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Page 1: M Page 1 of 3 - NRDRWWSC€¦ · Justin de Bresser, Senior Manager - Financial Services, City of Lacombe Amber Mitchell, Engineering Services Manager, City of Lacombe Angela Smith,
Page 2: M Page 1 of 3 - NRDRWWSC€¦ · Justin de Bresser, Senior Manager - Financial Services, City of Lacombe Amber Mitchell, Engineering Services Manager, City of Lacombe Angela Smith,
Page 3: M Page 1 of 3 - NRDRWWSC€¦ · Justin de Bresser, Senior Manager - Financial Services, City of Lacombe Amber Mitchell, Engineering Services Manager, City of Lacombe Angela Smith,

Meeting Minutes June 17, 2019 Page 1 of 3

   

REGIONAL WASTEWATER MEETING MINUTES June 17, 2019

COUNCIL CHAMBERS LACOMBE AB

In Attendance:

Members: Councillor Ken Wigmore, Chair, Councillor, Lacombe County Mayor Richard Poole, Vice Chair, Mayor, Town of Blackfalds

Others: Matthew Goudy, CAO, NRDRWWSC

Myron Thompson, CAO, Town of Blackfalds Michael Minchin, Manager of Corporate Services, Lacombe County

Jordan Thompson, Director of Operations & Planning Services, City of Lacombe Justin de Bresser, Senior Manager - Financial Services, City of Lacombe Amber Mitchell, Engineering Services Manager, City of Lacombe Angela Smith, Regional Utilities Foreman, NRDRWWSC Denise Bellabono, Administrative Assistant, NRDRWWSC Guests: Joel Sawatzky, Stantec Consulting Ltd. Ian Cotton, Stantec Consulting Ltd. Regrets: Mayor Grant Creasey, Director, Mayor, City of Lacombe Tim Timmons, County Commissioner, Lacombe County Preston Weran, Director of Infrastructure & Property Services, Town of Blackfalds Todd Simenson, Stantec Consulting Ltd.

1. Call to Order: Chair Wigmore called the meeting to order at 10:14am.

CARRIED

2. Adoption of the Agenda:

MOVED by Vice Chair Poole that the agenda for June 17, 2019 be adopted as presented.

CARRIED

3. Adoption of Previous Minutes

Regular Meeting of May 21, 2019

MOVED by Vice Chair Poole that the minutes for May 21, 2019 Meeting be adopted as amended. CARRIED

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Meeting Minutes June 17, 2019 Page 2 of 3

4. Finance Quarterly Report Senior Manager de Bresser presented to the Commission the quarterly report on operational revenue and expenditures ending March 31, 2019. Blackfalds and Lacombe lift stations are in line with revenue expectations. Budget requisitions will be billed 50% in June and 50% in December to each member. A variance report was provided with current month expenditures and a year to date, majority being in line with the expectations. Borrowing is being finalized with Servus Credit Union and will be provided at the next meeting. MOVED by Vice Chair Poole that the Commission accept the Finance Q1 Report as information. CARRIED

5. Pump Updates

Director Thompson updated the Commission that the investigation is ongoing and key questions relating to warranty coverage have not been resolved. Pump and motor issue options and pricing for power monitoring was provided, as well as pricing for other changes to the lift station which may improve power quality to the motor and reduce the risk if further vibration issues. Recommendations for both the power quality changes and grant funding availability will be provided at the next meeting.

MOVED by Vice Chair Poole that the Commission accept the Pump Updates as information. CARRIED

6. MEGlobal Update

CAO Goudy updated the Commission on the progress of MEGlobal, as they are on track to start construction this summer, and reviewing how the line will be built and who will own it. MOVED by Vice Chair Poole that the Commission accept the MEGlobal Updates as information.

CARRIED

7. Operational Report

The operational report from May 22 to June 14, 2019 was presented by Foreman Smith with updates on landscaping to be completed in July for both Lacombe and Blackfalds equalization storage. Operators continue to support Stantec and contractors in the investigations on the pump vibrations and motor issues, including collecting and recording data on the Lacombe pumps. The last formal training session with Biorem is schedules for June 26th, with further training provided upon request. MOVED by Vice Chair Poole to accept the Operational Monthly Report of June 17, 2019 as information. CARRIED

8. Engineers Report

Mr. Sawatzky updated the Commission that all deficiencies at the Odour Management Facility will be completed by the end of June. Desludging on the lagoons has been completed with topsoil and seeding to be done by June 30th. Minor work is required to improve drainage on landowner’s property

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Meeting Minutes June 17, 2019 Page 3 of 3

and Hamm Construction, along with Stantec, will be meeting with the landowner to discuss a plan on June 13, 2019. MOVED by Vice Chair Poole to accept the Engineer’s Report of June 10, 2019 as information.

