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HomeMy WebLinkAbout01 23 2017 Joint Water Treatment Facility Discussion ReportPhone 952.447.9800 / Fax 952.447.4245 / www.cityofpriorlake.com 4646 Dakota Street SE Prior Lake, MN 55372 CITY COUNCIL WORK SESSION REPORT MEETING DATE: JANUARY 23, 2017 AGENDA #: C PREPARED BY: FRANK BOYLES, CITY MANAGER KATY GEHLER, PUBLIC WORKS & NATURAL RESOURCES DIRECTOR DON URAM, FINANCE DIRECTOR PRESENTED BY: FRANK BOYLES, KATY GEHLER, AND DON URAM AGENDA ITEM: DISCUSSION: COLLABORATIVE WATER TREATMENT AGREEMENT Introduction The purpose of this agenda item is to have the City Council provide feedback on a collaborative water treatment agreement with the Shakopee Mdewakanton Sioux Community (SMSC). History The City has been planning long range water supply needs that include the need for additional water source (wells), treatment and storage. As the City is reaching its capacity with the existing facilities, an evaluation was completed to review the future demands and timing of critical infrastructure to ensure these needs can be met. (See attached Bolton and Menk Report). There are currently seven wells that provide the water supply for the City of Prior Lake. Of the seven wells, six of them are pumped to the City’s water treatment plant where iron and manganese are removed before being distributed. The total firm pumping capacity to the WTP is 5.26 MGD. In 2010 the demands in the system indicated a need for additional water and the City considered the construction of another supply well to feed the water treatment plant. Before the well was drilled, various other options were considered including entering into a partnership with the Shakopee Mdewakanton Sioux Community (SMSC) as they also had needs to provide redundancies in their system as well. Ultimately it was found to be more cost effective for both entities to move forward with a joint project. The current water agreement allows the City to purchase up to 1.2 MGD and has allowed the City to postpone the construction of another well for the time being. As the City continues to develop it is projected that there will be a need for additional water supply, including treatment, source and storage. In the long-range water planning documents the City has always envisioned 2 these needs being met with additional facilities in the western portion of the City near Spring Lake Park and the Campbell Lake area. Based on the current projections, the additional improvements should be operational by the end of 2019 when the demands are expected to reach 6.95 MGD (which will exceed the capacity of our wells and treatment plant) and continue to grow from there. To meet the future needs of the City a new water treatment plant, two source wells, and storage were programmed into the Capital Improvement Plan (CIP) in 2019. Significant planning and preparation are required for these types of facilities. Permitting (Minnesota Department of Health (MDH), Minnesota Department of Natural Resources (DNR), water appropriations, etc.) is needed along with the design and construction of the facility. The total process can take five years or more. Now is the time to move forward to ensure the City has an adequate water supply in the future. As the City began to look to provide for the future needs, an opportunity arose to expand on the existing water partnership with the SMSC. The SMSC also has a need to replace and expand aging treatment systems and has a desire to locate a new facility south of CR82 near Spring Lake. The SMSC intends to have this new plant online by 2019 and is starting the design process this year. The two entities undertook a study to evaluate the future needs of the two communities and consider options to provide those needs. The results of this study were provided to the City Council at a work session on June 27, 2016. While some council members had the opportunity to view the PowerPoint recently, this is a good document for all councilors to review (see attached). The study considered the options of having each entity construct and operate separate facilities or partnering on a joint facility. Mostly due to redundancies that must be designed into each of these types of facilities, there is significant cost savings with a joint facility. In the case of the SMSC the savings is estimated to be $3.4 million. In the case of Prior Lake, the estimated cost reduction is $ 6.2 million. A joint facility would include iron and manganese removal for both entities, reverse osmosis for the SMSC and ground storage. Initially the WTP could be supplied by the three existing wells SMSC owns and Well # 6 for the City. Each entity would be responsible for extending watermain from their well(s) to the WTP. During the work session there was some discussion regarding the ownership of future supply wells. There was no regulatory benefit to having the SMSC own all of the wells. By having the City own the future supply wells, it provides balance to the partnership. With this type of arrangement, three water rates would be defined within the agreement to allow the most flexibility with the partnership: 3 1. The City purchasing raw water and treatment from the SMSC (current arrangement) 2. The City purchasing water treatment only from the SMSC (Supplying the raw water from City owned and operated wells) 3. The SMSC purchasing raw water from the City On July 11, 2016 the council adopted the attached resolution formally indicating support for a collaborative water supply arrangement and authorized staff to begin negotiating an agreement. Current Circumstances City and SMSC staff have met numerous times to discuss the agreement. At first it was our belief that we could basically take large sections of the existing joint water agreement and use them wholesale for this document. This approach has proved to be beneficial for certain “boilerplate” paragraphs like indemnification, data practices, defining employees, examination of the plant and the like. However, there are several fundamental differences in this agreement which have required a great deal of consideration, discussion, and rewriting. Earlier this week we received a draft joint water treatment plant agreement from the SMSC. City staff examined it and made numerous revisions and additions. It did not seem appropriate or productive to share with the council a draft agreement that SMSC Staff has not seen. When a draft is available that both parties have had input in, we will share it with the city council. Below is a summary of the key issues which deserve city council attention. It would be helpful if the city council provided conceptual input rather than drafting document language. That is a function best left to the attorneys. Responsibilities Design and Construction The SMSC will be responsible for the design and construction of the facility with appropriate approvals for the City at key points in the process. Operation The SMSC will own and operate the plant. The City and SMSC will enter into a separate operational agreement that ensures minimal run times on the three plants such that treatment is efficient and optimized. The SCADA systems will be programed to ensure compliance with this agreement. In addition, the City will have the right to enter the property both for emergencies and as requested to meet all state agency access requirements. 4 Water Allocation Perpetual Right The City will have a perpetual right to treatment of water at the allocation noted in the agreement. Allocation Amount The agreement will allow for water treatment up to 2.1 million gallons per day (MGD). Initial water supply will come from Well 6 (1,200 gpm) for a total of capacity of 1.7 MGD. Additional capacity can be added by drilling new city wells in the annexation area. Payments Permanent Assets/ Intangible Asset The City’s share of the permanent assets (construction costs) is estimated to be $9.968 million (includes engineering, admin, legal). The City will make fixed annual payments for 25 years financed at 3%. Operation, Maintenance and Replacement Actual cost of materials, services, and staff time to operate and maintain the Prior Lake portion of the treatment plant paid at a rate per 1,000 gallons actually pumped. Fixed for first five years of the agreement with annual review and adjustment thereafter just like the water use agreement. Permanent Asset Replacement Addresses financing or reserve of funds for future replacements or expansions not accounted for in the OM&R. Enforcement and Remedy Limited Waiver of Sovereign Immunity SMSC has indicated a willingness to provide a limited waiver of sovereign immunity in lieu of a cash escrow. Should the SMSC default on the agreement, the City would have the right to bring suit against the SMSC in Scott County District Court using Minnesota Laws specially related to this agreement. Option B for Default If the SMSC does not agree to a limited waiver of sovereign