REPORT TO THE CITY COUNCIL January 12, 2017 FROM: THOMAS C. ESQUEDA, Director Department of Public Utilities BY: MICHAEL CARBAJAL, Planning Manager Department of Public Utilities - Water Division SUBJECT ..Title ***Resolution - 31st amendment to the Annual Appropriations Resolution 2016-118 to appropriate $500,000 for the installation of a permanent calcium hydroxide chemical feed system at the Northeast Surface Water Treatment Facility. (Requires 5 affirmative votes) ..Body RECOMMENDATIONS Staff recommends that the City Council adopt the 31st amendment to the Annual Appropriations Resolution (AAR) 2016-118 to appropriate $500,000 for the installation of a calcium hydroxide chemical (Ca(OH)2) feed system at the Northeast Surface Water Treatment Facility (NESWTF). EXECUTIVE SUMMARY The Department of Public Utilities (DPU) is recommending that the City Council appropriate $500,000 within the DBCP Recovery Fund. The appropriation is necessary to fund the design, purchase of equipment, permits, and construction necessary to install a Ca(OH)2 chemical feed system at the NESWTF. DPU staff has determined that calcium hydroxide has beneficial features and characteristics for alkalinity adjustment, pH adjustment, and calcium addition for finished water produced at the NESWTF. BACKGROUND The City has previously conducted water treatment trials using calcium hydroxide for alkalinity adjustment, pH adjustment, and calcium addition at the NESWTF. During the previous water treatment trials, operational challenges were encountered with the use of calcium hydroxide. During calendar year 2016, DPU conducted additional treatment trials using calcium hydroxide, and implemented mitigation measures to address the previously encountered challenges. The mitigation measures implemented by DPU during calendar year 2016 proved successful, and DPU proposes to construct a permanent calcium hydroxide feed system at the NE SWTF. The permanent calcium hydroxide feed system will require the purchase of two 4,050 gallon polyethylene storage tanks and mixers to store bulk calcium hydroxide solution, construction of a storage tank pad with a spill containment, a dual-metering pump skid, and related piping, electrical, controls, and appurtenances. The cost of the permanent Ca(OH)2 chemical feed system is estimated at $500,000. Due to the current scheduled maintenance shutdown of the NESWTF, funding is being requested during the current fiscal year to facilitate installation of the permanent Ca(OH)2 chemical feed system prior to anticipated startup of the NESWTF on March 1, 2017. Funds for this project are available in the Water Division's DBCP Recovery Fund. Approval of the attached AAR resolution is necessary to appropriate the funds into the FY 2017 capital improvement budget. ENVIRONMENTAL FINDINGS By the definition provided in the California Environmental Quality Act Guidelines Section 15378, appropriation of funds does not qualify as a project and is therefore exempt from the California Environmental Quality Act requirements. LOCAL PREFERENCE Local preference was not implemented because the appropriation of funds does not include an award of construction or services contract. FISCAL IMPACT Approval of the attached AAR amendment will not have any impact to the General Fund. Funds are available within the Water Division's DBCP Recovery Fund (40110) from additional funds carried over from the prior fiscal year. The source of funding is settlement proceeds received by the City from the DBCP litigation. Approval of the AAR amendment will appropriate the funds into the FY 2017 capital improvement budget. Attachment: 31st Amendment to AAR No. 2016-118