Agenda Packet - 2024-01-30 Special503-534-4225 380 A AVENUE PO BOX 369 LAKE OSWEG O, OR 97034 WWW.LAKEOSWEGO.CITY
AGENDA
CITY COUNCIL SPECIAL MEETING
Tuesday, January 30, 2024
4:30 p.m.
City Hall Council Chamber - 3rd Floor
380 A Avenue, Lake Oswego, OR 97034
Staff Contact: Kari Linder, CityRecorder@lakeoswego.city
Virtual Access
This meeting will be held in
person. To participate remotely,
please email the City Recorder by
noon the day of the meeting.
ADA Accommodation Requests
lakeoswego.city/accommodation
503-635-0282; Relay 711
Please allow four business days to
process your request.
Translation Services
Traducción o interpretación
翻译或传译
통역혹은번역
503-534-5738
This meeting will be livestreamed on the City's YouTube Channel and at lakeoswego.city. The meeting will also
be broadcasted live on Tualatin Valley Community TV; check tvctv.org for details.
1.CALL TO ORDER
2.ROLL CALL
3.PLEDGE OF ALLEGIANCE
4.COUNCIL BUSINESS
4.1 Wastewater Treatment Facility Project.
Motion:
1)Authorize the City Manager to provide notice to EPCOR Foothills
Water Project (EFWP) that the term of the preliminary services
agreement has been completed, and approve reimbursement to
the EFWP for $7,171,092.12; and
2)Direct staff to explore competitive procurement methods,
including special procurement and alternative contracting
methods for final design, construction, operation and
maintenance of a new wastewater treatment facility.
5.ADJOURNMENT
503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY
Subject: Wastewater Treatment Facility Project
Meeting Date: January 30, 2024
Report Date: January 22, 2024
Staff Member: Anthony Hooper, Deputy City Manager
Department: City Manager’s Office
Action Required Advisory Board/Commission Recommendation
☒Motion ☐Approval☐Public Hearing ☐Denial
☐Ordinance ☐None Forwarded
☐Resolution ☐Not Applicable
☐Information Only Comments:
☒Council Direction☐Consent Agenda
Staff Recommendation: (1) Find that the term of the preliminary services agreement (90%
design deliverable) has been completed; (2) authorize reimbursement to EPCOR Foothills
Water Project for approximately $7.2 million for preliminary services rendered; and (3) and
provide direction to staff to explore a competitive proposal method for final design,
construction, operation and maintenance of a new wastewater treatment facility.
Recommended Language for Motion:
1)Authorize the City Manager to provide notice to EPCOR Foothills Water Project (EFWP)
that the term of the preliminary services agreement has been completed, and approve
reimbursement to EFWP for $7,171,092.12; and
2)Direct staff to explore competitive procurement methods, including special procurement
and alternative contracting methods for final design, construction, operation and
maintenance of a new wastewater treatment facility.
Project / Issue Relates To: Collaborate with the City of Portland to make a financially and
environmentally responsible long-term investment in a wastewater treatment facility.
Issue before Council (Highlight Policy Question):
☒Council Goals/Priorities ☐Adopted Master Plan(s)☐Not Applicable
ISSUE BEFORE COUNCIL
EPCOR Foothills Water Project (EFWP) has completed the Preliminary Services Agreement (PSA)
regarding design and site evaluation for a new wastewater treatment plant, which completes
the PSA term. Staff seeks approval for reimbursement to EPCOR for its PSA costs. Staff is also
seeking Council direction on the next steps for the Council Initiative to collaborate with the City
4.1
Page 2
503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY
of Portland to make a financially and environmentally responsible long-term investment in a
wastewater treatment plant. Staff recommends exploring a competitive procurement
(including special procurement and alternative contracting methods) method in lieu of
proceeding with EPCOR Foothills Water Project (EFWP), primarily because staff finds it is likely a
more economical method of delivering the project.
BACKGROUND
The existing Tryon Creek Wastewater Treatment Plant (TCWTP) was built in 1964 and is owned
and operated by the Portland Bureau of Environmental Services (BES). The plant is reaching the
end of its useful life cycle and needs to be upgraded or replaced.
Since 2018, the cities of Lake Oswego and Portland have been actively exploring replacement of
the existing Tryon Creek plant. Pursuant to Resolution 18-55, the Council approved a special
procurement for the design, build, financing, operation, and maintenance (DBFOM) of a new
wastewater treatment facility under a public-private partnership. Following a competitive
DBFOM solicitation for qualifications and proposals, on May 4, 2021, the City entered into a
Preliminary Services Agreement (PSA) for the DBFOM of a new plant with EPCOR Foothills
Water Project, Inc. (EFWP). The PSA was originally intended to develop designs to the 60%
phase as well as complete a large number of deliverables that include advancing permitting,
scoping costs, developing schedule, completing archeological and environmental studies, and
many other items. Under the PSA, EFWP advanced about $7.2 million for these costs, to be
paid upon completion of the term of the PSA (or included in the Project Agreement financing).
In April 2023, the Council authorized Amendment 1, extending the work under the PSA with
EFWP for up to one year, during which EFWP advanced designs to a 90% level as well as
completed a number of deliverables. EFWP has successfully completed the PSA. The cost for
the Amendment 1 work was about $3.7 million, and was paid on an ongoing basis.
DISCUSSION
PSA Termination / Compensation to EWFP
Under the PSA, the term ends upon completion of the Preliminary Services, including Additional
Services (90% design) Compensation to EPCOR is due for the Preliminary Services unless the
parties execute a Project Agreement. As discussed below, staff does not recommend the City
execute a Project Agreement. Accordingly, Staff is recommending payment of the EFWP
invoice (Attachment 1) because it accurately represents the amount of reimbursement due for
EPCOR’s work (100%) based upon the formula in the termination for convenience clause.
Continuation of Project
Staff recommends continuing to move forward with the project as the original value
proposition was to determine whether it was more beneficial to upgrade the existing Tryon
Creek Wastewater Treatment Plant or build a new facility. The life-cycle cost estimate to
upgrade the existing 1964 Tryon Creek Wastewater Treatment Plant is between $800 million
and $1 billion, and the cost estimate to design (both cost for work done to date and expected
to finish design), build, operate, and maintain a new plant with public financing is between
Page 3
503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY
$592 and $622 million. In addition, there are a number of benefits to building a new facility as
shown below.
Visual 1: Project Benefits to Building a New Plant through a Public-Private Partnership
(For more in-depth information, see http://www.lakeoswegowastewaterfacility.org/)
Explore Competitive Procurement Methods, e.g., Alternative Contracting Methods, Special
Procurement
Staff recommends exploring a competitive procurement method (inclusive of alternative
contracting methods and special procurements) for the next phase of finalizing design and
constructing the new facility in lieu of proceeding with EFWP. There are two main reasons for
considering a new delivery approach:
1. Financial Considerations: The proposed cost of private financing by EFWP would impose
significant burdens on ratepayers. Public financing is more cost-effective and provides a
better long-term value to the community. Lake Oswego prioritizes being good stewards
of taxpayer and ratepayer dollars. The decision to use public financing and leverage the
EPA Water Infrastructure Finance and Innovation Act (WIFIA) loan is a favorable long-
term financial option, potentially saving millions of dollars for Lake Oswego ratepayers
and, as a major customer, Portland ratepayers.
2. Increased Competition: A request for proposals to the engineering, construction, and
wastewater operations industries would result in market-driven, competitive pricing.
This approach is expected to reduce costs compared to the initial private financing
DBFOM proposal. This method also will increase confidence that Lake Oswego received
the best price possible as it will be reflective of current market conditions.
Accomplishments and Products from Phase 1
Several achievements and products resulting from phase 1 can be applied to phase 2. These
include:
• Detailed facility design, environmental studies, and geotechnical reports.
• Cost estimates and financial structuring.
Page 4
503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY
• WIFIA loan approval.
• Preliminary draft of Oregon DEQ discharge permit.
• Intergovernmental Agreement (IGA) between Portland and Lake Oswego.
• Public engagement and input.
• Progress in property acquisition.
EFWP Project Financing and Costs
The below table shows how the costs have evolved from the start of the project until now.
Note: The original proposal estimate was based on other projects within the market conditions
of 2019 and 2020.
The estimated cost for phase 2 under the DBFOM with EFWP was $704 million in November.
Detailed information is available in Attachment 2, “Final Project Submittal Design-Build-
Finance-Operate-Maintain (P3) New Wastewater Treatment Facility for the City of Lake
Oswego.” Attachment 2 includes detailed information regarding the deliverables and EFWP’s
cost estimates for the next phase.
The EFWP costs for $704 million are summarized as follows:
• Design-Build the New Plant: $189 million
• Misc. Construction Items: $2.8 million
• Operations & Maintenance for 30-years: $191.9 million
• Cost for Private Financing net of Equity Contribution of $37.8 million: $138.8 million
• Cost for Public Financing of $151.2 million (including WIFIA): $98 million
• Land Acquisition & Demolition/Remediation of the Existing Plant: $53 million
Cost Evolution for the Wastewater Treatment Facility Project
Feb. 2021 Dec. 2022
Nov. 2023
Attachment
2
Dec. 2023 Dec.
2023
Staff’s
Estimated
Procurement
Option
Original
Proposal
EPCOR's
Proposal at
60% Design
EPCOR's
Proposal at
90% Design
City's Proposal
(Rejected by
EPCOR)
EPCOR’s
Final
Offer
Design-Build-
Operate-
Maintain w/
90% Designs
Design, Build, Finance,
Operate and Maintain a
New Plant for 30-Years
$485
Million
$724
Million
$651
Million
$561
Million
$621
Million
$539-$569
Million
Land Acquisition &
Demo/Remediate the
Existing Plant w/financing
$53
Million
$53
Million
$53
Million
$53
Million
$53
Million
$53
Million
Total Project Cost $538
Million
$777
Million
$704
Million
$614
Million
$674
Million
$592-$622
Million
Page 5
503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY
• Design Costs: $10.8 million
• Consultant Costs: $4 million ($3.1 million spent so far)
• City Insurance (30-years): $15.7 million
Total: $704 million
In further discussions with EFWP, staff received indications that private financing cost could be
lowered from $138.8 million to $100.4 million based on a contribution of $15.3 million of
EPCOR funds instead of the original $37.8 million investment. This may have reduced the
overall project cost down by about $30 million to a project total of about $674 million.
Next Steps and Schedule
Staff recommends that the project continue to move forward with building a new facility,
instead of Portland upgrading the existing Tryon Creek plant (with the attendant costs to Lake
Oswego ratepayers, as Lake Oswego is the major customer). The next phase involves exploring
a competitive procurement, such as a DBOM delivery method. This will extend the
procurement timeline, and adjustments to the current design are likely. The City would
conduct a thorough market outreach to identify potential DBOM entities (firms and teams) that
would consider proposing on the project, with the ultimate solicitation methods including
publication and direct outreach.
Estimated DBOM Costs
Staff believes that public financing will reduce costs to be between $592 and $622 million.
Additionally, using a competitive procurement process will help the City get the most
competitive construction and operations costs, factoring in performance reliability. A detailed
cost estimate will be known after competitive submissions are received. The project team
believes that the DBOM cost will remain within the planned Lake Oswego rate structure of 3.9%
increase per year.
Property Acquisition
The acquisition of properties at 99, 101, and 113 Foothills Road is ongoing, unaffected by the
change in project financing. The selected site was chosen based on its size, safety from flooding,
and proximity to existing infrastructure.
Relationship with EPCOR
EPCOR responded respectfully to Lake Oswego's decision not to proceed with them for phase 2.
While disappointed, EPCOR understood the city's fiscal responsibility and wished Lake Oswego
success in its chosen path.
Lake Oswego staff would like to acknowledge EPCOR for their work in planning and designing
the facility, providing a solid foundation for the upcoming phases.
Page 6
503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY
FISCAL IMPACT
On May 4, 2021, the Council authorized the PSA. The preliminary services were performed and
EFWP has advanced $7,171,092.12 to get to 60% design. The City now needs to reimburse
EFWP for this amount (Attachment 1) so as to purchase the designs and deliverables. The City
will need to make this approximately $7.2 million payment out of the Sewer Fund, which was
not anticipated to be paid out of fund balance as this amount was originally envisioned to be
covered under a bond issuance. However, there are funds available to make this payment. This
payment will put pressure on the fund and may necessitate issuing a full faith & credit bond in
the near future to pay for upcoming project costs.
For all costs, Portland is responsible for 31% and Lake Oswego is accountable for 69%.
All Payments since Project Start
Category Cost
EFWP: 0 to 60% Design* $7,171,000*
EFWP: 60 to 90% Design $3,669,000
Consultant Spending $3,105,000
Property Acquisition and Relocation $1,473,000
WIFIA Application Fee $284,000
Total $15,702,000
*EFWP to be reimbursed upon Council’s approval.
All of these costs resulted in deliverables that can be leveraged and reused in the final design
and construction phase.
The consultant spending table (Attachment 3) shows that about $3.1 million has been
expended so far in the project, and there is a remaining $808,000 left on the contracts as a
whole. Depending on the ultimate timeline and strategy the City chooses, the existing contract
limits should be sufficient to get us most of the way to ground breaking.; however, depending
on the timeline and strategy, there may be more money needed.
ATTACHMENTS
1. EPCOR’s Invoice for Reimbursement
2. Final Project Submittal by EPCOR Foothills Water Partners
3. Consultant Spending Table
INVOICE Services, Inc.
The City of Lake Oswego
Attn: Anthony Hooper, Deputy City Manager
PO Box 369, 380 A Avenue
Lake Oswego, OR 97034
EPCOR Services, Inc.
Invoice
Date Reference Due Date Amount----------------- ------------------- -------------------------------------------------
1/18/2024 146000000893 2/17/2024 7,171,092.12
7,171,092.12
-
7,171,092.12
EPCOR Services, Inc.
INVOICE
Payment Due Net 30
Invoice Number: 146000000893
Invoice Date 1/18/2024
Invoice Amount 7,171,092.12
Total Amount Due 7,171,092.12
Remit ACH to:Account Name EPCOR FOOTHILLS WATER
Account Number 4451668958 Amount Paid
Routing Number 111000012
Bank Address Bank of America
1401 Elm Street 2nd Floor
Dallas, TX 75202
Please include invoice number and name with payment. Once payment is made, please email GeneralAccountingeusa@Epcor.com with
payment amount transferred and invoice number
2355 W. Pinnacle Peak Road, Suite 300
Phoenix, Arizona 85027-1261
Remark-----------------------------------------------------------
Preliminary Services Agreement - Tasks 1 - 4
Current Balance Due:
Previous Balance:
TOTAL AMOUNT DUE:
Attachment 1
Attn: Anthony Hooper
City of Lake Oswego, PO Box 369
Lake Owsego, OR 97034
Task Description
Contract
Amount
(USD)
Amount Billed
to Date
(USD)
Amount Billed
this Period
(USD)
Task 1 - Initial Development and BODR Submittal Package $2,692,818.00 $2,692,818.00 $2,692,818.00
Task 2 - 30% Submittal Package $2,055,670.00 $2,055,670.00 $2,055,670.00
Task 3 - 60% Submittal Package $2,033,235.00 $2,033,235.00 $2,033,235.00
Task 4 - Definitive Project Submittal $193,502.00 $193,502.00 $193,502.00
Change Order #1 - Contaminated Soils $7,390.64 $7,390.64 $7,390.64
Change Order #2 - Phase 2 ESA $90,717.75 $90,717.75 $90,717.75
Change Order #3 - Biological Assessment $44,424.50 $44,424.50 $44,424.50
Change Order #4 - Archeological Assessment $38,341.22 $38,341.22 $38,341.22
Change Order #5 - Envision Assessment $14,993.01 $14,993.01 $14,993.01
INVOICE TOTAL $7,171,092.12 $7,171,092.12 $7,171,092.12
Payment Period: May 2021 to November 2022
City of Lake Oswego Wastewater Treatment Facility P3 Preliminary Services
Preliminary Services Agreement
Tasks 1-4
Invoice #8 - Schedule of Values
November 7, 2023
SUBMITTED TO:
Anthony Hooper, Deputy City Manager
& Public Works Director
PO Box 369 | 380 A Avenue
Lake Oswego, OR 97034
ahopper@ci.oswego.or.us
SUBMITTED BY:
EPCOR Foothills Water Project LLC
2355 W. Pinnacle Peak Road, Suite 300
Phoenix, AZ 85027
Ryan Litwinow, Director, Project and
Technical Services
(780) 412-7893
rlitwinow@epcor.com
EPCOR FOOTHILLS WATER PARTNERS
Final project submittal
DESIGN-BUILD-FINANCE-OPERATE-MAINTAIN (P3)
NEW WASTEWATER TREATMENT FACILITY FOR THE
CITY OF LAKE OSWEGO
ATTACHMENT 2
EPCOR FOOTHILLS WATER PARTNERS | LAKE OSWEGO WASTEWATER TREATEMENT FACLITIY P3 | FINAL PROJECT SUBMITTAL
COVER LETTER AND SUBMITTAL REFERENCE TABLE
November 7, 2023
City of Lake Oswego
P.O Box 369
Lake Oswego, OR 97034
Attention: Anthony Hooper, Deputy City Manager & Public Works Director
Re: Final Project Submittal for the Lake Oswego Water Treatment Plant Preliminary Services Agreement –
Amendment #1
EPCOR Foothills Water Project LLC (“EFWP”) is very pleased to submit its Preliminary Services Agreement
(“PSA”) Final Project Submittal (“Task 5”) for the Lake Oswego P3 Wastewater Treatment Facility. For the City’s
consideration, the response includes the following, as outlined in the PSA Task 5 requirements:
90% Design Submittal
Cost Submittal
Commercial Submittal
Technical Submittal
Additional Information Submittal
Final Price Submittal
Our response is focused on outlining updates made from the 60% submission deliverables and illustrates the
plan for achieving the most efficient technical and financial solution in response to the requirements defined
by the City.
