CITY COUNCIL A G E N D A
MONDAY, OCTOBER 30, 2023
3:00 P.M. Special Session
33 Church Street, Sutter Creek CA 95685
The Agenda can be found on the City’s Website: www.cityofsuttercreek.org
THE CITY OF SUTTER CREEK CITY COUNCIL MEETING WILL BE AVAILABLE VIA ZOOM AND IN PERSON.
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Meeting ID: 956 852 0224
Unless stated otherwise on the agenda, every item on the agenda is exempt from review under the California Environmental Quality Act (“CEQA”) per CEQA Guidelines Sections 15060(c), 15061(b)(3), 15273, 15378, 15301, 15323 and/or Public Resources Code Section 21065. 1 CALL TO ORDER AND ESTABLISH A QUORUM FOR REGULAR MEETING
2. PLEDGE OF ALLEGIANCE TO THE FLAG
3. PUBLIC FORUM
At this time, the public is permitted to address the City Council on items not appearing on the agenda.
Comments may not exceed 5 minutes. In accordance with State Law, however, no action or discussion may take place on any item not appearing on the posted agenda. The City Council may respond to statements made or questions asked or may request Staff to report back at a future meeting on the matter. The exceptions under which the City Council may discuss and/or take action on items not appearing on the agenda are contained in Government Code §54954.2. Public comment on any item listed below shall be limited to five minutes, unless additional time is permitted by the Mayor/Council.
4. PRESENTATION
A. WWTP Replacement Project Update (informational)
8. ADJOURNMENT
The next regularly scheduled meeting is MONDAY, NOVEMBER 6 TH 7:00 P.M
18 Main St., Sutter Creek, CA 95685 • Telephone: (209)267-5647 • Fax: (209)267-1655 • TTY: 711 The City of Sutter Creek is an equal opportunity service provider and employer ______________________________________________________________________________
STAFF REPORT
TO: MAYOR AND CITY COUNCIL MEMBERS
MEETING DATE: OCTOBER 30, 2023
FROM: SANDRA SPELLISCY, INTERIM CITY MANAGER
SUBJECT:
RECOMMENDATION:
Informational
BACKGROUND:
Sutter Creek is the recipient of a $500,000 planning grant from the State Water Resources Control Board to do the planning and pre-design work for a new wastewater tertiary treatment plant. The original grant expiration date was September 30, 2023, but staff has requested an extension from the Water Board to continue working on the grant. Below are some key milestones that occurred/will occur leading up to and following receipt of the grant funding. ▪ July 2017 – City of Ione notifies ARSA that it will cease accepting treated effluent from the ARSA system as of July 2022 per 2007 three-party agreement. ▪ February 2018 – Sutter Creek approves adoption of Wastewater Master Plan Update that cites construction of new tertiary treatment plant as best alternative for system infrastructure improvements.
▪ August 2019 – Sutter Creek receives Planning Grant from SWRCB for a design/build project for a new treatment plant.
▪ February 2020 – Sutter Creek contracts with Carollo Engineering to act as Owner’s Advisor on the WWTP replacement project grant.
▪ January to May, 2021 – Carollo convenes numerous meetings with Council sewer subcommittee to discuss progress on the project, including cost estimates that show new plant costs estimated to be approximately $49 million.
▪ May 2021 – City administration tells Carollo to cease work on the project. ▪ September 2022 – ARSA files lawsuit against City of Ione and CDCR for breach of 2007 operating agreement.
▪ March 2023 – Staff discovers the existence of the grant and begins work to re-start the project.
▪ September 2037 – Operations agreement and ground leases for the ARSA system expire. 2 [Type text]
DISCUSSION:
Today’s special meeting is designed to update the Council on the most recent work on the project, and to provide new details about next steps and financial implications.
