HomeMy WebLinkAbout06 27 2016 Joint Water Agreement Presentation6/29/2016
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Water Planning &
Joint Water Facility
City Council Work Session
June 27, 2016
Purpose
•Review City water supply needs
•Review options to meet needs
•Current CIP includes new WTP in 2019
•Possible Partnership with SMSC
•SMSC starting design process for new WTP
•Need Council direction to inform CIP
preparation
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Prior Lake Existing Water System
Water Treatment Plant (WTP) –7.5 MGD
Seven (7) wells
6 wells pump to WTP
1 well not connected (Well 6 – Wilds well)
Used during peak times, not treated (has Fe and Mn)
Firm pumping capacity is pumping rate with largest well out
of service
Firm pumping capacity is 5.26 MGD (24 hour pumping)
Storage
3.25 MG of storage (elevated and ground storage)
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Prior Lake Existing Water System
Prior Lake has an agreement with SMSC for water supply
Original agreement for 1 MGD
SMSC constructed a 3rd well in 2015
Revised agreement for 1.2 MGD
Additional well increases Prior Lake’s firm capacity
Allows postponement of Well 10 in CIP
2012 Water Issues
Summer of 2012 high water demand
Hot weather and little to no rain
Towers (storage) balance the system
Draw from towers during day (peak usage period)
Fill towers during night (lower usage period)
Risk of Water Ban
Ran all wells during high demand
Not meeting demands
Could not keep towers full
At Risk for water shortage if we lose a well
Added pressure on aquifer (extended pumping)
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Planning for Water Infrastructure
Significant planning and preparation required for water
infrastructure (WTP, wells and storage)
Permitting (MDH, DNR, water appropriations, etc.)
Design
Construction
Coordination of wells with SMSC
Possible interference (close proximity of wells)
Geology of the area ‐challenging
Planning for Water Infrastructure
2020 Projected Peak Day Demand 6.95 MGD
Additional Source, Treatment and storage will be needed
at this time
CIP programs $16.0 million for:
Two additional wells
WTP
Storage
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What are the options?
Prior Lake builds WTP, wells and storage
Seek a Partnership
SMSC ‐Expand current agreement (1.2MGD)
Savage
Currently have 2 interconnects
Different water quality
Cost of Water
Option 1 –Prior Lake Build
Construct new WTP
Use well 6 –pipe to new WTP
Drill new wells (at least 2 to provide firm capacity)
Storage requirements
Elevated
Ground (part of WTP)
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Option 2 – Partnership w/SMSC
Size new WTP for both SMSC and Prior Lake
Fe and Mn removal for both Prior Lake and SMSC
Reverse osmosis for SMSC
Use existing wells
Prior Lake Well #6
SMSC –3 existing wells
Meet firm pumping capacity requirements
Storage requirements
Elevated
Ground (part of WTP)
Option 1
Separate Facilities
Option 2
Joint Facility
PROS
•City Owns and operates all
improvements. No risk of agreement
sunset or termination.
PROS
•Both entities can take advantage of
shared redundancies (i.e. wells to meet
firm pumping capacity) equating to
less cost
•Pay as you go
CONS
•Possible interference of wells and
aquifer drawdown
•Up front Capital Cost
CONS
•Risk of agreement sunset or
termination
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Benefit of Partnership
Prior Lake Only SMSC Only
Joint Prior Lake/SMSC
4.80 MGD
Backwash Pumps
Chemical Feed
Reclaim Tanks
4 Wells
Storage
Prior Lake
HSPs
SMSC
RO
HSPs
2.20 MGD
3 ‐Filters
3 ‐HSPs
3 Wells
Storage
2.64 MGD
3 – Filters
RO
3 ‐HSPs
3 Wells
Storage
Estimated Costs
Estimated Construction Costs
Water Treatment Facility
June 2016
ITEM
NO.
ITEM DESCRIPTION ESTIMATED COST
SMSC Prior Lake Joint Facility
1Performance Bond & Insurance $250,000 $250,000 $425,000
2 Mobilization $420,000 $420,000 $550,000
3 Excavation, Utilities, Roads, Landscaping $2,180,000 $1,450,000 $2,650,000
4 Reinforcing Steel, Concrete Work, Precast $2,150,000 $1,950,000 $2,750,000
5 Masonry $950,000 $950,000 $1,250,000
6 Structural & Miscellaneous Metals $250,000 $250,000 $325,000
7Rough & Finished Carpentry $75,000 $75,000 $85,000
8EPDM Roofing, Insulation, Caulking $145,000 $145,000 $245,000
9H.M. Doors, Overhead Doors $110,000 $110,000 $140,000
10 Painting and Interior Finishes $250,000 $250,000 $325,000
11 Process Equipment $2,275,000 $1,750,000 $3,150,000
12 Process Piping & Mechanical $2,320,000 $2,100,000 $2,950,000
13 Electrical, Controls & Generator $2,150,000 $1,950,000 $2,700,000
14 2 – Additional Wells $0 $1,500,000 $0
15 Raw Water Lines $0 $1,000,000 $1,000,000
Subtotal $13,525,000 $14,150,000 $18,545,000
Contingency – 5% $675,000 $707,500 $927,250
ESTIMATED CONSTRUCTION COST $14,200,000 $14,857,500 $19,472,250
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Estimated Costs
Construction Cost Comparison
Estimated
Construction
Cost
Community’s
Share of Joint
Facility
Total Savings
with Joint
Facility
SMSC $14,200,000 $10,804,238 $3,395,762
Prior Lake $14,857,500 $8,668,013* $6,189,487
Joint $19,472,250
*Current Agreement includes capital in volume wholesale rate ($/1,000 gallons
purchased). No up front capital was required.
Partnership with SMSC
Expand Existing agreement
SMSC owns all of the infrastructure
Costs per 1,000 gallons based on:
Day to day operational and maintenance costs
Replacement costs
Capital costs
Pay as you go option (no financing by City)
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Partnership with SMSC
Another option for partnership
Prior Lake owns source water (skin in the game)
Prior Lake only pays for treatment of water
Prior Lake responsible for building wells and raw
watermains to SMSC WTP
Prior Lake responsible for operation and maintenance
of wells
Potential sale of raw water to SMSC
Partnership with SMSC
Is there a benefit to having SMSC provide all of the wells?
Is it potentially easier for SMSC to permit and obtain
wells?
SMSC still permits for wells
EPA consults with local agencies (DNR, MDH)
No regulatory benefit
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Questions & Next Steps
SMSC Business Council Supports a joint WTP
Is the Council interested in a continued water partnership
with the SMSC?
SMSC provides both source water and treatment?
Prior Lake own wells & pays only for water treatment?
Staff will bring a resolution to the next meeting indicating
Prior Lake’s support for a joint WTP
Staff will work with the SMSC to draft a joint agreement