immunity, the other remedy option for default is the use of an escrow account. In this option the SMSC would establish an escrow account which will increase annually to equal the amount of the City’s Fixed payments. These funds would be available to the City in case of an SMSC default. Other Term The agreement has perpetual term. Termination Termination of the agreement must be mutually agreed upon. Annexation Area The agreement will address SMSC purchase of land in the City’s comprehensively 5 planned areas for annexation and development. Acreage and connection fees collected during development of this area are anticipated to fund the annual fixed payments. In the event of SMSC purchase of property in the annexation area which diminishes the city’s capacity to pay water treatment plant capital charges the city will receive a credit commensurate with the development fees due or the SMSC would make the actual development fee payment for the land. Staff will review the terms of the agreement with the Council during the work session and seek feedback that will shape the remaining negotiations. ISSUES: Premised on mutually assured destruction The agreement will be premised on the theory of mutually assured destruction meaning neither party will be able to back out easily due to the extensive investments. Both parties have expressed a strong interest in wanting this joint plant to work in perpetuity. In the case of the City, we will rely on the water treatment provided by the SMSC. If we were to default, the City would have to repay the capital, and then rebuild a separate more expensive treatment plant on land most likely in the annexation area if any remains undeveloped in the correct location Contrarily, the SMSC is taking on the cost burden of financing close to $10 million of assets for the City. If they were to default on the agreement by not providing water, they would not receive payment for assets that they will not have need for in the 20-year planning horizon. Timing The SMSC has indicated a desire to have the new WTP online by the spring of 2019 to meet their projected needs. This timeline corresponds to the City’s projections of when additional treatment capacity will be needed. Considering a projected 20+ months of construction, 4-6 months of design, and 6 weeks of regulatory agency review, the process needs to begin very soon. FINANCIAL IMPACT: Planning level cost estimated were completed for the two main options, separate facilities and a joint facility. The table below summarizes these estimated costs and notes the savings to each community. 6 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 City financing of this project is proposed to come from revenues collected from new development including the Trunk Water acreage charge, the Water Tower charge, and water connection charges. The Trunk Water charge is a per acre charge that is paid at time of development while the Water Tower charge and water connection charges is per unit fee that is paid at time of building permit. These revenues are deposited into the Trunk Reserve and the Water Storage Funds to pay for future water infrastructure including trunk water mains, water storage facilities, and major facility additions such as wells, booster stations and a new water treatment plant. The 2004 Water Plan Update identified several improvements necessary to provide water service to the west and southern sections of the City that the proposed joint water treatment plant facility would cover. As a result, it is appropriate to use the revenues collected in both the Trunk fund and the Water Storage fund pay for the City’s share of the cost of the facility. Per the draft agreement, the City’s fixed charge would be approximately $500,000 a year for 25 years. Based on current projections of 120 single- family permits per year, revenues collected would total approximately $200,000 in the Water Storage fund and $500,000 in the Trunk fund. In addition, there is approximately $1.5 million in the Water Storage fund. Staff recommends that these funds be kept in reserve to cover any shortfalls in actual development fee revenue. The amount available to contribute towards the joint facility in each of the trunk funds will be determined annually based on the City’s Capital Improvements Plan, the level of development activity, and existing and projected cash balances. If revenue is not available in the trunk fund to meet the fixed payment, the Water fund will be the secondary funding source. Conclusion We believe that SMSC Staff will be present at the work session. We will lead the council through the PowerPoint if desired. Following that, it would be helpful to review the various issues identified in this report together 7 with any other issues the council desires to discuss in order that we can continue to work with the SMSC to fashion an agreement which is satisfactory to both parties. Water System Evaluation: South Service Area A joint study between the Shakopee Mdewakanton Sioux Community and the City of Prior Lake C15.110719 June 14, 2016 Submitted by: Bolton & Menk, Inc. 12224 Nicollet Avenue Burnsville, MN 55337 P: 952-890-0509 F: 952-890-8065 Water System Evaluation for Shakopee Mdewakanton Sioux Community & City of Prior Lake Prior Lake, MN I hereby certify that this plan, specification or report was prepared by me or under my direct supervision, and that I am a duly Licensed Professional Engineer under the laws of the State of Minnesota. By: Seth A. Peterson License No. 26468 Date: June 14, 2016 BOLTON & MENK, INC. CONSULTING ENGINEERS AND LAND SURVEYORS SMSC/Prior Lake, MN – C15.110719 Page TOC-i Water System Evaluation Prepared by Bolton & Menk, Inc. TABLE OF CONTENTS EXECUTIVE SUMMARY .......................................................................................................................... 1 SECTION 1 INTRODUCTION .............................................................................................................. 1-1 A. PURPOSE ..................................................................................................................................... 1-1 B. BACKGROUND .......................................................................................................................... 1-1 C. REPORT ORGANIZATION ........................................................................................................ 1-1 SECTION 2 WATER DEMAND ............................................................................................................ 2-1 A. CURRENT AND FUTURE WATER DEMAND FOR SMSC .................................................... 2-1 B. CURRENT WATER DEMAND FOR THE CITY OF PRIOR LAKE ........................................ 2-2 C. FUTURE DEMANDS FOR THE CITY OF PRIOR LAKE ........................................................ 2-3 SECTION 3 EVALUATION OF EXISTING FACILITIES ................................................................... 3-1 A. SMSC ............................................................................................................................................ 3-1 1. Water Supply .......................................................................................................................... 3-1 2. Treatment Capacity ................................................................................................................ 3-1 3. Storage .................................................................................................................................... 3-2 4. Summary ................................................................................................................................ 3-2 B. THE CITY OF PRIOR LAKE ...................................................................................................... 3-3 1. Water Supply .......................................................................................................................... 3-3 2. Treatment Capacity ................................................................................................................ 3-4 3. Storage .................................................................................................................................... 3-4 4. Summary ................................................................................................................................ 3-5 SECTION 4 EVALUATION OF ALTERNATIVES .............................................................................. 4-1 A. GENERAL .................................................................................................................................... 4-1 B. WATER SUPPLY ........................................................................................................................ 4-1 C. WATER TREATMENT AND STORAGE .................................................................................. 