NORTH CAROLINA
EXECUTIVE SUMMARY
Meeting Date: 9/28/2009
AGENDA #7g
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TOWN OF CHAPEL HILL NORTH CAROLINA EXECUTIVE SUMMARY |
Meeting Date: 9/28/2009 |
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| Title of Agenda Item:
OWASA Odor Elimination Report. |
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| Background: On June 8th, Council requested a follow-up from OWASA regarding completion of the Phase III Odor Control Project at the Mason Farm Wastewater Treatment Plant. | |||
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| Fiscal Note:
The cost of service implications associated with the odor control improvement work at the Mason Farm WWTP for OWASA customers are significant. These costs fall into three main categories: Capital Improvements Program (CIP) Costs: After completion of Phase III, this will total $9.9 million (please note that this is less than $11.7 million total provided previously because it only includes those costs directly associated with odor control facilities/equipment rather than the total construction costs for the new covered headworks facility that was completed in 2007). Operations and Maintenance (O&M) Costs: Annual O&M costs after completion of Phase III will be approximately $250,000 per year. Future Replacement Costs: All odor control components and equipment that is installed will eventually have to be replaced. Because of the harsh, corrosive environment at the WWTP, the design service life for much of this equipment is probably shorter than most would believe (for instance, the covers and air treatment equipment recently installed at the Primary Clarifiers have design service lives of 20 and 15 years, respectively). While it is difficult to precisely determine the exact impact this odor control improvement work will have on OWASA’s rates over time, it is clear that the capital work through Phase III will contribute to rate increases of no less than 4.5%, that the perpetual annual O&M costs after completion of Phase III will increase rates annually by about 1.4%, and that the costs associated future replacement will result in another round of significant rate increases approximately 15 years from now. |
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| Recommendations: The Council will receive the report. | |||
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| ATTACHMENTS: Viewing attachments may require Adobe Acrobat. |
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| OWASA Letter and Resolution | |||