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HomeMy WebLinkAbout48-11 RESOLUTIONRESOLUTION NO. 48-11 A RESOLUTION APPROVING AN OUT OF SCOPE AGREEMENT WITH CH2M HILL ENGINEERS, INC. IN THE AMOUNT OF $265,000.00 FOR DEVELOPMENT OF A USE ATTAINABILITY ANALYSIS (UAA) ON THE WHITE RIVER, APPROVING A $50,000.00 CONTINGENCY, AND APPROVING A BUDGET ADJUSTMENT BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby approves an out of scope agreement with CH2M Hill Engineers, Inc. in the amount of $265,000.00 for development of a use attainability analysis (UAA) on the White River. A copy of the agreement is attached as Exhibit "A". Section 2: That the City Council of the City of Fayetteville, Arkansas hereby approves a $50,000.00 contingency. Section 3: That the City Council of the City of Fayetteville, Arkansas hereby approves a budget adjustment, a copy of which is attached as Exhibit "B". PASSED and APPROVED this 15th day of March, 2011. APPROVED: ATTEST: 01440 l/141\) SONDRA E. SMITH, City Clerk/Treasurer 114 SAC.)e o. FAYETTEVILLE: t.N.. eel/i)/le CD."' ."51 * A NS\:•\)$ • .... 0 TC5N %ON% - CH2MHILL. March 4, 2011 Mr. David Jurgens City of Fayetteville 113 West Mountain Street Fayetteville, AR 72701 Subject: Out of Scope Letter Agreement Dear David: CH2M HILL 9193 South Jamaica Street Englewood, CO 80112 Tel 720.286.2000 As agreed upon in our previous discussions, CH2M HILL Engineers, Inc. (CH2M HILL) will provide the following Out of Scope services as per the Operations, Maintenance and Management Agreement dated December 15, 2009, executed between the Parties. What is being provided: • Services, work, and materials necessary to complete a Use Attainability Analysis (UAA) 011 the White River segment that the City of Fayetteville's Paul R. Noland Wastewater Treatment Plant (WWTP) discharges into. • The UAA shall be performed in a manner approved by the Arkansas Department of Environmental Quality (ADEQ), according to a work plan that shall be submitted to ADEQ for approval as one of the initial steps of the process. • The UAAA shall specifically address the current Arkansas water quality standards for minerals, i.e. Chloride, Sulfate, and Total Dissolved Solids (TDS) for the designated uses. • A final report shall be issued on the results of the UAA suitable for submittal to ADEQ and the Arkansas Pollution Control and Ecology Commission. When it is being provided: Services are expected to be initiated in the spring of 2011 and will be completed according to the timeline approved by ADEQ. Price of services: To be billed at CH2M HILL's actual cost plus 18% as per Section 3.2 and Appendix C.1.25 of our Printed on Mohawk Via paper, which is 30% post consumer waste. Estimate of costs: Payment terms: Agreement upon completion of the services. Documentation of actual costs shall be provided with invoices. Estimated at approximately $265,000* Due upon receipt of CH2M HILL's invoice and payable within 30 days as per Section 5.2 of our Agreement. *Note that the City will be alerted immediately if the ADEQ approved work plan or unforeseen weather or other circumstances cause the estimated costs of the project to exceed this number. No work will be performed above this price until such work is approved in writing by the City. All other terms and conditions of the Agreement dated December 15, 2009, as amended November 16, 2010, between CH2M HILL and The City of Fayetteville remain in full force and effect. If these terms are agreeable to you, please sign both copies of this letter. We will return one fully executed original for your files. CH2M HILL appreciates the opportunity to provide these additional services to the City of Fayetteville. S' cerely, Duyen ran Project Manager Both parties indicate their approval of the above-described services by their signature below. Authorized CH2M HILL: Name: Natalie L. Eldredge Senior Vice President Date: 3/ t 3-q- " Authorized City of Fayetteville, Arkansas N . me: Lionnrdan Title: May Date: 0 City of Fayetteville, Arkansas Budget Adjustment Form V11.0222 Budget Year 2011 Division: Utilities Director Department: Utilities Director Request Date 3/15/2011 Adjustment Number BUDGET ADJUSTMENT DESCRIPTION / JUSTIFICATION $400,000 is needed in the White River NPDES UAA and APCEC Action project to Analysis for the White River. $265,000 is needed for an an Out of Scope Agreement with CH2M Hill Engineers, Attainablility Analysis due to the ADEQ currently developing a NPDES permit that solids and minerals. $135,000 is needed to cover additional costs associated with costs for an environmental attorney to file a petition with the APCEC to modify the request that the new NPDES permit be delayed until the analysis process is comp develop a Use Attainablility Inc. to develop the Use will contain limits on total dissolved the project which includes legal water quality standards and lete. Dep ment irector Date Date 24 Fel, if Date -2.1?