| ITEM #: 4. DATE: 10/24/2022 AI #:1114 |
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CITY COUNCIL ACTION REPORT
| SUBJECT: | EXPENDITURE AUTHORIZATION FOR DESIGN SERVICES ON RAINBOW VALLEY WRF PROJECTS 60077 and 60110, CREATION OF CIP PROJECT 60110 RAINBOW VALLEY WRF OPERATIONAL IMPROVEMENTS, AND AUTHORIZE RELATED BUDGET AMENDMENTS |
| STAFF PRESENTER(S): | Javier Setovich, Public Works Director; Lisa Melton, Senior Project Manager |
SUMMARY
Design Build services have been procured for the operational enhancement and expansion of the Rainbow Valley Water Reclamation facility. Due to the need to segregate the developer funded portion from the city funded portion separate contracts will be issued to the Design Build Contractor for each project. All funding is currently included as part of the Rainbow Valley WRF Expansion project (60077).
Recommendation
Approve the creation of CIP project 60110 Rainbow Valley WRF Operational Improvements and related budget amendment of $1,875,000 and authorize expenditure of funds up to $650,000 for CIP Projects 60110 and 60077. (Javier Setovich, Public Works Director; Lisa Melton, Senior Project Manager).
FISCAL IMPACT
The Rainbow Valley WRF Expansion (60077) was approved in the FY2023 Capital Improvement Program with a total project budget of $29,875,000 including $3,900,000 in FY2023 for design. Project 60077 is funded utilizing $1,875,000 in wastewater operational funds and $28,000,000 in developer contributions to be reimbursed through impact fees. This action will create a new CIP project (60110) that clearly separates the operational improvements from the developer funded expansion project. From a total project basis, no additional funds are being allocated; however, project 60110 will include full funding of design and construction in FY2023.
| Current Budget | Changes | Amended Budget | |
|---|---|---|---|
| Project 60077 - Rainbow Valley WRF Expansion | 29,875,000 | (1,875,000) | 28,000,000 |
| Project 60110 - Rainbow Valley WRF Operational Improvements | 0 | 1,875,000 | 1,875,000 |
| 29,875,000 | 0 | 29,875,000 |
BACKGROUND AND PREVIOUS ACTIONS
The Rainbow Valley WRF Expansion (60077) was approved in the FY2023 Capital Improvement Program to increase capacity for growth, address operational improvements and add redundancy. Funding sources included developer funding and wastewater operating funds. The new project (60110) will separate operating expenses from growth related expenses in order to clearly differentiate growth related elements of the project which are being funded by the developer from those that are operational in nature. The scope for the new project is focused on operational improvements to enhance operational efficiency with all funding coming from the Wastewater operating fund. Although these improvements may be completed in coordination with the developer funded expansion project; they will proceed regardless of the status of project 60077.
STAFF ANALYSIS
The current Rainbow Valley WRF is incurring challenges in the operation of the facility. Peak flows into the plant are causing concern due to existing under sizing of key basins in the facility. Establishing the new CIP project 60110 will separate operating expenses and improvements from growth related expenses allowing these operational challenges to be addressed concurrently or separately from project 60077.