4-2 D. WATER ALLOCATIONS ........................................................................................................... 4-2 1. Separate Facilities................................................................................................................... 4-2 2. Joint Facility – City Wells ...................................................................................................... 4-5 3. Joint Facility – No City Well ................................................................................................. 4-8 SECTION 5 COST ESTIMATE & PROPOSED IMPLEMENTATION ................................................ 5-1 A. GENERAL .................................................................................................................................... 5-1 B. COST ESTIMATE........................................................................................................................ 5-1 C. PROJECT FINANCING ............................................................................................................... 5-2 D. IMPLEMENTATION SCHEDULE ............................................................................................. 5-4 SECTION 6 ADDITIONAL CONSIDERATIONS ................................................................................ 6-1 A. GENERAL .................................................................................................................................... 6-1 B. REGIONAL WATER SUPPLY PLANNING .............................................................................. 6-1 C. WATER CONSERVATION ........................................................................................................ 6-1 1. Irrigation Practices ................................................................................................................. 6-1 2. Educational Efforts ................................................................................................................. 6-1 D. ADDITIONAL WATER SOURCES ........................................................................................... 6-2 1. Storm Water for Irrigation ...................................................................................................... 6-2 SMSC/Prior Lake, MN – C15.110719 Page TOC-ii Water System Evaluation Prepared by Bolton & Menk, Inc. LIST OF TABLES Table Number Page ES.1 Construction Cost Comparison 2 ES.2 Operating Expenses and Bond Payments 3 ES.3 Implementation Schedule – Joint Water Treatment Facility 3 2.1 5 Year Prior Lake Historical Water Demands 2-3 2.2 Prior Lake Projected Future Treated Water Demands 2-5 3.1 South WTP Capacity Evaluation 3-2 3.2 SMSC Water Treatment Plant Evaluation Overview 3-3 3.3 Prior Lake Well Information 3-3 3.4 Prior Lake Well Pumping Capacity to WTP 3-4 3.5 Prior Lake Water Treatment Plant Evaluation Overview 3-5 4.1 Projected Raw Water Supply With New SMSC and Prior Lake Wells 4-8 4.2 Projected Raw Water Supply With New SMSC Wells 4-9 5.1 Estimated Construction Costs – Water Treatment Facility 5-1 5.2 Estimated Construction Costs Breakout – Joint Water Treatment Facility 5-2 5.3 Equipment Replacement Funds – Joint Water Treatment Facility 5-3 5.4 Operating Expenses and Bond Payments 5-4 5.5 Implementation Schedule – Joint Water Treatment Facility 5-4 SMSC/Prior Lake, MN – C15.110719 Page 1 Water System Evaluation Prepared by Bolton & Menk, Inc. EXECUTIVE SUMMARY The purpose of this report is to evaluate the water supply and treatment needs for the South Service Area of the Shakopee Mdewakanton Sioux Community (SMSC) and the City of Prior Lake. Current and future needs of both the SMSC South Service Area and the City of Prior Lake make a joint water project feasible. Future demands in the City of Prior Lake are projected to increase, leading to more water usage. Prior Lake currently has a treatment plant that is designed to treat up to 7.5 MGD of raw water, including the 1 MGD purchased from SMSC. However, unexpected issues with well water supplies have resulted in a shortage of raw water supplies to the treatment facility. The City of Prior Lake has a deficit of 2.24 MGD or 1,556 gpm of well water supply. The City of Prior Lake is projected to see a significant increase in water demand within the next 20 years. By 2036, the projected peak day demand is 9.6 MGD. Additional water sources are needed to meet projected demands. The South Service Area Water Treatment Facility receives water from three different wells with a total capacity of 2,050 gpm (2.46 MGD) and a firm capacity of 1,350 gpm (1.62 MGD). There is a sufficient well water supply to meet current demands. The existing water treatment plant filters have a total and firm capacity of 1.98 and 1.2 MGD, respectively. The existing RO units have total and firm capacities of 1.98 and 1.32 MGD, respectively. The SMSC South WTP has the capacity to meet current peak day demands. However, there are deficiencies in the WTP firm capacity for projected peak day with both the Enterprise Addition plus ICO subdivision including irrigation demand and excluding it. To meet the projected demands, a new RO unit, and well is needed. One option to provide a stable treated water source to each community is to construct separate facilities. A new SMSC South WTP would operate for 20 hours per day and have a treatment capacity of 2.64 MGD with a firm capacity of 1.98 MGD. SMSC would route existing wells 6, 8 and 10 to a new treatment facility and connect Well No. 9 (capacity of 700 gpm). Therefore, no new wells would need to be drilled for SMSC. A new treatment plant for Prior Lake would be designed based on the difference between the projected peak day demand of 9.6 MGD and the current treatment capacity of 7.5 MGD. A new SMSC/Prior Lake, MN – C15.110719 Page 2 Water System Evaluation Prepared by Bolton & Menk, Inc. separate Prior Lake water treatment facility would operate for 20 hours per day and be designed to treat 2.1 MGD. To meet the demand of a new treatment facility and firm capacity requirements, Prior Lake will have to connect Well No. 6, that provides 1,200 gpm, and install two additional wells capable of producing at least 900 gpm each. Another option is to construct a joint water treatment facility and treat water to send to both SMSC and Prior Lake. This requires both SMSC and Prior Lake to provide well water to the treatment plant. A combined treatment plant would be designed to treat 4.74 MGD and would operate for 20 hours per day to allow for backwash and maintenance. This option requires Prior Lake to connect Well No. 6 at 1,200 gpm, and drill two additional wells capable of producing 900 gpm each. SMSC would need to connect Wells 6, 8, 9, and 10, bringing the total well capacity to 5,850 gpm (7.02 MGD) and a firm capacity of 4,650 gpm (5.58 MGD). A final option is to construct a joint facility, use the existing SMSC wells and Prior Lake Well No. 6. A combined treatment plant would be designed to treat up to 4.74 MGD. Prior Lake would connect Well No. 6 capable of producing 1,200 gpm, but no other Prior Lake wells would be connected. SMSC would connect Wells 6, 8, 9, and 10 to a new treatment facility. However, to meet firm capacity, the capacity with the largest well out of service (Prior Lake Well No. 6), SMSC will need to redevelop Well No. 9 to produce at least 1,200 gpm. With Prior Lake Well No. 6 and SMSC Well No. 9 capable of producing 1,200 gpm, the total well capacity would be 5,150 gpm (6.18 MGD) with a firm capacity of 3,950 (4.74 MGD) with either Well No. 6 or No. 9 offline. The estimated construction costs to construct the water treatment facilities as discussed above and as presented in Table 5.1 is presented in Table ES.1 along with each community’s share and total savings of the joint water treatment facility. Table ES.1 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 SMSC/Prior Lake, MN – C15.110719 Page 3 Water System Evaluation Prepared by Bolton & Menk, Inc. Based on the City of Prior Lake receiving a minimum of 1,200,000 gallons per day (438 million gallons per year) of treated water from the new joint WTP, the annual anticipated payment from the City of Prior Lake is $810,300. The breakout of operating expenses and bond payments are shown in Table ES.2. Should the City use more than the 438 million gallons annually, the additional charge for treated water would only include the cost of OM&R, power and chemicals. Table ES.2 Operating Expenses and Bond Payments Expense Item Cost per 1,000 Gallons OM&R Costs $0.18 Electrical Costs $0.25 Chemical Costs $0.28 Bond Payment Costs $1.14 Total Costs $1.85 A proposed implementation schedule for the joint water treatment plant is presented in Table ES.3. Table ES.3 Implementation Schedule Joint Water Treatment Facility ITEM DATE 1. Presentation to Both Councils June 2016 2. Approve Study and Cost Sharing Agreement September 2016 3. Prepare Plans and Specifications October – December 2016 4. Review