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ITEM 3.11 Amending Otsego Wastewater Master PlanOtSTY F O MINNESOTA V DEPARTMENT INFORMATION Request for City Council Action ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE: Administration City Administrator/Finance Director Flaherty June 10, 2019 PRESENTER(s) REVIEWED BY: ITEM #: Consent Utilities Manager Neidermeier City Engineer Wagner Scott Schaefer, AE2S 3.11 STRATEGIC VISION MEETS: I THE CITY OF OTSEGO: Master Plan. Is a strong organization that is committed to leading the community through innovative communication. H Has proactively expanded infrastructure to responsibly provide core services. No Is committed to delivery of quality emergency service responsive to community needs and expectations in a cost-effective manner. The City adopted the Wastewater Master Plan in January 2018. After the Plan was adopted, City staff Is a social community with diverse housing, service options, and employment opportunities. Priority List (PPL). In January 2019, the City approved the Preliminary Design Agreement with AE2S for the Is a distinctive, connected community known for its beauty and natural surroundings. AGENDA ITEM DETAILS RECOMMENDATION: City staff is recommending that the City Council approve a resolution amending the Otsego Wastewater Master Plan. ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED? No No BACKGROUND/JUSTIFICATION: The City adopted the Wastewater Master Plan in January 2018. After the Plan was adopted, City staff submitted the Plan to the Minnesota Pollution Control Agency (MPCA) for project scoring on the Project Priority List (PPL). In January 2019, the City approved the Preliminary Design Agreement with AE2S for the East Wastewater Treatment Facility Solids Phase 1 Project (the Facility), as outlined in the Plan. Scott Schaefer with AE2S presented to the City Council on May 28, 2019 an update regarding the design progress of the Facility. The MPCA PPL was a topic of discussion during that presentation. The attached Facility Plan amendment is intended to provide additional detail to the Plan to show the link between the Facility project and the liquid treatment system, which is needed to appropriately score the project with the PPL. MPCA had initial rejected the link, but further discussion has resulted in MPCA allowing the link following a Facility Plan Amendment. This improvement in the score is anticipated to put the project into the fundable range for a State Revolving Fund loan. The reduced interest rate loan is anticipated to save Otsego ratepayers in excess of $1 million, even after accounting for slightly increased project capital costs due to additional project requirements. A related letter to place the project on the PFA Intended Use Plan has already been sent, and is attached to this packet. SUPPORTING DOCUMENTS ATTACHED: • Technical Memorandum —Wastewater Master Plan Amendment • Resolution 2019-33 • Letter to MN Public Facilities Authority— Intended Use Plan POSSIBLE MOTION PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THEM I NUTES: Motion to approve Resolution 2019-33, Amending the Otsego Wastewater Master Plan. BUDGET INFORMATION FUNDING: BUDGETED: Fund #602 — Sanitary Sewer Utility Yes 0 Ot CI T e F o MINNESOTA V Technical Memorandum: Facility Plan Amendment Otsego East WWTF Biosolids Facility To: Kurt Neidermeier Utility Manager City of Otsego From: Scott Schaefer, PE AE2S Date: June 3, 2019 Project No: P05409-2017-003 1 SUMMARY The intent of this technical memorandum is to amend the Otsego Wastewater Master Plan (2018) to provide additional detail for elements of the East Solids 1 (ESI) project related to control of recycled phosphorus. This control will provide the operational tools to minimize the impact of recycled phosphorus on the liquid treatment system's Biological Nutrient Removal (BNR) system. Facility Plan Amendment City of Otsego, MN P05409-2017-003 Think Big. Go Beyond.) A www.ae2s.com 2 PROBLEM Mechanical dewatering of waste activated sludge (WAS) will "recycle" dissolved phosphorus (primarily phosphate) in the dewatering centrate. This phosphorus will be returned to the beginning of the liquid treatment train and will shift the readily biodegradable biological oxygen demand (rbBOD) to phosphorus ratio. Recycled phosphorus loads have long been recognized as an issue for biological phosphorus (bio -P) removal systems ("True Confessions of the Biological Nutrient Removal Process", S. Jeyanayagam, Florida Water Resources Journal, January 2005). The rbBOD is needed to drive the bio -P, and too much phosphorus compared to the available rbBOD will result in degraded bio -P performance. The performance of the system will be very important in the future as load limits, coupled with growth, will reduce the effective effluent concentration limit to approximately 0.2 mgTP/L (Master Plan Figure 3.2, Page 106, included below). 3 25.0 to no 20.0 10.0 REGULATORY LIMIT PROJECTIONS -EAST WVVTF 35 3.0 25 2.0 15 1.0 .0 .