WRCRWA BOARD OF DIRECTORS
Agenda Item 5.D.
April 28, 2022
TO THE BOARD OF DIRECTORS:
Katherine Aleman, Chair
Fauzia Rizvi, Vice Chair
Tracey LaBonte
Jane Anderson
Wes Speake
FROM: Gary Miller, Administrator
CONSIDER APPROVAL OF FISCAL YEAR 2022-2023 BUDGET, ADOPTION OF RESOLUTION 22-004 ESTABLISHING RATES TO BE CHARGED FOR
CONVEYANCE, TREATMENT AND DISPOSAL OF WASTEWATER, AND GIVE
THE ADMINISTRATOR AUTHORITY TO OPEN ANNUAL PURCHASE ORDERS RECOMMENDATION:
The Executive Committee and the Administrator recommend the Board of Directors:
1. Adopt the proposed Fiscal Year 2022-2023 Budget (Operating, Debt Service, and Capital), along with new rates consistent with the budget figures;
2. Adopt Resolution 22-004, Establishing Rates to be Charged for Conveyance, Treatment, and Disposal of Wastewater;
3. Direct Member Agencies to present this Fiscal Year 2022-2023 Budget to their governing boards for approval; and
4. Authorize the Administrator to open annual purchase orders, totaling $2,403,000, for Fiscal Year 2022-2023 that exceed the $60,000 Board approved purchase authorization limit of the Administrator.
BUDGET IMPACT:
Upon budget approval by the Board of Directors and subsequent approval by each Member Agency, the Fiscal Year 2022-2023 Budget will become the official Western 67 WRCRWA Board of Directors
April 28, 2022
Riverside County Regional Wastewater Authority (WRCRWA) Budget, which includes individual Member Agency contributions and establishes fixed and variable rates.
EXECUTIVE SUMMARY:
In the proposed Fiscal Year 2022-2023 Budget, Member Agency contributions will increase in aggregate by $3,505,477, or 13.5%. The Operating Budget will increase by $1,373,792, or 14.5%; the Debt Service Budget remains the same, and the Capital Budget will increase by $2,131,685, or 17.8%, mainly due to carryover of the prior year unspent Capital Budget and the new Solar Dryer Discharge Conveyor project.
DETAIL:
See attachments for further detail relating to the Operating, Debt Service, and Capital Budgets.
Gary Miller
Administrator
Attachment(s):
1. Member Contribution Summary Year-to-Year Comparison
2. Capacity, Rates, and Contributions - Fixed and Variable
3. Rate Calculation
4. Operations Fund Budget Year-to-Year Comparison
5. Fixed and Variable Cost Allocation
6. Debt Service Expenditures
7. Capital Budget
8. Capital Improvement Project Descriptions
9. Annual Purchase Orders over $60,000
10. Resolution 22-004
11. Fiscal Year 2022-2023 Budget Presentation
68 Expenditure Category Corona HGSD JCSD Norco WMWD Total Operations:
Treatment System 1,516,686 526,321 4,246,287 1,794,748 961,651 9,045,693 Conveyance System 122,859 39,855 - 131,987 88,999 383,700 General & Administration 260,857 74,673 597,382 268,822 192,158 1,393,892 Total Operating Contributions 1,900,402 640,849 4,843,669 2,195,557 1,242,808 10,823,285 Debt Service:
SRF Loan 1,903,189 70,887 2,064,704 408,275 39,481 4,486,536 Capital:
Non-Replacement Capital 2,495,420 714,329 5,545,266 2,566,040 1,843,945 13,165,000 (1) Asset Replacement Reserve 227,089 65,006 247,476 224,941 176,372 940,884 Total Capital Contributions 2,722,509 779,335 5,792,742 2,790,981 2,020,317 14,105,884 Total Member Contributions $ 6,526,100 $ 1,491,071 $ 12,701,115 $ 5,394,813 $ 3,302,606 $ 29,415,705 Expenditure Category Corona HGSD JCSD Norco WMWD Total
Operations:
Treatment System 972,575 440,396 3,820,451 1,611,385 909,750 7,754,557 Conveyance System - 42,981 - 150,762 179,095 372,838
