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HomeMy WebLinkAbout06-10-2014 B2b Sewer Enterprise Fund ReviewCity of San Luis Obispo, Council Agenda Report, Meeting Date, Item Number FROM: Carrie Mattingly, Utilities Director Prepared By: Dave Hix, Utilities Deputy Director, Wastewater Brigitte Elke, Business Manager SUBJECT: FISCAL YEAR 2014-15 SEWER ENTERPRISE FUND REVIEW RECOMMENDATION 1. Review and accept the Fiscal Year (FY) 2014-15 Sewer Enterprise Fund report. 2. Conceptually approve the FY 2014-15 Sewer Enterprise Fund budget, with final action on June 17, 2014, with the adoption of the FY 2014-15 Financial Plan Supplement DISCUSSION Background The FY 2014-15 budget contained within the 2013-15 Financial Plan provides the basis for the review of the Sewer Enterprise Fund for this report. All assumptions made during the preparation of the Financial Plan were reviewed and necessary updates and adjustments incorporated. As outlined in the FY 2014-15 Sewer Enterprise Fund Analysis, which forecasts the financial position of the fund through 2020-21, the City will be able to: 1. Continue to deliver safe and reliable wastewater services to the community within the FY 2014-15 adopted sewer rates; 2. Maintain its operation in FY 2014-15 within approved budget levels without any adjustments; 3. Continue its ongoing level of capital improvement projects to maintain the community’s wastewater infrastructure assets; 4. Maintain a healthy working capital balance and revenue plan to position the Fund favorably for financing terms needed for the upcoming Water Resource Recovery Facility (WRRF) upgrade project. FY 2014-15 Sewer Enterprise Fund Analysis Report The FY 2014-15 Sewer Enterprise Fund analysis report (Attachment 1) includes the details of assumptions used to complete the review, changes in financial position, and an update on major capital activities. June 10, 2014 B2b B2b - 1 Sewer Enterprise Fund Review – FY 2014-15 Page 2 Revenue Update Overall, revenue projections for FY 2013-14 and 2014-15 are in alignment with the 2013-15 Financial Plan. During a public hearing on June 12, 2013, the City Council adopted sewer service rates in support of the Fund’s 2013-15 operating budgets and capital investments in accordance with Proposition 218 requirements. The adopted sewer rate for 2014-15 reflects a 3% increase, effective July 1, 2014. Rate Category 2013-14 Rate 2014-15 Rate Base Fee $7.73 $7.96 Volume Charge $8.52 $8.77 Increase on average household of 7 units* $67.37 $69.35 Average Increase $1.98 * based on average winter water use cap. Operating Program Update The Sewer Enterprise Fund includes seven operating programs, all of which are on track with their work programs within allocated resources. No increases or changes from the assumptions made in the 2013-15 Financial Plan are recommended for FY 2014-15. Capital Improvement Program Update The recommended program will stay within approved overall funding for the fiscal year. Some projects identified in the 2013-15 approved capital program for 2014-15 are being postponed. However, construction costs are increasing with bids coming in higher than estimated. Higher costs are being driven by a variety of reasons, such as site constraints, material costs and a more competitive bidding environment. Engineer’s estimates have been increased to reflect this change. The 2013-15 Financial Plan reflected the Madonna Lift Station replacement in 2015-16. Funding of this facility has been accelerated to 2014-15. Below is a list of projects and changes recommended to the previously approved funding. CIP Projects Original 2014-15 Proposed 2014-15 Proposed Change Collection System Improvements Marsh, Higuera, California to Marsh Jennifer Street Sewerline – 2012-13 CIP Rachel Street Sewerline Stafford, Kentucky, Taft Sewerline $460,000 0 $400,000 $200,000 0 $237,000 $544,000 $656,000 Postpone Bid cost over estimate Increased Engineer’s Estimate Increased Engineer’s Estimate Total Collection System $1,205,000 $1,582,000 Lift Station Replacements Madonna Lift Station Margarita Lift Station 0 $900,000 $520,500 0 Move from 2015-16 to 2014-15 Postpone Total Lift Station $900,000 $520,500 Total for Amended Projects $2,105,000 $2,102,500 B2b - 2 Sewer Enterprise Fund Review – FY 2014-15 Page 3 Project Highlights Energy Efficiency Project Design of the SST (energy efficiency) project is now complete and equipment has been ordered. Major construction activities will begin later this summer and should be complete by May 2015. Water Resource Recovery Facility Project Water Systems Consulting (WSC) has been hired as the Program Manager for the WRRF Project. Phase One has begun with a variety of plans and studies, including environmental permitting, infrastructure, regulatory and stakeholder outreach, which will result in a draft facilities plan in December of 2014 and development of a design RFP in February 2015. The final facilities plan and design RFP is scheduled to be presented to Council in April 2015. A community workshop on the facilities plan is scheduled for June 4, 2014 at 6:30 pm at the Ludwick Center. Phase Two, design, is scheduled to begin in July 2015. FISCAL IMPACT While cost estimates for capital projects increased (requiring the re-programming of certain capital projects) funding required for both capital and operating programs for FY 2014-15 remains the same as projected in the 2013-15 Financial Plan. ATTACHMENT 1. Fiscal Year 2014-15 Sewer Enterprise Fund Analysis and Exhibits T:\Council Agenda Reports\2014\2014-06-10\Enterprise Fund Review (Grigsby-Mattingly)\Sewer Enterprise Fund Review B2b - 3 ATTACHMENT 1 FY 2014-15 Sewer Enterprise Fund Analysis June 10, 2014 Prepared by the Utilities Department B2b - 4 Attachment 1 Page 2 FY 2014-15 Sewer Enterprise Fund TABLE OF CONTENTS I. OVERVIEW II. 2013-15 FINANCIAL PLAN SUPPLEMENT: FY 2014-15 BUDGET A. Revenue Summary B. Operating Program Summary C. Capital Improvement Plan Summary D. Debt Service Summary III. MAJOR ACTIVITIES AND PROGRAMS A. FY 2013-14 Update B. FY 2014-15 Forecast EXHIBIT A – FINANCIAL SCHEDULES A.1 Changes in Financial Position A.2 Projection Assumptions & Debt Service A.3 Capital Improvement Plan EXHIBIT B – SEWER RATE STRUCTURE HISTORY B2b - 5 Attachment 1 Page 3 FY 2014-15 Sewer Enterprise Fund Analysis I. OVERVIEW This report presents the updated financial condition of the Sewer Enterprise Fund for the 2013- 15 Financial Plan Supplement’s 2014-15 operating budget and capital programs. It takes into consideration the identified needs in the Wastewater Master Plan, regulatory requirements, infrastructure maintenance, and adopted City financial policies. II. 2013-15 FINANCIAL PLAN SUPPLEMENT: 2014-15 BUDGET A. REVENUE SUMMARY The Sewer Enterprise Fund’s projected revenues are summarized in Table A. Table A. Revenue Summary Original Revised Original Revised BudgetBudget Variance BudgetBudget Variance Investment & Property Revenue 113,600113,600 0 97,60097,600 0 Sewer Service Charges 14,402,20014,337,200(65,000)14,834,30014,767,300(67,000) Sales to Cal Poly 882,400882,400 0 908,900929,30020,400 Development Impact Fees 154,400154,400 0 158,300158,300 0 Account Set-up Fees 105,000105,000 0 107,100107,100 0 Industrial User Charges 66,60066,600 0 67,90067,900 0 Connection Charges & Meter Sales 22,30022,300 0 22,70022,700 0 Other Revenues 6,7006,700 0 6,8006,800 0 Total 15,753,20015,688,200(65,000)16,203,60016,157,000(46,600) 2013-14 2014-15 Overall, revenue projections for FY 2013-14 and FY 2014-15 are in alignment with the 2013-15 Financial Plan. FY 2013-14 revenue projections are based upon actuals through March 31, 2014. FY 2014-15 Sewer Service Charges are projected using the HDR (the department’s rate consultant) revenue model which is based upon the following: 1. FY 2014-15 monthly sewer rates, adopted as part of the 2013-15 Financial Plan, 2. Winter water use data collected for a three-month period, route-dependent ranging between mid-November 2013 and mid-March 2014, that establishes the Average Winter Water Use (AWWU) sewer cap for billing, and 3. Sewer rate analysis that includes a review of all sewer accounts using the most recent 