and Approval of Contract Documents January – February 2017 5. Project Construction April 2017 – November 2018 SMSC/Prior Lake, MN – C15.110719 Page 1-1 Water System Evaluation Prepared by Bolton & Menk, Inc. SECTION 1 INTRODUCTION A. PURPOSE The purpose of this report is to evaluate the water supply and treatment needs for the South Service Area of the Shakopee Mdewakanton Sioux Community (SMSC) and the City of Prior Lake. This report will provide the City with necessary information regarding water supply and treatment needs. They can utilize the information gathered here to make an informed decision on the possible expansion of their water supply system. B. BACKGROUND Current and future needs of both the SMSC South Service Area and the City of Prior Lake make a joint water project feasible. Future demands in the City of Prior Lake are projected to increase, leading to more water usage. Projections for water usage indicate that the Water Treatment Facility will be operating near capacity with limited storage space. The City of Prior Lake is lacking enough well water supply to keep up with current and future demands. A joint project between SMSC and the City of Prior Lake may be a cost effective alternative to solve both communities’ water supply problems. C. REPORT ORGANIZATION To adequately address the major issues for the Prior Lake water system, this report is organized into six sections. Section 2 reviews the current and future water demands. Section 3 provides an evaluation of the existing facilities. Evaluation of the alternatives is provided in section 4. Section 5 introduces cost estimates and the proposed implementation schedule, while section 6 discusses additional considerations. SMSC/Prior Lake, MN – C15.110719 Page 2-1 Water System Evaluation Prepared by Bolton & Menk, Inc. SECTION 2 WATER DEMAND A. CURRENT AND FUTURE WATER DEMAND FOR SMSC The water demand for the Enterprise Addition can be estimated by using the Metropolitan Council Environmental Services (MCES) criteria, which provides factors to convert non-residential facilities into equivalent residential units (SAC units). It is assumed that the water demand for the Enterprise Addition would be essentially equal to the sanitary sewer flow as the irrigation needs for this area are provided by SMSC’s water reuse system. Following are the pertinent MCES criteria:  Convention Center - 14 people = 1 SAC unit, 286 SAC units based on 4,000 people  Hotel - 2 rooms = 1 SAC unit, 100 SAC units based on 200 rooms  1 SAC unit = 274 gallons per day (gpd)  Total peak day water demand = 386 SAC units x 274 gpd/unit = 105,764 gpd or 74 gpm The above water demand calculation is based on full capacity of both the hotel addition and convention center and is therefore considered the peak day demand. The 74 gpm water demand shown above is the average over a 24 hour period. Water demand is not uniform and the peak hour demand rate as estimated by the Enterprise Addition planners/designers is 382 gpm. The Inyan Ceyaka Otonwe (ICO) subdivision water demand needs to be considered in evaluating water system impacts. The following criteria obtained from SMSC north residential historic water use are used in estimating this demand.  Single family residential average demand = 750 gpd  Townhome demand = 375 gpd (assumed)  Total average day water demand = 67,500 gpd (based on full development)  Peak factor = 3.42  Peak day demand = 3.42 x 67,500 gpd = 230,850 gpd or 160 gpm The above water demands for the ICO subdivision are based on the lawn irrigation water being supplied by the potable water system. If the irrigation demand would be supplied by a water reuse system, the water demand is estimated as follows: SMSC/Prior Lake, MN – C15.110719 Page 2-2 Water System Evaluation Prepared by Bolton & Menk, Inc.  Single family residential average demand = 475 gpd  Townhomes = 275 gpd  Total average day water demand = 43,800 gpd (based on full development)  Peak factor = 2.0 (estimated)  Peak day demand = 2.0 x 43,800 gpd = 87,600 gpd or 61 gpm The peak day demand is significantly reduced when the ICO irrigation demand is removed. Combining the water demands for the Enterprise Addition and the ICO subdivision results in the following:  Peak day demand = 337,000 gpd with ICO irrigation demand  Peak day demand = 194,000 gpd without ICO irrigation demand B. CURRENT WATER DEMAND FOR THE CITY OF PRIOR LAKE The historical water demands for the City of Prior Lake are presented in Table 2.1. Average per capita demand for the past five years is 88.8 gal/cap-d (gpcd) with an average peaking factor of 2.85. The historical trends indicate a slight increase in the peaking factor. However, the average day demand has decreased since 2010 from 2.1 MGD to 1.39 MGD is 2015. The peak day demand since 2010 occurred in 2012 and was 6.61 MGD, exceeding the water treatment facilities capacity of 6.48 MGD. To increase capacity, the City of Prior Lake began purchasing water from the Shakopee Mdewakanton Sioux Community in 2014. The agreement between SMSC and the City of Prior Lake allows the City to purchase 1.0 MGD of treated water. The Water Treatment Facility has the capacity to handle a total of 7.5 MGD, with the 1 MGD purchased from SMSC. SMSC/Prior Lake, MN – C15.110719 Page 2-3 Water System Evaluation Prepared by Bolton & Menk, Inc. C. FUTURE DEMANDS FOR THE CITY OF PRIOR LAKE Historical water usage was analyzed to project the future demand for the City of Prior Lake. Population projections were used as the basis for water demand in the future. An average per-capita usage of 88.8 gpcd from the historical water usage was used to project future average day water demand. Peaking factors can remain relatively consistent over several years. A peaking factor too large will overestimate the peak day demand, while a peaking factor too low will not yield accurate peak day demands. Since peaking factors do not change significantly, it is acceptable to take the average peaking factor for a period of years to project peak day demands in the future. The peaking factor for future years used to project the peak demand was 2.85. Currently, the water treatment plant has a capacity of 6.48 MGD. The agreement between SMSC and Prior Lake allows the City to purchase 1 MGD of treated water, for a total treatment capacity of 7.5 MGD. Table 2.2 projects future water usage based on historical trends. The future projections indicate the City of Prior Lake can expect to use more than 1 million gallons of water per day by the year 2026. By 2040, the City of Prior Lake is estimated to use 1.3 million gallons of water per day. Table 2.1: 5 Year Prior Lake Historical Treated Water Demands Year Population Total Water usage (1000 gal) Peak Day (MGD) Average Day (MGD) Customer water usage (gpcd) Peaking Factor 2010 22,796 769,227 5.54 2.10 92.4 2.64 2011 23,010 754,934 5.00 2.22 89.9 2.25 2012 23,385 894,580 6.61 2.35 104.8 2.81 2013 24,223 792,697 6.12 1.98 89.7 3.09 2014* 24,911 714,777 5.10 1.58 78.6 3.23 2015* 24,732 638,984 4.25 1.39 77.4 3.06 Average 760,867 5.44 1.94 88.8 2.85 Maximum 894,580 6.61 2.35 104.8 3.23 *2014 and 2015 include purchased water from SMSC SMSC/Prior Lake, MN – C15.110719 Page 2-4 Water System Evaluation Prepared by Bolton & Menk, Inc. One way to analyze a water system is to look at the current treatment capacity and calculate the remaining treatment capacity based on future water usage projections. Based on these future projections and current treatment capacity, the remaining treatment capacity for each year can be calculated by subtracting the peak day demand from the total treatment capacity. The total treatment capacity for Prior Lake is 7.5 MGD, including water purchased from SMSC. The treatment capacity for Prior Lake is limited by the well water supply. With the current well water supply and operating the wells for 20 hours per day, the total raw waters supply is 5.82 MGD. The surplus or deficit of treatment capacity is determined by adding the well water supply to the 1 MGD purchased from SMSC, then subtracting that from the projected peak day demand. By 2020, Prior Lake can expect to have a deficit in water treatment capacity of 0.13 MGD. The remaining treatment capacity significantly drops each year. Future projections indicate that by 2024, the City of Prior Lake will have a deficit in treatment capacity of 0.78 MGD. The deficit of water treatment capacity increases to 1.75 MGD by 2030 and to 3.42 MGD by 2040. It is critical to evaluate options to increase current treatment capacity to reduce the water treatment deficit. Analyzing the storage capacity and future water usage can help predict when storage capacity will run out. The City of Prior Lake currently has 3.25 MGD of storage capacity in elevated storage and within the treatment facility. The remaining average day storage capacity must be equal to or greater than the average day demand. For future water demand projections, the