BUDGET IMPACT:
N/A
ATTACHMENTS:
Carollo PPT
Project Update
Wastewater Treatment
Plant Upgrade Project
City of Sutter Creek
October 2023
01 Introductions
C A R O L L O / 3
Christina Romano
City Staff
and Your
Carollo
Support
Team
Principal-In-Charge
Louis Lefebvre
Project Manager
Sandra Spelliscy
Interim City Manager
02 Agenda and Goals
C A R O L L O /
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Agenda • Meeting Goals • Project Background • Current Project Efforts • Funding Opportunities • Next Steps • Q&A C A R O L L O / 6
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Goals
• Develop understanding of:
»project, project history, and project costs
»project funding opportunities
»the processes that exist to facilitate
implementation
»community benefits
03 Project Background
C A R O L L O /
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Project Background • Existing wastewater treatment plant was built in 1949. »Some expansion and modification
since, but largely the same.
• Complex and costly Amador
Regional Sanitation Authority (ARSA)
treated wastewater disposal system »Legal complexity »Physical complexity »Outdated, needing extensive repair, and expensive to operate
C A R O L L O / 9
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Project Timeline – 2014 to 2023
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
RWQCB Issues Cease and Desist
Order to City of Ione
City of Ione Issues 5-yr
Termination Notice to ARSA
Wastewater Master Plan
Technical Memoranda
Peer Review of Master Plan
Technical Memoranda Completed
City Letter to RWQCB for
Discharge Permit to Sutter Creek
City Retains Carollo Engineers, as
Owner’s Advisor for the Project
City Receives Planning Grant
Funding from RWQCB
City Places Planning Grant Efforts
On Hold
City Re-Starts Project Efforts
Prompted investigation into changing
wastewater management.
New tertiary WWTP with
year-round discharge to
Sutter Creek found to be
most cost-effective.
Recommended new tertiary WWTP with
year-round discharge to Sutter Creek ,most
cost effective.
Recommended upgrades to existing WWTP and
upgrades to ARSA systems without economic analysis.
C A R O L L O / 10
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Planning Grant Project Report Alternatives
• Upgrading the existing WWTP and ARSA systems
• Regionalization with the City of Jackson
• Regionalization with the City of Ione
• Construct a new tertiary WWTP with year-round discharge to Sutter Creek
• Construct a new tertiary WWTP with discharge to ARSA (dry season) and Sutter Creek (wet season)
• Construct a new tertiary WWTP with discharge to Sutter Creek when dilution is greater than 20:1 and to ARSA when dilution is less than 20:1.
Most costeffective option
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Conceptual Project Site Layout
Excerpted from 2021
Project Report efforts
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WWTP Upgrade Project Benefits • Discontinue complex and costly use of ARSA pipeline
• City removes itself from complex legal
ARSA agreements
• Independence »Avoid State mandated action and/or
State enforcement action
• Potential for water recycling/reuse • Potential environmental benefit via increased flow in Sutter Creek
• Less costly now rather than later
04 Current Project Efforts
OVERVIEW
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Project Tasks Since April 2023 Restart
• Requested planning grant timeline extension and scope revision • Updated inflow and infiltration (I/I) analysis
• Validated existing flow to WWTP
• Updated project cost estimate
»New tertiary WWTP with year-round discharge to Sutter Creek • Planning level cost estimate prepared for planning and design services
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• The 2022 deadline originally drove previous design-build delivery strategy.
»40-yr ARSA agreements end in 2037
• More funding needed - design-bid-build delivery allows for more funding options.
• Change from “progressive design-build” to “design-bid-build” requires planning and pre-design to be performed now
instead of being part of a design-build contract.