12- month period. Current revenue projections are slightly lower than estimated. On February 18, 2014, the City Council approved the elimination of the Average Daily Attendance rate for schools and classified schools as non-residential customers going forward. It was estimated that this change would have a revenue impact of $225,300 annually. The change became effective on March 1, 2014, and will affect revenues in 2014-15, although it appears the impact will be less than predicted. Beyond FY 2014-15, Sewer Service Charges are estimated using projected sewer B2b - 6 Attachment 1 Page 4 service rate changes applied to the most recent volume/use data. FY 2014-15 monthly sewer rates, which reflect a 3% increase effective July 1, 2014, are summarized below. FY 2014-15 Monthly Sewer Charges TYPE OF ACCOUNT Monthly Rates Base Fee Volume Fee per unit Residential – minimum base charge + volume charge Single family dwelling, including single meter condominiums and townhouses, per dwelling unit. Total monthly fee capped based on Average Winter Water Use (AWWU) $7.96 $8.77 Multi-family dwelling in any duplex, apartment house or rooming house, per account. Accounts without separate irrigation meter: Total monthly fee capped based on Average Winter Water Use (AWWU). Account with separate irrigation meter: No cap. $7.96 $8.77 Mobile home or trailer park, per account. Accounts without separate irrigation meter: Total monthly fee capped based on Average Winter Water Use (AWWU). Account with separate irrigation meter: No cap. $7.96 $8.77 Non-Residential – minimum base charge + volume charge All non-residential accounts including Schools, per account $7.96 $8.77 1 unit = 748 Gallons Each Vehicle Discharging into the City Sewer System Minimum base fee includes 1,500 gallons discharge. Volume fee per 100 gallons in excess of initial 1,500 gallons discharged $207.06 $12.47 per 100 gallons The following table compares the FY 2013-14 and FY 2014-15 monthly bill for the average Single Family Residential customer using the calculated AWWU “Sewer Cap” and approved monthly sewer rates. Development Impact Fees: Though development activities are increasing, projected FY 2014- 15 Development Impact Fees were maintained as originally estimated in the 2013-15 Financial Plan in order to keep a conservative approach to this volatile revenue source. Comparison Average Single Family Residential Sewer Customer Monthly Bill 2013-14 2014-15 AWWU SFR “Sewer Cap”: 6-Units 7-Units Rates Average Bill Rates Average Bill Base Charge: $7.73 $7.73 $7.96 $7.96 Volume Charge (Sewer Cap x Rate): $8.52/unit $51.12 $8.77/ unit $61.39 Total $58.85 $69.35 Average Increase $10.50 B2b - 7 Attachment 1 Page 5 B. OPERATING PROGRAM SUMMARY Wastewater Division operating programs are summarized in Table B. The summary reflects the operating program base budget amounts for FY 2014-15. No changes were made in any of the operating programs and the 2013-15 Financial Plan budget assumptions remain valid. 2014-15 BUDGET Wastewater Collection 906,800 232,600 3,435,900 Water Quality Laboratory 495,500 Wastewater Administration/Engineering 698,300 Wastewater Customer Service (1)298,300 574,500 6,641,900 (1) Customer Service costs are allocated 50/50 between the Sewer and Water Funds Wastewater Franchise Fees TOTAL WASTEWATER SERVICES OPERATING PROGRAMS Water Resource Recovery Facility Table B. Summary of Operating Programs Pretreatment C. CAPITAL IMPROVEMENT PLAN SUMMARY Capital improvement project expenses are forecast based on infrastructure maintenance and repair history, individual project budget estimates, and regulatory requirements. Maintaining the wastewater system infrastructure, including major equipment upgrades, ongoing treatment processes, technology, and long-term infrastructure upgrade and replacement planning is critical to providing safe and reliable wastewater services for the community. Wastewater Division Capital Improvement Plans are summarized in Table C. B2b - 8 Attachment 1 Page 6 Table C. Capital Improvement Plan 2013-142014-152014-15 BUDGETBUDGET Proposed Wastewater Collection