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HomeMy WebLinkAboutItem 2C - MWMC Budget/CIPEUGENE CITY COUNCIL AGENDA ITEM SUMMARY Ratification of the Metropolitan Wastewater Management Commission FY04-05 Regional Wastewater Program Budget and Capital Improvements Program Meeting Date: May 24, 2004 Agenda Item Number: 2C Department: Public Works Staff Contact: Peter Ruffler www. cl. eugene, or. us Contact Telephone Number: 682-8606 AGENDA ITEM SUMMARY This is the process of annually ratifying the Metropolitan Wastewater Management Commission (MWMC) regional wastewater program budget and capital improvements program (CIP), as established under the 1977 intergovernmental agreement (IGA) between the City of Eugene, the City of Springfield, and Lane County. MWMC was formed to provide wastewater collection and treatment services for the Eugene-Springfield metropolitan area. The regional budget provides funds for all operations, maintenance, administration, and capital project management for the Eugene/Springfield Water Pollution Control Facility, the Biosolids Management Facility, the Biocycle Farm, the Seasonal Industrial Waste Facility, and the regional wastewater pump stations. BACKGROUND Council Action History Following established policies set forth in the Intergovernmental Agreement (IGA) between the City of Eugene, the City of Springfield, and Lane County, the Eugene City Council has annually ratified the MWMC regional budget. Last year, the Eugene City Council ratified the MWMC regional wastewater program budget and CIP on May 12, 2003. Policy Issues Ratification of the annual regional wastewater program budget is necessary to maintain provision of wastewater collection and treatment services to the Eugene/Springfield community. Failure to ratify by any of the governing bodies that are signatory to the MWMC intergovernmental agreement results in the current year regional wastewater budget being rolled forward until any disputes over the budget are resolved. Shortfalls in revenue necessary to meet increased expenses in FY04-05, such as those related to increased energy and chemical expenses and higher labor costs, may increase the risk of noncompliance with regulatory requirements or other operational or maintenance restrictions resulting in decreased efficiencies and higher longer-term costs from deferred activities. L:\CMO\2004 Council Agendas\M040524\S0405242C.doc Council Goals The MWMC regional wastewater program budget and CIP is related to the City Council goal of: · FAIR, STABLE AND ADEQUATE FINANCIAL RESOURCES A local government whose ongoing financial resources are based on a fair and equitable system of taxation and other revenue sources and are adequate to maintain and deliver municipal services Financial and/or Resource Considerations The budget presented herein for ratification is for the regional wastewater program only as MWMC contracts with the City of Eugene for operation and maintenance of the regional facilities and with the City of Springfield for administration and capital program management. The City of Eugene's budget for providing these services is included in the Public Works Department budget. Funding for the operations and maintenance of the local wastewater system, including sewer lines and pump stations, is addressed separately within the Public Works Department budget. Other Background Information 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. MWMC and the regional partners are committed to providing these services in a manner that is effective, efficient, and 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 the relationship to Willamette River water quality. These key outcomes, or goals, are in direct alignment with the City of Eugene Council Goals. Timing Ratification of the FY04-05 MWMC budget by the Eugene City Council needs to occur prior to June 21, 2004, in order to avoid interruption in operation as of July 1, 2004. If the Eugene City Council elects to pursue Option 2 below and return the budget to MWMC with specific modification requests, the ratification process would begin again with all three governing bodies. OPTIONS 1. Approve motion to ratify budget. 2. Return the FY04-05 MWMC regional wastewater program budget and CIP to MWMC for modification with specific requests for reconsideration. L:\CMO\2004 Council Agendas\M040524\S0405242C.doc STAFF RECOMMENDATION Staff recommends that the City Council ratify the proposed FY04-05 MWMC Regional Wastewater Program budget and CIP. SUGGESTED MOTION Move to ratify the FY04-05 MWMC Regional Wastewater Program budget and CIP. ATTACHMENTS A. FY04-05 MWMC Regional Wastewater Program Budget and CIP FOR MORE INFORMATION Staff Contact: Peter Ruffler Telephone: 682-8606 Staff E-Mail: peter.j.ruffler~ci.eugene.or.us L:\CMO\2004 Council Agendas\M040524\S0405242C.doc ATTACHMENT A Metropolitan Wastewater Management Commission WASTE WA TER. ~tNA GEMENT ~ ~7~:.~D~?.~. ,~.37 ),6 partners in wastewater management Commission Mr. Dennis Taylor, City Manager Anne Ballew Springfield City Councilor City of Eugene MW/VIC President 777 Pearl Street Eugene, OR 97401 Bill Inge Lane County Citizen MWMC Vice-President Subject: Metropolitan Wastewater Management Commission (MWMC) Anna Morrison FY 04-05 Regional Wastewater Program (RWP) Budget and Lane County Capital Improvements Program (CIP) Commissioner George Poling Dear Mr. Taylor: Eugene City Councilor On April 22 through May 6, 2004, the MWMC held a public hearing on the FY Walt Meyer 04-05 Regional Wastewater Program (RWP) Budget and Capital Eugene Citizen Improvements Program (CIP). At the May 6 meeting, the FY 04-05 RWP Deborah Evans Budget and ClP were approved. The FY 04-05 RWP Budget funds operating Eugene Citizen and capital project requirements, and maintains targeted contributions to reserves. Doug Keeler Springfield Citizen Consistent with the Intergovernmental Agreement, the RWP Budget and CIP need to be ratified by the governing bodies of Eugene, Springfield and Lane Administration County prior to final adoption by MWMC. Please forward the enclosed budget documents to the Eugene City Council for their consideration on May Susan Smith 24, 2004. If I can be of any additional assistance, please contact me at 726- Environmental Services/ 3697. MWMC General Manager City of Springfield 225 Fifth Street Thank you for your consideration and assistance in this matter. Springfield Oregon 97477 (541) 726-3694 FAX (541) 726-2309 Sincerely, Operations ~ Peter Ruffler Susan L. Smith Director MWMC General Manager City of Eugene Wastewater Division 410 River Avenue eugene Oregon 97404 (541) 682-8600 FAX(541) 682-8601 City Council Agenda page 93 Metropolitan Wastewater Management Commission partners in wastewater management REGIONAL WASTEWATER PROGRAM BUDGET and CAPITAL IMiPROVEMENTS PROGRAM FY 04-05 REGIONAL WASTEWATER PROGRAM BUDGET and CAPITAL IMPROVEMENTS PROGRAM FY 04-05 The Metropolitan Wastewater Management Commission adopted its Operating Budget and Capital Improvements Program (CIP) for FY 04-05 on ~ ~o , 2004. The Budget and CIP were ratified by the Eugene City Council on May __12, 2004, the Lane County Board of Commissioners on May ,2004, and the Springfield City Council on June __, 2004. The Commission gave final ratification to the budget and CIP on June ,2004. COMMISSION MEMBERS: Anne Ballew, President (SPringfield) Bill Inge, Vice-President (Lane County) Doug Keeler, (SPringfield) Walt Meyer, (Eugene) Anna Mordson, (Lane County) George Poling, (Eugene) Deborah Evans, (Eugene) STAFF: Dan E. Brown, MWMC Executive Officer/Springfield Public Works Director Susie Smith, MWMC General Manager/Springfield Environmental Services Manager Peter Ruffler, Eugene Wastewater Division Director Robert Duey, MWMC Finance Officer/Springfield Finance Director METROPOLITAN WASTEWATER MANAGEMENT COMMISSION METROPOLITAN WASTEWATER MANAGEMENT COMMISSION PROPOSED FY 04-05 BUDGET AND CAPITAL IMPROVEMENTS PROGRAM for the REGIONAL WASTEWATER PROGRAM TABLE OF CONTENTS Budget Message ..................................................................................................................... 