HomeMy WebLinkAboutPublic Hearing & Adoption of Parts of the CIP
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Anna Rosenberry, Finance Director
Chris Kukulski, City Manager
SUBJECT: Public Hearing & Adoption of Parts of the Capital Improvements Program
(CIP) for Fiscal Years 2010-2014.
• Water Fund
• Wastewater Fund
MEETING DATE: January 26, 2009
BACKGROUND: On December 15, 2008, the Commission received the City Manager’s
proposed Capital Improvements Program (CIP) for Fiscal Years 2010-2014. At that time, the
document was made available to staff and the public online at
http://www.bozeman.net/finance/capital_improvements_plan.aspx.
We are presenting the CIP for adoption in its individual parts, over a number of public hearings.
The presentation of the CIP for the Solid Waste Fund, Street Maintenance Fund and Forestry
(Tree) Fund and General Fund are scheduled for a later date.
Unscheduled Items: Projects are listed as “unscheduled” for any number of reasons, the most
common of which is lack of funding during the plan years. Projects that we know will be needed
in the next few years after the plan (FY15-FY18) are sometimes included in the plan as
65
“unscheduled” so that everyone can be aware they are on the horizon. Projects that are needed
but are not ready for design or bid (often street expansions that do not have much of the required
right-of-way) are also sometimes listed as “unscheduled”.
Project Cost Estimates:
All project and equipment costs are estimates that will not be finalized
until the City accepts a qualified bid for that specific project or equipment. We have used the
best information available to estimate these amounts, including knowledge of similar, recent
projects or purchases. When available, we have used the most recent engineer’s estimate of
costs.
RECOMMENDATION: Take public comment, make desired changes to the plan, and adopt
the Capital Improvements Program for FY10-14.
FISCAL EFFECTS: Approving this plan does not
provide appropriation authority. The
FY09 projects and equipment will be incorporated into the FY10 City Manager’s Recommended
Budget, which requires final approval before these projects will be funded. The remaining CIP
years (FY11-FY14) serve as a work plan to guide staff, and will be reviewed and revised in the
coming fall for our annual update of the CIP at this time next year.
ALTERNATIVES: As suggested by the City Commission.
Respectfully submitted,
Anna Rosenberry, Finance Director Chris A. Kukulski, City Manager
Report compiled on: January 20, 2009
On File in the City Clerk’s Office: Capital Improvements Program for Fiscal Years 2010-2014
66
WATER FUNDSUMMARY OF CIP BALANCES, REVENUES AND EXPENDITURESCIP FY2010-2004Current Year ----------------------------------------Projected----------------------------------------FY09 FY10 FY11 FY12 FY13 FY14Projected Beginning CIP Balance 3,247,811$ 3,515,622$ 2,880,007$ 511,315$ 521,315$ 2,821,315$ Add: Revenues Dedicated to CIP 2,740,811 2,876,885 9,016,028 10,200,000 3,300,000 3,300,000 Less: Scheduled CIP Expenditures 2,473,000 3,512,500 11,384,720 10,190,000 1,000,000 90,000 __________ __________ __________ __________ __________ __________Projected Year-End CIP Balance 3,515,622$ 2,880,007$ 511,315$ 521,315$ 2,821,315$ 6,031,315$ 67
WATER FUNDRATE CHANGES & PROJECTION OF CUSTOMER GROWTHCurrent Year ----------------------------------------Projected----------------------------------------FY09 FY10 FY11 FY12 FY13 FY14Rate Changes/Customer GrowthRate Study recommended Rate Increases - - 2.6% 2.6% 2.6% 4.0%______ ______ ______ ______ ______ ______Total Current Year Rate Changes - - 2.6% 2.6% 2.6% 4.0%Customer Growth Rate 4.0% 1.0% 2.0% 2.0% 2.0% 2.0%______ ______ ______ ______ ______ ______Total Percentage Increase in Base Year Revenues 4.0% 1.0% 4.6% 4.6% 4.6% 6.0%Percentage of Rates Dedicated to CIP:Total Percentage of Rates Dedicated to CIP 45.2% 45.2% 45.2% 45.7% 44.9% 43.2%68
WATER FUNDREVENUE PROJECTIONSCurrent Year ----------------------------------------Projected----------------------------------------FY09 FY10 FY11 FY12 FY13 FY14Estimated Total Revenues 6,069,805$ 6,366,824$ 6,676,742$ 7,006,938$ 7,349,643$ 7,643,629$ Current Year Revenues Dedicated to CIP 2,740,811$ 2,876,885$ 3,016,028$ 3,200,000$ 3,300,000$ 3,300,000$ Add: Grants SRF Loan4,000,000 7,000,000 Cash On Hand 2,000,000 __________ __________ __________ __________ __________ __________Total Revenues Dedicated to CIP 2,740,811$ 2,876,885$ 9,016,028$ 10,200,000$ 3,300,000$ 3,300,000$ 69
CITY OF BOZEMANCAPITAL IMPROVEMENTS PROGRAM WATER FUND PROJECTSItem -----------Projected Costs by Fiscal Year----------- Not # Project Title Department/Division Category FY10 FY11 FY12 FY13 FY14 Total ScheduledW03BI-ANNUAL ENGINEERING DESIGN WATER OPERATIONS Project 90,000 90000 180,000 W04WATER BI-ANNUAL UPGRADES WATER OPERATIONS Project 1,100,000 1,000,000 2,100,000 W0722 MG MEMBRANE WATER TREATMENT PLANT WATER PLANT Project 2,000,000 10,000,000 10,000,000 22,000,000 W121 TON TRUCK W/HOIST WATER OPERATIONS Equipment 46,794 46,794 W15METER VAN WATER OPERATIONS Equipment 32,448 32,448 W16BACKHOE WATER OPERATIONS Equipment 107,078 107,078 W171 TON TRUCK (2) WATER OPERATIONS Equipment 36,400 36,400 W20TRANSMISSION MAIN BYPASS VALVES WATER OPERATIONS Project- 75,000 W21GUILLOTINE PIPE SAW WATER OPERATIONS Project 12,000 12,000 W224X4 1/2 TON TRUCK WATER PLANT Equipment 35,000 35,000 WW22LOWER YARD BUILDING WATER OPERATIONS Project 12,500 12,500 WW23MINI EXCAVATOR WATER OPERATIONS Equipment- 25,000 GF99 I5 REPLACEMENT WATER OPERATIONS Equipment 15,000 15,000 PW01SHOPS COMPLEX WATER OPERATIONS Project 1,500,000 1,500,000 PW02LAUREL GLEN SHOP ANNEX WATER OPERATIONS Project 100,000 100,000 Total3,512,500$ 11,384,720$ 10,190,000$ 1,000,000$ 90,000$ 26,177,220$ 100,000$ 70
City of Bozeman Capital Improvements Plan FY09-13
Project Name:
Bi-Annual Engineering Design & Survey
Estimated Cost: $90,000 per year
Project Number: Water Operations – W03 Date
Scheduled:
FY10 &
FY12
Purpose: □ New ■ Replacement ■ Facility □ Equipment
Project
Description:
This item provides for design work to be completed every-other year, in
anticipation of the Bi-Annual System Upgrades. We alternate funding of
design work and construction work within the CIP.