Collection System Improvements 562,8431,205,0001,582,000 Calle Joaquin Lift Station 3,300,000 Madonna Lift Station 100,000 0 520,500 Margarita Lift Station 100,000900,000 0 Foothill Lift Station 100,000 Fleet Replacement: Portable Generators (50% share)152,900152,900 1/2 ton Pickup 29,500 00 Hydro-Cleaner 362,300 00 Water Resource Recovery Facility Major Maintenance 981,348360,000360,000 WRRFEnergy Efficiency Design 518,325 Construction 9,002,000 WRRF Upgrade Study 150,000 Design 1,500,0002,000,0002,000,000 Construction Management 2,225,383 4-Wheel Drive Loader 30,200 Compact Pickup Truck 26,800 Fleet Replacement: Service Body Truck 36,80036,800 Administration & Engineering Street Reconstruction 11,000 Sedan 16,200 Shared - Mobile Equipment Lifts & Safety Stands 13,20013,200 Total Wastewater Services CIP Requests 19,015,8994,667,9004,665,400 Shared Information Technology Network Switching Infrastructure Replacement 33,50033,500 Office Application Software Replacement 26,0009,0009,000 Total Share of Information Technology CIP 26,00042,50042,500 Carryover from 2012-13 2,981,682 TOTAL SEWER FUND CAPITAL PLAN 22,023,5814,710,4004,707,900 B2b - 9 Attachment 1 Page 7 D. DEBT SERVICE SUMMARY The Sewer fund’s debt service obligations are summarized in Table D. Table D. Debt Service Summary 2014-15 Budget Current 2009 Public Safety Radio System Upgrade $42,600 2009 Public Safety Communications Center $32,500 I-Bank Loan for Tank Farm Lift Station $560,300 Private Placement for Tank Farm Lift Station $185,400 WRRF Energy Efficiency Project $584,500 Total $1,405,300 The Water Resource Recovery Facility (WRRF) Energy Efficiency Project began in 2013-14 with the first debt payment due in 2014-15 as outlined above. The WRRF upgrade project is in its planning stage, with debt service being programmed in 2017-18. V. MAJOR ACTIVITIES AND PROGRAMS A. 2013-14 Updates 1. Laguna Lift Station and Calle Joaquin Lift Station Siphon and Forcemain Laguna Lift Station construction has been completed and the new station is operating efficiently requiring minimal amounts of staff time for operations and maintenance. Calle Joaquin Lift Station, Siphon and Forcemain replacement project is currently at 50% design, with final design, environmental permitting and land acquisition anticipated to be completed Fall 2014. Construction is anticipated to commence in late 2014. 2. Regulatory Update The City has been notified by Central Coast Water Board staff (CCWB), that a revised National Pollutant Discharge Elimination System (NPDES) permit will be heard by their Board at its September 25, 2014 meeting. The new permit will require new discharge limits to meet more stringent nutrient and disinfection by-product standards. The revised permit will become effective December 1, 2014 giving the City five years to comply with the new limits. CCWB and City staff continue to discuss the revised permit to determine the most reasonable requirements for both parties. B. FY 2014-15 Forecast 1. Water Resource Recovery Facility Energy Efficiency Project In January 2014 the energy efficiency project kicked off with a ground-breaking ceremony at the WRRF. Design for all project components has been completed, equipment ordered, and demolition and installation of new equipment and facilities will be underway this summer. New cogeneration facilities, filtration, headworks and solids handling will all be optimized by a new Supervisory Control and Data Acquisition (SCADA) system. The project is anticipated to reduce the cost of the WRRF upgrade by B2b - 10 Attachment 1 Page 8 $1.5 million, reduce annual operating costs by $325,000 and help the City meet its climate action plan goals. Project completion is scheduled for May 2015. 