General & Administration 247,421 70,827 566,613 254,976 182,261 1,322,098 Total Operating Contributions 1,219,996 554,204 4,387,064 2,017,123 1,271,106 9,449,493 Debt Service:
SRF Loan 1,903,189 70,887 2,064,704 408,275 39,481 4,486,536 Capital:
Non-Replacement Capital 1,891,997 630,659 4,332,869 2,246,702 1,957,833 11,060,060 Asset Replacement Reserve 125,567 58,740 287,561 205,393 236,878 914,139 Total Capital Contributions 2,017,564 689,399 4,620,430 2,452,095 2,194,711 11,974,199 Total Member Contributions $ 5,140,749 $ 1,314,490 $ 11,072,198 $ 4,877,493 $ 3,505,298 $ 25,910,228 Total Member Contribution YTY Change $ 1,385,351 $ 176,581 $ 1,628,917 $ 517,320 $ (202,692) $ 3,505,477 (1) 11.4M is carried over from FY21-22 Budget
Adopted Fiscal Year 2021-2022 Budget
WRCRWA Budget Schedule
Fiscal Year 2022-2023
Member Contribution Summary Year-to-Year Comparison
Proposed Fiscal Year 2022-2023 Budget
Attachment 1
69 Capacity Contribution Capacity Contribution Capacity Contribution Total by Agency Corona 2.62 $ 751,322 2.62 $ 83,944 2.62 $ 260,857 $ 1,096,123 HGSD 0.75 $ 215,073 0.75 $ 24,030 0.75 $ 74,673 $ 313,776 JCSD 6.00 $ 1,720,586 - $ - 6.00 $ 597,382 $ 2,317,968
Norco 2.70 $ 774,263 2.50 $ 80,100 2.70 $ 268,822 $ 1,123,185 WMWD 1.93 $ 553,456 2.13 $ 68,245 1.93 $ 192,158 $ 813,859 Total 14.00 $ 4,014,700 8.00 $ 256,319 14.00 $ 1,393,892 $ 5,664,911 Est. Flows Rate Est. Flows Rate Est. Flows Rate Total by Agency Corona 1.50 $ 765,364 1.50 $ 38,915 - $ - $ 804,279
HGSD 0.61 $ 311,248 0.61 $ 15,825 - $ - $ 327,073
JCSD 4.95 $ 2,525,701 - $ - - $ - $ 2,525,701
Norco 2.00 $ 1,020,485 2.00 $ 51,887 - $ - $ 1,072,372
WMWD 0.80 $ 408,195 0.80 $ 20,754 - $ - $ 428,949
Total 9.86 $ 5,030,993 4.91 $ 127,381 - $ - $ 5,158,374 Grand Totals $ 9,045,693 $ 383,700 $ 1,393,892 $ 10,823,285 WRCRWA Budget Schedule
Fiscal Year 2022-2023
Capacity, Rates, and Contributions
Fixed and Variable
Treatment Plant Conveyance General & Administrative
Fixed Rate per
MGD:
$2,670 $8,297
Variable Rate
per MGD:
$1,398 $71 $0
$23,897
Attachment 2
70 Fixed Rates:
Based on Million Gallons Per Day (MGD) per Month FY 2022-2023 FY 2021-2022 Total Fixed Expenses
Capacity
$4,014,700
14 MGD
$256,319
8 MGD
$1,393,892
14 MGD
Variable Rates:
Based on Million Gallons Day (MGD) of Estimated Flows per Day Total Variable Expenses
Estimated Flows
$5,030,993
9.86 MGD
$127,381
4.91 MGD
Variable Rate
$1,147
$101
WRCRWA Budget Schedule
Fiscal Year 2022-2023
Rate Calculation
Conveyance /12 = $2,670
/12 =
Treatment Plant /12 $23,897
Fixed Rate
=
Fixed Rate
$24,275
General and Administrative /12 = $8,297
$2,605
$7,870
Conveyance /365 = $71
/365 = Variable Rate
Treatment Plant /365 = $1,398
Attachment 3
71 2021-2022 2022-2023
Budget Budget Amount % Change
Treatment System
Treatment Plant
Labor Costs 2,916,023 2,827,863 (88,160) -3.0%
Outside Services (Laboratory) 157,500 163,800 6,300 4.0% Facility Maintenance 1,240,000 1,231,200 (8,800) -0.7%
Vehicles/Equipment Rental 134,586 141,393 6,807 5.1%
Utilities 1,416,000 1,884,483 468,483 33.1%
Chemicals 1,225,480 2,050,590 825,110 67.3%
Solids Disposal/Sludge 312,000 377,520 65,520 21.0%
Permits and Fees 131,000 151,996 20,996 16.0%
Facility Maintenance - Bldg & Yard 74,585 65,900 (8,685) -11.6% Supplies 102,800 102,800 - 0.0%
Total Treatment Plant 7,709,974 8,997,545 1,287,571 16.7% Pre-treatment
Labor Costs 37,359 40,617 3,258 8.7%
Vehicle/Equipment Rental 1,724 2,031 307 17.8%
Laboratory - Quality Testing 4,500 4,500 - 0.0%
Supplies 1,000 1,000 - 0.0%
Total Pre-treatment 44,583 48,148 3,565 8.0%
.