1 Regional Wastewater Program Overview .............................................................................. 4 Exhibit 1: I_nteragency Coordination Structure ............................................................... 9 Regional Wastewater Program Budget and Program Summary .......................................... 10 Exhibit 2: Regional Operating Budget Summary ........................................................... 10 Exhibit 3: Regional Capital Programs ............................................................................ 18 Exhibit 4: Line Item Summary by Program Area ........................................................... 19 Exhibit 5: Budget Summary and Comparison ................................................................ 20 Regional Wastewater Program Staffing ................................................................................. 23 Exhibit 6: Regional Wastewater Program Organizational Chart .................................... 23 Exhibit 7: Regional Wastewater Program Position Summary ........................................ 24 Regional Wastewater Capital Programs Budget .................................................................... 26 Exhibit 8: Capital Programs - Proposed Capital Improvements Program Projects ....... 29 Exhibit 9: Capital Programs 5-Year Plan ........................................................................ 32 Regional Wastewater Program Reserves ............................................................................... 34 Exhibit 10: Reserves - Line Item Budget ........................................................................ 38 BUDGET APPENDICES Appendix A: Springfield Program and Budget Detail .......................................................... 39 Exhibit 11: Springfield Administration Program Budget Summary ...............................40 Exhibit 12: Springfield Administration Line Item Summary ......................................... 41 Appendix B: Eugene Program and Budget Detail ................................................................ 42 Exhibit 13: Eugene O & M Program Budget Summary ................................................. 45 Exhibit 14: Eugene Administration Line Item Summary ............................................... 46 5-Year Capital Improvements Program ............................................................ i ....... ............. 47 Metropolitan Wastewater Management Commission Budget Message BUDGET MESSAGE METROPOLITAN WASTEWATER MANAGEMENT COMMISSION MEMBERS: Introduction Consistent with the Intergovernmental Agreement, I am presenting a proposed budget for FY 04- 05 that funds operations, administration, and capital projects planned for the Regional Wastewater Program (RWP). The Metropolitan Wastewater Management Commission (MWMC) administration and Capital Improvements Program (CIP) components of the budget are reflected in the regionally funded portions of the City of Springfield's Environmental Services Division, Public Works Administration and Finance Department budgets. The operations, maintenance, equipment replacement, and major rehabilitation components are reflected in the regionally funded portions of the City of Eugene's Wastewater, Engineering and Maintenance Divisions' budgets. The Cities' Industrial Pretreatment Programs, managed locally in compliance with the MWMC Model Ordinance, also are included in the RWP budget. The CD portion of the budget for FY 04-05 includes funding for several ongoing capital projects, including: development of the Biocycle Farm and associated reclaimed water distribution infrastructure, and completion of the MWMC Facility Plan for the Regional Wastewater Facilities. Unexpended funds for these projects, which were budgeted in FY 03-04, are being carded forward into FY 04-05 to support actual project schedules. New capital projects in the FY 04-05 CIP and budget include improvements to the primary clarifiers, secondary clarifiers, and the south aeration basins, among others. Other Capital Programs, including Major Rehabilitation, Equipment Replacement, and Major Capital Outlay also are fully funded in the proposed FY 04-05 CIP and budget. The proposed FY 04-05 RWP Operating Budget includes a 5.65 FTE increase in the City of Springfield staffing necessary to begin the coordination, design and construction management for the new capital projects identified in the MWMC Facility Plan. City of Eugene staffing also will increase by 2.22 FTE to account for reallocation of staff in regional versus local programs and a modest increase in new personnel in the Wastewater Division. Except for staffing levels, RWP managers prepared budgets that absorb unavoidable cost increases where possible. Most of the proposed budget increases associated with ongoing administration and operations are for non- discretionary costs such as fees, utilities and employee benefits. The proposed FY 04-05 RWP Operating Budget increases the user fee contribution to the Capital Reserve to $3,000,000, after a one-year reduction. This action was in keeping with Commission direction and the 200,~ MWMC Financial Plan, and will be needed to help fired upcoming capital projects. Together, these actions result in a 39% increase in the FY 04-05 Operation Budget as compared to the originally .adopted FY 03-04 Operating Budget. The revenues required to fund the FY 04- 05 Operating Budget will necessitate a 24% user rate increase. This new rate will result in an average residential billing of $11.28 per month, based on a typical residential water consumption of 5,000 gallons. April, 2004 DRAFT Page 1 FY 04-05 BUDGET AND CIP Metropolitan Wastewater Management Commission Budget Message Budget Highlights · FY 04-05 staffing allocations to the RWP have increased, in order to accommodate the increased workload associated with the management, design and funding of new capital projects. The total FTE for the RWP in FY 04-05 is budgeted at 84.41; as compared to 76.54 in FY 03-04; this includes 5.65 FTE for Springfield associated with capital projects and document archiving, while the Eugene Wastewater Division added 2.22 FTE to address shifting priorities and funding allocations. · With the exception of new staff, RWP personnel services costs will increase by about 3.8% overall which reflects the combined effects of projected 1% cost of living adjustment for Eugene, and a 2.5% cost of living adjustment for Springfield. The remainder largely due to increases in health insurance. · The proposed FY 04-05 materials and services budget reflect staff's efforts to maintain the overall RWP budget as flat as possible, while accommodating new staff and unavoidable increases in areas such as insurance premiums. Budget Assumptions The following assumptions and/or projections form the basis of the FY 04-05 RWP Operating Budget: · The MWMC Key Outcomes and corresponding performance measures for FY 04-05, along with the MWMC Services Agreement, form the basis for the RWP Work Plan and Operating Budget. · New National Pollutant Discharge Elimination System (NPDES) discharge permit requirements will be addressed operationally and in planning/development