remaining average day storage capacity can be calculated by subtracting the average day demand from the current storage capacity of 3.25 MGD. Based on these calculations, by 2020 the City of Prior Lake will have 0.81 MGD of storage capacity for the average day demand. By 2030, this number decreases to 0.24 MGD. The future projections indicate that there will be a storage capacity deficit of 0.05 MGD by 2035 and a deficit of 0.35 MGD by 2040. Evaluation of storage capacity based on future projections is critical to maintain storage for future years. These predictions are shown in Table 2.2 below. SMSC/Prior Lake, MN – C15.110719 Page 2-5 Water System Evaluation Prepared by Bolton & Menk, Inc. Table 2.2: Prior Lake Projected Future Treated Water Demands Population Projections Projected Total Water used per year (1,000 gal) Projected Average Day Demand (MGD) Projected Peak Day Demand (MGD) Remaining Treatment Capacity (MGD) Remaining Average Day Storage Capacity (MGD) Year Population 2016 25,286 819,506 2.25 6.39 0.43 1.00 2017 25,839 837,448 2.29 6.53 0.29 0.96 2018 26,393 855,390 2.34 6.67 0.15 0.91 2019 26,946 873,332 2.39 6.81 0.01 0.86 2020 27,500 891,274 2.44 6.95 -0.13 0.81 2021 28,140 912,017 2.50 7.11 -0.29 0.75 2022 28,780 932,759 2.56 7.27 -0.45 0.69 2023 29,420 953,501 2.61 7.44 -0.62 0.64 2024 30,060 974,244 2.67 7.60 -0.78 0.58 2025 30,700 994,986 2.73 7.76 -0.94 0.52 2026 31,340 1,015,729 2.78 7.92 -1.10 0.47 2027 31,980 1,036,471 2.84 8.08 -1.26 0.41 2028 32,620 1,057,213 2.90 8.25 -1.43 0.35 2029 33,260 1,077,956 2.95 8.41 -1.59 0.30 2030 33,900 1,098,698 3.01 8.57 -1.75 0.24 2031 34,560 1,120,089 3.07 8.74 -1.92 0.18 2032 35,220 1,141,479 3.13 8.90 -2.08 0.12 2033 35,880 1,162,870 3.19 9.07 -2.25 0.06 2034 36,540 1,184,260 3.24 9.24 -2.42 0.01 2035 37,200 1,205,651 3.30 9.40 -2.58 -0.05 2036(1) 37,860 1,227,042 3.36 9.57 -2.75 -0.11 2037 38,520 1,248,432 3.42 9.74 -2.92 -0.17 2038 39,180 1,269,823 3.48 9.90 -3.08 -0.23 2039 39,840 1,291,213 3.54 10.07 -3.25 -0.29 2040 40,500 1,312,604 3.60 10.24 -3.42 -0.35 (1) Design Year *Population estimates based on Met Council System Statements *Remaining treatment capacity based on current well supply and water purchased from SMSC *Remaining storage capacity based on current 3.25 MGD storage capacity SMSC/Prior Lake, MN – C15.110719 Page 3-1 Water System Evaluation Prepared by Bolton & Menk, Inc. SECTION 3 EVALUATION OF EXISTING FACILITIES A. SMSC 1. Water Supply Currently, SMSC receives water at the South facility from three different wells: Well No. 6, 8, and 10. These wells have capacities of 700, 650, and 700 gpm, respectively. An additional well, Well No. 9, has a capacity of 800 gpm but is not connected to the treatment facility. The total capacity for the three wells connected to the treatment facility is 2,050 gpm with a firm capacity of 1,350 gpm. The wells provide adequate water supply to the treatment plant for current demands. The existing wells are in good condition and should provide an adequate water supply for several more years. 2. Treatment Capacity Both the Enterprise Addition and the ICO subdivision will receive water supply from the South System Water Treatment Plant (WTP) on Sioux Trail. The WTP must have capacity to accommodate peak day demand. The peak day demand in 2014 was 954,000 gpd. This is the highest day demand since the water reuse system started providing the irrigation water. Combining this peak day with the projected peak day for the Enterprise Addition and ICO subdivision results in the following:  Projected peak day demand = 1,291,000 gpd with ICO irrigation demand - Add 20% contingency = 1,549,000 gpd  Projected peak day demand = 1,148,000 gpd without ICO irrigation demand - Add 20% contingency = 1,378,000 gpd The twenty percent contingency amount is added to provide an allowance for other increases in water demand, including increased laundry usage resulting from the Enterprise Addition. The WTP must have adequate capacity to accommodate the peak day demand. The capacity is typically based on the supply wells and filters operating 20 hours per day. It is also based on the largest individual unit of each type not included. This provides redundancy if any single unit is out of operation and is referred to as firm capacity. Table 3.1 shows both the full capacity and firm capacity of the water supply and treatment components and compares it with the projected peak day demand. SMSC/Prior Lake, MN – C15.110719 Page 3-2 Water System Evaluation Prepared by Bolton & Menk, Inc. Table 3.1: South WTP Capacity Evaluation WTP Components Full Capacity (gpd) Firm Capacity (gpd) Projected Peak Day w/ ICO Irr. Demand (gpd) Reserve Capacity (gpd) Projected Peak Day w/o ICO Irr. Demand (gpd) Reserve Capacity (gpd) Wells 2,460,000 1,620,000 1,549,000 71,000 1,378,000 242,000 Filters 1,920,000 1,200,000 1,549,000 -349,000 1,378,000 -178,000 Reverse Osmosis (RO) Units 1,980,000 1,320,000 1,549,000 -229,000 1,378,000 -58,000 This table shows that the WTP can comfortably accommodate the current peak demand of 954,000 gpd at firm capacity. However, it also shows deficiencies in the WTP firm capacity for projected peak day with both the Enterprise Addition plus ICO subdivision including irrigation demand and excluding it. The WTP currently has three wells, three filters, and three RO units. Increasing the WTP capacity would involve adding a fourth filter and fourth RO unit. This would increase the capacity to 1,980,000 gpd. This would accommodate the project peak day and provide an allowance for future growth. Adding the filter and RO unit would trigger the need for another well or connecting Well No. 9. 3. Storage The existing water storage tanks have reserve capacity to accommodate the Enterprise Addition and the ICO subdivision. 4. Summary Table 3.2 provides a brief overview of the system evaluation for the SMSC South Service Area Water Treatment Plant. SMSC/Prior Lake, MN – C15.110719 Page 3-3 Water System Evaluation Prepared by Bolton & Menk, Inc. Table 3.2 SMSC Water Treatment Plant Evaluation Overview System Component Comments 1. Water Supply  Existing well capacity is sufficient for current demands. New well needed with a plant expansion. 2. Water Treatment  Current treatment capacity is adequate for current demands. More capacity needed with increased growth. 3. Water Storage  Water storage facilities are adequate to meet current demands. B. THE CITY OF PRIOR LAKE 1. Water Supply The City of Prior Lake receives water from eight different wells. A summary of the raw water well capacity is presented in Table 3.3. Well number six is not currently connected to the water treatment plant. Table 3.3 Prior Lake Well Information Well No. 3 4 5 6 7 8 9 Year Installed 1973 1975 1988 2001 2003 2006 2007 Inner Casing Dia. (in.) 16 16 24 & 16 30 & 24 12 24 N/A Total Depth (ft.) 364 345 372 410 640 402 N/A Capacity (gpm) 1200 1100 1000 1200 450 1200 450 Pumping Rate (gpm) 1050 950 750 N/A 450 1200 450 Unexpected issues with new well water supplies have resulted in a shortage of raw water supplies to the treatment facility. Analysis of the existing wells indicates that the total capacity for the wells is 4,850 gallons per minute, with a firm capacity of 3,650 gallons per minute. The firm capacity is the capacity with the largest well out of service. A summary of the raw water capacity deficit for the City of Prior Lake is presented in Table 3.4. SMSC/Prior Lake, MN – C15.110719 Page 3-4 Water System Evaluation Prepared by Bolton & Menk, Inc. Table 3.4 Prior Lake Well Pumping Capacity to WTP 20-Hour Pumping 24-Hour Pumping Firm Capacity Total Capacity Firm Capacity Total Capacity Well Capacity (MGD) 4.38 5.82 5.26 6.98 Capacity Deficit* (MGD) 3.12 1.78 2.24 0.52 Capacity Deficit (gpm) 2,167 1,236 1,556 361 *Capacity deficit based on WTP design flow of 7.5 MGD Based on pumping capacity, there is no scenario under which there is an adequate raw water supply. Running the treatment plant for 24 hours per day yields a deficit of only 0.52 MGD. However, running the treatment plant and supply wells for 24-hours per day is not good practice as it does not account for periods of maintenance or equipment failure. However, during peak demands, it may be acceptable to run the wells for 24- hours per day over a short period. Ten State Standards also recommends a firm capacity equal to the maximum design demand. Using these criteria the City of Prior Lake has a deficit of 2.24 MGD or 1,556 gpm of well water supply. 2. Treatment Capacity The City of Prior Lake recently completed construction of a 7.5 MGD iron and manganese filtration treatment facility, which provides adequate water treatment capacity for the next 20 years. However, unexpected supply issues have resulted in a shortage of water supply to the treatment plant. Currently, to meet demand requirements, the City can purchase up to 1 MGD of water from SMSC. By purchasing water from SMSC, the City can meet its current demands. Based on the 20 hour pumping from the wells and the projected peak day demands, future projections indicate there will be a deficit in treatment capacity of 0.13 MGD by 2020. 