As the Water Operations Division operates the existing system,
maintenance projects become apparent. Given our knowledge of system
conditions today, the following projects are candidates for design funding
and were identified in the Facility Plan:
1. South 8th Avenue
As annual operations occur, other more-urgent projects may be identified
and designed under this project heading.
Alternatives
Considered:
Advantages of
Approving this
Project:
Provides for the design of necessary water system maintenance work.
Estimated New
Future Recurring
Costs:
None
Funding
Sources:
100% Water Utility Fund
71
City of Bozeman Capital Improvements Plan FY09-13
Project Name:
Bi-Annual Water Upgrades
Estimated Cost: $1,000,000 per year
Project Number: Water Operations – W04 Date
Scheduled:
FY11, FY13
Purpose: □ New ■ Replacement ■ Facility □ Equipment
Project
Description:
This item provides for construction to be completed every-other year, after
the Bi-Annual Engineering Design. We alternate funding of design work
and construction work within the CIP.
As the Water Operations Division operates the existing system,
maintenance projects become apparent. Given our knowledge of system
conditions today, the following projects are candidates for construction
funding and were identified in the Facility Plan:
1. South 8th Avenue Water Main
As annual operations occur, other more-urgent projects may be identified,
designed, and constructed under this project heading.
Alternatives
Considered:
Advantages of
Approving this
Project:
Provides for the construction of necessary water system maintenance
work.
Estimated New
Future Recurring
Costs:
Annual Operating & Maintenance Costs: Incremental increases in general
maintenance costs. Current cost estimate of $12,500 per water-main mile
maintained annually.
Funding
Sources:
100% Water Utility Fund
72
City of Bozeman Capital Improvements Plan FY09-13
Project Name:
22MG Membrane Water Treatment Plant
Estimated Cost: $33.2 Million Total
Project Number: Water Plant – W07 Date
Scheduled:
FY08-FY12
Purpose: □ New ■ Replacement ■ Facility □ Equipment
Project
Description:
This new Membrane Filter Treatment Plant is the preferred water treatment
alternative identified in the adopted Water Facility Plan. It is recommended
to be built with an initial configuration providing 22MGD of water treatment
capacity, with future expansion capability to 36MGD. This addresses both
the 10- and 20- year capacity requirement forecast for the City’s water
treatment system.
The current 15MGD WTP equipment is nearing the end of its useful life;
the plant’s direct filtration treatment process, while effective most of the
year, becomes only marginally effective during spring runoff or flash
thunderstorms in the watershed, dropping plant efficiency as low as 70%;
and, rapid population growth and expansion of city water services is
increasing demand for water. The current plant capacity may be exceeded
in as few as five years.
The New Plant will be sited at the existing WTP site in an 18,800 sf
building located directly north of the existing plant. It will include gravity
thickeners, a drying bed building with dual vacuum-assisted beds, triplex
micro strainers and sludge pumps. All these new facilities will easily fit on
the approximately 33-acre parcel of City-owned property on the site.
A 12-month pilot testing phase will need to be completed prior to design
finalization. We are required to have the new plant online by October 2013.
Extensions of that deadline are possible, but we are not relying on the
assumption that they would be granted.
Alternatives
Considered:
The Water Facility Plan considered numerous alternatives for water
treatment. This was identified as the preferred alternative in the adopted
plan.
Advantages of
Approving this
Project:
Planning for increased water supply to meet growing demands and to
replace existing equipment that is at the end of its useful life.
Estimated New
Recurring
Costs:
This plant is estimated to require two new operators, in addition to existing
plant staff. Annual O&M costs = est. $1,735,901 (including existing staff
plus new plant expenses).
Funding
Sources:
FY08 Pilot Testing = $200,000 Total
67% Water Utility Fund = $133,000
33% Water Impact Fees = $67,000
FY09 & FY10 Design = $3,000,000 Total
67% Water Utility Fund = $2,000,000
33% Water Impact Fees = $1,000,000
FY11 & 12 Construction = $30,000,000 Total
67% Water Utility Fund = $20,000,000
33% Water Impact Fees = $10,000,000
73
City of Bozeman Capital Improvements Plan FY09-13
Project Name:
Automated Water Fill Station
Estimated Cost: $330,000
Project Number: Water Operations – W09 Date
Scheduled:
FY09
Purpose: □ New ■ Replacement ■ Facility □ Equipment
Project
Description:
Replacement of the existing water fill station, which is operated on an
“honor system” for water sales. People using cisterns, constructing roads
or borings utilize this method to purchase necessary water from the city.
This recommendation includes a heated building, automated meter, and
24/7 operation of the fill station.
The deficiencies of the existing fill station were noted and a replacement
was recommended in the adopted Water Facility Plan.
Alternatives
Considered:
Continue with existing system, susceptible to theft.
Advantages of
Approving this
Project:
Ensures proper payment for quantity of water sold.
Estimated New
Recurring
Costs:
Unknown at this time. Will be better known when building is designed and
automated meter system selected.
