16 - Wastewater Treatment Plan Renovation Project-Long Term Financing-Wastewater Utility Rate Adjustment

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Item No. 16 In =��M M, M TO: Mayor and City Council FROM: Grayson Path, City Manager Doug Harris, Director of Utilities Gene Anderson, Finance Director SUBJECT: Wastewater Treatment Plant Renovation Project Long Term Financing Wastewater Utility Rate Adjustment DATE: January 25, 2021 BACKGROUND: For several years, the City has been working towards constructing a new Waste Water Treatment Plant (WWTP). The existing WWTP has exceeded its life expectancy and is in desperate need of replacement. The new plant will be a combination of new construction while utilizing portions of the existing plant in order to manage costs. At the June 10, 2019 City Council Meeting, the City Council approved a Professional Engineering Services Agreement with Garver to conduct preliminary and conceptual work towards this project. That work was substantially completed by the Summer of 2020, which led to a presentation to the City Council regarding next steps. At the July 27, 2020 City Council Meeting, the City Council heard a comprehensive presentation by Garver and City Staff of the condition and problems of the existing WWTP, the expected consequences we will see if the WWTP is not replaced (operational and TCEQ regulatory), as well as a solution to address this issue. Leading up to this meeting, tours were given to City Council Members to assist in seeing and understanding the condition of the facility and the work that must occur to keep the facility in operation. The City Council then approved Amendment #1 to the Professional Engineering Services Agreement with Garver to proceed with Phase II of design, authorizing the City Manager to sign the Agreement once a plan of action for long term financing was established.