Total Treatment System 7,754,557 9,045,693 1,291,136 16.7% Conveyance System
Labor Costs 201,156 206,018 4,862 2.4%
Facility Maintenance 70,000 70,000 - 0.0%
Vehicle/Equipment Rental 9,284 10,301 1,017 11.0%
Utilities 77,718 82,381 4,663 6.0%
Facility Maintenance - Bldg & Yard 4,680 5,000 320 6.8% Misc. Supplies/Operating Expenses 10,000 10,000 - 0.0%
Total Conveyance System 372,838 383,700 10,862 2.9%
General and Administration
Labor 405,197 456,469 51,272 12.7%
Outside Services (Consulting) 463,400 471,000 7,600 1.6% Insurance Expense 187,500 304,000 116,500 62.1%
Audit Expense 15,000 15,600 600 4.0%
Mercury Monitoring - SARDA 8,000 8,000 - 0.0%
Basin Monitoring Program 25,000 25,000 - 0.0%
Vehicle/Equipment Rental 18,701 22,823 4,122 22.0%
Bank Charges 5,300 5,500 200 3.8%
General Supplies 10,000 10,500 500 5.0%
Legal Costs - General 184,000 75,000 (109,000) -59.2%
Total General and Administration 1,322,098 1,393,892 71,794 5.4% Total Operating Expenses 9,449,493 10,823,285 1,373,792 14.5% WRCRWA Budget Schedule
Fiscal Year 2022-2023
Year-to-Year Comparison
Change
Attachment 4
72 Total Costs Fixed Costs Variable Costs
Treatment System
Treatment Plant
Labor 2,827,863 2,827,863 -
Laboratory 163,800 163,800 -
Facility Maintenance 1,231,200 615,600 615,600
Vehicle/Equipment Rental 141,393 141,393 -
Utilities 1,884,483 - 1,884,483
Chemicals 2,050,590 - 2,050,590
Solids Disposal/Sludge 377,520 - 377,520
Permits and Fees 151,996 151,996 -
Landscape 65,900 65,900 -
Supplies 102,800 - 102,800
Subtotal Treatment Plant 8,997,545 3,966,552 5,030,993
Pre-treatment 48,148 48,148 -
Total Treatment Operations 9,045,693 4,014,700 5,030,993 Conveyance System
Labor 206,018 206,018 -
Facility Maintenance 70,000 35,000 35,000
Vehicle/Equipment Rental 10,301 10,301 -
Utilities 82,381 - 82,381
Outside Services-Landscape 5,000 5,000 -
Supplies 10,000 - 10,000
Total Conveyance System 383,700 256,319 127,381
General and Administrative 1,393,892 1,393,892 -
Total Operating Budget used for Rate Calculation 10,823,285 5,664,911 5,158,374 Fixed and Variable Rates per MGD Fixed Per MGD Variable Per Month Per MG
Fiscal Year 2022-2023 Rates
Treatment 23,897 1,398
Conveyance 2,670 71
General and Administration 8,297
Total 34,864 1,469
Fiscal Year 2021-2022 Rates
Treatment 24,275 1,147
Conveyance 2,605 101
General and Administration 7,870
Total 34,750 1,248
Amount of Increase/(Decrease) From 2021-2022 Rates
Treatment (378) 251
Conveyance 65 (30)
General and Administration 427 -
Total Increase/(Decrease) 114 221
Percent Increase/(Decrease) 0.3% 17.7%
WRCRWA Budget Schedule
Fiscal Year 2022-2023
Fixed & Variable Cost Allocation
Attachment 5
73 Outstanding
SRF Loan Due Date
Member
Agency
Allocation
Percentage Interest Principal Payment
Balance
6-30-2022
Plant Expansion 12/31/2022 Corona 42.420% $ 494,890 $ 1,408,299 $ 1,903,189 $ 26,046,820 HGSD 1.580% $ 18,433 $ 52,454 $ 70,887 $ 970,155
JCSD 46.020% $ 536,889 $ 1,527,815 $ 2,064,704 $ 28,257,299 Norco 9.100% $ 106,164 $ 302,110 $ 408,275 $ 5,587,602
WMWD 0.880% $ 10,266 $ 29,216 $ 39,481 $ 540,339
100.000% $ 1,166,642 $ 3,319,894 $ 4,486,536 $ 61,402,215 WRCRWA Budget Schedule
Fiscal Year 2022-2023
Debt Service Expenditures
Debt Service
Attachment 6
74 Description
Non-Replacement Capital Total Corona HGSD JCSD Norco WMWD Treatment System
Odor Mitigation Project 4,906,000 918,109 262,814 2,102,564 946,171 676,342 Anaerobic Digester #3 6,241,000 1,167,941 334,330 2,674,705 1,203,639 860,385 Solar Dryer Discharge Conveyor 1,792,000 335,355 95,997 767,997 345,605 247,046 Total Treatment Plant 12,939,000 2,421,405 693,141 5,545,266 2,495,415 1,783,773 Conveyance-South Regional Pump Station
SRPS Emergency Pump 226,000 74,015 21,188 - 70,625 60,172 Total Conveyance 226,000 74,015 21,188 - 70,625 60,172
Replacement Capital Total Corona HGSD JCSD Norco WMWD
Asset Replacement Reserve
Treatment 577,448 108,064 30,934 247,476 111,367 79,607 Conveyance 363,436 119,025 34,072 - 113,574 96,765
Total Asset Replacement Reserve Contribution 940,884 227,089 65,006 247,476 224,941 176,372 Total Capital Contributions $ 14,105,884 $ 2,722,509 $ 779,335 $ 5,792,742 $ 2,790,981 $ 2,020,317 Capital Budget
WRCRWA Budget Schedule
Fiscal Year 2022-2023
Agency Amounts to be Contributed
Attachment 7
75 WRCRWA Capital Improvement Projects Fiscal Year 2022-2023 Introduction
The WRCRWA Administrator is recommending approval and implementation of the following capital improvement projects for Fiscal Year 2022-2023.
1. Odor Mitigation Project
2. Anaerobic Digester #3
3. Solar Dryer Discharge Conveyor
4. SRPS Emergency Pump
The capital projects are critical to the successful operation of the WRCRWA Wastewater Treatment Plant. The projects are described on the following pages.
Attachment 8
76 WRCRWA Capital Improvement Projects
Fiscal Year 2022-2023 Budget
Capital Project No. 1: Odor Mitigation Project
Allocation: Treatment
Estimated Cost: $6,418,193
Budget Carryover from Fiscal Year 2021-2022 $4,906,000
Summary
The WRCRWA Odor Mitigation Project will implement mitigation alternatives recommended by the engineering consulting firm hired to complete an Air Dispersion Model for the WRCRWA Treatment Plant. The project involves consolidating the six chemical scrubbers exhaust stacks (located very close to the eastern boundary of the WRCRWA Treatment Plant and nearby residential neighborhood) into a single larger diameter duct and relocating this consolidated exhaust stack farther to the west side of the WRCRWA Treatment Plant. This project also includes covering the cascading weir of Bioreactor No. 1 and capturing, routing, and treating foul air at the existing biofilter nearby. The biofilter will be modified as needed to treat the additional airflow.