It has been a great honor to work with the City, its advisors, and the City of Portland during the PSA period,
and EFWP looks forward to comments on this submission. Please contact us should you have any questions
about our submission.
Sincerely,
Ryan Litwinow, Director, Project & Technical Services, Commercial Services
EPCOR Foothills Water Project LLC
2355 West Pinnacle Peak Road, Suite 300
Phoenix, AZ 85027 USA
epcor.com
EPCOR FOOTHILLS WATER PARTNERS | LAKE OSWEGO WASTEWATER TREATEMENT FACLITIY P3 | FINAL PROJECT SUBMITTAL
COVER LETTER AND SUBMITTAL REFERENCE TABLE
Submittal Reference Table
PSA
Reference Item Description Task 5 Submission Package
Section Reference
90% Design Submittal
5.1 (a) Cover Sheets (90% complete) 90% Design Submittal
2.1.1
5.1 (b) General Drawings 90% Design Submittal
2.1.2
5.1 (c) Civil Drawings 90% Design Submittal
2.1.3
5.1 (d) Structural Drawings 90% Design Submittal
2.1.4
5.1 (e) Architectural Drawings 90% Design Submittal
2.1.5
5.1 (f) Mechanical Drawings 90% Design Submittal
2.1.6
5.1 (g) Plumbing, HVAC and Fire Protection Drawings 90% Design Submittal
2.1.7
5.1 (h) Electrical Drawings 90% Design Submittal
2.1.8
5.1 (i) Instrumentation 90% Design Submittal
2.1.9
5.1 (j) Security Drawings 90% Design Submittal
2.1.10
5.1 (k) 90% design specifications 90% Design Submittal
2.1.11
5.1 (l) 60% electrical site plan 90% Design Submittal
2.1.12
5.1.2 (a) Project Permitting Plan 90% Design Submittal
2.2.2
5.1.2 (a) Biological Assessment 90% Design Submittal
2.3
5.1.2 (b) Archeological Assessment 90% Design Submittal
2.3
5.1.2 (c) Solar Study 90% Design Submittal
2.3
5.1.2 (d) Additional survey at the river and bathymetry for the HRLO 90% Design Submittal
2.3
5.1.2 (e) Phase 1 ESA 90% Design Submittal
2.3
5.1.3 (a) Land Use Application 90% Design Submittal
2.4
5.1.3 (b) NPDES Permit 90% Design Submittal
2.4
5.1.3 (c) USACE/DSL/DEQ Joint permit application 90% Design Submittal
2.4
5.1.3 (d) CLOMR-F application to FEMA 90% Design Submittal
2.4
5.1.3 (e) Demolition Permit 90% Design Submittal
2.4
5.1.3 (f) Building Permit 90% Design Submittal
EPCOR FOOTHILLS WATER PARTNERS | LAKE OSWEGO WASTEWATER TREATEMENT FACLITIY P3 | FINAL PROJECT SUBMITTAL
COVER LETTER AND SUBMITTAL REFERENCE TABLE
2.4
Cost Submittal
5.1.4 (a)
An updated Design-Build Work cost, which shall be accompanied by
appropriate open-book pricing, with supporting documentation to include
updated quantities, and subcontractor/supplier quotes that are greater than
0.5% of the Project direct costs
Cost Submittal
3.1
5.1.4 (b) An updated compensation schedule specifying the proposed Capital Charge
(for each Contract Year) and Operations Charge Components
Cost Submittal
3.2
5.1.4 (c)
An updated Operation Services cost, which shall be accompanied by
appropriate open-book pricing supporting documentation and include
updating quantities, subcontractor and supplier quotes
Cost Submittal
3.3
5.1.4 (d) If applicable and requested by the City, a list of any proposed allowance items,
alternate prices and unit prices
Cost Submittal
3.4
5.1.4 (e) A Financial Model Update using a Financial Model acceptable to the City Cost Submittal
3.5
Commercial Submittal
5.1.5 (a) Project Company will submit the Design-Build, Operations & Maintenance,
and Interface Agreement for the City’s information
Commercial Submittal
4.1
5.1.5 (b) A guaranteed Scheduled Acceptance Date Commercial Submittal
4.2
5.1.5 (c) A critical path schedule for completing the Design-Build Work by the
Scheduled Acceptance Date and an accompanying maximum drawdown
schedule
Commercial Submittal
4.3
Technical Submittal
5.1.6 (a) Technical Specifications to be incorporated into the Project Agreement; Technical Submittal
5.1
5.1.6 (b) Acceptance standards, acceptance test procedures, to be incorporated into
the Project Agreement;
Technical Submittal
5.2
5.1.6 (c) The final and complete list of required Governmental Approvals (recognizing
that the Project Company will be required to acquire all Governmental
Approvals) for the Project (including Governmental Approval application
submittal dates and assumed Governmental Approval issuance dates to be
incorporated into the Project Agreement
Technical Submittal
5.3
5.1.6 (d) A description of any Change in Law that has occurred between the Agreement
Date and the date of the submittal of the Task 5 Technical Deliverable Material
Technical Submittal
5.4
5.1.6 (e) An updated and finalized description of the Project Site Technical Submittal
5.5
5.1.6 (f) The O&M Plan including the major maintenance, repair and replacement
schedule
Technical Submittal
5.6
5.1.6 (g) Performance guarantees for the Project’s operation and maintenance term Technical Submittal
5.7
Additional Information Submittal
5.1.7 (a) The names of proposed Subcontractors and descriptions of their roles for
approval by the City
Additional Information
Submittal
6.1
5.1.7 (b) A letter from a qualified surety confirming the intent of the surety to provide
the payment bond and performance bond required under the draft Project
Agreement
Additional Information
Submittal
6.2
5.1.7 (c) A final equity, inclusion and diversity subcontracting plan, meeting the
requirements of Task 3.5
Additional Information
Submittal
6.3
5.1.7 (d) A listing of any assumptions, clarifications or qualifications made by the
Project Company in providing its Definitive Project Submittal that are material
to any part thereof, including a statement as to what information supplied by
Additional Information
Submittal
6.4
EPCOR FOOTHILLS WATER PARTNERS | LAKE OSWEGO WASTEWATER TREATEMENT FACLITIY P3 | FINAL PROJECT SUBMITTAL
COVER LETTER AND SUBMITTAL REFERENCE TABLE
the City (if any) the Project Company proposes to use as the basis of any
portion of its Definitive Project Submittal
5.1.7 (e) Any other information reasonably requested by the City prior to the due date
for the Definitive Project Submittal as necessary or appropriate to negotiate
and complete the Project Agreement
Additional Information
Submittal
6.5
Final Price Submittal
5.1.9 (a)
A proposed Capital Charge Component, expressed on an annual basis, with a
detailed and comprehensive description of how the proposed Capital Charge
Component was derived and the material factors on which it was based
(financing costs);
Final Price Submittal
7.1
5.1.9 (c)
A proposed Design-Build Price on a fixed lump sum price basis, which shall be
accompanied by appropriate open-book pricing supporting documentation
based on quantities, subcontractor and supplier quotes obtained and
substantiation of all non-bid work as developed pursuant to this Task 5;
Final Price Submittal
7.2
5.1.9 (d)
A proposed Operations Charge Component, with a detailed and
comprehensive description of how the proposed Operations Charge
Component was derived and the open-book pricing and the material factors
on which it was based
Final Price Submittal
7.3
5.1.9 (e) A proposal on how the Operations Charge will be escalated annually Final Price Submittal
7.4
5.1.9 (f) Identification of an annual repair and replacement program and allowances Final Price Submittal
7.5
5.1.9 (g) An annual guaranteed maximum energy utilization Final Price Submittal
7.6
5.1.9 (h) An annual guaranteed maximum on any other amounts that the City has
agreed in its discretion to treat as a pass-through
Final Price Submittal
7.7
5.1.9 (i) Proposed Return-on-Equity schedules Final Price Submittal
7.8
5.1.9 (j)
An annual Service Fee that supports the annual Service Fee calculation and
reflects the proposed “Design-Build Subcontractor Fee”, “Operations
Subcontractor Fee” and “Return-on-Equity” set forth in the Project
Company’s Proposal, as well as the Preliminary Services Fee
Final Price Submittal
7.9
5.1.4 (k)
All costs, bids, quotes, estimates, substantiation and other information
supporting the Task 5 Technical Deliverable Material shall be made available
to the City
Final Price Submittal
7.10
5.1.11
Equity Financing Plan Final Price Submittal
7.11
5.1.12 Term Sheets Final Price Submittal
7.12
5.1.13 Support Letters
Final Price Submittal
7.13
5.1.14 Taxes Final Price Submittal
7.14
EPCOR FOOTHILLS WATER PARTNERS | LAKE OSWEGO WASTEWATER TREATEMENT FACLITIY P3 | FINAL PROJECT SUBMITTAL
TABLE OF CONTENTS
Table of Contents
1 Introduction and Background ............................................................................................................ 1
1.1 Project Background................................................................................................................................ 1
1.2 EFWP Preliminary Services Process and Deliverables ........................................................................... 1
2 90% Design Submittal ....................................................................................................................... 3
2.1 Design Package ...................................................................................................................................... 3
2.1.1 Cover Sheets .................................................................................................................................... 3
2.1.2 General Drawings ............................................................................................................................. 3
2.1.3 Civil Drawings ................................................................................................................................... 4
2.1.4 Structural Drawings .......................................................................................................................... 4
2.1.5 Architectural Drawings..................................................................................................................... 4
2.1.6 Mechanical Drawings ....................................................................................................................... 4
2.1.7 Plumbing, HVAC and Fire Protection Drawings ............................................................................... 4
2.1.8 Electrical Drawings ........................................................................................................................... 5
2.1.9 Instrumentation ............................................................................................................................... 5
2.1.10 Security Drawings ........................................................................................................................ 5
2.1.11 90% Design Specifications............................................................................................................ 5
2.1.12 60% Electrical Site Plan ................................................................................................................ 5
2.2 Additional Requirements ....................................................................................................................... 6
2.2.1 Electronic Copy of 90% Technical Deliverable Material................................................................... 6
2.2.2 Updated Project Permitting Plan ..................................................................................................... 6
2.2.3 Additional Preliminary Services ....................................................................................................... 7
2.3 Site Investigations .................................................................................................................................. 7
2.4 Permitting Applications ......................................................................................................................... 7
3 Cost Submittal .................................................................................................................................. 9
3.1 Updated Design-Build Work Cost .......................................................................................................... 9
3.1.1 Construction Cost ............................................................................................................................. 9
3.1.2 EPCOR Project Management and O&M Mobilization .................................................................... 16
3.1.3 Construction Period EPCOR Insurance ........................................................................................... 16
3.1.4 Independent Wastewater Expert ................................................................................................... 17
3.2 Updated Compensation Schedule ....................................................................................................... 17
3.3 Updated Operation Services Cost ........................................................................................................ 19
3.3.1 Operations and Maintenance ........................................................................................................ 19
3.3.2 Repair and Replacement ................................................................................................................ 20
EPCOR FOOTHILLS WATER PARTNERS | LAKE OSWEGO WASTEWATER TREATEMENT FACLITIY P3 | FINAL PROJECT SUBMITTAL
TABLE OF CONTENTS
3.3.3 Electricity Passthrough ................................................................................................................... 20
3.3.4 Natural Gas Passthrough................................................................................................................ 20
3.3.5 Residuals Transportation ............................................................................................................... 20
3.4 List of Any Proposed Allowance Items................................................................................................. 21
3.5 Financial Model Update ....................................................................................................................... 22
4 Commercial Submittal .................................................................................................................... 23
4.1 Design-Build, Operations & Maintenance, and Interface Agreement ................................................. 23
4.2 Guaranteed Scheduled Acceptance Date ............................................................................................ 23
4.3 Critical Path Schedule .......................................................................................................................... 24
5 Technical Submittal ........................................................................................................................ 25
5.1 Technical Specifications ....................................................................................................................... 25
5.2 Acceptance Standards and Test Procedures ....................................................................................... 25
5.3 Required Government Approvals ........................................................................................................ 25
5.4 Changes in Law .................................................................................................................................... 27
5.5 Finalized Project Site Description ........................................................................................................ 27
5.6 O&M Plan............................................................................................................................................. 28
5.7 Performance Guarantees..................................................................................................................... 28
6 Additional Information Submittal .................................................................................................... 29
6.1 Proposed Subcontractors .................................................................................................................... 29
6.2 Surety ................................................................................................................................................... 29
6.3 Equity, Inclusion, and Diversity Subcontracting Plan .......................................................................... 29
6.4 Assumptions and Clarifications............................................................................................................ 29
6.5 Other Information ............................................................................................................................... 30
7 Final Price Submittal ....................................................................................................................... 31
7.1 Proposed Capital Charge ..................................................................................................................... 31
7.2 Proposed Design-Build Price ................................................................................................................ 31
7.3 Proposed Operations Charge Component ........................................................................................... 31
7.4 Proposed Operations Charge Escalation ............................................................................................. 32
7.5 Annual Repair and Replacement Program Allowances ....................................................................... 33
7.6 Guaranteed Maximum Energy Utilization ........................................................................................... 34
7.7 Residuals Transportation Unit Pricing ................................................................................................. 34
7.8 Proposed Return-on-Equity Schedules ................................................................................................ 34
7.9 Annual Service Fee and Preliminary Services Fee ............................................................................... 34
7.10 All Other Supporting Information .................................................................................................. 35
7.11 Equity Financing Plan ..................................................................................................................... 35
7.11.1 Sources of Equity ....................................................................................................................... 38
EPCOR FOOTHILLS WATER PARTNERS | LAKE OSWEGO WASTEWATER TREATEMENT FACLITIY P3 | FINAL PROJECT SUBMITTAL
TABLE OF CONTENTS
7.11.2 Investor Credit Status ................................................................................................................ 38
7.11.3 Availability of Equity .................................................................................................................. 38
7.11.4 Equity Guarantee ....................................................................................................................... 38
7.11.5 External Sources of Equity ......................................................................................................... 39
7.11.6 Project Company Support .......................................................................................................... 39
7.12 Term Sheet ..................................................................................................................................... 39
7.13 Support Letters .............................................................................................................................. 41
7.14 Taxes .............................................................................................................................................. 41
7.15 Financial Model Requirements ...................................................................................................... 42
EPCOR FOOTHILLS WATER PARTNERS | LAKE OSWEGO WASTEWATER TREATEMENT FACLITIY P3 | FINAL PROJECT SUBMITTAL
1. INTRODUCTION AND BACKGROUND
1 | P a g e
1 Introduction and Background
1.1 Project Background
The Cities of Lake Oswego and Portland are seeking a new and more efficient wastewater treatment facility to
replace wastewater treatment service provided by the existing Tryon Creek Wastewater Treatment Plant
(“TCWTP”), located in the City of Lake Oswego (“City”). The existing TCWTP, owned by the City of Portland and
located at the confluence of Tryon Creek and the Willamette River, was constructed in 1964, expanded in 1976,
and treats sewage collected from parts of southwest Portland, unincorporated areas of Multnomah and
Clackamas Counties, and the City.
As an alternative to upgrading the existing facility, the Cities are investigating the replacement of the existing
plant with a new wastewater treatment facility (“WWTF”) that would treat current and projected flows and
comply with all environmental and permit requirements on a reduced footprint.
EPCOR Foothills Water Partners (“EFWP”) was selected to provide a definitive project submittal that includes
the design, construction, equity financing, and long-term operation, maintenance, repair, replacement and
management of a new wastewater treatment facility that will be owned by the City of Lake Oswego.