2. Water Resource Recovery Facility Upgrade In January of this year Water Systems Consulting (WSC) was hired as the WRRF project program manager to oversee the planning and management of this complicated project. Phase 1 project planning is designed to allow the acceleration of later portions of the project such as preliminary and final design, value engineering and bidding for construction activities. A draft facilities plan is anticipated in December 2014, with development of the design RFP in 2015. Phase 1 will be completed in April 2015 with the presentation to Council of the final facility plan and RFP for design services. Design will begin in July of 2015. This process will ensure timely construction to meet the WRRF revised NPDES permit. Total project costs are estimated at $64.3 million including $3.5 million for design and $60.8 million for construction and related services. B2b - 11 Attachment 1 Page 9 EXHIBIT A 2012 SEWER ENTERPRISE FUND FINANCIAL SCHEDULES B2b - 12 Attachment 1 Page 10 EXHIBIT B SEWER RATE STRUCTURE HISTORY Current policies to guide rate structure setting:  Comply with legal requirements  Encourage conservation  Ensure revenue adequacy to fully meet system operating and capital needs  Provide equity and fairness between customers  Be easy to understand and administer  Facilitate ongoing review to maintain rate stability The City Council approved the residential volume-based sewer rate structure effective July 1, 2007 delivering a sewer rate structure with a base fee and volume charge to reflect the individual customer’s usage and associated sewer charges. The volume based sewer rate structure encourages water conservation and achieves fairness and equity among residential customer classes — customers with low use pay less and customers with higher usage pay more. Prior to 2007, the single family residential sewer rate structure was a fixed charge which did not reflect the individual customer’s water use and associated demand placed on the wastewater system. With the residential volume-based sewer rate structure, the individual customer’s metered water use during the winter months, when outdoor irrigation should be turned down or off and water use should be most reflective of the demand placed on the wastewater system for sewer charges, is used to establish a “sewer cap”. The water use during the winter months is averaged to establish the sewer cap. Residential sewer caps are implemented with the first full sewer service period after July 1st. Sewer charges are based on actual water usage up to the customer’s sewer cap, which is most reflective of that customer’s demand on the wastewater system. When a new customer account is activated, single family residential accounts start with an 8-unit sewer cap and multi-family residential accounts start with a 6-unit sewer cap until the customer establishes their individual sewer cap based on their average winter water use, as established in the winter months. Eight units was selected as it is representative of winter water use for new customers. After an individual cap has been established, a customer will not be charged more than the cap. Conversely a customer may be charged less if their monthly water usage is below the cap. The City’s sewer rate structure includes a minimum base charge plus a volume fee based on the volume of water used. B2b - 13 CHANGES IN FINANCIAL POSITION - SEWER FUND 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 Revised Budget Budget Projection Projection Projection Projection Projection Projection Revenues Investment and Property Revenues 113,600 97,600 127,100 160,600 58,200 82,000 105,000 88,300 Service Charges Customer Sales Sewer Service Charges 14,337,200 14,767,300 15,210,300 15,666,600 15,979,900 16,299,500 16,625,500 16,958,000 Sales to Cal Poly 882,400 929,300 957,200 985,900 1,005,600 1,025,700 1,046,200 1,067,100 Development Impact Fees 154,400 158,300 163,500 168,900 174,800 180,900 187,700 194,800 Account Set-Up Fees 105,000 107,100 110,100 113,200 116,600 120,100 123,700 127,400 Industrial User Charges 66,600 67,900 69,800 71,800 74,000 76,200 78,500 80,900 Connection Charges and Meter Sales 22,300 22,700 23,300 24,000 24,700 25,400 26,200 27,000 Other Revenue 6,700 6,800 7,000 7,200 7,400 7,600 7,800 8,000 Total Revenue 15,688,200 16,157,000 16,668,300 17,198,200 17,441,200 17,817,400 18,200,600 18,551,500 Expenditures Operating Programs Public Utilities 7,152,763 6,641,900 