9. Next Meeting The next meeting scheduled is for Monday September 9, 2019 at 10:00am in the City of Lacombe Council Chambers.

10. Adjournment:

MOVED by Vice Chair Poole that the North Red Deer Regional Wastewater Services Commission meeting of June 17, 2019 be adjourned at 10:49 am.

CARRIED

______________________ ___________________ Chair Administrator

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Q2 Variance Report Date: September9,2019Prepared by: Justin de Bresser, Senior Manager – Financial ServicesPresented by: Justin de Bresser, Senior Manager – Financial Services PURPOSE: To provide the Commission an update on operational revenue and expenditures for the period ending June 30th, 2019 ACTION/RECOMMENDATION: THAT the Commission accepts this report as information. ISSUE ANALYSIS: The table below highlights the cubes per month for both the Town of Blackfalds, Lacombe County and the City of Lacombe. Cubic Meters billed are as follows; APRIL MAY JUNE AVERAGE YTD LACOMBE 112,682 123,144 129,321 120,601 BLACKFALDS 54,463 54,590 50,616 53,788 LACOMBE COUNTY 1,532 1,496 1,591 1,464 TOTAL 168,677 179,230 181,528 169,832 FINANCIAL IMPLICATIONS: Revenue At the mid point of the year the Commission has received 52% of total revenue. All communities are trending slightly over 50% of expected revenue. Requisitions have also been sent for 50% of the budgeted amounts. No revenue from the Septic receiving station to date. This service should commence by the end of September.

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Expenses: The attached variance report shows current months expenditure as well as year to date. Most expenses are in line with exceptions listed below:

- WCB is over by $778. As Reported on the Q1 report - Contracted Project Management Services will come under by $20,000 as the

agreement has ended. - Legal Fees will come in over budget. Currently over by $5,659. This is due to the

ongoing pump issue. - Other Professional Services is trending under budget at $15,266 - Treatment Charges from the City of Red Deer is trending 5% higher with the offset in

higher revenue for both the Lacombe and Blackfalds. - General Materials and supplies is currently over budget by $492. - Utilities (Water and Wastewater) are projected to come in over budget. This will be

adjusted for 2020. - Electric Power is project to come in $50,000 over as reported in Q1. - Chemicals are trending to be under budget for the year by an estimated $60,000 - Debenture interest and principle will come in under budget as the final borrowing has

not taken place. Estimated $80,000 under budget ALTERNATIVES: N/A ATTACHMENTS:

- Q2 Variance Report

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CITY OF LACOMBEGL5330 1Page :GL Department ReportDate : Sep 05, 2019 Time : 2:13 pm

Year : 2019 Budget : FINAL BUDGET

Period : 6 Group by: Default

Account No. Description CC1 CC2 CC3 Current Year to Date Budget Variance % Used

REGIONAL WASTEWATER REPORTING

REVENUES

05-1-48-35110 Wastewater Volume - City of Lacomb -241,830 -1,296,877 -2,443,110 -1,146,233 53

05-1-48-35130 Wastewater Volume - Town of Blackf -97,627 -620,486 -1,215,500 -595,014 51

05-1-48-42100 Wastewater Volume - Septic Rec. St 0 0 -26,742 -26,742

05-1-48-42200 Line Crossing Agreement Fee 0 -100 0 100

05-1-48-55100 Interest Revenue 118 -4,997 0 4,997

05-1-48-85110 City of Lacombe Contributions -130,984 -130,984 -261,968 -130,984 50

05-1-48-85130 Town of Blackfalds Contributions -130,701 -130,701 -261,401 -130,701 50