1.2 EFWP Preliminary Services Process and Deliverables
In May 2019, EFWP was shortlisted along with two other teams in pursuit of the Progressive P3 delivery of a
new wastewater treatment facility for the City of Lake Oswego, Oregon. In March 2021, EFWP was selected as
the preferred proponent, and the parties signed a Preliminary Services Agreement (“PSA”) in May 2021. As
part of the progressive P3 delivery model, the PSA allowed the project to progress to a 60% design and fixed
price submission, after which the City would make a decision whether to award the final design, construction,
financing and long-term operations of the project to EFWP. Between May 2021 and October 2022, EFWP
completed Task 1 (Initial Development and Basis of Design Report), Task 2 (30% Design), Task 3 (60% Design),
and Task 4 (Definitive Project Submittal – submitted in draft form). At the time of the Definitive Project
Submittal (October 2022), it was anticipated that EFWP would be providing financing for the entire project,
through equity, Water Infrastructure Finance and Innovation Act (“WIFIA”) loan, and privately-financed debt.
This was at a time of rising commodity prices, supply chain issues, inflationary pressures and increasing interest
rates.
In early 2023, it was agreed-to between the City and EFWP to amend the PSA to advance the project to a 90%
design level and delay the Go/No-Go decision on the project by one year, anticipating that market uncertainties
and interest rates would improve over that time. Additionally at this time, the City agreed to transfer the WIFIA
loan (49% of design-build costs) from EFWP to the City as well as replacing EFWP’s private placement debt
(31% of design-build costs) with public financing through the City in order to realize savings from the lower
rates of municipal bonds. PSA Amendment #1 was executed on April 10, 2023.
Highlights during Task 5 included:
Preparation of 90% designs and specifications
Aqua Aerobic 90% design completed
Prepared updates to 3D model
Preparation of materials for the Sustainability Advisory Board
Prepared pre-application package for the Land Use Application
Participated in the Neighborhood Meeting on June 22, 2023
Submitted Land Use Approval application
EPCOR FOOTHILLS WATER PARTNERS | LAKE OSWEGO WASTEWATER TREATEMENT FACLITIY P3 | FINAL PROJECT SUBMITTAL
1. INTRODUCTION AND BACKGROUND
2 | P a g e
ESA Phase I Refresh
Archeological Permit received and completed associated investigation work
Completion of Hazardous Material Building Survey at all 3 properties
Completed Solar Study and Recommendations
Information provided to DEQ to support NPDES permit transfer
Project Agreement redlines to reflect updated financing arrangement
Coordination with Portland General Electric to confirm design details
Inclusion of additional scope items including Lake Oswego Sewer Upgrade, Reclaimed Water Project,
Solar Panels
Meeting with Oregon Energy Trust
Update to Operations and Maintenance plans
Update to Commissioning Plan and Interface Protocol Plan
Update to Permitting Plan
Update to Equity, Inclusion and Diversity Plan
Update to Project Quality Plan
EFWP has solicited updated quotes from major equipment vendors. The entire open book estimate has been
revised with the most up to date capital costs for the City’s consideration. At the same time, EFWP has updated
and confirmed pricing in regards to Operations and Maintenance and Repair and Replacement costs. The
market is still experiencing inflationary pressures and wage escalations, although there is less uncertainty than
in October 2022. EFWP has worked collaboratively internally as well as with both the City as well as the City of
Portland to provide the most cost-effective solution for the WWTF, while still ensuring optimum safety,
reliability, redundancy and sustainability measures are in place.
EFWP, with this Final Project Submittal is providing a commercial offer for the City’s consideration to award to
EFWP the completed design, construction and long term operations of the project. This Final Project Submittal
includes all the requirements set out in the PSA Amendment #1 and includes a 90% Design Submittal, Cost
Submittal, Commercial Submittal, Technical Submittal, Additional Information Submittal, and Final Price
Submittal.
EPCOR FOOTHILLS WATER PARTNERS | LAKE OSWEGO WASTEWATER TREATEMENT FACLITIY P3 | FINAL PROJECT SUBMITTAL
2. 90% DESIGN SUBMITTAL
3 | P a g e
2 90% Design Submittal
2.1 Design Package
2.1.1 Cover Sheets
5.1 The following 90% design drawings shall be developed to the approximate levels of completion as indicated:
(a) Cover Sheets (90% complete);
Refer to 90% Design Submittal – Attachments – 2.1 Design Package (LOWWTF DWGs 90pct R2 2023 1107_Part
1.pdf) Page 1 for the Cover Sheet.
2.1.2 General Drawings
5.1 (b) General Drawings:
1. List of Drawings (100% complete);
2. Site plan (100% complete);
3. Drawing symbols, numbering & tagging conventions, symbols, and abbreviations (100% complete );
4. Hydraulic profiles (100% complete);
5. Design criteria (100% complete);
6. Process flow diagrams (100% complete);
7. Pipe material schedule (100% complete);
8. Equipment schedule (100% complete);
9. Valve and gate schedules (90% complete); and
10. Boundary survey (100% complete).
Refer to 90% Design Submittal – Attachments – 2.1 Design Package (LOWWTF DWGs 90pct R2 2023 1107_Part
1.pdf) for the General Drawings:
Pages 2-4 for the List of Drawings
Page 18 for the Site Plan
Pages 6-7 for the Drawing symbols, numbering & tagging conventions, symbols and abbreviations
Page 9 for the hydraulic profiles
Pages 10-11 for the Design criteria
Page 8 for the Process flow diagrams
Page 18 for the Boundary survey
Refer to 90% Design Submittal – Attachments – 2.1 Design Package (LOWWTF DWGs 90pct R2 2023 1107_Part
2.pdf) for the General Drawings:
Pages 6-10 for the Valve and gate schedules
Pages 6-10 for the Equipment schedule
Page 11 for the Pipe material schedule
EPCOR FOOTHILLS WATER PARTNERS | LAKE OSWEGO WASTEWATER TREATEMENT FACLITIY P3 | FINAL PROJECT SUBMITTAL
2. 90% DESIGN SUBMITTAL
4 | P a g e
2.1.3 Civil Drawings
5.1 (c) Civil Drawings:
1. General notes (90% complete);
2. Details (90% complete); and
3. Yard piping, paving, grading, and stormwater drawings (90% complete).
Refer to 90% Design Submittal – Attachments – 2.1 Design Package (LOWWTF DWGs 90pct R2 2023 1107_Part
1.pdf) for the Civil Drawings on Pages 17-84 which includes including General notes, Details and Yard piping,
paving, grading, and stormwater drawings.
2.1.4 Structural Drawings
(d) Structural Drawings: General notes, plans and sections (90% complete);
Refer to 90% Design Submittal – Attachments – 2.1 Design Package (LOWWTF DWGs 90pct R2 2023 1107_Part
1.pdf) for the Structural Drawings on Pages 172-270 including General notes, plans and sections
2.1.5 Architectural Drawings
5.1 (e) Architectural Drawings:
1. General notes (90% complete);
2. Schedules (90% complete);
3. Code review drawings (90% complete);
4. Floor plans (100% complete);
5. Roof plans (90% complete);
6. Elevations (90% complete);
7. Reflected ceiling plans (90% complete);
8. Sections (90% complete); and
9. Details (90% complete).
Refer to 90% Design Submittal – Attachments – 2.1 Design Package (LOWWTF DWGs 90pct R2 2023 1107_Part
1.pdf) Pages 100-171 for the Architectural Drawings including General notes, Schedules, Code review drawings,
Floor plans, Roof plans, Elevations, Reflected ceiling plans, Sections and Details.
2.1.6 Mechanical Drawings
5.1 (f) Mechanical Drawings: Plans, sections, and details (90% complete);
Refer to 90% Design Submittal – Attachments – 2.1 Design Package (LOWWTF DWGs 90pct R2 2023 1107_Part
2.pdf) for the Mechanical Drawings on Pages 2-20 which includes Plans, sections and details
2.1.7 Plumbing, HVAC and Fire Protection Drawings
5.1 (g) Plumbing, HVAC and Fire Protection Drawings: Schedules (90% complete); Plumbing isometric drawings (90%
complete); and Plans & details (90% complete);
Refer to 90% Design Submittal – Attachments – 2.1 Design Package (LOWWTF DWGs 90pct R2 2023 1107_Part
2.pdf) Pages 98-141 for the Plumbing, HVAC and Fire Protection Drawings
EPCOR FOOTHILLS WATER PARTNERS | LAKE OSWEGO WASTEWATER TREATEMENT FACLITIY P3 | FINAL PROJECT SUBMITTAL
2. 90% DESIGN SUBMITTAL
5 | P a g e
2.1.8 Electrical Drawings
5.1 (h) Electrical Drawings:
1. General notes, symbols, abbreviations (90% complete);
2. Main switchgear single line diagram (90% complete);
3. Load schedules (90% complete);
4. Panel schedules (90% complete);
5. Single line diagrams (90% complete);
6. Electrical distribution site plan (90% complete);
7. Project Facility electrical plans (90% complete);
8. Conduit plans (90% complete);
9. Grounding plans (90% complete); and
10. Lighting and receptacle plans (90% complete).
Refer to 90% Design Submittal – Attachments – 2.1 Design Package (LOWWTF DWGs 90pct R2 2023 1107_Part
2.pdf) on Pages 142-226 for the Electrical Drawings.
2.1.9 Instrumentation
5.1 (i) Instrumentation: Legends and symbols (100% complete); Control system block diagrams/network architecture
(90% complete); and Process and instrumentation diagrams (P&IDs) (90% complete);
Refer to 90% Design Submittal – Attachments – 2.1 Design Package (LOWWTF DWGs 90pct R2 2023 1107_Part
2.pdf) on Pages 227-284 for the Instrumentation Drawings including Legends and symbols, Control system
block diagrams/network architecture, and the Process and instrumentation diagrams.
2.1.10 Security Drawings
5.1 (j) Security Drawings: Project Site plan (90% complete); and Equipment schedules (90% complete); and
Refer to 90% Design Submittal – Attachments – 2.1 Design Package (LOWWTF DWGs 90pct R2 2023 1107_Part
2.pdf) Pages 232-239 for the Security Drawings.
2.1.11 90% Design Specifications
5.1 (k) The 90% design specifications shall be developed to the following approximate levels of completion:
1. Table of contents (100%);
2. Identification of City standard Specifications and Project Company;
3. Specifications intended for use;
4. Major Equipment Specifications (100% complete);
5. Concrete Specifications (90% complete);
6. Piping and valve Specifications (90% complete);
7. Control narratives (90% complete); and
8. Balance of Specifications (90% complete).
Refer to 90% Design Submittal – Attachments – 2.1 Design Package (LOWWTF Specifications 90pct Rev2.pdf)
for the 90% Design Specifications.
2.1.12 60% Electrical Site Plan
5.1 (l) Provide 60% electrical site plan illustrating utility feed strategy based on coordination with DEQ within 3
months after Task 5 notice to proceed.
Refer to 90% Design Submittal – Attachments – 2.1 Design Package (LOWWTF DWGs 90pct R2 2023 1107_Part
2.pdf) Page 145 for the electrical site plan.
EPCOR FOOTHILLS WATER PARTNERS | LAKE OSWEGO WASTEWATER TREATEMENT FACLITIY P3 | FINAL PROJECT SUBMITTAL
2. 90% DESIGN SUBMITTAL
6 | P a g e
2.2 Additional Requirements
2.2.1 Electronic Copy of 90% Technical Deliverable Material
5.1.1 (a)The Project Company shall provide to the City an electronic copy of the 90% Technical Deliverable Material
in both its native file format (i.e., MS Word; MS Excel; AutoCADD; MicroStation, etc.) as well as Adobe PDF format.
(b) Technical Deliverable Material documents will be developed by Project Company in 3D and associated 2D format.
The 3D model(s) and associated 2D drawings will be prepared in accordance with Project Company's CAD Standards
Manual. A complete set of 2D drawings will be developed from the 3D model(s). The 2D drawings will contain, as a
minimum, the following information:
(i) Building architectural and structural plans, elevations, cross-sections and other related sections and
details, as appropriate to adequately describe the work;
(ii) Plan views, cross-sections and other related sections, and details of mechanical equipment;
(iii) Mechanical, electrical and I&C drawings that accurately depict required building systems; and
(iv) Wiring diagrams and logic descriptions related to programmable logic controllers (PLCs) an d any remote
input/output (RIO) racks proposed to be installed.
EFWP has provided all 90% Technical Deliverable Material electronically in its native file format.
The Technical Deliverable Material documents have been developed in 3D and the 2D drawings have been
provided in 90% Design Submittal – Attachments – 2.1 Design Package as outlined in Section 2.1.
(c) Project Company, City, and City's advisors will participate in up to five (5) 2 -hour design collaboration meetings
held in person at the City offices or via conference call.
Through the progression of the 90% period, EFWP, the City and the City’s advisors have participated in many
design collaboration meetings, including but not limited to:
Alternative scope items (May 23)
Electrical feed discussion (May 23)
Stormwater detention basin and Tryon Creek Pump Station requirements (July 10)
Filter Influent and Effluent Channels / CFS & IPS Modeling (July 10)
NFPA Classification and Screen Headloss Requirements (July 13)
Thickened Sludge Holding Tank Mixing Approach (July 13)
Bathymetry Survey and Archeological Work & Permitting (July 17)
90% Technical Deliverable Material Overview (August 11)
Facility Artwork (August 18)
Tryon Creek Pump Station Coordination and Transition (September 6)
Portland Sewer Connection (September 15)
In-Person Technical Meeting (September 20)
Sludge Hauling Methodology (September 28)
Unit Price for Sludge Hauling (October 4)
Portland Sewer Tie-Ins (October 27)
Alkalinity Discussion (October 30)
2.2.2 Updated Project Permitting Plan
(d) Prepare an update to the project permitting plan that addresses comments on the latest version and considers
updated timing/project schedule.
The project permitting plan has been updated to reflect the latest construction schedule and known
information provided by permitting agencies. A clean and tracked changes version can be found in 90% Design
Submittal – Attachments – 2.2 Permitting Plan.
EPCOR FOOTHILLS WATER PARTNERS | LAKE OSWEGO WASTEWATER TREATEMENT FACLITIY P3 | FINAL PROJECT SUBMITTAL
2. 90% DESIGN SUBMITTAL
7 | P a g e
2.2.3 Additional Preliminary Services
(e) The need for any subsequent modifications or development of the final design beyond the 90% level will be
determined by the City. If the City directs the Project Company to advanc e the final design beyond the 90% level,
the Project Company shall be compensated for such advancement as an Additional Preliminary Service.
If agreed to by the City, it is proposed that EFWP continue the design modifications and necessary site
investigations to further develop the Portland sewer tie-in option proposed by the City and the City of Portland.
EFWP currently estimates the additional capital cost to incorporate this design change is $1.0M (Class-5
estimate).
It is also proposed that EFWP continue discussions with the City and its advisors in determining the level of
alkalinity addition necessary for successful operation of the WWTF. Currently, alkalinity addition has not been
included in either the Design-Build Price or Operations Charge. EFWP currently estimates the additional capital
cost to incorporate this design change is $1.8M (Class-5 estimate).
2.3 Site Investigations
5.1.2 The following Site Investigations will be completed as part of Task 5:
(a) Biological Assessment;
(b) Archeological Assessment;
(c) Solar Study;
(d) Additional survey at the river and bathymetry for the HRLO; and
(e) Phase 1 ESA (not necessarily needed but if not done again then new owner would most likely not qualify
for federal grant opportunities such as for clean-up assistance if something is found).
Refer to 90% Design Submittal – Attachments – 2.3 Site Investigations for the completed upland biological
assessment.
Refer to 90% Design Submittal – Attachments – 2.3 Site Investigations for a drawing outlining the
archeological assessment field results. The archeological assessment field work was completed in October 2023
and the final report is expected in November 2023. Note that additional archeological investigations will be
required to accommodate the revised design for the Portland Sewer Tie-ins.
Refer to 90% Design Submittal – Attachments – 2.3 Site Investigations for the completed solar study and
associated EFWP recommendations.
Refer to 90% Design Submittal – Attachments – 2.3 Site Investigations for the topographical and bathymetry
survey file for the high river level outfall (HRLO).
The Phase 1 ESA field work was completed on all three properties in October 2023 and the final reports are
expected in November 2023.
Refer to 90% Design Submittal – Attachments – 2.3 Site Investigations for the completed hazardous building
material survey reports completed for all three properties.
2.4 Permitting Applications
5.1.3 The following permit applications will be submitted at or before completion of the 90% design as agre ed
between Project Company and the City:
(a) Land Use Application;
(b) NPDES Permit;
(c) USACE/DSL/DEQ Joint permit application; and
(d) CLOMR-F application to FEMA (Necessary for WIFIA).
(e) Demolition Permit; and
(f) Building Permit.
EPCOR FOOTHILLS WATER PARTNERS | LAKE OSWEGO WASTEWATER TREATEMENT FACLITIY P3 | FINAL PROJECT SUBMITTAL
2. 90% DESIGN SUBMITTAL
8 | P a g e
The City will pay application and other fees charged by the permitting agency associated with the above permits.
Note that site access is required for the Hazardous Building Material Survey, which is an input into the Demolition
Permit (item e). This will be dependent on the land acquisition process by the City. Additionally, the Demolition
Permit is a pre-requisite to the Building Permit (item f).
