WHEREAS, the General Plan and its Water Demand;and Supply Analysis Report
identify recycled water as an essential source of water supply to meet potable water demand in
the City through 2025; and
WHEREAS, General Plan.Goal 8-G-3 requires the City to maximize the use of recycled
water as a potable water offset to manage water demands and to meet regulatory requirements
for wastewater discharge; and
WHEREAS; the North Bay Water Reuse Authority was formed in 2005 by various
North-Bay Area public agencies to coordinate efforts to seek federal finding for recycled water
projects pursuant to Public Law 10; and
WHEREAS, on June,6, 2011, the City Council adopted'Resolution No. 2011-092 N.C.S
authorizing the City Manager to Execute the Memorandum of Understanding Establishing
Membership in the North Bay Water Reuse Authority; and
WHEREAS, on May 6, 2013, the City Council adopted.Resolution No. 2013-041 N.C.S.
authorizing the City Manager to Execute the Third Amended Memorandum of Understanding
identifying the City of Petaluma as.a Phase II Project participant;and
WHEREAS, the City of Petaluma has ongoing and planned projects and programs to
expand its treatment and use of recycled water as.identified.in the.Recycled Water Master Plan,
including=but not limited to the Water Recycling Facility and the Water:Recycling Expansion
Project which could benefit from federal and state funding; and
WHEREAS,.Four potential recycled water projects.have been identified to undergo
feasibility studies under theNorth Bay Water Reuse Authority Memorandum of Understanding;
and
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NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Petaluma, that
the City Manager is authorized and directed to authorize funding for the North Bay Water Reuse
Authority Phase II Feasibility Study of Recycled Water Projects on behalf of the City of
Petaluma and direct the Department Director to make payment of the Phase 2 Project Definition
Costs assigned to Petaluma.
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