Project driver changes since 2020
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• Request to Revise Scope/Alternatives
»Construct a new secondary WWTP with offsite disposal, not discharged to Sutter Creek
»Construct a new tertiary WWTP with year-round discharge to Sutter Creek
»Construct a new tertiary WWTP with year-round discharge to Sutter Creek and provisions for future recycled water
• Request to Extend Planning Grant Reimbursement Timeline »October 31, 2024
Planning Grant – Scope Revision and Time Extension
Request
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• Reimbursements under current grant expired on September 30, 2023 • Any work going forward is not eligible for reimbursement until the State Board grants the extension
• Expecting extension approval in Spring 2024
Planning Grant Considerations
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• City has high infiltration and
inflow
»Driver for large equalization
storage
• City-led I/I efforts include:
»Smoke testing
»Manhole lining
»Bolting down manhole lids
Infiltration and Inflow Background
C A R O L L O / 19
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Inflow and Infiltration Analysis Update
• Sewer flow monitoring in March/April 2023
• I/I has not reduced
• Needs to be accounted for by the WWTP
Upgrade Project
• Prioritize four basins for rehabilitation to
maximize I/I reduction potential
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WWTP Peak Flows Have Increased
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Project Construction Cost Update
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
120.0%
Jan-21 Apr-21 Jul-21 Oct-21 Feb-22 May-22 Aug-22 Dec-22 Mar-23 Jun-23 Percent Increase
Change in Commodity Producer Price Indices Since Feb 2021 Concrete, Ready Mix Rebar and Steel Building Materials
Pumps and Equipment Steel Pipe Stainless Steel
Ductile Iron Pipe Plastic Pipe Fiber Reinforced Plastic Copper Wire Labor
C A R O L L O / 22
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Project Construction Cost Update
$48M
2021
X 1.3
$62M
2023
$84M
2028
6% annual inflation
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Project Construction Cost Estimate Updates
Midpoint of
Construction
Construction Cost
Estimate
Cumulative Cost of Delay
2023 $62M n/a
2026 $74M n/a
2027 $79M $5M
2028 $84M $10M
2029 $89M $15M
2030 $94M $20M
Note: These are AACE level 5 cost estimates with an accuracy range from -30% to +50%. 04 Funding Opportunities
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Changes to the funding landscape
• Bipartisan Infrastructure Law (BIL): WW Infrastructure Funding » Increased funding for Clean Water SRF Programs ($11.713B over 5 years nationwide)
−Increased funding for disadvantaged communities as BIL requires 49% of monies be provided as grants/Principal
Forgiveness
» Sewer overflow and stormwater reuse municipal grants
($280M/yr for 5 years)
• State Budget Action 2021/2022/2023 Opportunities
» State Water Resources Control Board ($1.55B)
» Department of Water Resources (~$1.2B)
»Governor’s Office of Planning and Research
C A R O L L O / 26
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Potential Funding Strategies
100% Small Community Clean
Water/WW (SRF) Funding
• Planning Grant (typ. 6-9 month process)
• Construction Grant ($45,000/connection with no cap) – Due to current demands SWRCB may modify approach to funding awards for DACs • Low Interest Loan Financing (FY 2023 2.8% interest/30 years) • Federal Cross Cutters (CEQA+, BABA, AIS, Davis Bacon, etc.) 100% USDA Funding • Low interest loan financing (3%+; 40-year loan term) • Grant funding would be dependent on MHI
• Considerations:
• Program will not fund DB project delivery
• USDA has limited funding capacity (annual cap is $30-$40M); would require national approval
Small Community Clean Water/WW
(SRF) / USDA Funding
• CWSRF grant funding to extent available
• USDA Low Interest Loan Financing (perhaps small grant) • Considerations:
• Program will not fund DB project delivery
• Limited funding capacity (annual cap is $30-$40M); requires national approval for higher awards
WIFIA & Small Community Clean
Water/WW (SRF)/USDA
• 49% WIFIA and 51% SRF/USDA Financing
• WIFIA is competitive; low demand on program for DAC projects 26 05 Next Steps
Tasks, Risks, Decisions
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Due Diligence and Feasibility
• Funding strategy/planning
• Rate study
• EQ tank siting analysis
»Engineering and environmental evaluation
• Land acquisition analysis
• PG&E coordination
• Caltrans right-of-way coordination
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Planning and Permitting
• Project Report
• Report of Waste Discharge
• Preliminary design of preferred alternative
• CEQA/NEPA
• Construction funding application(s)
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Next Steps – Planning Budget
• Planning Budget - $1.5M - $2.5M
• Potential and Existing Funding Sources
»Existing SRF planning grant
− With planned budget increase request
»USDA Rural Development
»EPA WIFIA
»Stepped rate increase(s)
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Question and Answer