HomeMy WebLinkAboutAdopt the Water Fund within the Capital Improvemenent 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 –
WATER FUND
Item Type: Consent
MEETING DATE: December 13, 2010
RECOMMENDATION: Adopt the attached Water Fund Capital Improvements Plan for
2012-2016.
BACKGROUND: On November 29, 2010, we presented the attached Water Fund capital
improvement plan. At that time, public comment and commissioner input was sought.
· At that time, it was noted that the schedule contained incorrect dollar amounts for the
Water Treatment Plant project on page 2 of the CIP details. As a result of that meeting,
we have updated the schedule on page 2 and submit it for your approval tonight.
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
158
Water FundCapital Improvement PlanFinancial Summary Current YearFY11 FY12 FY13 FY14 FY15 FY16Projected Beginning Reserve Balance Dedicated to CIP 8,637,261$ 3,375,761$ 3,804,517$ 1,363,976$ 2,904,498$ 3,357,630$ Plus: Water Revenues Dedicated to CIP 1,483,500$ 1,530,972$ 1,579,963$ 1,630,522$ 1,663,132$ 1,696,395$ Plus: WTP Loan Proceeds9,000,000$ 7,000,000$ Less: Scheduled CIP Project Costs (6,745,000)$ (10,102,216)$ (11,020,504)$ (90,000)$ (1,210,000)$ (90,000)$ Projected Year‐End Cash Dedicated to CIP 3,375,761$ 3,804,517$ 1,363,976$ 2,904,498$ 3,357,630$ 4,964,025$ Assumptions Made for Revenue Estimates: Current YearFY11 FY12 FY13 FY14 FY15 FY16Estimated Annual Water Revenues 5,750,000$ 5,934,000$ 6,123,888$ 6,319,852$ 6,522,088$ 6,652,529$ Estimated Annual Increase 3.2% 3.2% 3.2% 3.2% 2% 2%Total Estimated Revenues 5,934,000$ 6,123,888$ 6,319,852$ 6,522,088$ 6,652,529$ 6,785,580$ Current Revenues Dedicated to CIP % 25.0% 25.0% 25.0% 25.0% 25.0% 25.0% Plus: Increase Dedicated to CIP 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Total % Dedicated to CIP 25.0% 25.0% 25.0% 25.0% 25.0% 25.0%ProjectedProjectedTotal Estimated Revenues Dedicated to CIP1,483,500$ 1,530,972$ 1,579,963$ 1,630,522$ 1,663,132$ 1,696,395$ 12,000,00010,000,0008,000,0006,000,0004,000,0002,000,0000Water Fund Projects & Equipment 159
CIP PROJECT FUNDPROJ.DEPARTMENPROJECT NAMEFY12FY13FY14FY16UnscheduledFY15Water FundPW01WATER OPSSHOPS FACILITY EXPANSION PLAN$10,000PW02Water OPSLAUREL GLEN SHOP ANNEX ‐ Phase 1$100,000W03WATER OPSENGINEERING/DESIGN for BIANNUAL WATER SYSTEM UPGRADES$90,000$90,000$90,000W04WATER OPSWATER SYSTEM UPGRADES BIANNUAL$1,100,000$1,210,000W07WATER PLANTWATER TREATMENT PLANT 22MG MEMBRANE PLANT$9,800,854$9,800,854W12WATER OPS1 TON TRUCK WITH HOIST$46,794W16WATER OPSBACKHOE$111,362W17WATER OPS1/2 TON TRUCK$37,856WW23WATER OPSMINI EXCAVATOR & TRAILER$25,000Summary for Water Fund (9 items)Totals by year:$10,102,216 $11,020,504 $90,000 $1,210,000$90,000FY12FY13FY14FY15FY16Unscheduled160
CIP Project Fund
Water Fund
PROJECT NUMBER
PW01
DEPARTMENT
WATER 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
161
CIP Project Fund
Water Fund
PROJECT NUMBER
PW02
DEPARTMENT
Water 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
162
CIP Project Fund
Water Fund
PROJECT NUMBER
W03
DEPARTMENT
WATER OPS
PROJECT NAME
ENGINEERING/DESIGN for BIANNUAL WATER SYSTEM UPGRADES
FY12
$90,000
FY13 FY14
$90,000
FY15 FY16
$90,000
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 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 , 2. Koch: Lindley to Bozeman, 3. Lindley: Olive to Koch, 4. S. Bozeman: Olive to Story
As annual operations occur, other more-urgent projects may be identified and designed under this project heading.
ALTERNATIVES CONSIDERED
ADVANTAGES OF APPROVAL
Provides for the design of necessary water system maintenance work.
ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED
FUNDING SOURCES
100% Water Utility Fund
New
Replacement
Equipment
Project
163
CIP Project Fund
Water Fund
PROJECT NUMBER
W04
DEPARTMENT
WATER OPS
PROJECT NAME
WATER SYSTEM UPGRADES BIANNUAL
FY12 FY13
$1,100,000
FY14 FY15
$1,210,000
FY16 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 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 , 2. Koch: Lindley to Bozeman, 3. Lindley: Olive to Koch, 4. S. Bozeman: Olive to Story
As annual operations occur, other more-urgent projects may be identified and designed under this project heading.
ALTERNATIVES CONSIDERED
ADVANTAGES OF APPROVAL
Provides for the construction of necessary water system maintenance work.
ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED
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
New
Replacement
Equipment
Project
164
CIP Project Fund
Water Fund
PROJECT NUMBER
W07
DEPARTMENT
WATER PLANT
PROJECT NAME
WATER TREATMENT PLANT 22MG MEMBRANE PLANT
FY12
$9,800,854
FY13
$9,800,854
FY14 FY15 FY16 Unscheduled
DESCRIPTION OF PROJECT
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. It is expected to be online by October 2013.
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.
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 APPROVAL
Planning for increased water supply to meet growing demands and to replace existing equipment that is at the end of its useful
life. The New Plant will be located at the current site in a 49,620 sf building located directly north of the plant. It will include pre-
oxidation, coagulation, flocculation, settling, strainers, membrane flitration, dissolved air flotation thickeners, disinfection, PH
adjustment for corrosion control, drying beds, lagoon, and ancillary facilities.
ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED
This plant is not estimated require an addition to existing plant staff. Annual O&M costs = est. $1,735,901 (including existing staff
plus new plant expenses). None of these costs can be paid with Impact Fees.
FUNDING SOURCES
The most recent estimate of plant costs was provided in the Fall of 2010, at a total of $40.7 Million. It is estimated that 33% of
total project costs (approx $13.4 Milion) are related to capacity expansion of the plant, and therefore are eligible for impact fee
funding. TOTAL PROEJCT: FY08 Pilot Testing: $200,000. FY09,FY10, FY11 Design and Membrane equipment deposit,
construction $7,267,000. FY12 $16,460,000. FY13 $16,460,000.
New
Replacement
Equipment
Project
165
CIP Project Fund
Water Fund
PROJECT NUMBER
W12
DEPARTMENT
WATER OPS
PROJECT NAME
1 TON TRUCK WITH HOIST
FY12 FY13
$46,794
FY14 FY15 FY16 Unscheduled
DESCRIPTION OF PROJECT
This request replaces asset # 2914, a 2001 Dodge 1-ton with a 1-ton truck with a hoist.
This truck is used daily in both water and sewer operations to transport personnel and equipment, and responds to water and
sewer line emergencies. This particular truck has proven to be a very unreliable vehicle; the transmission has been replaced
twice. Because of reliability problems and maintenance costs, we are recommending replacing this vehicle sooner than
customary.
Flex Fuel Vehicles will be purchased.
ALTERNATIVES CONSIDERED
Keep the trucks and spend maintenance dollars to have truck serviceable
ADVANTAGES OF APPROVAL
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.
ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED
FUNDING SOURCES
100% Water Utility Fund
New
Replacement
Equipment
Project
166
CIP Project Fund
Water Fund
PROJECT NUMBER
W16
DEPARTMENT
WATER OPS
PROJECT NAME
BACKHOE
FY12
$111,362
FY13 FY14 FY15 FY16 Unscheduled
DESCRIPTION OF PROJECT
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 APPROVAL
Increased reliability and safety for staff and water operations.
ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED
Operating and repair costs are expected to be lower than the existing vehicle.
FUNDING SOURCES
100% Water Fund
New
Replacement
Equipment
Project
167
CIP Project Fund
Water Fund
PROJECT NUMBER
W17
DEPARTMENT
WATER OPS
PROJECT NAME
1/2 TON TRUCK
FY12 FY13
$37,856
FY14 FY15 FY16 Unscheduled
DESCRIPTION OF PROJECT
This vehicle replaces current asset #2647, a 1998 Chevy 4x4. It will be replaced once it approaches 100,000 miles, estimated to
be FY13. 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 APPROVAL
Increased reliability and safety for staff and water operations.
ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED
Operating and repair costs are expected to be lower than the existing vehicle.
FUNDING SOURCES
100% Water Fund
New
Replacement
Equipment
Project
168
CIP Project Fund
Water Fund
PROJECT NUMBER
WW23
DEPARTMENT
WATER 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
Give’s both the Water and Street Departments a piece of equipment that can work in small spaces
ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED
Annual Operating and Maintenance Costs: Operating and repair costs are expected to be lower than a normal size backhoe
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
169