05-1-48-85150 Lacombe County Contributions -59,270 -59,270 -118,540 -59,270 50

REVENUES -660,294 -2,243,415 -4,327,261 -2,083,846 52

EXPENSES

05-2-48-13600 WCB 0 1,278 500 -778 256

05-2-48-21100 Travel & Subsistence 45 953 500 -453 191

05-2-48-21400 Membership Fees 0 114 500 386 23

05-2-48-21500 Postage & Freight 0 112 156 44 72

05-2-48-21700 Telephone/Communications-Administr 1,044 3,703 1,540 -2,163 240

05-2-48-21701 Telephone/Communications-Operation 1,421 11,326 29,916 18,590 38

05-2-48-21900 Testing (Sewage Strength Testing) 0 0 8,000 8,000

05-2-48-22100 Advertising & Promotions 0 275 0 -275

05-2-48-23000 Contracted Management Fees 0 3,150 24,000 20,850 13

05-2-48-23100 Accounting & Audit Fees -10,524 0 12,000 12,000

05-2-48-23200 Legal Fees 6,659 6,659 1,000 -5,659 666

05-2-48-23900 Other Professional Services 18 4,734 20,000 15,266 24

05-2-48-25300 Parts & Repairs 2,392 4,033 10,000 5,967 40

05-2-48-25301 SCADA/Monitoring 0 0 20,000 20,000

05-2-48-26300 Equipment 0 273 1,200 927 23

05-2-48-27100 Licenses & Permits 0 536 1,000 464 54

05-2-48-27400 Insurance & Bond Premiums 0 50,165 47,000 -3,165 107

05-2-48-34200 Administrative Costs 0 300 0 -300

05-2-48-35100 Treatment Charges City WWTP 214,633 1,175,354 2,152,123 976,769 55

05-2-48-35200 Operations Contract 40,734 180,750 359,784 179,034 50

05-2-48-35300 Septic Receiving Station-Op & Main 0 0 15,000 15,000

05-2-48-51000 Miscellaneous Expenses 0 3,730 5,000 1,270 75

05-2-48-51100 Meeting Supplies 0 363 0 -363

05-2-48-51400 Office Supplies 0 162 0 -162

05-2-48-52400 General Materials & Supplies 160 5,492 5,000 -492 110

05-2-48-54100 Utilities - Water 3,034 6,678 5,400 -1,278 124

05-2-48-54200 Utilities - Wastewater/Sewer 1,671 3,317 5,400 2,084 61

05-2-48-54300 Utilities - Natural Gas 454 15,958 30,000 14,042 53

05-2-48-54400 Utilities - Electric Power 22,523 139,101 228,000 88,899 61

05-2-48-56200 Chemicals 21,415 76,852 264,000 187,148 29

05-2-48-76100 Transfer to Operating Reserve 0 0 100,000 100,000

05-2-48-76200 Transfer to Capital Reserve 0 0 300,000 300,000

05-2-48-83100 Debenture Debt Interest 0 81,525 301,955 220,430 27

05-2-48-83200 Debenture Debt Principal 0 66,176 264,955 198,779 25

EXPENSES 305,680 1,843,069 4,213,929 2,370,860 44

-400,346REGIONAL WASTEWATER REPORTING Total -354,614 -113,332 287,014 353

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Alternative Appointed Official to CAO Date: August28, 2019Prepared by: DeniseBellabono,AdministrativeAssistantPresented by: Matthew Goudy,CAO PURPOSE: To provide an alternative appointed official for the Commission in the absence of the CAO. BACKGROUND: To improve the administration efficiency of the Commission there are normally two people (elected official and appointed official) that have signing authority on behalf of the Commission for cheques and documents. The elected official with signing authorization is the Chairperson and the Vice Chairperson in the event the Chairperson is not available. The appointed official would be the CAO and another appointed official in the event the CAO is not available. Both elected officials cannot be part of the preparation of cheques and both appointed officials cannot be part of the preparation of cheques. The other appointed official was John Van Doesburg, the contracted administrator for the Commission, and upon his resignation was removed from his appointment and signing authority. RECOMMENDATION: THAT the Commission appoint Jordan Thompson as the alternative appointed official with signing authority for Commission cheques and documents in the absence of the CAO. ISSUE ANALYSIS: Since John Van Doesburg’s departure in April 2019, there has been only one appointed official, CAO Goudy. In the absence of CAO Goudy, this leaves no appointed official to sign cheques and/or documents with the elected official. Appointing an alternative appointed official will allow for efficiency in administrations processing of cheques and documents for the Commission. ALTERNATIVES: The Commission may choose to; A. appoint Jordan Thompson as the alternative appointed official with signing authority for commission cheques and documents in the absence of the CAO. OR B. nominate and appoint an official. C. direct Administration not to proceed with the request at this time. ATTACHMENTS: None