6,821,800 7,008,400 7,218,700 7,429,200 7,645,900 7,868,900 General Government 1,609,600 1,291,008 1,323,300 1,356,400 1,397,100 1,439,000 1,482,200 1,526,700 Total Operating Programs 8,762,363 7,932,908 8,145,100 8,364,800 8,615,800 8,868,200 9,128,100 9,395,600 Capital Improvement Plan 22,023,581 4,707,900 4,356,300 62,476,400 1,620,300 1,809,700 5,155,500 875,000 Debt Service 974,500 1,405,300 1,437,820 5,253,344 5,251,263 5,248,677 5,204,885 5,206,887 Total Expenditures 31,760,444 14,046,108 13,939,220 76,094,544 15,487,363 15,926,577 19,488,485 15,477,487 Other Sources (Uses) Projected Retirement Buyouts PERS employer rate increase (22,200)(45,500)(46,600)(47,800)(49,000)(50,200)(51,500) Proceeds from Debt Financing 7,249,000 50,750,000 Cashflow adj Other Sources (Uses)(38,653) Total Other Sources (Uses)7,210,347 (22,200)(45,500)50,703,400 (47,800)(49,000)(50,200)(51,500) Revenues and Other Sources Over (Under) Expenditures and Other Uses (8,861,897)2,088,692 2,683,580 (8,192,944)1,906,037 1,841,823 (1,338,085)3,022,513 fund balance to adj to CAFR Working Capital, Beginning of Year 16,937,500 8,075,603 10,164,295 12,847,874 4,654,930 6,560,967 8,402,791 7,064,706 Working Capital, End of Year 8,075,603 10,164,295 12,847,874 4,654,930 6,560,967 8,402,791 7,064,706 10,087,219 Reserve (20% of operating)1,752,500 1,586,600 1,629,000 1,673,000 1,723,200 1,773,600 1,825,600 1,879,100 Rate Stabilization Reserve (5% of sales)761,000 784,800 808,400 832,600 849,300 866,300 883,600 901,300 Capital Reserve for WRF upgrade 1,674,700 2,774,700 6,274,700 Unreserved Working Capital 3,887,403 5,018,195 4,135,774 2,149,330 3,988,467 5,762,891 4,355,506 7,306,819 B2b - 14 Attachment 1 Exhibit A.2 PROJECTION ASSUMPTIONS - SEWER FUND CATEGORIES 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 Utilities Service Fees CPI Projections 1.4%2.0%2.8%2.8%3.0%3.0%3.0%3.0% Debt Service - State Revolving Fund Loan $0 $0 $0 $0 $0 $0 $0 $0 Debt Service - Energy Conservation Projects $0 $0 $0 $0 $0 $0 $0 $0 Debt Service - 2009 Public Safety Radio System Upgrade $42,600 $42,600 $42,100 $41,800 $41,800 $41,300 $0 $0 Debt Service - 2009 Public Safety Communications Center $32,800 $32,500 $32,500 $32,500 $32,400 $32,400 $32,300 $32,100 Debt Service - I-Bank Loan for Tank Farm Lift Station $561,100 $560,300 $559,400 $558,500 $557,500 $556,600 $555,600 $554,500 Debt Service - Private Placement for Tank Farm Lift Station $185,600 $185,400 $185,100 $184,500 $183,700 $182,700 $181,500 $185,000 Debt Service - Water Reclamation Facility Upgrade $0 $0 $0 $3,817,500 $3,817,500 $3,817,500 $3,817,500 $3,817,500 Debt Service - WRF Energy Efficiency Project (15 Years)$152,400 $584,500 $618,720 $618,544 $618,363 $618,177 $617,985 $617,787 Development Impact Fee Growth Rate 0.25%0.50%0.50%0.50%0.50%0.50%0.75%0.75% Working Capital Requirement @ 20% of operating expenditures $1,752,500 $1,586,600 $1,629,000 $1,673,000 $1,723,200 $1,773,600 $1,825,600 $1,879,100 Debt Service Coverage at 110% of Net Revenues (2)695%574%581%165%165%167%171%172% Sewer Service Rate Increase 4.0%3.0%3.0%3.0%2.0%2.0%2.0%2.0% (1) Development Impact Fee revenue is a based on Resolution No. 9582 (2004) and calculated as follows: Base year 2011-12 revenue: $151,900 Adjusted base increased by projected CPI and growth $154,400 $158,300 $163,500 $168,900 $174,800 $180,900 $187,700 $194,800 Factors assumed to reduce development impact fee collection: base revenue adjustment for one-time large developments; maps vested prior to establishment of current development impact fees, and; lower than 1% per year growth. A study is currently underway to update the Wastewater Development Impact Fees based on current demographics and revised cost estimates for Master Plan infrastructure projects. At this time, based on preliminary information, it is anticpated that the outcome of this study may include recommendations for fee revisions to the wastewater impact fees. (2) State Revolving Fund (SRF) and California Infrastructure and Economic Development Bank (I-Bank) requires overall coverage of 1.1 times maximum annual