TO: Governing Board of the Lake Berryessa Resort Improvement District
FROM: Christopher M. Silke, District Engineer
REPORT BY: Christopher M. Silke, District Engineer
SUBJECT: Grant Subaward for Water & Wastewater Infrastructure Projects
RECOMMENDATION
title
District Engineer requests approval of the following actions related to American Rescue Plan Act (ARPA) grant funding:
1. Approval of and authorization for the District Engineer to sign an Agreement with the Lake Berryessa Resort Improvement District for the term February 8, 2022 to December 31, 2026 for a maximum of $1,350,000 to finance critical water and wastewater infrastructure projects;
2. Approval to create Capital Improvement Projects in Lake Berryessa Resort Improvement District budget for Water Treatment Plant Upgrades (Fund 5220, Organization 5220500, Project 22013), Lift Station A Sewer Tank Replacement (Fund 5220, Organization 5220500, Project 22014), Water Treatment Plant Generator Replacement (Fund 5220, Organization 5220500, Project 22015) and SCADA System Updates (Fund 5220, Organization 5220500, Project 22016) (4/5 vote required); and
3. Approval of Budget Transfer for the following increasing appropriations by $150,000 for Water Treatment Plant Upgrades project budget (Project 22013), $800,000 for Lift Station A Sewer Tank Replacement project budget (Project 22014), $100,000 for Water Treatment Plant Generator Replacement project budget (Project 22015) and $300,000 for SCADA System Updates project budget (Project 22016) offset by transfer in from COVID-19 ARPA budget. (4/5 vote required)
body
EXECUTIVE SUMMARY
Federal financial assistance for the Covid-19 pandemic and economic stimulus was approved the legislative branch and signed into law by the President in March 2021. The bill contained funding provisions to support public water and sewer utility capital improvement projects. The District has identified four (4) capital improvement projects at water treatment plant and sewer collection facilities essential to maintaining compliance with operating permits. Upgrades to the water treatment plant will replace air compressors, a refrigerated dryer, process piping and supports. The 91,000-gallon bolted steel sewer equalization tank at Lift Station A is approaching 20 years in service. Pit corrosion around the wall perimeter has become extensive the past two years. A Supervisory Control and Data Acquisition (SCADA) that monitors and controls automated operations of the utilities has outdated hardware and software. A 200 kW standby generator has over 2,000 run-time hours providing power during storm, wildfire & PSPS outages. The diesel engine is showing signs of stress and nearing the end of its useful life cycle. Larger load capacity generators are nearly one year from date of order. Project funds would replace the unit in late fall 2022 after rainfall ends PG&E PSPS events. All of the planned wastewater projects conform to ARPA eligibility criteria.
FISCAL & STRATEGIC PLAN IMPACT
|
Is there a Fiscal Impact? |
Yes |
|
Is it currently budgeted? |
No |
|
Where is it budgeted? |
The items are not currently budgeted. Approval of the budget transfer will establish appropriations totaling $1,350,000 for four (4) water and wastewater projects with offsetting revenue from the ARPA Grant. |
|
Is it Mandatory or Discretionary? |
Discretionary |
|
Discretionary Justification: |
Short-lived fixed utility assets are at the end of their life cycle. Compressed air equipment and piping is vital to the membrane filtration process. Lift Station A sewer tank is corroding at an accelerated rate from hydrogen sulfide gas. SCADA computer system and network is obsolete. Alarm alerts are not communicated regularly over AT&T T-1 lines. Reliable standby power to maintain operations at the water treatment plant and convey sanitary sewer flows is essential to permit compliance. |
|
Is the general fund affected? |
No |
|
Future fiscal impact: |
Grant funding must be expended by 2026. Staff will include the project in recommended annual budgets until they are completed. |
|
Consequences if not approved: |
Increased risk of sewer spills into the environment. Central Valley Regional Water Quality Control Board could take enforcement action and impose penalties. Potable water delivery and public fire protection could be compromised. |
|
County Strategic Plan pillar addressed: |
Healthy, Safe, and Welcoming Place to Live, Work, and Visit |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: This activity is categorically exempt from CEQA as the repair or maintenance of existing facilities involving negligible or no expansion of existing or former use, pursuant to CEQA Guidelines section 15301.
BACKGROUND AND DISCUSSION
The President authorized the American Rescue Plan Act (ARPA) in March 2021 to allocate $1.9 trillion in stimulus monies across a variety of programs. Of the total, $350 billion is allocated to state, local, territorial and Tribal governments to enable them to continue to support the public health response and to lay the foundation for a strong and equitable economic recovery. The U.S. Department of the Treasury released Final Interim Rule regulations on May 10, 2021 defining eligible use of ARPA monies that includes investments into water and sewer utility infrastructure. Local Fiscal Recovery (LFR) funds must be obligated by December 31, 2024 with projects completed no later than December 31, 2026. The County of Napa has received $26,755,157 for ARPA appropriations.
According to Final Rule guidelines water and sewer utility projects that would qualify for funding under the Safe Drinking Water and Clean Water Act Programs are deemed as eligible under ARPA. The District has three (3) high priority sewer projects that satisfy ARPA and CWSRF funding criteria. Listed below are the project titles, description, scope of work and proposed budgets:
1. Water Treatment Plant Upgrades - Demolish and replace process air compressors, refrigerated air dryer, add cross-flow ventilation, small pipe, metal door, protective coatings. Move chemicals to outdoor storage. Construct process upgrades per plans and specifications. Project budget - $150,000.
2. Sewer Lift Station A Tank Demolition and Replacement - Coatings on the tank interior are deteriorating rapidly with pit corrosion emerging through steel wall panels in the past year. Seep stains are evident on the outside surfaces when the tank has filled. The metal roof dome is exhibiting corrosion attack from sewer gases. Replace bolted steel tank with reinforced concrete structure or similar steel tank of equal storage capacity. A new tank is critical to prevent raw sewerage spills into nearby Putah Creek prompting regulatory enforcement action by Central Valley Regional Water Quality Control Board. Solicit Engineering Consultant RFP for design, bid and construction administration professional services. Prepare plans and specifications to bid the construction and demolition work. File CEQA Notice of Determination Form and Supplements with Napa County PBES. Record Notice of Categorical Exemption, Class 1, Section 15301. Construct, inspect, hydrostatic test and activate new wastewater tank. Project budget - $800,000.
3. SCADA System Updates - Over the past ten (10) years pump stations, treatment and water storage tanks have been integrated into the Rockwell Factory Talk Human Machine Interface (HMI) platform. While functional, the older generation HMI software does not provide advanced level of automation, remote control, alarm alerts, sufficient network speed, trend charts and dependability needed by the District in a more stringent regulatory environment. New mobile SCADA platforms will feature remote access to the SCADA terminal during wildfires and winter storms when AT&T landlines are experiencing outages. Drinking water, clean water, environmental and regulatory permit compliance are integral to real-time data retention and reports. Project budget - $300,000.
4. Water Treatment Plant Standby Generator Replacement - The existing generator provides emergency power to the water treatment plant and associated pump operations, as well as to the District’s central sewer lift station (Station A) and one ancillary lift station (Station E). Standby power at this location is essential to maintaining both water and sewer service during scheduled PG&E Public Safety Power Shutdowns, emergencies (e.g. wildfires and storms), or when PG&E power is unstable. Project budget - $100,000.
District Engineer requests approval for ARPA appropriations and budget transfers to support project expenses. This item is contingent upon approval of Board of Supervisor’s Item 11A which includes the corresponding Transfer Out of ARPA funds.