Refer to 90% Design Submittal – Attachments – 2.4 Permit Applications for letter deeming the Land Use
Application complete. All other documents associated with the Land Use Approval process, including the Pre-
Application, Pre-Application Mailing, Pre-Application Meeting, Neighborhood Meeting and the Land Use
Approval application (including information re-submittal), can be found on SharePoint (Task 5 – 90% Design
5.2 Permitting).
It is currently assumed that a new National Pollutant Discharge Elimination System (“NPDES”) Permit is not
required for the WWTF, and therefore an application has not been made. The City and the City of Portland are
discussions with the Oregon Department of Environmental Quality to support the facilitation of a NPDES Permit
transfer from the TCWTP to the WWTF.
Refer to Table 5-2 in Section 5-3 for the anticipated permit application and approval dates for the
USACE/DSL/DEQ Joint Permit Application (JPA), anticipated for March 2024, after the City Council Go/No-Go
decision.
For the CLOMR-F application to FEMA, this application can only be submitted once and the cut/fill information
needs to be updated for the revised Portland sewer tie-in prior to submittal.
EFWP has had discussions with the City of Lake Oswego Building Department and it was advised to apply for
the Demolition Permit and Building Permit upon completion of the Land Use Process, so as not to incur
additional review time and associated costs. These activities have been scheduled for after the Land Use
Application Approval as well as after the City Council Go/No-Go decision.
EPCOR FOOTHILLS WATER PARTNERS | LAKE OSWEGO WASTEWATER TREATEMENT FACLITIY P3 | FINAL PROJECT SUBMITTAL
3. COST SUBMITTAL
9 | P a g e
3 Cost Submittal
3.1 Updated Design-Build Work Cost
5.1.4 (a) An updated Design-Build Work cost, which shall be accompanied by appropriate open -book pricing, with
supporting documentation to include updated quantities, and subcontractor/supplier quotes that are greater than
0.5% of the Project direct costs;
The Design-Build Price is $189,027,166 which is made up of the components outlined below in Table 3-1.
Table 3-1: Design-Build Price Summary
Design-Build Price Element Cost ($USD)
Construction Cost $184,052,295
EPCOR Project Management $2,877,497.00
EPCOR O&M Mobilization $1,346,972.00
Construction Period EPCOR Insurance $680,402.00
Independent Wastewater Expert (50% - EFWP Portion) $70,000.00
Total $189,027,166
The sections below provide a summary of how these costs were derived with accompanying supporting
documentation. Refer to Cost Submittal – Attachments – 3.1 Design Build Cost Documents for the detailed
breakdown comparing the Design-Build Price in previous tasks to current.
3.1.1 Construction Cost
Refer to Cost Submittal – Attachments – 3.1 Design Build Cost Documents for all subcontractor and supplier
quotes.
There have been several updates to the Design-Build Price which are now reflected in this Final Project
Submittal. Pricing has been refreshed with current quotes, schedule has been refined to address any changes
in scope, and the design has been updated to address the City’s feedback on the 60% and 90% designs.
The Final Project Submittal also includes an updated design and corresponding estimate to address the
outstanding technical issues as reviewed with the City and detailed in the following document, ‘Lake Oswego
Wastewater Treatment Replacement Project - Outstanding technical items [Nov 3 2023]’. All items have been
closed out except the following, which require additional investigation and effort to close out:
• Updates to the generator sizing report require the vendor to update their model and reissue the
report. Updated information has been provided to the generator supplier, the model is scheduled
for the week of November 13, 2023 and will be provided to the City upon completion.
• Relocation of the Portland sewer main tie-in to the North-West corner of the Tryon Creek lot is
underway. Provided in Section 2.2.3 is a Class-5 capital estimate for this redesign.
Additionally, but not found with the outstanding technical issues identified by the City, a design solution is
currently being developed to address the influent alkalinity concerns. A Class-5 capital estimate has been
provided in Section 2.2.3 for a make-down soda ash feed system with an integrated silo storage tank. The soda
ash system and silo is currently anticipated to be located on the north boundary of the site adjacent the trash
bins. To finalize the design, additional influent testing for alkalinity and TKN will be required to determine the
appropriate and optimal sizing and for the chemical system.
EPCOR FOOTHILLS WATER PARTNERS | LAKE OSWEGO WASTEWATER TREATEMENT FACLITIY P3 | FINAL PROJECT SUBMITTAL
3. COST SUBMITTAL
10 | P a g e
Construction Pricing Update from 90% Design
The culmination of changes from Task 4 to Task 5 has resulted in an increase of 7.7% to the total Design-Build
Price. A review of the main changes driving this increase are summarized in the table below, the identified
costs include 5% for Contingency and 15% for Mark-up. The table below is not meant to capture all changes
but highlight the significant items incorporated over the period. Further details can be found in the sections
below to explain some of the other Design-Build Price fluctuations.
The following sections review the Final Project Submittal as it compares to the Task 4 Submission. The
comparison is made between the divisional breakouts for each specified area (e.g., Treatment Area,
Administration, and Workshop) and a detailed review is provided for any fluctuations or variance greater than
$250,000.00.
This Final Project Submittal is based on the information submitted with the updated 90% Design Drawings &
Specifications, coupled with construction and design-based assumptions required to execute the work. The
level of estimate, found below, varies throughout the work-breakdown-structure from a Class 2 estimate to a
Class 1 estimate where more detailed information is available.
This round of pricing has seen increased stability in line-material pricing, with moderate increase in equipment
pricing and labor rates. The average increase to labor was close to 5% which equates to $2.5M increase to the
project.
Extras
Water Reuse updates to include tank and future provisions 636,994.43$
Influent channel increased in depth to accommodate screenings headloss concerns 149,911.18$
Added the Lake O sewer upgrades into the estimate 901,242.38$
Added the solar into the overall estimate 467,182.25$
Benching to tertiary channel 52,263.50$
Tryon Creek PS flow meter and MH 82,839.55$
Design Updates
Additional Design costs (approved Co's and additional costs to complete)448,832.58$
Added rammed aggregate piers for the administration foundation 485,415.00$
Remainder of the potable water line missed at 60%414,051.12$
Added contacts for the access hatches 197,879.86$
Code Change - More robust concrete design to accommodate the new code (additional rebar)512,414.70$
Construction Updates
Temp shoring – excavation limits encroached on existing structures and slopes needing protection.568,732.50$
O&M Optimization Through Capital Upgrades
Additional WAS tank to support a more reliable operation, includes additional equipment 919,450.88$
Additional lifting devices (e.g., monorails, cranes, davits, etc.)192,215.89$
Added removable covers on the AGS Basins and WLC 763,917.44$
Added a Bioprobe to test the screened influent 92,079.99$
Market Changes
Labor increase (on average) 4.7% from the last submission (pursuant to the Davis Bacon Wage Act).2,596,522.80$
Miscellaneous
Added professional indemnity and PSPL to the estimate 5,462,500.00$
Total 14,944,446.04$
EPCOR FOOTHILLS WATER PARTNERS | LAKE OSWEGO WASTEWATER TREATEMENT FACLITIY P3 | FINAL PROJECT SUBMITTAL
3. COST SUBMITTAL
11 | P a g e
Contingency, Indirects, Design and General Directs
The following section focuses on the Contingency, Indirects, Design, and General Directs.
Contingency
The Risk Register has continued to evolve throughout the Preliminary Services as more information becomes
available and the severity or probability of risks have become better understood. There have been fluctuations
up and down in the individual risk items over the period; however, with additional design development has
realized an overall reduction in the risk exposure from the previous version. The current risk register, found in
Cost Submittal – Attachments – 3.1 Design Build Cost Documents has assessed the risk between the lower
allowance of $4.9M and the upper allowance of $10.5M.
The current contingency value of $7.4M represents a savings of $2.3M from the previous iteration and falls
within the risk register lower and upper allowances provided above.
Indirects
The indirects for the Project have had some significant changes since Task 4. The following provides a summary
and rough order of magnitude for the three significant changes found within the Indirects section:
• Letter of Credit – the letter of credit has been removed from the Project requirements providing
a savings of $550K at the Design-Build cost level.
• Insurance – the current market for Professional Indemnity and Project Specific Professional
Liability (PSPL) insurance is strained. The PSPL market, for water and wastewater treatment
facilities specifically, is limited in capacity and identified as a poor risk category for insurers – this
is indicated in the pricing received. Insurance has provided the largest increase to the costs, adding
$4.75M to the Project (at the cost level) and accounting for just over 35% of the total increase
from Task 4 to current. The team reviewed options with Marsh to see if a better solution was
available but any adjustments to the extended reporting period or the deductible provided little
improvement. EFWP open to discussing other solutions for the Project and will continue to review
options with the insurance broker to see if any other opportunities exist.
• Escalation – consistent with industry forecasts, the escalation has been reduced to 4.5% for the
first year and down to 3.5% for every subsequent year after that. The escalation percentages have
been consistently applied to each labor, material, equipment, and subcontracts, for a total
reduction of $1.2M from the previous submission. Further details are provided in the table below
and within the spreadsheet located in Cost Submittal – Attachments – 3.1 Design Build Cost
Documents.
Task 1 Task 2 Task 3.1 Task 4 Task 5 Variance 5 to 4
Contingency 19,300,000$ 12,200,000$ 10,145,536$ 9,637,673$ 7,362,167$ ($2,275,507)
Indirects 12,298,422$ 12,845,123$ 15,518,241$ 15,459,754$ 15,586,444$ $126,691
Bond -$ 1,743,723$ 2,703,748$ 2,640,215$ ($63,533)
LoC -$ 585,000$ 549,000$ -$ ($549,000)
Escalation 1,806,225$ 8,959,356$ 5,945,197$ 4,769,910$ ($1,175,287)
Insurance (Professional Indemnity/PSPL)-$ -$ -$ -$ 4,750,000$ $4,750,000
Design 10,900,000$ 10,900,000$ 11,559,872$ 11,918,523$ 13,127,297$ $1,208,775
General Directs 7,122,413$ 7,735,722$ 8,888,701$ 8,289,688$ 8,723,069$ $433,381
EPCOR FOOTHILLS WATER PARTNERS | LAKE OSWEGO WASTEWATER TREATEMENT FACLITIY P3 | FINAL PROJECT SUBMITTAL
3. COST SUBMITTAL
12 | P a g e
Design
Design increases of $1.2M in the period include the agreed changes to the Preliminary Services and a nominal
increase to WSP’s overall design services cost of $200K. Further detail is provided in the table below.
General Directs
Overall Increases found within the General Directs line was realized across the board for labor, equipment,
materials, and subcontracts. The increase is consistent with the inflationary numbers for the year and
supported by the wage increases for labor and quotes received for materials, equipment, and subcontracts.
Treatment Area
The following section focuses on the Treatment Area of the facility, by division.
Year 0 Year 1 Year 2 Year 3 Total
Subs Yearly Cost 25,214,402$ 15,452,644$ 2,998,059$ 115,000$ 43,780,106$
Yearly Escalation -$ 695,369$ 244,567$ 13,734$ 953,670$
Craft Labor Yearly Cost 2,797,496$ 14,195,735$ 8,315,934$ 611,417$ 25,920,581$
Yearly Escalation -$ 638,808$ 678,372$ 73,022$ 1,390,202$
Staff Labor Yearly Cost 1,478,855$ 3,597,041$ 4,450,511$ 1,861,418$ 11,387,825$
Yearly Escalation -$ 161,867$ 363,050$ 222,309$ 747,227$
Const Equip Yearly Cost 1,500,667$ 2,051,905$ 1,360,314$ 52,596$ 4,965,483$
Yearly Escalation -$ 92,336$ 110,968$ 6,282$ 209,585$
Material Yearly Cost 39,330,699$ 19,254,383$ 6,127,120$ 862,088$ 65,574,290$
Yearly Escalation -$ 866,447$ 499,820$ 102,959$ 1,469,226$
Total Cost 70,322,120$ 54,551,707$ 23,251,939$ 3,502,518$ 151,628,284$
Total Escalation -$ 2,454,827$ 1,896,777$ 418,306$ 4,769,910$
Yearly Escalation %-$ 4.5%4.0%3.8%0.78%
Lake O - Escalation
Task 1 Task 2 Task 3.1 Task 4 Task 5 Variance 5 to 4
Design Breakout 10,900,000 $ 10,900,000 $ 11,559,872 $ 11,918,523 $ 13,127,297 $ $1,208,774
Design Engineering - (Prelim services + IFC budget)9,150,745 $ 9,522,448 $ $371,704
Design Engineering - Aecon Preliminary Services 1,600,000 $ 1,894,687 $ $294,687
Design Engineering - Site re-orientation 385,651 $ 385,651 $ $0
Design Engineering - Aqua-Aerobic Preliminary Services - $ 545,000 $ $545,000
Ancillary Design Services (Material Testing, Siesmic, etc.)809,127 $ 779,510 $ ($29,617)
Task 1 Task 2 Task 3.1 Task 4 Task 5 Variance 5 to 4
Treatment Area
Div 2 - Site Works 5,979,831$ 7,154,396$ 13,975,482$ 9,962,441$ 13,804,440$ $3,841,999
Div 3 - Concrete 12,351,115$ 15,951,236$ 19,467,562$ 19,136,954$ 19,725,269$ $588,315
Div 4 - Masonry -$ -$ 154,130$ 144,391$ 343,881$ $199,490
Div 5 - Metals 6,107,960$ 4,621,798$ 4,247,912$ 4,528,957$ 4,460,186$ ($68,771)
Div 6 - Woods & Plastics -$ -$ -$ -$ -$ $0
Div 7 - Thermal & Moisture Protection 2,933,404$ -$ -$ -$ -$ $0
Div 8 - Openings 280,000$ 215,620$ 310,030$ 386,131$ 1,017,268$ $631,137
Div 9 - Finishes 180,000$ 167,234$ 62,090$ 153,484$ 289,590$ $136,106
Div 10 - Specialties 20,000$ 9,849$ 12,186$ 150,173$ 107,069$ ($43,104)
Div 11 - Process Equipment 22,578,520$ 32,563,153$ 35,921,845$ 34,355,505$ 35,984,045$ $1,628,540
Div 12 - Furnishings -$ -$ -$ -$ -$ $0
Div 13 - Special Construction 1,541,450$ 1,409,675$ 1,447,511$ 1,884,363$ 1,637,173$ ($247,190)
Div 14 - Conveying Systems 200,000$ 113,900$ 56,950$ 206,315$ 317,167$ $110,852
Div 15 - Mechanical / Plumbing 7,276,400$ 9,655,361$ 14,176,454$ 13,250,161$ 13,994,988$ $744,827
Div 16 - EI&C 11,057,875$ 9,528,799$ 13,283,517$ 12,895,302$ 15,234,825$ $2,339,522
Treatment Total:70,506,555$ 81,391,021$ 103,115,669$ 97,054,177$ 106,915,900$ $9,861,723
EPCOR FOOTHILLS WATER PARTNERS | LAKE OSWEGO WASTEWATER TREATEMENT FACLITIY P3 | FINAL PROJECT SUBMITTAL
3. COST SUBMITTAL
13 | P a g e
Division 2 – Site Works
The updates to the 60% design included the addition of the Lake Oswego sewer upgrades, significant increases
to the underground potable water scope, additional underground work for the primary electrical, and
additional excavation for the structural changes and utility realignments. Coupled with the additional
earthwork quantities required for the change to scope, a detailed volumetric analysis was completed by the
modelling team to properly sequence the excavation and backfill activities required on site. The volumetric
analysis identified the total quantity of earthwork at 90,000 cubic yards, an increase of 32% from the previous
submission. One of the main reasons for this increase, outside of the noted design changes is the space
constraints on site, the limited space requires significant double handling of material (e.g., backfilling areas to
allow the course of construction to continue, that then must be re-excavated again later) with almost all
material having to be trucked offsite, stored, and eventually returned for backfill. Multiple bids were solicited
for the earthwork; however, only one proponent provided a price for this scope, representing an increase of
$3.6M.
The outfall scope has been modified from the 60% design which accounted for a savings of $700K. The primary
reason for the change was the removal of the pneumatic pinch valve for an electric butterfly valve which
allowed for a smaller chamber at the edge of the river and eliminated the compressor building and equipment.
The volumetric analysis also revealed additional bedrock excavation and cutback slopes that encroached on
existing structures and into the steep hill on the west side the property towards State Street. To account for
these clashes and mitigate against undermining concerns, shoring was added to the budget for an additional
cost of $500k. Additional bedrock removal was required for the new waste activated sludge (WAS) and Reuse
tanks and adjusted for quantities under the solids building.
The improvements in the underground electrical price were primarily attributed to redesign and elimination of
the underground ductbank. The modifications represent a savings of $600K.