Funding
Sources:
100% Water Utility Fund
74
City of Bozeman Capital Improvements Plan FY09-13
Project Name:
1 Ton Truck With Hoist – Flex Fuel
Estimated Cost: $46,749
Project Number: Water Operations – W12 Date
Scheduled:
FY11
Purpose: □ New ■ Replacement □ Facility ■ Equipment
Project
Description:
This request replaces asset # 2914, a 2001 Dodge 1-ton with 22,374
miles with a 1-ton truck with a hoist. This truck is used daily in both water
and sewer operations to transport personnel and equipment. Average
yearly mileage is 7,000 +. If the truck is replaced in FY 2011, the
approximate mileage will be 70,000.
Flex Fuel Vehicles will be purchased.
Alternatives
Considered:
Keep the trucks and spend maintenance dollars to have truck serviceable.
Advantages of
Approving this
Project:
Advantages to the City for approving this request include savings on fuel.
The new vehicles will improve safety of crews, there would be lower repair
costs and it would help maintain current operations levels.
Estimated New
Recurring
Costs:
Funding
Sources:
100% Water Utility Fund
75
City of Bozeman Capital Improvements Plan FY09-13
Project Name:
Meter Van
Estimated Cost: $33,746
Project Number: Water Operations – W15 Date
Scheduled:
FY10
Purpose: □ New ■ Replacement □ Facility ■ Equipment
Project
Description:
Meter Van is used daily in meter reading and installations.
This van gets high mileage due to the fact it travels every street in our city
once a month taking radio reads. Current mileage is 50,973.
Alternatives
Considered:
Increased cost for repairs and down time.
Advantages of
Approving this
Project:
Minimize down time and increase safety in operation and daily duties.
Estimated New
Recurring
Costs:
Funding
Sources:
100% Water Utility Fund
76
City of Bozeman Capital Improvements Plan FY09-13
Project Name:
4x4 Backhoe
Estimated Cost:
$107,078
Project Number: Water Operations – W16 Date
Scheduled: FY10
Purpose: □ New ■ Replacement □ Facility ■ Equipment
Project
Description:
This vehicle replaces current asset #2633, a 1999 John Deere
backhoe with 2168 hours on it. This hoe is used primarily for
compacting ditches, loading trucks with material and does not have
an extendable boom.
Alternatives
Considered:
Continue to use older vehicle which is becoming unreliable and
costly to maintain.
Advantages of
Approving this
Project:
Increased reliability and safety for staff and water operations.
Estimated New
Future Recurring
Costs:
Annual Operating and Maintenance Costs:
Operating and repair costs are expected to be lower than the
existing vehicle.
Funding
Sources:
100% Water Fund
77
City of Bozeman Capital Improvements Plan FY10-FY14
Project Name:
4x4 Flex Fuel Truck
Estimated Cost:
FY10: $36,400
Project Number: Water Operations – W17 Date
Scheduled: FY10
Purpose: □ New ■ Replacement □ Facility ■ Equipment
Project
Description:
FY10: This vehicle replaces current asset #2647, a 1998 Chevy
4x4 with over 50,000 miles on it. This truck is used in our water
valve operation program and is used in various light duty jobs.
Alternatives
Considered:
Continue to use older vehicle which is becoming unreliable and
costly to maintain.
Advantages of
Approving this
Project:
Increased reliability and safety for staff and water operations.
Estimated New
Future Recurring
Costs:
Annual Operating and Maintenance Costs:
Operating and repair costs are expected to be lower than the
existing vehicle.
Funding
Sources:
100% Water Fund
78
City of Bozeman Capital Improvements Plan FY09-13
Project Name:
Water Valve Operator with Vacuum
Estimated Cost:
$41,000
Project Number: Water Operations – W18 Date
Scheduled: FY09
Purpose: □ New ■ Replacement □ Facility ■ Equipment
Project
Description:
This is a trailer mounted hydraulic operated water valve operator.
This trailer also has a vacuum that can remove debris to gain
access to the valve and eliminate a second visit to vacuum with a
separate piece of equipment.
Alternatives
Considered:
Continue operations with separate vehicles.
Advantages of
Approving this
Project:
Increased efficiency with two functions on the same trailer.
Estimated New
Future Recurring
Costs:
Annual Operating and Maintenance Costs:
Operating and repair costs are expected to be lower operating two
vehicles.
Funding
Sources:
100% Water Fund
79
City of Bozeman Capital Improvements Plan FY09-13
Project Name:
Valve installation and bypass of 18” and 24” water
transmission mains
Estimated Cost:
$67,000.00
Project Number: Water Operations – W19 Date Scheduled: FY09
Purpose: □ New ■ Replacement ■ Facility □ Equipment
Project
Description:
This work involve insertion of 2 line stops on each of the mains and
question and bypassing around the area that the work is being
done. The bypass will allow continuation of water service to town.
Operation crews can then cut in a valve on the isolated portion of
the main.
Alternatives
Considered:
None
Advantages of
Approving this
Project:
We will be able to have the ability to shut down flow from the
Sourdough tank to town. Presently critical valves in these lines do
not operate properly. If there is a break in these lines now there is
a possibility of draining the tank.
Estimated New
Future Recurring
Costs:
Annual Operating and Maintenance Costs:
Once we gain control of these lines we will be inserting new valves
further down the line.
Funding
Sources:
100% Water Fund
80
City of Bozeman Capital Improvements Plan FY10-14
Project Name:
Guillotine Pipe Saw
Estimated Cost:
$12,000.00
Project Number: Water Operations – W21 Date
Scheduled: FY 11
Purpose: □ New ■ Replacement ■ Facility □ Equipment
Project
Description:
The Guillotine Saw that can cut water main pipe safer, quicker
and more accurately than the cut off saws we currently use.
Alternatives
Considered:
Continue to use cut off saws, these saws produce CO in the
ditch which requires air to be blown in the ditch.
Advantages of
Approving this
Project:
Faster, safer water main repairs
Estimated New
Future Recurring
Costs:
Annual Operating and Maintenance Costs:
Depending on use, blades will need to be purchased at
$34.00 each.