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Fee for Line Crossing Policy Date: August26, 2019Prepared by: DeniseBellabono,Administration AssistantPresented by: Matthew Goudy,CAO PURPOSE: To recommend, to the Commission, the creation of a policy with respect to crossing fees the NRDRWWSC transmission lines. BACKGROUND: The number of crossing applications the Commission receives will vary year to year, but was approximately 6 in the last year. Administration works with each applicant to ensure the Commission’s infrastructure and rights are protected while limiting liability to the Commission. Ultimately, the applicant enters into a crossing agreement prepared by Administration and field operators provide oversight of the crossing construction. The process is routine for most applications but others can be more complicated. ACTION/RECOMMENDATION: THAT the Commission endorse the Fee for Line Crossing Policy as proposed. ISSUE ANALYSIS: There is no current fee policy for line crossings of the NRDRWWSC pipeline, but Administration has been charging $250 per crossing application. As this fee was set based on being consistent with the fees set in the area, the North Red Deer River Water Services Commission recently changed their crossing application fee to $500 so that is what is reflected in the proposed policy. The Commission receives applications from telecommunication companies, power companies, lease site operators for pipelines, conduits, and access roads crossing the Commission’s easement. Administration has been processing these applications as typical crossings applying the same process as outlined above. Restricting these crossing would burden the crossing companies with little to gain on the part of the Commission – the crossing agreement transfers virtually all of the liability of the crossing to the crossing company. Administration recommends the policy allow for 3rd party crossings through its easements. Administration recommends the fee be set to $500 to reflect the actual costs of administering a crossing application and associated field operations.

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FINANCIAL IMPLICATIONS: Currently the NRDRWWSC Line Crossing Application fee is informally set at $250 at this time. ALTERNATIVES: The Commission may choose to: A. Accept/endorse the Fee for Line Crossing Policy with a set fee of $500 as proposed. AND B. Direct Administration modify the Fee for Line Crossing Policy as directed by the Commission. OR C. Direct Administration not to proceed with the request at this time. ATTACHMENTS: Proposed NRDRWWSC Fee for Line Crossing Policy

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Purpose of Policy The purpose of the policy is to set fees for 3rd party roadway, pipeline, conduit and overhead utilities, crossing the NRDRWWSC transmission lines and laterals Fees Crossing Agreement Application Fee $500.00

Additional engineering fees will be charged if needed for the crossing. The fee will be the total cost of engineering plus 10% for administration. Procedure

1. Application Form a. Applicant will complete an application form and send to Commission Officer with attached application

fee. 2. Application Review

a. Application will be reviewed and the appropriate agreement will be prepared. b. If required, the Commission Engineer will review and forward comments to the Commission

Management. Application Records All application records and agreements will be held at the Commission Office.

_______________________________ Chairperson

_______________________________ Chief Administrative Officer

Policy Title: Line Crossing Agreement Fee Policy No.

02

Approval Date: Supercedes:

Revision Date: Review Date:

Reference:

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NRDRWWSC Pipeline Project – Projected Closing Balances Date: August26, 2019Prepared by: Matthew Goudy,CAOPresented by: Matthew Goudy,CAO PURPOSE: To update the Commission Board on projected closing balances for the North Red Deer Regional Wastewater Services Pipeline project, including total project costs, and debt borrowing for the NRDRWWSC. BACKGROUND: In 2016, the Commission received approval to proceed with construction of the Pipeline project. The original project approvals (both from the Commission and the Province) totaled $71,045,912. The NRDRWWSC Business Plan projected debt borrowing of $8.8M would be required for completion of the NRDRWWSC Pipeline project. Starting shortly after commissioning, pumps at the Lacombe lift stations showed signs of excessive vibration, ultimately resulting in multiple pump failures due to dropped impellors. These issues have been remedied through optimization of pipe flow components, pump system restraints, and the replacement of ‘low trim’ impellors with ‘wide trim’ impellors. Vibrations are within acceptable tolerances, and the pumps are operating as designed. In February two pumps experienced electrical failure due to failed motor windings. After extensive testing, monitoring, and root cause analysis, the pump manufacturers have agreed to credit the cost of new motor windings toward the repair or replacement of the failed pumps. Additional filtering, monitoring, and inspections have (or will be) implemented to determine if other pumps are prone to the same failure. During the transportation of the failed pumps, significant damage occurred, due to the fault of the shipper. Repair of this damage has been estimated at over $100,000 per pump. Alternate arrangements have been made to purchase new pumps at a discounted rate and repair the damaged pumps to have on standby for backup scenarios. RECOMMENDATION: That the Commission accept this report as information, AND

