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Home My WebLink AboutAdopt the Wastewater Fund Capital Improvement Plan Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Chris Kukulski, City Manager Anna Rosenberry, Finance Director SUBJECT: Adoption of the Wastewater Fund Capital Improvement Plan (CIP) for FY13-17 AGENDA ITEM TYPE: Consent MEETING DATE: December 12, 2011 RECOMMENDATION: Adoption of the Wastewater Fund Capital Improvement Plan (CIP) for FY13-17. BACKGROUND: Each year, the City Manager is required to prepare a 5 Year Capital Improvements Plan and submit it to the Commission by December 15th. On November 21st, the Commission held a policy discussion to review the proposed Wastewater Fund Capital Improvement Plan (CIP) for FY13-17. As a result of that review, the attached CIP is recommended for approval. UNRESOLVED ISSUES: During the policy discussion, the City’s Vehicle/Equipment Replacement Policy was discussed, (Administrative Order 2010-04, found at: http://weblink.bozeman.net/WebLink8/0/doc/41332/Page1.aspx) Specifically, the need to amend section F and the amount of mileage to be reached before we plan to replace a vehicle. We agree that this section should be amended and will be preparing a change to the policy that will be in effect for the Fiscal Year 13 budget development. ALTERNATIVES: As suggested by the City Commission. 132 FISCAL EFFECTS: This step in the process has no fiscal effect. Once adopted, the Capital Improvements Plan becomes the basis of the City Manager’s Recommended Budget for FY13. Report compiled on: November December 2, 2011 Attached: Wastewater Fund CIP 133 Wastewater FundCapital Improvement PlanFinancial SummaryCurrent YearFY12FY13FY14 FY15 FY16 FY17UnscheduledProjected Beginning Reserve Balance Dedicated to CIP 2,490,000$ 1,836,580$ 1,899,722$ 2,182,751$ 2,379,612$ 2,971,474$ ‐$ Plus: Wastewater Revenues Dedicated to CIP1,241,260$ 1,315,736$ 1,394,680$ 1,478,361$ 1,567,062$ 1,629,745$ ‐$ Less: Scheduled CIP Project Costs(1,894,680)$ (1,252,594)$ (1,111,650)$ (1,281,500)$ (975,200)$ (825,700)$ (5,215,000)$ Projected Year‐End Cash Dedicated to CIP1,836,580$ 1,899,722$ 2,182,751$ 2,379,612$ 2,971,474$ 3,775,519$ (5,215,000)$ Assumptions Made for Revenue Estimates:Current YearFY12FY13FY14FY15 FY16 FY17Estimated Annual Wastewater Revenues5,855,000$ 6,206,300$ 6,578,678$ 6,973,399$ 7,391,803$ 7,835,311$ Estimated Annual Increase6.0%6%6%6%6%4%Total Estimated Revenues6,206,300$ 6,578,678$ 6,973,399$ 7,391,803$ 7,835,311$ 8,148,723$ Current Revenues Dedicated to CIP %20.0%20.0% 20.0% 20.0% 20.0% 20.0% Plus: Increase Dedicated to CIP0.0%0.0%0.0%0.0% 0.0%0.0% Total % Dedicated to CIP20.0%20.0% 20.0% 20.0% 20.0% 20.0%TtlEti tdRDdi tdt CIP1 241 260$1 315 736$1 394 680$1 478 361$1 567 062$1 629 745$ProjectedProjectedTotal Estimated Revenues Dedicated to CIP1,241,260$ 1,315,736$ 1,394,680$ 1,478,361$ 1,567,062$ 1,629,745$ 6,000,0005,000,0004,000,0003,000,0002,000,0001,000,0000Wastewater Fund Projects & Equipment Page 1134 CIP PROJECT FUNDPROJ.DEPARTMENPROJECT NAMEFY13FY14FY16UnscheduledFY15FY17Wastewater FundWW28WRF PLANTDESIGN PHASE II ‐ WRF PLANT IMPROVEMENTS$2,615,000WW29WRF PLANTENERGY RECOVERY (METHANE CO‐GENERATION) PROJECT$2,600,000WW30WRF PLANTREPLACE DIGESTER MIXERS$41,000$41,000PW01WW OPSSHOPS FACILITY EXPANSION PLAN$10,000WW02WW OPS1 TON TRUCK WITH HOIST$45,000WW03WW OPS1/2 TON FLEX FUEL TRUCK$25,000WW07WW OPSENGINEERING/DESIGN for ANNUAL WASTEWATER PIPE REPLACEMENTS$22,500$22,500$22,500$22,500$22,500WW08‐13WW OPSWASTEWATER SYSTEM UPGRADES ANNUAL$886,000WW08‐14WW OPSWASTEWATER PIPE REPLACEMENT PROGRAM$1,003,150WW08‐15WW OPSWASTEWATER PIPE REPLACEMENT PROGRAM$914,000WW08‐16WW OPSWASTEWATER PIPE REPLACEMENT PROGRAM$952,700WW08‐17WW OPSWASTEWATER PIPE REPLACEMENT PROGRAM$803,200WW21WW OPSFLUSHER TRUCK$253,094WW23WW OPSMINI EXCAVATOR & TRAILER$25,000WW26WW OPSFLUSHER VAC TRUCK REPLACEMENT$335,000Summary for Wastewater Fund (15 items)Totals by year:$1,252,594 $1,111,650 $1,281,500$975,200$5,215,000FY13FY14FY15FY16UnscheduledFY17$825,700Page 2135 CIP Project Fund Wastewater Fund PROJECT NUMBER PW01 DEPARTMENT WW OPS PROJECT NAME SHOPS FACILITY EXPANSION PLAN FY13 FY14 FY15 $10,000 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 FY17 Page 3 136 CIP Project Fund Wastewater Fund PROJECT NUMBER WW02 DEPARTMENT WW OPS PROJECT NAME 1 TON TRUCK WITH HOIST 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. Replaces a 2004 Ford F250, asset #3232. At the time of replacement, this truck will be over 10 years old. While this vehicle is only 10 years old, its not big enough to properly function as a service truck; very limited carrying capacity. It will be passed down to another department for continued use within the city. 