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195 North 1950 West • Salt Lake City, UT Mailing Address: P.O. Box 144870 • Salt Lake City, UT 84114-4870 Telephone (801) 536-4300 • Fax (801) 536-4301 • T.D.D. (801) 297-3810 www.deq.utah.gov Printed on 100% recycled paper State of Utah GARY R. HERBERT Governor SPENCER J. COX Lieutenant Governor Department of Environmental Quality Alan Matheson Executive Director DIVISION OF WATER QUALITY Erica Brown Gaddis, PhD Director Water Quality Board Myron E. Bateman, Chair Jennifer Grant, Vice-Chair Clyde L. Bunker Steven K. Earley Gregg A. Galecki Michael D. Luers Alan Matheson Dr. James VanDerslice Dr. Erica Brown Gaddis Executive Secretary Utah Water Quality Board Meeting DEQ Board Room 195 N 1950 W Room 1015 Salt Lake City, UT 84116 October 25, 2017 Board Meeting Begins @ 8:30 a.m. AGENDA A. Water Quality Board Meeting – Roll Call B. (Tab 1) Minutes: Approval of minutes for August 23, 2017 Water Quality Board Meeting ………………………..………………………………………………..….Myron Bateman C. Executive Secretary’s Report ……………………………………………. Erica Gaddis D. (Tab 2) Funding Requests: 1. Financial Report …..……………………………………………….……Emily Cantón 2. Grantsville City - Sewer Improvements: Project Introduction …….…Cheryl Parker 3. Morgan City - Wastewater Treatment Plant Upgrade: Project Introduction ……………………………………………………………………………….Cheryl Parker E. (Tab 3) Rule Making: 1. Request to initiate rulemaking for Amendment to Section R317-10-10 Examinations............................................................................................Judy Etherington Next Meeting December 4, 2017 DEQ Board Room 1015 195 N 1950 W Salt Lake City, UT 84116 Revised 10/2/2017 In compliance with the American Disabilities Act, individuals with special needs (including auxiliary communicative aids and services) should contact Larene Wyss, Office of Human Resources, at (801) 536-4281, TDD (801) 536-4284, or by email at [email protected], at least five working prior to the scheduled meeting. 1

State of Utah · GARY R. HERBERT . Governor . SPENCER J. COX . Lieutenant Governor. ... Mr. Campbell requested approval from the Water Quality Board to commence rulemaking to revise

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Page 1: State of Utah · GARY R. HERBERT . Governor . SPENCER J. COX . Lieutenant Governor. ... Mr. Campbell requested approval from the Water Quality Board to commence rulemaking to revise

195 North 1950 West • Salt Lake City, UT Mailing Address: P.O. Box 144870 • Salt Lake City, UT 84114-4870

Telephone (801) 536-4300 • Fax (801) 536-4301 • T.D.D. (801) 297-3810 www.deq.utah.gov

Printed on 100% recycled paper

State of Utah GARY R. HERBERT

Governor

SPENCER J. COX Lieutenant Governor

Department of Environmental Quality

Alan Matheson Executive Director

DIVISION OF WATER QUALITY Erica Brown Gaddis, PhD

Director

Water Quality Board Myron E. Bateman, Chair

Jennifer Grant, Vice-Chair Clyde L. Bunker Steven K. Earley

Gregg A. Galecki Michael D. Luers

Alan Matheson Dr. James VanDerslice

Dr. Erica Brown Gaddis Executive Secretary

Utah Water Quality Board Meeting DEQ Board Room

195 N 1950 W Room 1015

Salt Lake City, UT 84116 October 25, 2017

Board Meeting Begins @ 8:30 a.m. AGENDA

A. Water Quality Board Meeting – Roll Call

B. (Tab 1) Minutes:Approval of minutes for August 23, 2017 Water Quality Board Meeting ………………………..………………………………………………..….Myron Bateman

C. Executive Secretary’s Report ……………………………………………. Erica Gaddis

D. (Tab 2) Funding Requests:1. Financial Report …..……………………………………………….……Emily Cantón

2. Grantsville City - Sewer Improvements: Project Introduction …….…Cheryl Parker

3. Morgan City - Wastewater Treatment Plant Upgrade: Project Introduction……………………………………………………………………………….Cheryl Parker

E. (Tab 3) Rule Making:1. Request to initiate rulemaking for Amendment to Section R317-10-10Examinations............................................................................................Judy Etherington

Next Meeting December 4, 2017 DEQ Board Room 1015

195 N 1950 W Salt Lake City, UT 84116

Revised 10/2/2017 In compliance with the American Disabilities Act, individuals with special needs (including auxiliary communicative aids and services) should contact Larene Wyss, Office of Human Resources, at (801) 536-4281, TDD (801) 536-4284, or by email at [email protected], at least five working prior to the scheduled meeting.

1

Page 2: State of Utah · GARY R. HERBERT . Governor . SPENCER J. COX . Lieutenant Governor. ... Mr. Campbell requested approval from the Water Quality Board to commence rulemaking to revise

195 North 1950 West • Salt Lake City, UT Mailing Address: P.O. Box 144870 • Salt Lake City, UT 84114-4870

Telephone (801) 536-4300 • Fax (801) 536-4301 • T.D.D. (801) 536-4284 www.deq.utah.gov

Printed on 100% recycled paper

State of Utah GARY R. HERBERT

Governor

SPENCER J. COX Lieutenant Governor

Department of Environmental Quality

Alan Matheson Executive Director

DIVISION OF WATER QUALITY Erica Brown Gaddis, PhD

Director

Water Quality Board Myron E. Bateman, Chair

Jennifer Grant, Vice-Chair Clyde L. Bunker Steven K. Earley

Gregg A. Galecki Michael D. Luers

Alan Matheson Dr. James VanDerslice

Dr. Erica Brown Gaddis Executive Secretary

MINUTES UTAH DEPARTMENT OF ENVIRONMENTAL QUALITY

UTAH WATER QUALITY BOARD 250 N 1950 W

Salt Lake City, UT 84116 August 23, 2017

UTAH WATER QUALITY BOARD MEMBERS PRESENT Myron Bateman Clyde Bunker Steven Earley Gregg Galecki Michael Luers Alan Matheson Jim VanDerslice

Excused: Jennifer Grant

DIVISION OF WATER QUALITY STAFF MEMBERS PRESENT Erica Gaddis, Kim Shelley, John Mackey, Jen Pruitt, Brenda Johnson, Savannah Miller, John Mackey, Beth Wondimu, Skyler Davies, Ken Hoffman, Cheryl Parker, Jim Bowcutt, Carl Adams, Jeanne Riley, Harry Campbell

OTHERS PRESENT Name Organization Representing Justin Atkinson Sunrise Engineering Marian Rice SLC Department of Public Utilities Shane Pace Self

Myron Bateman called the Board meeting to order at 9:39 AM and took roll call for the members of the Board and audience.

APPROVAL OF MINUTES OF THE MAY 24, 2017 MEETING

Motion: Mr. Bunker moved to approve the minutes of the May 24, 2017 meeting. Mr. Luers seconded the motion. The motion passed unanimously.