The following provides a breakout and rough order of magnitude associated with the changes provided above:
1. Scope & Supply Increase for all Earthwork (includes trenching for utilities) – $3.7M
2. Scope & Supply Increase for rock blasting – $360K
3. Scope & Supply increase for underground utility yard piping - $500K
4. Scope decrease for outfall upgrades - $700K
5. Scope increases for Shoring – $470k
6. Scope decreases for underground electrical – $600k
Division 3 – Concrete
From the 60% submission to the 90% submission the concrete design increased rebar densities to account for
the new structural code changes, incorporated two additional process tanks and increased the depth of the
screened influent channels. The increased rebar quantities of 412,000 lbs were offset by more competitive
supply/install rates of $1.03/lbs versus the previous quote of $1.21/lbs. With everything else largely remaining
the same the additional costs were found in concrete supply and the additional concrete required for the WAS
and Reuse Tanks.
The following provides a breakout and rough order of magnitude associated with the changes provided above:
1. Supply decrease for Rebar – $200K
2. Supply increases for concrete – $200K
3. Scope increase for WAS and Water Reuse Tanks – $550K
EPCOR FOOTHILLS WATER PARTNERS | LAKE OSWEGO WASTEWATER TREATEMENT FACLITIY P3 | FINAL PROJECT SUBMITTAL
3. COST SUBMITTAL
14 | P a g e
Division 8 – Openings
Division 8 remained largely the same from Task 4 to Task 5 except for the retractable openings on the AGS
basin. The previous design contemplated removable hollow core panel for maintenance access to the basins;
however, further discussions with the hollow core suppliers persuaded against using hollow core for this
application. The retractable cover provides everyday access to instrumentation for the operations team, and
provides easy access for maintenance (i.e. does not require a crane to remove the panel). The additional costs
for the retractable covers is partially offset by the savings to the hollow core panels (~$80K).
The following provides a breakout and rough order of magnitude associated with the changes provided above:
1. Scope increase for retractable covers – $480K
Division 11 – Process Equipment
In general, the supply of process equipment continued to see moderate increases across the market from the
previous Task 4 submission, with larger increases for the supply of the UVs, grit removal equipment, and the
odor control equipment. AquaNerada and AquaStorm pricing held firm from the previous submission. The
current 90% design added an intermediary WAS tank to provide a more consistent feed through to the rotary
drum thickeners to improve the overall operability of the thickening system; the addition included 4 more
mixers, and two additional RDT feed pumps. With the added scope, the larger supply increases noted above,
the general increase across the board for the equipment supply, and increases to the labor rates, Division 11
experienced an increase of $1.6M in the period.
The following provides a breakout (of the largest fluctuations) and rough order of magnitude associated with
the changes provided above:
1. Scope increase for WAS Mixers and RDT Pumps – $180k
2. Supply cost increase for the UV System – $400k
3. Supply cost savings for the Perforated Screens - $240K
4. Supply cost increase for the Grit Removal System – $130k
5. Supply cost increase for the Odor Control System – $100k
6. Supply increase for Labor (Filanc quote) - $900K
Division 15 – Mechanical / Plumbing
The updated Division 15 Mechanical design experienced modest scope increases from 60% to 90% design.
Overall, the Mechanical price increased $740K which is mostly attributed to a modest increase in the HVAC
supply costs as well as an increase to the supply and install costs for the remainder of the work within the
division.
The following provides a breakout and rough order of magnitude associated with the changes provided above:
1. Supply cost increase for HVAC – $150k
2. Scope and supply increase Mechanical (Filanc Quote) – $600K
Division 16 – Electrical, Instrumentation and Controls
Division 16 experienced a large increase in the period which was the result of a number of smaller scope
increases, with the exception of the solar for $390K which is now included in the overall pricing.
The following provides a breakout and rough order of magnitude associated with the changes provided above:
1. Scope & Supply Increase flow measurement – 100K
EPCOR FOOTHILLS WATER PARTNERS | LAKE OSWEGO WASTEWATER TREATEMENT FACLITIY P3 | FINAL PROJECT SUBMITTAL
3. COST SUBMITTAL
15 | P a g e
2. Scope increase for lighting in the process area - $280K
3. Scope increase for TCPS feed - $130K
4. Scope increase for contacts on access hatches – $160k
5. Scope increase for the additional WAS tank and Equipment - $140K
6. Scope increase for grounding detail – $250k
7. Scope increase for Solar on the Electrical & Blower/Solids Building – $390K
8. Scope increase for Reuse tank – $130K
9. Scope increase for added instrumentation (e.g., Bioprobe, additional HMI, etc.) - $280K
10. Supply increase for Labor - $230K
Administration Area
The following section focuses on the Administration Area of the facility, by division.
Division 2 – Site Works
The largest increase to the Administration Area costs is attributed to the addition of the rammed aggregate
piers required under the foundation of the building. While there have been small movements within the
various cost breakouts, the rammed aggregate piers account for most of the increase to Division 2.
Division 7 – Thermal & Moisture Protection
Quotes received back for Division 7 provided some savings in the roofing for about $130K but the wall cladding
quotes came back substantially higher for an increase of $400k. Overall, the Division 7 costs increased by
$270K.
Task 1 Task 2 Task 3.1 Task 4 Task 5 Variance 5 to 4
Administration Area
Div 2 - Site Works 691,625$ 720,149$ 728,244$ 172,105$ 584,784$ $412,680
Div 3 - Concrete 305,744$ 591,050$ 160,036$ 162,818$ 332,116$ $169,298
Div 4 - Masonry -$ -$ 47,932$ 47,932$ 114,010$ $66,078
Div 5 - Metals 144,000$ 40,385$ 273,895$ 302,275$ 302,444$ $169
Div 6 - Woods & Plastics 501,677$ 384,258$ 361,586$ 361,586$ 334,602$ ($26,984)
Div 7 - Thermal & Moisture Protection 402,456$ 859,300$ 657,193$ 657,247$ 930,177$ $272,930
Div 8 - Openings 540,000$ 191,060$ 206,682$ 221,834$ 233,587$ $11,753
Div 9 - Finishes 728,000$ 537,043$ 697,314$ 697,314$ 665,647$ ($31,667)
Div 10 - Specialties 136,000$ 63,546$ 41,559$ 41,768$ 119,487$ $77,719
Div 11 - Process Equipment -$ -$ -$ -$ -$ $0
Div 12 - Furnishings 100,000$ 31,620$ 65,576$ 65,576$ 73,555$ $7,979
Div 13 - Special Construction -$ -$ -$ -$ -$ $0
Div 14 - Conveying Systems -$ -$ -$ -$ -$ $0
Div 15 - Mechanical / Plumbing 834,400$ 1,195,640$ 1,057,650$ 696,077$ 614,699$ ($81,377)
Div 16 - EI&C 501,800$ 751,139$ 913,119$ 913,119$ 1,081,114$ $167,995
Administration Total:4,885,702$ 5,365,190$ 5,210,785$ 4,339,650$ 5,386,221$ $1,046,571
EPCOR FOOTHILLS WATER PARTNERS | LAKE OSWEGO WASTEWATER TREATEMENT FACLITIY P3 | FINAL PROJECT SUBMITTAL
3. COST SUBMITTAL
16 | P a g e
Workshop Area
The following section focuses on the Workshop Area of the facility, by division.
There was only one minor fluctuation in the workshop area with the addition of monorail hoist system for an
additional $50K, otherwise the workshop remained the same.
3.1.2 EPCOR Project Management and O&M Mobilization
EFWP has provided a detailed breakdown of how the EPCOR Project Management and O&M Mobilization costs
have been derived. These details are outlined in Cost Submittal – Attachments – 3.1 EPCOR PM & O&M
Mobilization.
Included in the EPCOR Project Management is full time site personnel for EPCOR including a Project Manager
and Construction Coordinator. They are led by the Project Execution Lead who shall manage remotely
supplemented by monthly or more frequent site visits as becomes necessary at various points during
construction. This team will oversee the design-build construction team and is supported by the Director,
Project & Technical Services until Final Completion. The spreadsheet outlines the updates made from Task 4 to
this submission. No mark-up is included on this amount. Notable adjustments since Task 4 include:
Contingency reduction from 6% to 4%
Wage escalation of approximately 3%
Inclusion of a portion of the previously noted “SPV” costs, equal to approximately $340K (reduction
from over $875K included in Task 4 financial model)
Included in the EPCOR O&M Mobilization are the personnel, expenses and direct costs necessary to prepare
for commissioning and start-up of the WWTF. The majority of these costs are the Operations and Maintenance
staff costs during the construction period including their onboarding, training and commissioning support.
Other items include software purchases, laboratory equipment, small tools and office expenses for staff during
construction. The spreadsheet outlines the updates made from Task 4 to this submission. No mark-up is
included on this amount. Notable adjustments since Task 4 include:
Contingency reduction from 6% to 4%
Wage escalation of approximately 3%
Inclusion of process engineering, training and quality subject matter experts
3.1.3 Construction Period EPCOR Insurance
Based on the latest insurance team revisions to the draft Project Agreement in Commercial Submittal -
Attachments – 4.1 Draft Project Agreement, EPCOR has provided the costing for the necessary insurance
Task 1 Task 2 Task 3.1 Task 4 Task 5 Variance 5 to 4
Workshop Area
Div 2 - Site Works 9,750$ 33,368$ 38,560$ 55,330$ 42,755$ ($12,575)
Div 3 - Concrete 151,501$ 104,493$ 54,842$ 54,978$ 53,059$ ($1,919)
Div 4 - Masonry -$ -$ -$ -$ -$ $0
Div 5 - Metals 444,000$ 360,000$ 250,680$ 250,680$ 250,680$ $0
Div 6 - Woods & Plastics -$ -$ 3,252$ 3,252$ 3,592$ $340
Div 7 - Thermal & Moisture Protection -$ -$ -$ -$ -$ $0
Div 8 - Openings 88,000$ 37,519$ 46,293$ 46,376$ 26,808$ ($19,569)
Div 9 - Finishes 80,000$ 32,052$ 17,043$ 17,043$ 17,043$ $0
Div 10 - Specialties -$ 26,000$ 12,440$ 12,440$ 36,028$ $23,588
Div 11 - Process Equipment -$ -$ -$ -$ -$ $0
Div 12 - Furnishings -$ -$ -$ -$ -$ $0
Div 13 - Special Construction -$ -$ -$ -$ -$ $0
Div 14 - Conveying Systems 20,000$ 56,950$ -$ -$ 48,333$ $48,333
Div 15 - Mechanical / Plumbing 348,600$ 595,078$ 169,235$ 128,545$ 142,839$ $14,294
Div 16 - EI&C 263,400$ 34,939$ 50,612$ 50,612$ 54,600$ $3,988
Workshop Total:1,405,251$ 1,280,399$ 642,957$ 619,257$ 675,737$ $56,479
EPCOR FOOTHILLS WATER PARTNERS | LAKE OSWEGO WASTEWATER TREATEMENT FACLITIY P3 | FINAL PROJECT SUBMITTAL
3. COST SUBMITTAL
17 | P a g e
coverages during the design-build period. This includes worker’s compensation, professional liability, and
automotive liability. The Design-Builder’s insurance premiums are included in the Construction Cost as shown
in Section 3.1.1. The premium summary can be found in Cost Submittal – Attachments – 3.1 EPCOR DB Period
Insurance.
3.1.4 Independent Wastewater Expert
EFWP has solicited competitive bids from four qualified firms for the Independent Wastewater Expert scope.
To assist in informing the final scope of the Independent Wastewater Expert, the firms were asked to provide
pricing on certifying Substantial Completion and Final Completion (Punch List items completeness), in addition
to Final Acceptance. As demonstrated in Table 3-2, the average price was approximately $120,000. As such,
EFWP has carried $70,000 for the EFWP portion of this item and to account for future escalation as this contract
will not be awarded until 2026. It is suggested the City also carry $70,000 for cost estimating purposes.
The bids can be found in Cost Submittal – Attachments – 3.1 Independent WW Expert Proposals.
Table 3-2: Summary of Bids Received for Independent Wastewater Expert Scope
Company Substantial Completion Final Acceptance Final Completion Total
Arup $35,000 $20,000 $20,000 $75,000
Black & Veatch $40,000 $30,000 $15,000 $85,000
BTY $40,725 $54,500 $22,400 $117,625
Altus Group $96,000 $60,000 $40,000 $196,000
Average $118,406
3.2 Updated Compensation Schedule
5.1.4 (b) An updated compensation schedule specifying the proposed Capital Charge (for each Contract Year) and
Operations Charge Components;
Table 3-3 outlines the updated compensation schedule specifying the proposed Capital Charge, Operations
Charge Components and Repair and Replacement Charge for each Contract Year.
Table 3-3: Compensation Schedule by Contract Year
Contract Year Capital Charge Ordinary Operations and
Maintenance Component
Major Maintenance, Repair
and Replacement Component
1 (2027) 5,888,217 4,162,899 783,756
2 (2028) 5,888,217 3,839,763 -
3 (2029) 5,888,217 3,862,828 -
4 (2030) 5,888,217 4,034,153 -
5 (2031) 5,888,217 4,354,327 -
6 (2032) 5,888,217 4,539,872 107,066
7 (2033) 5,888,217 4,599,999 574,094
8 (2034) 5,888,217 4,782,024 318,540
9 (2035) 5,888,217 4,519,677 372,183
10 (2036) 5,888,217 5,340,263 288,201
EPCOR FOOTHILLS WATER PARTNERS | LAKE OSWEGO WASTEWATER TREATEMENT FACLITIY P3 | FINAL PROJECT SUBMITTAL
3. COST SUBMITTAL
18 | P a g e
Contract Year Capital Charge Ordinary Operations and
Maintenance Component
Major Maintenance, Repair
and Replacement Component
11 (2037) 5,888,217 5,106,852 690,233
12 (2038) 5,888,217 5,259,422 617,421
13 (2039) 5,888,217 5,031,070 848,196
14 (2040) 5,888,217 5,551,764 866,393
15 (2041) 5,888,217 5,807,124 785,454
16 (2042) 5,888,217 5,776,948 639,272
17 (2043) 5,888,217 5,767,406 707,623
18 (2044) 5,888,217 5,918,099 669,073
19 (2045) 5,888,217 6,422,153 816,845
20 (2046) 5,888,217 6,991,501 487,089
21 (2047) 5,888,217 6,633,864 744,478
22 (2048) 5,888,217 6,783,642 971,143
23 (2049) 5,888,217 6,677,651 727,223
24 (2050) 5,888,217 6,820,466 1,041,051
25 (2051) 5,888,217 6,952,240 1,144,635
26 (2052) 5,888,217 7,243,819 507,219
27 (2053) 5,888,217 7,790,039 740,174
28 (2054) 5,888,217 7,706,941 717,065
29 (2055) 5,888,217 7,631,823 1,222,628
30 (2056) 5,888,217 7,792,463 807,660
Total 176,646,519 173,701,092 18,194,718
Grand Total
(Total Service Fee) $368,542,330
EPCOR FOOTHILLS WATER PARTNERS | LAKE OSWEGO WASTEWATER TREATEMENT FACLITIY P3 | FINAL PROJECT SUBMITTAL
3. COST SUBMITTAL
19 | P a g e
3.3 Updated Operation Services Cost
5.1.4 (c) An updated Operation Services cost, which shall be accompanied by appropriate open -book pricing
supporting documentation and include updating quantities, subcontractor and supplier quotes;
The Project Operations Charge consists of the components shown in Table 3-4, in 2023$, which are detailed in
the following sections of the document and identified in Cost Submittal – Attachments – 3.3 Operations
Services Cost Documents.
Table 3-4: Operations Charge Summary
Cost Component Annual
Average
Mark-up Annual Average
with Mark-up
30 year Term
(with Mark-up)
2023 $000s % 2023 $000s 2023 $000s
Annual O&M - Fixed
1,949 10%
2,144
64,317
Annual O&M - Variable
387 10%
426
12,776
Insurance during Operations
155 10%
170
5,104
Electricity Passthrough
637 0%
637
19,123
Natural Gas Passthrough
12 0%
12
360
Residuals Transportation
512 5%
537
16,118
Operations and Maintenance Charge Total 3,652 3,927 117,799
3.3.1 Operations and Maintenance
EFWP has provided a detailed and comprehensive breakdown of how the Operations and Maintenance
component of the Operations Charge was derived and the material factors on which it is based. These costs
allow EFWP to operate within the guidelines outlined in Technical Submittal - Attachments.
Refer to Cost Submittal – Attachments – 3.3 Operations Services Cost Documents for details associated with
determining the operations and maintenance component of the Operations Charge. The Fixed O&M
Worksheet provides a summary of cost categories or “accounts” in the “Summary” tab with a breakdown of
number of employees, quantities and unit costs detailed in the “Detailed O&M” tab. All costs, quotes, and
estimates are provided within the attachment on an open book basis. The “Summary” tab also provides the
updates made since Task 4. The most notable changes in this budget is the removal of sludge hauling as this is
now proposed to be performed on a per-unit basis (see Section 3.3.5) as well as the inclusion of external
laboratory costs, after a detailed analysis was performed as outlined in the “Sampling and Analysis” tab.
The Variable O&M Worksheet provides all non-routine replacements and overhauls less than the $50,000
threshold for Repair and Replacements.
