Microsoft Exchange Server;converted from html;
Dan,
Dyer’s comments are in blue below. Give me a call if you have any questions.
Thanks
Steve
From: Gerald Fisher [mailto:gfisher@cityofmolalla.com]
Sent: Monday, July 02, 2018 12:08 PM
To: Dan Huff; S Major
Cc: R Quigley
Subject: RE: July 20th One Stop - City of Molalla
Mine in red below.
Regards,
Gerald Fisher, P.E. | Public Works Director
City of Molalla
117 N Molalla Ave. | PO Box 248 |Molalla, OR 97038
Office: 503.829.6855 | Direct: 503.759.0218
CONFIDENTIALITY NOTICE: The information contained in this email message, including any attachments, is for the sole use of the intended recipient(s) and may contain confidential and privileged information. Any unauthorized review, use, disclosure or distribution is prohibited. If you are not the intended recipient and have received this communication in error, please contact the sender by reply email and destroy all copies of the original message. Thank you.
From: Dan Huff [mailto:dhuff@cityofmolalla.com]
Sent: Monday, July 02, 2018 11:02 AM
To: Gerald Fisher ; Steve Major
Cc: Ryan Quigley
Subject: FW: July 20th One Stop - City of Molalla
Can you all help me with the information for a response to these questions and I will send back to Bryan Guiney.
Dan
From: GUINEY Bryan * BIZ [mailto:Bryan.Guiney@oregon.gov]
Sent: Monday, July 02, 2018 10:33 AM
Cc: BRYANT Becky A * BIZ Becky.A.Bryant@oregon.gov>; GRAHAM Janna G * BIZ Janna.G.Graham@oregon.gov>; RODRIGUEZ Rich * BIZ Rich.Rodriguez@oregon.gov>; UNGER Jon * BIZ Jon.Unger@oregon.gov>
Subject: July 20th One Stop - City of Molalla
Good Morning Dan,
We are looking forward to hosting your One-Stop meeting at 10:00 a.m. on Friday, July 20th at Business Oregon in Portland, World Trade Center Portland, 121 SW Salmon St, Suite 205, Portland, OR 97204. After reviewing your application, we have the following questions from funders that we would like to address at or before the meeting:
1. Is the facility plan approved, and if not what is the status and timeline for approval? As long as DEQ get back to me on approval of the plan then Council adoption in late August. If not then much later. The Wastewater Facilities & Collection System Mater Plan (WWFCSMP) has been submitted to DEQ for review. Pending DEQ approval, the Plan is scheduled to be presented to the City Council for adoption on August 22, 2018.
2. The One Stop information form O and M section lists estimated replacement cost of $21,688,365—what does this represent? Is the City budgeting this amount? Not sure what this is. $21,668,365 should be replaced with a much smaller number like $15 to $20K. I looked at the City’s 2018-2019 budget and did not see any equipment replacement projects or a line item for equipment replacement. An example of this would be the floating mixers located in the aerated lagoon that the City replaced last year. We defer to Gerald for this number. The City could show zero. See Item 8 below.
3. What are the priority projects, scope, and cost estimates? Priority projects for collection system, lift stations, and treatment plant upgrade. Need to attach the executive summary and send to him. See attached. The following might work also:
Projects are identified as Phase I-III in the WWFCSMP. Phase I priority projects are described in more detail below.
1) Phase I collection system improvements
a. Total Project Costs - $4,403,400
b. Scope – Replace/Rehab existing sewer main in seven project areas, as identified in the attached WWFCSMP executive summary.
2) Phase I Pump Station Improvements
a. Total Project Costs - $672,500
b. Scope – Replacement of the S. Molalla Pump Station
3) Wastewater Treatment Improvements and Expansion
a. Total Project Costs - $37,222,000
b. Scope – Upgrade existing WWTP as identified in the attached WWFCSMP executive summary.
4) Total Estimate
a. Total Phase I/WWTP improvements equals $42,297,900
b. Total Phase I/WWTP improvements; with a 3 year inflation of 3% annually totals $46,221,000.