3. Storage Currently, the City of Prior Lake has 3.25 MGD of storage capacity, which is adequate for current flows. However, future projections indicate there will be a deficit in storage capacity by 2035 unless more storage capacity is added. SMSC/Prior Lake, MN – C15.110719 Page 3-5 Water System Evaluation Prepared by Bolton & Menk, Inc. 4. Summary Table 3.5 provides a brief overview of the system evaluation for the Prior Lake Water Treatment Plant. Table 3.5 Prior Lake Water Treatment Plant Evaluation Overview System Component Comments 1. Water Supply  Current Well Capacity does not meet current demand. Additional water sources are needed. 2. Water Treatment  Current treatment capacity is adequate for current demands but raw water supply is limited. 3. Water Storage  Water storage facilities are adequate to meet current demands. However, a storage deficit is predicted by 2035. SMSC/Prior Lake, MN – C15.110719 Page 4-1 Water System Evaluation Prepared by Bolton & Menk, Inc. SECTION 4 EVALUATION OF ALTERNATIVES A. GENERAL Based on the evaluation of the existing facilities, it is feasible that the needs of both the SMSC South Service Area and the City of Prior Lake can be met through the expansion of the SMSC South Water Treatment Plant. A partnership between SMSC and Prior Lake on the South Treatment Plant expansion could improve water treatment capacity for the SMSC South distribution area and future development in western Prior Lake. Recommendations for water supply, treatment, and storage are discussed separately below. The possibility of a future joint South Water Treatment Facility is also discussed at the end of this section including options to use or not use City wells. B. WATER SUPPLY The SMSC South Service Area currently has three wells that feed the water treatment plant. These wells provide an adequate supply of water to the distribution system during peak demands. However, if the South Service Area WTP were to increase in capacity, a new well would need to be added to increase the raw water supply. The projected peak day demand is 1.55 MGD with the ICO irrigation demand included, while the wells have the capacity to produce approximately 2.46 MGD at full capacity while maintaining a firm capacity of 1.62 MGD. If the current South Service Area treatment plant were to be expanded, another well would need to be added to increase the capacity. Currently, Well No. 9 is not connected to the treatment plant and has a capacity of 800 gpm. If this well were to be connected, the total capacity increases to 2,850 gpm (3.42 MGD) with a firm capacity of 2,050 gpm (2.46 MGD). Adding Well No. 9 would provide SMSC with an adequate water supply for future demands. The City of Prior Lake currently has a well water supply deficit of 1,556 gpm. Therefore, it is recommended to construct a new well, or several new wells that are capable of producing at least 1,556 gpm, which would offer the City of Prior Lake the additional water supplies during peak demands, unless a joint facility is constructed. SMSC/Prior Lake, MN – C15.110719 Page 4-2 Water System Evaluation Prepared by Bolton & Menk, Inc. C. WATER TREATMENT AND STORAGE The City of Prior Lake’s water supply deficit can be mitigated by adding a raw water supply or by adding a treated water supply directly into the distribution system. Adding a treated water supply from the SMSC South Service Area would not only provide the needed water supply, but would also help provide a better water quality to City of Prior Lake. SMSC’s South Service Area WTP has the capacity for additional expansion. There is adequate storage for peak demands and the potential to expand the facility to increase flow by addition of a fourth well and by connecting Well No. 9. Providing a source of treated water for the City of Prior Lake at the SMSC South Water Treatment Plant will help to serve both community’s needs. Therefore, it is recommended to explore option for constructing a joint facility between SMSC and Prior Lake. D. WATER ALLOCATIONS 1. Separate Facilities SMSC Water Treatment Plant The new proposed water treatment facility for the South Service area would be similar to the expansion completed in 2014 to the North Water Treatment Plant. The WTP would have a total capacity of 2.64 MGD (2,200 gpm) and a firm capacity of 1.98 MGD (1,650 gpm). The facility would operate for 20 hours per day and consist of the following: a. Aerator – 2,200 gpm b. Detention Tank – 100,000 gallons i. Detention Time: 45 minutes c. Gravity Filters: 3 at 20’ x 18’ i. 735 gpm each ii. Filtration rate – 2.04 gpm/ft2 d. RO-Backwash Feed/ Water System Feed Clearwells i. RO-Backwash Clearwell – 250,000 gallons ii. Water System Clearwell – 200,000 gallons e. RO Units i. 3 existing + 1 new units ii. Space for 1 future unit SMSC/Prior Lake, MN – C15.110719 Page 4-3 Water System Evaluation Prepared by Bolton & Menk, Inc. f. RO Feed Pumps i. 4 pumps ii. Connection for 1 future pump g. Backwash Pumps i. 2 at 5,500 gpm ii. Backwash rate – 15.3 gpm/ft2 h. High Service Pumps i. 3 at 1,500 gpm i. Chemical Feed i. Antiscalant ii. Sodium Bisulfate iii. Sodium Hydroxide iv. Sodium Permanganate v. Chlorine vi. Fluoride vii. Corrosion Inhibitor j. Backwash Reclaim Tanks i. 2 Tanks at 125,000 gallons each ii. 2 Return Pumps iii. 2 Waste Pumps k. Electrical including generator and controls The new WTP would have concrete filter tanks that have an expected life of about 50 years as compared with the life expectancy of about 25 years for the steel filters in the existing Sioux Trail WTP. SMSC would route Well No. 6, 8, 10, and connect Well No. 9 to the new treatment facility. The existing wells have sufficient capacity (both firm and total) to meet the requirements of a new treatment facility. However, the addition of Well No. 9 would provide for long a long term water supply. If Well No. 9 is connected to a new facility for SMSC, no new wells would need to be drilled. Prior Lake Water Treatment Plant If separate facilities are to be constructed, the size of the Prior Lake WTP would need to be the remaining difference between the projected peak 20 year demand and the current treatment plant capacity. Currently, Prior Lake has a 7.5 MGD treatment plant. However, raw water shortages have led to a need for a new water treatment plant. The design year SMSC/Prior Lake, MN – C15.110719 Page 4-4 Water System Evaluation Prepared by Bolton & Menk, Inc. will be 2036. Based on projected peak day demands and water usage, the peak day demand will be 9.6 MGD (See Table 2.2). The difference in treatment capacity between existing and required is 2.1 MGD. Therefore, a new treatment plant for Prior Lake would need to have a total capacity of 2.1 MGD (1,800 gpm). The new Prior Lake water treatment plant would operate for 20 hours per day and consist of the following: a. Aerator – 1,800 gpm b. Detention Tank – 85,000 gallons i. Detention Time: 45 minutes c. Gravity Filters: 3 at 18’ x 16’ i. 600 gpm gravity filters (each) ii. Filtration Rate – 2.08 gpm/ft2 d. Clearwell i. Clearwell/Backwash Feed Tank – 350,000 gallons e. Backwash Pumps i. 2 @ 4,500 gpm ii. Backwash Rate – 15.6 gpm/ft2 f. High Service Pumps i. 3 @ 1,000 gpm g. Chemical Feed i. Sodium Permanganate ii. Sodium Hypochlorite iii. Fluoride iv. Corrosion Inhibitor h. Backwash Reclaim Tanks i. 2 Tanks @ 125,000 gallons each ii. 2 Return Pumps iii. 2 Waste Pumps i. Electrical including a generator and controls To accommodate a new treatment facility, Prior Lake would need to install new wells to meet the required treatment plant capacity. Currently, the City has Well No. 6 that is used to supplement water into the system during peak demands when there is a water shortage. This water is untreated when it enters the system. Therefore, Well No. 6 would be SMSC/Prior Lake, MN – C15.110719 Page 4-5 Water System Evaluation Prepared by Bolton & Menk, Inc. connected to a new water treatment plant in Prior Lake. The total capacity of Well No. 6 is 1,200 gpm (1.73 MGD) when operating for 24 hours per day. To match water treatment plant operations, the well would operate for 20 hours per day yielding a capacity of 1.44 MGD. Firm capacity is the capacity with the largest well out of service. To meet firm capacity requirements, Prior Lake would need to drill two additional wells capable of producing at least 900 gpm each. 2. Joint Facility – City Wells The City of Prior Lake has indicated during past discussions that they may be interested in being part of a joint water treatment facility. Prior Lake has a 16-inch watermain at County Road 82 and Mystic Lake Boulevard. The proposed WTP location would allow for a convenient connection to their water system. However, efficiencies, which are expected with the larger