The URL can be used to link to this page

Home My WebLink AboutAdopt the Water Fund Capital Improvement Plan with memo Commission Memorandum REPORT TO: Honorable Mayor and City Commission FROM: Chris Kukulski, City Manager Anna Rosenberry, Finance Director SUBJECT: Adoption of the Water Fund Capital Improvement Plan (CIP) for FY13-17 AGENDA ITEM TYPE: Consent MEETING DATE: December 12, 2011 RECOMMENDATION: Adoption of the Water 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 Water 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. 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: Water Fund CIP Water FundCapital Improvement PlanFinancial SummaryCurrent YearFY12FY13FY14 FY15 FY16 FY17UnscheduledProjected Beginning Reserve Balance Dedicated to CIP 3,375,761$ 2,619,648$ 78,216$ 2,221,258$ 3,059,033$ 3,966,902$ ‐$ Plus: Water Revenues Dedicated to CIP1,593,103$ 1,664,792$ 1,739,708$ 1,817,995$ 1,899,804$ 1,975,797$ ‐$ Plus: WTP Loan Proceeds8,000,000$ 7,000,000$ 1,500,000$ ‐$ Less: Scheduled CIP Project Costs(10,349,216)$ (11,206,224)$ (1,096,665)$ (980,220)$ (991,935)$ (1,119,645)$ ‐$ Projected Year‐End Cash Dedicated to CIP2,619,648$ 78,216$ 2,221,258$ 3,059,033$ 3,966,902$ 4,823,054$ ‐$ Assumptions Made for Revenue Estimates:Current YearFY12FY13FY14FY15 FY16 FY17Estimated Annual Water Revenues6,098,000$ 6,372,410$ 6,659,168$ 6,958,831$ 7,271,978$ 7,599,217$ Estimated Annual Increase4.5%4.5%4.5%4.5% 4.5%4%Total Estimated Revenues6,372,410$ 6,659,168$ 6,958,831$ 7,271,978$ 7,599,217$ 7,903,186$ Current Revenues Dedicated to CIP %25.0%25.0% 25.0% 25.0% 25.0% 25.0% Plus: Increase Dedicated to CIP0.0%0.0%0.0%0.0% 0.0%0.0% Total % Dedicated to CIP25.0%25.0% 25.0% 25.0% 25.0% 25.0%TtlEti tdRDdi tdt CIP1 593 103$1 664 792$1 739 708$1 817 995$1 899 804$1 975 797$ProjectedProjectedTotal Estimated Revenues Dedicated to CIP1,593,103$ 1,664,792$ 1,739,708$ 1,817,995$ 1,899,804$ 1,975,797$ 12,000,00010,000,0008,000,0006,000,0004,000,0002,000,0000Water Fund Projects & Equipment Page 1117 CIP PROJECT FUNDPROJ.DEPARTMENPROJECT NAMEFY13FY14FY16UnscheduledFY15FY17Water FundPW01WATER OPSSHOPS FACILITY EXPANSION PLAN$10,000W03WATER OPSENGINEERING/DESIGN for ANNUAL WATER PIPE REPLACEMENT PROGRAM$22,500$22,500$22,500$22,500W04‐13WATER OPSWATER PIPE REPLACEMENT PROGRAM$1,205,720W04‐14WATER OPSWATER PIPE REPLACEMENT PROGRAM$974,165W04‐15WATER OPSWATER PIPE REPLACEMENT PROGRAM$947,720W04‐16WATER OPSWATER PIPE REPLACEMENT PROGRAM$969,435W04‐17WATER OPSWATER PIPE REPLACEMENT PROGRAM$1,097,145W12WATER OPS1 TON TRUCK WITH HOIST$46,794W17WATER OPS1/2 TON TRUCK$37,856W24WATER OPSFixed Base Meter Read System$90,000$60,000WW23WATER OPSMINI EXCAVATOR & TRAILER$25,000W07WATER PLANTWATER TREATMENT PLANT 22MG MEMBRANE PLANT$9,800,854W25WATER PLANTReplacement Vehicle$40,000Summary for Water Fund (13 items)Totals by year:$11,206,224 $1,096,665 $980,220$991,935FY13FY14FY15FY16UnscheduledFY17$1,119,645Page 2118 CIP Project Fund Water Fund PROJECT NUMBER PW01 DEPARTMENT WATER 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 3 119 CIP Project Fund Water Fund PROJECT NUMBER W03 DEPARTMENT WATER OPS PROJECT NAME ENGINEERING/DESIGN for ANNUAL WATER PIPE REPLACEMENT PROGRAM FY13 FY14 $22,500 FY15 $22,500 FY16 $22,500 Unscheduled DESCRIPTION OF PROJECT This item provides for design work to be completed every year, in anticipation of the Annual System Upgrades. 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 FY17 $22,500 Page 4 120 CIP Project Fund Water Fund PROJECT NUMBER W04-13 DEPARTMENT WATER OPS PROJECT NAME WATER PIPE REPLACEMENT PROGRAM FY13 $1,205,720 FY14 FY15 FY16 Unscheduled DESCRIPTION OF PROJECT PROJECT AREA: Mendenhall St: N. 8th Ave - N. Broadway Ave. The timing is important so that we can mill and overlay Mendehall with Gas Tax Funds, as soon as possible after the water pipes are replaced. 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 FY17 Page 5 121 CIP Project Fund Water Fund PROJECT NUMBER W04-14 DEPARTMENT WATER OPS PROJECT NAME WATER PIPE REPLACEMENT PROGRAM FY13 FY14 $974,165 FY15 FY16 Unscheduled DESCRIPTION OF PROJECT PROJECT AREA: N. Montana Ave: E. Lamme St - E. Peach St N. Montana Ave: E. Tamarack St - S. 34' N. Montana Ave: E. Peach St - E. Tamarack St E. Story St: S. Tracy Ave - S. Church Ave Dell Place: Alderson Ct - E. Story St. The timing of this project is based on our need to mill-overlay N. Montana Ave. 