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Home My WebLink AboutItem 2E: Ratification of MWMC FY08 Regional Wastewater Program Budget and Capital Improvements ProgramECC UGENE ITY OUNCIL AIS GENDA TEM UMMARY Ratification of the Metropolitan Wastewater Management Commission FY08 Regional Wastewater Program Budget and Capital Improvements Program Meeting Date: May 14, 2007 Agenda Item Number: 2E Department: Public Works Staff Contact: Dave Breitenstein www.eugene-or.gov Contact Telephone Number: 682-8611 ISSUE STATEMENT This agenda item relates to the annual ratification process of the regional wastewater program budget and Capital Improvements Program (CIP), as established under the 1977 Intergovernmental Agreement (IGA) between the City of Eugene, City of Springfield, and Lane County and managed by the Metropolitan Wastewater Management Commission (MWMC). The MWMC was formed to provide wastewater collection and treatment services for the Eugene-Springfield metropolitan area. The regional wastewater budget provides funds for all operations, maintenance, administration, and capital project management and implementation for the Eugene/Springfield Water Pollution Control Facility, Biosolids Management Facility, Biocycle Farm, Reclaimed Water Facility, and regional wastewater pump stations. BACKGROUND The purpose of the regional wastewater program is to protect public health and safety and the environment by providing high quality wastewater management services to the Eugene-Springfield metropolitan area. The MWMC and the regional partners are committed to providing these services in a manner that is effective, efficient, and which meets customer service expectations. Since the mid-1990s, the commission and the regional wastewater program staff have worked together to identify the following key outcomes, or goals, which focus on what the fiscal budget will serve to accomplish: 1.High environmental standards 2.Fiscal management that is effective and efficient 3.A successful intergovernmental partnership 4.Maximum reliability and useful life of regional assets and infrastructure 5.Public awareness and understanding of MWMC, the regional wastewater system, and their relationship to Willamette River water quality These key outcomes, or goals, are in direct alignment with the Eugene City Council Goals. Every year, the MWMC develops, through a series of meetings, a budget that covers the operations, maintenance, and capital improvement projects for the regional wastewater program. The budget L:\CMO\2007 Council Agendas\M070514\S0705142E.doc combines the portions of the City of Eugene and City of Springfield budgets that are dedicated to the regional wastewater program. The commission conducted a public hearing on the proposed draft budget and subsequently adopted it on April 19, 2007. The commission’s adopted budget is attached for City Council consideration (see Attachment A). The budget reflects the continuing focus on design and construction of capital improvements in the approved 2004 Facilities Plan, needed to ensure that the operation of the Regional Wastewater Facilities meets increasing environmental regulations and that collection and treatment capacity will be available to provide for growth in the service area. The adopted budget includes an 11% increase in administrative (largely CIP management) costs and a 4% increase in operations and maintenance expenses. During the April 19 meeting, the commission also approved an 8% increase in the regional wastewater user rates to generate revenue for the proposed budget and pursuant to the recommendations of the MWMC financial advisor, consistent with the commission’s Financial Plan policies and net revenue objectives. RELATED CITY POLICIES Not applicable. COUNCIL OPTIONS 1. Approve motion to ratify the FY08 MWMC budget. 