Justification
Air Dispersion Model analysis indicated this project will help further mitigate fugitive odors at the WRCRWA Treatment Plant. This project aligns with the WRCRWA-adopted Odor Management Plan Policy goal to systematically and proactively identify potential odor sources at the WRCRWA Treatment Plant and determine control strategies to reduce identified odors.
Background
Air Dispersion Model findings determined that the chemical scrubbers located at the Solar Drying Facility and the cascading weir at Bioreactor No. 1, required mitigation to further reduce offsite odor impacts.
Jacobs Engineering developed the proposed solution and presented it to WRCRWA’s Board of Directors in June 2019. Staff analyzed proposed solutions, vetted them through a third-party odor expert, and recommended that the Board of Directors move forward this Odor Mitigation Project. In September 2019, WRCRWA’s Board of Directors authorized the Administrator to amend the Fiscal Year 2019-2020 Budget by $500,000 to begin preliminary work, which included beginning the CEQA process and design. During Fiscal Year 2020-2021, CEQA and design were completed. During Fiscal Year 2021-2022 we began the construction.
The requested budget for Fiscal Year 2022-2023 is for construction of the Odor Mitigation Project.
Schedule
It is anticipated project completion will be during Fiscal Year 2022-2023.
Attachment 8
77 WRCRWA Capital Improvement Projects
Fiscal Year 2022-2023 Budget
Capital Project No. 2: Anaerobic Digester No. 3
Allocation: Treatment
Estimated Total Cost: $9,240,000
Budget Carryover from Fiscal Year 2021-2022 $6,241,000
Summary
Anaerobic Digester No. 3 design is complete. Due to the timing of other capital projects, the Administrator scheduled construction of this project to began in Fiscal Year 2021-2022.
Justification
Anaerobic Digester No. 3 is necessary to provide redundancy and back-up in case of emergency or planned and un-planned major maintenance of either of the existing digesters. Addition of Anaerobic Digester No. 3 provides necessary solids digestion and treatment capacity as projected flow increases, within the next 2 years, reach 10 million gallons per day.
Background
Based on the capacity review by the Designer (Webb/Aqua) and a Consultant (WT Troxel & Associates), as influent flows continue to increase at the WRCRWA Treatment Plant, the projected hydraulic and organic loading on the two in-place digesters will begin to stress their performance. The projected point at which overall treatment plant performance will be impacted is 10 million gallons per day (MGD).
Without the addition of a third digester, as flows increase there will be no capacity or redundancy available to take a digester out of service for maintenance or during an emergency, risking the WRCRWA Treatment Plant’s ability to comply with its NPDES Effluent Permit requirements.
In Fiscal Year 2019-2020, the Board of Directors approved funding to hire an engineering firm to complete the design for Anaerobic Digester No. 3. Design was completed, and the project was advertised for public bidding, the bid opening was on October 14, 2021. Noticed To Proceed was issued on February 2, 2022. Construction began during Fiscal Year 2021-2022.
Schedule
It is anticipated that project completion will be June 2023.
Attachment 8
78 WRCRWA Capital Improvement Projects
Fiscal Year 2022-2023 Budget
Capital Project No. 3: Solar Dryer Discharge Conveyor
Allocation Treatment
Estimated Total Cost: $1,792,000
Budget Carryover from Fiscal Year 2021-2022 $0
Summary
The Solar Dryer Conveyor project consists of the replacement of four conveyors at the “dry end” of the Solar Dryer and modifying the discharge chute. These conveyors transfer the processed sludge from the solar drier into the sludge loadout building where they are discharged into semitrailers for offsite disposal.
Justification
This system is a single point of potential failure and needs to be fortified. During times of wetter solids, the current system conveys the wet solids to the end without much drying.
Background
The project consists of replacement of four conveyors at the “dry end” of the Solar Dryer. The conveyors on the “dry end” of the dryer that feed the truck loadout facility were sized for dryer solids. The solar dryer feed conveyors have sufficient capacity (provided the sludge is fairly dry, >50%). However, if dewatering equipment produces wetter solids, if a solar dryer bay is offline, or in periods of colder weather, wet solids could be conveyed from the wet end to the dry end without much drying occurring. Due to this potential, these conveyors should be replaced to allow for similar capacities as the “wet” feed conveyors. Also, the discharge chute at the end of the solar dryer needs to be modified to prevent solids bridging at times of the year.
It is recommended that with the replacement of the conveyance system, the chute should be modified to be wider and reduce the potential for “bridging” of solids above the conveyor.
Additionally, it is recommended to have spare motors and parts to keep this system running.
Schedule
It is anticipated project completion will be during Fiscal Year 2022-2023.
Attachment 8
79 WRCRWA Capital Improvement Projects
Fiscal Year 2022-2023 Budget
Capital Project No. 4: South Regional Pump Station (SRPS) Emergency Pump Allocation: Conveyance
Estimated Total Cost: $1,000,000
Budget Carryover from Fiscal Year 2021-2022 $226,000
Summary
Design, purchase, and installation of a standalone diesel bypass pump at the SRPS.