capacity joint WTP would result in SMSC’s share of the WTP to be less than the cost estimated for a SMSC only WTP. Sale of water to Prior Lake could also generate revenue for SMSC. A joint water treatment facility may prove to be a feasible option to provide a safe and stable source of drinking water to both SMSC and Prior Lake. A joint water treatment facility would operate for 20 hours per day to allow time for backwash and maintenance and it would consist of the following: a. Aerators 2 – 2,000 gpm each b. Detention Tank – 180,000 gallons i. Detention Time: 45 minutes c. Gravity Filters: 6 at 20’ x 16’ i. 667 gpm gravity filters (each) ii. Filtration Rate – 2.08 gpm/ ft2 d. RO-Backwash Feed/ Water Systems Feed Clearwells i. RO-Backwash Clearwell – 250,000 gallons ii. SMSC Clearwell – 200,000 gallons iii. Prior Lake Clearwell – 200,000 gallons e. Prior Lake HSP i. 3 @ 1,000 gpm SMSC/Prior Lake, MN – C15.110719 Page 4-6 Water System Evaluation Prepared by Bolton & Menk, Inc. f. RO Units i. 3 existing + 1 new units ii. Space for 1 future unit g. RO Feed Pumps i. 4 pumps ii. Connection for 1 future pump h. Backwash Pumps i. 2 @ 5,500 gpm ii. Backwash Rate – 17.2 gpm/ ft2 i. High Service Pumps i. 3 @ 1,500 gpm j. Chemical Feed i. Antiscalant ii. Sodium Bisulfate iii. Sodium Hydroxide iv. Sodium Permanganate v. Chlorine vi. Fluoride vii. Corrosion Inhibitor k. Backwash Reclaim Tanks i. 3 Tanks @ 125,000 gallons each ii. 3 Return Pumps iii. 3 Waste Pumps j. Electrical including a generator and controls The proposed joint facility would need to be sized to accommodate the peak demand for both Prior Lake and SMSC. Earlier discussion indicated that a new plant for SMSC would be sized to handle a total capacity of 2.64 MGD. The existing WTP for SMSC contains three RO units. A new joint facility would be designed with space to add a fourth RO unit to increase capacity. The size of the Prior Lake Facility would be designed at 2.1 MGD, based on 20 year future water usage and peak day demands. To achieve the required capacity, wells from both the City and SMSC would be used. Combining the two plant sizes together yields a total required treatment plant capacity of 4.74 MGD. To address the capacity of a joint facility, both the City and SMSC will provide raw water. The goal is to have Prior Lake feed the water they would use to meet SMSC/Prior Lake, MN – C15.110719 Page 4-7 Water System Evaluation Prepared by Bolton & Menk, Inc. peak day demands. To accomplish this, Prior Lake would need to drill new wells. The existing wells would continue to feed the existing treatment plant. For a new treatment plant, the firm capacity of the wells would need to be 1,800 gpm. Well No. 6 is capable of producing 1,200 gpm. To meet firm capacity, additional wells would need to be drilled and be capable of producing at least 900 gpm each, bringing the total raw water supply to 3,000 gpm. SMSC would route Wells 6, 8, 10 to a joint facility and Well No. 9 would be connected to the plant. The addition of all the wells from SMSC would yield a total capacity of 2,850 gpm (3.42 MGD), with a firm capacity of 2,050 gpm (2.46 MGD) based on 20 hours of run time per day (from SMSC). Combining both SMSC and Prior Lake wells and projected wells to be drilled, the total capacity of the raw water supply is 5,850 gpm, (7.02 MGD) of raw water supply, with a firm capacity of 4,650 gpm (5.58 MGD). This greatly exceeds the required demand for a joint facility and provides a long-term solution for both SMSC and Prior Lake. Table 4.1 breaks down the existing well capacities and what is required to feed a joint facility. In order to provide an adequate water supply to each community, Prior Lake will have to install two wells capable of producing 900 gpm each and SMSC will have to connect Well No. 9. SMSC/Prior Lake, MN – C15.110719 Page 4-8 Water System Evaluation Prepared by Bolton & Menk, Inc. Table 4.1 Projected Raw Water Supply with New Wells Prior Lake Wells Well No. Capacity (gpm) Capacity (MGD) (3) Existing Well No. 6 (Wilds Well) 1,200 1.44 New Well(1) 900 1.08 New Well(1) 900 1.08 SMSC Wells Well No. Capacity (gpm) Capacity (MGD) (3) Existing Well No. 6 700 0.84 Existing Well No. 8 650 0.78 Well No. 9(1) 800 0.84 Existing Well No. 10 700 0.96 Total Total Capacity SMSC + Prior Lake 5,850 7.02 Firm Capacity SMSC + Prior Lake(2) 4,650 5.58 (1) New wells to be drilled or connected to a Joint Facility (2) Capacity without largest well (Prior Lake Well No. 6) (3) Capacity (MGD) based on 20 hour per day operation 3. Joint Facility – No City Well As stated earlier, a joint facility would need to be design with a capacity of 4.74 MGD to accommodate current and future flows for the next 20 years for both the SMSC South Service Area and the City of Prior Lake. The components and sizes for a joint facility are described above. A joint WTP would utilize the three existing wells for SMSC located near the current Sioux Trail WTP and Well No. 9. All of these wells would be provided by SMSC. A joint facility would have a total required capacity of 4.74 MGD. The SMSC wells have the capacity to meet the demands for SMSC, but additional wells would need to be drilled to meet the demand for Prior Lake. The projected Prior Lake demand is 2.1 MGD. To reduce the demand from Prior Lake, Well No. 6 would be connected to the facility, but no other Prior Lake Wells would be connected. Well No. 6 has a total capacity of 1,200 gpm. The additional four wells from SMSC can produce 2,850 gpm total. To make up the difference between the required treatment plant capacity of 3,950 gpm (4.74 MGD) and SMSC/Prior Lake, MN – C15.110719 Page 4-9 Water System Evaluation Prepared by Bolton & Menk, Inc. the current raw water supply provided of 2,850 gpm, SMSC would need to drill another well capable of producing at least 1,100 gpm. This will meet firm capacity requirements for the facility. The breakdown of well capacity is shown in Table 4.2. The requirements for a joint facility indicate that Prior Lake will not drill any new wells but they will need to connect Well No. 6 and SMSC will need to connect Well No. 9 and drill one more well capable of producing at least 1,100 gpm. Table 4.2 Projected Raw Water Supply with New SMSC Wells Prior Lake Wells Well No. Capacity (gpm) Capacity (MGD) (5) Well No. 6 1200 1.44 SMSC Wells Well No. Capacity (gpm) Capacity (MGD) (5) Well No. 6 700 0.84 Well No. 8 650 0.78 Well No. 9(1) 700 0.84 Well No. 10 800 0.96 New Well(2) 1100 1.32 Total Total Capacity 5150 6.18 Firm Capacity (4) 3950 4.74 (3) (1) Connect existing well to joint facility (2) New well(s) to be drilled (3) Meets joint facility minimum capacity (4) Capacity with largest well out of service (Prior Lake Well No. 6) (5) Capacity (MGD) based on 20 hour per day operation SMSC/Prior Lake, MN – C15.110719 Page 5-1 Water System Evaluation Prepared by Bolton & Menk, Inc. SECTION 5 COST ESTIMATE & PROPOSED IMPLEMENTATION A. GENERAL This section explains the costs of the proposed alternatives described in section 4. The section also discusses project financing and proposed implementation of the alternatives. B. COST ESTIMATE Estimated construction costs for a SMSC only Water Treatment Plant, Prior Lake only Water Treatment Plant, and SMSC-Prior Lake Joint Water Treatment Plant are presented in Table 5.1. The construction of two separate facilities results in a total estimated construction cost of $29,058,500 compared to an estimated construction cost of $19,472,250 for the joint water treatment facility. Table 5.1 Estimated Construction Costs Water Treatment Facility June 2016 ITEM NO. ITEM DESCRIPTION ESTIMATED COST SMSC Prior Lake Joint Facility 1 Performance 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 7 Rough & Finished Carpentry $75,000 $75,000 $85,000 8 EPDM Roofing, Insulation, Caulking $145,000 $145,000 $245,000 9 H.