Discussion and possible action to approve a budget transfer in an amount not to exceed $329,026 from the Beardsley Solids Pipeline Rehabilitation Project account to the Butler Water Reclamation Facility Equipment Upgrade and Replacement Program account to complete the electrical assessment to partially fund rehabilitation of the Butler Water Reclamation Facility intake structure. 

The City’s Beardsley Solids Pipeline Rehabilitation project (UT00308) is now complete and functions as intended. This project, budgeted in the CIP, has an excess of $329,025.78 remaining. The purpose of this action is to transfer these funds into the Butler Water Reclamation Facility (Butler WRF)  Equipment Upgrade and Replacement Program (UT00333) and allow them to be used for the Butler WRF electrical assessment and intake rehabilitation projects. The electrical assessment would be conducted in fall of 2020 if Council approves the budget transfer.

The Butler WRF was constructed in 2008 and has undergone several equipment and process upgrades over the past 12 years. Some components of the plant’s electrical system have become obsolete or underrated due to these upgrades. To help resolve this, Water Services staff is recommending a study and assessment of the plant’s full electrical system to identify aging or obsolete electrical equipment and make recommendations for maintenance or replacement of electrical components. However, the Butler WRF Equipment Upgrade and Replacement Program (UT00333) does not currently have adequate budget allocated in the approved FY21 Capital Improvement Program (CIP) to include the cost of the study and associated maintenance work, which is expected to be approximately $182,000.

If approved, Water Services will use funds transferred from UT00308 to UT00333 in excess of what is required to complete the electrical assessment to partially fund rehabilitation of the Butler WRF intake structure. The Butler intake and associated apparatus, such as fine screens, have experienced significant deterioration due to corrosive sewer gasses contained in the system. After careful analysis, it has been determined that a temporary intake structure is required that will allow sewer flows to be diverted around the permanent intake structures, which are slated for rehabilitation in near future. Although the excess funds from UT00308 will not completely fund estimated costs for the rehabilitation of the permanent intake structure, they will be sufficient to commence needed design work and better define project costs that can be subsequently budgeted in the CIP for a permanent solution.

There have been no previous actions, this is a new item.

A: Approve the budget transfer from the Beardsley Solids Pipeline Rehabilitation Project to the Butler WRF Equipment Upgrade and Replacement Program.

B: Deny approval of the budget transfer from the Beardsley Solids Pipeline Rehabilitation Project to the Butler WRF Equipment Upgrade and Replacement Program.

Staff recommends approval of the budget transfer.

The adopted FY2021 budget for the Butler WRF Equipment Upgrade and Replacement Program (UT00333) is not sufficient to cover the cost of the electrical study and other required work at the Butler WRF. Therefore, $329,025.78 is being requested to be transferred from the Beardsley Solids Pipeline Rehabilitation project account (2400-2550-CIPWW-543003-UT00308) to Butler WRF Equipment Upgrade and Replacement Program account (2400-2550-542006-CIPWW -UT00333).