- 2.0i I Finan [rector Date 3 -I -If Chie ta Date May Date Prepared By: Cheryl Partain Reference: kspringer Budget & Research Use Only Type: A B C General Ledger Date Posted to General Ledger Checked / Verified E Initial Date Initial Date TOTAL BUDGET ADJUSTMENT 400,000 Account Name 400,000 Increase / (Decrease) Project.Sub Account Number Expense Revenue Number Contract services 5400.5700.5315.00 265,000 - liciV . di Of Professional services 5400.5700.5314.00 135,000 //CPT 11 Water line line improvements 5400.5600.5808.00 100,000 10007 1 Water line improvements 5400.5600.5808.00 300,000 01023 1 WAUtiities Project Management Team\White River Stream Restoration Project\Restoration analysis\BAForm_2011_White River use attainablility analysis David Jurgens Submitted By City of Fayetteville Staff Review Form City Council Agenda Items and Contracts, Leases or Agreements 15 -Mar -11 City Council Meeting Date Agenda Items Only Wastewater Treatment Division Action Required: Utilities Department Approval of an Out of Scope Agreement with CH2M Hill Engineers, Inc. for $265,000 to develop a Use Attainability Analysis (UAA) on the White River, and approving a $50,000 contingency, and approving a budget adjustment. $316,000.00 Cost of this request 5400.5100.5328.00 Account Number Project Number Category / Project Budget Wastewater Treatment Program Category / Project Name Wastewater Treatment Funds Used to Date Program / Project Category Name Water/Sewer Remaining Balance Fund Name Budgeted Item Budget Adjustment Attached Depa ent D ector ttorney 4, Date c2-2g- Date 2-18-2.6H Finance and Internal Services Director Date Chief of ff Ma or Date ate )0( Previous Ordinance or Resolution # Original Contract Date: Original Contract Number: 256-09 12/15/2009 2113 Received in City 02-25-11 P03:58 RCVD Clerk's Office \AI Comments: Revised January 15, 2009 ratrille CITY COUNCIL AGENDA MEMO MEETING DATE OF MARCH 15, 2011 THE CITY OF FAYETTEVILLE, ARKANSAS ARKANSAS www.accessfayetteville.org To: Fayetteville City Council Thru: Mayor Lioneld Jordan Don Marr, Chief of Staff From: David Jurgens, Utilities Director Fayetteville Water and Sewer Co Date: February 25, 2011 Subject: Out of Scope Agreement, CH2M Hill Engineers, for $265,000 for a White River Use Attainability Analysis RECOMMENDATION Staff recommends approving an Out of Scope Agreement with CH2M Hill Engineers, Inc. for $265,000 to develop a Use Attainability Analysis (UAA) for the White River, and approving a $50,000 contingency, and a budget adjustment. BACKGROUND ADEQ has informed the City that the Noland WWTF National Pollutant Discharge Elimination System (NPDES) pennit, currently being developed by ADEQ and scheduled for issuance in May, 2011, will contain limits on total dissolved solids (TDS), and minerals, specifically chloride (co, and sulfate (SO4=), unless other actions are taken. The segment of the White River where the Noland plant discharges is on the 303(d) impaired streams list for turbidity, TDS, CY, and SO4. Concentrations measured in the White River exceeded the current site specific water quality standards (WQS) of: CF -20 mg/1; Sal -20 mg/1; and TDS -160mg/l. The least cost and most common solution, recommended by ADEQ and successfully completed by Jonesboro (the only other City to have fully faces this issue), is to make a third party petition to the Arkansas Pollution Control and Ecology Commission (APCEC) requesting an amendment to Regulation 2 modifying the site specific water quality standard. It involves performing a Use Attainability Analysis (UAA), which evaluates aspects of the river with respect to the designated uses of the stream. The White River has designated uses of aquatic life and drinking water. The latter has the water quality standards ofCl - 250 mg/1; SO4= - 250 mg/1; and TDS - 500mg/l. The UAA may