Funding
Sources:
100% water fund
81
City of Bozeman Capital Improvements Plan FY10-FY14
Project Name:
4x4 ½ Ton Flex Fuel Truck
Estimated Cost:
$35,000
Project Number: Water Plant – W22 Date
Scheduled: FY11
Purpose: □ New ■ Replacement □ Facility ■ Equipment
Project
Description:
This vehicle replaces current asset #3219, a 2004 Dodge with over
80,000 miles on it. The vehicle will be used on a daily visits to
finished water storage tanks, the Lyman WTP, and for the water
Quality sampling run.
Alternatives
Considered:
Continue to use older vehicle which is becoming unreliable and
costly to maintain.
Advantages of
Approving this
Project:
Increased reliability and safety for staff and water operations.
Estimated New
Future Recurring
Costs:
Annual Operating and Maintenance Costs:
Operating and repair costs are expected to be lower than the
existing vehicle.
Funding
Sources:
100% Water Fund
82
City of Bozeman Capital Improvements Plan FY10-14
Project Name:
IBM i5 Replacement
Estimated Cost:
$90,000
Project Number: Date
Scheduled:
FY11
Purpose: □ New Replacement Facility • Equipment
Project
Description:
Replacement of the mainframe computer that runs the City’s Enterprise-
wide Financial software. This hardware needs to be replaced
approximately every 5 years and was last replaced in FY2006.
This item is critical to our ability to:
• Bill and collect Water/Sewer/Garbage charges.
• Bill and collect Street & Tree Assessments.
• Receipt and track all other money owed/paid to the City.
• Make payments to vendor’s doing business with the City.
• Process payroll for City employees.
• Create financial statements and reports.
• Web-enables payments.
Alternatives
Considered:
• Replace existing Enterprise-wide software with PC-based
software. Brendan spoke with the County IT Director and
received this info related to the County’s system: 1st year cost =
$250,000 (installation, training, hardware) Thereafter,
approximately $30,000 in annual maintenance costs, with a
replacement $10,000 server being required every 5th year.
• Continue to use current hardware for as long as possible.
However, in addition to Financial Applications, the IBM server also
hosts SunGard HTE applications for Building Permits, Code
Enforcement, and Planning & Zoning. All these additional users
and all this additional data are going to increasingly tax the
servers resources to the point where system performance and
customer service response time will probably be affected.
Advantages of
Approving this
Project:
Unnecessary system down-time is avoided when critical hardware is
replaced in a timely fashion.
Estimated New
Future Recurring
Costs:
Annual Operating and Maintenance Costs: No significant changes in
system operations or maintenance costs are anticipated.
Funding
Sources:
Water Fund: $15,000
Sewer Fund: $15,000
Solid Waste Fund: $15,000
General Fund: $45,000
Project Rating: 42
83
City of Bozeman Capital Improvements Plan FY10-14
Criteria Rating Notes This
Project’s
Score
1. Level of Service Up to 20
pts
20 - Corrects a health or safety hazard
or prevents a critical breakdown of an
existing city facility or equipment.
15 - Repairs, rehabilitates, or replaces
physically deteriorated or functionally
obsolete existing city facility or
equipment.
10 - Brings an area up to the basic
level of service as identified in an
adopted city wide plan.
5 – Expands an approved City
service.
0 – Other.
15
2. Operating Budget
Impact
Up to 10
pts
10 - Provides a significant decrease in
city operating and/or maintenance
expenses.
5 – Has a neutral or small impact on
operating and/or maintenance
expenses.
0 – Provides a significant increase in
city operating requirements.
5
3. Service Area Up to 10
pts
10 – Direct Benefit to entire city.
5 – Direct benefit to roughly half city
or indirect benefit to entire city.
2 – Direct benefit to small area of the
city or indirect benefit to several areas.
7
4. Departmental
Priority
Up to 10
pts
10 – Critical to Department’s Mission
7 – High
3 – Moderate
0 – Questionable/Very Difficult to
Complete
10
5. Commission
Work Plan
Up to 10
pts
10 – Identified project in Adopted
Commission Work Plan
5 – Contributes to an indentified
project in the Adopted Commission
Work Plan.
0 – Not identified in Adopted
Commission Work Plan.
0
6. Municipal Climate
Protection (Municipal
Climate Action Plan
– MCAP)
Up to 5 pts 5 – Is recommended by MCAP and
will accomplish a stated MCAP goal.
3 – Will assist in meeting MCAP goal.
0 – No relation to MCAP.
0
7. Seasonal Use Up to 5 pts 5 – Year Round.
3 – Six to Eleven months per year.
1 – Five or fewer months per year.
5
TOTAL Up to 70
pts.
42
84
City of Bozeman Capital Improvements Plan FY10-14
Project
Name:
Shops Complex – Phase I
Estimated
Cost:
Total Cost Unknown.
$1.5 Million improvements to benefit the Water Department operations in
FY10.
Project
Number:
Public Works – PW01 Date
Scheduled:
FY10 $1.5M
Remainder
FY11-14
Purpose: □ New ■ Replacement ■ Facility □ Equipment
Project
Description:
This project consists of identifying a site (ideally, among currently owned
City properties) for the phased construction and relocation of all City Shops
facilities.
The present shops complex is built in a residential neighborhood and it is
estimated to have twice the employees working out of the complex than
what it was designed for. The present complex has high traffic loads. With
the public water fill station there, driving and walking in the complex is
dangerous at high traffic periods.
Over the past few years, a number of solutions to this issue have been
pursued. The Cardinal Distributing property seemed an ideal long-term
solution, but fell through due to Montana Rail Link’s refusal to lease land to
the City. Because of the complexities of trying to find another suitable
option for this large and diverse group of facilities, we are not able to
quantify all of the costs or project phases at this time.
Alternatives
Considered:
Build a smaller satellite facility for high traffic volume operations; leave low
traffic operations at existing facility.
Advantages of
Approving this
Project:
Constructing the complex in phases will allow additional time to secure
funding for other phases, lessen traffic at the current site, possibly relocate
the existing water fill site, and free up space in the current complex to
alleviate crowding for other divisions.
Estimated New
Recurring
Costs:
Annual Operating & Maintenance Costs: Unknown at this point.