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Page 3: State of Utah · GARY R. HERBERT . Governor . SPENCER J. COX . Lieutenant Governor. ... Mr. Campbell requested approval from the Water Quality Board to commence rulemaking to revise

Page 2

ELECTIONS OF WATER QUALITY BOARD CHAIR AND VICE-CHAIR

Elections were held for the appointment of the Chair and Vice-Chair of the Water Quality Board.

Motion: Mr. Luers moved to re-appoint Mr. Bateman as the Chair of the Water Quality Board. Mr. Bunker seconded the motion. The motion passed unanimously.

Motion: Mr. Luers moved to re-appoint Ms. Grant as the Vice-Chair of the Water Quality Board. Mr. Galecki seconded the motion. The motion passed unanimously.

RECOGNITION OF SERVICE AWARD

Mr. Bateman presented an award to Mr. Shane Pace for his service on the Water Quality Board from March 1, 2013 to March 1, 2017.

EXECUTIVE SECRETARY REPORT

● Dr. Gaddis reported the appointment of a new Water Quality Board member is underway. Anew member should be appointed by the September meeting to replace Mr. Shane Pace.

● On February 28, 2017 the executive order was signed by the President asking the EPA andthe U.S. Army Corps of Engineers to rescind the Clean Water Rule and reinstate the languageof the rule before it was changed in 2015. This is the first step in the two step process. Thesecond step will be to engage in a separate rulemaking process to develop, propose, andfinalize a new rule that would be consistent with the executive order.

● The Governor's Water Strategy Team finished the State Water Strategy. It was presented tothe Governor in July and includes a list of recommendations for planning 50 years into thefuture for all aspects of water management, water conservation, water quality and waterinfrastructure. It was presented yesterday to the Water Development Commission. The nextstep will be putting together a small group of people from the Executive Branch andlegislators to prioritize the recommendations.

● Dr. Gaddis shared the priorities identified by the management team of the Division for fiscalyear 2018. They include: strategic planning, development of new tools and technologies,development of a variance policy for the state, continuing to engage in collaborative studies,creating a multi-year fee revision plan and reviewing how we allocate labor resources.

● Dr. Gaddis introduced the new Storm Water Section Manager, Jeanne Riley.

● The Division is tracking harmful algal blooms in five Utah waters: Utah Lake, MantuaReservoir, Rockport Reservoir, Upper Box Creek Reservoir, and Matt Warner Reservoir. Dr.Gaddis will alert the Board if any water bodies reach an advisory status.

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Page 4: State of Utah · GARY R. HERBERT . Governor . SPENCER J. COX . Lieutenant Governor. ... Mr. Campbell requested approval from the Water Quality Board to commence rulemaking to revise

Page 3

● Tibble Fork Reservoir is back to pre-incident condition. The Board approved the settlementamount at the May meeting. Final monitoring is scheduled to be completed by this fall.

● An incident at Jones Hole, near Dinosaur National Monument, was reported that a septicsystem had failed and raw sewage was going into a canal. The Division is working with thelocal health department to get the issue resolved quickly.

RULE MAKING

Permission to begin rule making for the Construction Storm Water ESO: Mr. Campbell requested approval from the Water Quality Board to commence rulemaking to revise Utah Administrative Code R317-1-8, Civil Settlement Negotiations (DWQ Penalty Policy), to allow for Expedited Settlement Offers.

Motion: Mr. Luers moved to approve the request to begin rule making for the Construction Storm Water ESO with an amendment to paragraph 8.6 of the proposed language to be changed to read "the Expedited Settlement Offer only applies to sections C and D." Mr. VanDerslice seconded the motion, and the motion passed unanimously.

OTHER BUSINESS

Nonpoint Source Pollution Program Annual Report: Mr. Bowcutt presented a summary of the State Nonpoint Source Program Annual Report for Fiscal Year 2017. The Division receives grant funds to help implement nonpoint source pollution control projects throughout the state. These grants include Section 319(h) funds from the Environmental Protection Agency and State Nonpoint Source funds authorized by the Water Quality Board.

To listen to the full recording of the Board meeting go to: http://www.utah.gov/pmn/index.html

Next Meeting - September 27, 2017 DEQ Board Room 1015

195 N 1950 W Salt Lake City, UT 84116

__________________________ Myron Bateman, Chair Utah Water Quality Board

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Page 5: State of Utah · GARY R. HERBERT . Governor . SPENCER J. COX . Lieutenant Governor. ... Mr. Campbell requested approval from the Water Quality Board to commence rulemaking to revise

LOAN FUNDSFINANCIAL STATUS REPORT

State Fiscal Year State Fiscal Year State Fiscal YearSTATE REVOLVING FUND (SRF) 2018 2019 2020Funds Available 2014 Capitalization Grant - - - 2015 Capitalization Grant 257,401 - - 2016 Capitalization Grant 4,507,700 - - Principal Forgiveness (Maximum Amts) 4,657,415 - - State Match 1,402,200 - - SRF - 2nd Round 116,795,028 76,072,991 29,475,847 Interest Earnings at 1.5% 1,320,163 1,146,496 265,283 Loan Repayments 9,054,084 12,803,359 13,586,074

Total Funds Available 137,993,991 90,022,847 43,327,203 Project Obligations Logan City (39,131,000) (30,000,000) - Loan Authorizations Duchesne City (1,675,000) - (700,000) Moab City (5,980,000) (2,000,000) - Roosevelt City (1,167,000) (2,000,000) - Salem City (3,000,000) (10,000,000) - San Juan Spanish Valley SSD (968,000) (1,547,000) (1,547,000) South Davis Sewer District (with NPS) (10,000,000) (15,000,000) (3,851,000) Planned Projects None at this time - - -

Total Obligations (61,921,000) (60,547,000) (6,098,000) SRF Unobligated Funds 76,072,991$ 29,475,847$ 37,229,203$

State Fiscal Year State Fiscal Year State Fiscal YearUTAH WASTEWATER LOAN FUND (UWLF) 2018 2019 2020Funds Available UWLF 20,781,720$ 8,668,558$ 13,562,020$ Sales Tax Revenue - 3,587,500 3,587,500 Loan Repayments 2,537,737 2,870,662 2,761,188

Total Funds Available 23,319,458 15,126,720 19,910,708 General Obligations State Match Transfer (1,402,200) - - DWQ Administrative Expenses (1,564,700) (1,564,700) (1,564,700) Project Obligations None at this time - - - Loan Authorizations Blanding City (2,557,000) - - Eagle Mountain City (1,283,000) - - Projects Requesting Funding

*Grantsville City (5,014,000) - - *Morgan City (2,830,000) - -

Total Obligations (14,650,900) (1,564,700) (1,564,700) UWLF Unobligated Funds 8,668,558$ 13,562,020$ 18,346,008$

5

Page 6: State of Utah · GARY R. HERBERT . Governor . SPENCER J. COX . Lieutenant Governor. ... Mr. Campbell requested approval from the Water Quality Board to commence rulemaking to revise