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 Table 5.2 provides the joint facility construction cost breakout that should be associated with SMSC and the City of Prior Lake. SMSC/Prior Lake, MN – C15.110719 Page 5-2 Water System Evaluation Prepared by Bolton & Menk, Inc. Table 5.2 Estimated Construction Costs Breakout Joint Water Treatment Facility June 2016 ESTIMATED COST BREAKOUT ITEM NO.ITEM DESCRIPTION Joint Facility SMSC Prior Lake 1 Performance Bond & Insurance $425,000 $233,750 $191,250 2 Mobilization $550,000 $302,500 $247,500 3 Excavation, Utilities, Roads, Landscaping $2,650,000 $1,457,500 $1,192,500 4 Reinforcing Steel, Concrete Work, Precast $2,750,000 $1,650,000 $1,100,000 5 Masonry $1,250,000 $750,000 $500,000 6 Structural & Miscellaneous Metals $325,000 $178,750 $146,250 7 Rough & Finished Carpentry $85,000 $46,750 $38,250 8 EPDM Roofing, Insulation, Caulking $245,000 $134,750 $110,250 9 H.M. Doors, Overhead Doors $140,000 $77,000 $63,000 10 Painting and Interior Finishes $325,000 $178,750 $146,250 11 Process Equipment $3,150,000 $1,890,000 $1,260,000 12 Process Piping & Mechanical $2,950,000 $1,770,000 $1,180,000 13 Electrical, Controls & Generator $2,700,000 $1,620,000 $1,080,000 14 2 – Additional Wells $0 $0 $0 15 Raw Water Lines $1,000,000 $0 $1,000,000 Subtotal $18,545,000 $10,289,750 $8,255,250 Contingency – 5%$927,250 $514,488 $412,763 ESTIMATED CONSTRUCTION COST $19,472,250 $10,804,238 $8,668,013 As shown in Table 5.2, there is a significant savings for both SMSC and the City of Prior Lake by constructing a joint water treatment facility that will serve both community’s needs as opposed to constructing separate facilities. C. PROJECT FINANCING The City of Prior Lake’s portion of the project will be funded by the sale of a bond to SMSC. The City of Prior Lake will pay for the Bond to SMSC at a rate of 3% over a 25- year period. Based on the Construction Cost Estimate for the Joint Facility as presented in Table 5.1, and the City’s share of that cost as determined in Table 5.2 and the purchase of 1,200,000 gallons per day equates to a yearly payment of $497,760 or $1.14/ 1,000 gallons used. The actual payment would vary depending on actual construction costs. In addition to the yearly bond costs, the City of Prior Lake would also pay operation and maintenance costs for their portion of the treated water, along with yearly payments to SMSC/Prior Lake, MN – C15.110719 Page 5-3 Water System Evaluation Prepared by Bolton & Menk, Inc. fund equipment replacement in the future. The yearly maintenance cost to be paid to SMSC by the City of Prior Lake would be $15,000 to cover materials and labor associated with and equipment maintenance or repairs. SMSC would also receive reimbursement from the City of Prior Lake for seven (7) hours/week of operator fees. This would result in a yearly payment of $28,400. Equipment replacement funds are presented in Table 5.3, and would result in a yearly payment of $35,000 to SMSC from Prior Lake. The total yearly payment to SMSC from the City of Prior Lake for operations, maintenance and future equipment replacements (OM&R) would be $78,400 or $0.10/1,000 gallons of water used. The City of Prior Lake would also pay the electrical costs associated with power for equipment operations and chemical costs associated with the volume of water pumped to their distribution system. Table 5.3 Equipment Replacement Funds Joint Water Treatment Facility June 2016 Replacement Schedule Replacement Cost Yearly Contribution to Replacement Fund Prior Lake Portion of Replacement Fund Equipment Replacement 15 Years $500,000 $33,000 $22,000 Filter Rehabilitation 20 Years $360,000 $18,000 $9,000 Well Pulling/ Maintenance 5 Years $75,000 $15,000 $4,000 Total $935,000 $66,000 $35,000 Based on the City of Prior Lake receiving a minimum of 1,200,000 gallons per day (438 million gallons per year) of treated water from the new joint WTP, the annual anticipated payment from the City of Prior Lake is $810,300. The breakout of operating expenses and bond payments are shown in Table 5.4. Should the City use more than the 438 million gallons annually, the additional charge for treated water would only include the cost of power and chemicals. SMSC/Prior Lake, MN – C15.110719 Page 5-4 Water System Evaluation Prepared by Bolton & Menk, Inc. Table 5.4 Operating Expenses and Bond Payments Expense Item Cost per 1,000 Gallons OM&R Costs $0.18 Electrical Costs $0.25 Chemical Costs $0.28 Bond Payment Costs $1.14 Total Costs $1.85 D. IMPLEMENTATION SCHEDULE A proposed implementation schedule for the joint water treatment plant is presented in Table 5.5. Table 5.5 Implementation Schedule Joint Water Treatment Facility ITEM DATE 1. Presentation to Both Councils June 2016 2. Approve Study and Cost Sharing Agreement September 2016 3. Prepare Plans and Specifications October – December 2016 4. Review and Approval of Contract Documents January – February 2017 5. Project Construction April 2017 – November 2018 SMSC/Prior Lake, MN – C15.110719 Page 6-1 Water System Evaluation Prepared by Bolton & Menk, Inc. SECTION 6 ADDITIONAL CONSIDERATIONS A. GENERAL This section discusses additional considerations for water supply and water conservation. The content discussed in this section provides information on how to conserve water through various methods and addresses alternate sources of water for drinking and irrigation. B. REGIONAL WATER SUPPLY PLANNING C. WATER CONSERVATION 1. Irrigation Practices Irrigation is a common practice by many homeowners to keep lawns green during the summer months. During wet summers, homeowners do not need to irrigate as often because of the increased natural rainfall. During dry summers however, irrigation spikes as homeowners try to keep lawns green. These dry summers can stress water supply sources and potentially cause a shortage of water in the distribution system. One option to reduce the effect of irrigation on the water supply is to regulate when irrigation can occur. Irrigating on odd days reduces the volume of water used for irrigation while maintaining green lawns. Also, irrigating at night reduces the amount of water lost to evaporation. As the communities of SMSC and Prior Lake continue to grow, it is important to consider several different practices concerning irrigation to help mitigate the effect irrigation has on the water supply system. 2. Educational Efforts Educational play a major role in water conservation and how certain practices can be implemented in homes and communities. These practices range from installing efficient fixtures in homes to less irrigating to buying water efficient appliances. Several agencies have articles that describe these practices. They include: SMSC/Prior Lake, MN – C15.110719 Page 6-2 Water System Evaluation Prepared by Bolton & Menk, Inc.  Minnesota Rural Water Association  US Environmental Protection Agency  Alliance for Water Efficiency  Metropolitan Council  American Water Works Association D. ADDITIONAL WATER SOURCES 1. Storm Water for Irrigation Another source of water for irrigation is storm water. During storm events, water can be collected and then stored for later use by irrigation. Storm water retention ponds can be added with control structures that allow water to remain in the ponds until needed for irrigation. One drawback to this system is that it has to rain in order for water to fill the ponds. During dry years, ponds may never fill and irrigation cannot occur. During wet years, the ponds may overflow because nobody needs irrigation water because of the increased natural rain fall. 4646 Dakota Street SE Prior Lake, MN 55372 RESOLUTION 16-090 A RESOLUTION SUPPORTING DESIGN OF A JOINT WATER TREATMENT PLANT WITH THE SHAKOPEE MDEWAKANTON SIOUX COMMUNITY Motion By: McGuire Second By: Keeney WHEREAS, The Shakopee Mdewakanton Sioux Community (SMSC) and the City of Prior Lake both have water source, treatment and storage needs which should be operational by 2019; and WHEREAS, The SMSC will be starting the design process for a new treatment plant in 2016 ; and WHEREAS, The SMSC and the City of Prior Lake conducted a collaborative study to evaluate the future water needs of both communities and potential options for supplying those needs; and WHEREAS, The study showed that there is a cost benefit to both communities to construct a joint water treatment facility including storage and source options to supply these needs; and WHEREAS, The study looked at two options for supply of the source water that included SMSC owned and operated wells and City of Prior Lake owned and operated wells. NOW THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE, MINNESOTA as follows: 1. The recitals set forth above are incorporated herein. 2. The City Council supports the SMSC designing the Water Treatment Plant to incorporate the future water treatment needs of the City of Prior Lake. 3. The City Council supports making use of existing source water wells with future City supply wells being owned by the City. 4. The City Council directs staff to develop a draft water supply agreement with the SMSC. PASSED AND ADOPTED THIS 11th DAY OF JULY 2016. VOTE Hedberg Keeney McGuire Morton Thompson Aye Nay Abstain Absent Frank Boyles, City Manager 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 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) 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) 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 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) 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 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 1 Performance 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 7 Rough & Finished Carpentry $75,000 $75,000 $85,000 8 EPDM Roofing, Insulation, Caulking $145,000 $145,000 $245,000 9 H.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 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) 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 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