Based on the latest insurance team revisions to the draft Project Agreement in Commercial Submittal -
Attachments – 4.1 Draft Project Agreement, EPCOR has provided the costing for the necessary insurance
coverages during the operations period. This includes worker’s compensation, professional liability, and
automotive liability.
The Operations and Maintenance costs are marked up by the Operations Subcontractor Fee of 10% and
escalated annually.
EPCOR FOOTHILLS WATER PARTNERS | LAKE OSWEGO WASTEWATER TREATEMENT FACLITIY P3 | FINAL PROJECT SUBMITTAL
3. COST SUBMITTAL
20 | P a g e
3.3.2 Repair and Replacement
Refer to Cost Submittal – Attachments – 3.3 Operations Services Cost Documents for the worksheet associated
with determining the repair and replacement component of the Operations Charge. This worksheet contains
the updated major equipment and asset list, based on the 90% design. The list also contains critical asset
details, equipment criticality and equipment redundancy. Each line has been assessed to determine overhaul
and replacement frequencies. These frequencies are based on equipment manufacturers, EPCOR Weibull data
from similar facilities and EPCOR operator experience. Additionally, the cost (equipment, materials and labor)
for overhaul and replacements are listed for each line and is based on the design-build installation estimate as
well as equipment and activities at similar EPCOR facilities. For select and specialized replacements (i.e. blower
overhaul, diffuser membrane replacement and filter media cloth), budgetary quotes have been obtained by
the suppliers and are provided in this attachment. As the draft Project Agreement defines Major Maintenance,
Repair and Replacement to be activities greater than $50,000, the sheet was then filtered to only include
replacements or overhauls equal to or above this threshold amount. All other activities have been included in
a variable component to the Operations and Maintenance costing. For further information on how the Repair
and Replacement will be managed over the 30-year operating term, refer to the Repair and Replacement Plan
in Technical Submittal - Attachments.
The Repair and Replacement costs are marked up by the Operations Subcontractor Fee of 10% and escalated
annually.
3.3.3 Electricity Passthrough
Refer to Cost Submittal – Attachments – 3.3 Electrical Use Estimate, in which EFWP has provided details of its
annual Guaranteed Maximum Electricity utilization costs, which will be incorporated into the Project
Agreement. The cost of electricity will be paid as a passthrough by the City to the Project Company and not
subject to a markup. The pass-through electricity component shall be equal to the actual amount paid by EFWP
to its electric utility provider for electricity supplied to the WWTF and added to the Operations Charge during
each billing period.
The electrical usage by the WWTF will increase as the flow capacity increases from 2025 (7,117,116 kWh/year)
to 2055 (8,060,008 kWh/year) as shown in the Electrical Use Estimate. For modelling purposes, the
consumption was put on a straighline between 2025 and 2055, increasing by approximately 32,000 kWh each
year. The 2055 electricity quantity to be used as the guaranteed amount is 8,060,008 kWh/year.
3.3.4 Natural Gas Passthrough
Based on analysis completed by WSP, the annual natural gas usage of the WWTF is expected to not exceed
12,000 therms. The administration building is expected to consume 650 therms annually and the process
buildings are expected to consume approximately 10,000 therms annually, assuming a set temperature 55
degrees Fahrenheit. The cost of natural will be paid as a passthrough by the City to the Project Company and
not subject to a markup. The pass-through natural gas component shall be equal to the actual amount paid by
EFWP to its natural gas utility provider for natural gas supplied to the WWTF and added to the Operations
Charge during each billing period.
The natural gas consumption is not expected to vary over the 30-year term and as such is held at 12,000 therms
annually as the guaranteed amount.
3.3.5 Residuals Transportation
Upon suggestion from the City, EFWP is proposing that the cost of transportation of residuals (sludge) be paid
for on a per dry ton unit price of $190.00. The unit price methodology ensures no additional risk or costs are
EPCOR FOOTHILLS WATER PARTNERS | LAKE OSWEGO WASTEWATER TREATEMENT FACLITIY P3 | FINAL PROJECT SUBMITTAL
3. COST SUBMITTAL
21 | P a g e
built into this component of the Operations Charge and it incentivizes EPCOR to be efficient which has benefits
to both the City and the City of Portland Columbia Boulevard Wastewater Treatment Plant.
EPCOR intends to maintain a fleet of trucks and tanker trailers to perform the sludge hauling internally. At the
beginning of the term, two complete truck and trailer units will be purchased using the Repair and Replacement
budget. These units are estimated and budgeted to last approximately 10 years and will be replaced twice
during the term of the 30-year term. A third unit is expected to be added to the fleet approximately ten years
into the term. As per discussions with the City, new units will not be provided at the end of the contract but
EPCOR will be required to ensure the units are in good working order.
Purchase of the fleet is included in the Repair and Replacement budget. The unit price of sludge transported
includes the labor, fuel and maintenance of the fleet. The unit price also covers the three full time equivalent
employees that are required for the duration of the term to operate the fleet and provide the necessary
coverage and reliability.
The following assumptions were used in developing this unit price proposal:
Tanker size of 6,000 gallons
A round trip drive time of 70 minutes
30 minutes of loading time and 30 minutes of unloading time
Drivers would work a 10 hour shift that will include evenings and nights to avoid high traffic times
of the day
The trucks and trailers will be stored on site along the west fence line when not in use
Based on experience and advice from the City of Portland, it has been assumed the optimal concentration will
be 4.5%. EPCOR intends to work with staff at the Columbia Boulevard Wastewater Treatment Plant to look for
truck unloading efficiencies. Although a 7% density is permitted in the draft Project Agreement, it has been
advised that this thickness is not feasible at this time. A 7% density level was assumed in the Task 4 submittal.
The more the sludge is thickened, the fewer truck loads will be required and the lower the hydraulic loading
on the Columbia Boulevard Facility. EPCOR looks forward to ongoing discussions through the term with the
intent of finding mutual benefits that improve sustainability and reduce the overall environmental footprint.
For modelling purposes, the sludge production values was put on a straighline between 2025 and 2055 contract
values, from 2,383 dry tons in 2025 to 3,003 dry tons in 2055, increasing by approximately 21 dry tons each
year. In comparing to expected sludge production values, EFWP believes these values to be conservative and
have the potential to artificially inflate the price provided by the financial model.
The detailed analysis worksheet on how this unit price has been derived can be found in Cost Submittal –
Attachments – 3.3 Operations Services Cost Documents. Due to the reduced level of risk associated with the
unit price approach to residuals hauling, EFWP is proposing to reduce the Operations Subcontractor Fee to 5%
for this component of the Operations Charge.
3.4 List of Any Proposed Allowance Items
5.1.4 (d) If applicable and requested by the City, a list of any proposed allowance items, alternat e prices and unit
prices; and
As noted above in Section 3.3.5, the City and EFWP have proposed to price residual (sludge) transportation
utilizing a unit price methodology.
EPCOR FOOTHILLS WATER PARTNERS | LAKE OSWEGO WASTEWATER TREATEMENT FACLITIY P3 | FINAL PROJECT SUBMITTAL
3. COST SUBMITTAL
22 | P a g e
3.5 Financial Model Update
5.1.4 (e) A Financial Model Update using a Financial Model acceptable to the City.
The Capital Charge Component and proposed Operations Charge Component and the other elements of Task 5 shall
be based upon the risk allocation established in the Project Agreement.
EFWP has provided the pro forma financial statements and discounted cash flow analysis in Final Price
Submittal – Attachments – 7.1 Financial Pro Forma and Cash Flow.
EFWP would encourage a walk through of the financials with the City to provide further detail and confirm
assumptions.
EPCOR FOOTHILLS WATER PARTNERS | LAKE OSWEGO WASTEWATER TREATEMENT FACLITIY P3 | FINAL PROJECT SUBMITTAL
4. COMMERCIAL SUBMITTAL
23 | P a g e
4 Commercial Submittal
4.1 Design-Build, Operations & Maintenance, and Interface Agreement
5.1.5 (a) Project Company will submit the Design-Build, Operations & Maintenance, and Interface Agreement for the
City’s information;
Refer to Commercial Submittal - Attachments – 4.1 Design Build Agreement for the latest Design-Build
Contract (both clean and redlined versions) for the City’s information, updated to reflect the current financing
arrangement.
Refer to Commercial Submittal - Attachments – 4.1 Operations and Maintenance Agreement for the latest
Operations and Maintenance Agreement (both clean and redlined versions) for the City’s information, updated
to reflect the current financing arrangement.
Refer to Commercial Submittal - Attachments – 4.1 Interface Agreement for the latest Interface Agreement
(both clean and redlined versions) for the City’s information, updated to reflect the current financing
arrangement.
These three draft agreements are subject to final updates and negotiations of the draft Project Agreement
(Commercial Submittal - Attachments – 4.1 Draft Project Agreement).
4.2 Guaranteed Scheduled Acceptance Date
5.1.5 (b) A guaranteed Scheduled Acceptance Date; and
Refer to Commercial Submittal - Attachments – 4.2 Construction Schedule, for the guaranteed schedule for
completing the Design-Build work by the scheduled acceptance date (January 26, 2027).
The Construction Schedule is an integrated schedule defining all activities to be undertaken to ensure the
detailed design and construction period requirements are achieved and the Project reaches Substantial
Completion in compliance with the draft Project Agreement requirements. Table 4-1 below summarizes the
key milestone dates.
Table 4-1: EFWP Task 5 Key Milestones
Activity ID Milestone Completion Date
A1010 Final Project Submittal November 7, 2023
A7500 Site Access Granted March 1, 2024
A1000 Project Agreement Executed (Effective Date) April 15, 2024
A2960 Design-Build Work Notice to Proceed April 30, 2024
A7980 Demolition Start May 3, 2024
A9730 Substantial Completion December 1, 2026
A7050 Completion of Acceptance Testing January 12, 2027
A6990 Acceptance Certificate (Acceptance) January 26, 2027
A7070 Final Completion August 20, 2027
A7550 Longstop Date March 30, 2028
EPCOR FOOTHILLS WATER PARTNERS | LAKE OSWEGO WASTEWATER TREATEMENT FACLITIY P3 | FINAL PROJECT SUBMITTAL
4. COMMERCIAL SUBMITTAL
24 | P a g e
4.3 Critical Path Schedule
5.1.5 (c) A critical path schedule for completing the Design -Build Work by the Scheduled Acceptance Date and an
accompanying maximum drawdown schedule.
Refer to Commercial Submittal - Attachments – 4.2 Construction Schedule, which shows the critical path
schedule items identified by red boxes.
The maximum drawdown schedule is shown in Commercial Submittal - Attachments – 4.3 Maximum
Drawdown Schedule.
EPCOR FOOTHILLS WATER PARTNERS | LAKE OSWEGO WASTEWATER TREATEMENT FACLITIY P3 | FINAL PROJECT SUBMITTAL
5. TECHNICAL SUBMITTAL
25 | P a g e
5 Technical Submittal
5.1 Technical Specifications
5.1.6 (a) Technical Specifications to be incorporated into the Project Agreement;
Refer to 90% Design Submittal – Attachments – 2.1 Design Package for the 90% drawings and specifications,
in alignment with requirements set out in the draft Project Agreement.
5.2 Acceptance Standards and Test Procedures
5.1.6 (b) Acceptance standards, acceptance test procedures, to be incorporated into the Project Agreement;
The Project acceptance standards and acceptance test procedures are set out in the draft Project Agreement
(Article 6) and Appendices to the Project Agreement (Appendix 8), found at Commercial Submittal -
Attachments – 4.1 Draft Project Agreement.
Further details on EFWP strategy and approach to commissioning the new Lake Oswego Wastewater
Treatment Facility, transitioning from the existing TCWTP and decommissioning the TCWTP are outlined in
Technical Submittal – Attachments – 5.2 Commissioning Plan. The Commissioning Plan has been updated to
the latest revision (Revision 3), incorporating the latest information and comments from the City. A clean and
tracked changes version can be found at this location.
5.3 Required Government Approvals
5.1.6 (c) The final and complete list of required Governmental Approvals (recognizing that the Project Company will
be required to acquire all Governmental Approvals) for the Project (including Gove rnmental Approval application
submittal dates and assumed Governmental Approval issuance dates to be incorporated into the Project Agreement;
EFWP shall obtain and maintain all Governmental Approvals necessary to construct and operate the Project as
outlined in Appendices to the draft Project Agreement.
Table 5-1 outlines the Design-Build Governmental Approvals that are expected to be required for the
construction of the Project.
Table 5-1: Expected Design-Build Governmental Approvals
Name of Governmental
Approval
Issuing Entity Permittee /
Approval
Holder
Application
Manager
Information
Supply
Responsibility
Fee Payment
Responsibility
Land Use Approval City of Lake Oswego City of Lake
Oswego
City of Lake
Oswego
EFWP City of Lake
Oswego
Flood Management Area
Development Permit
City of Lake Oswego City of Lake
Oswego
City of Lake
Oswego
EFWP EFWP
Demolition Permit City of Lake Oswego EFWP EFWP EFWP City of Lake
Oswego
Excavation and Grading
Permit (Early Works)
City of Lake Oswego EFWP EFWP EFWP City of Lake
Oswego
Building Permit City of Lake Oswego EFWP EFWP EFWP City of Lake
Oswego
EPCOR FOOTHILLS WATER PARTNERS | LAKE OSWEGO WASTEWATER TREATEMENT FACLITIY P3 | FINAL PROJECT SUBMITTAL
5. TECHNICAL SUBMITTAL
26 | P a g e
Name of Governmental
Approval
Issuing Entity Permittee /
Approval
Holder
Application
Manager
Information
Supply
Responsibility
Fee Payment
Responsibility
Erosion Control Permit City of Lake Oswego EFWP EFWP EFWP City of Lake
Oswego
Tree Protection and/or
Removal Permit
City of Lake Oswego EFWP EFWP EFWP City of Lake
Oswego
Street Opening / ROW
Permit
City of Lake Oswego EFWP EFWP EFWP City of Lake
Oswego
Temporary Traffic Control
Permit (if required)
City of Lake Oswego EFWP EFWP EFWP EFWP
BDS Permit Assumed to be a work permit through City of Portland Tryon Creek Wastewater Treatment Plant
staff.
PGE Energization Permit Portland General
Electric
EFWP EFWP EFWP EFWP
NPDES Wastewater
Permit Transfer
Oregon Department of
Environmental Quality
(ODEQ)
City of Lake
Oswego
City of Lake
Oswego / City
of Portland
City of Lake
Oswego / City
of Portland /
EFWP
City of Lake
Oswego
Air Permit ODEQ City of Lake
Oswego
EFWP EFWP EFWP
1200-C Construction
Stormwater Permit
ODEQ EFWP EFWP EFWP City of Lake
Oswego
401 Water Quality
Certification
ODEQ City of Lake
Oswego
EFWP EFWP EFWP
Wetland & Ordinary High
Water (OHW) Delineation
Concurrence
Oregon Department of
State Lands
City of Lake
Oswego
EFWP EFWP EFWP
Removal/Fill Permit, JPA
or Individual
Oregon Department of
State Lands (DSL)
City of Lake
Oswego
EFWP EFWP City of Lake
Oswego
Joint Permit Application
(JPA) or Individual
United States Army
Corps of Engineers
City of Lake
Oswego
EFWP EFWP City of Lake
Oswego
Conditional Letter of Map
Revision – Fill
FEMA City of Lake
Oswego
EFWP EFWP City of Lake
Oswego
Final Letter of Map
Revision – Fill
FEMA City of Lake
Oswego
EFWP EFWP EFWP
Table 5-2 outlines the assumed Design-Build Governmental Approval application submittal and approval dates,
which the Project Company may utilize to claim an Other Relief Event as per the draft Project Agreement.
Table 5-2: Assumed Design-Build Governmental Approval Application Submittal and Approval Dates
Name of Governmental Approval Issuing Entity Assumed Governmental
Approval Application Date
Assumed Governmental
Approval Issuance Date
Land Use & Development Review City of Lake Oswego July 14, 2023 March 28, 2024
Excavation and Grading Permit
(Early Works)
City of Lake Oswego May 6, 2024 July 17,2024
Building Permits City of Lake Oswego May 6, 2024 August 23, 2024
Demolition Permit City of Lake Oswego April 1, 2024 May 3, 2024
EPCOR FOOTHILLS WATER PARTNERS | LAKE OSWEGO WASTEWATER TREATEMENT FACLITIY P3 | FINAL PROJECT SUBMITTAL
5. TECHNICAL SUBMITTAL
27 | P a g e
Name of Governmental Approval Issuing Entity Assumed Governmental
Approval Application Date
Assumed Governmental
Approval Issuance Date
Erosion Control Permit City of Lake Oswego February 8, 2024 March 20, 2024
Tree Protection and/or Removal
Permit
City of Lake Oswego February 8, 2024 March 20, 2024
Street Opening / ROW Permit City of Lake Oswego March 28, 2024 June 21, 2024
Temporary Traffic Control Permit City of Lake Oswego March 28, 2024 June 21, 2024
PGE Energization Permit Portland General
Electric
February 10, 2026 February 17, 2026
Flood Management Area
Development Permit
City of Lake Oswego April 26, 2024 July 23, 2024
Air Permit ODEQ October 4, 2023 July 5, 2024
1200-C Construction Stormwater
Permit
ODEQ February 8, 2024 March 20, 2024
Removal/Fill Permit, JPA or
Individual
Oregon Department
of State Lands (DSL)
March 14, 2024 September 13, 2024
Joint Permit Application (JPA) or
Individual
United States Army
Corps of Engineers
March 14, 2024 September 13, 2024
Conditional Letter of Map Revision
– Fill
FEMA TBD – dependent on
revised Portland Sewer
Tie-In final design
June 3, 2024
Final Letter of Map Revision – Fill FEMA July 3, 2024 September 26, 2024
5.4 Changes in Law
5.1.6 (d) A description of any Change in Law that has occurred between the Agreement Date and the date of the
submittal of the Task 5 Technical Deliverable Material;
There are no known Change in Law events that have occurred between the Agreement Date and the date of
the submittal of this Final Project Submittal.