Funding
Sources:
Phase I = $1.5 Million Water Fund (Included in current rate study.)
Other Phases = Wastewater Fund, Street Maintenance Fund, Forestry
Fund, Solid Waste Fund, General Fund (Parks)
The existing site (purchased by the General Fund) would be sold once the
final phase of the project is completed. This could pay for some of the
General Fund’s financial obligations for the project.
85
City of Bozeman Capital Improvements Plan FY10-14
Project Name:
Laurel Glen Shops Annex
Estimated Cost:
$200,000.00
Project Number: Public Works – PW02 Date
Scheduled: FY12
Purpose: □ New ■ Replacement ■ Facility □ Equipment
Project
Description:
To upgrade current facility which is basically a pole barn with
electricity to a facility which can house vehicles and
personnel. This would include floor, paving, water/sewer
services, offices, sidewalks.
Alternatives
Considered:
Advantages of
Approving this
Project:
Fuel savings in having vehicles stationed on the west side of
the city, quicker response times to the surrounding area,
frees up room at existing shop complex.
Estimated New
Future Recurring
Costs:
Annual Operating and Maintenance Costs:
$5,000.00 to $6,000.00
Funding
Sources:
50% Water Fund
50% Sewer Fund
86
WASTEWATER FUNDSUMMARY OF CIP BALANCES, REVENUES AND EXPENDITURESCIP FY10-14Current Year ----------------------------------------Projected----------------------------------------FY09 FY10 FY11 FY12 FY13 FY14Projected Beginning CIP Balance 5,181,000$ 5,883,550$ 2,183,550$ 568,550$ 467,998$ 1,449,116$ Add: Revenues Dedicated to CIP 1,502,550 10,472,424 12,554,180 1,234,213 1,234,213 1,234,213 Less: Scheduled CIP Expenditures 800,000 14,172,424 14,169,180 1,334,765 253,094 1,187,963 __________ __________ __________ __________ __________ __________Projected Year-End CIP Balance 5,883,550$ 2,183,550$ 568,550$ 467,998$ 1,449,116$ 1,495,366$ 87
WASTEWATER FUNDRATE CHANGES & PROJECTION OF CUSTOMER GROWTHCurrent Year ----------------------------------------Projected----------------------------------------FY09 FY10 FY11 FY12 FY13 FY14Rate Changes/Customer Growth Rate Study Recommended Rate Increases 9.0% 12.5% 12.5% 12.5% 4.0% 4.0% _____ _____ _____ _____ _____ _____Total Current Year Rate Changes 9.0% 12.5% 12.5% 12.5% 4.0% 4.0%Customer Growth Rate 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%_____ _____ _____ _____ _____ _____Total Percentage Increase in Base Year Revenues 11.0% 14.5% 14.5% 14.5% 6.0% 6.0%Percentage of Rates Dedicated to CIP:Total Percentage of Rates Dedicated to CIP 30.4% 23.3% 25.1% 17.5% 16.9% 16.2% 88
WASTEWATER FUNDREVENUE PROJECTIONSCurrent Year ----------------------------------------Projected----------------------------------------FY09 FY10 FY11 FY12 FY13 FY14Estimated Total Revenues 4,939,487$ 5,556,923$ 6,251,538$ 7,032,981$ 7,314,300$ 7,606,872$ Current Year Revenues Dedicated to CIP 1,502,550$ 1,297,424$ 1,569,180$ 1,234,213$ 1,234,213$ 1,234,213 Add: Grants SRF Loan - Net of Issuance Costs/Reserve 5,325,000 9,175,000 10,985,000 __________ __________ __________ __________ __________ __________Total Revenues Dedicated to CIP 6,827,550$ 10,472,424$ 12,554,180$ 1,234,213$ 1,234,213$ 1,234,213 89
CITY OF BOZEMANCAPITAL IMPROVEMENTS PROGRAM WASTEWATER FUNDItem -------------------------------Projected Costs by Fiscal Year------------------------------- Not # Project Title Department/Division Category FY10 FY11 FY12 FY13 FY14 Total ScheduledWW02 1 TON TRUCK W/ HOIST WW OPERATIONS EQUIPMENT 45,000 45,000 90,000 WW03 3/4 TON 4X4 PICKUP WW OPERATIONS EQUIPMENT 37,856 - 37,856 WW04 BNR PLANT CONSTRUCTION WW PLANT PROJECT 14,066,324 14,066,324 - 28,132,648 WW07 BI-ANNUAL ENGINEERING DESIGN WW OPERATIONS PROJECT 126,547 136,873 263,420 WW08 WASTEWATER BI-ANNUAL UPGRADES WW OPERATIONS PROJECT - 800,000 912,490 1,712,490 WW17 TELEVISION VAN REPLACEMENT WWOPERATIONS EQUIPMENT 263,218 263,218 WW20 DUMP TRUCK WWOPERATIONS EQUIPMENT 93,600 93,600 187,200 WW21 FLUSHER TRUCK WWOPERATIONS EQUIPMENT 253,094 253,094 WW22 INSULATION OF LOWER YARD BUILDING WWOPERATIONS PROJECT 12,500 - 12,500 WW23 MINI EXCAVATOR WWOPERATIONS EQUIPMENT- 25,000 WW24 LATCHET LAB EQUIPMENT WW PLANT EQUIPMENT 50,000 50,000 WW25 LIFTING VEHICLE WW PLANT EQUIPMENT- 87,000 PW01 SHOPS COMPLEX WWOPERATIONS PROJECT- UNKNOWNPW02 LAUREL GLEN SHOPS ANNEX WWOPERATIONS PROJECT 100,000 100,000 GF99 i5 REPLACEMENT WWOPERATIONS EQUIPMENT 15,000 15,000 Total14,172,424$ 14,169,180$ 1,334,765$ 253,094$ 1,187,963$ 31,117,427$ 112,000$ 90
City of Bozeman Capital Improvements Plan FY10-14
Project Name:
1 Ton Flex Fuel Truck with Hoist
Estimated Cost: $45,000 each, FY12 & FY14
Project Number: Wastewater Operations –
WW02
Date
Scheduled:
FY12 &
FY14
Purpose: □ New ■ Replacement □ Facility ■ Equipment
Project
Description:
FY11: Replaces a 2000 1-ton truck with a hoist. At the time of
replacement, this truck will be 11 years old with 60,000 miles.
