The following information comprises the minutes for a special meeting of the City Council, a joint meeting of the Banning City Council and Banning Utility Authority and a joint meeting of the Banning City Council and the Banning City Council sitting in its capacity as the Successor Agency Board.
MINUTES 7/9/2024
CITY COUNCIL SPECIAL MEETING
COUNCIL MEMBERS PRESENT: Council Member Sheri Flynn
Council Member David Happe
Mayor Alberto Sanchez
Council Member Colleen Wallace
COUNCIL MEMBERS ABSENT: Mayor Pro Tem Rick Minjares
OTHERS PRESENT: Doug Schulze, City Manager
Serita Young, City Attorney
Laurie Sampson, Assistant City Manager
Caroline Patton, Administrative City Clerk
John Garside, Multimedia Specialist
Art Vela, Director of Public Works
1. CALL TO ORDER
Mayor Sanchez called the special meeting to order at 4:05 p.m.
1.1 Roll Call
COUNCIL MEMBER PRESENT: ABSENT
Flynn, Sheri
Happe, David
Minjares, Rick
Sanchez, Alberto
Wallace, Colleen
2. PUBLIC COMMENT – Agenda Items
None
3. WORKSHOP
3.1. Update and Discussion on the City Wastewater Treatment Plant Upgrade Project Art Vela, Director of Public Works, presented the staff report.
4. ADJOURNMENT
The Special City Council meeting adjourned at 4:43 p.m.
Special Meeting Minutes 7/9/2024 Page 2 of 2
Minutes Prepared by:
Caroline Patton, Administrative City Clerk
These minutes have been prepared as Action Minutes in accordance with City Council Resolution 1995-21 and Government Code Sections 36814, 40801, and 54953(c)(2).
This entire meeting and all associated documents may be viewed here:
https://banningca.granicus.com/ViewPublisher.php?view_id=1 ATTACHMENTS:
Exhibit A – Agenda Item 3.1: Staff Presentation
WASTEWATER
TREATMENT PLANT
UPGRADE PROJECT
Art Vela, Director of Public Works
July 9, 2024
Outline
•Background, Purpose
and Need
•Scope
•Cost
•Funding
•Project Next Steps
Exhibit A
Background, Purpose and Need
• Wastewater Treatment Plant (WWTP)
• Dates back to 1925 with major improvements made in the 1950’s and early 2000’s.
• Many major components reaching their end of life.
• Design capacity of 3.6 Million Gallons per Day (MGD); current average flow of 2.1 MGD.
• Treats to secondary, undisinfected standards (minimal uses; no coliform requirement)
• The Wastewater Treatment Plant Upgrade Project (“Project”) would result in Title 22 Recycled Water (disinfected tertiary water).
Background, Purpose and Need
• The Project would:
• Comply with upcoming discharge standards related to Nitrate as described in the WWTP discharge permit (Board Order R7-2016-0015). • Current Nitrate concentration is 29 mg-N/L
• EPA Max. Contaminant Level standard is 10 mg-N/L
• Construct a Master Planned facility identified in the City’s Integrated Master Plan for Water, Wastewater and Recycled Water
• Provide for a source of recycled water leading to a diverse water portfolio to meet the City’s current and future water demands • Local groundwater safe yield
• Imported Water
• Recycled Water
Scope of Work
• 3.6 MGD Membrane Bioreactor (MBR)
Facility
• Reverse Osmosis (RO) facility to meet
the Beaumont Basin Maximum Benefit
Objectives:
• Total Dissolved Solids (TDS): 330 mg/L
• Nitrate: 5 mg-N/L
• Brine drying beds and evaporators
• Replacement of existing mechanical
components
Project Costs
• 2022 Water/Wastewater Rate Study
• Project budget of $45,825,000 (Design/Construction)
• Based on 2020 Nitrogen Removal Feasibility Study (approx. $35M) • $25,000,000 in debt financing
• Preliminary Engineering estimate indicates project costs around $76.3M.
• Current solicitation has included a design-to-budget approach for a $60M budget.
included a design to budg
Funding Sources
Cash Balances
• Fund 660 (Water Operations): $25,400,000
• Allocated to Project: $4,500,000
• Fund 661 (Water Improvement Fund): $3,235,000
• Allocated to Project: $1,000,000
• Fund 680 (Wastewater Operations): $5,795,000
• Allocated to Project: $3,000,000
• Fund 681 (Wastewater Improvement Fund): $10,875,000
• Allocated to Project: $6,500,000
• Fund 682 (Tertiary Fund): $8,001,000
• Allocated to Project: $8,000,000
• Fund 683 (BUA Wastewater Bond): $2,500,000
• Allocated to Project: $2,500,000
TOTAL
ALLOCATED TO
PROJECT:
$25,500,000
FUNDING
SHORTFALL:
$34,500,000
Finance Options - Revenue Bonds
- Straight forward
- Competitive interest rates
- i-Bank Infrastructure State
Revolving Fund (ISRF)
- 3-6 months to close
- Will qualify for .45% point discount
(DAC, MHI, Unemployment)
- Water Infrastructure Finance and
Innovation Act (WIFIA)
- 15-16 months to close
- Payments can be deferred up to 5
years
- Application Fee: $100,000
- State Revolving Fund
- Great interest rates
- Funds up to 35% of construction
estimates
- 12-14 months
- Several application packages
- Program is underfunded
Financing needed for
construction phase
FY 2026/2027
Grants - Bureau of Reclamation WaterSMART: Title XVI WIIN Act Water Reclamation and Reuse Projects (2 Rounds)
- Funds up to 25% ($30M Max.) of total project costs.
- City submitted for Round 1, but was unsuccessful
- City is preparing to submit for Round 2. Applications due 9/30/24. - Awards announced in February, 2025.
- City could receive $15M for a $60M project.
Next Steps - Do Nothing (Shelve Project)
- Not recommended
- Project needs: regulatory compliance, replace aging assets, diversify water supply portfolio, continued increase in costs - Continue with Project (Progressive Design Build)
- Solicit proposal for Phase 1 (Design)
- Estimated cost $4.5M - $6.0M (In approved budget)
- Design-to-Budget ($60M Budget)
- Phase 2 (Construction)
- Option 1: Scope project to originally budgeted amount ($40M) - Descoped items (e.g. RO, MBR size) could be funded by future rate adjustments
- Option 2: Scope to $55-$60M if Title XVI Round 2 funds awarded ,
ure
Discussion
and
Questions