The three Change in Law items that were identified in the Task 4 Draft Definitive Submittal (Floodplain
Management Code, Structural Code and Mechanical Code) have been addressed and incorporated into this
90% Design Submittal.
5.5 Finalized Project Site Description
5.1.6 (e) An updated and finalized description of the Project Site;
The Project Site is depicted by drawing WO-DWG-10-GEN-C-0100, located on Page 18 of “LOWWTF DWGs
90pct R2 2023 1107_Part 1.pdf”, located in 90% Design Submittal – Attachments.
EPCOR FOOTHILLS WATER PARTNERS | LAKE OSWEGO WASTEWATER TREATEMENT FACLITIY P3 | FINAL PROJECT SUBMITTAL
5. TECHNICAL SUBMITTAL
28 | P a g e
5.6 O&M Plan
5.1.6 (f) The O&M Plan including the major maintenance, repair and replacement schedule; and
EFWP submitted the Operations and Maintenance Plans to the City for review as part of Task 2, Task 3, and
Task 4 submissions. The City’s feedback has been incorporated into 90% versions of the plans, with the original
versions and feedback retained for record keeping purposes. All versions of the Operations and Maintenance
Plans are available in Technical Submittal - Attachments. Note that feedback was not received from the City
on six plans so the original versions are provided.
The major maintenance, repair and replacement schedule is referenced in both Section 3.3.2 and Section 7.5.
5.7 Performance Guarantees
5.1.6 (g) Performance guarantees, as required by the Project Agreement.
The Project performance guarantees and deductions are set out in the draft Appendices to the draft Project
Agreement (Appendix 13) included in the Commercial Submittal - Attachments – 4.1 Draft Project Agreement.
EPCOR FOOTHILLS WATER PARTNERS | LAKE OSWEGO WASTEWATER TREATEMENT FACLITIY P3 | FINAL PROJECT SUBMITTAL
6. ADDITIONAL INFORMATION SUBMITTAL
29 | P a g e
6 Additional Information Submittal
6.1 Proposed Subcontractors
5.1.7 (a) The names of proposed Subcontractors and descriptions of their roles for approval by the City;
Aecon has solicited updated bids from multiple qualified potential subcontracts for various scopes of work, as
shown in Section 3.1. Final selection of subcontractors as not been performed. It is anticipated that proposed
Subcontractors for the project will be listed in the final Project Agreement.
6.2 Surety
5.1.7 (b) A letter from a qualified surety confirming the intent of the surety to provide the payment bond and
performance bond required under the draft Project Agreement;
Refer to Additional Information Submittal – Attachments – 6.2 Surety Letter for a letter from a qualified surety
confirming the intent of the surety to provide the payment bond and performance bond required under the
draft Project Agreement.
6.3 Equity, Inclusion, and Diversity Subcontracting Plan
5.1.7 (c) A final equity, inclusion and diversity subcontracting plan, meeting the requirements of Task 3.5;
Refer to Additional Information Submittal – Attachments – 6.3 Equity, Inclusion and Diversity Subcontracting
Plan for an updated equity, inclusion and diversity subcontracting plan, outlining the approach EFWP will take
on the Project to engage disadvantaged, minority, women and emerging small business enterprises.
EFWP recognizes the importance and mutual benefits of a robust equity, inclusion and diversity plan including
but not limited to community connections and local economic development.
6.4 Assumptions and Clarifications
5.1.7 (d) A listing of any assumptions, clarifications or qualifications made by the Project Company in providing its
Task 5 Technical Deliverable Material that are material to any part thereof, including a statement as to what
information supplied by the City (if any) the Project Company proposes to use as the basis of any portion of its Task
5 Technical Deliverable Material;
EFWP’s Final Project Submittal is based on the below assumptions and qualifications:
1. This Final Project Submittal and the pricing therein is based on EPCOR’s last revised draft of the Project
Agreement sent to the City on October 2, 2023 and is contingent upon resolution of any outstanding
items. If there are changes to the draft Project Agreement last sent to the City by EPCOR on October
2, 2023 following the submission, EFWP may need to adjust pricing in the Final Project Submittal.
2. This Final Project Submittal has the support of both Project Company’s senior management and Board
of Directors. All necessary approvals for delivery of the Final Project Submittal have been received
which are based on the terms of EPCOR’s last revised draft of the Project Agreement sent to the City
on October 2, 2023. If there are changes to the draft Project Agreement last sent to the City by EPCOR
on October 2, 2023 following the submission date that increases the degree of risk transferred to the
Project Company, additional approvals will be required.
EPCOR FOOTHILLS WATER PARTNERS | LAKE OSWEGO WASTEWATER TREATEMENT FACLITIY P3 | FINAL PROJECT SUBMITTAL
6. ADDITIONAL INFORMATION SUBMITTAL
30 | P a g e
3. Pricing is held for 140 days from the time of this submission (November 7, 2023), which is March 26,
2024
4. All other EFWP’s assumptions, clarifications or qualifications that are material to the Final Project
Submittal are included in the relevant sections of this submittal or with the relevant attachments.
5. Alkalinity addition is not currently included in the 90% design or associated pricing in this Final Project
Submittal. Section 2.2.3 contains indicative pricing for this item.
6. Relocation of the Portland sewer main tie-in to the North-West corner of the Tryon Creek lot is is not
currently included in the 90% design or associated pricing in this Final Project Submittal. Section 2.2.3
contains indicative pricing for this item.
6.5 Other Information
5.1.7 (e) Any other information reasonably requested by the City with regard to the Task 5 Technical Deliverable
Material as necessary or appropriate to make a determination as to whether to p roceed with the Project.
To EFWP’s knowledge, no other information has been requested by the City with regard to the Task 5 Technical
Deliverable Material.
EPCOR FOOTHILLS WATER PARTNERS | LAKE OSWEGO WASTEWATER TREATEMENT FACLITIY P3 | FINAL PROJECT SUBMITTAL
7. FINAL PRICE SUBMITTAL
31 | P a g e
7 Final Price Submittal
7.1 Proposed Capital Charge
Shall be valid for a period of 140 days.
5.1.9 (a) A proposed Capital Charge Component, expressed on an annual basis, with a detailed and comprehensive
description of how the proposed Capital Charge Component was derived and the material factors on which it was
based (financing costs);
5.1.9 (b) Intentionally omitted;
The proposed Project Capital Charge is $5,888,217 per year, paid evenly on a monthly basis. It is composed of
a return on financing component and return of financing component, which will evenly amortize EFWP equity
to zero over the term of the Project Agreement. The material factors on which it was based on include:
The proposed Project Capital Charge is set to an amount that will result in EFWP’s after-tax Return on
Equity of 10.54%.
The amount of EFWP’s equity commitment which will be 20% of construction costs
The timing of EFWP's equity injections will begin after City's contribution have exhausted to minimize
the impact on the Capital Charge
The details on cash taxes are outlined in Section 7.14
More detail is provided in Final Price Submittal – Attachments – 7.1 Financial Pro Forma and Cash Flow on
the timing and amounts of cash flows, and the discounted cash flow calculation used to determine the Capital
Charge.
7.2 Proposed Design-Build Price
5.1.9 (c) A proposed Design-Build Price on a fixed lump sum price basis, which shall be accompanied by appropriate
open-book pricing supporting documentation based on quantities, subcontractor and supplier quotes obtained and
substantiation of all non-bid work as developed pursuant to this Task 5;
The proposed Design-Build Price is $189,027,166. See Section 3.1 for a detailed description of what is included
in the Design-Build Price as well as the accompanying open-book pricing and quotations obtained.
7.3 Proposed Operations Charge Component
5.1.9 (d) A proposed Operations Charge Component, with a detailed and comprehensive description of how the
proposed Operations Charge Component was derived and the open-book pricing and the material factors on which
it was based;
The following Table 7-1 is a summary of the proposed Operations Charge Component. Section 3.3 details how
the Operations Charge Component was derived, including all open-book pricing and material factors.
EPCOR FOOTHILLS WATER PARTNERS | LAKE OSWEGO WASTEWATER TREATEMENT FACLITIY P3 | FINAL PROJECT SUBMITTAL
7. FINAL PRICE SUBMITTAL
32 | P a g e
Table 7-1: Operations Charge Summary
Cost Component Annual
Average
Mark-up Annual Average
with Mark-up
30 year Term
(with Mark-up)
2023 $000s % 2023 $000s 2023 $000s
Annual O&M - Fixed
1,949 10%
2,144
64,317
Annual O&M - Variable
387 10%
426
12,776
Insurance during Operations
155 10%
170
5,104
Electricity Passthrough
637 0%
637
19,123
Natural Gas Passthrough
12 0%
12
360
Residuals Transportation
512 5%
537
16,118
Operations and Maintenance Charge Total 3,652 3,927 117,799
7.4 Proposed Operations Charge Escalation
5.1.9 (e) A proposal on how the Operations Charge will be escalated annually;
Table 7-2 below outlines EFWP’s proposed indexing approach for the three components of the Operations
Charge, using four proposed US Bureau of Labor Statistics indices.
Table 7-2: Proposed Inflation Indexing on Operations Charge Component
Cost Category Series Title (US Bureau of Labor
Statistics) Series ID
Operation and
Maintenance
Charge
Major
Maintenance,
Repair and
Replacement
Component
Residuals
Transportation
Chemicals PPI industry sub-sector data for
Chemical mfg, not seasonally
adjusted
PCU325---325--- 5% 0% 0%
Labor,
Contractors and
Consultants
Office of Employment and
Unemployment Statistics and
Pay and Benefits : Total Private -
Total Private (Hourly) Portland-
Vancouver-Hillsboro, OR-WA
SMU413890005
00000003
75% 25% 60%
Fuel PPI industry data for Petroleum
refineries-Diesel fuel, not
seasonally adjusted
PCU324110324
110C2
0% 0% 15%
Materials and
Supplies /
Miscellaneous
Total average annual
expenditures by Census Region:
Region of residence: west
CXUTOTALEXPL
B1105M
20% 75% 25%
EPCOR FOOTHILLS WATER PARTNERS | LAKE OSWEGO WASTEWATER TREATEMENT FACLITIY P3 | FINAL PROJECT SUBMITTAL
7. FINAL PRICE SUBMITTAL
33 | P a g e
7.5 Annual Repair and Replacement Program Allowances
5.1.9 (f) Identification of an annual repair and replacement program and allowances;
Section 3.3.2 outlines the annual repair and replacement program and allowances. Table 7-3 below outlines
the annual Repair and Replacement Charge by year in 2023$, also shown in Final Price Submittal –
Attachments – 7.1 Financial Pro Forma and Cash Flow.
Table 7-3: Annual Repair and Replacement Charge
Year Annual Amount
(2023$)
Annual Amount with
10% Markup
(2023$)
1 $658,245 $724,070
2 $0 $0
3 $0 $0
4 $0 $0
5 $0 $0
6 $81,444 $89,588
7 $428,143 $470,957
8 $232,900 $256,190
9 $266,786 $293,464
10 $202,535 $222,789
11 $475,555 $523,111
12 $417,048 $458,753
13 $561,695 $617,865
14 $562,496 $618,745
15 $499,948 $549,943
16 $398,924 $438,816
17 $432,918 $476,210
18 $401,308 $441,438
19 $480,334 $528,367
20 $280,809 $308,890
21 $420,780 $462,858
22 $538,129 $591,942
23 $395,067 $434,574
24 $554,466 $609,913
25 $597,681 $657,449
26 $259,656 $285,622
27 $371,480 $408,628
28 $352,826 $388,109
29 $589,788 $648,767
30 $381,971 $420,168
Total $10,842,932 $11,927,225
EPCOR FOOTHILLS WATER PARTNERS | LAKE OSWEGO WASTEWATER TREATEMENT FACLITIY P3 | FINAL PROJECT SUBMITTAL
7. FINAL PRICE SUBMITTAL
34 | P a g e
7.6 Guaranteed Maximum Energy Utilization
5.1.9 (g) An annual guaranteed maximum energy utilization;
5.1.9 (h) An annual guaranteed maximum on any other amounts that the City has agreed in its discretion to treat as
a pass-through;
Section 3.3.3 and Section 3.3.4 outline the guaranteed maximum energy utilization for electricity and natural
gas, respectively. The guaranteed maximum energy utilization for electricity is 8,060,008 kWh/year annually
and the guaranteed maximum energy utilization energy for natural gas is 12,000 therms annually.
7.7 Residuals Transportation Unit Pricing
Section 3.3.5 outlines the proposed approach to unit pricing for residuals (sludge) transportation to the
Columbia Boulevard Wastewater Treatment Plan. The proposed unit price is $190.00 per dry ton hauled.
7.8 Proposed Return-on-Equity Schedules
5.1.9 (i) Proposed Return-on-Equity schedules;
Refer to Final Price Submittal – Attachments – 7.1 Financial Pro Forma and Cash Flow for further detail
outlining details on how the Capital Charge was derived, based on the Return-on-Equity. Row 176 shows the
levered cash flow over the term of the Project.
7.9 Annual Service Fee and Preliminary Services Fee
5.1.9 (j) An annual Service Fee that supports the annual Service Fee calculation and reflects the proposed “Design-
Build Subcontractor Fee”, “Operations Subcontractor Fee” and “Return-on-Equity” set forth in the Project
Company’s Proposal, as well as the Preliminary Services Fee; and
Figure 7-1 and Table 7-4 below summarize the Service Fee requirements of the Project, inclusive of the Design-
Build Subcontractor Fee, Operations Subcontractor Fee and Return-on-Equity, as applicable.
Figure 7-1: Service Fee Summary by Year
EPCOR FOOTHILLS WATER PARTNERS | LAKE OSWEGO WASTEWATER TREATEMENT FACLITIY P3 | FINAL PROJECT SUBMITTAL
7. FINAL PRICE SUBMITTAL
35 | P a g e
Table 7-4: Service Fee Summary by Type
Service Fee Summary
Capital Charge 176,646,519 USD
Operations Charge 173,701,092 USD
Repair and Replacement 18,194,718 USD
Total Service Fee Payments 368,542,330 USD
The Total Service Fee Payments over the term of the Project are $368,542,330 USD. Details of the total Capital
and Operations Charges for each year are available in Final Price Submittal – Attachments – 7.1 Financial Pro
Forma and Cash Flow.
As outlined in the draft Project Agreement, the Final Preliminary Services Fee Payment is anticipated to be
$7,171,092 and the Allowable Financing Costs Payment is anticipated to be $1,225,899. These amounts are
subject to final discussions between EFWP and the City.
7.10 All Other Supporting Information
5.1.9 (k) All costs, bids, quotes, estimates, substantiation and other information supporting the Task 5 Technical
Deliverable Material shall be made available to the City.
The Capital Charge Component and proposed Operations Charge Component and the other elements of the Task 5
Technical Deliverable Material shall be based upon the risk allocation established by the Project Agreement.
As outlined in Section 3, all costing information, bids received, quotes, estimates and other information to
support this Final Project Submittal can be found in Cost Submittal – Attachments.
7.11 Equity Financing Plan
5.1.10 The Project Company must provide a full description of a complete equity financing plan for the Project
Agreement (the “Equity Financing Plan”), including the amounts and timing of required funds through the Desig n-
Build Period, the complete operation and maintenance period and including all the Operation and Maintenance
Services and the lifecycle maintenance. The sources of funds must match the demand for funds throughout both the
design-build period and the operation and maintenance period. Note that some of these deliverables may not be
applicable or necessary, depending on the final financing arrangement.
The Final Project Submission assumes that the Project Company will be funding construction costs and billing
the City monthly until 80% of the construction costs have been incurred. The Project Company’s equity
commitment will be used to fund the final 20% of construction costs; this commitment is for up to $40 million
and will be supported by the Project Company Guarantee from EPCOR USA Inc. (EUSA). EUSA has assets
totalling almost $1.9 billion at June 30, 2023 and its annual cash flows from operations for 2022 was over $100
million. The Project Company is not intending on providing any equity financing during the operation and
maintenance period, with the exception of any Punch List holdbacks as outlined in the draft Project Agreement.