FY14: Replaces a 2004 Ford F250, asset #3232.
These trucks are used daily in both water and sewer operations to
transport personnel and equipment.
The existing truck will not be traded in; it will be utilized as a back-up
vehicle when needed.
Alternatives
Considered:
Keep the truck and spend maintenance dollars to have truck serviceable.
Advantages of
Approving this
Project:
Advantages to the City for approving this request include savings on fuel
and emissions. The new vehicles will improve safety of crews, there would
be lower repair costs and it would help maintain current operations levels.
Estimated New
Future Recurring
Costs:
Annual Operating Costs:
Annual Maintenance Costs:
Other Non-Capital Costs: none.
Total:
Funding
Sources:
100% Wastewater Utility Revenue
91
City of Bozeman Capital Improvements Plan FY10-14
Project Name:
¾ Ton Flex Fuel Pickup Truck
Estimated Cost: $37,856
Project Number: Wastewater Operations –
WW03
Date
Scheduled:
FY11
Purpose: □ New ■ Replacement □ Facility ■ Equipment
Project
Description:
This is to replace asset # 2916 which is a 2001 Dodge Dakota ½ ton
pickup which has 40,812 miles. At the time replaced, this vehicle will be 9
years old and have approx 73,000 miles.
This truck is used to transport operations crews performing one call
locates. Crews respond to over 5,000 calls a year for locate requests.
The existing vehicle will be traded in, to reduce the total purchase price.
Alternatives
Considered:
Continue to use older vehicle which is extremely small for the average
water department employee.
Advantages of
Approving this
Project:
Advantages to the City for approving this request include continued
reliability in water operations. Repair and maintenance costs will be
minimized with replacement
Estimated New
Future Recurring
Costs:
Annual Operating Costs:
Annual Maintenance Costs:
Other Non-Capital Costs: none.
Total:
Funding
Sources:
100% Wastewater Utility Revenue
92
City of Bozeman Capital Improvements Plan FY10-14
Project
Name:
Water Reclamation Facility (WRF) Construction –
Phase I
Estimated
Cost:
$53.8 Million – Total, Phase I
Project
Number:
Wastewater Plant – WW04 Date
Scheduled:
FY07 – FY12
Purpose: □ New ■ Replacement ■ Facility □ Equipment
Project
Description:
The existing plant has reached its original design capacity of 5.8 MGD. Current
organic loadings (lbs of BOD) now exceed the plant’s original design capacity
for BOD by more than 20%. These critical loading parameters clearly point to
the need for a major facility expansion.
The City’s current MPDES (Montana Pollution Discharge Elimination System)
permit includes a compliance schedule that requires us to begin removing total
nitrogen and total phosphorous by September 2011 to meet interim Nutrient
Standards set by the State Department of Environmental Quality. In order to
meet the requirements of this schedule, the city needs to move forward with the
construction of a WRF facility, as our existing facility is not designed to remove
nitrogen & phosphorous.
Bids received for the WRF facility on October 1, 2008 put the total project costs
at a low of $65.7 Million (low bid) to a high of over $80.5 Million (high bid.)
Because the low bid was so much higher than our estimate, the project has
been scaled back but will still meet our permit requirements established for
September 2011. Total adjusted project price is now estimated at $53.8 Million.
Alternatives
Considered:
A variety of treatment technologies and alternatives are presented in the
January 2006 Wastewater Facilities Plan.
Alternative funding scenarios have been prepared, exploring the rates
necessary to cover plant costs and differing amounts of impact fee dollars
available for construction.
Advantages
of
Approving
this Project:
Major capital expansion of the Bozeman WRF will enable the City to meet its
ever growing demand for wastewater services and still produce a high quality
effluent that is in full compliance with the City’s MPDES discharge permit.
Expansion of the Bozeman WRF is consistent with the City’s long-term need to
accommodate rapid growth and economic development in the Gallatin Valley.
Estimated
Future
Recurring
Costs:
Annual Operating & Maintenance Costs: Similar to existing plant operations
costs. The Facilities Plan estimates a total of $1,439,360 annually including all
labor, power, chemicals, equipment maintenance, and equipment replacement.
Funding
Sources:
FY07 Design: Total $3.9 Million
67% Wastewater Utility Cash = $2.33 Million
33% Wastewater Impact Fee Cash = $1.57 Million
FY09 & FY10 & FY11 Construction: Total $49.9 Million
67% Wastewater Utility = $33.5 Million
33% Wastewater Impact Fee Eligible = $16.4 Million Eligible*
*We anticipate having a minimum of $13.1 Million available from Impact Fees
through the end of the construction period. Impact fee collections during the
construction period will be dedicated to the project. The remainder of eligible
construction costs would be dedicated to debt service on the Utility Revenue
Bonds, as it is collected in the Impact Fee Fund.
93
City of Bozeman Capital Improvements Plan FY10-14
Project Name:
Bi-Annual Engineering Design
Estimated Cost: $126,547 in FY12 & 136,873 in FY14
Project Number: Wastewater Operations –
WW07
Date
Scheduled:
FY12 &
FY14
Purpose: □ New ■ Replacement ■ Facility □ Equipment
Project
Description:
This item provides for design work to be completed every-other year, in
anticipation of the Bi-Annual System Upgrades. We alternate funding of
design work and construction work within the CIP.
As the Wastewater Operations Division televises (views) the existing
system, maintenance projects become apparent.
As annual televising continues, other more-urgent projects may be
identified and designed under this project heading.
Alternatives
Considered:
Advantages of
Approving this
Project:
Provides for design of necessary sewer system maintenance work.
Estimated New
Future Recurring
Costs:
None
Funding
Sources:
100% Wastewater Utility Fund
95
City of Bozeman Capital Improvements Plan FY10-14
Project Name:
Annual Wastewater Upgrades
Estimated Cost: $800,000 in FY12 & $912,490 in FY14
Project Number: Wastewater Operations –
WW08
Date
Scheduled:
FY12 &
FY14
Purpose: □ New ■ Replacement ■ Facility □ Equipment
Project
Description:
This item provides for construction to be completed every-other year, after
the Bi-Annual Engineering Design. We alternate funding of design work
and construction work within the CIP.
