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HomeMy WebLinkAbout13-026 Pursue Filtration to Address State of Washington Department of Health Water System Treatment Requirements Resolution 13-026 Surface Water Treatment Compliance Pagel of 3 RESOLUTION NO. 13-026 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORT TOWNSEND, WASHINGTON TO PURSUE FILTRATION TO ADDRESS STATE OF WASHINGTON DEPARTMENT OF HEALTH (WSDOH) WATER SYSTEM TREATMENT REQUIREMENTS FOR SURFACE WATER TREATMENT RULE COMPLIANCE A. The Resolution provides City Council's decision to pursue filtration to address State of Washington Department of Health(WSDOH) water system treatment requirements for Surface Water Treatment Rule Compliance. The City Manager is directed to notify WSDOH of the City's decision. The City Manager is also directed to: (1) Develop and work with WSDOH to develop an action plan in connection with creating a`Bilateral Compliance Agreement" (BCA); (2) Work with the City's consulting engineering firm HDR to develop filtration alternative proposals and bring those proposals to City Council for review and approval, and perform other follow-up actions directed by WSDOH in its August 23, 2013 letter; and (3) Investigate additional funding from other sources to lower the impact on customers from the increased treatment costs necessitated by having to install filtration. B. On July 15, 2013, following years of review of various options to address water system treatment requirements, the Council authorized awarding the bid and contract with Xylem-WEDECO Products for purchase of ultra violet (UV) equipment for the Water Treatment Facility. That contract was on hold pending receipt of information from WSDOH on additional watershed control requirements. C. For the City to maintain its unfiltered status, it must demonstrate that it has adequate control of the watershed. Since 1994,the City, in cooperation with the United States Forest Service (USFS), has maintained control over the watershed. The WSDOH has now changed its policy attention to question whether or not the current level of control is adequate to remain unfiltered. The City Manager asked WSDOH to offer their opinion on what the minimum level of control would be necessary to satisfy their new concerns with watershed control. D. On August 9, 2013, WSDOH reported its findings based on its inspection of the watershed for the City's water system. The August 9 letter outlines what the minimum requirements would be and what must be a part of a new watershed management plan to allow for use of UV treatment and remain in a permitted unfiltered status. E. Separately, as a follow-up to the annual inspection by WSDOH, WSDOH has now taken to address their concerns with the City's actions and decision via a regulatory action. WSDOH by letter dated August 23, 2013 letter provided formal notice to the City of a pending regulatory action by WSDOH. F. The WSDOH is finding that the City and United States Forest Service (USFS) do not have currently adequate control over the watershed and therefore the City must do one of two things: establish control of the watershed or provide filtration. They have ordered the Resolution 13-026 Surface Water Treatment Compliance Page 2 of 3 City to notify them no later than September 20, 2013 which option the City elects to pursue. Based upon the City's action, they are ordering the City to enter into a"Bilateral Compliance Agreement" (BCA). G. WSDOH's August 23, 2013 letter stated: "This letter is not meant to be a reprimand. You have always worked collaboratively with us and responded promptly to our requests, and we value this partnership. This situation is mostly the result of the economic downturn exposing a weakness in the City's watershed control program. The City relies heavily on its partners to implement the CWPP but has no authority to make them perform the duties described within. As budgets have declined and priorities have shifted, many of the activities have not been performed and the City has limited resources to fill in the gaps." H. Staff has reviewed the watershed management expectations and the options of filtration with WSDOH and the City's consulting engineers (HDR). The City Manager, the Public Works Director and the consulting engineers all concur that the conditions and expectations to maintain control of the watershed are not only expensive but unachievable, and that filtration appears to be the only viable option for the City to consider. I. HDR has prepared a summation of filtration options and estimated costs. Staff concurs with the recommendation that membrane filtration is the City's best alternative. Staff and HDR have also addressed the timeline and ability to meet the objectives to develop the site, construct a new reservoir, and comply with the Surface Water Treatment Rule. J. The cost of filtration is estimated to add an additional $3 to $5 million dollars to the LT2ESWTR project budget. The recent rate model approved by Council assumed that UV would be $3 million more than what the engineer's 60% design cost estimate. Staff had hoped that the possible cost savings with UV could have offered a rate reduction from the scheduled increase in 2018. Forcing the decision to install filtration will not allow this and may cause an additional increase. The recommended alternative will also require pilot testing. This testing is not to see if it will work, but is designed to measure performance to accurately size the system, hence the revised schedule to accelerate the design and construction of the reservoir. K. Staff is also recommending Council direct staff to look for additional funding from other sources to lower the impact on customers. Under a BCA, the City would have additional standing towards eligibility for preferred loans and grants. There is a Trust Fund loan of $2.1 million in place for the reservoir. There is also a possibility that the City may to seek a mitigation grant from the USFS in an amount equal to the expense currently associated with watershed management. L. The City Council reviewed this matter as a workshop meeting on September 9, 2013 and a regular meeting on September 16, 2013. Following this review, and based on the above, the Council accepts the recommendation of the City Manager and the Public Works Director to adopt filtration to address water system treatment requirements Resolution U-026 Surface Water Treatment Compliance Page 3 of 3 required by federal and state regulation. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Port "Townsend as follows: 1. The City Council adopts filtration to address State of Washington Department of Health (WSDOH) water system treatment requirements for Surface Water Treatment Rule Compliance. 2. The City Manager is directed to: a. Notify WSDOH of the City Council's decision. b. Develop and work with WSDOH to develop an action plan in connection with creating a`Bilateral Compliance Agreement" (BCA), and perform other follow- up actions directed by WSDOH in its August 23, 2013 letter. c. Work with the City's consulting engineering firm HDR to develop proposals to filtration alternative proposals and bring those proposals to City Council for review and approval. d. Investigate additional funding from other sources to lower the impact on customers from the increased treatment costs necessitated by having to install filtration. ADOPTED by the City Council of the City of Port Townsend at a regular meeting thereof, held this 16`" day of September 2013. r David King, Mayor Attest: Approved as to form: 1 rrt_ Pamela Kolacy, MMC John P. Watts City Clerk City Attorney