of CD projects,' and all permit conditions are intended to be met. · New environmental challenges (e.g. Clean Water Act regulations) will be monitored and responded to. · The addition of new staffwill lead to increased expenditures in some materials and services categories. Where possible, ongoing expenses are held fiat or reduced to offset unavoidable increases in some budget categories. · For budget purposes, utility costs at the RWP facilities are assumed to increase by 6%. Actual cost increases will be a function of weather and potential additional increases in Eugene Water and Electric Board's wholesale power costs. Supplemental budget actions in FY 04-05 may be needed to fully fund actual utility expenses. · Proposed annual cost of living wage adjustments include a 1% increase in base salaries for Eugene, and a 2.5% increase in base salaries for Springfield. · Property and liability insurance costs are expected to increase up to 20% over FY 03-04 amended budget levels, due to inflation and the addition of new MWMC capital assets. April, 2004 DRAFT Page 2 FY 04-05 BUDGET AND CIP Metropolitan Wastewater Management Commission Budget Message · All SIW site operations and maintenance requirements are fully integrated and funded in the residuals program. · Working Capital remains budgeted at $200,000 for Springfield and $500,000 for Eugene. · The Commission targets for funding the Operating Reserve, Capital Reserve and Equipment Replacement Reserve are met. · CI? projects budgeted in FY 04-05 will be partially completed in that timefi'ame, however, significant carryovers to FY 05-06 may result bom contractual commitments spanning both fiscal years. · Projected FY 04-05 revenues are as follows: User fees - $15,316,000; Interest - $609,909; and System Development Charges - $1,112,440. REGIONAL WASTEWATER PROGRAM RESOURCE AND EXPENDITURE SUMMARY BUDGET PROPOSED 2003 -04 2004-05 RESOURCES User Fees $11,642,000 $15,316,000 Beginning Cash 24,729,872 23,518,554 Internal Transfers 1,231,098 3,390,105 System Development Charge 850,000 1,112,440 Capital Repayment 240,000 0 Interest 437,137 609,909 Revenue Bond Proceeds 0 6,500,000 Miscellaneous 179,765 456,494 $39,309,872 $50,903,502 EXPENDITURES Reserves $20,085,327 $14,437,149 Operations 8,314,028 8,890,345 Internal Transfers 1,231,098 3,390,105 * CIP 7,843,630 21,459,541 ** Administration 1,835,789 2,726,362 $39,309,872 $50,903,502 · Includes three equipment replacement contributions totaling $390,105 and a Capital Reserve contribution of $3,000,000. · * In governmental budgeting, projects are fully budgeted in the fiscal year in which the contract is awarded. At the end of each fiscal year, unspent funds are carried forward until the project is completed. This provides budget appropriations necessary for MWMC to commit to contracts that span more than one fiscal year. Metropolitan Wastewater Management Commission Dan E. Brown Executive Officer April, 2004 DRAFT Page 3. FY 04-05 BUDGET AND CIP Metropolitan Wastewater Management Commission Overview REGIONAL WASTEWATER PROGRAM OVERVIEW The Metropolitan Wastewater Management Commission The Metropolitan Wastewater Management Commission (MWMC) was formed by Eugene, Springfield, and Lane County through an intergovernmental agreement (IGA) in 1977 to provide wastewater collection and treatment services for the Eugene-Springfield metropolitan area. The seven-member commission is composed of members appointed by the City Councils of Eugene (3 representatives), Springfield (2 representatives), and the Lane County Board of Commissioners (2 representatives). Since its inception, the Commission, in accordance with the IGA, has been responsible for oversight of the RWP including: construction, maintenance, and operation of the regional sewerage facilities; adoption of financing plans; adoption of budgets, user fees and connection fees; adoption of minimum standards for industrial pretreatment and local sewage collection systems; and recommendations for the expansion of regional facilities to meet future community growth. Staffing and services have been provided in various ways over the 27 years of MWMC's existence. Since 1983, the Commission has contracted with the Cities of Springfield and Eugene for all staffing and services necessary to maintain and support the RWP. Lane County's partnership has involved participation on the Commission and support to the Lane County Metropolitan Wastewater Service District (CSD), which managed the proceeds and repayment of general obligation bonds issued to construct RWP facilities. Regional Wastewater Program Purpose and Key Outcomes The purpose of the RWP 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 meets customer service expectations. Since the mid-1990's, the Commission and RW'P staff have worked together to identify key outcome areas within which to focus annual work plan and budget priorities. The FY 04-05 RWP work plans and budget reflect a focus on the following key outcomes or goals. In carrying out the daily activities of managing the regional wastewater system, we will strive to achieve and maintain: 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 its relation to Willamette River water quality. The Commission believes that these outcomes, if achieved in the long term, will demonstrate success of the RWP in carrying out its purpose. In order to determine whether we are successful, indicators of performance and targets have been identified for each key outcome. Tracking performance relative to identified targets over time assists in managing the RWP to achieve desired results. The following indicators and performance targets provide an important April, 2004 DRAFT Page 4 FY 04-05 BUDGET AND CI2P Metropolitan Wastewater Management Commission Overview framework for the development of the FY 04-05 RWP Operating Budget, Capital Improvements Program and associated work plans. Outcome 1: Achieve and maintain high environmental standards. Indicators: Performance: FY 02-03 FY 03-04 FY 04-05 Actual Projected Target · Number of overflows 0 1 0 · Number of NPDES permit effluent 0 0 0 limit violations · Biosolids quality--all regulated <50% EPA <50% EPA <50% EPA contaminants · Amount of reclaimed wastewater 947 n/a 1,500 beneficially reused (million gallons) Outcome 2: Achieve and maintain fiscal management that is effective and efficient. Indicators: Performance: FY 02-03 FY 03-04 FY 04-05 Actual Projected Target · Annual Budget and Rates meet N/A Policies Met Policies Met MWMC Financial Plan Policies · Annual audited financial 100% Clean Clean audit Clean audit statements audit Outcome 3: Achieve and maintain a successful intergovernmental partnership. Indicators: Performance: FY 02-03 FY 03-04 FY 04-05 Actual Projected Target · Model Pretreatment Ordinance-- No changes Successful Evaluated, developed and adopted regionally needed update No Update (MWMC); implemented by two Needed cities · Wet Weather Flow Management Adopted by Scheduled Scheduled Plan--developed and adopted MWMC and two Implementation Implementation regionally (MWMC); cities Completed Completed implemented by two cities · Conflicts referred to governing bodies for resolution 0 0 0 April, 2004 DRAFT Page 5 FY 04-05 BUDGET AND CIP Metropolitan Wastewater Management Commission Overview Outcome 4: Maximize reliability and useful life of regional assets and infrastructure. Indicators: Performance: FY 02-03 FY 03-04 FY 04-05 Actual Projected Target · Percent of scheduled preventative maintenance completed 85% 84% 85% 90% 97% 90% ·Percent ofplarmed maintenance work N/A Assessment Conduct · Maintain infrastructure in good to excellent condition (rating scale 0 completed, scheduled to 5, with 5 being excellent) ratings from 4.0 maintenance. to 5.0 Assessment in documented FY 07-08 Outcome 5: Achieve and maintain public awareness and understanding of MIFMC, the regional wastewater system and its relationship to }Yillamette River water quality. Indicators: Performance: FY 02-03 FY 03-04 FY 04-05 Actual Projected Target · MWMC Annual Report Outline Deferred to FY Produced prepared 04-05 · Updated MWMC Informational Complete Brochures -- -- Portfolio · Public Information Program for Materials WPCF expansion/upgrades N/A N/A Developed Roles and Responsibilities In order to effectively oversee and manage the RWP, the partner agencies provide all staffing and services to MWMC. The following sections describe the roles and responsibilities of each of the partner agencies, and how intergovernmental coordination occurs on behalf of the Commission. City of Eugene The City of Eugene supports the RWP through representation on MWMC, provision of operation and maintenance services, and active participation on interagency project teams and committees. Three of the seven MWMC members represent Eugene--two citizens and one City Councilor. Pursuant to the IGA, the Eugene Wastewater Division operates and maintains the Regional Water Pollution Control Facility (WPCF), the Biosolids Management Facility (BMF) and associated residuals and reclaimed water activities, along with regional wastewater pumping stations and transmission sewers. In support of the RWP, the Division also provides technical April, 2004 DRAFT Page 6 FY 04-05 BUDGET AND Metropolitan Wastewater Management Commission Overview services for wastewater treatment; management of equipment replacement and infrastructure reh.abilitation; biosolids treatment and recycling; Industrial Source Control and Pretreatment Program (in conjunction with Springfield staff); and regional laboratory services for wastewater and water quality analyses. These services are provided under contract with MWMC through the regional funding of 70.36 FTE. City of Springfield The City of Springfield supports the RWP through representation on MWMC, provision of MWMC administration services, and active coordination of and participation on interagency project teams and committees. Two MWMC members represent Springfield--one citizen and one City Councilor. Pursuant to the IGA, the Springfield Public Works Director and the Environmental Services Manager serve as the MWMC Executive Officer and General Manager, respectively. The Environmental Services Division and Finance Department staff provide ongoing staff support to the Commission and administration of the RWP in the following areas: legal and risk management services; financial management and accounting; coordination and management of public policy; regulatory and permit compliance issues; coordination between the Commission and the governing bodies; long-range capital project planning, design, and construction management; coordination of public information, education, and citizen involvement programs; and coordination and development of regional budgets, rate proposals, and revenue projections. Springfield staff also provide local implementation of the Industrial Source Control Pretreatment Program, as well as billing coordination and customer service. These services are provided under contract with MWMC through the regional funding of 12.85 FTE of Public Works Department staff and 1.2 FTE of Finance Department staff, as reflected in the proposed FY 04-05 budget. Lane County Lane County supports the RWP through representation on MWMC, by participation on some of the interagency project teams, and by maintaining the CSD. Two MWMC members represent Lane County--one citizen and one County Commissioner. The Board of County Commissioners oversees the CSD, including administration of local bond proceeds and governance of the District. The District was formed, under agreement with MWMC and the partner agencies, to enable long-term financing of regional facilities through issuance of General Obligation bonds. The CSD adopts an annual budget for CSD funds, which is separate fi.om the MWMC budget. The bond debt, which was retired in ~ugnst, 2002, was repaid by CSD through an annual property tax assessment for Eugene and Springfield properties connected to the sewerage system. Sewer users in the unincorporated areas such, as the River Road/Santa Clara area, contributed to bond repayment through an "in-lieu-of-tax charge" (ILOTC). Because the bond debt has been fully repaid, property tax assessments and ILOTC payments will no longer be assessed. Interagency Coordination The effectiveness of MWMC and the RWP depends on extensive ongoing Coordination, especially between Springfield and Eugene staff, who provide ongoing program support. This coordination occurs in several ways. The Springfield ESD/MWMC General Manager and the Eugene Wastewater Division Director coordinate regularly to ensure adequate communication and consistent implementation of policies and practices as appropriate. The Eugene and Springfield Industrial Pretreatment Program supervisors and staff meet regularly to ensure April, 2004 DRAFT Page 7 FY 04-05 BUDGET AND C~ Metropolitan Wastewater Management Commission Overview consistent implementation of the Model Industrial Pretreatment Ordinance. Additionally, the interagency Technical Advisory Committee (TAC) and project teams provide input to ongoing MWMC administration issues and ad hoc project needs. These committees rely on support from staff throughout the partner agency organizations, primarily from the respective Public Works Departments. Exhibit 1 on the following page reflects the interagency coordination structure supporting the RWP. The TAC supports ongoing MWMC policy and coordination issues, and is coordinated by Springfield. Special project teams are typically formed to manage large projects such as design and construction of new facilities. These interagency staff teams are formulated to provide appropriate expertise, operational knowledge, project management, and intergovernmental representation. Relationship To Eugene And Springfield Local Sewer Programq The RWP addresses only part of the overall wastewater collection and treatment facilities that serve the Eugene-Springfield metropolitan area. The cities of Eugene and Springfield both maintain sewer programs that provide for construction and maintenance of local collection systems and pump stations, which discharge to the regional system. Sewer user fees collected by the two cities include both local and RWP rate components. April, 2004 DRAFT Page 8 FY 04-05 BUDGET AND CIP Metropolitan Wastewater Management Commission Overview EXHIBIT 1 REGIONAL WASTEWATER PROGRAM INTERAGENCY COORDINATION STRUCTURE UGENE CITY COUNCIL ~ "' ........................................................... % (SPRINGFIELD CITYCOUNCIL~ ~ LANE COUNTY \x. COMMISSIONERS ,.