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Home My WebLink AboutAdopt the Wastewater Fund within the Capital Improvements Plan.pdf Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Chris Kukulski, City Manager Anna Rosenberry, Finance Director SUBJECT: Adoption of the Capital Improvements Plan (CIP) for 2012-2016 – WASTEWATER FUND Item Type: Consent MEETING DATE: December 13, 2010 RECOMMENDATION: Adopt the attached Wastewater Fund Capital Improvements Plan for 2012-2016. BACKGROUND: On November 29, 2010, we presented the attached Wastewater Fund capital improvement plan. At that time, public comment and commissioner input was sought. As a result of that meeting, we are offering the attached schedule for adoption, which contains no changes from the original presentation. FISCAL EFFECTS: Once adopted, the Capital Improvements Plan becomes the basis of the City Manager’s Recommended Budget for FY12. ALTERNATIVES: As suggested by the City Commission. Report compiled on: December 6, 2010 142 Wastewater FundCapital Improvement PlanFinancial Summary Current YearFY11 FY12 FY13 FY14 FY15 FY16Projected Beginning Reserve Balance Dedicated to CIP‐$ (7,840)$ 72,926$ 957,109$ 1,250,878$ 2,291,196$ Plus: Wastewater Revenues Dedicated to CIP 1,190,160$ 1,237,766$ 1,287,277$ 1,338,768$ 1,392,319$ 1,448,012$ Plus: WRF Loan Proceeds 20,800,000$ Less: Scheduled CIP Project Costs (21,998,000)$ (1,157,000)$ (403,094)$ (1,045,000)$ (352,000)$ (1,200,000)$ Projected Year‐End Cash Dedicated to CIP (7,840)$ 72,926$ 957,109$ 1,250,878$ 2,291,196$ 2,539,208$ Assumptions Made for Revenue Estimates: Current YearFY11 FY12 FY13 FY14 FY15 FY16Estimated Annual Wastewater Revenues 5,400,000$ 5,950,800$ 6,188,832$ 6,436,385$ 6,693,841$ 6,961,594$ Estimated Annual Increase 10.2% 4% 4% 4% 4% 4%Total Estimated Revenues 5,950,800$ 6,188,832$ 6,436,385$ 6,693,841$ 6,961,594$ 7,240,058$ Current Revenues Dedicated to CIP % 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% Plus: Increase Dedicated to Curb Replacements 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Total % Dedicated to CIP 20.0% 20.0% 20.0% 20.0% 20.0% 20.0%ProjectedProjectedTotal Estimated Revenues Dedicated to CIP1,190,160$ 1,237,766$ 1,287,277$ 1,338,768$ 1,392,319$ 1,448,012$ 6,000,0005,000,0004,000,0003,000,0002,000,0001,000,0000Wastewater Fund Projects & Equipment 143 CIP PROJECT FUNDPROJ.DEPARTMENTPROJECT NAMEFY12FY13FY14FY16UnscheduledFY15Wastewater FundPW01WW OPSSHOPS FACILITY EXPANSION PLAN$10,000PW02WW OPSLAUREL GLEN SHOP ANNEX ‐ Phase 1$100,000WW02WW OPS1 TON TRUCK WITH HOIST$45,000$45,000WW03WW OPS1/2 TON FLEX FUEL TRUCK$25,000WW07WW OPSENGINEERING/DESIGN for BIANNUAL WASTEWATER SYSTEM UPGRADES$90,000$90,000WW08WW OPSWASTEWATER SYSTEM UPGRADES BIANNUAL$800,000$1,000,000$1,200,000WW17WW OPSTV VAN (REFURBISH EQUIPMENT)$167,000WW21WW OPSFLUSHER TRUCK$253,094WW23WW OPSMINI EXCAVATOR & TRAILER$25,000WW26WW OPSFLUSHER VAC TRUCK REPLACEMENT$262,000WW27WRF PLANTSKID STEER VEHICLE$45,000WW28WRF PLANTDESIGN PHASE II ‐ WRF PLANT IMPROVEMENTS$2,615,000WW29WRF PLANTENERGY RECOVERY (METHANE CO‐GENERATION) PROJECT$2,600,000Summary for Wastewater Fund (13 items)Totals by year:$1,157,000 $403,094 $1,045,000 $352,000$1,200,000$5,215,000FY12FY13FY14FY15FY16Unscheduled144 CIP Project Fund Wastewater Fund PROJECT NUMBER PW01 DEPARTMENT WW OPS PROJECT NAME SHOPS FACILITY EXPANSION PLAN FY12 FY13 $10,000 FY14 FY15 FY16 Unscheduled DESCRIPTION OF PROJECT The construction of the new Vehicle Maintenance Shop at the Lower Yards on Rouse Avenue in FY10/FY11 was Phase I in expanding and improving our ability to service equipment, store vehicles, and provide work space for Public Works, Parks, and Facilitiy services. Questions remain about the long-term plan for construction, location, and expansion for: Streets, Sign & Signal, Forestry, Water/Sewer Operations, Solid Waste