Justification
Currently there is no back up power at the SRPS. By design, in the event of a power outage, the wet well fills and if power is not restored quickly, raw sewage overflows into the Inland Empire Brine Line (Brine Line). Numerous improvements and upgrades have been implemented at the SRPS and WRCRWA Treatment Plant since 2016 to increase the overall system redundancy and reliability. The goal of the improvements/upgrades are to prevent future sewage overflow into the Brine Line located adjacent to the SRPS. Installation of a standalone diesel bypass pump will provide additional redundancy and reliability to the sewage collection system. The pump will also allow WRCRWA to maintain independent hydraulic control in the event of mechanical and/or electrical equipment failures at SRPS allowing the SRPS to continue to pump flows to the WRCRWA Treatment Plant rather than discharging them to the Brine Line.
Background
The SRPS serves the City of Riverside, Home Gardens, City of Norco, and City of Corona by pumping wastewater from these cities just over three miles to the WRCRWA Treatment Plant.
Average daily pumping flow is 3 MGD.
Orange County Sanitation recently objected to un-planned and unnoticed sewage flows in the Brine Line and added a requirement to the Santa Ana Watershed Project Authority’s (SAWPA) discharge permit that required development of a plan to incorporate robust redundancies to prevent discharges to the Brine Line. Installation of the standalone diesel bypass pump will comply with this requirement should it be added to WRCRWA’s permit from SAWPA.
The WRCRWA Treatment Plant was designed to rely on the Brine Line and ultimately Orange County Sanitation District as a back-up if there were problems that WRCRWA’s system could not handle. This option provides for redundancy against failure not only due to electrical but also due to mechanical issues. It also provides an added advantage over the generator only option that was considered last year as it is a more efficient option.
Schedule
It is anticipated project completion will be during Fiscal Year 2022-2023.
Attachment 8
80 Babcock Laboratories $180,000 Lab services and sampling analysis at the WRCRWA treatment plant. RFP conducted in 2022 and pricing agreement anticipated to be in place through at least July 2025.
Synagro West, LLC $300,000
Biosolids handling services for removal, transportation, composting, land application, and other beneficial reuse of biosolids generated at the treatment plant. Single Source Justification Form to be completed. Pricing agreement anticipated to be in place through June 2023.
Olin Corporation $677,000
Vendor provides Sodium Hypochlorite (12.5% Bleach), Sodium Bisulfite (Dechlor), and Sodium Hydroxide (Caustic Soda) for the treatment plant. Single Source Justification Form to be completed. Pricing agreement anticipated to be in place through June 2023.
Pencco $237,000
Vendor provides Iron Salts (SULFeND RT) which is a proprietary product exclusive to Pencco.
Their form of Iron Salts is nonhazardous with reduced risks for employees and the environment.
Sole Source Justification Form to be completed. Pricing agreement anticipated to be in place through June 2023.
Solenis LLC $463,000
Vendor provides Sludge Dewatering Polymer for the treatment plant. Single Source Justification to be completed. Competitive quotes to be obtained. Pricing agreement anticipated to be in place through June 2023.
Univar $546,000 Vendor provides Sulfuric acid (93% NSF). Single Source Justification Form to be completed.
Pricing agreement anticipated to be in place through June 2023.
Estimated total $ 2,403,000
WRCRWA Fiscal Year 2022-2023 Estimated Annual Purchase Orders Over $60,000 FY21-22 Vendor
FY22-23
Estimated
Amount Type of Work / Description of Services
Attachment 9
81 RESOLUTION 22-004
RESOLUTION OF THE BOARD OF DIRECTORS OF THE
WESTERN RIVERSIDE COUNTY REGIONAL WASTEWATER
AUTHORITY ESTABLISHING RATES TO BE CHARGED
FOR THE CONVEYANCE, TREATMENT AND DISPOSAL
OF WASTEWATER
WHEREAS, the WESTERN RIVERSIDE COUNTY REGIONAL WASTEWATER AUTHORITY (“the AUTHORITY”) owns and operates a wastewater conveyance, treatment and disposal system (“system”); and WHEREAS, the agencies having the right to discharge to the AUTHORITY’s system are the AUTHORITY’s Member Agencies: The Home Gardens Sanitary District, the Jurupa Community Services District, the City of Norco, the Western Municipal Water District of Riverside County, and the City of Corona (Corona); and
WHEREAS, in order to defray the costs of operating and
maintaining its system, the AUTHORITY must establish, from timeto-time, rates to be charged to its Member Agencies for the operation and maintenance of the system.