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approve expenditures totalling $71,535,910 for the NRDRWWSC Pipeline Project. ISSUE ANALYSIS: As the project ends, administration has projected costs to completion. Approximately $610,000 of construction work remains on the two outstanding lift station contracts. The total projected cost to complete, including all engineering, equalization storage work, purchase of land, and remedying of pump issues, is $71,535,910. This exceeds the previous project approval by $490K. Administration expects to recover a portion of this cost through insurance, and additional grant approvals, but cannot guarantee success through either channel. The additional costs have been submitted for grant repayment, but may not be deemed eligible, as they exceed the original approvals. Verbally, the City’s grant administrator confirmed the costs would be deemed eligible, but this individual has recently retired from the provincial government. The additional costs are driven by extra work in the preparation and construction of equalization storage facilities to provide resiliency at the Blackfalds and Lacombe sites, as well as pump optimization and performance issues that were present at both facilities. There has been extensive additional effort by both administration and the Commission’s engineering consultant to address pump performance issues that have arisen after installation and commissioning. While the City of Lacombe holds an ‘all-in’ lump sum annual contract, the engineering consultants have requested consideration (at a greatly reduced rate) for the additional effort they have put in, beyond the original project scope. Stantec has been instrumental in holding contractors and manufacturers accountable, and securing discounted repair and replacement costs for the faulty/damaged pumps. FINANCIAL IMPLICATIONS: Although the total project costs are expected to come in $490K higher than originally approved, the final costs borne by the Commission are expected to be much lower than initially projected. Through negotiations with the City of Red Deer, administration has been able to secure payments of $2M for shared infrastructure components. This ‘third party’ contribution, along with lower than expected financing charges throughout the project, have reduced the Commission’s anticipated ‘project end debenture’ from the original approval of $8.8M to a maximum of $6.7M. This ‘worst case scenario’ assumes the Commission is unsuccessful in recovering any costs for shipping damage to the pumps, receives no further approvals for grant funding, and is requested to remit grant funding currently within the Commission’s account. Administration is currently working on the 2020 operating budget, which will reflect the lower than expected borrowing costs for the project.

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ALTERNATIVES: The North Red Deer Regional Wastewater Services Commission Board may choose to:

A. Approve the additional project funding, as requested. OR B. Direct Administration to modify the project scope to maintain the current budget. OR C. Direct Administration to proceed in an alternate manner, as directed by the Commission Board.

ATTACHMENTS: NRDRWWSC Capital Expenditure Report (2019-09-03) Additional Fee Request – Pump Damage/Warranty/Insurance Issues Stantec Consulting

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Summary of Project Costs Updated Sept 4, 2019

G2015 2016 2017 2018 2019 Totals 

General Supplies ‐$                            68,736.86$                     7,518.03$                 76,254.89$              ‐$                      76,254.89$                (76,254.89)$        

Engineering 

Stantec (incl. Specialty Services and Sub‐Con 7,793,680.66$           570,530.31$        2,216,903.97$         3,664,440.82$                1,253,611.95$         75,657.26$              7,781,144.31$         157,231.00$       7,938,375.31$           (144,694.65)$      

Other (Land, PM, Morrison Hershfield, Lega ‐$                            5,004.90$            629,814.59$            165,560.10$                   1,776.78$                 802,156.37$            ‐$                      802,156.37$              (802,156.37)$      

Construction Contract 1 ‐ Whissell 8,490,892.50$           7,870,845.66$                568,489.37$            8,439,335.03$         ‐$                      8,439,335.03$           51,557.47$          

