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HomeMy WebLinkAboutJoint Water Project Terms SheetJoint Powers Agreement for a Shared Water Source, Treatment, and Storage Facility Between the Shakopee Mdewakanton Sioux Community (SMSC) and the City of Prior Lake Statement of Needs: I. SMSC Currently the SMSC North Water Treatment Plant has one production well capable of producing 800 gpm. Current standards require the firm capacity (capacity with largest well out of service) to be able to meet the peak day demand. Since there is only one well, the firm capacity is 0 gpm. Therefore, the SMSC North Service Area needs an additional well capable of meeting the design maximum day demand with a 20-hour run time. Using a 20- hour run time allows time for the well to rest and allows the aquifer to recharge. Given this criteria, the new well should be capable of at least 600 gpm. SMSC North Water Treatment Plant Evaluation Overview System Component Comments Water Supply Current Well Capacity does not meet standards for firm water supply capacity. Deficit of 600 gpm Water Treatment Current treatment capacity is not be adequate for future demands and does not provide a backup RO unit to provide soft water. Water Storage Water storage facilities are not adequate to meet current or future standards for fire protection. Current deficit is 100,000 gallons II.City of Prior Lake The City of Prior Lake recently completed construction of an iron and manganese filtration treatment facility with the capacity to treat 7.5 MGD. The City has a total firm pumping capacity to provide 6.0 MGD of raw water. Therefore the City currently has a deficit of 1.45 MGD or 1000 gpm well water supply. Well Water Capacity Deficit 20-Hour Pumping 24-Hour Pumping Firm Capacity Total Capacity Firm Capacity Total Capacity Well Capacity 5.04 6.48 6.05 7.78 (MGD) Capacity Deficit 2.46 1.02 1.45 0.28 (surplus) (MGD) Capacity Deficit 1700 700 1000 200 (surplus) (gpm) *Capacity deficit is based on the treatment plant design flow of 7.5 MGD. the City of Prior Lake has a deficit of 1.45 MGD or 1000 gpm of well water supply. Project Components: Process Additional SMSC North Service Area City of Prior Lake Benefits Capacity Benefits (gpm) 1. Gravity 1,200 Provides additional filtered Provides 1,000 gpm of filtered Filters/Filter water to the RO system to water to help meet peak Chemicals meet future demands. 200 demands. gpm would be used to feed the RO system in addition to the existing filter capacity. 2. Backwash 900 Provides backwashing for Provides backwashing for new Pumps/Blower new filters. filters. 3. Filter Transfer 1,200 Transfers filtered water to Transfers filtered water to new Pumps new clearwell. clearwell. 4. Clearwell 600 Transfers filtered water from None. Transfer Pumps the new clearwell back to the existing filtered water clearwell, which provides the feed water for the RO system. 5. RO Skids/RO 250 Provides treatment capacity None. Chemicals to meet future demands and redundancy to meet current demands. Also includes provisions to add another skid in the future. 6. High Service 2,000 Provides water from the Delivers finished water to the Pumps/Chemical clearwell for fire protection distribution system. Feed by acting as a fire pump. 7. Clearwell/ 200,000 Provides adequate storage to Provides added storage to help Reservoir gallons meet standards for fire meet peak day demands as well protection as well as water as water for backwashing for backwashing filters. filters. Water Allocation: I.During the peak day demand the City of Prior Lake may be able to take up to 1,400,000 gallons per day over a single 24-hour period. II.If peak demands last over a period of several days the City of Prior Lake will need to reduce that volume of treated water to 1,300,000 gallons per day to allow time for filter backwashing. III.In the case of a water emergency for either community, water supplies to the other community may be truncated until the water demand returns to normal. IV.The City of Prior Lake will purchase 438 million gallons per year (1,000 gpm, 20-hrs/day, 365 days/yr) Project Financing: The SMSC will design, construct, and operate needed components as an expansion of the SMSC North Water Treatment Facility. The SMSC will fund the expansion and sell water to the City of prior Lake at a rate based on the capital cost and operating expenses. I.Capital The table below notes the estimated costs of expansion of the facility along with the portion of the cost benefiting the SMSC and City of Prior Lake. Assuming a payback of 20 years at a rate of 3% the City of Prior Lake must guarantee the purchase of 438 Million Gallons annually to pay back the capital portion of the project. Based on these assumptions the capital portion is a rateof $0.41 per 1,000 gallons. The final rate will have to be determined based on actual construction costs. SMSC North Water Treatment Plant Expansion Cost Estimate Total Cost SMSC Prior Lake Portion Portion Mobilization $ 50,000 $ 25,000 $ 25,000 Bond/Insurance/Allowance 100,000 50,000 50,000 Filter Tank/Media/Blower 1,100,000 550,000 550,000 Media/Tank Installation 60,000 30,000 30,000 Reclaim System 250,000 125,000 125,000 Building (10,000 sq ft) 1,300,000 650,000 650,000 Reservoir (200,000 gallon) 350,000 265,000 85,000 Chemical Feed 150,000 75,000 75,000 Process Piping/Valves 200,000 125,000 75,000 High Service Pumps 150,000 50,000 100,000 Excavation/Site Work 250,000 125,000 125,000 Plumbing 100,000 50,000 50,000 New 250 gpm RO Skid 300,000 300,000 - New 1000 gpm Well& Redevelopment of Existing Well 280,000 200,000 80,000 Generator 350,000 210,000 140,000 Electrical/Controls 650,000 370,000 280,000 SUBTOTAL $ 5,640,000 $ 3,200,000 $ 2,440,000 Contingency (10%) 564,000 320,000 244,000 TOTAL $ 6,204,000 $ 3,520,000 $ 2,684,000 II.Operating The operational component of the rate shall be based on Chemical, pumping, operation, maintenance and replacement costs. Chemical and pumping costs should be reviewed and adjusted annually based on average pricing for prior year. Based on historical information these costs are estimated to be $0.46 per 1,000 gallons. Agreement Term: The Joint Powers Agreement for the North Water Treatment Facility shall be a 20 Year agreement, with renegotiation terms at 20 years. The City of Prior Lake shall retain the purchased capacity after the 20 year repayment period. It is anticipated that both the SMSC and City of Prior Lake will have additional water demand needs in the western areas of the City. Should the SMSC need additional capacity in the northern water system, they may provide capacity at an alternate location, potentially a joint facility. Agreement Components: 1.Capital Investment – Addresses project components, capital cost share, purchase of capacity, water allocation, payment (capital vs. operational), early payoff, guarantee of quality of service 2.Construction – Roles, responsibilities, approvals 3.Operational - Addresses responsibility for day-to-day operations and payment for: Annual Costs: Chemical, pumping, electrical, staff, repairs, testing, etc. reviewed and updated annually. Major Repairs/replacements: pump replacement, drives, filters, well redevelopment, etc. reviewed and annual amount collected for reserve updated periodically (5-years).