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<br /> <br />REQUEST FOR ACTION <br /> <br />To <br />Ci Council <br />Agenda Section <br />Administration <br />Item Description <br />Resolution Approving the Plans and Specifications and <br />Ordering the Advertisement for Bids in the matter of the <br />Wastewater Treatment Plant Phase II Improvement of 2007 <br /> <br />Meeting Date <br />A st 6, 2007 <br /> <br /> <br />Administrator <br /> <br />Action Requested <br />Consider adoption of Resolution Approving the Plans and Specifications and Ordering the <br />Advertisement for Bids for the Wastewater Treatment Plant Phase II Improvement and authorize <br />an expenditure not to exceed $4,500 for Ehlers and Associates to complete an updated utility rate <br />study. <br /> <br />BackKround/Discussion <br />As previously discussed with the City Council, the WWTP Phase II Improvement is the last <br />improvement at the Treatment Plant due to added treatment requirements by the Minnesota <br />Pollution Control Agency (MPCA). Future expansions of the WWTP will be driven by <br />development of the City and increased flow to the plant. The major components of the Phase II <br />improvement are as follows: <br /> <br />1. A new building containing a mercury reduction sand filter process. <br />2. Replacement and additional equipment in the ultraviolet disinfection building that <br />currendy exists on the site. <br />3. Providing permanent on-site generation for operation during electrical service disruption. <br />4. An addition to the garage building, adding an enlarged garage stall for the jet truck which <br />currendy just barely fits into the existing building. The garage stall freed up by the new <br />addition will be utilized to house smaller equipment. <br />5. Miscellaneous and piping improvements around the site. <br /> <br />Approval to bid Phase II is being requested from the Council now; however, the MPCA must <br />approve the plans before the project can be awarded so advertisement for bid will happen after we <br />receive preliminary approval from MPCA. The specifications and timing for the project call for <br />the majority of construction to start next spring. <br /> <br />The utility rate study is necessary since the last utility rate study was done many years ago. Sewer <br />rates have increased slighdy each year to help offset inflationary increases in operating costs. <br />Recent changes in our permit limits have required additional treatment which in turn increases <br />operating expenses. These additional treatment costs now need to be included in the rates. With <br />a projected slowdown in the SAC revenue, population growth, Phase II, and future Phase III <br />expansions it seems the appropriate time to review the rates for the Sewer Fund. Ehlers and <br />Associates have conducted numerous studies and would be ideal for the City of Elk River, since <br />