Background Information for the Water Treatment Plant

Below is background information on the steps we have taken regarding the water treatment plant. Note: All Agendas & Minutes (and staff reports), prior to May 22, 2024, can be found in the Archived City Records. 

April 17, 2012-2012 Comprehensive Water Master Plan

Council adopted the master plan at the April 17, 2012, Business Meeting. The plan included development of a 2.5 MGD (million gallons per day) water treatment plant and 2.6 MG storage reservoir.

2.5 MGD Plant estimated at $12 million plus one additional employee requirement.

2.6 MG storage reservoir estimated at $6.7 million.

The plan was updated in 2020 (PDF). 

April 7, 2015-2015-2017 Capital Improvement Program

Council approved the 2015-2017 Capital Improvement Program (CIP) at the April 7, 2015, Business Meeting. The CIP included the 2.5 MGD water treatment plant and 2.6 MD water storage reservoir.

2.5 MGD Plant estimated at $14.5 million plus one additional employee requirement.*

2.6 MG storage reservoir estimated at $8.13 million.*

*Numbers inflated annually from the 2011 master plan project estimate.

June 16, 2015-2015-2017 Biennium Budget

Council approved the 2015-2017 Budget at the June 16, 2015, Business Meeting that included appropriations for the 2.5 MGD water treatment plant and 2.6 MD water storage reservoir.

2.5 MGD Plant estimated at $14.5 million plus one additional employee requirement.

2.6 MG storage reservoir estimated at $8.13 million.

June 7, 2016-Infrastructure Finance Authority Funding Resolution

Council approved a resolution at the June 7, 2016, Business meeting authorizing an Infrastructure Financing Authority loan for engineering and construction of a new 2.5 MGD water treatment plant. The terms of the loan include $14,811,865 in principal, $1,030,000 in loan forgiveness and an interest rate of 1.79% for 30 years.

December 6, 2016-2.6 MG Storage Reservoir Reimbursement Resolution

Council approved a reimbursement resolution at the December 6, 2016, Business Meeting associated with the 2.6 MG water storage reservoir recommended in the 2012 master plan. The reimbursement resolution allows the City to reimburse itself via loan proceeds for all engineering work completed prior to construction.

December 6, 2016 Minutes

March 21, 2017-2.5 MGD Water Treatment Plant Preliminary Engineering

Council approved a professional services contract with Keller Associates at the March 21, 2017, Business Meeting for the design development of a 2.5 MGD water treatment plant and 2.6 MG water storage reservoir. The preliminary engineering included a siting study and treatment process analysis.  

Initial site costs:*

Concrete Pit (high) $11.6 million

Concrete (low) $13.5 million

Granite (high) $14.7 million

Granite (low) $11.6 million

Asphalt Pit $15.4 million

Total estimated cost of construction for the Granite low site:

Granite Low Membrane Filtration $26.2 million

Granite Low Membrane Filtration + UV $24.4 million

Granite Low Membrane Filtration + Ozone $29.4 million

Granite Low Conventional Filtration $30.7 million

November 6, 2017-2.5 MGD Water Treatment Plant Project Review

Council received a presentation at the November 6, 2017, Study Session from the Director of Public Works who recommended a fresh look at the proposed 2.5 MGD water treatment plant. Options provided to Council were to analyze and compare costs and risks associated with rehabilitation of the existing plant to provide a 20-year useful life vs. construction of a brand new 7.5 MGD water treatment plant. The proposal was to compare the City’s current water treatment plant with a new one that would treat water in exactly the same way. At this time the City wasn’t looking at other water treatment alternatives. In addition, prior to this meeting the Director discussed these options with the Ashland Water Advisory Ad-Hoc Committee (AWAC) at their regular meeting on September 26, 2017. The Committee unanimously supported the Director moving forward with the analysis.

April 2, 2018-Water Treatment Plant Next Steps

Council received a follow up presentation at the April 2, 2018, Study Session from the Director of Public Works regarding an analysis done by Black and Veatch and RH2 regarding improvements to the existing plant and risk mitigation compared to building a new 7.5 MGD facility at an alternate site.

