Minutes 01/24/2006 - Laserfiche WebLink

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January 24.2006 06 - 52 - Adoption of a resolution authorizing the City Manager to enter into an agreement with HRSD for disposal of grit and grease at a facility to be constructed at HRSD's Nansemond Wastewater Treatment Plant. Source of the funding will be budgeted annually in the Operating Budget of the Public Utilities Fund. Vision Principle: Bold New Directions. Background: . HRSD acting in regional concert with the cities of Portsmouth, Chesapeake, Norfolk, and Suffolk has agreed to construct a regional disposal facility, meeting all federal and state regulations, at its Nansemond Wastewater Treatment Plant in Suffolk. Funding for the construction, operation and maintenance of this regional facility would be from per cubic yard fee for disposal with an annual minimum fee (in Portsmouth's case $24,232.00). Discussion: . Under this agreement HRSD would construct, operate and maintain the facility and would recover its actual costs (with no cost recovery for land, administration or salaries) by charging the participating cities a per cubic yard fee for grit and grease disposed of at the facility. Non-participating cities or entities would be allowed to dispose of grit and grease only after capacity for the participating cities was reserved and the non-participants would pay a 50% per cubic yard surcharge. The term of the agreement would be 20 years to allow HRSD to amortize its costs of construction. The agreement does allow the City to terminate its participation by paying in lump sum the minimum annual fee of $24,232.00 for the remaining years of the agreement. . By joining in the regional facility, Portsmouth would not have to build and maintain a new facility, eliminate the expense of double handing the material and would save hauling costs, as the HRSD facility would be closer than the SPSA landfill. . Financial Impact: The initial minimum fee would be $24,232.00 per year based upon a fee of $33/cubic yard and 734 cubic yards disposed of. This cost is projected to increase to $51,480.00 as the quantity of grit and grease Portsmouth disposes of grows to a projected 1,560 cubic yards per year over the 20-year term of the contract. Funding for this disposal agreement will be budgeted in the Operating Budget of the Public Utilities Fund. Staff Recommends: Adoption of a resolution authorizing the City Manager to enter into an agreement with HRSD for disposal of grit and grease at a facility to be constructed at HRSD's Nansemond Wastewater Treatment Plant. Source of the funding will be budgeted annually in the Operating Budget of the public Utilities Fund. Vision Principle: Bold New Directions. Next Steps following City Council Action: . The Department of Public UtilitieslWorks through its Operations Manager will exercise oversight of the disposal of grit and grease at this new facility. Motion by Mr. Whitehurst, and seconded by Mr. Smith, to adopt the following resolution, and was adopted by the following vote: "RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT WITH THE HAMPTON ROADS SANITATION DISTRICT (HRSD) FOR THE CONSTRUCTION AND OPERATION OF A REGIONAL FACILITY FOR THE DISPOSAL OF GREASE AND GRIT. WHEREAS, with the anticipated closing of the Godwin Street complex, the City of Portsmouth needs to replace the grease and grit drying facility currently located at the complex; and