As the Wastewater Operations Division televises (views) the existing
system, maintenance projects become apparent.
As annual televising continues, other more-urgent projects may be
identified, designed, and constructed under this project heading.
Alternatives
Considered:
Advantages of
Approving this
Project:
Provides for the construction of necessary sewer system maintenance
work.
Estimated New
Future Recurring
Costs:
None.
Funding
Sources:
100% Wastewater Utility Fund
96
City of Bozeman Capital Improvements Plan FY10-14
Project Name:
Television Van
Estimated Cost: $263,218
Project Number: Wastewater Operations –
WW17
Date
Scheduled:
FY12
Purpose: □ New ■ Replacement □ Facility ■ Equipment
Project
Description:
Replacement for the existing Sewer TV Van, routinely replaced every 5
years. Current Van purchased in FY07.
This van should be equipped with all modifications to put into service for
video inspecting our existing and newly constructed sewage collection
infrastructure. The van will allow us to travel out of the sewer main and
not only inspect the city’s portion of the service but the homeowner’s side
and even into the structure itself. This is critical in identifying infiltration
issues and helps identify homes that have sump pumps dumping into our
system. This can be done from the street and service workers would not
have to enter private residences to televise back out to the main.
Alternatives
Considered:
To attempt to maintain our existing TV van, this is becoming obsolete and
outdated with the present and upcoming technology.
Advantages of
Approving this
Project:
Provides for the timely replacement of critical maintenance equipment.
Estimated New
Future Recurring
Costs:
Annual Operating Costs:
Annual Maintenance Costs:
Total:
Funding
Sources:
100% Wastewater Utility Revenues -
Approx. 5 year cost recover through TV Line Service Fee, currently 80
cents per foot inspected.
97
City of Bozeman Capital Improvements Plan FY10-14
Project Name:
Dump Truck
Estimated Cost:
$93,600
Project Number: Wastewater Operations –
WW20
Date
Scheduled:
FY10 &
FY14
Purpose: □ New ■ Replacement □ Facility ■ Equipment
Project
Description:
FY10: Replaces current asset #1783, a 1995 Ford Dump Truck
with over 23,172 miles on it.
FY14: Replaces current asset #3157, a 2003 Sterling Dump Truck.
These trucks could be used by the Street Department to haul snow.
Alternatives
Considered:
Continue to use older vehicle which is becoming unreliable and
costly to maintain.
Advantages of
Approving this
Project:
Increased reliability and safety for staff and water operations.
Estimated New
Future Recurring
Costs:
Annual Operating and Maintenance Costs: Operating and repair
costs are expected to be lower than the existing vehicle.
Funding
Sources:
100% Wastewater Fund
98
City of Bozeman Capital Improvements Plan FY10-14
Project Name:
Sewer Flusher Truck with TV capability
Estimated Cost: $253,094
Project Number: Wastewater Operations –
WW21
Date
Scheduled: FY13
Purpose: □ New ■ Replacement □ Facility ■ Equipment
Project
Description:
This vehicle replaces current asset #3031, a 2002 Freightliner with
over 20,845 miles on it.
This truck is used to flush over 200 miles of sewer main every year
and is a critical piece of machinery for the sewer department.
This unit will have a TV camera which will allow us to see
objects/defects that cause the flusher to stop. This camera has
become an industry standard piece of equipment.
Alternatives
Considered:
Continue to use older vehicle which will be costly to maintain.
Advantages of
Approving this
Project:
Increased reliability and safety for staff and wastewater operations.
Camera will eliminate need for follow up TV inspection by the TV
van.
Estimated New
Future Recurring
Costs:
Annual Operating and Maintenance Costs: Operating and repair
costs are expected to be lower than the existing vehicle.
Funding
Sources:
100% Wastewater utility fund
99
City of Bozeman Capital Improvements Plan FY10-14
Project Name:
Insulation/heat for lower yard storage building
Estimated Cost:
$25,000 Total ($12,500 to each fund)
Project Number: Wastewater Operations –
WW22
Date
Scheduled: FY10
Purpose: □ New ■ Replacement ■ Facility □ Equipment
Project
Description:
This work will convert our cold storage building into a heated
storage area.
Alternatives
Considered:
Continue to use older building which is over 50 years old which is
becoming unreliable and costly to maintain.
Advantages of
Approving this
Project:
Larger area to keep vehicles and equipment in a heated area.
Estimated New
Future Recurring
Costs:
Annual Operating and Maintenance Costs: Operating and repair
costs are expected to be lower than the existing building.
Funding
Sources:
50% Water Fund
50% Wastewater Fund
100
City of Bozeman Capital Improvements Plan FY10-14
Project Name:
Mini Excavator
Estimated Cost: $50,000 Total ($25,000 to each fund)
Project Number: Wastewater Operations -
WW23
Date
Scheduled: Unscheduled
Purpose: ■ New □ Replacement □ Facility ■ Equipment
Project
Description:
This piece of equipment due to it’s small size, is very useful in
excavating where the backhoe cannot fit or due to it’s weight will
damage sidewalks and lawns. Could be used by the Street
Department for excavating storm sewers.
Alternatives
Considered:
Continue to rent this piece of equipment.
Advantages of
Approving this
Project:
Give’s both the Water and Street Departments a piece of equipment
that can work in small spaces
Estimated New
Future
Recurring
Costs:
Annual Operating and Maintenance Costs: Operating and repair
costs are expected to be lower than a normal size backhoe.
Funding
Sources:
50% Water Fund
50% Wastewater Fund
101
City of Bozeman Capital Improvements Plan FY10-14
Project Name:
IBM i5 Replacement
Estimated Cost:
$90,000
Project Number: Date
Scheduled:
FY11
Purpose: □ New Replacement Facility • Equipment
Project
Description:
Replacement of the mainframe computer that runs the City’s Enterprise-
wide Financial software. This hardware needs to be replaced
approximately every 5 years and was last replaced in FY2006.