~ Operation & blaintenanc~ Contract ~../ ^dmiaistmUon Contract WASTEWATER DIVISION / - Regional faciiity operation and maintenance / ~ Maior Rehab 8, Equipment Replacement - Planning / - Technical Services / - Capital Construction [ - PumP Station and Interceptor operations and / - Rates, Revenues I maintenance i - Interagency Coordination ~ - Public Information/Education I - Eugene Pretreatment Program i - Springfield Pretreatment Program ENGINEERING DIVISION ! - Legal and Risk Services ~ ~ - Sewer User Customer Service - Sewer User Customer Service \ FINANCE DEPARTMENT MAINTENANCE DIVISION ~ ~ional Sewer Line Support TECHNICAL ADVISORY COMMITTEE~ - Administrative policy decisions & coordination Capital project planning & coordination Interagency issues Operational policy decisions and coordination Capital construction guidance II~ Design standards development April, 2004 DRAFT Page 9 FY 04-05 BUDGET AND C2 Metropolitan Wastewater Management Commission Budget and Pro,ram Summar~ REGIONAL WASTEWATER PROGRAM FY 04-05 BUDGET MWMC's RWP Operating Budget provides the Commission and governing bodies with an integrated view of the RWP elements. Exhibit 2 provides a summary of the overall Operating Budget. Separate Springfield and Eugene agency budgets and staffing also are presented within this budget document. Major program areas supported by Springfield and Eugene are described in the pages that follow and are summarized in Exhibit 4 on page 19. Finally, Exhibit 5 on page 20 combines revenues, expenditures, and reserves to illustrate how funding for all aspects of the RWP is provided. It should also be noted that the "Amended Budget FY 03-04" column in all budget tablesrepresents the updated RWP budget as of January 22, 2004, which reconciled actual beginning balances at July 1, 2003, and approved budget transfers. EXIHBIT 2 REGIONAL OPERATING BUDGET SUMMARY ADOPTED AMENDED PROPOSED BUDGET BUDGET BUDGET CHANGE (1) FY 03-04 FY 03-04 FY 04-05 INCR/(DECR) FTE 76.54 76.54 84.41 7.87 Personnel Services (2) $5,753,226 $5,753,226 $6,456,723 $703,497 12% Materials & Services (2) 4,372,591 4,612,573 4,946,284 573,693 13% Capital Outlay (2,3) 24,000 181,213 213,700 189,700 790% Equip Replacement Contr (4) 481,098 481,098 390,105 (90,993) -19% Capital Reserve Contr (5) 750,000 750,000 3,000,000 2,250,000 300% Working Capital Reserve (6) 700,000 700,000 700,000 0 0% Rate Stability Reserve (7) 0 415,123 1,294,688 1,294,688 NA Operating Reserve (8) 1,014,320 1,014,320 1,157,210 142,890 14% Budget Summary $13,095,235 $13,907,553 $18,158,710 $5,063,475 39% Notes: 1. The change column and percent change column compare the proposed FY 04-05 budget with the originally adopted FY 03-04 budget column, the change (increase/decrease) relative to the amended FY 03-04 budget is significantly different for materials and services, and for Capital Outlay. 2. Personnel Services, Materials and Services, and Capital Outlay budget amounts represent combined Springfield and Eugene Operating Budgets that support the RWP. 3. Capital Outlay does not include CIP, Equipment Replacement, Major Capital Outlay, or Major Rehabilitation, which are capital programs. 4. The Equipment Replacement Contribution is a budgeted transfer of operating revenues to "sinking funds" (reserves) for scheduled future replacement of major equipment, vehicles, and computers. 5. The Capital Reserve Contribution is a budgeted transfer of operating revenues to "sinking funds" (reserves). Capital is passed through the Springfield Administrative Budget. 6. The Working Capital Reserve acts as a revolving account which is drawn down and replenished on a monthly basis to fund Eugene's and Springfield's cash flow needs. April, 2004 DRAFT Page 10 FY 04-05 BUDGET AND CIP Metropolitan Wastewater Management Commission Budget and Pro~ram Summar~ 7. The Rate Stability Reserve is used to accumulate revenues available at year-end after the budgeted Operating Reserve target is met. It is budgeted based on projected revenues and expenditures and is intended to lessen the size of needed rate increases over time. 8. The Operating Reserve is used to account for the accumulated operating revenues net of operations expenditures. The Commission has adopted a policy of maintaining a minimum Operating Reserve balance approximately equal to 10% of the adopted operating budget. April, 2004 DR. AFI' Page 11 FY 04-05 BUDGET AND CIP Metropolitan Wastewater Management Commission Budget and Pro~ram Summar~ PROGRAMS AND SIGNIFICANT SERVICE/EXPENDITURE CHANGES PROGRAM: RWP ADMINISTRATION CITY OF SPRINGFIELD In FY 04-05, the City of Springfield will support the following major regional initiatives in addition to ongoing Commission administration and industrial pretreatment activities. · Implement new regional wastewater systems development charge (SDC) methodology. · Complete MWMC Facilities Plan approval process, including DEQ. · Support DEQ revieW/negotiation of modifications to the NPDES wastewater discharge permit. · Manage Wet Weather Flow Management Plan (WWFMP) implementation: continue flow monitoring, data tracking, and regional coordination; and begin WWFMP update process. · Implement electronic data storage project. · Complete phase two of Biocycle Farm construction and planting. · Coordinate development and Commission review of Pollution Management Practices within the Industrial Pretreatment Program. · Increase organizational support to long-term CIP management: expand financial management to manage bond counsel and financial advisor contracts, and revenue bond issuance; increase project/construction management staffing; develop construction management support facilities at the WPCF; support public information needs; and undertake design and construction management of Facilities Plan CIP projects scheduled for 2004 and 2005. · Continue evaluation of reclaimed water reuse opportunities. · Track State legislative activity and protect RWP interests through participation in Association of Clean Water Agencies activities. · Continue participation in the Pollution Prevention Coalition of Lane County. Significant Changes for FY 04-05 The proposed budget for Springfield Personnel Services, Materials and Services, and Capital Outlay for FY 04-05 totals $2,726,362. While the total of all budget categories shows a 49% increase compared to the FY 03-04 adopted budget, the bulk of this increase is associated with the addition of 5.65 FTE to manage new capital projects and secure revenue bond financing. Significant changes proposed for the FY 04-05 administration budget include: Personnel Services - Budget Request $1,048,644 [Increase of $419,408 or 67%] Personnel Services shows an overall increase of $419,408 or 67%. The major changes are in the following budget categories: April, 2004 DRAFT Page 12 FY 04-05 BUDGET AND C~ Metropolitan Wastewater Management Commission Budget and Pro~ram Summar,/ Staffing The Springfield Personnel Services budget request includes $357,790 to fund the addition of two Civil Engineers, a Construction Inspector II (mid-year), and an Engineering Assistant needed to coordinate the design and construction of new capital projects, a Clerk II needed to implement the electronic data storage project and an Accountant at .65 FTE to provide financial support to these efforts. This 5.65 FTE increases Springfield RWP stafffrom 8.4 FTE to 14.05 FTE (a 49% increase). Regular Wages - Budget Request $732,670 [Increase of $278,242 or 61%] · This category reflects $241,890 in regular wages associated with the addition of two Civil Engineers, a Construction Inspector II (mid-year), an Engineering Assistant, a Clerk II and an Accountant at .65 FTE. These new positions will account for 87% of the increase in regular wages. · Salaries for FY 04-05 increase by 2.5%, per contract agreement between the City of Springfield and the local union (OPEU). The additional increases are from annual merit increases and funds necessary to pay end-of-service liabilities for personnel anticipating retirement in FY 04-05. Employee Benefits - Budget Request $288,732 [Increase of $141,956 or 97%] · The addition of 5.65 FTE accounts for $115,600 (or 82%) of this increase. · PERS rates will not change for FY 04-05 · Health Insurance cost increases make up the bulk of the remaining change in costs. While rates have increased for FY 04-05, the City of