` -- -- — 05 5 - - - 0 S,DDO 10,0DD 15,000 20,ODD 25,0D0 30,000 35,000 40,000 45,060 Population "BOD (Dec-Prtar), mg/L TP (Jun -Sep, Seascnal RES), mg/L TSS , mg/L TP (LakePepin TM DL), mgfL Ammcn is (Dec4.Iar), mg/L Additionally, the phosphorus from the West WWTF will be "imported" to the East WWTF with the hauled thickened WAS (TWAS). Chemically binding the dissolved phosphorus prior to recycling the centrate will provide for improved bio -P operation, as well as, allowing for economical use of chemical. 3 ADDITIONAL PROJECT ELEMENTS Facility Plan Amendment City of Otsego, MN P05409-2017-003 Think Big. Go Beyond. A AE www.ae2s.com Jeyanayagam mentions three main ways to combat the influence of recycled phosphorus on bio -P systems: • "Equalizing recycle flows • Scheduling sludge pro cessing/conditioning operations, and • Treating the sidestreams" Several approaches were considered for enhanced recycled phosphorus control. Scheduling of sludge processing is the least likely scenario as this would require a major change to the operational scheduling of the Otsego utilities staffing, which is currently weekday operation with remote monitoring. Equalization and/or treatment of the recycle sidestream was the focus of options. Struvite precipitation, similar to the St Cloud WWTF system, was considered, but the WAS and/or TWAS is not anticipated to have sufficiently high levels of ammonia to allow for struvite precipitation. Supplementing rbCOD was considered, but chemicals would need to be added that are not currently used at Otsego's WWTFs. Alum or ferric will precipitate dissolved phosphorus, and ferric is already in use at the East WWTF. Ferric dosing equipment will be added to the project. The dosing equipment will either be added to the chemical room with the polymer system, or site piping will be run across the East WWTF site from the existing ferric area to the new Biosolids Building to allow for a consolidated ferric storage and pump location. An additional operational feature will be added to manage the centrate. A centrate holding tank will be added below the new Biosolids Building, which will allow for enhanced operational control of the centrate recycle. The centrifuge system is planned for operation during regular weekday shifts. The centrate holding tank will allow for centrate recycle to be evenly distributed across time during a calendar day or even distributed across weekdays and into the weekend. The centrate holding tank will also provide a location for chemical dosing, mixing, and reaction to minimize the dissolved phosphorus recycle. The Biosolids Building is planned to have the building structure constructed in a single phase with equipment installation spread over multiple phases. The centrate tank will be underneath the building and will be constructed in the initial phase. Ferric dosing will be included in the initial phase for operational flexibility in the near term. 4 CONCLUSION Recycled dissolved phosphorus can lead to effluent limit violations if not managed. The Otsego ESI project will create a recycled phosphorus stream that has not previously existed, and current and future effluent limits will require the mechanism(s) to manage the recycled phosphorus. A ferric dosing system for the centrate recycle and a centrate holding/equalization tank are recommended for inclusion in the project. Additional details of the layouts and configuration will be further examined during preliminary design. Facility Plan Amendment City of Otsego, MN P05409-2017-003 Think Big. Go Beyond. A www.ae2s.com CITY OF OTSEGO COUNTY OF WRIGHT STATE OF MINNESOTA RESOLUTION NO: 2019-33 AMENDING THE OTSEGO WASTEWATER MASTER PLAN WHEREAS, the Otsego City Council on January 22, 2018 held a Public Hearing and heard all persons desiring to be heard on the matter and fully considered the same and subsequently adopted the Wastewater Master Plan; and WHEREAS, the City has submitted the Wastewater Master Plan to the Minnesota Pollution Control Agency for project scoring and inclusion on the Project Priority List; and WHEREAS, in order to improve the project scoring and fundability it is necessary to amend the Wastewater Master Plan to show the link between the East Wastewater Treatment Facility Solids Phase 1 Project and the liquid treatment system; and WHEREAS, the Otsego City Council has reviewed the amendments to the Wastewater Master Plan. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OTSEGO, MINNESOTA: The Otsego Wastewater Master Plan is amended to show the link between the East Wastewater Treatment Facility Solids Phase 1 Project and the liquid treatment system. 