The City of Sugar Land (City) owns and maintains four (4) Wastewater Treatment Plants (WWTP). The Brazos River Authority (BRA) constructed the North WWTP in 1975. The City acquired ownership of the facility in 2005 and elected to continue contracting operations with BRA. The plant is permitted to treat 6 million gallons of wastewater per day (MGD). Last year the North WWTP averaged 4.2 MGD. The South WWTP was transferred to the City after annexation of Ft. Bend County MUD 13 in 1995. The South WWTP has also been operated by BRA since 2005. The South WWTP is currently permitted to treat 7.5 MGD. Last year the South WWTP averaged 4.4 MGD. The South WWTP is also home to a reclaimed water facility, which provides reclaimed water for irrigation and Amenity Lake filling in the Riverstone area. On December 12, 2017, the WWTPs in Greatwood and New Territory were transferred to the City after the annexation of these two subdivisions. Si Environmental (Si) has historically operated these WWTPs and, prior to annexation, City Council approved a contract with Si to continue operating the WWTPs in Greatwood and New Territory through the end of FY18.

Each year as part of the annual budget process, BRA provides the City with a breakdown of the upcoming year’s financial needs. Included in this report is a 5-year capital improvement plan along with the details of the proposed Consumer Price Index (CPI) adjustment for operations, changes in chemical costs, and changes in sludge hauling costs. The 5-year CIP details major process units that have reached the end of their useful life and looks forward to try to prevent major mechanical failure. Each year the City reviews these recommendations and works with BRA to complete as many improvements as the budget allows. The FY18 projects submitted by BRA and approved by City Council is as follows.         

The proposed costs detailed in this plan are provided by BRA. BRA provides the labor for these projects within the existing operations contract at no additional cost to the City. When possible BRA replaces the aging assets with a new version of the same equipment. The majority of the equipment must be replaced with materials from the same manufacturer. Many of the process units are designed with specific dimensions and retrofitting different equipment is often costly. When there are alternative technologies or when materials can be competitively bid, BRA will meet or exceed all City purchasing guidelines. As a public entity, BRA is under the same requirement to meet the bidding regulations of the state. BRA also provides the City with a warranty on all work performed.

The schedule includes the work identified being completed before the end of FY18. In order for the City to compensate BRA for this work, a change order in the amount of $416,000.00 is required. This change order is within the 25% rule as outlined by state law and City Purchasing Policy PU-114.

            Current Operating Contract                $2,175,756

            Change Order Capacity (25%)           $   543,939

            Proposed Change Order (~19%)        $  416,000

            Remaining Capacity                           $   127,939

Staff recommends City Council approve a change order to the current operations contract with BRA in the amount of $416,000.00. City staff will review and approve all invoices prior to releasing the funds to BRA. City staff will inspect all work.