HARDSHIP GRANT FUNDSFINANCIAL STATUS REPORT

State Fiscal Year State Fiscal Year State Fiscal YearHARDSHIP GRANT FUNDS (HGF) 2018 2019 2020Funds Available Beginning Balance 807,355$ 1,278,293$ Federal HGF Beginning Balance 3,957,936 - - State HGF Beginning Balance 1,296,693 - - Interest Earnings at 1.5% 59,394 12,168 19,265 UWLF Interest Earnings at 1.5% 234,901 130,644 204,393 Hardship Grant Assessments 967,397 1,225,888 1,101,353 Interest Payments 219,985 282,239 252,718 Advance Repayments - 220,000 -

Total Funds Available 6,736,307 2,678,293 2,856,022 Financial Assistance Project Obligations Arches Special Service District - Planning Advance (35,000) Big Plains - Planning Grant (38,000) - - Duchesne City - Construction Grant (150,000) - - Eagle Mountain City - Construction Grant (510,000) - - Emigration Sewer Imp Dist - Planning Grant (26,158) - - Francis City - Construction Grant (513,000) - - Roosevelt City - Design Advance (536,000) - - Tri-County - Construction Grant (221,000) - - USU Extension - Hardship Grant (42,000) Non-Point Source/Hardship Grant Obligations (FY11) Gunnison Irrigation Company (48,587) - - (FY11) DEQ - Willard Spur Study (113,326) - - (FY12) Utah Department of Agriculture (652,233) - - (FY13) DEQ - Great Salt Lake Advisory Council (245,615) - - (FY15) DEQ - Ammonia Criteria Study (70,674) (FY15) DEQ - Nitrogen Transformation Study (59,816) (FY16) DEQ - San Juan River Monitoring (166,288) (FY17) DEQ - GW Quality Study (68,100) (FY17) DEQ - Utah Lake Water Quality Study (300,000) (400,000) (300,000) FY 2013 - Remaining Payments (2,265) - - FY 2014 - Remaining Payments - - - FY 2015 - Remaining Payments (124,932) - - FY 2016 - Remaining Payments (401,820) - - FY 2017 - Remaining Payments (604,139) - - FY 2018 Allocation (1,000,000) - - FY 2019 Allocation - (1,000,000) - FY 2020 Allocation - - (1,000,000) Planned Projects None at this time - - -

Total Obligations (5,928,952) (1,400,000) (1,300,000) HGF Unobligated Funds 807,355$ 1,278,293$ 1,556,022$

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Page 7: State of Utah · GARY R. HERBERT . Governor . SPENCER J. COX . Lieutenant Governor. ... Mr. Campbell requested approval from the Water Quality Board to commence rulemaking to revise

Project NeedPotential

ImprovementPopulation Affected

Special Consideration

1 South Davis Sewer District x 138 50 18 10 602 Morgan City 116 50 21 5 403 Salem City x 108 50 12 6 40

Eagle Mountain City x 106 60 5 1 40Roosevelt City x 106 45 20 1 40

6 Blanding City x 104 35 5 4 607 Grantsville City 94 35 12 7 408 San Juan Spanish Valley SSD x 86 45 0 1 40

4 (Tie)

State of UtahWastewater Project Assistance Program

Project Priority List

Ranking as of

10/3/17 Project NameFunding

AuthorizedTotal

Points

Point Categories

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Page 8: State of Utah · GARY R. HERBERT . Governor . SPENCER J. COX . Lieutenant Governor. ... Mr. Campbell requested approval from the Water Quality Board to commence rulemaking to revise

195 North 1950 West • Salt Lake City, UT Mailing Address: P.O. Box 144870 • Salt Lake City, UT 84114-4870

Telephone (801) 536-4300 • Fax (801) 536-4301 • T.D.D. (801) 536-4284 www.deq.utah.gov

Printed on 100% recycled paper

State of Utah GARY R. HERBERT

Governor

SPENCER J. COX Lieutenant Governor

Department of Environmental Quality

Alan Matheson Executive Director

DIVISION OF WATER QUALITY Erica Brown Gaddis, PhD

Director

Water Quality Board Myron E. Bateman, Chair

Jennifer Grant, Vice-Chair Clyde L. Bunker Steven K. Earley

Gregg A. Galecki Michael D. Luers

Alan Matheson Dr. James VanDerslice

Dr. Erica Brown Gaddis Executive Secretary

WATER QUALITY BOARD FEASIBILITY REPORT FOR WASTEWATER TREATMENT PROJECT

INTRODUCTION

APPLICANT: Grantsville City Corporation 429 E Main Street Grantsville, UT 84029 Telephone 435-884-3411

PRESIDING OFFICIAL: Mayor Brent Marshall Grantsville City Corporation 429 E Main Street Grantsville, UT 84029 Telephone 435-884-3411

TREASURER/RECORDER: Christine Webb, Recorder Grantsville City Corporation 429 E Main Street Grantsville, UT 84029 Telephone 435-884-3411

CONSULTING ENGINEER: Craig Neeley, P.E. Principal Aqua Engineering 533 W 2600 S #275 Bountiful, UT 84010 Telephone: 801-299-1327

BOND COUNSEL: Randy Larsen, Attorney at Law Cindy Arnold, Paralegal Gilmore Bell 15 W South Temple Suite 520 Salt Lake City, UT 84101 Telephone 801-364-5080

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Page 9: State of Utah · GARY R. HERBERT . Governor . SPENCER J. COX . Lieutenant Governor. ... Mr. Campbell requested approval from the Water Quality Board to commence rulemaking to revise

Grantsville City Corporation – Feasibility Report October 25, 2017

APPLICANT’S REQUEST:

Grantsville City Corporation (the City) is requesting a 30 year term construction assistance loan from the Utah Water Quality Board in the amount of $5,014,000 to upgrade its main sewer trunk, several collection lines, and a sewer lift station.

APPLICANT’S LOCATION:

Grantsville City is located in the northeastern part of Tooele County. The City is located 35 miles west of Salt Lake City along I-80, directly south of the Great Salt Lake.

MAP OF APPLICANT’S LOCATION

Figure 1: Grantsville City Location

BACKGROUND:

This feasibility report is an introduction to the Utah Water Quality Board (WQB) of Grantsville City’s application for Construction Assistance financing. The City provides wastewater services to the City of Grantsville. The City owns a collection system and lagoon treatment plant that provides sewer services to 10,981 citizens, or 2,874 equivalent residential units (ERUs). The City’s collection system was originally placed in the 1950’s. The City’s collection and treatment system have a design flow rate of 1.5 million gallons per day (MGD). The lagoons were upgraded with an ATLAS aeration and sequencing batch reactor system in 2009 to increase the treatment capacity from 0.75 MGD to 1.5 MGD. The lagoon treatment headworks, aeration, and disinfection systems were upgraded in 2011. The collection system was improved and expanded in 2013 and 2015 to accommodate the City’s growth.