take a full year or more to complete before the petition to modify the water quality standards can be submitted to the APCEC, and the APCEC may take another year to make a determination. We are also requesting the new NPDES permit be delayed until this process is complete. DISCUSSION There are three companies, CH2M Hill, FTN Associates, and GBMe & Associates, who are leaders in performing UAAs. The attached agreement represents a partnership with CH2M Hill as the lead and FTN in a supporting role. This team presents the optimum combination of experience, capability for quick, responsive action, and familiarity with the White River conditions, to complete this project as quickly as possible. This type out of scope agreement is allowed for within our existing contract with CH2M Hill. As soon as this contract is executed, CH2M Hill will submit a draft schedule for the UAA to ADEQ for approval. That will determine the schedule of work to follow. BUDGET IMPACT Funds are proposed to be reduced from two other approved water/sewer projects to fund this new project, as shown in the attached budget adjustment. The budget adjustment is large enough that it is expected to cover this agreement, the expected contract with the environmental attorney to file the petition with the APCEC, with a contingency. Noland NPDES OMI 00S CCMemoFebl 1 .doc RESOLUTION NO. A RESOLUTION APPROVING AN OUT OF SCOPE AGREEMENT WITH CH2M HILL ENGINEERS, INC. IN THE AMOUNT OF $265,000.00 FOR DEVELOPMENT OF A USE ATTAINABILITY ANALYSIS (UAA) ON THE WHITE RIVER, APPROVING A $50,000.00 CONTINGENCY, AND APPROVING A BUDGET ADJUSTMENT BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby approves an out of scope agreement with CH2M Hill Engineers, Inc. in the amount of $265,000.00 for development of a use attainability analysis (UAA) on the White River. A copy of the agreement is attached as Exhibit "A". Section 2: That the City Council of the City of Fayetteville, Arkansas hereby approves a $50,000.00 contingency. Section 3: That the City Council of the City of Fayetteville, Arkansas hereby approves a budget adjustment, a copy of which is attached as Exhibit "B". PASSED and APPROVED this 15th day of March, 2011. APPROVED: ATTEST: By: By: LIONELD JORDAN, Mayor SONDRA E. SMITH, City Clerk/Treasurer ayttevtlle ARKANSAS www.accessfayetteville.org To: Fayetteville City Council Thru: Mayor Lioneld Jordan Don Marr, Chief of Staff From: David Jurgens, Utilities Director Fayetteville Water and Sewer Co Date: February 25, 2011 THE CITY OF FAYETTEVILLE, ARKANSAS UTILITIES DEPARTMENT 113 West Mountain Fayetteville, AR 72701 P (479) 575-8330 F (479)575-8257 Subject: Information Paper -Noland Wastewater Treatment Facility NPDES Permitting Issues Relating to Total Dissolved Solids, Chloride, and Sulfate SITUATION ADEQ has informed the City that the Noland WWTF National Pollutant Discharge Elimination System (NPDES) permit, currently being developed by ADEQ and scheduled for final issuance in May, 2011, will contain limits on total dissolved solids (TDS) and minerals, specifically chloride (co, and sulfate (SO4-), unless other actions are taken. The segment of the White River where the Noland plant discharges is on the 303(d) impaired streams list for turbidity (sediment), TDS, Cr, and Sat-. Concentrations measured in the White River both above and below the Noland WWTF discharge exceeded the current site specific water quality standards (WQS) of: cr -20 mg/1; SO4- -20 mg/1; and TDS -160mg/1. According to ADEQ representatives, no point source dischargers are allowed to cause or contribute to an identified impairment. Because the reach of the river where the Noland WWTF effluent discharges (Reach 23) is on the 303(d) list, Noland's effluent, which does contain TDS, Cr, and SO4=, is subjected to the site specific WQS set for the White River. Any discharge at concentrations above the water quality standards is deemed to contribute to the impairment. As a result, if our NPDES permit were issued today, these same concentrations would become NPDES permit limits. Jonesboro and Huntsville have recently faced this issue same issue. ALTERNATIVES Fayetteville and CH2M HILL staff met with ADEQ staff at 2:00, January 26, 2011, to discuss alternatives. ADEQ staff included Ryan Benefield, Steve Drown, Mo Shaffi, Marysia Jastrzebski, John Bailey, and Kim Fuller. City representatives included David Jurgens, Dr. Robert Blanz, P.E., PhD, Billy Ammons, and Duyen Tran. Based on the discussion and the recommendations from ADEQ, Fayetteville has several courses of action. These are not all mutually exclusive; some may be considered in combination. 