HomeMy WebLinkAboutMorrison-Maierle Inc.MORRISON
41-A MAIERLE, INC.
An Employee-Owned Company
December 12, 2008
Mayor Kenneth Olson
City of Laurel
115 W. First Street
P.Q. Box 10
Laurel, MT 59044
Dear Mayor Olson:
ENGINEERS
SURVEYORS
PLANNERS
SCIENTISTS
315 N. 25th STREET - SUITE 102 - BILLINGS, MT 59101 -406-656-6000 • FAX: 406-237-1201
DEC i g zoos
CITY OF LAUREL
This letter shall serve as a follow-up to the Wastewater Project Update presented at the
December 9th City Council Workshop. The purpose of this letter is to provide a brief summary of
Morrison-Maierle's progress to date, cost and rate information on the proposed alternatives, and
to request Council direction on these alternatives. Additionally, further City action items are
recommended at the end of this letter.
One of the first tasks to be completed for this project was a review of the possible discharge
permit limits that may be imposed by the Montana DEQ for Laurel's pending MPDES permit.
This analysis was completed in August with the probable outcome that the new permit would
very likely include an ammonia limit and most likely also include numerical limits for total
nitrogen and phosphorous.
This analysis indicates that the recommended treatment alternative should be activated sludge
rather than addition of BBC's as indicated in the 2006 Facility Plan update. The activated
sludge alternative was contemplated in the Facility Plan and 2006 update, but was to be re-
evaluated based on likely discharge permit limits as was recently completed.
Therefore, MMI recommends modifying the Facility Plan to include the permit limit analysis and
implementation of the activated sludge alternative with the upcoming project. This modification
will increase the overall cost of the current project by roughly $1.2 million. This additional cost
upfront will be much more efficient in the long run, however, meeting future nutrient permit limits
at less overall cost. The August 29, 2008 Technical Memorandum documents and summarizes
our findings for the discharge permit.
City staff have indicated that the City might be interested in proceeding with the disinfection
system improvements outlined in the 2006 Facility Plan with the current project. This project
would consist of ultraviolet (UV) light disinfection. The Facility Plan recommends this
improvement in a subsequent project as the new permit will most likely include a compliance
schedule that would allow it to be installed several years from now. Additionally, it would be a
good project to submit to TSEP in May of 2010 for up to a 50 percent grant. MMI recommends
postponing this project and submitting for additional grant assistance as long as the City has not
contemplated supporting a different TSEP grant project.
Finally, MMI was requested by Amendment 1 to Task Order 1 to evaluate options for sewer
service to the east end of laurel with other lift station alternatives. MMI has completed this
evaluation and identified five alternatives ranging in cost from $5.7 M to $9.2 M. These
alternatives and the relative costs are summarized in our technical memorandum dated October
3, 2008. Based on conversations with City staff and you, it appears that the City's decision will
"Providing resources in partnership with clients to achieve their goals"
;; . ' MORRISON
li MAIERLE, INC.
probably be to stick with the originally envisioned lift station improvements rather than one of
these more expensive alternatives at this time. The City could proceed with one of these
alternatives to service the east side of town at a later date and with other financing.
Our estimates for the project alternatives are summarized in the attached table. This table
includes the original project cost, the original project with the activated sludge option, and the
original project with the activated sludge and UV options. Also shown on this table are the
estimated rate increases to support each of these options. As you are aware, the City has a 19
percent rate increase scheduled for 2009. This table shows additional equal rate increases for
2010, 2011, and 2012. Alternatively, these rate increases could all be accomplished in one or
two years with the total rate increase being the sum of the three years increases shown.
Based on this information and additional questions at the December 30th Council Workshop,
MMI is requesting direction on three issues as follows:
1. Endorse activated sludge as part of Phase II or continue with the RBC improvements.
(MMI strongly recommends implementation of the activated sludge option). Formal
action on the final, revised Facility Plan will be required by MDEQ.
2. Addition of UV light disinfection to the Phase II Project or pursue as a separate project
after 2010. (MMI recommends postponing this improvement until after 2010 and
implement it as a separate project provided the City agrees that this project could be
incorporated into a TSEP grant application in May 2010.)
3. Incorporation of the originally envisioned lift station improvements (basically replace or
renovate to existing capacities) or incorporate expanded lift station alternatives to better
serve the area on the east side of town. (MMI recommends pursuit of additional funding
for these improvements and implementation at a later date).
Please review these decisions and let us know if you have any questions or need more
information. Again, I will be at the December 30th Council Workshop to answer any questions of
you, staff, or the Council.
Additionally, to satisfy the start-up conditions for the TSEP grant, the City must show that all of
the funds are committed for the project. The other funding source will be an SRF loan. Once
the above decisions are made by the City Council, MMI recommends moving forward with the
SFR.loan commitment agreement. We have a conference call scheduled with representatives
of the SRF program, Great West Engineering (your grant administrator), and City staff to
discuss the SRF loan requirements and procedures for securing this loan. Once the loan
commitment agreement has been executed, the City will have satisfied the TSEP start-up
conditions and can secure the grant money.
Please call if you have any questions. I look forward to answering any questions of you, the
City Council, or staff on the 30th
Sincerely,
WJA46w4l
Carl J. An son, P, E.
VP, Billing Office Manager