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Page 10: State of Utah · GARY R. HERBERT . Governor . SPENCER J. COX . Lieutenant Governor. ... Mr. Campbell requested approval from the Water Quality Board to commence rulemaking to revise

Grantsville City Corporation – Feasibility Report October 25, 2017

The City annexed the Deseret Peak Special Service District (SSD) area known locally as the Deseret Peak Complex/Mid-valley Technology Park. The area is mostly commercial zoning and lightly developed, presently with 471 ERUs. The majority of wastewater generated in the Deseret Peak SSD is treated by Tooele City’s wastewater treatment plant. Currently, only wastewater generated by a warehouse located in the Utah Motorsports Campus, part of the Deseret Peak SSD, is pumped into the City’s wastewater collection system via a lift station and a 6-inch force main. In an effort to regionalize the area, the City included treating all of DeseretPeak SSD’s wastewater within its Capital Facilities six and 20 year plans.

PROJECT NEED:

Parts of the City’s original collection system are facing the end of their design life and capacity. The original core sewer system was installed in the 1950’s and comprised primarily of 8-inch diameter collection lines. The City has been proactive in its planning process and would like to coordinate their required sewer and water upgrades with Utah Department of Transportation’s (UDOT’s) proposed repaving of Highway 138 (Main Street) in 2019. This coordination will save money for the utility improvement projects and will minimize construction-related highway delays. The City’s main trunk line is aligned in Grantsville Main Street.

PROJECT DESCRIPTION:

The City and its engineering consultant updated the Grantsville Wastewater Treatment Facilities Master Plan in 2016. The proposed project is a top priority in the Facilities Master Plan. The City’s Facilities Master Plan scope includes long term planning of capital projects to address aging infrastructure, treatment performance, and growth. The City continues to update and utilize their Facility Master Plan as an active document to direct the City’s capital project needs. This includes assessment of their impact fees to fund services for growth within the City.

The proposed project includes upgrading the collection system in conjunction with a UDOT road reconstruction project in 2019. The City’s proposed project consists of the construction of approximately 22,000 linear feet of sanitary sewer line and the up sizing of a sewer lift station with two 800 gpm simplex capacity pumps. The proposed upgrades will fix capacity limitations in the City’s main collection lines and extend capacity to serve the City’s growing population.

In addition to the Facilities Master Plan, the City and its consultants conducted an additional financial review. The City wishes to reduce the project cost by securing a loan under current interest rates. The City plans to start construction in conjunction with UDOT’s construction schedule in 2018-19. The City will try to accomplish the construction work within the 2018 year but wanted to account for the possible scenario of the project construction being delayed until 2019. To account for a project delay until 2019, a supplement financial review included an inflationary costs break out to account for inflation between the loan year and a 2019 construction year start.

The City and its consultants will also conduct an environmental review as required for the construction. Since the project will be installed within the existing State and City Right of Way (ROW), it is anticipated that the project will be categorically excluded under National

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Page 11: State of Utah · GARY R. HERBERT . Governor . SPENCER J. COX . Lieutenant Governor. ... Mr. Campbell requested approval from the Water Quality Board to commence rulemaking to revise

Grantsville City Corporation – Feasibility Report October 25, 2017

Environmental Policy Act (NEPA).

ALTERNATIVES EVALUATED:

The City is currently completing an engineering report that details the alternatives evaluated in the Capital Facilities Plan. Alternatives evaluated within the facilities plan include:

1. No action,2. Replacement of collection system lines as an independent project (e.g. trenchless), and3. Replacement of collection system lines in junction with a UDOT project.

The City selected Alternative 3 as the preferred alternative for completing the collection system upgrade in conjunction with UDOT’s project to minimize the extent of construction disturbances to its citizens, local business, and reduce construction/replacement costs.

POSITION ON PROJECT PRIORITY LIST:

This project is ranked No. 7 of 8 projects on the 2017 Wastewater Treatment Project Priority List.

POPULATION GROWTH:

The population of Grantsville is projected to grow at an annual rate of 2.94% by the Governor’s Office of Planning and Budget. Current populations and associated effective residential units (ERUs) are shown in the table below.

Grantsville 2017 Population 10,981 2017 ERUs 2,874 2047 Population 26,191 2047 ERUs 6,761

PUBLIC PARTICIPATION AND DEMONSTRATION OF PUBLIC SUPPORT:

The City has included the public in its planning of the proposed project.

• Grantsville began informing its citizens of the Collection System upgrade project in2015. The proposed project was described in the 2015 State of the City address given bythe Mayor. The State of the City address was also included in all utility bills.

• February 26, 2015 the City’s local newspaper, the Transcript Bulletin, published a newsarticle describing the project.

• The project was described again in the 2016 State of the City address and a copy sent inall utility bills.

• On April 20, 2016 the City began work meetings on the proposed project with citizenspresent. Talks during these meetings included discussion of an expected rate and impactfee increases.

• The project was identified again in the 2017 State of the City address and in a copyincluded in all utility bills.

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Page 12: State of Utah · GARY R. HERBERT . Governor . SPENCER J. COX . Lieutenant Governor. ... Mr. Campbell requested approval from the Water Quality Board to commence rulemaking to revise

Grantsville City Corporation – Feasibility Report October 25, 2017

• February 21, 2017 the City published the project and notice to increase sewer impact fee rates in the Transcript Bulletin.

• March 1, 2017 the City amended utility rate schedule to increase its impact fees. • The City published the project description in the Transcript Bulletin again on March 2,

2017, April 20, 2017, and May 4, 2017. • The Grantsville City council authorized City management to pursue funding of the

project on May 3, 2017.

The Mayor has an open door policy to allow anyone with questions to come in. The City reported that they have not had a lot of public feedback and believe this is due to the transparency the City has provided for this project.

EFFORTS TO SECURE FINANCING FROM OTHER SOURCES:

The City has sought funding of their collection system upgrade project at a good rate and term to minimize the financial burden on its citizens. The City has sought financing through several market rate organizations including: market revenue bonds from Zions Public Finance, USDA Rural Development, and the Permanent Community Impact Board.

The City engaged DWQ staff in August 2017 to inquire about the WQB loan application. Staff believes that the project’s scope and the City’s needs are consistent with the primary objective of the WQB loan program.

FISCAL SUSTAINABILITY REVIEW:

Staff’s review of the City’s Utah Municipal Wastewater Planning Program self-assessment report (MWPP) and Utah Sewer Management Program (USMP) reports show that the City has maintained their collection system in a manner consist with the industry’s best practices such as: annual CCTV of sewer lines, written Operation and Maintenance (O&M) manuals, documentation of maintenance, and active outreach to the public through sewer bill announcements. The City’s collection system has not had any significant operational episodes and only one sanitary sewer overflow since 2012. The City is growing at a rate above the State’s average rate and the City needs to expand its collection system to continue to provide safe, cost effective sewer service to their citizens and to protect the area’s groundwater from further development with septic tanks. Grantsville has participated in the State of Utah Municipal Wastewater Planning Program self-assessment report (MWPP) since 2012. DWQ staff reviewed the City’s MWPPs and found that the City has a preventative maintenance plan, maintains their treatment and collection systems consist with industry best practices, maintains a sinking fund specific to O&M, reviews user charge fees annually, maintains separate a sewer enterprise fund and updates their Facilities Master plan regularly. These practices demonstrate to staff that the City takes an active role in understanding the cost-of-service for its sewer assets.