Collection & Recycling, Facilities, and Parks & Cemetery departments. This project would develop a master plan. In scheduling this project, we are recommending waiting until after the Vehicle Maintenance Division is relocated to its new shop and the interior improvements are made to the Shop at Rouse and Tamarack Street for the remaining divisions. ALTERNATIVES CONSIDERED ADVANTAGES OF APPROVAL ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED FUNDING SOURCES From related divisions: General Fund 20% ($10,000), Water Fund 20% ($10,000), Wastewater Fund 20% ($10,000), Street Maintenance Fund 20% ($10,000), Solid Waste Fund 20% ($10,000). New Replacement Equipment Project 145 CIP Project Fund Wastewater Fund PROJECT NUMBER PW02 DEPARTMENT WW OPS PROJECT NAME LAUREL GLEN SHOP ANNEX - Phase 1 FY12 $100,000 FY13 FY14 FY15 FY16 Unscheduled DESCRIPTION OF PROJECT To upgrade current facility which is basically an unheated pole barn with electricity to a insulated heated facility which can house vehicles. We see this facility operating as an important geographic storage area, as it is located on the opposite side of town from the current Shops location. In the first phase installation of insulation and heat, landscaping, sidewalks, well for irrigation and paving. Future phases may include finishing for office and restrooms, automated water fill station, etc. ALTERNATIVES CONSIDERED ADVANTAGES OF APPROVAL 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. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Annual Operating and Maintenance Costs: $5,000.00 to $6,000.00 FUNDING SOURCES 50% Water Fund 50% Sewer Fund New Replacement Equipment Project 146 CIP Project Fund Wastewater Fund PROJECT NUMBER WW02 DEPARTMENT WW OPS PROJECT NAME 1 TON TRUCK WITH HOIST FY12 $45,000 FY13 FY14 $45,000 FY15 FY16 Unscheduled DESCRIPTION OF PROJECT FY12: Replaces a 2000 1-ton truck with a hoist. At the time of replacement, this truck will be 11 years old. FY14: Replaces a 2004 Ford F250, asset #3232. At the time of replacement, this truck will be over 10 years old. 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 APPROVAL 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. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED FUNDING SOURCES 100% Wastewater Utility Revenue New Replacement Equipment Project 147 CIP Project Fund Wastewater Fund PROJECT NUMBER WW03 DEPARTMENT WW OPS PROJECT NAME 1/2 TON FLEX FUEL TRUCK FY12 FY13 $25,000 FY14 FY15 FY16 Unscheduled DESCRIPTION OF PROJECT This is to replace asset # 2916 which is a 2001 Dodge Dakota ½ ton pickup. At the time replaced, this vehicle will be 12 years old and have approx 100,000 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 APPROVAL Advantages to the City for approving this request include continued reliability in water operations. Repair and maintenance costs will be minimized with replacement ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED FUNDING SOURCES 100% Wastewater Fund New Replacement Equipment Project 148 CIP Project Fund Wastewater Fund PROJECT NUMBER WW07 DEPARTMENT WW OPS PROJECT NAME ENGINEERING/DESIGN for BIANNUAL WASTEWATER SYSTEM UPGRADES FY12 FY13 $90,000 FY14 FY15 $90,000 FY16 Unscheduled DESCRIPTION OF PROJECT 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 APPROVAL Provides for design of necessary sewer system maintenance work. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED FUNDING SOURCES 100% Wastewater Utility Fund New Replacement Equipment Project 149 CIP Project Fund Wastewater Fund PROJECT NUMBER WW08 DEPARTMENT WW OPS PROJECT NAME WASTEWATER SYSTEM UPGRADES BIANNUAL FY12 $800,000 FY13 FY14 $1,000,000 FY15 FY16 $1,200,000 Unscheduled DESCRIPTION OF PROJECT 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 APPROVAL Provides for the construction of necessary sewer system maintenance work. