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Home My WebLink AboutAdoption of the Water Fund Capital Improvement Pla_13.pdf 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 FY14-18. AGENDA ITEM TYPE: Action MEETING DATE: November 26, 2012 RECOMMENDATION: Adoption of the Water Fund Capital Improvement Plan (CIP) for FY14-18. 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. Staff met in November to develop the attached draft schedules. The Water Fund CIP tracks the capital equipment replacements and construction projects for Water Operations (distribution system) and the Water Treatment Plant. By FY 13 we have budgeted for the entire Water Plant renovation, so FY14 and years beyond do not contain any costs associated with that upgrade. These levels of capital expenditure are in line with our adopted rate models. UNRESOLVED ISSUES: None. 312 ALTERNATIVES: As suggested by the City Commission. If the Commission is does not wish to adopt this schedule tonight, it can be scheduled for approval on a later agenda. 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 FY14. Report compiled on: November 19, 2012 Attached: Water Fund CIP 313 Water FundCapital Improvement PlanFinancial Summary Current YearFY13 FY14 FY15 FY16 FY17 FY18UnscheduledProjected Beginning Reserve Balance Dedicated to CIP 3,375,761$ 2,418,979$ 3,002,022$ 3,639,796$ 4,547,666$ 5,373,316$ ‐$ Plus: Water Revenues Dedicated to CIP 1,664,792$ 1,739,708$ 1,817,995$ 1,899,804$ 1,985,296$ 2,064,707$ ‐$ Plus: WTP Loan Proceeds 8,500,000$ Less: Scheduled CIP Project Costs (11,121,574)$ (1,156,665)$ (1,180,220)$ (991,935)$ (1,159,645)$ (974,950)$ ‐$ Projected Year‐End Cash Dedicated to CIP 2,418,979$ 3,002,022$ 3,639,796$ 4,547,666$ 5,373,316$ 6,463,074$ ‐$ Assumptions Made for Revenue Estimates: Current YearFY13 FY14 FY15 FY16 FY17 FY18Estimated Annual Water Revenues 6,372,410$ 6,659,168$ 6,958,831$ 7,271,978$ 7,599,217$ 7,941,182$ Estimated Annual Increase 4.5% 4.5% 4.5% 4.5% 4.5% 4%Total Estimated Revenues 6,659,168$ 6,958,831$ 7,271,978$ 7,599,217$ 7,941,182$ 8,258,830$ 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%TtlEti tdRDdi tdtCIP1 664 792$1 739 708$1 817 995$1 899 804$1 985 296$2 064 707$ProjectedProjectedTotal Estimated Revenues Dedicated to CIP1,664,792$ 1,739,708$ 1,817,995$ 1,899,804$ 1,985,296$ 2,064,707$ 1,400,0001,200,0001,000,000800,000600,000400,000200,0000Water Fund Projects & Equipment 314 CIP PROJECT FUNDPROJ.DEPARTMENPROJECT NAMEFY14FY16UnscheduledFY15FY17FY18Water FundPW01WATER OPSSHOPS FACILITY EXPANSION PLAN$10,000W03WATER OPSENGINEERING/DESIGN FOR ANNUAL WATER PIPE REPLACEMENT PROGRAM$22,500$22,500$22,500$22,500$22,500W04‐14WATER OPSWATER PIPE REPLACEMENT PROGRAM ‐ CONSTRUCTION IN 2014$974,165W04‐15WATER OPSWATER PIPE REPLACEMENT PROGRAM ‐ CONSTRUCTION IN 2015$1,147,720W04‐16WATER OPSWATER PIPE REPLACEMENT PROGRAM ‐ CONSTRUCTION IN 2016$969,435W04‐17WATER OPSWATER PIPE REPLACEMENT PROGRAM ‐ CONSTRUCTION IN 2017$1,097,145W04‐18WATER OPSWATER PIPE REPLACEMENT PROGRAM ‐ CONSTRUCTION IN 2018$952,450W24WATER OPSFIXED BASE METER READ SYSTEM$60,000W26WATER OPSINTERNAL PIPELINE ASSESSMENT OF THE SOURDOUGH 30” CONCRETE CYLINDER TREATED WATER MAIN$50,000W25WATER PLANTREPLACEMENT VEHICLE$40,000W27WATER PLANTRE‐ENGINEERING THE LYMAN TANK LINER$50,000Summary for Water Fund (11 items)Totals by year:$1,156,665 $1,180,220$991,935FY14FY15FY16UnscheduledFY18$974,950$1,159,645FY17315 CIP Project Fund Water Fund PROJECT NUMBER PW01 DEPARTMENT WATER OPS PROJECT NAME SHOPS FACILITY EXPANSION PLAN 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 FY18 316 CIP Project Fund Water Fund PROJECT NUMBER W03 DEPARTMENT WATER OPS PROJECT NAME ENGINEERING/DESIGN for ANNUAL WATER PIPE REPLACEMENT PROGRAM 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 FY18 $22,500 317 CIP Project Fund Water Fund PROJECT NUMBER W04-14 DEPARTMENT WATER OPS PROJECT NAME WATER PIPE REPLACEMENT PROGRAM - Construction in 2014 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. The timing of these projects is based on our need to mill-overlay N. Montana Ave. Dell Place: Alderson Ct - E. Story St. The water pipe segment of E. Story St: S. Tracy Ave - S. Church Ave will also be completed this year, in combination with REC04- Story Street Reconstruction ($380,000 of this project total is for the E. Story water pipe). After budget approval July 1, 2013, these projects would complete design, bid and begin construction in the Spring/Summer of 2014, at the end of FY14. 