City of Craig Water System Chlorine Residual Disinfection

City of Craig Water System Chlorine Residual & Disinfection Byproducts Compliance Project Progress and Budget Update February 11, 2020 Rick Huggins, PE, Ph. D – Drinking Water Engineer, SGM rickh@sgm-inc. com 970 -384 -9085 City of Craig City Council Meeting February, 11 th 2020

What is Problem We’re Working to Solve? • The City uses chlorine as a residual disinfectant in its potable water system. • The chlorine levels the City is able to maintain are less than the State’s new required minimums effective in April 2020. • Just adding more chlorine alone would create another problem, DBPs City of Craig City Council Meeting February, 11 th 2020

Why does the City have this problem? Chlorine Dose + Natural Organic Matter Disinfectant (Req’d) Temperature & Time Chlorine Residual + Chlorinated Organic Matter High levels in River & Reservoir Water Lots of reaction time in Craig’s Water System Regulated Disinfection Byproducts (DBPs) City of Craig City Council Meeting February, 11 th 2020

Why is it important to solve this problem? No. 1 – Public Health Protection • Disinfectant residual protects against waterborne disease transmission. (Acute health outcome) • Disinfection by-products are regulated as probable human carcinogens. (Chronic health outcome) No. 2 – Public Confidence • Regulatory Violations erode public confidence – in the water utility – in City government City of Craig City Council Meeting February, 11 th 2020

Distribution System Improvements Make Sense 1. Reduce water age where it is very high a) >3 weeks approx. 10 days b) Greater age reduction needed with free chlorine 2. Improve water quality in storage tanks a) Mixers to eliminate stratification 3. Boost disinfectant residual at strategic locations a) More uniform disinfectant concentrations. b) More boosting stations needed with free chlorine City of Craig City Council Meeting February, 11 th 2020

WTP Improvements: Monohloramine City of Craig City Council Meeting February, 11 th 2020

Project Status 1. Good Quality § Project being completed at or above specifications. 2. On budget § § Projected to use $3, 128, 000 out of $3, 375, 000 engineer’s estimate Combination of grants, SRF loan, and cost share requirements resulted in City budgeting $5, 200, 000 in 2019 3. Schedule Delays § § Categorical Exclusion (Environmental) Full CDPHE construction approval Unexpected lead times (10 weeks for AIS compliant valves) Normal construction issues typically covered under schedule contingency City of Craig City Council Meeting February, 11 th 2020

Progress Report a) Finley Lane BPS – New PRV Loop City of Craig City Council Meeting February, 11 th 2020

Progress Report a) Liquid ammonium sulfate (LAS) storage tanks and chemical metering pumps City of Craig City Council Meeting February, 11 th 2020

Progress Report a) Upgraded Na. OCl Generation Capacity b) New Na. OCl Pumps installed City of Craig City Council Meeting February, 11 th 2020

Project Planning Budget Line Year Budget or Description No. Expenditure Budget 1 2018 $585, 000 2 2018 -$90, 000 Funds budgeted for 2018 for chlorine/DBP compliance project under PO’s 5793 $585, 000 and 5950 (City Budgeting) Expenditure under PO-5793 in 2018 (SGM) $495, 000 3 2018 -$408, 711 Actual expenditure under PO-5950 for design services in 2018/2019 (SGM) $86, 289 4 2019 $1, 000 DOLA Tier I EIAF Grant obtained $1, 086, 289 5 6 7 2019 $360, 000 $2, 840, 000 $1, 000 SRF Principal Forgiveness Grant obtained SRF Loan obtained at 0. 5% interest (shown with principal forgiveness grant) City funds allocated to construction $1, 446, 289 $4, 286, 289 $5, 286, 289 8 2019 $180, 465 Funds added to PO-5950 for construction engineering (SGM) $5, 466, 745 9 2019 -$1, 085, 080 Construction contract payments YTD (VCI, pay applications 1 -5) $4, 381, 665 10 2020 -$1, 435, 498 Construction contract finished (VCI) $2, 946, 167 11 2019 -$60, 651 Construction change orders (VCI, add tank mixing at Pineridge Tank) $2, 885, 516 12 2020 -$300, 051 Engineering - construction services contract complete (SGM) $2, 585, 465 13(A) 2020 $0 Estimated outlay $2, 585, 465 13 2020 -$1, 000 City re-allocates $1, 000 in water enterprise funds elsewhere $1, 585, 465 14 2020 -$1, 585, 465 Unused portion of approved funds from SRF loan program debited back to principle or re-allocated $0 (A)… The remaining $2, 585, 465 shown in this project budget will not all be present in the City’s budget at the end of the project. Rather, the City may not need to contribute the $1, 000 in water enterprise funds to this project which reduces the total outlay at project end to $1, 585, 465 which is best interpreted as unused SRF funds. The SRF program operates through reimbursements rather than direct cash, therefore some of the SRF loan amount may not be utilized. City of Craig City Council Meeting February, 11 th 2020