The City is currently in good standing with Utah State Auditor. The City currently has no other existing sewer related debts. Following standard accounting procedures, the City’s general obligation debt limit is $92,374,000.

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Page 13: State of Utah · GARY R. HERBERT . Governor . SPENCER J. COX . Lieutenant Governor. ... Mr. Campbell requested approval from the Water Quality Board to commence rulemaking to revise

Grantsville City Corporation – Feasibility Report October 25, 2017

Staff’s analysis of Grantsville’s management of their collection and treatment systems found that the City’s sewer enterprise financially sustainable as evidenced by:

• The City demonstrated due diligence by investing time and effort to research various financing opportunities to find the lowest possible interest rate for its citizens.

• The City’s demonstration of prudent planning and consideration of the construction disturbance for its citizen’s by combining its major replacement work with UDOT’s project.

• The City uses a separate enterprise account its sewer funds • The City has been proactive in setting appropriate impact fees to pay for the cost of

providing public services to new development. • The City has self-funded its infrastructure planning activities. • The City maintains their collection and lagoon treatment system using industry best

practices. • The City’s proactive steps to engage the public and raise user charges and impact fees

to reflect the cost of service. The City has also implemented progressive rates for their commercial connections.

• The City’s continued participation in the MWPP.

IMPLEMENTATION SCHEDULE:

The schedule for implementation of the Grantsville collection system upgrade construction project is as follows:

WQB Introduction October 25, 2017 WQB Funding Authorization: December 4, 2017 Facility Plan Approval: December 2018 Issue Construction Permit March 2018 Bid Opening Sumer 2018 Complete Construction Fall 2018

APPLICANT’S CURRENT USER CHARGE:

The 2016 median adjusted gross income (MAGI) for Grantsville is $54,160. The City’s current base residential user charge is $25 or 0.55% of MAGI . City has implemented a progressive user rate structure for its commercial connections with an overage rate of an additional $1.50 per 1,000 gallons. The City raised impact fees in spring 2017 to $3,257 per ERC.

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Page 14: State of Utah · GARY R. HERBERT . Governor . SPENCER J. COX . Lieutenant Governor. ... Mr. Campbell requested approval from the Water Quality Board to commence rulemaking to revise

Grantsville City Corporation – Feasibility Report October 25, 2017

COST ESTIMATE:

The estimated cost of the proposed collection system upgrade project is outlined in the following table. Staff prepared a static cost model for this project, provided here as Attachment 1.

Item Grantsville City Contribution

Funded Project Cost

Engineering- Planning $14,970 Engineering –Design $220,000 Engineering- CMS $147,000 Legal/Bonding $30,000 DWQ Admin Fee $56,000 Construction $4,038,000 Contingency (20%) $1,123,000 Applicant’s Contribution $600,000 - Total Applicant’s Contribution $614,970 WQB Funding Loan Amount $5,014,000

COST SHARING:

The City has paid for development of its Capital Facilities Plan and has begun the design without need of financial assistance for a total of $614,970 in local contribution. The City is seeking a low interest loan in the amount $ 5,014,000 for its sewer upgrade project.

Funding Source Cost Sharing Percent of Project Local Contribution (cash) $ 614,970 11% WQB Loan $ 5,014,000 89% Total $ 5,628,970 100%

ESTIMATED ANNUAL COST FOR SEWER SERVICE:

Staff developed cost models to evaluate several financing alternatives for the project. The basic cost model data used in modeling financial alternatives for the project are provided below:

Operations and Maintenance (O&M) – Annual $550,000 (Includes the collection system and lagoon & treatment) Existing Debt Service $0 Median Adjusted Gross Household Income (2016) $54,160 WQB Maximum Affordable Rate at 1.4 % MAGI $63.19 The static model financing alternatives considered are given in Attachment 1. The applicant’s requested financing terms were a construction loan of $5,014,000. The City’s actual O&M costs from fiscal year 2014 to 2016 were analyzed and verified by DWQ staff. The City sees an average increase of 2% annually in O&M expenses. The actual revenue

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Grantsville City Corporation – Feasibility Report October 25, 2017

generated from 2016’s annual sewer user charge revenue was $947,290. Staff did not include impact fees toward loan repayment in the cost model.

The basic cost for a 2% interest, 30 year loan are shown below model results show:

Average WQB Loan Debt Service $223,875 Average WQB Annual Reserve Payment (First 10 years) $33,581 Average Total Annual Cost (including O&M) $807,456 Required Monthly Cost / ERU $24.89 Actual Current Monthly Cost/ERU $25.00 Cost calculated as % of MAGI 0.55%

STAFF SUPPORT & RECOMMENDATIONS:

This is a project introduction, and staff recommendations will be provided at the request for funding authorization. Staff supports the proposed collection system upgrade project as it is an important water quality project that will enable the City to consistently meet the needs of its citizens. The attached static cost model (Attachment 1) shows that the required user rates will be below the Board’s affordability criteria of 1.4% of MAGI, i.e., a loan is affordable at market rates (e.g. US 30 year Treasury Bill 2.78%, BB 20 bond 3.56%, BBII Bond 3.07, RevDex 3.77% ) . The interest rate should be reduced from market value to account for the additional programmatic requirements of State financing. DWQ securing this loan will allow for the continued application of SRF funds to important water quality projects in Utah and earnings will support the hardship grant funds. Staff believes that this project aligns with the primary objective of the WQB and provides an opportunity for the WQB to demonstrate how well managed cities can receive a below market interest rate as an incentive for good management and fiscal sustainability of their sewer enterprise. Attachments: (1) Grantsville Cost Model File:Grantsville, 02Admin, Section 1

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Grantsville City Corporation – Feasibility Report October 25, 2017

Attachment 1 –Static Cost Model – Grantsville Collection System Upgrades

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195 North 1950 West • Salt Lake City, UT

Mailing Address: P.O. Box 144870 • Salt Lake City, UT 84114-4870 Telephone (801) 536-4300 • Fax (801) 536-4301 • T.D.D. (801) 536-4284

www.deq.utah.gov Printed on 100% recycled paper

State of Utah

GARY R. HERBERT Governor

SPENCER J. COX

Lieutenant Governor

Department of Environmental Quality

Alan Matheson Executive Director

DIVISION OF WATER QUALITY

Erica Brown Gaddis, PhD Director

Water Quality Board Myron E. Bateman, Chair

Jennifer Grant, Vice-Chair Clyde L. Bunker Steven K. Earley

Gregg A. Galecki Michael D. Luers

Alan Matheson Dr. James VanDerslice

Dr. Erica Brown Gaddis Executive Secretary

WATER QUALITY BOARD FEASIBILITY REPORT FOR WASTEWATER TREATMENT PROJECT

INTRODUCTION

APPLICANT:

Morgan City Corporation 90 West Young Street Morgan City, UT 84050 Telephone:

PRESIDING OFFICIAL:

Mayor Ray Little Morgan City Corporation 90 West Young Street Morgan City, UT 84050 Telephone:

TREASURER/RECORDER:

Laurie Moore, Treasurer Morgan City Corporation 90 West Young Street Morgan City, UT 84050 Telephone:

CONSULTING ENGINEER: Gary Vance, P.E. JUB Engineering 466 N 900 W Kaysville, UT 84037 Telephone: 801-547-0393

BOND COUNSEL: Eric Johnson, Attorney at Law Blaisdell, Church, & Johnson, LLC 5995 South Redwood Rd Salt Lake City, UT 84123 Telephone 801-261-3407

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Morgan City Corporation – Feasibility Report October 25, 2017 APPLICANT’S REQUEST:

Morgan City (City) is requesting a 20 year term construction assistance loan from the Utah Water Quality Board in the amount of $2,830,000 for construction of new headworks and disinfection systems. These improvements constitute Phase I in the City’s Capital Facilities Master Plan.