Construction Contract 2 ‐ Alpha 4,420,952.22$           2,794,364.89$                1,236,085.68$         164,722.85$            4,195,173.42$         10,000.00$          4,205,173.42$           215,778.80$       

Construction Contract 3 ‐ Pidherney's 11,688,183.40$        10,439,996.04$             1,048,885.19$         11,488,881.23$       ‐$                      11,488,881.23$        199,302.17$       

Construction Contract 4 ‐ Alpha 11,776,190.07$        461,313.16$            7,239,620.51$                2,746,243.57$         1,163,665.62$         11,610,842.86$       132,775.00$       11,743,617.86$        32,572.21$          

Construction Contract 5 ‐ Hamm 16,886,676.72$        16,179,159.51$             408,764.47$            16,587,923.98$       ‐$                      16,587,923.98$        298,752.74$       

Construction Contract 6 ‐ Chandos 6,989,337.40$           5,648,938.14$                1,258,857.75$         6,907,795.89$         352,351.61$       7,260,147.50$           (270,810.10)$      

Project Management ‐$                            43,493.85$                     64,519.36$              7,262.80$                 115,276.01$            ‐$                      115,276.01$              (115,276.01)$      

Interest Expense ‐$                            71,285.38$                     88,560.45$              159,845.83$            ‐$                      159,845.83$              (159,845.83)$      

Land 3,000,000.00$           2,552,671.70$                130,276.96$            25,974.33$              2,708,922.99$         10,000.00$          2,718,922.99$           281,077.01$       

71,045,912.97$        575,535.21$        3,308,031.72$         56,739,113.46$             8,813,589.56$         1,437,282.86$         70,873,552.81$       662,357.61$       71,535,910.42$        (489,997.45)$      

489,997.45$        

ETC Details:

Engineering  Pump motor winding failure investigation, analysis and coordination, candy cane level sensor coordination and programming 

C2 ‐ OMF  Biofilter sump piping realignment and possibly new sump pump

C4 ‐ Blackfalds LS Supply and install new duty pumps, candy cane level sensors and ground fault relays

C6 ‐ Lacombe LS Supply and install new duty pumps, candy cane level sensors and ground fault relays, modifications for improved pump operations due to vibrations, lagoon liner bubbles

Land  Misc. seeding and Land Solutions costs 

Account Name

From General Ledger Trial Balance

Over Grant Eligible Amount 

Remaining 

Budget

Estimated Final 

Total

Current 

Estimate to 

Complete

Contract Budget 

(Grant Eligible)Contract

H:\GENFILES\48 North Red Deer Regional Wastewater Services\132 ‐ Meetings\2019\4. September 2019\FOR BOARD NRDRWWSC‐Capital‐Expenditure‐Report_2019‐09‐03

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Stantec Consulting Ltd.

1100-4900 50th Street

Red Deer AB T4N 1X7 Tel: (403) 341-3320 Fax: (403) 342-0969

September 3, 2019 File: 113929319-00

Attention: Matthew Goudy, P.Eng., NRDRWWSC Chief Administrative Officer NRDRWWSC c/o City of Lacombe 5432 – 56 Avenue Lacombe, AB T4L 1E9

Dear Mr. Goudy,

Reference: North Red Deer Regional Wastewater System – Additional Engineering Fee Request for Efforts Related to the Pump Motor Winding Failures and Damage from Falling off the Truck

Over the course of the last 12 months, there has been various concerns and failures with the regional lift station pumps, primarily in the Lacombe Regional Lift Station, but also with one pump in the Blackfalds Regional Lift Station. This Change Order summarized the efforts for Stantec to perform the inspection, investigation and engineering analysis for the various concerns and failures.

The concerns and failures are as follows:

1. Pump vibrations exceeding the manufacturers acceptable tolerance, and resulting dropped/damaged impellers – Lacombe LS only

2. Pump motor winding failures and damage from the pumps falling off the truck – One pump from both Lacombe and Blackfalds LS

Task 1 – Pump Vibration Concerns at Lacombe LS

It was back in August 2018 when the first pump, Pump 103 failed due to the impellers dropping into the volute. One failure was caused by the impeller bolt shearing and one was due to the impeller bolt coming loose and falling out. A subsequent similar failure occurred in November 2018 with Pump 101 and both pumps were repaired by Sulzer/TDH. The latest impeller dropped in July and was recently repaired. The NRD operations team is now inspecting the impeller bolts on the two duty pumps currently in use on a monthly basis to prevent additional impellers from dropping and getting damaged until we can consistently lower the vibrations. The root cause of the impellers dropping is unknown to date, however it appears to be a combination of things including constructing the pump bases too small, additional pipe supports needed, and different hydraulics (less friction loss) than originally modelled. We are proposing to install larger impellers to operate the pumps at a better duty point.

