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Home My Public Portal About3/09/2000 jointCity ®f Greencastle City Hall ® Four East Walnut Street Greencastle, Indiana 46135 Pamela S. Jones Clerk - Treasurer GREENCASTLE CORIMON COIiNCIL AND BOARD OF WORKS JOINT SESSION THURSDAY, MARCH 9, 2000 6:30 P.M. WATER PLANT The Greencastle Common Council and Board of Works met in Joint Session, Thursday, March 9, 2000, 6:30 p.m. at the Water Plant. Mayor Michael called the meeting to Order. On the Roll Call, the following were found to be present: Councilor Roach, Councilor Hammer, Councilor Crampton, Councilor Parrish and Councilor Rokicki. Board of Works members present were Sue Murray and George Murphey. Also present was: City Attorney Laurie Robertson, Mike Cline and Dick Weigel with Hannum, Wagle and Cline, Ted Sommers and Jim Higgins from London - Witte Group, Dave Arrensen with Baker and Daniels, and Matt Rueff, Larry Lazart and Bruno Pigott from IDEM. Mayor Michael stated the purpose of this meeting is to update the Council and Board of Works on the Wastewater Treatment Proj ect and SRF Funding. ® Jim Higgins from London -Witte Group, summarized information from the State Budget Agency on SRF funding stating that after June 30, 2000, the 2 years period of deferred interest will no longer be available. It is in the best interest of all, if possible, to close on the SRF funding prior to June 30th. Mike Cline of Hannum, Wagle and Cline, distributed a handout for City of Greencastle Wastewater System Upgrade March, 2000 Update, which is attached and made a part of these minutes. This handout summarizes the current situation, proposed project description including Wastewater Treatment Plant, Southside Interceptor and Sewer Rehabilitation; History of IDEM issues; Financing Issues and Project Schedule. Mr. Cline explained the City has separate sanitary and stone sewers and, therefore, is not allowed to bypass. Rain induced inflow from the storm sewers is what causes most of the bypassing. Mr. Cline further stated their goal, as engineers, is to resolve the issues at hand in the most economical rate and allow growth for the City. There is a three prong solution: New Wasterwater Treatment Plant Southside Interceptor Sewer Rehabilitation The new Wastewater Treatment Plant will be a Vertical Loop Reactor which is designed for 2.8 mgd in dry weather and peaks at 16 mgd. The current plant capacity is 1.8 mad in dry weather and peaks at 2.5 - 3.5 mgd. The old plant will be used for bio- solids along with equalization as needed. The new plant will be built to allow for expansion up to 4.8 mgd in dry weather and peaks at 20 mgd plus. ` °- The Southside Interceptor is the second solution to the problem. This project will enlarge the 3 Foxridge liftstation with gravity flow to the liftstation and then either a force main or gravity flow to Columbia Street. 4k he third solution is a long-term series of sewer rehabilitation which will take approximately ten years to solve inflow and infiltration problems. The City has a history of IDEM issues, which were outlined by Mr. Cline stating these issues have concluded with the City being on an early sewer ban. Mr. Cline further explained the "early sewer ban" stating if there is already a lateral line in place the sewer can be extended with a local permit, but if a new line has to be put in place the State will review on a case by case basis. Financial Considerations was the next item to be discussed. Mr. Cline explained the City has submitted an application for SRF fund which offers an interest rate of 2.9% with the first two years interest free. The interest free rule will expire June 30, 2000. The City originally wanted to close on funding after bids were taken, but with the expiration of the interest free rates, the City must consider closing on SRF funding using the $12 million figure. Mr. Cline stated the City can do some advanced purchasing on some of the equipment which will eliminate some of the variables in pricing and also allows the City to pick the equipment they want instead of what the contractor wants to install. Jim Higgins, London Witte Group, stated the rate study is complete with a three -tier structure in place and the due diligence is 90% complete with completion expected within 10 days to two •weeks. Dave Arrensen, Baker and Daniels, stated the rates are in place, the City Council will have second reading of the Bond Ordinance that includes the $12 million figure at the March 14 meeting. Closing can take place 35 days after the Ordinance is adopted provided the following is done: Notice to local paper; and 20 day remonstrance period is satisfied. Pre - closing can take place after 20 days. Matt Rueff, IDEM, submitted the approved Environmental Assessment and stated the 30 day clock is ticking and will be complete April 10th. Being no further business, Councilor Crampton made the motion to adjourn, seconded by