APPLICANT’S LOCATION: Morgan City is located in the center of Morgan County. The City is located approximately 50 miles northeast of Salt Lake City along the Weber River and Interstate 84 corridor. MAP OF APPLICANT’S LOCATION

Figure 1: Morgan City Location BACKGROUND:

This feasibility report is an introduction to the Utah Water Quality Board (WQB) of Morgan City’s application for Construction Assistance financing. The City owns a collection system and lagoon treatment plant that provides sewer services to 4,369 citizens, or 1,380 equivalent residential units (ERUs). The City’s collection and lagoon treatment system were originally placed in 1968. The lagoon treatment system has a design flow rate of 0.45 million gallons per day (MGD). The City’s lagoon was most recently expanded and upgraded in 1988 and 2001. The Northwest Headworks and Lift Station were constructed in 2011 and the Island Road lift station was constructed in 1988. The disinfection system was installed in 1988. The majority of the collection system is documented to be in good condition with the exception of the Island Road Lift Station, which has some age related deterioration and concerns.

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Morgan City Corporation – Feasibility Report October 25, 2017 The City’s lagoon system is facing the end of its design life. The original lagoons were installed in 1968. Prior to 2015 the influent flows had been relatively stable but the recent growth in the City has pushed the lagoons to capacity. The City has developed a Capital Facilities Plan to move the system from a lagoon treatment to mechanical treatment to address the current lagoon treatment limitations and meet the new Technology-Based Phosphorus Effluent Limits (TBPEL) requirement. The City has developed a phased construction approach to ease the financial burden of converting to a mechanical plant. PROJECT NEED:

The City recognized the need for a master plan and commissioned a Capital Facility Plan to evaluate alternatives and chart its path forward. The Facility Plan identified a number of system problems and deficiencies:

• Island Road Lift Station is at the end of its design life, 30 years old, and needs to be upgraded.

• Lagoon Treatment system is approaching its design flow and loading capacity limits. The system periodically experiences low dissolved oxygen (DO) conditions and inadequate treatment of biological oxygen demand (BOD) and total suspended solids (TSS).

• Disinfection system is operating at design capacity. The system has an inefficient design configuration that makes chemical use high and is periodically unable to provide the disinfection required to meet discharge permit (UPDES) limits for E. coli.

• Dechlorination and reaeration systems were installed on an existing structure that had limited space and insulation. These systems are difficult to protect from freezing and have limited control capabilities.

• Growth. The City’s discharge will be subject to the TBPEL lagoon cap, which provides for growth of 25% from 2018 before phosphorus controls must be implemented. At its current growth, the City expects to reach the TBPEL cap in about eight years.

The Facility Plan detailed the various upgrades that would be required within the next 20 years to maintain the current lagoon system but concluded that conversion to a mechanical treatment plant is needed to provide capacity for growth, improve treatment to meet UPDES and future TBPEL requirements, and to be a sustainable asset for the City. PROJECT DESCRIPTION: Morgan and its engineering consultant updated the City’s Wastewater Treatment Facilities Master Plan in 2015. The proposed project is included in the Facilities Master Plan as part of the City’s 20 year plan. The City’s plan includes phased construction of capital projects to replace the current lagoon treatment system with a mechanical treatment plant.

The first phase of the project looks to control the immediate public health and worker safety concerns associated with disinfection system deficiencies and addresses capacity limitations in the headworks. The proposed project includes Island Road Lift Station rehabilitation, construction of a new headworks/administration building to house a new mechanical screen and vortex grit removal system, new chlorine contact basin and reaeration system, and new chlorine

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Morgan City Corporation – Feasibility Report October 25, 2017 and de-chlorination building. The City is currently conducting an environmental review for its projects. Since the project will be installed within the existing previously disturbed land owned by the City, it is anticipated that the project will be categorically excluded (CATEX) under National Environmental Policy Act. A CATEX for Phase I will enable the City to expedite its construction schedule under an SRF funding scenario.

Phase II will consist of the construction of a mechanical treatment plant that interfaces with the equipment installed during Phase I. The City is in the preliminary design stage of the mechanical plant but estimates Phase II construction costs in the range $8.6 to $13.5 million. The City wishes to reduce the project cost for Phase I by securing a favorable loan, which will allow them to establish reserve funds to apply toward Phase II of their facilities upgrade plan.

ALTERNATIVES EVALUATED:

The City’s Facilities Master Plan considered the evaluation of several alternatives to determine best path forward. Alternatives evaluated for the entire project included:

1. No action 2. Upgrade Lagoons and Land Apply Effluent Seasonally as Required to Meet Phosphorus

Loading Cap 3. Upgrade Lagoons, Construct Winter Storage, and 100% Effluent Disposal through Land

Application 4. Hybrid Lagoon System with Mechanical Components 5. Mechanical Treatment- Conventional Activated Sludge with Nutrient Removal 6. Mechanical Treatment - Membrane Bioreactor 7. Mechanical Treatment - Sequencing Batch Reactor

Alternatives evaluated specific to Phase I of the project included:

1. No action 2. UV disinfection treatment with reaeration 3. Chlorination and dechlorination with reaeration 4. Separate mechanical screens and grit removal systems 5. A pre-engineered headworks system of a combined mechanical screen and vortex grit

removal

The City selected alternatives 3 and 5 as the preferred alternatives due to the ease of construction and reduced maintenance costs.

POSITION ON PROJECT PRIORITY LIST:

This project is ranked No. 2 of 8 projects on the 2017 Wastewater Treatment Project Priority List.

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Morgan City Corporation – Feasibility Report October 25, 2017 POPULATION GROWTH:

The population of Morgan is projected to grow at an annual rate of 2.86% by the Governor’s Office of Planning and Budget. Current populations and associated ERUs are shown in the table below along with the 20-year projections. Based on this rate of growth, the City’s population will grow by 25 percent in about eight years. Staff expects that the TBPEL cap for phosphorus loading will be met in about year 2025. The City will need to have phosphorus controls in place at this time to comply with the TBPEL rule.

Morgan 2017 Population 4,369 2017 ERUs 1,380 2037 Population 7,679 2037 ERUs 2,425

PUBLIC PARTICIPATION AND DEMONSTRATION OF PUBLIC SUPPORT:

Morgan has taken the following steps to include the public in their proposed project planning:

The City has had several public meetings regarding the project over the past several years. The City believes the public is well informed on the need for the project due to the lagoon’s septic episode in 2015. The situation, alternatives, and need for the improvements have been discussed as an agenda item in public City Council meetings in over 20 meetings since 2014.