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 FY18 318 CIP Project Fund Water Fund PROJECT NUMBER W04-15 DEPARTMENT WATER OPS PROJECT NAME WATER PIPE REPLACEMENT PROGRAM - Construction in 2015 FY14 FY15 $1,147,720 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. N. Rouse Ave: Bond - Griffin (needs to be completed prior to MDOT Rouse project.) The timing of this project is critical to our need to mill-overlay S. Grand Ave. After budget approval July 1, 2014, these projects would complete design, bid and begin construction in the Spring/Summer of 2015, at the end of FY15. 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 FY18 319 CIP Project Fund Water Fund PROJECT NUMBER W04-16 DEPARTMENT WATER OPS PROJECT NAME WATER PIPE REPLACEMENT PROGRAM - Construction in 2016 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. After budget approval July 1, 2015, this project would complete design, bid and begin construction in the Spring/Summer of 2016, at the end of FY16. 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 FY18 320 CIP Project Fund Water Fund PROJECT NUMBER W04-17 DEPARTMENT WATER OPS PROJECT NAME WATER PIPE REPLACEMENT PROGRAM - Construction in 2017 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. After budget approval July 1, 2016, this project would complete design, bid and begin construction in the Spring/Summer of 2017, at the end of FY17. 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 FY18 321 CIP Project Fund Water Fund PROJECT NUMBER W04-18 DEPARTMENT WATER OPS PROJECT NAME WATER PIPE REPLACEMENT PROGRAM - Construction in 2018 FY14 FY15 FY16 Unscheduled DESCRIPTION OF PROJECT PROJECT AREA: S 6th Ave: W. Harrison Ave- W Olive S: W. Koch St: S Grand Ave.- S. Willson Ave: S. Willson Ave.: W. College St- W. Koch St. After budget approval July 1, 2017, this project would complete design, bid and begin construction in the Spring/Summer of 2018, at the end of FY18. ALTERNATIVES CONSIDERED ADVANTAGES OF APPROVAL Provides for the construction 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 FY18 $952,450 322 CIP Project Fund Water Fund PROJECT NUMBER W24 DEPARTMENT WATER OPS PROJECT NAME Fixed Base Meter Read System 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 FY18 323 CIP Project Fund Water Fund PROJECT NUMBER W25 DEPARTMENT WATER PLANT PROJECT NAME Replacement Vehicle FY14 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 $40,000 FY18 324 CIP Project Fund Water Fund PROJECT NUMBER W26 DEPARTMENT WATER OPS PROJECT NAME Internal pipeline assessment of the Sourdough 30” concrete cylinder treated water main FY14 $50,000 FY15 FY16 Unscheduled DESCRIPTION OF PROJECT This project will involve insertion of electronic sensors that will evaluate the condition of the pipe internally. Installed primarily in 1983, this is the only treated water feed from the Sourdough Plant, so it important to know the condition of the pipe. This pipe has failed once before causing voluntary rationing of water, in November 2003. ALTERNATIVES CONSIDERED ADVANTAGES OF APPROVAL Advantages to the City include giving us assessment data of the integrity of the pipe from the inside. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED FUNDING SOURCES 100% Water Utility Fund New Replacement Equipment Project FY17 FY18 325 CIP Project Fund Water Fund PROJECT NUMBER W27 DEPARTMENT WATER PLANT PROJECT NAME RE-ENGINEERING THE LYMAN TANK LINER FY14 $50,000 FY15 FY16 Unscheduled DESCRIPTION OF PROJECT This project would fund the engineering work to make improvements to the Lyman Water Tank liner. ALTERNATIVES CONSIDERED Keep existing liner as-is. ADVANTAGES OF APPROVAL It is anticipated that engineering could assist in making improvements to this liner. ADDITIONAL OPERATING COSTS IN THE FUTURE, IF FUNDED Not known. FUNDING SOURCES 100% Water Fund New Replacement Equipment Project FY17 FY18 326