This is a budget amendment and expenditure request for CIP Project #60077 Rainbow Valley WRF Expansion and Project #60110 Rainbow Valley WRF Operational Improvements to initiate design of the expansion for the Rainbow Valley Water Reclamation Facility. 

Authorize the budget amendment of $12,158,800 for CIP Project #60077 Rainbow Valley Water Reclamation Facility (WRF) Expansion and $3,772,000 for CIP Project #60110 Rainbow Valley Water Reclamation Facility (WRF) Operational Improvements, along with expenditure of funds up to $3,300,000 for design services at the Rainbow Valley WRF. (Barbara Chappell, Water Services Director)

The Rainbow Valley WRF Expansion (#60077) was approved as a part of the FY2024 budget.  The current total project budget is $34,000,000, including $3,686,200 for design.  This item will increase the budget by $12,158,800, bringing the total project budget to $46,158,800.  During the master planning phase in June 2023, the cost and capacity of the facility were evaluated, determining a 1,250,000 gpd expansion aligned with the 10-year growth needs, representing a decrease of 500,000 gpd from the project scope included in the FY2024 budget.  The reduction in capacity and increase in project budget were included in the proposed development impact fees that are scheduled to be implemented on April 1, 2024.  The project will be funded by wastewater development impact fees, including a portion of fees prepaid by the developer of Estrella.  Due to prior year expenditures, the remaining FY2024 budget will be $46,410,800.

The Rainbow Valley WRF Operational Improvements (#60110) was also approved as a part of the FY2024 budget.  The current total project budget is $5,000,000, including $1,322,400 for design.  This item will increase the budget by $3,772,000, bringing the total project budget to $8,772,000.  The increase is specifically for noise and odor control improvements that will reduce the set-back distances for adjacent development.  The project is funded with wastewater operating funds with reimbursements being paid by the developers of Estrella and Canta Mia for odor control components.  Due to prior year expenditures, the remaining FY2024 budget will be $8,612,500.

CIP Projects 60077 and 60110 are approved in FY2024 to increase capacity for growth and address operational improvements, respectively, at the Rainbow Valley WRF. On October 24, 2022, Council authorized the expenditure for master planning and design of influent pump station (60077) and conceptual design of operational improvements (60110). On March 20, 2023, Council authorized the expenditure for construction of operational improvements.

The Rainbow Valley WRF is currently committed above 80% of the plant capacity and expansion is required to continue to support growth in Estrella and Canta Mia. During the master planning effort, the technology, buildout capacity, site layout and cost of the next expansion were evaluated. The ultimate build-out was identified at 3.0 MGD for Estrella, with 10-year growth projected at 1.25 MGD. This request will increase the budget to align with planned expansion costs and allow the initiation of design and pre-construction services for the plant expansion.