1. Change the site specific water quality standards. This requires a third party petition to the Arkansas Pollution Control and Ecology Commission (APCEC) requesting an amendment to Regulation 2. It involves performing a Use Attainability Analysis (UAA), which evaluates aspects of the river with respect to the designated uses of the waterway. Designated uses for the White River are aquatic life and drinking water. Aquatic life water quality standards are variable, but as a minimum the drinking water standards of cr - 250 mg/1; SO4= - 250 mg/1; and TDS - 500mg/1 would apply. Modifying the site specific water quality standard is the most common approach and was recommended by ADEQ in the January 26 meeting. This is the method Jonesboro selected to address the same issue. The UAA may take a full year or more to complete before the petition to modify the water quality standards can be submitted to the APCEC for consideration, and the Page 1 of 4 Noland NPDES Permit Info Mem 28Feb I I.doc APCEC may take another year to make a determination. Simultaneously, we should use every means to get issuance of the new permit delayed. ADEQ staff at the meeting expressed great reluctance to grant an extension, for fear of setting a precedent. Huntsville exerted significant political influence through the City, legislative attention, and the Poultry Federation. As a result, Huntsville received a three year permit that includes monitoring requirements, but no discharge limits, for cr, SO4=, and TDS. This was very unusual, and is not available for Fayetteville because we are major discharger. Additionally, this did not solve Huntsville's problem- it simply delayed the final conclusion. Historically, once monitoring begins, discharge limits almost always follow. Thus, Huntsville can expect limits on minerals and TDS when their next permit is issued. 2. Eliminate the source of the TDS and minerals in the stream that are causing the water quality standards to be exceeded. The West Fork of the White River shows impairment upstream from the City's outfall. The Middle and main forks of the White River do not. ADEQ representatives have stated that concentrations of minerals were not an issue until 2004, when a significant increase in TDS and minerals was observed. These higher concentrations have remained since, indicating a long term change in conditions. Staff is obtaining and reviewing the data to further identify exactly when the change occurred. Eliminating the source of this change, and thereby eliminating the source of the minerals, is a hit-or-miss proposition, as a preliminary review has not indicated any potential source for such a change. It may be induced by human action, or may be caused by natural phenomena. The only potential cause identified thus far is the major flood that occurred on April 23-24, 2004. The City of West Fork WWTF is the only other permitted point source upstream; its flow volume is comparatively minor and is extremely unlikely to be the source. Positively identifying the source will take comprehensive stream sampling, and will probably prove unsuccessful no matter how much effort is applied. This alternative should be investigated, but cannot be relied upon as a sole solution to the permitting problem. 3. Do nothing to change the standards. This alternative creates two sub -choices: a. Upgrade the WWTF to meet the new permit limits. This will result in an approximate $45 million (very preliminary estimate) initial capital and $2 million increased annual operational cost for treatment, which could approach a present worth value of $100 million over the life of the Noland facility. b. Do not upgrade the WWTF, and accept not meeting the permit requirements. This will result in fines from ADEQ which would be levied as soon as the new limits take affect (this was made clear in the January 26 meeting). 