Engineering and Construction Budgets Engineering – Design (SGM) Construction Engineering – Costs – Nov 2019 Costs – Jan 2020 Construction (SGM) Costs – Nov 2019 Costs – Jan 2020 (VCI) City of Craig City Council Meeting February, 11 th 2020

Budget/Schedule Summary 1. Overall Project Budget: – Projected to use $3, 128, 000 out of $3, 375, 000 budgeted funds 2. Engineering Budget: – Projected to use $213, 000 out of $300, 000 budget estimate for construction services Design budget was completed at approximately $85, 000 below estimate. – 3. Construction Budget: – – – Original Contract Amount ($2, 526, 000) Change Order for Pineridge Mixing ($61, 000) Minor Change Order (MCR) Fund Use ($42, 000 out of $120, 000) • MCR Fund is for small changes, incidentals, contingency and is 5% of base contract price. City of Craig City Council Meeting February, 11 th 2020

Project Schedule Milestone Date Completion (Actual/ Projected) Milestone Description 5/7/2019 Bid Period Close Bids were received from 3 qualified GCs 5/29/2019 6/25/2019, Cat. Ex – 7/8/2019 Notice of Award Notice to Proceed (Conditional) Project awarded to Velocity Constructors, Inc. Contract executed and supplied to Velocity. Conditional NTP supplied covering all work outside of WTP (pending CDPHE approval) 7/15/202 Early October 2019 Notice to Proceed (Full) After obtaining verbal CDPHE approval, full NTP issued. Written notification of approval obtained 10/28/2019 11/1/2019 1/15/2020 – 3/01/2020 Distribution System Shakedown Control valves, tank mixing, and disinfectant boosting stations are operational. Begin verifying functionality and place in service as appropriate. Water Treatment Plant Shakedown Substantial Completion New equipment is installed, SCADA controls are operational, sequentially start up new pumps and processes using only potable water. Contract milestone, all equipment is installed, and facilities are complete, operation of major equipment/facilities is handed over to City. 12/15/2019 3/1/2020 – 3/20/2020 1/11/2020 2/17/2020 2/11/2020 2/27/2020 Week of 3/16/2020 Disinfectant Switch or 3/23/2020 and Monitoring After 4/1/2020 Final Acceptance 4/1/2020 5/15/2020 6/1/2020 City begins quenching free chlorine with ammonia. Velocity has finished construction and completed the project punchlist and closeout process with SGM and the Owner. CDPHE Compliance CDPHE compliance date for maintaining 0. 2 mg/L residual (measured as Date chlorine). st 1 Round of TCR City must complete bi-monthly TCR sampling program in April and these Sample Results Due samples must comply with the 0. 2 mg/L disinfectant residual requirement. End of engineering Process and technical support by SGM is complete. support City of Craig City Council Meeting February, 11 th 2020

Schedule Summary 1. Schedule: – – – 4 -6 weeks behind schedule Still anticipating meeting the April compliance deadline General conditions costs not being passed on to City. 2. Upcoming Work: – – – – Complete work at WTP Startup new facilities and ensure automatic operation Convert to monochloramine in late march Distribution system conversion will take up to two weeks First TCR sampling round in April to be compliant L&C study with City and CDPHE is wrapping up SGM finishing a conversion plan in conjunction with City and CDPHE, will be reviewed by CDPHE lead drinking water engineer prior to conversion City of Craig City Council Meeting February, 11 th 2020

Questions City of Craig City Council Meeting February, 11 th 2020