NOW, THEREFORE, the Board of Directors of the WESTERN
RIVERSIDE COUNTY REGIONAL WASTEWATER AUTHORITY hereby resolve as follows:
Section 1. Rate Components The rate to be charged to
use the system shall consist of the following components:
a. A fixed rate component, which shall defray system
operation and maintenance costs and expenses which do
not vary significantly in proportion to the wastewater
flow delivered to the system. The fixed rate component
consists of the following sub-components:
• Treatment
• Conveyance
• Administration
Attachment 10
82 b. A variable rate component, which shall defray the system operation and maintenance costs and expenses
which vary generally in proportion to the wastewater
flow delivered to the system. The variable rate
component shall consist of the following sub-components:
• Treatment
• Conveyance
c. An Excess Capacity Surcharge Rate Component, which
shall include the above Fixed and Variable Rate
Components together with Annualized Capital Costs. This Excess Capacity Surcharge Rate Component shall be
charged to a member agency for discharges in excess of
that agency’s owned capacity. The Surcharge Rate
Component shall consist of the following sub-components:
• Treatment
• Conveyance
Section 2. Fixed Rate There is hereby established,
and each Member Agency shall pay, whether or not any wastewater is delivered to the system, the total of the following fixed rate sub-components, per million gallons per day (“MGD”) of capacities owned by the Member Agency:
Fixed Rates: MGD per month
Treatment 23,897
Conveyance 2,670
Subtotal
$26,567
Administration
8,297
Grand Total Fixed
$34,864
Section 3. Variable Rate In addition to paying the total fixed rate provided for above, each Member Agency shall pay for 83 each million gallons of wastewater actually delivered by the Member Agency to the system the following variable rate subcomponents:
Variable Rates: MG Discharged
Treatment 1,398
Conveyance 71
Grand Total Variable $1,469
Section 4. Allocation of Capacity for Fixed Rate
Calculation Purposes Fixed rates due hereunder shall be calculated on the basis of the following allocation of capacity in the system:
a. To calculate the fixed rate for the Treatment and
Administration sub-components, the following capacities are hereby allocated to the Member Agencies using 14.0
MGD existing capacity:
Agency MGD
HGSD 0.75
JCSD 6.00
NORCO 2.70
WMWD 1.93
Corona 2.62
Total 14.00
b. To calculate the fixed rate Conveyance subcomponent, the following capacities are hereby allocated to the Member Agencies using 8.0 MGD existing capacity:
84 Agency MGD
HGSD 0.75
JCSD 0.00
NORCO 2.50
WMWD 2.13
Corona 2.62
Total 8.00
Section 5. Excess Capacity Management Service Rates
Excess capacity rate methodology was adopted by the Board on March 27, 2013 along with the Excess Capacity Management Service that allows Members in need of capacity to temporarily use capacity excess to the needs of another Member. The rate consists of the above Fixed and Variable rate components together with a Capital/Carry component calculated as a return on investment for capital and ongoing carrying costs paid by Members for ownership of capacity excess to their current needs. The Variable component is invoiced at the time capacity is used. The Fixed component and Capital/Carry component are billed separately throughout the year. a. Excess Capacity Treatment Surcharge Rate
MG Discharged
Fixed 1,058
Variable 1,398
Cap/Carry 735
Total Surcharge $3,191
85 b. Excess Capacity Conveyance Surcharge Rate
MG Discharged
Fixed 88
Variable 71
Capital/Carry Costs 189
Total Surcharge $348
Section 6. Payment Due Date Invoices for Fixed Rates
shall be paid monthly, in advance. The Fixed Rate invoice will be billed by approximately the 21st of the prior month and shall considered delinquent if not paid by the 15th of the month for which the charge is being paid.
The variable charge shall be paid monthly, in arrears. The variable charge will be based on actual flows and will be billed on approximately the 21st of the month following the actual flows.
Payment will be considered delinquent if not paid by the 15th of the following month.
Invoices for Excess Capacity Surcharge Rates shall be paid upon receipt, based on capacity used that exceeds capacity owned.
The Excess Capacity Surcharge Rate Invoice will be based on actual flows and will be billed throughout the year based on Excess Capacity use activity. Payment will be considered delinquent if not paid by the 15th of the following month.
Section 7. Effective Date The rates established by this Resolution shall be effective on July 1, 2022. Resolution 21-004 is hereby superseded.
86 ADOPTED this 28th day of April 2022.
WESTERN RIVERSIDE COUNTY REGIONAL
WASTEWATER AUTHORITY
____________________________________
KATHERINE ALEMAN
Chair
I hereby certify that the foregoing is a full, true, and correct copy of Resolution 21-004 adopted by the Board of Directors of WESTERN RIVERSIDE COUNTY REGIONAL WASTEWATER AUTHORITY at a meeting held April 28, 2022.