Councilor Roach. Vote was unanimous. ATT T:' _ p Pamela S. Jones • Clerk- Treasurer <� Nancy A. lichael, Mavor City of Greencastle Waste atcr S37Ster, March, 2000 Update a Current Situation e. Proposed Project Description 0 Wastewater Treatment Plant Southside Interceptor Sewer Rehabilitation ® History of IDEM Issues o Financing Issues o. Project Schedule 0 City of Greencastle BRAN ' U M CLNNE ENGINFt RTNTG E 1] City Of Greencastle Wastewater System Upgrade March, 2000 Update 0 Problem Summary 0 Proposed Project Description Wastewater Treatment Plant Southside Interceptor Sewer Rehabilitation 0 IDEM Compliance Issues 0 Financing Issues 0 Project Schedule 0 City Of Greencastle Wastewater System Upgrade ® March, 2000 Update Problem Summary WWTF is at 96% of its rated capacity. This has resulted in the City being placed on "early sewer ban warning" status since 2/99. m There are many separate sanitary sewer overflows (SSO's) in the system and at the treatment plant. No SSO's are permitted by IDEM Standards. o Components of the treatment plant date back to the 1930's. The plant has been expanded in capacity on at least 3 occasions since that time and significant hydraulic limitations currently exist. The plant cannot be expanded again by any economical or treatability standard. ® The City continues to experience residential, commercial, institutional and industrial growth. Much of this growth is on the opposite side of the City as the treatment plant. The collection system in between is at capacity during wet weather events. ® The early sewer ban warning status has recently resulted in several sewer construction permit applications for new commercial development being disallowed by IDEM. o The City and IDEM has entered into an Agreed Order agreement that included initial fines and stipulated penalties if certain milestone event dates are not met. ® Financing conditions may change if loan is not closed on /before June 30, 2000. E City Of Greencastle Wastewater System Upgrade • March, 2000 Update Current Situation ® NVWTF is at 85% of its rated capacity. This results in the City being placed on "early sewer ban warning" status since 2/99'. o The City is classified as a 100% separate sanitary sewer system. Currently, the City experiences sewer system overflows and plant bypasses during wet weather conditions. No bypasses or overflows are permitted by IDEM Standards. o Components of the treatment plant date back to the 1930's. The plant has been expanded in capacity on at least 3 occasions since that time and significant hydraulic limitations currently exist. The plant cannot be expanded again by any economical or treatability standard. • The City continues to experience residential, commercial, institutional and industrial growth. Much of this growth is occurring on the east and southern side of the City which • is on the opposite side of the City as the treatment plant. • The early sewer ban warning status has recently resulted in several sewer construction permit applications for new commercial development being disallowed by IDEM. (1 1- ` I • The City and IDEM has entered into an Agreed Order agreement that included initial fines and stipulated penalties if certain milestone event dates are not met. o Financing conditions may change if loan is not closed on /before June 30, 2000. • City Of Greencastle Wastewater System Upgrade 0 March, 2000 Update History of IDEM Issues 0 7/97 - IDEM Compliance Evaluation Inspection report implies that IDEM was unaware of an existing bypass point in front of Treatment Plant and questions why bypassing occurs before plant reaches peak flow capacity. ® 12/97 - City meets with IDEM to discuss C.E.I. IDEM requests new flow meter downstream of bypass point be installed. Bypass reporting discussed. ® 3/98 - Follow -up IDEM inspection at plant. Bypassing issue raised again along with sludge storage problem and filter problems. City responds 6/98. 0 7/98 - Bypass /total flow meter installed. 0 8/98 - City receives Notice of Violation from IDEM. Sites bypassing lack of sufficient sludge storage and minor operational issues. IDEM draft Agreed Order sent to City. Initial penalty amount is $17,500.00. 0 9/98 - City meets with IDEM and starts Agreed Order process. Initial fine amount ® discussed. Penalty reduced to $8,750.00. 0 12/98 - Second draft Agreed Order submitted. 0 2/99 - City notified of early sewer ban warning status. 0 3/99 - City hires Baker & Daniels to assist in Agreed Order review. 0 7/99 - Several construction permits for commercial /residential developments (Dixie Chopper, Park East Subdivision, Magic Grill, etc) turned down by IDEM permits staff due to sewer ban warning status. New sewer connection permit rules issued by IDEM. 0 8/11/99 - Final Agreed Order in place. City pays fine. 0 8/31/99 - Compliance Plan completed and submitted as part of Agreed Order requirements. 