4. Change the state-wide water quality standards. Several cities in Arkansas have faced this issue in recent years, and it will become more common in future permits. As a result, ADEQ representatives agree that there is significant benefit to changing these water quality criteria on a state-wide basis. This process would likely take at least 3 — 5 years, if it would be successful at all. It is also very expensive, and according to the ADEQ officials in our meeting is not currently feasible for ADEQ. This is the best long-term solution, but will not solve the issue for Fayetteville. 5. Invoke legislative action to allow or force ADEQ to address the Regulation. This is a state-wide problem that will impact multiple municipal and other dischargers. As every ADEQ representative agreed, this is not an environmental impact issue but a regulatory one that they are required to enforce. These constituents have no negative impact on the environment at the levels cited in the Regulation, but changes in the White River flow and the low flows experienced in 2007 have caused this to become a permitting issue. ADEQ stated they are unwilling to address the problem on a state-wide basis due to lack of funding and manpower to do so. It will take legislative action to change this position. If no state-wide action is taken by ADEQ, then the responsibility is placed directly on each permitted discharger, who then must invest in a $300k - $400 study to make a third party rule change. Any legislative change may help other NPDES permit holders, but cannot occur in time to help with Fayetteville's situation. Page 2 of 4 Noland NPDES Permit Info Mem 28Febl I.doc 6. Partner with West Fork, as the only other NPDES permitted facility on the White River upstream of Beaver Lake. Their NPDES permit expires in 2012. If the ADEQ approach remains unchanged, they will face the same problem. This would require two to four additional sampling sites on the West Fork, but otherwise would not add significant work to the process. West Fork staff is evaluating, and we are executing our initial work so they could join in and cost share on the study and petition. RECOMMENDATION As soon as possible, initiate a plan to conduct a UAA. Send the plan to ADEQ for review, comment, and (if they will grant such) approval. Start the UAA soon enough that we catch the spring conditions this year. Request a two year extension of our existing permit from ADEQ while we undergo the study and submit the WQS standards change request to the APCEC. Select and hire an attorney specializing in environmental law to submit the request to the APCEC. Structure our initial work such that West Fork can participate allowing for them to cover their portion of the expense. BACKGROUND and ADDITIONAL INFORMATION All attendees in the January 26 meeting agreed these standards are not reasonable for wastewater, and there is no scientific evidence that we know of suggesting that minerals and TDS in the concentrations present in either the river or the wastewater effluent cause harm or degradation to aquatic life or other aspects of the environment. We are not aware of another NPDES permit in Arkansas that currently has discharge limits on these parameters, although Jonesboro and Huntsville have had to address the issue. Most states do not appear to have any type of water quality standard for these minerals and ADEQ admitted that the standards as they currently exist provide no known benefit to the environment. ADEQ further acknowledged that the standards themselves should be changed but insisted that they had neither time nor resources to perform that action. The standards were introduced into the state-wide regulations by ADEQ in the late 1970's, based on a study conducted at that time. That study cannot now be found. Thus, they cannot find the reason these standards were first identified- neither for the entire state nor for the White River. Additionally, there are different impaired water body uses for the White River in the 303(d) list in the 2004, 2006, 2008, and (draft) 2010 publications, but ADEQ staff has not identified the reasons for these changes. It is, they agreed, possible that these numbers, and the resulting inclusion on the 303(d) list, are the result of an error. However, now that the numbers are in the Regulation, they must be either be followed or formally changed. As a point of comparison, the proposed limits are much stricter than the recommended standards for finished drinking water, which has recommended (but not required) standards shown in the table below. The City has never monitored our effluent for these items. There was never a reason to. Preliminary monitoring, conducted since the issue was brought to our attention, indicates our effluent, at that time, contained the concentrations shown below. The BWD drinking water concentrations are shown as well. Constituent White River Limit Noland Effluent 2 (Jan 2011) Drinking . . I Water Llirnt BWD 2009 Actual Chloride 20 Average 40.5 range 38.2 - 44.3 250 9 Sulfate 20 Average 57.1 range 37.3 - 61.4 250 27.6 Total Dissolved Solids 160 Average 458, range 397 - 680 500 95 1 These are aesthetic standards recommended by USEPA and ADH for drinking water; they are not mandatory. 