Springfield transitioned to a new health insurance program beginning January 1, 2004. It is anticipated this change will be less expensive over the long tenn. Materials and Services The proposed Materials and Services budget represents a total FY 04-05 increase of $433,415 (or 36%). The major changes are in the following budget categories: Contractual Services - Budget Request $188,439 [Increase of $120,300 or 177% over original FY 03-04 budget; 100% increase over the amended FY 03-04 budget] · The FY 03-04 Contractual Services budget was amended to appropriate an additional $25,840, in order to transfer the regional flow monitoring contract from the CIP to the Operating Budget. This contract will continue in FY 04-05 with a projected budget increase of about $2,200. Other significant increases in the FY 04-05 Contractual Services budget are $25,000 for contracted data imaging services, a $5,500 increase in April, 2004 DRAFT Page 13 FY 04-05 BUDGET AND CII:' Metropolitan Wastewater Management Commission Budget and Pro~ram Summar~ the cost of the annual financial audit, and new costs of $40,000 for a Financial Advisor and $25,000 for Bond Counsel associated with the sale of revenue bonds. Property and Liability Insurance - Budget Request $330,000 [Increase of $105,000 or 47% over the original FY 03-04 budget; 20% over amended FY 03-04 budget] · The projected increase in insurance premiums of 20% over the FY 03-04 amended budget is driven by the addition of new assets, such as Biocycle Farm, into the MWMC system. Computer Software - Budget Request $21,485 [Increase of $20,565] · This budget category includes a three-year renewal of the Mouse software license for $12,500, and $2,500 for the document imaging software license, which were not included in the FY 03-04 budget. Software for new staff account for $5,550, or roughly 27% of the total increase. ,Capital Outlay - Budget Request - $37,750 [Increase of $37,750] · In FY 03-04, Springfield had no Capital Outlay purchases; therefore the proposed FY 04- 05 budget cannot be compared to FY 03-04 on a percentage-change basis. The proposed FY 04-05 budget includes $1,750 to fund MWMC's proportionate share of a plotter device that will be shared among several Public Works divisions, and to outfit the new employees with office furniture and computers. A vehicle purchase is also proposed for use by the Civil Engineers and the Construction Inspector in the field. Internal Fees - Budget Request $399,633 [Increase of $156,741 or 65%] · Internal Fees include charges paid to the City of Springfield for direct and indirect services rendered. These fees include charges for building maintenance, computer and vehicle maintenance, telephone charges, and indirect charges for internal services, such as payroll. These charges are calculated on a "per-FTE" basis or some other pro-rata sharing of costs. Roughly 72% ($112,906) of the increase in these costs can be attributed to the addition of new employees. Miscellaneous Other Charges - Budget Request $21,140 · In addition to the budget items detailed above, the addition of new employees have caused less substantial, but significant increases in various other budget categories. These include: Cellular/Pager Charges ($1,390); RIS/AIRS/GEO Charges ($3,150); Travel and Meeting Expenses, associated with required continuing education ($4,150); Professional Memberships ($2,075); Office Supplies ($2,075), and; Employee Development/Training ($8,330). April, 2004 DRAFT Page 14 FY 04-05 BUDGET AND CIP Metropolitan Wastewater Management Commission Budget and Pro~ram Summap/ PROGRAM: REGIONAL WASTEWATER FACILITIES OPERATION AND MAINTENANCE - CITY OF EUGENE In FY 04-05, Eugene staffwill support the following major regional initiatives in additiOn to ongoing operational activities. · Continue efforts to optimize service effectivenesS and efficiency, further develop performance measurement and tracking systems. · Manage the O&M aspects of the Biocycle Farm startup. · Manage the O&M responsibilities of the NPDES permits for the wastewater discharge and treatment plant stormwater programs and the LRAPA air emissions permit for the regional wastewater treatment plant. · Work cooperatively on the CIP elements and effectively integrate capital project work with ongoing O&M activities. Evaluate impacts of regulatory actions (such as the federal Blending Policy, Willamette River TMDLs, newly adopted state water quality standards) upon operational responsibilities. · Complete scheduled Major Rehabilitation, Major Capital Outlay, and Equipment Replacement projects (including the engine generator rebuild, screw pump and clarifier coating projects, boiler upgrade). · Continue ongoing security assessments and respond accordingly. · Develop use of the computerized maintenance management system including implementation of audit recommendations. Significant Changes for FY 04-05 The proposed budget for operations and maintenance personnel, materials and services, and capital for FY 04-05 totals $8,890,345. The budget categories show a total 7% increase from the FY 03-04 budget. Significant changes proposed for the FY 04-05 operations and maintenance budget of the regional wastewater treatment facilities include: Personnel Services Personnel Services shows a net budget increase of $284,089 or 6%. The major changes are in the following budget categories: Staff'mg · A budget increase of 2.22 FTE allocations is projected for FY 04-05. .90 New Maintenance Worker II- A significant portion of this position will be used for increased production activities in the biosolids program and operational needs assOciated with the Biocycle Farm. The position will also be allocated to maintenance of buildings and infrastructure at the regional wastewater treatment facilities, to assist in maintaining asset value and managing the backlog of facilities maintenance work.. April, 2004 DRAFT Page 15 FY 04-05 BUDGET AND Metropolitan Wastewater Management Commission Budget and Pro~ram Summar~ 1.32 Fund Reallocations - During the preparation of the annual budget proposal, the distribution of FTE hours for regional and non-regional activities from the previous year is reviewed and adjustments are made to the next year's allocation to account for any differences between the projected and the actual labor distributions. The projected labor distribution for FY 04- 05 includes adjustments in the allocations between local pump station O&M and regional maintenance activities, and adjustments in administrative support to reflect a decrease in local stormwater program involvement and increased regional program allocation. Regular Wages -Budget Request $3,379,958 [Increase of $111,072 or 3%] · Salaries are based upon negotiated management/labor contracts between the City of Eugene and the local union (AFSCME). Base salaries for FY 04-05 are projected to increase by 1%. The increase of 3% includes cost of living and annual merit raises as applicable, and the FTE adjustments described above. Employee Benefits - Budget Request $1,195,884 [Increase of $45,135 or 4%] · The increase in employee benefits is driven by an increase in payroll costs including a 2% increase in PERS contributions. Health Insurance - Budget Request $659,243 [Increase $97,341 or 17%] · Annual health insurance costs increased from $8,256 to $9,456 per employee which is a 14.54% increase from the FY 03-04 budget. Materials and Services The proposed Materials and Services budget represents a total FY 04-05 increase of $140,278 which is 4%. The major changes are in the following budget categories: Maintenance of Equipment & Facilities - Budget Request $351,151 [Increase