0 9/99 - City meets with IDEM to start discussion on how to allow development to occur while $12,000,000 project is being completed. (Response to 7/99 permit denials). 10/13/99 - IDEM approves 5 month extension to start /finish construction dates in Agreed Order. Extension due to PER/EA review process. ® 0 12/99 - IDEM and City concur that an amendment to the Agreed Order designed to allow City credit for I/I reduction with sewer rehabilitation work. 0 1/00 - City follow -up meeting with IDEM to discuss Amended Order. 0 2/10/00 -City receives draft Agreed'Order amendment from IDEM staff. 0 2/11/00 -City calls IDEM with questions on minor points with Amended Order and is told concept of Amended Order is now out. City told to request variances on previously denied permits and to follow new sewer connection permits and to follow new sewer connection permit rules for any future connection. 0 2/16/00 - City sends in Variance Request letter. 0 2/21/00 - IDEM rejects Variance letter. New letter to include language on stating anticipated impact on humans health and environment, etc. 0 2/24/00 - City meets with IDEM in Susan Crosby's office to voice concern over process. • City Of Greencastle Wastewater System Upgrade • March, 2000 Update Financial Considerations 0 9/98 - City submits application form to finance project through the State Revolving Fund (SRF) program. The SRF program offers a low interest loan (2.9% for 20 years with the first two years interest free) which saves the City approximately $4.5 million over the life of the loan. The SRF program does include planning requirements and significant cost /eligibility review requirements through all phases of the project that conventional bond financing does not. • The City cannot close on its SRF Loan until the Preliminary Engineering Report and Rate Study are approved by IDEM, per State Budget Agency requirements. The law creating the SRF Program funding, interest rate level and two -year interest free rules expires June 30, 2000. Originally, the City wished to hold off closing on the SRF loan until after opening bids. Given the potential of major changes in the program, closing must now take place after • PER approval, before June 30, 2000. o The most up -to -date project budget call for $12,000,000 in loan funds with a 5% construction contingency. This loan amount is what the rate study was based on. • E 0 GREENCASTLE WASTEWATER _ SRF Project Costs Estimates ITEM DESCRIPTION PROJECT COSTS 1 • Construction Cost Estimate WWIP $7,351,800.00 Interceptor Sewers $2,735,600.00 SUBTOTAL $10,087,400.00 2. 5.0% Construction Contingency $505,203.00 3. Engineering — Basic Services $696,397,00 4. Local Project Costs $180,000.00 Mapping, soils, easements documents, city engineers cost, Arch. Survey, bid advertising, etc. 5. RPR Costs (Inspection) $310,000.00 6. x Additional Post - Const. Operational $71,000.00 Services 7. Bond Council $25,000.00 8. Legal Fees $30,000.00 9. Rate Consultant $25,000.00 10. Flow Monitoring $50,000.00 H. Easement Record & Title Search, $20,000.00 Permit Fees, Local Survey, Misc. TOTAL PROJECT COSTS $12,000,000 * - O ,2 M N/fnnnnl _ Q2n non _- - -.mow. w— V� , .kni1111161 LatL -Up - y/J,000, Une year Assistance/Certification - $16,000 98- 371AWgeNmjw Cast RevisN 2 -29-00 L STATE OF INDIANA Frank O'Bannon Governor S'T'ATE BUDGET AGENCY State Revolving Fund 212 state House Indianupolis,IN 46204 -2796 (317)232 -5610 March 2, 2000 TO ALL INTERESTED PERSONS -- FOR IMMCDIATE RELEASE Peggy Boehm Director RE: State Wastewater and Drinking Water Revolving Fund (SRF) Programs SRF Interest Rates r In an effort to keep all interested parties informed about important developments in the State Wastewater and Drinking Water State Revolving Fund (SRF) Programs, my office has been reviewing potential changes to the SRF interest rates for any SRF loan closed after June 30, 2000. By law the State Budget Agency recommends interest policy to the State Board of Finance. Development of this recommendation is underway and a recommendation will likely be. made in the next few months. It is expected that this recommendation will include a recommendation to eliminate the 0 percent interest period applicable to certain SRF loans, At this time, determination of the new SRF interest rates is not final and accordingly other changes, if any, are not yet known. W11011 a new interest rate policy is adopted, my office will promptly advise interested persons. The purpose of this advance notice is to keep communities informed and thereby empower them to complete any pending SRF loan in advance of July 1. Loans closed before July 1 are expected to be at today's interest rates -- ranging from 3.9 percent to 2.9 percent (with up to a 2 -year period without interest). We trust advance notice of this information is useful to communities served by the Programs. If you have any questions or comments regarding this matter, please call me at 317/232 -0759. SSi i Rich Emery SRF Program Representative 11