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED FUNDING SOURCES 100% Wastewater Utility Fund New Replacement Equipment Project 150 CIP Project Fund Wastewater Fund PROJECT NUMBER WW17 DEPARTMENT WW OPS PROJECT NAME TV VAN (REFURBISH EQUIPMENT) FY12 $167,000 FY13 FY14 FY15 FY16 Unscheduled DESCRIPTION OF PROJECT Refurbishment of 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. Replace the TV van and all the equipment (as scheduled in previous CIP.) ADVANTAGES OF APPROVAL Provides for the timely replacement of critical maintenance equipment. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED FUNDING SOURCES 100% Wastewater Utility Revenues - Approx. 5 year cost recover through TV Line Service Fee, currently 80 cents per foot inspected. New Replacement Equipment Project 151 CIP Project Fund Wastewater Fund PROJECT NUMBER WW21 DEPARTMENT WW OPS PROJECT NAME FLUSHER TRUCK FY12 FY13 $253,094 FY14 FY15 FY16 Unscheduled DESCRIPTION OF PROJECT 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 APPROVAL Increased reliability and safety for staff and wastewater operations. Camera will eliminate need for follow up TV inspection by the TV van. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Annual Operating and Maintenance Costs: Operating and repair costs are expected to be lower than the existing vehicle. FUNDING SOURCES 100% Wastewater utility fund New Replacement Equipment Project 152 CIP Project Fund Wastewater Fund PROJECT NUMBER WW23 DEPARTMENT WW OPS PROJECT NAME MINI EXCAVATOR & TRAILER FY12 FY13 $25,000 FY14 FY15 FY16 Unscheduled DESCRIPTION OF PROJECT 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. This purchase of equipment and trailer will also be shared with the Streets Department. ALTERNATIVES CONSIDERED Continue to rent this piece of equipment. ADVANTAGES OF APPROVAL Continue to rent this piece of equipment. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Continue to rent this piece of equipment. FUNDING SOURCES Total Cost $75,000, split 3-ways between Water Fund, Wastewater Fund, and Street Maintenance Fund ($25,000 each.) New Replacement Equipment Project 153 CIP Project Fund Wastewater Fund PROJECT NUMBER WW26 DEPARTMENT WW OPS PROJECT NAME FLUSHER VAC TRUCK REPLACEMENT FY12 FY13 FY14 FY15 $262,000 FY16 Unscheduled DESCRIPTION OF PROJECT Replacement of the City’s Flusher Vac Truck. This flusher vac truck is used daily to excavate around critical infrastructure i.e. fiber optics, gas, and electric lines in addition to flushing and vacuuming sewer mains. ALTERNATIVES CONSIDERED Continue to use older vehicle which will be costly to maintain. ADVANTAGES OF APPROVAL Increased reliability and safety for staff and wastewater operations. This piece of equipment eliminates costly repairs because we can avoid hitting utilities with a hoe and utilize the vacuum instead. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Annual Operating and Maintenance Costs: Operating and repair costs are expected to be lower than the existing vehicle. FUNDING SOURCES 100% Wastewater utility fund New Replacement Equipment Project 154 CIP Project Fund Wastewater Fund PROJECT NUMBER WW27 DEPARTMENT WRF PLANT PROJECT NAME SKID STEER VEHICLE FY12 $45,000 FY13 FY14 FY15 FY16 Unscheduled DESCRIPTION OF PROJECT Purchase one used Skid Steer vehicle to replace our GEHL SL4625 with a larger unit capable of lifting 3000 lb polymer totes. This skid steer is a multi-purpose vehicle that has been, and will continue to be used for a variety of purposes including landscaping and gravel work, unloading pallets from semi trailers, lifting dredge hoses, moving/lifting dumpsters, lifting polymer barrels and 3000 lb totes, moving large pumps and motors, and snow removal. We currently have no means of lifting the 3000 lb totes we will be receiving and unloading every 4 days when the new plant starts up. Acceptable manufacturers