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 FY17 Page 4 137 CIP Project Fund Wastewater Fund PROJECT NUMBER WW03 DEPARTMENT WW OPS PROJECT NAME 1/2 TON FLEX FUEL TRUCK 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 FY17 Page 5 138 CIP Project Fund Wastewater Fund PROJECT NUMBER WW07 DEPARTMENT WW OPS PROJECT NAME ENGINEERING/DESIGN for ANNUAL WASTEWATER PIPE REPLACEMENTS FY13 $22,500 FY14 $22,500 FY15 $22,500 FY16 $22,500 Unscheduled DESCRIPTION OF PROJECT This item provides for design work to be completed every-other year, in anticipation of the Annual System Upgrades. 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 FY17 $22,500 Page 6 139 CIP Project Fund Wastewater Fund PROJECT NUMBER WW08-13 DEPARTMENT WW OPS PROJECT NAME WASTEWATER SYSTEM UPGRADES ANNUAL FY13 $886,000 FY14 FY15 FY16 Unscheduled DESCRIPTION OF PROJECT PROJECT AREA: W. Main St: N. 7th Ave - N. Grand Ave W. Main St: N. Grand Ave - N. Tracy Ave, E. Main St: N. Tracy Ave - N. Black Ave E. Main St: N. Black Ave - N. Church Ave, E Mendenhall St: N. 7th Ave - N. Grand Ave W. Lamme St: N. 7th Ave - Mid block East, W. Lamme St: N. 5th Ave - N. Grand Ave W. Beall St: N. 5th Ave - N. 3rd Ave, N. 3rd Ave: W. Beall St - W. Villard St N. 3rd Ave: W. Villard St - W. Peach St, N. 4th Ave: W. Villard St - W. Short St N. 5th Ave: W. Beall St - W. Peach St, N. 6th Ave: W. Villard St - N. 5th Ave N. 7th Ave: W. Villard St - W. Peach St, W. Peach St: N. 7th Ave - N. Grand Ave 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 FY17 Page 7 140 CIP Project Fund Wastewater Fund PROJECT NUMBER WW08-14 DEPARTMENT WW OPS PROJECT NAME WASTEWATER PIPE REPLACEMENT PROGRAM FY13 FY14 $1,003,150 FY15 FY16 Unscheduled DESCRIPTION OF PROJECT PROJECT AREA: N. Grand Ave: W. Mendenhall St - W. Main St S. Grand Ave: W. Main St - W. Babcock St S. Grand Ave: W. Babcock St - S. End of Line N. Willson Ave: W. Mendenhall St - W. Main St N. Willson Ave: W. Main St - W. Hayes St S. Tracy Ave: W. Main St - W. Garfield St 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 FY17 Page 8 141 CIP Project Fund Wastewater Fund PROJECT NUMBER WW08-15 DEPARTMENT WW OPS PROJECT NAME WASTEWATER PIPE REPLACEMENT PROGRAM FY13 FY14 FY15 $914,000 FY16 Unscheduled DESCRIPTION OF PROJECT PROJECT AREA: S. 3rd Ave: W. Olive St - W. Lincoln St S. 4th Ave: W. Babcock St - W. Olive St S. 4th Ave: W. College St - W. Lincoln St S. 5th Ave: W. Olive St - W. Lincoln St W. Babcock St: S. 6th Ave - S. Grand Ave W. Olive St: S. 6th Ave - S. 3rd Ave Alley N of Koch: S. 5th Ave - E. End 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 FY17 Page 9 142 CIP Project Fund Wastewater Fund PROJECT NUMBER WW08-16 DEPARTMENT WW OPS PROJECT NAME WASTEWATER PIPE REPLACEMENT PROGRAM FY13 FY14 FY15 FY16 $952,700 Unscheduled DESCRIPTION OF PROJECT PROJECT AREA: Interstate/walmart: N. Rouse Ave - N. 3rd Ave Pea Cannery Line: N. Rouse Ave - End Juniper Street: N. Rouse Ave - E. Tamarack St N. Rouse Ave: Humane Society - Bridger Center Dr Bridger Center Main: Bridger Drive - N End of Main Industrial Dr: Trunk Main - Half way to Griffin 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 FY17 Page 10 143 CIP Project Fund Wastewater Fund PROJECT NUMBER WW08-17 DEPARTMENT WW OPS PROJECT NAME WASTEWATER PIPE REPLACEMENT PROGRAM FY13 FY14 FY15 FY16 Unscheduled DESCRIPTION OF PROJECT PROJECT AREA: Alley N of Story: S 5th Ave - E. End Alley N of Dickerson: S 5th Ave - E. End, Alley N of Alderson: S 5th Ave - E. End W. College St: S 5th Ave - E. End, W. College