To date, our team has spent what is estimated to be nearly 700 hours over the last 11 months to find the cause of the vibrations and put things in place to resolve the vibration concerns. This cost amounts to over $130,000. The pump vibrations are at acceptable limits (manufacturers acceptable limit is 9mm/s) on Pump 101 based on the items and operational modifications implemented to date including the full trim impeller. We propose to install the full trim impeller on the other pumps to lower their vibrations.

Stantec is fully committed to resolve this issue and the efforts to investigate, analyze and resolve the pump vibration concerns at the Lacombe Lift Station. We will not be requesting compensation from the Commission for this work.

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September 3, 2019

Matthew Goudy, P.Eng., NRDRWWSC Chief Administrative Officer

Page 2 of 3

Reference: North Red Deer Regional Wastewater System – Additional Engineering Fee Request for Efforts Related to the Pump Motor Winding Failures and Damage from Falling off the Truck

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windings-2019-09-03 docx

Task 2 – Pump Motor Winding Failures and Damage from Falling off the Truck

It was back in February of this year when Pump 101 in the Blackfalds LS failed and wouldn’t start back up due to an overcurrent fault. The cause was unknown initially but after the initial investigation it was found that the motor windings overheated in a single location causing about a one inch diameter burn hole – the windings failed. In early March Pump 102 in Lacombe had the same winding failure.

Over the last 7 months Stantec has been supporting the Commission, Contractor and Pump Supplier and Manufacturer to resolve the issue of the two pump motor winding failures, along with the damage from the pumps falling off the truck while being shipped to the repair factory in Edmonton. The extra damage from both pumps falling off the shipping truck is extensive and will likely result in an insurance claim.

In order to provide full support to the Commission, find the root cause, identify cost responsibly and get the pumps back in service, we initiated a weekly conference call with the Contractor, Supplier and Manufacturer starting back in April, and we increased this frequency to twice per week in June and continued to have twice per weeks calls to date. Furthermore, we have performed numerous site inspections and investigations with the Contractor and Supplier and on our own in an attempt to determine the root cause. This included VFD tests for voltage spikes, grounding checks, cable analysis, and various other tests and analysis. We have also visited the Continental repair shop in Edmonton, an authorized Sulzer repair shop, where the pumps were shipped for investigation and possible repair. Our visit to the repair shop was to have a further and more detailed look at the windings when they were exposed to gather data and pass on to various specialists in an attempt to find the root cause of the failure.

We have ruled out several possible causes, however to date the exact root cause is still unknown. It may simply be due to a possible manufacturing flaw with the motor (soft motor) being supplied by WEG, the Sulzer motor supplier, however we were not able to obtain the motor build sheets from WEG to confirm this after numerous requests. We are continuing our investigation in an attempt to find out more about the cause of failure.

To date, our team has spent what is estimated to be over 800 hours over the last 7 months to find the cause of the motor winding failures, and to work with the Contractor and Supplier to analyze the damage from the drop off the truck and identify various repair and replacement options. This cost amounts to over $150,000. Although we have not been able to definitively find the root cause of the failures, through our numerous frequent phone calls and site visits with Sulzer, along with the extensive amount of investigation and analysis preformed, Sulzer has stated that they will be willing to replace the two motor windings at this time (if later it is found that the root cause was not due to the Sulzer pumps or motors, they stated they would like to recover this amount). This is good news and a positive step forward to getting the two pumps back in operation. We are still working through the insurance claim with Chandos and the Trucking Company, and will provide the details on the repair costs vs new pump costs in Tech Memo #18.

In an effort to be fair and reasonable to the NRDRWWSC Commission, and to invest in the strong working relationship we have with the Commission, we are willing to forgo the pump vibration costs incurred (over $130,000).