4. The City proposes to cover costs for debt with SDC’s (which are limited to new development). Is this realistic? Related questions: Does the project only include improvements to the existing system, or are there parts which support new development? Will the debt security from rates be enough to cover current system improvement costs? Payment of debt will be a combination of SDC’s and rates. None of the collection system is SDC eligible. Some portion of the lift station may be but I won’t know until the plan is approved and we can update our CIP and SDC’s. The treatment plant will be a combination of SDC’s and rates depending on the amount of added capacity. The City’s population is estimated to double during the 25 year planning period so technically the existing users will initially have to pay for the added capacity to the plant. The additional capacity included within the new wastewater treatment facility is approximately seventy percent based on existing average annual flow of 1.85 mgd versus future average annual flow of 3.16 mgd.
5. Consumption figures are incorrect – please clarify. Not sure what this is. The consumption figures list on the form equate to 24 gallons per month per residential connection and 11.32 gallons per month for other. Not sure if the consumption numbers are for gallons per day but should be for gallons per year. City needs to recalculate consumption numbers. Also the next item below connections and annual flow data, monthly residential user rate, is shown as $57.31. This may be the actual average user rate but the rate the State is looking for is based on 7,500 gallons per month per EDU. That equates to a monthly fee of $71.64. This should be brought to the State’s attention.
6. When will the facility plan be complete? August. See DEQ note above also.
7. O&M provided does not match the 2017 audit. In 2017 the O&M was 1.7 mill, the one stop worksheet shows 2.2 million. Please clarify what the difference is and why? Not sure what this is. The 2017 Audit shows O&M at $1.716M if the depreciation is not included. O&M for 2018 totals $1.797M and for the 2018-2019 budget $2.28 M. Not sure where the $2.23M came from. This was a City supplied number.
8. The “projected annual” is missing, will the OM&R going up or down? O&M this year was $122K. The new plant is projected to be about $145-150K. The WWFCSMP has the new O&M costs at $337,000 which includes $20,700 for equipment replacement cost. The projected annual budget should be approximately $215,000 higher than current annual budget.
9. It appears there are multiple phases for this project, please provide clarification on the timing. Phase 1 is Yr 1-5, Phase 2 is Yr 6-10, and Phase 3 is Yr 11-20. That is correct for the collection system improvements. A more detailed breakdown of Phase 1 projects as listed in the WWFCSMP is:
• WWFCSMP Completed June 2018
• DEQ Approval of WWFCSMP August 2018
• WWFCSMP Approved by City Council September 2018
• Value Analysis February 2019
• Secure Funding January 2019– June 2019
• Start WWTP Improvements
• Contract with Engineer July 2019
• Environmental Assessment August 2019
• Geotechnical Report August 2019
• Site Surveys & Locates August 2019
• Predesign Report November 2019
• Value Engineering January 2020
• DEQ Approval of Predesign Report & Environmental Assessment April 2020
• Design of WWTP project December 2020
• DEQ Approval of Plans February 2021
• Advertise for Bids March 2021
• WWTP Improvement Construction May 2021 – January 2023
• Facility Commissioning February 2023 – March 2023
• Performance Evaluation April 2023 - April 2024
• Performance Evaluation Report July 2024
• Design & Construction of Collection Expansion Improvements As Necessary (1-5 years)
10. Is the City looking for multiple funding packages for the different phases? Phases 2 and 3 will likely be pay as we go using rates and SDC’s Current funding options are focused on Phase 1 only.
11. Will the City be fixing the I&I issues before doing the plant upgrade? We may have projects 1-4 done before we start the plant and 5-7 done during plant construction and sign-off. If the planets align. The City has already completed a number of I/I projects based on the deficiencies noted in the WWFCSMP Smoke Test Report. With work completed to date the City has seen an approximate six percent reduction in peak flows. In addition The City is working on Phase 1 collection system improvements as monies allow. Wastewater flows will be reevaluated during the Predesign Report phase of this project to ensure the facility will not be oversized.
Thank you and please contact me anytime! - Bryan
Bryan Guiney
Regional Development Officer
Covering the Portland Metro Area
Business Oregon | www.oregon4biz.com
503-3073662 mobile