___________________________________
Secretary-Treasurer
87 Presentation for:
WRCRWA Fiscal Year 2022-2023
Proposed Budget
Presented by:
Gary Miller, Administrator
Board Budget Presentation
Attachment 11
88 Budget Highlights
111111
▪ Operating
▪ Year-to-Year (YTY) total operating budget increased by 14.5% ▪ Increases in Utilities, Chemicals, Solids Disposal and Insurance
▪ Decrease in Legal Costs
▪ Overall fixed rates increased by 0.3% and overall variable rates increased by 17.7%
▪ Debt Service
▪ Annual debt service for Plant Expansion SRF Loan remains the same amount as prior year
▪ Capital Projects
▪ Capital Budget increased due to new Solar Dryer Discharge Conveyor project
2 89
Operating Budget
90 Proposed Operating Budget
$10,823.3K for Fiscal Year 2022-23
(in thousands)
4 Treatment Plant,
$9,045.7, 83.6%
Conveyance, $383.7,
3.5%
General & Administrative, $1,393.9,
12.9%
Treatment Plant Conveyance General & Administrative
91 5
Proposed FY 2022-2023
Operating Budget
$7,754.6
$372.8
$1,322.1
$9,045.7
$383.7
$1,393.9
$0.0
$1,000.0
$2,000.0
$3,000.0
$4,000.0
$5,000.0
$6,000.0
$7,000.0
$8,000.0
$9,000.0
$10,000.0
Treatment Plant Conveyance General & Administrative
Operating Budget - YTY Changes
$1,373.8K or 14.5%, net increase
(in thousands)
FY 21-22 FY 22-23
92 Proposed FY 2022-2023
Operating Budget
-$84.9, -3.0%
$468.5, 33.1%
$825.1, 67.3%
-$200.0
$0.0
$200.0
$400.0
$600.0
$800.0
$1,000.0
Labor Utilities Chemicals
Major Causes of Treatment System - YTY Changes
$1291.1K or 16.7%, net increase
(in thousands)
6 93
Rate Calculations
94 Proposed FY 2022-2023 Budget
Capacity, Rates, and Contributions
Fixed and Variable
8 Capacity Contribution Capacity Contribution Capacity Contribution Total by Agency Corona 2.62 $ 751,322 2.62 $ 83,944 2.62 $ 260,857 $ 1,096,123 HGSD 0.75 $ 215,073 0.75 $ 24,030 0.75 $ 74,673 $ 313,776 JCSD 6.00 $ 1,720,586 - $ - 6.00 $ 597,382 $ 2,317,968
Norco 2.70 $ 774,263 2.50 $ 80,100 2.70 $ 268,822 $ 1,123,185 WMWD 1.93 $ 553,456 2.13 $ 68,245 1.93 $ 192,158 $ 813,859 Total 14.00 $ 4,014,700 8.00 $ 256,319 14.00 $ 1,393,892 $ 5,664,911 Est. Flows Rate Est. Flows Rate Est. Flows Rate Total by Agency Corona 1.50 765,364 $ 1.50 38,915 $ - $ - $ 804,279
HGSD 0.61 311,248 $ 0.61 15,825 $ - $ - $ 327,073
JCSD 4.95 2,525,701 $ - -$ - $ - $ 2,525,701
Norco 2.00 1,020,485 $ 2.00 51,887 $ - $ - $ 1,072,372
WMWD 0.80 408,195 $ 0.80 20,754 $ - $ - $ 428,949
Total 9.86 5,030,993 $ 4.91 127,381 $ - $ - $ 5,158,374 Grand Totals $ 9,045,693 $ 383,700 $ 1,393,892 $ 10,823,285 Variable Rate
per MGD:
$1,398 $71 $0
$23,897
Treatment Plant Conveyance General & Administrative
Fixed Rate
per MGD:
$2,670 $8,297 95
Proposed FY 2022-2023 Budget
Rate Calculation
9 Fixed Rates:
Based on Million Gallons Per Day (MGD) per Month FY 2022-2023 FY 2021-2022 Total Fixed Expenses
Capacity
$4,014,700
14 MGD
$256,319
8 MGD
$1,393,892
14 MGD
Variable Rates:
Based on Million Gallons Day (MGD) of Estimated Flows per Day Total Variable Expenses
Estimated Flows
$5,030,993
9.86 MGD
$127,381
4.91 MGD
Variable Rate
$1,147
$101
Conveyance /12 = $2,670
/12 =
Treatment Plant /12 $23,897
Fixed Rate
=
Fixed Rate
$24,275
General and Administrative /12 = $8,297
$2,605
$7,870
Conveyance /365 = $71
/365 = Variable Rate
Treatment Plant /365 = $1,398
96 Debt Service Budget
97 Proposed FY 2022-2023
Debt Service Budget
Allocation of $4,486,536
11 98
Capital Budget
99 Proposed FY 2022-2023
Capital Budget
13 CIP Project Name
Estimated
Total Project
Cost
Estimated
Amount of
Budget Spent
by June 2022
Budget
Amount to
Carry
Forward to
FY22-23
Additional
Budget Need
/ New
Request
Projected
FY22-23
Capital
Budget Need
Conveyance System
Asset Replacement Reserve Funding 363,436$
SRPS Emergency Pump 1,000,000$ 774,000$ 226,000$ -$ 226,000$ Conveyance Total 1,000,000$ 774,000$ 226,000$ -$ 589,436$ Treatment System
Asset Replacement Reserve Funding 577,448$
Odor Mitigation Project 6,418,193$ 1,512,193$ 4,906,000$ -$ 4,906,000$ Anaerobic Digester #3 9,240,000$ 2,999,000$ 6,241,000$ -$ 6,241,000$ Solar Dryer Discharge Conveyor 1,792,000$ -$ -$ 1,792,000$ 1,792,000$ Treatment Total 17,450,193$ 4,511,193$ 11,147,000$ 1,792,000$ 13,516,448$ Asset Replacement Reserve Funding Total 940,884$
Capital Improvement Projects Total 13,165,000$
Grand Total 18,450,193$ 5,285,193$ 11,373,000$ 1,792,000$ 14,105,884$ 100
Proposed FY 2022-2023
Capital Budget
14 Description
Non-Replacement Capital Total Corona HGSD JCSD Norco WMWD Treatment System
Odor Mitigation Project 4,906,000 918,109 262,814 2,102,564 946,171 676,342 Anaerobic Digester #3 6,241,000 1,167,941 334,330 2,674,705 1,203,639 860,385 Solar Dryer Discharge Conveyor 1,792,000 335,355 95,997 767,997 345,605 247,046 Total Treatment Plant 12,939,000 2,421,405 693,141 5,545,266 2,495,415 1,783,773 Conveyance-South Regional Pump Station
SRPS Emergency Pump 226,000 74,015 21,188 - 70,625 60,172 Total Conveyance 226,000 74,015 21,188 - 70,625 60,172