2. That City staff with assistance from Advanced Engineering and Environmental Services, Inc. (AE2S), are authorized to proceed with submitting the amended Wastewater Master Plan to the Minnesota Pollution Control Agency, and that the Mayor and City Administrator are authorized to execute the same. ADOPTED by the Otsego City Council this 10th day of June, 2019. ATTEST: CITY OF OTSEGO Jessica Stockamp, Mayor Tami Loff, City Clerk MOTION made by Council Member and SECONDED by Council Member IN FAVOR: OPPOSED: CITY OF Oi_ue MINNESOTA June 10, 2019 Ms. Kathe Barrett PFA Loan Officer MN Public Facilities Authority 1St National Bank Bldg., Suite W820 322 Minnesota Street St. Paul, MN 55101-1378 RE: 2020 Clean Water Revolving Fund (CWRF) Intended Use Plan Biosolids Building Project — City of Otsego, Minnesota Dear Ms. Barrett: Please accept this letter intending the City of Otsego as officially requesting replacement on the 2020 Intended Use Plan (IUP) as administered by the Minnesota Public Facilities Authority (PFA) in conjunction with the Minnesota Pollution Control Agency. An application was previously sent to the MPCA for placement on the 2020 Project Priority List (PPL) for the above referenced Project. Project Description The project is comprised of the East Solids 1 (ESI) project for design and construction at the Otsego East Wastewater Treatment Facility (WWTF) as described in the Otsego Wastewater Master Plan (2018). The project components are intended to expand the biosolids processing capability of the East WWTF as well as for treatment of the biosolids from Otsego's West WWTF. The project components are described in detail as follows: • Biosolids processing and handling equipment/facilities with full redundancy o Centrifuges (selected via piloting in late 2018) ■ Two of four units installed in ES 1(1 duty plus 1 redundant; 3 duty plus 1 redundant at buildout) o Half of chemical stabilization equipment installed with ES 1 o Full stabilized biosolids loadout garage o Associated ancillary chemical systems (lime silos, polymer dosing equipment) • Truck bay for interior unloading of West WWTF thickened waste stream (TWAS) • Centrate and TWAS storage tanks and pumping • Storage and maintenance garage • Locker room with showers • Break room / office -controls space • SCADA (controls) upgrades • Odor control (Biosolids Building and equipment replacement at Pretreatment) • Electrical/HVAC/Plumbing • Civil/site work City of Otsego 113400 90th Street NE, Otsego, MN 55330 1 Tel. (763) 441-4414 Fax (763) 441-9163 Project Cost Estimate The opinion of probable total project cost follows: Mobilization / General Conditions $737,000 Site Worl</ Civil Work $862,000 Landscape Architectural $190,000 Dewatering Equipment $1,055,000 Chemical Stabilization Equipment $2,015,000 Pumps, Piping, Conveyance $478,000 Odor Control $190,000 Structural/Architectural Building System $3,751,000 Electrical/Instrumentation and Controls $1,199,000 Mechanical $795,000 SUBTOTAL00i Tax* $282,000 Construction Contingencies $1,127,000 CONSTRUCTION SUBTOTAL12,681,000 Engineering, Legal, Admin $2,254,000 pgrade to Geothermal Pretreatment Odor Control Replacement** $145,000 *Tax is estimated based upon total project; biosolids equipment is exempted, but other materials are still taxed. **Separated due to anticipated cost through Reh; 31acement Fund. The project is currently in the preliminary design phase, and project elements are being adjusted with the intent of reducing the total project cost. The City of Otsego is respectfully requesting a loan in the total amount of the project. The current opinion of total probable project cost is approximately $15,000,000, but actual project costs will be dependent on future bid prices. This is a very important project for the City of Otsego's wastewater system, and the City is committed to securing any required funding. A low interest loan through the PFA would help mitigate the needed wastewater rate increase and keep access affordable to the residents of Otsego. City of Otsego 113400 90`j' Street NE, Otsego, MN 55330 1 Tel. (763) 441-4414 Fax (763) 441-9163 Project Schedule The anticipated project schedule follows: Activity Date ■ Preliminary Design Early 2019 ■ Final Design Late 2019 ■ Bid Opening February 2020 ■ Initiate Construction Project Spring 2020 ■ Operational Completion Late 2020* ■ Substantial Completion Spring 2021 ■ Final Completion Summer 2021 * Completion dates will be set once design has progressed to a point that the difficulty of construction can be more accurately gauged to determine completion dates. On behalf of the City, I appreciate your consideration of this important project for the City of Otsego. Should you have any questions or comments regarding either this request for placement of the project on the 2020 IUP or the project in general, please contact Kurt Neidermeier, Utilities Manager, (763) 428-9215, or Scott Schaefer, Project Manager for AE2S, (763) 463-5036. Sincerely, Jessica Stockamp Mayor, City of Otsego c: Adam Flaherty, City Administrator / Finance Director Kurt Neidermeier, Utility Manager Scott Schaefer, P.E., AE2S Gabriel Posteuca, P.E., MPCA City of Otsego 113400 90' Street NE, Otsego, MN 55330 1 Tel. (763) 441-4414 Fax (763) 441-9163