This item is critical to our ability to:
• Bill and collect Water/Sewer/Garbage charges.
• Bill and collect Street & Tree Assessments.
• Receipt and track all other money owed/paid to the City.
• Make payments to vendor’s doing business with the City.
• Process payroll for City employees.
• Create financial statements and reports.
• Web-enables payments.
Alternatives
Considered:
• Replace existing Enterprise-wide software with PC-based
software. Brendan spoke with the County IT Director and
received this info related to the County’s system: 1st year cost =
$250,000 (installation, training, hardware) Thereafter,
approximately $30,000 in annual maintenance costs, with a
replacement $10,000 server being required every 5th year.
• Continue to use current hardware for as long as possible.
However, in addition to Financial Applications, the IBM server also
hosts SunGard HTE applications for Building Permits, Code
Enforcement, and Planning & Zoning. All these additional users
and all this additional data are going to increasingly tax the
servers resources to the point where system performance and
customer service response time will probably be affected.
Advantages of
Approving this
Project:
Unnecessary system down-time is avoided when critical hardware is
replaced in a timely fashion.
Estimated New
Future Recurring
Costs:
Annual Operating and Maintenance Costs: No significant changes in
system operations or maintenance costs are anticipated.
Funding
Sources:
Water Fund: $15,000
Sewer Fund: $15,000
Solid Waste Fund: $15,000
General Fund: $45,000
Project Rating: 42
102
City of Bozeman Capital Improvements Plan FY10-14
Criteria Rating Notes This
Project’s
Score
1. Level of Service Up to 20
pts
20 - Corrects a health or safety hazard
or prevents a critical breakdown of an
existing city facility or equipment.
15 - Repairs, rehabilitates, or replaces
physically deteriorated or functionally
obsolete existing city facility or
equipment.
10 - Brings an area up to the basic
level of service as identified in an
adopted city wide plan.
5 – Expands an approved City
service.
0 – Other.
15
2. Operating Budget
Impact
Up to 10
pts
10 - Provides a significant decrease in
city operating and/or maintenance
expenses.
5 – Has a neutral or small impact on
operating and/or maintenance
expenses.
0 – Provides a significant increase in
city operating requirements.
5
3. Service Area Up to 10
pts
10 – Direct Benefit to entire city.
5 – Direct benefit to roughly half city
or indirect benefit to entire city.
2 – Direct benefit to small area of the
city or indirect benefit to several areas.
7
4. Departmental
Priority
Up to 10
pts
10 – Critical to Department’s Mission
7 – High
3 – Moderate
0 – Questionable/Very Difficult to
Complete
10
5. Commission
Work Plan
Up to 10
pts
10 – Identified project in Adopted
Commission Work Plan
5 – Contributes to an indentified
project in the Adopted Commission
Work Plan.
0 – Not identified in Adopted
Commission Work Plan.
0
6. Municipal Climate
Protection (Municipal
Climate Action Plan
– MCAP)
Up to 5 pts 5 – Is recommended by MCAP and
will accomplish a stated MCAP goal.
3 – Will assist in meeting MCAP goal.
0 – No relation to MCAP.
0
7. Seasonal Use Up to 5 pts 5 – Year Round.
3 – Six to Eleven months per year.
1 – Five or fewer months per year.
5
TOTAL Up to 70
pts.
42
103
City of Bozeman Capital Improvements Plan FY10-14
Project
Name:
Shops Complex – Phase I
Estimated
Cost:
Total Cost Unknown.
$1.5 Million improvements to benefit the Water Department operations in
FY10.
Project
Number:
Public Works – PW01 Date
Scheduled:
FY10 $1.5M
Remainder
FY11-14
Purpose: □ New ■ Replacement ■ Facility □ Equipment
Project
Description:
This project consists of identifying a site (ideally, among currently owned
City properties) for the phased construction and relocation of all City Shops
facilities.
The present shops complex is built in a residential neighborhood and it is
estimated to have twice the employees working out of the complex than
what it was designed for. The present complex has high traffic loads. With
the public water fill station there, driving and walking in the complex is
dangerous at high traffic periods.
Over the past few years, a number of solutions to this issue have been
pursued. The Cardinal Distributing property seemed an ideal long-term
solution, but fell through due to Montana Rail Link’s refusal to lease land to
the City. Because of the complexities of trying to find another suitable
option for this large and diverse group of facilities, we are not able to
quantify all of the costs or project phases at this time.
Alternatives
Considered:
Build a smaller satellite facility for high traffic volume operations; leave low
traffic operations at existing facility.
Advantages of
Approving this
Project:
Constructing the complex in phases will allow additional time to secure
funding for other phases, lessen traffic at the current site, possibly relocate
the existing water fill site, and free up space in the current complex to
alleviate crowding for other divisions.
Estimated New
Recurring
Costs:
Annual Operating & Maintenance Costs: Unknown at this point.
Funding
Sources:
Phase I = $1.5 Million Water Fund (Included in current rate study.)
Other Phases = Wastewater Fund, Street Maintenance Fund, Forestry
Fund, Solid Waste Fund, General Fund (Parks)
The existing site (purchased by the General Fund) would be sold once the
final phase of the project is completed. This could pay for some of the
General Fund’s financial obligations for the project.
104
City of Bozeman Capital Improvements Plan FY10-14
Project Name:
Laurel Glen Shops Annex
Estimated Cost:
$200,000.00
Project Number: Public Works – PW02 Date
Scheduled: FY12
Purpose: □ New ■ Replacement ■ Facility □ Equipment
Project
Description:
To upgrade current facility which is basically a pole barn with
electricity to a facility which can house vehicles and
personnel. This would include floor, paving, water/sewer
services, offices, sidewalks.
Alternatives
Considered:
Advantages of
Approving this
Project:
Fuel savings in having vehicles stationed on the west side of
the city, quicker response times to the surrounding area,
frees up room at existing shop complex.
Estimated New
Future Recurring
Costs:
Annual Operating and Maintenance Costs:
$5,000.00 to $6,000.00
Funding
Sources:
50% Water Fund
50% Sewer Fund
105