The total engineering fees requested for the pump motor winding failures and damage from falling off the truck is $150,230.

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02468

10

Alberta One-Call Locate Requests

2018

2019

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Engineer’s Report - Stantec September 3, 2019 North Red Deer Regional Wastewater Services Commission – Engineer’s Report

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Engineer’s Report September 3, 2019

North Red Deer Regional Wastewater Services Commission

(NRDRWWSC)

Submitted to: North Red Deer Regional Wastewater Services Commission Matt Goudy, P.Eng. – CAO Jordan Thompson, CET, PMP

Submitted by: Stantec Consulting Ltd. - Red Deer

Per: Todd Simenson, P.Eng. Joel Sawatzky, P.Eng.

FILE 113929319

1. Construction Progress

a) The construction of the regional system is complete. Remaining clean-up of seasonal deficiencies at the Lacombe and Blackfalds lift stations will be addressed during the construction warranty period.

b) The Construction Completion Certificates (CCCs) have been

approved for Contracts 1, 3, 5, and 6. Contracts 2 and 4 CCC’s will be issued shortly as the work with the stairs and equalization storage is nearly complete. O&M Manuals and Plan of Record drawings are complete and submitted for all Contracts 1 through 6.

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Engineer’s Report - Stantec September 3, 2019 North Red Deer Regional Wastewater Services Commission – Engineer’s Report

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2. Final Clean-up

a) General

• Operator’s 6-months’ training for Biorem, Envent and the camera security system was competed on June 26.

b) OMF • The biofilter stairs are now complete.

• The biofilter sump piping will be re-routed to the stripping chamber to eliminate the risk of corrosion on the building sump pump which demonstrated to date to significantly shorten the life of the pump. The circulation water required for the OMF becomes very acidic.

c) Blackfalds LS

• Equalization storage work is complete.

• The perimeter fencing and final site gravels and seeding will be completed by mid-September.

• Candy Cane back-up level sensors are being installed at both Blackfalds and Lacombe to improve the reliability of the sensors, significantly reducing sensor downtime and the need for repeated operator intervention.

• Pump Motor Failure: See the Lacombe LS update for the latest information.

d) Lacombe LS

• Equalization storage work is complete; however air/gas bubbles have formed under the Cell 8 liner and we are investigating how to release the bubbles.

• A few items will be monitored through the warranty period and corrected prior to FAC as needed.

• Pump Vibrations

• Enlarged concrete bases and additional pipe supports have been installed.

• Stantec found that installing a full trim impeller, a standard variant to the impeller originally supplied for the lift station pumps, significantly improved the vibrations.

• The manufacturer is providing new impellers at no cost to the Commission, however the installation cost will still need to be covered.

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Engineer’s Report - Stantec September 3, 2019 North Red Deer Regional Wastewater Services Commission – Engineer’s Report

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• Further wet well level and pump ramp time optimizations will be implemented following further testing with the full trim impeller.

• The full trim impeller along with the concrete pump bases have reduced the pump vibrations to within manufacturers spec of 9mm/s. Due to this we are confident that with the added pipe supports and further wet well optimizations implemented in September, this will resolve the pump vibration issue.

• Pump Motor Failures:

• One pump in Lacombe and one pump in Blackfalds failed due to the motor windings overheating.

• While shipping the pumps for analysis and repair, they fell off the shipping truck and incurred extensive damage.

• After many investigations, analysis and discussions with several industry specialists, and due to the extensive damage from falling off the truck and the negative warranty implications that come with that, it was deemed that a pump replacement will provide an overall better value to the Commission long term. Therefore, pump replacement is recommended rather than repair of the existing pumps.

• The pump manufacturer is providing a 25% discount per pump, and will repair the damaged windings for the Commission to have as spares on-site.

• Optimization item – Ground Fault Monitoring Relays are recommended to be installed at Blackfalds and Lacombe to provide improved monitoring of the circuit for early detection of an incident prior to it causing permanent damage to the motors.

e) Pipeline

• Minor seeding work on a land owners pasture was completed on August 28. Land Solutions confirmed that this was the last outstanding landowner item.

3. Summary of Project Balance – Engineering, Construction, and Land

Reference update from Justin de Bresser. If needed, the summary of project balance will be updated later to provide an update at the next meeting.