Replacement Capital Total Corona HGSD JCSD Norco WMWD
Asset Replacement Reserve
Treatment 577,448 108,064 30,934 247,476 111,367 79,607 Conveyance 363,436 119,025 34,072 - 113,574 96,765
Total Asset Replacement Reserve Contribution 940,884 227,089 65,006 247,476 224,941 176,372 Total Capital Contributions $ 14,105,884 $ 2,722,509 779,335$ $ 5,792,742 $ 2,790,981 $ 2,020,317 Agency Amounts to be Contributed 101
Member Contributions
102
Member Contribution Summary
Year-to-Year Comparison
16 Expenditure Category Corona HGSD JCSD Norco WMWD Total Operations:
Treatment System 1,516,686 526,321 4,246,287 1,794,748 961,651 9,045,693 Conveyance System 122,859 39,855 - 131,987 88,999 383,700 General & Administration 260,857 74,673 597,382 268,822 192,158 1,393,892 Total Operating Contributions 1,900,402 640,849 4,843,669 2,195,557 1,242,808 10,823,285 Debt Service:
SRF Loan 1,903,189 70,887 2,064,704 408,275 39,481 4,486,536 Capital:
Non-Replacement Capital 2,495,420 714,329 5,545,266 2,566,040 1,843,945 13,165,000 (1) Asset Replacement Reserve 227,089 65,006 247,476 224,941 176,372 940,884 Total Capital Contributions 2,722,509 779,335 5,792,742 2,790,981 2,020,317 14,105,884 Total Member Contributions $ 6,526,100 $ 1,491,071 $ 12,701,115 $ 5,394,813 $ 3,302,606 $ 29,415,705 Expenditure Category Corona HGSD JCSD Norco WMWD Total
Operations:
Treatment System 972,575 440,396 3,820,451 1,611,385 909,750 7,754,557 Conveyance System - 42,981 - 150,762 179,095 372,838
General & Administration 247,421 70,827 566,613 254,976 182,261 1,322,098 Total Operating Contributions 1,219,996 554,204 4,387,064 2,017,123 1,271,106 9,449,493 Debt Service:
SRF Loan 1,903,189 70,887 2,064,704 408,275 39,481 4,486,536 Capital:
Non-Replacement Capital 1,891,997 630,659 4,332,869 2,246,702 1,957,833 11,060,060 Asset Replacement Reserve 125,567 58,740 287,561 205,393 236,878 914,139 Total Capital Contributions 2,017,564 689,399 4,620,430 2,452,095 2,194,711 11,974,199 Total Member Contributions $ 5,140,749 $ 1,314,490 $ 11,072,198 $ 4,877,493 $ 3,505,298 $ 25,910,228 Total Member Contribution YTY Change $ 1,385,351 $ 176,581 $ 1,628,917 $ 517,320 $ (202,692) $ 3,505,477 (1) 11.4M is carried over from FY21-22 Budget
Adopted Fiscal Year 2021-2022 Budget
Proposed Fiscal Year 2022-2023 Budget
103
Annual Purchase Orders
104
Proposed FY 2022-2023
Annual Purchase Orders Over $60,000
18 Babcock Laboratories $180,000 Lab services and sampling analysis at the WRCRWA treatment plant. RFP conducted in 2022 and pricing agreement anticipated to be in place through at least July 2025.
Synagro West, LLC $300,000
Biosolids handling services for removal, transportation, composting, land application, and other beneficial reuse of biosolids generated at the treatment plant. Single Source Justification Form to be completed. Pricing agreement anticipated to be in place through June 2023.
Olin Corporation $677,000
Vendor provides Sodium Hypochlorite (12.5% Bleach), Sodium Bisulfite (Dechlor), and Sodium Hydroxide (Caustic Soda) for the treatment plant. Single Source Justification Form to be completed. Pricing agreement anticipated to be in place through June 2023.
Pencco $237,000
Vendor provides Iron Salts (SULFeND RT) which is a proprietary product exclusive to Pencco.
Their form of Iron Salts is nonhazardous with reduced risks for employees and the environment. Sole Source Justification Form to be completed. Pricing agreement anticipated to be in place through June 2023.
Solenis LLC $463,000
Vendor provides Sludge Dewatering Polymer for the treatment plant. Single Source Justification to be completed. Competitive quotes to be obtained. Pricing agreement anticipated to be in place through June 2023.
Univar $546,000 Vendor provides Sulfuric acid (93% NSF). Single Source Justification Form to be completed.
Pricing agreement anticipated to be in place through June 2023.
Estimated total $ 2,403,000
FY21-22 Vendor
FY22-23
Estimated
Amount Type of Work / Description of Services 105
Recommendation
The Executive Committee and the Administrator
recommend the Board of Directors approve the following:
▪ Adopt the proposed Fiscal Year 2022-2023 Budget
▪ Adopt Resolution 22-004, establishing the rates
▪ Direct Member Agencies to present the Fiscal Year 2022- 2023 Budget to their governing boards for approval
▪ Authorize the Administrator to open annual purchase orders 19 106
Questions?
107
Electric Energy Utility Impacts
108
WRCRWA Electric Energy
111111
22 $-
$200,000.00
$400,000.00
$600,000.00
$800,000.00
$1,000,000.00
$1,200,000.00
$1,400,000.00
FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 Electric Cost
Electric Bill Totals by Fiscal Year
SCE Bill
Total
Solar Bill
Total
109
Key Energy Cost Drivers
111111
▪ SCE Rate Increases
▪ 4 rate increases total 20% in past year
▪ SCE Rate Change
▪ Change of Time of Use Schedule
▪ SCE Re-entry fees
▪ Monthly fee for anticipated for 12 months
23 110