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Item 6AAGENDA ITEM # 6A AUGUST 9, 2010 CITY OF ATLANTIC BEACH CITY COMMISSION MEETING STAFF REPORT AGENDA ITEM: Wastewater and TMDL Compliance Program Funding with State Revolving Loan -Resolution No. 10-10 SUBMITTED BY: Donna Kaluzniak, Utility Director DATE: July 23, 2010 BACKGROUND: For several years, the City has been working with engineers to meet new, more stringent nitrogen limits for the City's wastewater treatment plants. The project began with an extensive preliminary study to determine the most cost effective means to meet the TMDL requirements. Options studied and analyzed for life cycle costs included constructing a reclaimed water system, upgrading both of the City's wastewater plants, sending the flow from Wastewater Plant #2 to JEA, HDR Engineering completed the preliminary study and presented the result to the City Commission in a Workshop on December 15, 2008. The most cost-effective way to meet the TMDL requirements includes • Upgrading the existing Wastewater Treatment Plant #1 (1100 Sandpiper Lane) to meet advanced treatment standards for nitrogen removal -Estimated cost of $5.7 Million • Phasing out the Buccaneer Plant (Wastewater Plant #2) and constructing a force main and flow-shedding of existing lift stations to transfer flow to Wastewater Treatment Plant #1 -Estimate Cost $3.62 Million Final design is nearly complete for the projects, and staff is applying for a loan through the Department of Environmental Protection State Revolving Fund (SRF) for the TMDL upgrades to Wastewater Plant # 1. (The Wastewater Treatment Plant #2 Phaseout portion of the project is already close to bidding, and delay is not recommended as the City is taking advantage of the favorable construction climate). The SRF program offers financing at considerably lower interest rates than available through bank loans or bonds. DEP informed staff that funding may possibly be available for the project and requested additional documents. DEP also requires the City to provide an adopting resolution establishing a commitment to implement the engineer's recommendations in the planning documents. BUDGET: The estimated cost of the improvements to Wastewater Plant #1 is $5.7 Million. A 6% rate increase is being requested during the FY11 budget process to pay for all of the improvements, including the Buccaneer Plant Phaseout portion. RECOMMENDATION: Adopt Resolution 10-10 establishing a commitment to implement the Wastewater and TMDL Compliance Program to upgrade Wastewater Plant #1 to meet advanced treatment standards for nitrogen removal. ATTACHMENTS: 1. Resolution No. 10-10 REVIEWED BY CITY MAN AGENDA ITEM # 6A AUGUST 9, 2010 RESOLUTION 10-10 A RESOLUTION OF THE CITY OF ATLANTIC BEACH, FLORIDA, RELATING TO THE STATE REVOLVING FUND PROGRAM; ESTABLISHING A COMMITMENT TO IMPLEMENT THE FACILITIES PLAN TO UPGRADE WASTEWATER TREATMENT PLANT NO. 1 TO MEET ADVANCED TREATMENT STANDARDS FOR NITROGEN REMOVAL TO MEET THE TOTAL MAXIMUM DAILY LOAD FOR NITROGEN WHEREAS, Florida Statutes provide for financial assistance to local government agencies to finance the construction of wastewater facilities; and WHEREAS, Florida Administrative Code rules require evidence of a commitment to implement wastewater facilities improvements funded by the State Revolving Fund; and WHEREAS, the State Revolving Fund allows that the City of Atlantic Beach Project Number WW16071 is possibly eligible for available funding; and NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of Atlantic Beach, Florida, that SECTION L The City of Atlantic Beach, Florida is authorized to apply for financial assistance to finance the project. SECTION II. The City of Atlantic Beach is committed to implementing the facilities plan to upgrade Wastewater Treatment Plant No. 1 to provide advanced treatment for removal of nitrogen to meet the Total Maximum Daily Load requirements SECTION III. The City Manager is hereby designated as the authorized representative to provide the assurances and commitments required by the application. SECTION IV. The City Manager is hereby designated as the authorized representative to execute the agreement which will become a binding obligation in accordance with its terms when signed by both parties. SECTION V. The City Manager is authorized to represent the City of Atlantic Beach in carrying out responsibilities under the agreement. The City Manager is authorized to delegate responsibility to appropriate staff to carry out technical, financial, and administrative activities associated with the agreement. ADOPTED at a public meeting by the City Commission of the City of Atlantic Beach, Florida on the 9a' Day of August, 2010. AGENDA ITEM # 6A AUGUST 9, 2010 Mike Borno Mayor /Presiding Officer Approved as to form and correctness: Alan C. Jensen, Esquire City Attorney ATTEST: Donna L. Bartle City Clerk