The City Council is supportive of the project and demonstrated their support by: (1) increasing sewer rates by 12% per year for 5 years; (2) increased impact fees; (3) increased sewer connection fees; (4) commissioned the sewer Master Facilities Plan; (5) toured other public sewer mechanical treatment facilities; and (6) authorized funding to begin the site work to prepare for the project Phase I.

EFFORTS TO SECURE FINANCING FROM OTHER SOURCES:

Morgan has sought affordable financing for their construction project to make Phase I and Phase II of the proposed projects feasible. The City has sought financing through several market rate organizations including market revenue bonds from Zions Public Finance, and local financial institutions.

Morgan engaged DWQ staff in August 2017 to inquire about the WQB loan application. The City and DWQ staff believe that the project’s scope and the City’s needs align with the primary objective of the WQB loan program.

FISCAL SUSTAINABILITY REVIEW:

Morgan has participated in the State of Utah Municipal Wastewater Planning Program self-assessment report (MWPP) since 2012. DWQ staff reviewed the City’s MWPPs and found that the City follows several industry best practices:

• Maintains a written a preventative maintenance plan

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Morgan City Corporation – Feasibility Report October 25, 2017

• Annual CCTV of sewer collection system and grease interceptors • Documenting regular maintenance and frequent problem areas • The City uses a separate enterprise account for its sewer funds • The City Council reviews user charges annually • Updates their Facility Master plan regularly.

These financial and recording keeping procedures demonstrate to staff that the City takes an active role in understanding and maintaining their sewer assets. DWQ staff also reviewed the sewer enterprise accounts from 2012 to 2016 to review O&M charges. The City is currently in good standing with Utah State Auditor. The City currently has one other existing sewer debt of $750,000.

The City estimates that Phase II of their wastewater treatment upgrade will cost $8.6 to $13.5 million in 2016 dollars.

DWQ staff’s analysis of the City’s management of their collection and treatment systems found that the City’s sewer enterprise is fiscally sustainable as evidenced by:

• The City has been proactive in setting user fees and impact fees in planning their infrastructure improvements

• The City uses a separate enterprise account its sewer funds • The City self-funded Phase I planning, design and site preparation work • The City’s continued participation in the MWPP since 2012 • The City’s diligence in researching opportunities to establish the best possible

financing position for their projects

IMPLEMENTATION SCHEDULE:

The schedule for implementation of the Morgan City’s Phase I construction project is as follows:

WQB Introduction October 25, 2017 WQB Funding Authorization: December 4, 2017 Facility Plan Approval: December 2017 Issue Construction Permit January 2018 Bid Opening February 2018 Complete Construction Summer 2018

APPLICANT’S CURRENT USER CHARGE:

The 2016 median adjusted gross income (MAGI) for Morgan is $64,013. The City’s current base residential user charge is $47.77 or 0.90% of the MAGI. The City Council approved a user fee increase in August 2017 along with a 12% raise in user fees annually for the next five years resulting in a User Fee of $53.30 in 2019 and $59.92 by 2020.

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Morgan City Corporation – Feasibility Report October 25, 2017 COST ESTIMATE:

The estimated cost of the proposed Phase 1 project is outlined in the following table. Staff prepared a static cost model for this project, provided here as Attachment 1 and 2.

Item Project Costs Engineering- Planning $37,000 Engineering –Design $127,000 Engineering- CMS $127,000 Legal/Bonding $10,000 DWQ Admin Fee $28,000 Construction $2,855,000 Contingency (10%) $286,000

Total Project Cost $3,470,000 Total Applicant’s Contribution $640,000 WQB Funding Amount $2,830,000

COST SHARING:

Morgan City has self-funded the development of the Capital Facilities Plan, design, site preparation and will bring $225,000 in-kind to the project, totaling $640,000 in local contribution toward the Phase I project.

Funding Source Cost Sharing Percent of Project Local Contribution $ 640,000 18% WQB Loan $ 2,830,000 82% Total $ 3,470,000 100%

ESTIMATED ANNUAL COST FOR SEWER SERVICE:

Staff developed cost models to evaluate several financing alternatives for the project. The basic cost model data used in modeling financial alternatives for the project are provided below:

Operations and Maintenance (O&M) – Annual $400,000 Existing Debt – Annual $58,359 Median Adjusted Gross Household Income (2016) $64,013 Maximum Affordable Sewer Rate at 1.4 % MAGI $74.68 The static model financing alternatives considered are given in Attachment 1. The static cost model shows that the required user rates will be below the Board’s affordability criteria of 1.4% of MAGI, i.e., a loan is affordable at market rates. Current market rates index as follows: US 30-year Treasury Bond 2.78% Bond Buyer 20-Bond Index (A rating) 3.56% Bond Buyer 11-Bond Index (AA rating) 3.07% Bond Buyer Municipal Revenue Bond Index (RevDex) 3.77%

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Morgan City Corporation – Feasibility Report October 25, 2017 The static cost model shows that the City would need to charge at least $42.28 per month per ERU to implement its Phase I project with a 2.5% interest loan from WQB. This rate is lower than the City’s current user rate of $47.77, which is 0.90 percent of the MAGI. The lower half of the cost model table uses the current sewer rate in the loan calculations and shows its effect of the debt-to-service ratio. Statute requires a minimum debt-to-service ratio of 1.25. The City is seeking loan terms to maximize their savings, enabling the City to establish capital improvement reserve funds for the second phase of this project. The City expects to complete planning for its Phase II project in 2018. Depending on when Phase II is constructed, growth that occurs in the interim, and the terms of the Phase I loan, the City can accumulate between $2 and $2.5 million in reserves for the Phase II construction as a result of its current sewer rate structure. A low interest rate loan on Phase I will enable the City to reserve more cash for Phase II. Given the expected costs for Phase II ($8.6 to $13.5 million in 2016 dollars) and recent escalation in construction costs, staff believes that establishing significant reserves in the Phase I/Phase II interim will be important in enabling the City to complete its projects affordably and without need for grant subsidy. STAFF SUPPORT:

This is a project introduction, and staff recommendations will be provided at the request for funding authorization. Staff supports the upgrade project as it is an important water quality project that will protect public health and lays the foundation for the full conversion to a sustainable treatment works that will better protect water quality. The phased construction approach will allow the City to increase rates incrementally, build capital improvement reserves, and affordably implement its new treatment works (Phase II) in line with its needs to control nutrient discharges. An updated treatment works will enable the City to sustain its current rate of growth and comply with its UPDES permit. Attachments: (1) Morgan Cost Model File:Morgan, 02Admin, Section 1

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Morgan City Corporation – Feasibility Report October 25, 2017 Attachment 1 –Static Cost Model – Morgan Treatment System Phase I Upgrades

Phase I Project Costs Existing Sewer DebtEngineering - Planning $37,000 Existing Sewer Debt $58,359Engineering - Design (incl. Geotec) $127,000 Current Customer Base & User ChargesConstruction Management (staff est.) $127,000 Total Customers (ERU): 1,380Legal/Bonding $10,000 MAGI (2016 Morgan City Tax Returns): $64,013DWQ Loan Origination Fee 1% $28,000 Current Monthly User Fee (per ERU): $47.77Construction $2,855,000 1.4% MAGI UserFee $74.68Contingency: $286,000Total Project Cost: $3,470,000 Projected Annual Sewer O&M Cost