St: S 4th Ave - S. 3rd Ave Alley N. of Harrison: S. 5th Ave - S. 4th Ave, Alley N. of Cleveland: S. 5th Ave - S. 4th Ave S. 6th Ave: W. Babcoc St - Alley N. of Olive, S. 6th Ave: W. Story St - W. Grant St S. 7th Ave: Alley N of Olive - W. Story St, S. 7th Ave: W. Story St - W. Harrison W. Olive St: S. 6th Ave - S. 7th Ave, W. Story St: S. 6th Ave - S. 7th Ave Alley btwn 7th & 8th: Alley N of Olive - Alley N. of Koch Alley btwn 7th & 8th: Alley N of Dickerson - W. Harrison St 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 FY17 $803,200 Page 11 144 CIP Project Fund Wastewater Fund PROJECT NUMBER WW21 DEPARTMENT WW OPS PROJECT NAME FLUSHER TRUCK FY13 $253,094 FY14 FY15 FY16 Unscheduled DESCRIPTION OF PROJECT This vehicle replaces current asset #3031, a 2002 Freightliner with over 20,845 miles and 7,653 hours on it. According to the manufacturer’s engineers the fact that the engine is running at 2,400 rpm to run the water pump each engine hour equals 50 to 70 miles. Based on that data the truck’s engine has between 382,650 to 535,710 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 that is used almost every working day of the year. 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 FY17 Page 12 145 CIP Project Fund Wastewater Fund PROJECT NUMBER WW23 DEPARTMENT WW OPS PROJECT NAME MINI EXCAVATOR & TRAILER 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 FY17 Page 13 146 CIP Project Fund Wastewater Fund PROJECT NUMBER WW26 DEPARTMENT WW OPS PROJECT NAME FLUSHER VAC TRUCK REPLACEMENT FY13 FY14 FY15 $335,000 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. At time of replacement, this truck will be approximately 10 years old. The existing truck will be sold at auction. 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 FY17 Page 14 147 CIP Project Fund Wastewater Fund PROJECT NUMBER WW28 DEPARTMENT WRF PLANT PROJECT NAME DESIGN PHASE II - WRF PLANT IMPROVEMENTS 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 FY17 Page 15 148 CIP Project Fund Wastewater Fund PROJECT NUMBER WW29 DEPARTMENT WRF PLANT PROJECT NAME ENERGY RECOVERY (METHANE CO-GENERATION) PROJECT 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 FY17 Page 16 149 CIP Project Fund Wastewater Fund PROJECT NUMBER WW30 DEPARTMENT WRF PLANT PROJECT NAME REPLACE DIGESTER MIXERS FY13 $41,000 FY14 $41,000 FY15 FY16 Unscheduled DESCRIPTION OF PROJECT The Bozeman WRF needs to replace two defective/failing digester mixers. This equipment is essential to the operation of the existing anaerobic digesters. These digesters contain a total of 4 draft tube mixers, two of which have already been replaced. Our plan would be to purchase one replacement mixer in FY13 and the final one in FY14. The new EIMCO draft tube mixers will replace the defective OTI micers we are currently using. Our original OTI mixers have been plagued with multiple bearing failures, seal failures, oil lubrication system failures and almost constant propeller fouling. There are currently only two mixer manufactureers in the world that manufacture this type of draft tube mixer. Therefore, in order to replace these defective OTI mixers, we must order our replacement mixers from a sole source vendor. This vendor is EIMCO Technologies, in Salt Lake City. They are the only manufacturer capable of fabricating a replacement mixer which will mount directly to our existing digester draft tubes. EIMCO model #RDT-V 7.5 Hp mixer assembly. Installed project cost for each: $41,000. ALTERNATIVES CONSIDERED Continue to remove, disassemble and rebuild our defective mixers annually. This is not cost-effective and is not a sustainable option. The annual cost to rebuild one unit is approximately $15,000 plus extensive staff time. ADVANTAGES OF APPROVAL Replacement of these to remaining digester mixers will assure continuous operation of these essential plant components. The plant cannot run without functioning anaerobic digesters. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Annual Operating & Maintenance Costs: 7.5 Hp each, ongoing power costs. FUNDING SOURCES 100% Wastewater Fund New Replacement Equipment Project FY17 Page 17 150