title
To authorize the Chief Administrative Officer, for and on behalf of the City of Richmond, to execute a Financing Agreement between the City of Richmond and the Virginia Resources Authority for the purpose of funding the City’s Wastewater Treatment Plant Thickening and Dewatering Facilities Improvements project.
body
THE CITY OF RICHMOND HEREBY ORDAINS:
§ 1. That the Chief Administrative Officer, for and on behalf of the City of Richmond, be and is hereby authorized to execute a Financing Agreement between the City of Richmond and the Virginia Resources Authority for the purpose of funding the City’s Wastewater Treatment Plant Thickening and Dewatering Facilities Improvements project. The Financing Agreement shall be approved as to form by the City Attorney and shall be substantially in the form of the document attached to this ordinance.
§ 2. This ordinance shall be in force and effect upon adoption.
City of Richmond
Intracity Correspondence
DATE: April 7, 2025 EDITION: 1
TO: The Honorable Members of City Council
THROUGH: The Honorable Danny Avula, Mayor
THROUGH: Sabrina Joy-Hogg, Interim Chief Administrative Officer
THROUGH: Sheila White, Director Finance
THROUGH: Meghan Brown, Acting Director Budget
THROUGH: Scott Morris, Director, DPU
FROM: Billy Vaughan, Deputy Department Director, Senior, DPU
Eric Whitehurst, Deputy Department Director, Senior, DPU
RE: Virginia Clean Water Revolving Loan Fund (“VCWRLF”); Financial and Construction Assistance Program; Wastewater Treatment Plant Sludge Thickening and Dewatering Facilities Improvements.
Loan Award #: C-515861 (LOAN)
ORD. OR RES. No. ______________
PURPOSE: To authorize the Chief Administrative Officer to execute the attached Financing Agreement with Virginia Resources Authority (VRA), as administrator of the Virginia Clean Water Supply Revolving Fund (VCWRLF). This Agreement is valued at $28,500,000. This is for the purpose of funding portions of the City’s Wastewater Treatment Plant Thickening and Dewatering Facilities Improvements project.
BACKGROUND:
The City of Richmond’s Wastewater Treatment Plant is a tertiary treatment facility with a wet weather capacity of 75 MGD and a dry weather flow design capacity of 45 MGD. Opened in 1958 and located along the south bank of the James River, the WWTP serves a population of 225,000 in a City with a combined sewer system.
The City’s WWTP treatment of wastewater solids utilizes solid bowl centrifuges for sludge dewatering and thickening. The centrifuges were installed in the 1980s and have undergone continual servicing since their installation. The existing centrifuges are nearing their end of life and downtime for maintenance has become excessive, lasting 6 months to a year to undergo repairs. Maintenance costs associated with these repairs have increased to as high as $840,000 in 2015 and $256,000 in 2016.
The current dewatering facilities were renovated in 1987 to replace the original four (4) vacuum presses with five (5) new Sharples Pennwalt Decanter Centrifuges. These centrifuges were last upgraded with new AC back drives and control panels with automatic torque controls in 2007. Two (2) dewatering centrifuges are needed to handle the solids load of the facilities with one spare for redundancy. These 190 hp units have significantly higher operational electricity cost than current generation centrifuges.
This construction project includes site, process mechanical, and electrical improvements at both the Thickening and Dewatering Facilities. In summary, the project includes the replacement and installation of centrifuges, pumps, conveyors, polymer systems, electrical systems, instrumentation and controls, HVAC equipment, plumbing, and architectural items. The site work includes drainage and new access roads, as well as the installation of a new masonry building, a new metal building, and a new large outdoor enclosure. Additionally, the project includes the installation of temporary facilities and equipment to maintain WWTP operations during construction.
The $28,500,000 loan funding will be utilized for the construction of this project. These funds are provided at 0.5%, up to 25 years. These funds will support the purchase of equipment and the construction of related infrastructure. Program requirements have to be met, and the loan must be closed by December 31, 2028. Currently the project is scheduled for completion in March of 2026.
COMMUNITY OUTREACH: None.
STRATEGIC INITIATIVES AND OTHER GOVERNMENTAL: None.
FISCAL IMPACT: Reduction of interest expense of approximately $2 million. Debt service on this loan will follow DPU’s standard fiscal policy.
DESIRED EFFECTIVE DATE: Upon adoption.
REQUESTED INTRODUCTION DATE: May 12, 2025
CITY COUNCIL PUBLIC HEARING DATE: May 27, 2025
REQUESTED AGENDA: Consent
RECOMMENDED COUNCIL COMMITTEE: Finance and Economic Development Standing Committee (May 21, 2025)
AFFECTED AGENCIES: Department of Public Utilities, Department of Budget and Strategic Planning, Department of Finance
RELATIONSHIP TO EXISTING ORD. OR RES.: Companion Ordinance 2025-xxx
ATTACHMENTS: Loa n Authorization: DEQ Award No. C-515861
STAFF: Billy Vaughan, DPU, 804-646-5232
Eric Whitehurst, DPU, 804-646-3780
E-COPIES: Stephen Morgan, Water Treatment Engineering Manager, DPU; Jarvis Koonce, Wastewater Treatment Plant Operations Manager, DPU