include: CAT Model S300 or S330. GEHL Model 7810E ALTERNATIVES CONSIDERED We have discussed sharing a large forklift with John Van Delinder. John has cautioned us that operating a forklift outdoors on snow and ice is not advisable due to limited traction. John also indicated that transporting a forklift to the WRF would require a tipping trailer and that in the summer his transport ADVANTAGES OF APPROVAL This lifting vehicle will enable us to move and stack large 3000 lb polymer totes. A large skid steer is also an excellent multi- purpose vehicle that we have routinely used for unloading pallets from semi-trailers, hauling heavy pumps and motors, moving dumpsters, yard work, landscaping, and snow removal. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Annual Operating and Maintenance Costs: Estimated Annual Fuel and Maintenance costs for this vehicle will be in the range of $300-$400 per year. FUNDING SOURCES 100% Wastewater Fund New Replacement Equipment Project 155 CIP Project Fund Wastewater Fund PROJECT NUMBER WW28 DEPARTMENT WRF PLANT PROJECT NAME DESIGN PHASE II - WRF PLANT IMPROVEMENTS FY12 FY13 FY14 FY15 FY16 Unscheduled $2,615,000 DESCRIPTION OF PROJECT In January 2006 Morrison & Maierle Consulting Engineers completed a comprehensive Wastewater Facilities Plan. The plan recommends the City proceed with a 3-phased project schedule that includes the construction of the new Water Reclamation Facility (WRF), capable of handling our increased flows while also reducing the amount of Total Nitrogen discharged to the East Gallatin River. Phase two is expected to include one new primary clarifier, more BNR reactor basins, clarifiers, tertiary deep bed filtration, liquid sludge storage tanks, anaerobic digestion, and effluent re-use pumping station. The capacity expanding (impact fee eligible) elements are: reactor basins, clarifiers, and pumping station. It is possible that this phase of the project could be further divided into phase 2A and phase 2B, if necessary. ALTERNATIVES CONSIDERED A variety of treatment technologies and alternatives are presented in the January 2006 Wastewater Facilities Plan. ADVANTAGES OF APPROVAL Major capital expansion of the Bozeman WRF will enable the City to meet its estimated 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. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Annual Operating & Maintenance Costs: no estimates at this time. FUNDING SOURCES Total Design Cost: $5,230,000. We estimate that half of the costs are related to regulation and maintenance issues and would be borne by the Utility Fund. Half are related to capacity expansion, and would be borne by Impact Fees. 50% Wastewater Fund, 50% Wastewater Impact Fee Fund. New Replacement Equipment Project 156 CIP Project Fund Wastewater Fund PROJECT NUMBER WW29 DEPARTMENT WRF PLANT PROJECT NAME ENERGY RECOVERY (METHANE CO-GENERATION) PROJECT FY12 FY13 FY14 FY15 FY16 Unscheduled $2,600,000 DESCRIPTION OF PROJECT Utilization of smart energy technology that will recycle an average of 175 kW of electricity and 974,000 BTU/hour of thermal output using a generator powered by Water Reclamation Facility digester gas. ALTERNATIVES CONSIDERED Continue to flare the digester methane gas. Micro-turbines and fuel-cells have been analysed and continue to be possible alternative energy recovery technologies for this project. ADVANTAGES OF APPROVAL Current plant waste gases will be captured and utilized to reduce plant operating costs. The project has an estimated net dollar savings of $230,000 per year. It supports the City's Municipal Climate Action Plan goals. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Once construction is funded, this project results in an estimated net dollar SAVINGS of $230,000/year. FUNDING SOURCES Wastewater Fund, other grants or community partners. New Replacement Equipment Project 157