HomeMy WebLinkAbout2023 09 11 Regular 504 - Veolia Flow and Loading AdjustmentREGULAR AGENDA ITEM 504
CITY COMMISSION AGENDA | SEPTEMBER 11, 2023 REGULAR MEETING
TITLE
Veolia Flow and Loading Adjustment
SUMMARY
The economic climate in fiscal year 2022 and continuing into 2023 has been
exceptional. Consumer Price Index values have been over 8% and utility indices have
been even higher due to COVID, supply chain disruptions and other Force Majeure
events beyond the reasonable control of Veolia. These costs affect everything in the
operation of the utility treatment facilities and lift stations including labor, chemicals,
materials, etc. In addition to extraordinary inflationary pressures, the facilities have
experienced increased flow and loadings causing multiple financial impacts.
The facilities have experienced increased flow and loadings which constitute a Change
in Scope under Section 10 of the Agreement. Section 10.1.4 of the Agreement provides
that a Change in Scope occurs when flows from the potable water treatment plants
and to the water reclamation facilities and the influent loadings to the reclamation
facilities exceed 10% of the baseline flow and loading values contained in Appendix C-
1 of the Agreement. Potable water flows have exceeded the 10% threshold from the
end of 2021 through 2022 to the present date in 2023. Wastewater influent flows have
exceeded the 10% threshold from September 2022 to the present date. Wastewater
influent loadings exceeded the 10% threshold in 2022 and continue to the present
date in 2023. These events and circumstances constitute Change in Scope under
Section 10 of the Agreement for which Veolia is entitled to an increase in
compensation under Section 10.2 of the Agreement.
[SEE TABLES ON FOLLOWING PAGE]
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FLOWS AND LOADINGS
AGREEMENT VALUE PER APPENDIX C AGREEMENT
VALUE PLUS 10%ACTUAL VALUE1
WTP #1 1.968 MGD
3.954 MGD 4.52 MGD
WTP #2 0.749 MGD
WTP #3 0.878 MGD
TOTAL WTP FLOW
= 3.595 MGD
EAST WRF 1.092 MGD
2.389 MGD 2.46 MGDWEST WRF 1.080 MGD
TOTAL WRF FLOW
= 2.17 MGD
EAST WRF BBOD 1,428.76 lbs/day
2,920.76 lbs/day 3,765.95 lbs/dayWEST WRF BOD 1,226.48 lbs/day
TOTAL BOD = 2,655.24 lbs/day
EAST WRF TSS 1,782.00 lbs/day
2,885.96 lbs/day 3,585.79 lbs/dayWEST WRF TSS 841.60 lbs/day
TOTAL TSS = 2,623.60 lbs/day
1. Values are for FY 2022 (October 2021 through September 2022)
FISCAL YEAR 2022 (OCTOBER 2021 THROUGH SEPTEMBER 2022) COSTS
Electricity Above Baseline1 $68,949
Sodium Hypochlorite Above Baseline1 $51,136
Orthophosphate Above Baseline1 $22,539
Polymer Above Baseline1 $13,200
SludgeAbove Baseline1 $49,806
TOTAL FOR 12 MONTHS PLUS 10% =$226,193
1. Cost is associated with the flow and loading above specified amounts listed in Agreement Appendix C
To address the financial impacts of flows and loadings, the following adjustments are
proposed:
1. A one time payment for 2022 costs of $226,193 for flow and loading increases.
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2. Include the adjustment as a supplemental payment to the base fee for fiscal year
2024 and future years to be invoiced on a monthly basis (1/12 of the cost
adjustment).
FUNDING SOURCE
RECOMMENDATION
Staff recommends the City Commission approve the request of $226,193 for FY 2022
(October 1, 2021 through September 30, 2022) as a lump sum payment and approved
as a supplemental payment to the base fee for FY24 and subsequent years invoiced
on a monthly basis. The request is authorized in paragraph 10.1.4 and 10.2 of the
Agreement. The additional flows and loadings were not anticipated when the
Agreement was executed and the City has control of the potable water distribution
and wastewater collection system (lines). Additionally, authorization for the City
Manager and City Attorney is requested to prepare and execute any and all applicable
contract documents consistent with this Agenda item.
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