2017 Operating Expenses: $400,000Project FundingApplicant Contribution $640,000 Funding Conditions

Loan Repayment Term: 20 yearsWQB Loan Amount $2,830,000 Reserve Funding Period: 6 years

TABLE 1: ESTIMATED COST OF SEWER SERVICE UNDER STRAIGHT-LINE AMORTIZATIONWQB Grant WQB Loan WQB Loan WQB Loan WQB Loan Annual Sewer Existing Sewer Total Annual Monthly Sewer Sewer Cost as a Debt Service

Amount Amount Interest Rate Debt Service Reserve O&M Cost Debt Service Sewer Cost Cost/ERU % of MAGI Ratio-- 2,830,000 0.00% $141,500 $35,375 $400,000 $58,359 $635,234 $39.26 0.74% 1.25-- 2,830,000 0.50% $149,046 $37,262 $400,000 $58,359 $644,667 $39.83 0.75% 1.25-- 2,830,000 1.00% $156,825 $39,206 $400,000 $58,359 $654,391 $40.42 0.76% 1.25-- 2,830,000 1.50% $164,835 $41,209 $400,000 $58,359 $664,404 $41.02 0.77% 1.25-- 2,830,000 2.00% $173,074 $43,268 $400,000 $58,359 $674,701 $41.64 0.78% 1.25-- 2,830,000 2.50% $181,536 $45,384 $400,000 $58,359 $685,280 $42.28 0.79% 1.25-- 2,830,000 3.00% $190,220 $47,555 $400,000 $58,359 $696,135 $42.94 0.80% 1.25-- 2,830,000 0.00% $141,500 $35,375 $400,000 $58,359 $635,234 $47.77 0.90% 1.96-- 2,830,000 0.50% $149,046 $37,262 $400,000 $58,359 $644,667 $47.77 0.90% 1.89-- 2,830,000 1.00% $156,825 $39,206 $400,000 $58,359 $654,391 $47.77 0.90% 1.82-- 2,830,000 1.50% $164,835 $41,209 $400,000 $58,359 $664,404 $47.77 0.90% 1.75-- 2,830,000 2.00% $173,074 $43,268 $400,000 $58,359 $674,701 $47.77 0.90% 1.69-- 2,830,000 2.50% $181,536 $45,384 $400,000 $58,359 $685,280 $47.77 0.90% 1.63-- 2,830,000 3.00% $190,220 $47,555 $400,000 $58,359 $696,135 $47.77 0.90% 1.57

Morgan City Proposed ProjectLagoon Upgrade Phase 1 Project

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Page 26: State of Utah · GARY R. HERBERT . Governor . SPENCER J. COX . Lieutenant Governor. ... Mr. Campbell requested approval from the Water Quality Board to commence rulemaking to revise

Water Quality Board Myron E. Bateman, Chair

Jennifer Grant, Vice-Chair Clyde L. Bunker Steven K. Earley

Gregg A. Galecki Michael D. Luers

Alan Matheson Dr. James VanDerslice

Dr. Erica Brown Gaddis Executive Secretary

195 North 1460 West • Salt Lake City, UT

Mailing Address: P.O. Box 144870 • Salt Lake City, UT 84114-4870 Telephone (801) 536-4300 • Fax (801) 536-4301 • T.D.D. (801) 536-4284

www.deq.utah.gov Printed on 100% recycled paper

State of Utah

GARY R. HERBERT Governor

SPENCER J. COX

Lieutenant Governor

Department of Environmental Quality

Alan Matheson

Executive Director

DIVISION OF WATER QUALITY Erica Brown Gaddis, PhD

Director

M E M O R A N D U M

TO: Water Quality Board THROUGH: Erica Brown Gaddis, PhD, Director FROM: Judy Etherington, Wastewater Certification Program Coordinator DATE: October 2, 2017 SUBJECT: Request to Proceed to Rulemaking for Amendment to Rule R317-10-10,

Examination The wastewater operator certification program has used the Association of Boards of Certification "standardized" exams to assess the knowledge of operators for most of the required certifications since at least 1994. We have relied on the expertise in exam development of the association's partners and volunteer committees to validate the questions and content to ensure that the exams were relevant and defensible in court should the situation arise where that might be questioned. The association regularly re-evaluates the exams, and Utah's wastewater operators are represented in that process by some committee members and participation in the need-to-know surveys. In the past, Rule R317-10 requiring certification of wastewater operators has been written to allow individuals who failed a certification exam to request review of the questions that they missed within a specified timeframe. Although exam reviews for professional licensing exams is not a standard in other disciplines, the objective was to offer an opportunity to encourage a discussion of the subject matter and facilitate a learning experience that would help the individuals in preparing for the next time they tested. After evaluating the passing scores following exam review, those who review appear to have about a 17% higher passing rate compared to the average rate. There is no way to know if that is because the individuals actually understand why an answer is correct. However, the Utah Wastewater Operator Certification Council, which has been established by rule to advise the Director regarding certification issues, has recently become more aware that these reviews have sometimes been more of an opportunity to copy the individual questions and corresponding answers, rather than to foster better understanding of subject matter. The council has discussed both sides of this topic many times over the years, but recent situations that have been revealed, as well as the newer technologies that can so easily jeopardize the validity of the exams as a real evaluation tool, have prompted the request to eliminate the reviews from the examination process as defined in the rule. Division staff who work with the certification

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Page 2

program concur with this recommendation and request that the rule language be amended to remove the review of exam questions by the individuals who failed. However, the proposed language does recommend that any comments submitted for review during the examination process should be reviewed by the council as well as submitted to the test provider (which is already standard practice). EBG:JKM:JAE:jae File: DWQ Administrative Record Rule R317-10 Filename: U:\ENG_WQ\JETHERINGTON\RULECHANGES\2017RULECHANGES\R317-10-10MEMO10-2-2017.DOCX

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R317. Environmental Quality, Water Quality. R317-10. Certification of Wastewater Works Operators. R317-10-10. Examination. A. The time and place of examinations to qualify for a certificate shall be determined by the director upon recommendation of the council. B. All examinations shall be scored and the applicant notified of the results. C. Examination fees shall be charged according to the approved division fee schedule to cover the costs of testing. D. All exams shall be administered in a manner that will ensure the integrity of the certification program. E. [In the event an applicant fails an exam, the applicant may request to review the exam within ten days following receipt of the exam score]Question Comment Forms completed during the testing session should be reviewed by the council and submitted to the test provider. F. The council shall not review examination questions for the purpose of changing individual examination scores. 1. However, recommendations may be made to improve individual questions in the databank for future examinations. 2. If an error is found in the grading of the exam, credit may be given. KEY: water pollution, operator certification, wastewater treatment, renewals Date of Enactment or Last Substantive Amendment: [April 29, 2015]2018 Notice of Continuation: July 6, 2017 Authorizing, and Implemented or Interpreted Law: 19-5

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