2. Return the FY08 MWMC Regional Wastewater Program Budget and Capital Improvements Program to MWMC with specific modification requests for reconsideration. CITY MANAGER’S RECOMMENDATION The City Manager recommends ratification of the proposed FY08 MWMC Budget. SUGGESTED MOTION Move to ratify the FY08 MWMC Budget. ATTACHMENTS A. MWMC FY08 Proposed Regional Wastewater Program Budget and Capital Improvements Program FOR MORE INFORMATION Staff Contact: Dave Breitenstein Telephone: 682-8611 Staff E-Mail: dave.a.breitenstein@ci.eugene.or.us L:\CMO\2007 Council Agendas\M070514\S0705142E.doc EXHIBIT 6 REINL WTEWTER PRRM GOAASAOGA ITINUMMRY P OSOSA BUDGETBUDGET PROPOSED CLASSIFICATIONFY 05-06FY 06-07FY 07-08CHANGE SPRINGFIELD ENVIRONMENTAL SERVICES & FINANCE ucorsrector.... PbliWkDi005005005000 anager.... ESD/MWMCM075075075000 sst.anage.... ESD/MWMCAMr090090090000 nvroervcesupervsorewerranage.... EiSiSi/S&Di050050050000 nvroervcesupervsorretreatoutonrev.... EiSiSi/P&PlliP095095095000 upervsngvngneer.... SiiCiilEi100200200000 vngnee...-. CiilEir200200100100 ngneerngssstant.... EiiAi235235245010 ucnormatonucatonpecast.... PbliIfi&EdiSili065065065000 enoranagementnayst.... SiMAl000000000000 ecretary.... S080080080000 er.... ClkII080080080000 ccountant.... A100080080000 ccountnganage.... AiMr020020020000 ngneerngssstantpecaroect.... EiiAi(SilPj)000100100000 esgnonstructonoornato.... Di&CiCdir000300400100 enornvronmentaecnca.... SiEilThiin090090090000 onstructonnspector.... CiIII100200200000 nvronmentaervcesecncan.... EilSiThiiI050050050000 TTLPRINFIELD.5.5.5. OASG143201202010 EXHIBIT 8 ADOPTEDAMENDEDPROPOSED * ACTUALCHANGE BUDGETBUDGETBUDGET FY 05-06FY 06-07FY 06-07FY07-08INCR/(DECR) Personnel Services$915,793$1,575,538$1,575,538$1,728,021$152,483 10% Materials & Services492,0451,799,8001,996,6002,019,688219,888 12% Capital Outlay00000 NA Budget Summary$1,407,838$3,375,338$3,572,138$3,747,709$372,371 11% 5-YEAR MWMC ADOPTED BUDGET COMPARISON SPRINGFIELD ADMINISTRATION $4,000,000 $3,747,709 $3,375,338 $3,500,000 $2,936,195 $3,000,000 $2,726,362 $2,500,000 $1,835,789 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 FY 03-04FY 04-05FY 05-06FY 06-07FY 07-08 EXHIBIT 13 Regional Wastewater 5-Year Capital Programs FY 07-08FY 08-09FY 09-10FY 10-11FY 11-12TOTAL CAPITAL PROJECTS Biosolids Management Biocycle Farm - Poplar Plantation III372,000372,000 Line Biosolids Lagoon - Phase I1,503,5081,503,508 Line Biosolids Lagoon - Phase II2,894,0002,894,000 Line Biosolids Lagoon - Phase III3,191,0003,191,000 Non-Process Facilities and Facilities Planning River Avenue Improvements498,637498,637 WWFMP Update413,972413,972 FacilityPlan Engineering Services55,12557,88160,77563,81467,005304,600 2010 Facility Plan Update221,000221,000 OutfallMixing Zone Study186,000186,000 Conveyance Systems Glenwood Pump Station Upgrade741,500741,500 Influent PS/Willakenzie PS/Headworks26,738,65226,738,652 Plant Performance Improvements Clarifier Improvements5,591,3375,591,337 Primary Sludge Thickening4,378,0004,378,000 Digester Mixing Improvements690,281690,281 Waste Activated Sludge Thickening 3,391,000 3,391,000 Odorous Air Treatment I9,257,7059,257,705 Odorous Air Treatment II1,704,0001,704,000 Aeration Basin Improvements Phase I7,990,1297,990,129 ParallelPrimary /Secondary Treatment1,500,00015,338,00016,838,000 Sodium Hypochlorite Conversion12,760,00012,760,000 Tertiary Filtration I1,500,00013,185,00014,685,000 Tertiary Filtration II8,361,0008,361,000 Effluent Reuse I2,791,0002,791,000 Effluent Reuse II5,230,0005,230,000 Bankside Outfall3,000,0003,000,000 Repair/Replace.of Biosolids Force Main100,0001,400,0001,500,000 TOTAL CAPITAL PROJECTS 76,226,34636,178,8815,290,77512,678,3144,858,005135,232,321 ASSET MANAGEMENT Equipment Replacement486,5341,858,878671,835403,4042,355,1035,775,754 Major Rehab270,000860,000380,000745,000318,7642,573,764 Major Capital Outlay258,931258,931 TOTAL ASSET MANAGEMENT 756,5342,718,8781,310,7661,148,4042,673,8678,608,449 TOTAL CAPITAL IMPROVEMENTS 76,982,88038,897,7596,601,54113,826,7187,531,872143,840,770