debt service for all outstanding debt. B2b - 15 Attachment 1 Exhibit A.3 CAPITAL IMPROVEMENT PLAN - SEWER FUND PROJECT DETAIL AND PHASING - PUBLIC UTILITIES 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 BUDGET BUDGET PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED Wastewater Collection Collection System Improvements 422,843 1,582,000 2,184,600 1,135,000 1,285,000 600,000 1,590,000 Collection System Infrastructure Replacement Strategy Calle Joaquin Lift Station Design Construction 3,000,000 Construction Management 300,000 Madonna Lift Station Design 100,000 520,500 Construction Construction Management Margarita Lift Station Design 100,000 Construction 800,000 Construction Management 100,000 Foothill Lift Station Design 100,000 Construction 800,000 Construction Management 100,000 Buckley Lift Station Design 500,000 Construction 2,000,000 Construction Management 500,000 Marsh Street Siphon 40,000 240,000 Sewerline Repl Rachel 50,000 Sewerline Repl Stafford 50,000 Fleet Particulate Matter Trap Retrofit Fleet Replacement: 1/2 Ton Pickup 29,500 Fleet Replacement: Hydro-Cleaner 362,300 343,100 Fleet Replacement: Portable Generators (50% share)152,900 Equipment Replacement: Generator (50% share) Fleet Replacement: CCTV Van 169,100 Fleet Replacement: 1 1/2 Ton Service Trucks 182,700 Fleet Replacement: Portable Sewage Pump 36,900 Fleet Replacement: Caterpillar Mini Escavator (pooled)111,200 Total Collection 4,554,643 2,255,400 3,493,700 2,217,700 1,285,000 1,248,100 4,433,100 - Water Resource Recovery Facility Major Maintenance 798,500 360,000 775,000 675,000 280,000 450,000 640,000 875,000 WRRF Energy Efficiency Design 518,325 Construction 9,002,000 WRRF Upgrade Study/Environmental 150,000 Design 1,500,000 2,000,000 Construction Infrastructure 15,590,000 Nutrient Removal 39,460,000 Construction Management 2,225,383 4,500,000 Digester 2 Cleaning 113,098 WRF Sludge Bed 69,750 Fleet Replacement: Service Body Truck 36,800 Fleet Replacement: Utility Trucks (3)54,600 WASTEWATER SERVICES B2b - 16 Attachment 1 Exhibit A.3 CAPITAL IMPROVEMENT PLAN - SEWER FUND PROJECT DETAIL AND PHASING - PUBLIC UTILITIES 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 BUDGET BUDGET PROPOSED PROPOSED PROPOSED PROPOSED PROPOSED PROPOSEDWASTEWATER SERVICES Fleet Replacement: Sedan 33,000 33,700 Fleet Replacement: 4-Wheel Drive Loader 30,200 Fleet Replacement: Pickup Truck w/Flat Bed & Crane 104,000 Fleet Replacement: Top-Kick Dump Truck (pooled)0 Fleet Replacement: Compact Pickup Truck 26,800 Fleet Replacement: Decanter Trailer 7,600 Total WRRF 14,434,056 2,396,800 862,600 60,225,000 280,000 561,600 673,700 875,000 Total without CIPs under Debt Financing 5,432,056 5,175,000 Pretreatment Fleet Replacement: Pickup Truck 25,900 Total Pretreatment 0 0 0 0 0 0 25,900 0 Water Quality Laboratory Fleet Replacement: Pickup Truck 22,800 Total Quality Laboratory 0 0 0 0 0 0 22,800 0 Administration and Engineering Street Reconstruction 2013 11,000 Fleet Replacement: Sedan 16,200 33,700 Shared - Mobile Equipment Lifts & Safety Stands 13,200 Total Admin 27,200 13,200 0 33,700 0 0 0 0 1,000,000 1,250,000 Total Wastewater Services CIP Requests 19,015,899 4,665,400 4,356,300 62,476,400 1,565,000 1,809,700 5,155,500 875,000 Total Wastewater CIP without Debt Financing 10,013,899 2,268,600 3,493,700 7,426,400 1,285,000 1,248,100 4,481,800 0 Shared Information Technology Office Application Software Replacement (4% share) City Website Upgrade (4% share) Network Firewalls 8,500 Virtual Private Network (VPN) Replacement 6,200 Network Security Upgrades 5,500 Network Switching Infrastructure Replacement 33,500 Radio Handhelds and Mobile Replacements 46,400 Document Management System 3,800 Office Application Software Replacement 9,000 Enterprise Storage Growth 2,000 Storage Capacity Upgrade and Replacement 8,900 Total Share of Information Technology CIP 26,000 42,500 0 0 55,300 0 0 0 Carryover from 12-13 2,981,682 TOTAL SEWER FUND CAPITAL PLAN 22,023,581 4,707,900 4,356,300 62,476,400 1,620,300 1,809,700 5,155,500 875,000 B2b - 17 Page intentionally left blank. B2b - 18