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 FY17 Page 6 122 CIP Project Fund Water Fund PROJECT NUMBER W04-15 DEPARTMENT WATER OPS PROJECT NAME WATER PIPE REPLACEMENT PROGRAM FY13 FY14 FY15 $947,720 FY16 Unscheduled DESCRIPTION OF PROJECT PROJECT AREA: S. Grand Ave: W. Garfield St - W. College St S. Grand Ave: W College St - W. Main St. The timing of this project is critical to our need to mill-overlay S. Grand Ave. 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 FY17 Page 7 123 CIP Project Fund Water Fund PROJECT NUMBER W04-16 DEPARTMENT WATER OPS PROJECT NAME WATER PIPE REPLACEMENT PROGRAM FY13 FY14 FY15 FY16 $969,435 Unscheduled DESCRIPTION OF PROJECT PROJECT AREA: S. Tracy Ave: W. Garfield St - E. Story St N. Willson Ave: W. Lamme St - W. Short St W. Babcock St: S. 10th Ave - S. 8th Ave N. Montana Ave: E. Tamarack St - N End of Existing. 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 FY17 Page 8 124 CIP Project Fund Water Fund PROJECT NUMBER W04-17 DEPARTMENT WATER OPS PROJECT NAME WATER PIPE REPLACEMENT PROGRAM FY13 FY14 FY15 FY16 Unscheduled DESCRIPTION OF PROJECT PROJECT AREA: W Olive St: S. 5th Ave - S. 3rd Ave W. Olive St: S. 6th Ave - S. 5th Ave N. Grand Ave: W. Lamme St - W. Peach St N. 5th Ave: W. Aspen St - W. Tamarack St S. 3rd Ave: W. Harrison Ave - W. Curtiss St 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 FY17 $1,097,145 Page 9 125 CIP Project Fund Water Fund PROJECT NUMBER W07 DEPARTMENT WATER PLANT PROJECT NAME WATER TREATMENT PLANT 22MG MEMBRANE PLANT 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 FY17 Page 10 126 CIP Project Fund Water Fund PROJECT NUMBER W12 DEPARTMENT WATER OPS PROJECT NAME 1 TON TRUCK WITH HOIST 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 FY17 Page 11 127 CIP Project Fund Water Fund PROJECT NUMBER W17 DEPARTMENT WATER OPS PROJECT NAME 1/2 TON TRUCK 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 FY17 Page 12 128 CIP Project Fund Water Fund PROJECT NUMBER W24 DEPARTMENT WATER OPS PROJECT NAME Fixed Base Meter Read System FY13 $90,000 FY14 $60,000 FY15 FY16 Unscheduled DESCRIPTION OF PROJECT This system will consist of fixed radio reMivers that are placed on city structures throughout town. The meters that are currently in place constantly transmit meter read data, instead of driving once a month around the city collecting reads, the receivers will automatically collect the data daily and transmit that either through the intranet or cell phone modems to finance and the city shops. We plan on deploying the receivers starting in FY 13, with completion in FY14. Radio studies have the number of receivers at 14 but our vendor states with a new model of receiver coming out next year that number should go below 10. ALTERNATIVES CONSIDERED ADVANTAGES OF APPROVAL Allows daily readings of the water meters and will allow staff to quickly respond to potential water leaks, meter tampering and backflow events. Will eliminate driving in the areas that are being read by the fixed base units. This will allow us to contact customers at the start of a leak event and save both money and water. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED FUNDING SOURCES 100% Water Utility Fund New Replacement Equipment Project FY17 Page 13 129 CIP Project Fund Water Fund PROJECT NUMBER W25 DEPARTMENT WATER PLANT PROJECT NAME Replacement Vehicle FY13 FY14 $40,000 FY15 FY16 Unscheduled DESCRIPTION OF PROJECT Replacement 4-wheel Drive ½ Ton pick-up, replaces 1997 ¾ ton pick-up that currently has 97,400 miles ALTERNATIVES CONSIDERED Keep existing unit in service ADVANTAGES OF APPROVAL More reliable, more fuel efficient vehicle ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED none FUNDING SOURCES Water Rates New Replacement Equipment Project FY17 Page 14 130 CIP Project Fund Water Fund PROJECT NUMBER WW23 DEPARTMENT WATER 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 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 FY17 Page 15 131