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HomeMy WebLinkAbout12/05/94COUNCIL WORK SESSION December 5, 1994 3:30 p.m. Large Conference Room Members present: Mayor Rooff, Jordan, Krizek, Mollenhoff, Anders, Murphy, Getty. Members absent: Collier. Moved by Krizek, seconded by Anders that the Agenda, as proposed, be approved. Ayes: Four. Absent: Murphy, Getty, Collier. Motion carried. Mayor Rooff distributed and reviewed correspondence from Eagle Tanning Company expressing their reservations and concerns about the proposed expansion plan and funding requirements. Representatives from Eagle Tanning informed the members of the council that they have been involved in the design process but feel that the City needs to identify cost allocation formulas for the major industries before proceeding any further. James Walsh, City Attorney, identified three problems that are affecting the expansion plans. The problems encompass political problems in providing the best system for the taxpayers, engineering problems in attaining the best design and legal problems in assuring compliance with EPA guidelines and timelines. The cost allocation factor has been affected by a new set of standards that EPA has implemented and the City is basing the allocation factor on costs being shared equitably. Representatives from Eagle Tanning stated that their company needs to expand globally and one option is to increase the production at the Waterloo site. This could be a two step process with the first step increasing dry jobs and the second step causing a small increase to the wastewater treatment process. ETC needs some indication of cost allocation to enable their main office to analyze the profitability of increasing production in Waterloo. Councilperson Anders asked if the pretreatment process on site at ETC had been settled. ETC stated that pretreatment is still a negotiable item and they are willing to discuss the issue in conjunction with cost allocation; however, no settlement has been reached on who will be paying for the process. Jim Walsh stated that cost estimates should be available after the first of the year. Bob Bamsey, RUST Environment and Infrastructure, reviewed the priority list that had been created for the improvements to the Water Pollution Control Plant. The priority list hasn't been endorsed formally and the cost estimates include contingencies for legal and engineering services. Councilperson Anders expressed his concern with the estimated cost for completion of all items on the list exceeding 87 Million dollars. Jim Hagley, RUST, explained that cost savings in Phase I, that have been accomplished through the partnering process and engineering changes, are not reflected at this time so the list needs to be updated to be more representative of the proposed improvements. Schematic charts of the existing flow system, initial Phase I and Phase II designs and the proposed Expanded Phase I design were presented. Expanded Phase I will provide the same industrial capacity as the combination of Phase I and Phase II when completed. After completion of expanded Phase I the current industrial users will be using 60% of the maximum wastestream capacity. Councilperson Anders reported that the partnering group has committed to building a state of the art facility and the group aggressively evaluates and recommends changes to help the project proceed more cost effectively. The advantages of using the expanded phase I design include the improved economic impact on the total operation, a more flexible system to operate and potential use of the excess capacity as a revenue source through the transportation of excess waste from other facilities. Councilperson Krizek asked for a clarification of the impact of the Council Work Session December 5, 1994 Page 2 design change on meeting the required timelines for the EPA. Bob Bamsey, RUST, concluded that the required timelines in 1998 could be met and savings realized if the decision for the design of expanded phase I can be confirmed. Bob Bamsey, RUST, identified the items in Phase I which have been let, those items that have been designed and those items which have been approved for study. Staff provided the opinion that the DNR would support the design of expanded phase I to increase capacity otherwise permits for additional loadings would be difficult to get from the DNR. Councilperson Anders inquired which items in phase I are critical to compliance with the DNR orders. It was reported to the council that in the summary of Phase I projects, the completion of the satellite facility and the force main are critical on the industrial side and the flow equalization basin is critical to the domestic side. The gas main and co -generation are not required for compliance but are money saving units that are intended to provide power for operation of the plant. An Exxon grant has been received to study the cost effectiveness of co- generation. There is a possibility of additional funding for the design and construction of this project also. Further discussion of the flow equalization basin concerned the need to allow flow to be held during peak times in wet weather. Contributing factors to peak periods are the number of combined sanitary and storm sewer systems and the number of footing drains infiltrating the system. The construction of a flow equalization basin will allow the flow rate to be stabilized and prevent bypassing of the system. It was recommended that the partnering group discuss the design of the flow equalization basin and bring a recommendation back to the council for action. With no further discussion, it was moved by Krizek, seconded by Murphy that the meeting be adjourned at 5:20 p.m. Ayes: Six. Absent: Collier. Motion carried. Susan Fangman City Clerk