2 These are samples taken in January, 2011. These could change drastically for different seasons, influent changes, and treatment process changes. Page 3 of 4 Noland NPDES Penult Info Mem 28Febl I.doc 3O3(d List Summarv 303(d) Year Stream Reach for Which City Impairment Impaired Use Reason 2002 West Fork, Fayetteville None N/A N/A 2004 West Fork TDS, SO4- Agriculture & Industry Road const & agriculture 2004 Fayetteville TDS, cr, s04- Agriculture & Industry Road const & agriculture 2006 West Fork TDS, SO4- Agriculture & Industry Unknown 2006 Fayetteville TDS, cr, SO4- Agriculture & Industry Unknown 2008 West Fork TDS, SO4- Agriculture & Industry Unknown 2008 Fayetteville TDS, cr, s04- Agriculture & Industry Unknown 2010 West Fork TDS, SO4- Agriculture & Industry Unknown 2010 Fayetteville TDS, cr, so4- None Listed, verbally Aquatic Life (Fisheries) Unknown Page 4 of 4 Noland NPDES Permit Info Mem 28Febl 1.doc February 28,2011 Mr. David Jurgens City of Fayetteville 113 West Mountain Street Fayetteville, AR 72701 Subject: Out of Scope Letter Agreement Dear David: CH2M HILL 9193 South Jamaica Street Englewood, CO 80112 Tel 720.286.2000 As agreed upon in our previous discussions, CH2M HILL Engineers, Inc. (CH2M HILL) will provide the following Out of Scope services as per the Operations, Maintenance and Management Agreement dated December 15, 2009, executed between the Parties. What is being provided: • Services, work, and materials necessary to complete a Use Attainability Analysis (UAA) on the White River segment that the City of Fayetteville's Paul R Noland Wastewater Treatment Plant (WWTP) discharges into. • The UAA shall be performed in a manner approved by the Arkansas Department of Environmental Quality (ADEQ), according to a work plan that shall be submitted to ADEQ for approval as one of the initial steps of the process. • The UAAA shall specifically address the current Arkansas water quality standards for minerals, i.e. Chloride, Sulfate, and Total Dissolved Solids (TDS) for the designated uses. • A final report shall be issued on the results of the UAA suitable for submittal to ADEQ and the Arkansas Pollution Control and Ecology Commission. When it is being provided: Services are expected to be initiated in the spring of 2011 and will be completed according to the timeline approved by ADEQ. tiol Printed on Mohawk Via paper, which is 30% post consumer waste. Price of services: Estimate of costs: Payment terms: To be billed at CH2M H1LL's actual cost plus 18% as per Section 3.2 and Appendix C.1.25 of our Agreement upon completion of the services. Documentation of actual costs shall be provided with invoices. Estimated at approximately $265,000* Due upon receipt of OMI's invoice and payable within 30 days as per Section 5.2 of our Agreement. *Note that the City will be alerted immediately if the ADEQ approved work plan or unforeseen weather or other circumstances cause the estimated costs of the project to exceed this number. No work will be performed above this price until such work is approved in writing by the City. Al! other terms and conditions of the Agreement dated December 15, 2009, as amended November 16, 2010, between CH2M HILL and The City of Fayetteville remain in full force and effect. If these terms are agreeable to you, please sign both copies of this letter. We will return one fully executed original for your files. CH2M HILL appreciates the opportunity to provide these additional services to the City of Fayetteville. Sincerely, Duyen Tran Project Manager Both parties indicate their approval of the above-described services by their signature below. Authorized CH2M HILL: Authorized City of Fayetteville, Arkansas Name: Natalie L. Eldredge Name: Lionel Jordan Title: Vice President Title: Mayor Date: Date: