Tryon Creek Wastewater Treatment Plant Lake Oswego P3 Partnership / Interim IGA Michael Jordan, Director B. Jonas Biery, Business Services Manager City of Portland Environmental Services SEPTEMBER 2020
Tryon Creek Wastewater Treatment Plant • Constructed in 1964 • Built/owned/operated by Portland, but within Lake Oswego city limits • Outfalls to Willamette River under Portland-managed NPDES permit • Treats wastewater from parts of SW Portland, unincorporated areas of Multnomah and Clackamas counties, and the City of Lake Oswego • Managed under 1984 Intergovernmental Agreement • Max/peak flow capacity of 37.5 mgd (compared to 450 mgd at CBWTP) • Typical flow split is 35% from Portland / 65% from Lake Oswego Environmental Services l Tryon Creek Wastewater Treatment Plant 2
Current Arrangement Owns land Design and build Pays share of costs improvements Owns facility (to Portland) and equipment (via contractors) Operates, Existing IGA (1984) Holds DEQ permit maintains, and finances improvements City of Portland (BES) City of Lake Oswego Bears majority of long-term risk Environmental Services l Tryon Creek Wastewater Treatment Plant 3
Proposed / Future P3 Arrangement Owns land Designs and builds Owns facilities and Pays share of costs equipment (to Lake Oswego) Operates, Future IGA) Project Agreement maintains, and finances Holds DEQ permit Improvements City of Lake Oswego City of Portland (BES) Private Party (DBFOM) Bears majority of long-term risk (and transfers to Private Party) Environmental Services l Tryon Creek Wastewater Treatment Plant 4
Potential Benefits to Portland • Significantly reduces long-term risks: • Operations and maintenance • Capital reinvestment • Regulatory • Better aligns costs to actual usage of plant capacity • Improves effluent quality to Willamette River (pending P3/technology capabilities) • Supports innovative technology and financial arrangement • Will be cost neutral – or better – to the City of Portland over the long-term Environmental Services l Tryon Creek Wastewater Treatment Plant 5
Overview of P3 vs. Existing Plant P3 (Build New) Existing Plant Rate Impact 0.10% average annual impact (or less) 0.10% average annual impact Operation & Maintenance Operated and maintained by P3 provider Operated and maintained by City of Portland Governance LO owns the Plant & leases to P3 provider Portland owns the Plant for 30 years Technology Updated/new technology (will meet/exceed Plant built in 1965 requires major maintenance DEQ standards) & upgrades to meet DEQ standards Footprint & Aesthetics Estimated at 6 acres and built to fit area Approximately 14 acres Environmental Services l Tryon Creek Wastewater Treatment Plant 6
Alternate / Fall-back Plan • Return to Existing 1984 IGA • Potential to re-align cost-share to match current usage of Plant capacity • Potential to extend term to another 30 years • Changes would require approval from City Councils (timing TBD, likely calendar 2021) • Lake Oswego responsible for costs of prior to RFP; costs shared 50/50 during/after RFP and Pre-Dev. • Continue/update Facilities Planning • Implement major multi-year reinvestment in existing Plant • Estimated capital costs of ~$250-350 million over next 30 years • Costs only partially reflected in current rate forecast • Will require permit renewals Environmental Services l Tryon Creek Wastewater Treatment Plant 7
Schedule – Interim IGA MARCH SEPT 15 SEPT 16 JULY 14 Interim IGA Lake Oswego Approval by Lake Oswego Development City Council Portland City City Council Begins Action Council Study Session SEPT 9 MAY/JUNE Interim IGA Ordinance to Council briefings Portland City Council Environmental Services l Tryon Creek Wastewater Treatment Plant 8
Proposed Schedule – RFP & Project Development SEPT 2020 JANUARY 2021* FY 2023-24* Request for Approval of Pre-Development P3 treatment Proposals to P3 Agreement plant operational bidders DECEMBER 2020* SEPT 2021* TBD Selection of Final pricing and approval Old/existing plant P3 provider of Project Agreement decommissioned * Tentative/Projected Environmental Services l Tryon Creek Wastewater Treatment Plant 9
Proposed Council Action / Ordinance • Key provisions in Interim IGA • Establish roles & responsibilities, process, and off-ramps for RFP and Pre-Development Agreement • Cost responsibility shared 50/50 (as Project costs), or if “off-ramp” is used. • Establish criteria, process and off-ramps for P3 Project Agreement • Identify key concepts in Future IGA • Share of capital/operating costs based upon actual flow utilization • Caps Portland’s maximum annual financial commitment at amount identified as “rate neutral” over the 30-year term. • Ensures Portland retains compensation for amounts due under 1984/Existing IGA. • Assets and permit responsibility transferred to Lake Oswego Environmental Services l Tryon Creek Wastewater Treatment Plant 10
Proposed Council Action / Ordinance Basic Deal Flow Structure Project not feasible Existing/1984 IGA* 1 Either Council disapproves RFP & Pre-Dev 2 Future IGA & Project P3 Build & Transfer Operations Portland participates 3 Agreement (operational in FY2023-24) Continued (minimal) capital investment Project is feasible Councils approve Decision Points: 1 2 3 Off-Ramp Options Council Action (Interim IGA) Council Action (Future IGA) at Pre-Dev Agreement at 30% Design * Potential to renegotiate/modernize Environmental Services l Tryon Creek Wastewater Treatment Plant 11
Recommend
More recommend