Existing plant rehabilitation (20-year life) $5.57 million.

No feasible cost developed for risk mitigation (fire, flood, landslide, seismic).

7.5 MGD Plant (new) $22.59 million (direct filtration-same as existing plant).

October 2, 2018-Preliminary Engineering 7.5 MGD Water Treatment Plant

Council at the October 2, 2018, Business Meeting approved a professional services contract with HDR Engineering for the preliminary engineering phase for the new 7.5 MGD water treatment plant.

April 2, 2019-2019 through 2039 Capital Improvement Program

Council approved the 20-year CIP at the April 2, 2019, Business Meeting. The 20-year CIP contained the proposed 7.5 MGD water treatment plant project in the water fund.

7.5 MGD water treatment plant 5% design opinion of cost $32 million.

June 4, 2019-2019/2021 Biennium Budget

Council approved the 2019-2021 biennial budget at the June 4, 2019, Business meeting, which included appropriations for the 7.5 MGD Water Treatment Plant.

7.5 MGD water treatment plant 5% opinion of cost $32 million.

June 4, 2019-FY 2020 Water Rates

Council approved a 4% water rate increase at the June 4, 2019, Business meeting. Water rates/revenues support the water fund and in turn all water capital improvement projects including the 7.5 MGD water treatment plant.

August 5, 2019-7.5 MGD Water Treatment Plant Progress Update

Council received a presentational update on the preliminary engineering phase for the new plant at the August 5, 2019, Study Session.

7.5 MGD water treatment plant 30% design cost estimate $36 million.

No proposed staffing increases.

In addition to Council actions, staff has continuously updated AWAC during their regularly scheduled public meetings on project status during 2019. This included a presentation by HDR Engineering, Inc., similar to the one given before Council on August 5, 2019.  

October 1, 2019- Award of a Professional Services Contract; Phase 2, Final Engineering for a New 7.5 Million Gallon per Day Water Treatment Plant

Council authorized a professional services contract with HDR Engineering, Inc. for Final Engineering. The Final Engineering contract allows HDR to proceed forward with the 60%, 90% and 100% iterations of design and cost estimating.

November 19, 2019-Envision Water Treatment Plant Solar

Council clarified their position regarding expectation for solar power and the Envision program associated with the design for the new plant.

April 19, 2021 – Water Treatment Plant Design Envision Update

Provided and comprehensive project update including potential Envision component enhancements for energy efficiency.

January 3, 2022 – Water Treatment Plant Project Update

Provided an update on the project and answered questions that were developed by Council from the April 19, 2021, Study Session.

May 23 & 24, 2022 – Special Meeting

Provided a review of the Capital Improvement Plan with a focus on the water system and treatment plant project.

June 21, 2022

Council approved a resolution decreasing the previously awarded funding through the Infrastructure Finance Authority of $14.8 million (June 7, 2016) to $4.7 million to fund the engineering phase for the new water treatment plant. This was approved because the scope of the project had changed from a 2.5 mgd a plant to a 7.5 mgd plant and staff was coordinating with the Environmental Protection Agency funding for the total project utilizing the Water Infrastructure and Innovation Act funding mechanism.

September 6, 2022 – Contract Amendment with HDR Engineering, Inc.

Council approved a contract amendment with HDR Engineering, Inc. to finalize the plans, specifications and estimates. The Contract amendment was necessary to do additional work required through the process.

September 20, 2022 – Water Bond Resolution

Council approved a water bond resolution for borrowing to support the Water Treatment Plant Project using Environmental Protection Agency Funding.

December 4, 2023 – Water Rates Review     

Provided update on water rates analysis performed by Hansford Economic. The updated rate analysis used the existing biennium budget and projected water treatment plant cost along with forecasting trend increases over the next two bienniums.

March 5, 2024 – Water Bond Resolution

Council approved an updated water bond resolution that repealed the one passed in 2022. The borrowing resolution was updated to reflect full funding for the project from the Environmental Protection Agency.