The Project Company equity will be funded by its ultimate parent EPCOR Utilities Inc. (EUI). Founded over 130
years ago, EUI is a North American utility with over 3500 employees. EPCOR builds, owns and operates water
and wastewater treatment facilities, water transmission pipelines, and power and natural gas distribution
systems and is a utility provider to over 2 million customers. EUI had total assets of CAD $15 billion as of
EPCOR FOOTHILLS WATER PARTNERS | LAKE OSWEGO WASTEWATER TREATEMENT FACLITIY P3 | FINAL PROJECT SUBMITTAL
7. FINAL PRICE SUBMITTAL
36 | P a g e
September 30, 2023 and is rated A- from S&P Global Ratings and A(low) from DBRS Morningstar. EUI had CAD
$937 million of annual cash flows from operating activities in 2022 and currently has CAD $1.1 billion of
committed bank credit facilities.
Below in Figure 7-2 is the projected cost during construction and allocation of funding provided between the
City and EPCOR. Table 7-5 shows the Maximum Drawdown Schedule amounts by month, also shown in Final
Price Submittal – Attachments – 7.1 Financial Pro Forma and Cash Flow.
Figure 7-2: Maximum Drawdown Schedule showing allocation of funding between the City and EPCOR
EPCOR FOOTHILLS WATER PARTNERS | LAKE OSWEGO WASTEWATER TREATEMENT FACLITIY P3 | FINAL PROJECT SUBMITTAL
7. FINAL PRICE SUBMITTAL
37 | P a g e
Table 7-5: Maximum Drawdown Schedule Amounts by Month
#Calendar Month Construction Cost City's Funding EFWP's Funding
$$$
1 May-24 (18,857,251) 18,857,251 -
2 Jun-24 (3,606,152) 3,606,152 -
3 Jul-24 (3,036,123) 3,036,123 -
4 Aug-24 (3,672,672) 3,672,672 -
5 Sep-24 (3,973,389) 3,973,389 -
6 Oct-24 (4,255,403) 4,255,403 -
7 Nov-24 (6,269,684) 6,269,684 -
8 Dec-24 (6,573,495) 6,573,495 -
9 Jan-25 (5,995,324) 5,995,324 -
10 Feb-25 (6,179,507) 6,179,507 -
11 Mar-25 (7,970,534) 7,970,534 -
12 Apr-25 (7,897,608) 7,897,608 -
13 May-25 (5,603,204) 5,603,204 -
14 Jun-25 (5,187,053) 5,187,053 -
15 Jul-25 (5,360,318) 5,360,318 -
16 Aug-25 (5,402,152) 5,402,152 -
17 Sep-25 (13,386,144) 13,386,144 -
18 Oct-25 (9,713,775) 9,713,775 -
19 Nov-25 (6,225,324) 6,225,324 -
20 Dec-25 (5,557,680) 5,557,680 -
21 Jan-26 (7,659,348) 7,659,348 -
22 Feb-26 (5,429,122) 5,429,122 -
23 Mar-26 (6,104,765) 3,410,468 2,694,297
24 Apr-26 (7,835,483) - 7,835,483
25 May-26 (5,634,709) - 5,634,709
26 Jun-26 (5,741,424) - 5,741,424
27 Jul-26 (3,474,709) - 3,474,709
28 Aug-26 (2,923,144) - 2,923,144
29 Sep-26 (2,469,590) - 2,469,590
30 Oct-26 (1,339,510) - 1,339,510
31 Nov-26 (962,816) - 962,816
32 Dec-26 (491,949) - 491,949
33 Jan-27 (282,520) - 282,520
34 Feb-27 (188,347) - 188,347
35 Mar-27 (470,867) - 470,867
36 Apr-27 (470,867) - 470,867
37 May-27 (470,867) - 470,867
38 Jun-27 (470,867) - 470,867
39 Jul-27 (470,867) - 470,867
40 Aug-27 (1,412,601) - 1,412,601
41 Sum (189,027,167) 151,221,733 37,805,433
EPCOR FOOTHILLS WATER PARTNERS | LAKE OSWEGO WASTEWATER TREATEMENT FACLITIY P3 | FINAL PROJECT SUBMITTAL
7. FINAL PRICE SUBMITTAL
38 | P a g e
7.11.1 Sources of Equity
5.1.11 The Equity Financing Plan must demonstrate the sources of private equity finance and the level of
commitment of such equity financing, and include the following information, unless otherwise agreed to in writing
by the parties:
(a) Full details of each source of financing, including equity, any construction or standby facilities, and internally
generated funds (separated into interest earned on deposits, reserve accounts, and third party income);
The Project Company will receive its equity from the combined operating cash flows of EUI, supplemented as
necessary by EUI’s CAD $1.1 billion committed bank credit facilities. The Project Company’s financing plan does
not require any equity or quasi-equity to be raised from external sources. The Project Company is not intending
to hold its equity in a deposit or reserve account to minimize costs to the City. EUI has provided a reference
letter from the agent bank in Final Price Submittal – Attachments – 7.11 Bank Reference Letter for its CAD
$750 million syndicated credit facility, which is fully committed through 2027, as further evidence of the
available financial capacity.
7.11.2 Investor Credit Status
5.1.11 (b) Identification and credit status of each equity investor and the amount to be provided by each investor,
including expected yields or returns;
The Project Company will invest equity funding of up to $40 million from funds sourced from its ultimate parent
Company EUI (as discussed in 7.11 and 7.11.2 above and 7.11.3 below) and this equity commitment will be
supported by a Project Company Guarantee from EUSA. The Project Company will be investing the equity
funding at a post-tax return on equity (ROE) of 10.54%.
7.11.3 Availability of Equity
5.1.11 (c) For each investor subscribing equity, details about the availability of equity / quasi-equity finance,
including, as applicable, copies of all relevant agreements and board minutes approving the quantum of equity /
quasi-equity to be provided;
The Project Company will source its equity from the combined operating cash flows of EUI supplemented as
necessary by EUI’s CAD $1.1 billion committed bank credit facilities. EUI has provided a letter of support related
to the Project Company’s equity commitment of up to $40 million (Final Price Submittal – Attachments – 7.11
EUI Support Letter) and also a reference letter from the agent bank for EUI’s CAD $750 million syndicated credit
facility, which is fully committed through 2027, as further evidence of the available financial capacity (Final
Price Submittal – Attachments – 7.11 Bank Reference Letter).
7.11.4 Equity Guarantee
5.1.11 (d) If guarantees are to be provided as part of the financing package, written confirmation by each
shareholder’s parent company, stating that it is able to provide a parent company guarantee in relation to the
availability of the equity / quasi-equity (including the holding of subordinated debt in a tax -exempt structure) for the
Project, and that it has adequate funds available;
The Project Company’s Equity Guarantee will be supported by a Project Company Guarantee from EUSA, as
outlined in EUSA’s support letter in Final Price Submittal – Attachments – 7.11 EUSA Support Letter.
EPCOR FOOTHILLS WATER PARTNERS | LAKE OSWEGO WASTEWATER TREATEMENT FACLITIY P3 | FINAL PROJECT SUBMITTAL
7. FINAL PRICE SUBMITTAL
39 | P a g e
7.11.5 External Sources of Equity
5.1.11 (e) If any equity or quasi-equity finance is to be raised from external sources, specify such sources and provide
written confirmation from the providers as to their willingness to provide funding and the amount of funding
available; and
EFWP does not require any equity or quasi-equity to be raised from external sources.
7.11.6 Project Company Support
5.1.11 (f) Full description (including, where applicable, copies) of all relevant agreements evidencing and confirming
the extent of support (including performance guarantees) that is to be provided in respect of the obligations and
liabilities of the Project Company by each of the Project Company’s shareholders, subcontractors and associated
third parties, including details of any parent and ultimate parent company involvement in any and all such elements
of support.
The Project Company’s Equity Guarantee and performance obligations will be supported by a Project Company
Guarantee from EUSA as described in the letter of support from EUSA (Final Price Submittal – Attachments –
7.11 EUSA Support Letter). Aecon will also provide a parental guarantee in support of its obligations to the
Project Company.
7.12 Term Sheet
5.1.12 The Project Company must provide term sheets for all the equity financing providers including:
(a) The identity of the investor;
(b) The period for which such capital shall be made available;
(c) Type of equity/share;
(d) The amount of committed equity and currency in which it is to be provided;
(e) The drawdown schedule;
(f) Details of grace periods, including duration and contingency;
(g) Repayment or redemption schedules, maturity dates and prepayment ter ms (including make-whole clauses);
(h) Details of the performance security package to be provided by each of the Project contractors, including details
of letters of credit or other security, bonding or guarantee requirements and costs (from either parents or third
parties);
(i) Any conditions precedent for disbursement;
(j) Due diligence requirements;
(k) Any other restrictions, requirements or conditions that may materially impact the Project Company’s ability to
drawdown on committed equity financing upon execution of the Project Agreement;
(l) Details of any standby facilities provided to satisfy the requirements of the Project Agreement;
(m) To the extent that other forms of finance, other than equity, are to be used the Project Company is to provide
appropriate details equivalent to those requested above for equity and debt finance.
The Project Company’s Equity will be invested based upon the terms of the Project Agreement. A summary of
the Project Company’s equity funding strategy is outlined below in Table 7-6.
EPCOR FOOTHILLS WATER PARTNERS | LAKE OSWEGO WASTEWATER TREATEMENT FACLITIY P3 | FINAL PROJECT SUBMITTAL
7. FINAL PRICE SUBMITTAL
40 | P a g e
Table 7-6: Summary of Terms for Equity Funding
Equity Funding Detail Description
The identity of the investor Project Company: EPCOR Foothills Water Project LLC
The period for which such capital shall be
made available
As identified in Section 7.11, it is anticipated that capital shall be made
available between March 2026 and August 2027, subject to the final Maximum
Drawdown Schedule
Type of equity/share Equity investment as per the terms of the draft Project Agreement
The amount of committed equity and currency
in which it is to be provided
Up to $40M USD
The drawdown schedule The anticipated drawdown schedule can be found in Section 7.11.
Details of grace periods, including duration
and contingency
Not applicable. Refer to terms of the draft Project Agreement.
Repayment or redemption schedules,
maturity dates and prepayment terms
(including make-whole clauses)
360 monthly payments of $490,685 USD as shown in Final Price Submittal –
Attachments – 7.12 Financing Repayment Schedule, beginning upon
Acceptance. Prepayment and termination payments as per the draft Project
Agreement.
Details of the performance security package
to be provided by each of the Project
contractors, including details of letters of
credit or other security, bonding or guarantee
requirements and costs (from either parents
or third parties)
As per the draft Project Agreement, the following security packages are
provided:
Project Company Guarantee
Design-Builder Payment and Performance Bonding
Project Contractor Guarantee
Any conditions precedent for disbursement None. Project company will disburse equity at 80% construction completion
as per a pre-determined schedule of values, as agreed-to by the City.
Due diligence requirements Project Company will self-perform due-diligence on construction progress as
per a pre-determined schedule of values, as agreed-to by the City.
Any other restrictions, requirements or
conditions that may materially impact the
Project Company’s ability to drawdown on
committed equity financing upon execution
of the Project Agreement
None. The equity financing for the Project is committed and approved, subject
to execution of the Project Agreement.
Details of any standby facilities provided to
satisfy the requirements of the Project
Agreement
Not applicable.
To the extent that other forms of finance,
other than equity, are to be used the Project
Company is to provide appropriate details
equivalent to those requested above for
equity and debt finance
Not applicable.
EPCOR FOOTHILLS WATER PARTNERS | LAKE OSWEGO WASTEWATER TREATEMENT FACLITIY P3 | FINAL PROJECT SUBMITTAL
7. FINAL PRICE SUBMITTAL
41 | P a g e
7.13 Support Letters
5.1.13 The Project Company must provide confirmation from each of its equity or quasi-equity (including the holding
of subordinated debt in a tax-exempt structure) providers:
(a) That the equity or quasi-equity provider has reviewed and approved the Equity Financing Plan and pricing
established in the Task 5 Technical Deliverable Material;
(b) That the equity or quasi-equity provider is fully committed to providing the equity or quasi -equity described in
the Equity Financing Plan, and
(c) That the equity or quasi-equity provider will make the funds available as described in the Equity Financing Plan.
Final Price Submittal – Attachments – 7.11 EUI Support Letter is EUI’s letter of support for funding the equity
in the project and provides EUI’s relevant details and EUI’s approved support to meet the up to $40 million
equity commitment of EFWP for the project.
Final Price Submittal – Attachments – 7.11 Bank Reference Letter is a reference letter from EUI’s agent on its
fully committed $750 million credit facility, evidencing EUI’s ability to meet the up to $40 million equity
commitment of EFWP for the project.
Final Price Submittal – Attachments – 7.11 EUSA Support Letter is EUSA’s Project Company Guarantee support
letter specifying EUSA will provide a Project Company Guarantee in support of the equity commitment of EFWP
for the project.
7.14 Taxes
5.1.14 The Project Company must provide full details of its taxation assumptions to demonstrate that the Project
Company has given full consideration to all tax implicatio ns in preparing the Equity Financing Plan and Financial
Model.
The Capital Charge is calculated to allow EFWP to earn an after-tax Return on Equity of 10.54%. The relevant
taxation assumptions used in preparing the Equity Financing Plan include:
1) Corporate Activity Tax (CAT) will be payable on all gross receipts/revenues of EFWP during the Term
of the Project Agreement and includes construction revenue, Capital Charge, Operation and
Maintenance Charge and the Repair and Replacement Charge. CAT is at the current rate of 0.57% on
these gross receipts and is calculated after the annual $1 million exemption.
2) Metro Supportive Housing Services Tax (MSHT) will be payable on taxable income of EFWP during the
Term of the Project Agreement as EFWP’s annual gross receipts will be in excess of $5 million. The
current MSHT rate is 1%.
3) State Income Tax is payable on all taxable income of EFWP during the Term of the Project Agreement.
Taxable income for each period during the Term will be reduced by the amount of CAT and MSHT for
that period, as CAT and MSHT will be deductions from State Taxable income. State Income Tax is
included at a rate of 7.6%.
4) Federal Income Tax is payable on all taxable income of EFWP during the Term of the Project
Agreement. Taxable income for each period during the Term will be reduced by the amount of CAT,
MSHT and State Income Tax for that period, as CAT, MSHT and State Income Tax will be deductions
from Federal Taxable income. Federal Income Tax is included at a rate of 21.0%.
Taxable income for both Federal and State Income Tax purposes is calculated based on taxable income for
entire Term of the Project Agreement. For the operating period, taxable income is effectively the return on
financing which EFWP will earn on its equity contribution (less allowable deductions for CAT, MSHT and
Statement Income Tax as noted above). Accounting rules will require EFWP to recognize margin on
construction activity during the construction period, even though no construction margin is contemplated in
the Project Agreement. Based on similar transactions which EFWP’s affiliates have entered into historically,
EFWP has included a deemed 3% non-cash construction margin during the construction period. This additional
EPCOR FOOTHILLS WATER PARTNERS | LAKE OSWEGO WASTEWATER TREATEMENT FACLITIY P3 | FINAL PROJECT SUBMITTAL
7. FINAL PRICE SUBMITTAL
42 | P a g e
non-cash revenue recognized for the construction period will be reduced from return on financing revenues in
the operating period.
7.15 Financial Model Requirements
5.1.15 The City is waiving any additional requirements regarding the Financial Model.
EFWP has provided the pro forma financial statements and discounted cash flow analysis in Final Price
Submittal – Attachments – 7.1 Financial Pro Forma and Cash Flow.
Attachment 3: Consultant Spending on Wastewater Treatment Facility Project
Consultant Function
Total
Contract
Amount
Total Paid
Since the
Start of
Project in
2018
Total Amount
Remaining on
Contract
Illuminati Infrastructure Advisors
(Jill Jamieson)
Owner's
Representative &
Financing Advisor
$497,000 $453,000 $44,000
Carollo Engineers Technical Advisor $1,399,000 $993,000 $406,000
Hawkins, Delafield & Wood Legal Advisor $1,539,000* $1,289,000 $250,000
Universal Field Services
Property Acquisition
and Relocation
Services
$228,000 $120,000 $108,000
Jones Lang LaSalle (Jill Jamieson ).
The contract has been
terminated.
Owner's
Representative &
Financing Advisor
$100,000 $88,000 N/A
WCX (No longer in Business)Owner's
Representative $10,000 $4,000 N/A
Argent Management (Completed)2018 Feasibility Study $150,000 $150,000 N/A
FCS Consulting (Completed)Wastewater Rate
Model Update $8,000 $8,000 N/A
Total $2,392,000 $3,105,000 $808,000
*For Hawkins, Delafield & Wood, a $200,000 amendment to increase the contract to $1,539,000 was authorized by the Council on
October 3, 2023; however, staff is waiting to execute the amendment until after Council has given direction at the January 30 Council
Meeting.
1‐23‐24