of $117,614 or 5o%1 Increase of $117,614 for one-time expenses including $25,000 for relocation and security enhancements of the fi:ont gate to the regional wastewater treatment plant (being driven in part by planned upgrades being made to River Avenue); $50,000 for removal of material from the onsite biosolids lagoon; and $20,000 for upgrade of regional plant's irrigation system to improve efficiency and reduce the use of potable water. Contractual Services - Budget Request $193,565 [Decrease of $40,197 or 17%] · A decrease of $52,000 for the one-time expenditure for electrical switchboard testing and engineering services from FY 03-04 is offset by proposed one-time expenses including $15,000 for enhancing the existing security system for the Operations Building at the Treatment Plant; $5,000 for a legal compliance audit; and $8,000 for temporary help at the Biocycle Farm to address peak seasonal labor needs. April, 2004 DRAFT Page 16 FY 04-05 BUDGET AND Metropolitan Wastewater Management Commission Budget and Pro~ram Summar~ Materials &~- Budget Request $478,785 [Increase of $45,700 or 11%] · An increase including $5,750 for funding of materials and services at the Biocycle Farm; $25,000 for Maximo training/consulting to improve the use and effectiveness of the maintenance management system as recommended by an external audit; and $5,000 for portable gas meters related to confined space work in the collection system. Parts & Components - Budget Request $231,850 [Increase of $21,900 or 10%] · Increase in cost for maintaining equipment at the regional facilities. Risk Insurance - Employee Liability - Budget Request $111,428 [Decrease of $11,269 or 9%] · These rates are based upon the City's actual experience over the last five years (60%) and on actual exposure (40%). The rates represent the Wastewater Division's proportional share of the City's self-insured risk pool costs. Indirects - Budget Request $769,105 [Decrease of $42,999 or 5%] · Indirects are charged based upon actual personnel and materials and services expenses. The rate used to calculate the FY 04-05 budget is 9.68%, a decrease from the FY 03-04 indirect' rate of 10.86%. Capital Outlay Capital Outlay - Other - Budget Request $175,950 · Laserfiche - Web Access $8,000 · Biosolids Application $30,000 · Fire Alarm System Upgrade $25,000 · DCS Hardware at Willakenzie Pump Station $8,000 · Online Suspended Solids Meters $10,000 · Online Blanket Finders $15,000 · Moisture Balarlce $14,500 · Sub boiling Distillation Unit $13,950 · Replace Laser Alignment Tool $8,000 · Install Access Gates Around Screw Pump $15,000 · 3 Point Boom Mower $28,500 April, 2004 DRAFT Page 17 FY 04-05 BUDGET AND CIP Metropolitan Wastewater Management Commission Budget and Pro~ram Summar~ CAPITAL PROGRAMS The RWP budget includes several capital programs, including the CIP, the Major Rehabilitation Program, the Major Capital Outlay and the Equipment Replacement Program. The CIP consists of capital projects that are administered by the City of Springfield as part of its contract responsibilities for MWMC. CIP projects typically provide for new or expanded facilities and/or capacity enhancements. The annual CIP budget is administered by Springfield and is separate from the Operating Budget. The proposed FY 04-05 CIP is funded by a combination of SDCs, contributions from the Operating Budget, and Capital Reserves. The proposed FY 04-05 CIP budget is summarized in Exhibit 3 below, and described on pages 26-33. Other capital programs, consisting of the Major Rehabilitation Program, Major Capital Outlay and the Equipment Replacement Program include capital projects/purchases that are administered by the City of Eugene as part of its contractual responsibilities for MWMC. These programs provide for major construction, repairs, and purchases necessary to maintain functionality, lifespan, and effectiveness of existing facility assets and capacity. The proposed FY 04-05 budget for these capital programs is summarized in Exhibit 3 below, and itemized on the pages 30-31. EXHIBIT 3 REGIONAL CAPITAL PROGRAMS DESCRIPTION [ FY 04-05 PROPOSED BUDGET Capital Improvement Projects (Springfield Administration) Biosolids - Poplar Plantation 2,100,000 Lab Modification 45,000 04 -05 Facility Master Plan (Pre-Design) 200,000 Primary Clarifier Enhancements 1,200,000 Digester Mixing Improvements Design 200,000 Digester Mixing Improvements 1,800,000 South Aeration Basin Improvements Design 690,000 South Aeration Basin Improvements 6,210,000 Secondary Oafitier Enhancements Design 520,000 Secondary Clarifier Enhancements 4,780,000 Const Mgt Facilities 100,000 Total (Not Included in Operating Budget) $17,845,000 Other Capital Programs (Eugene Operations) Equipment Replacement 2,004,541 Major Rehabilitation 350,000 Major Capital Outlay 250,000 Total (Not Included in Operating Budget) $2,604,541 April, 2004 DRAFT Page 18 FY 04-05 BUDGET AND CIP Metropolitan Wastewater Management Commission Budget and Pro~ram Summar7 EXHIBIT 4 REGIONAL WASTEWATER PROGRAM OPERATING BUDGET LINE ITEM SUMMARY BY PROGRAM AREA ADOPTED AMENDED PROPOSED ACTUAL BUDGET BUDGET BUDGET CHANGE SPRINGFIELD FY 02-03 FY 03-04 FY 03-04 FY 04-05 INCR/(DECR) MWMC ADMINISTRATION Personnel Services $392,414 $440,802 $440,802 $805,978 $365,176 83% Materials & Services 1,015,109 1,125,859 1,201,699 1,479,469 353,610 31% Capital Outlay 6,766 0 0 37,750 37,750 NA TOTAL $1,414,289 $1,566,661 $1,642,501 $2,323,197 $756,536 48% INDUSTRIAL SOURCE CONTROL Personnel Services $136,608 $144,922 $144,922 $153,122 $8,200 6% Materials & Services 44,752 71,518 71,518 77,517 5,999 8% Capital Outlay 1,812 0 0 0 0 NA TOTAL $183,172 $216,440 $216,440 $230,639 $14,199 ACCOUNTING Personnel Services $41,220 $43,512 $43,512 $89,544 $46,032 106% Materials & Services 1,240 9,176 9,176 82,982 73,806 804% Capital Outlay 0 0 0 0 0 NA TOTAL $42,460 $52,688 $52,688 $172,526 $119,838 227¥0 TOTAL SPRINGFIELD Personnel Services $570,242 $629,236 $629,236 $1,048,644 $419,408 67% Materials & Services 1,061,101 1,206,553 1,282,393 1,639,968 433,415 36% Capital Outlay 8,577 0 0 37,750 37,750 NA TOTAL $1,639,920 $1,835,789 $1,911,629 $2,726,362 $890,573 49% EUGEne. ADMINISTRATIVE SERVICES Personnel Services $749,942 $957,438 $957,438 $1,011,807 54,369 6% Materials & Services 396,674 506,940 510,540 408,090 (98,850) -19% Capital Outlay 0 0 0 38,000 38,000 NA TOTAL $1,146,615 $1,464,378 $1,467,978 $1,457,897 ($6,481) BIOSOLIDS MANAGEMENT Personnel Services $618,364 $634,136 $634,136 $743,474 $109,338 17% Materials & Services 454,838 490,196 490,196 570,580 80,384 16% Capital Outlay 0 0 85,000 43,000 43,000 NA TOTAL $1,073,202 $1,124,332 $1,209,332 $1,357,054 $232,722 21% INDUSTRIAL SOURCE CONTROL Personnel Services $429,599 $462,932 $462,932 $401,306 ($61,626) -13% Materials & Services 104,474 104,973 104,973 110,004 5,031 5% Capital Outlay 0 0 0 0 0 NA TOTAL $534,073 $567,905 $567,905 $511,310 ($56,595) -10% TREATMENT PLANT Personnel Services $2,767,481 $2,795,283 $2,795,283 $3,006,249 $210,966 8% Materials & Services 1,765,218 1,655,467 1,816,009 1,816,838 161,371 10% Capital Outlay 33,625 24,000 96,213 86,950 62,950 262% TOTAL $4,566,324 $4,474,750 $4,707,505 $4,910,037 $435,287 10% REGIONAL PUMP STATIONS Personnel Services $102,804 $147,455 $147,455 $117,121 ($30,334) -21% Materials & Services 277,222 342,553 342,553 334,741 (7,812) -2% Capital Outlay 0 0 0 8,000 8,000 NA TOTAL $380,026 $490,008 $490,008 $459,862 ($30,146) -6% SEASONAL INDUSTRIAL WASTE FACILITY 'Personnel Services $95,451 $126,746 $126,746 $128,122 $1,376 I% Materials & Services 44,501 65,909 65,909 66,063 154 0% Capital Outlay 0 0 0 0 0 NA TOTAL $139,952 $192,655 $192,655 $194,185 $1,530 1% TOTAL EUGENE Personnel Services $4,763,640 $5,123,990 $5,123,990 $5,408,079 $284,089 6% Materials & Services 3,042,927 3,166,038 3,330,180 3,306,316 140,278 4% Capital Outlay 33,625 24,000 181,213 175,950 151,950 633% TOTAL $7,840,192 $8,314,028 $8,635,383 $8,890,345 $576,317 7% TOTAL OPERATIONS $10,149,817 $11,616,707 April, 2004 DRAFT Page 19 FY 04-05 BUDGET AND CIP Metropolitan Wastewater Management Commission Budget and Pro~ram Summar~ EXHIBIT 5 REGIONAL WASTEWATER PROGRAM BUDGET SUMMARY AND COMPARISON ADOPTED AMENDED PROPOSED BUDGET BUDGET BUDGET CHANGE * OPERATING BUDGET FTE FY 03-04 FY 03-04 FTE FY 04-05 INC(DECR) Administration 8.40 $1,560,170 $1,636,010 14.05 $2,726,362 $1,166,192 Operations 68.14 8,314,028 8,635,383 70.36 8,890,345 576,317 Capital Contribution 750,000 750,000 3,000,000 2,250,000 Equip Repl - Contribution 481,098 481,098 390,105 (90,993) Operating Reserves 1,714,320 2,129,443 3,151,898 1,437,578 Total Operating Budget 76.54 $12,819,616 $13,631,934 84.41 $18,158,710 $5,339,094 Funding: Beginning Balance $1,151,870 $1,964,188 $2,317,216 $1,165,346 User Fees 11,642,000 11,642,000 15,316,000 3,674,000 Other 301,365 301,365 525,494 224,129 Total Operating Budget Funding $13,095,235 $13,907,553 $18,158,710 $5,063,475 CAPITAL PROGRAM BUDGET SPRINGFIELD Biosolids - Poplar Plantation 5,700,000 5,700,000 2,100,000 NA Biosolids - Dredge Movement System 150,000 150,000 0 NA Electronic Records & Storage 50,000 50,000 0 NA Lab Modification 0 155,495 45,000 NA River Avenue Improvements 50,000 50,000 0 NA Facility Planning 600,000 782,213 200,000 NA Primary Clarifier Enhancements 0 0 1,160 000 NA Digester Mixing Improvements Design 0 0 202 000 NA Digester Mixing Improvements 0 0 1,818 000 NA- South Aeration Basin Improve Design 0 0 690 000 NA South Aeration Basin Improvements 0 0 6,210 000 NA Secondary Clarifier Enhance Design 0 0 532 000 NA Secondary Clarifier Enhancements 0 0 4,788 000 NA Tertiary Filtration Design 0 0 1,0112 000 NA Construction Management Facilities 0 0 100,000 NA EUGENE Equipment Replacement Purchases 1,026,630 1,326,249 2,004,541 977,911 Major Rehab 182,000 458,078 350,000 168,000 Major Capital Outlay 0 0 250,000 NA TotalCapitalProjects $7,758,630 $8,672,035 $21,459,541 $13,700,911 Funding: SDCReserve 9,968,630 11,105,327 25,084,541 $15,115,911 Equipment Replacement 0 0 0 NA Capital Reserve 1,026,630 1,326,249 2,004,541 977,911 Total Capital Projects Funding $10,995,260 $12,431,576 $27,089,082 $16,093,822 Notes: * The Change (Inc/Decr) column compares the proposed FY 04-05 budget to the originally adopted FY 03-04 budget column. April, 2004 DRAFT Page 20 FY 04-05 BUDGET AND CIP Metropolitan Wastewater Management Commission Budget and Pro~ram Summar~ OPERATING BUDGET AND RATE HISTORY The graphs on the following page show a five-year Regional Operating Budget comparison, and Regional Residential Sanitary Sewer costs over a fifteen-year period. Because the Equipment Replacement and Major Infrastructure Rehabilitation programs are managed in the Eugene operating budget, these programs are incorporated into both the five-year Regional Operating Budget comparison graph (on the following page) and the Five-Year Capital Programs comparison graph on page 32. Between FY 97 and FY 01, the Commission was able to maintain the same rate of $8.78 (monthly regional sewer cost) for the typical residential user, based on 5,800 gallons. This was achieved through the implementation of a competitiveness work plan which resulted in improved effectiveness and cost reduction. It should be noted that during the same timeframe, average residential water usage has progressively dropped to about 5,000 gallons per month, due to the effects of building code changes and conservation measures. At 5,000 gallons typical usage, the average residential bill went down to about $8.13 per month. For FY 01-02, MWMC adopted a rate increase of 5%. The increase was intended to provide sufficient funding for several years. However, the fiscal year saw the beginning of an economic downturn, unexpected increases in power costs, billing and collection costs, and employee benefit costs. At the same time, reduced usage due to aggressive conservation efforts on the part of the water utilities resulted in a significant shortfall in revenue. The 5% increase in user rates resulted in less than a 1% increase in revenue in FY 01-02. The FY 02-03 budget was balanced without the need for a rate adjustment. At 5,000 gallons typical usage, the average residential bill during this two-year period was about $8.53 per month. For the FY 03-04 budget, the Commission adopted a rate increase of 6.5%. The increase was to be the first of two annual increases in that amount. The combination of increased operating costs and decreased revenues would have required .a much higher increase, but the Commission chose to moderate the impact through a one-time reduction in the contribution to the Capital Reserve. The annual contribution was increased to $3,000,000 in FY 04-05. At 5,000 gallons typical usage, the average residential bill during FY 03-04 was $9.09 per month. The 2004 MWMC Facilities Plan, completed in FY 03-04, identified performance improvements and capacity increases necessary to meet the needs of present and future users through the year 2025. A 20-Year Project list was developed to provide cost estimates and projected timing of the various projects. Over $100 million in projects are scheduled in the FY 04-05 through FY 08-09, 5-Year CI?. Several of the projects identified in the Facilities Plan are scheduled for design, or design and construction in FY 04-05. While reserves are sufficient for FY 04-05 needs, the Commission is considering the financing needs of future years. In doing so, MWMC examined several user rate scenarios. They narrowed the scope of their consideration to three scenarios. Scenario one would have increased rates 12% for FY 04-05, and 12% each year for the next several years. Scenario two would have increased rates 38% for FY 04-05, and 4.5% each year for the next four years. Scenario three increases rates 24% in FY 04-05 and 6% each year for several years. At 5,000 gallons typical usage, the average residential bill under scenario one would be about $10.18 per month. Under scenario two it would be about $12.54. Under scenario three it would be about $11.28. April, 2004 DRAFT Page 21 FY 04-05 BUDGET AND CIP Metropolitan Wastewater Management Commission Budget and Pro~ram Summar~ Scenario three was chosen as it provided a reasonable compromise between the other two scenarios while addressing future capital financing needs. 5-YEAR REGIONAL OPERATING BUDGET COMPARISON $11,616,707 $12,000,000 $10,149,817 $10,000,000 $~,302,255 $8,704,483 $9,618,674 $8,000,000 $6,000,000 $4,000,000 $2,O00,O0O $0 FY 00-01 FY 01-02 FY 02-03 FY 03-04 FY 04-05 The figUre below compares the regional component of average monthly residential sewer cost on several different basis; average usage, actual usage, actual cost, and cost adjusted for inflation. Regional Residential Sanitary Sewer Cost 1984-2005 1.00 9.00 10.00 9.00 8.00 6.00 7.00 7.00 6.00 6.00 5.00 5.00 4.00 4.00 3.00 ~ I I I I [ II t I I I I I I I I I I I 3.00 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Year + Cost Based on 5800 gal/mo Usage (Historical method of presentation) --*- Cost based on Actual Residential Usage (Usage is trending downward - fmrn 6300 gal/mo in 1988 to 4900 gal/mo in 2003) --h- Cost Adjusted for i~lation (Based on actual residential usage) April, 2004 DRAFT Page 22 FY 04-05 BUDGET AND CIP Metropolitan Wastewater Management Commission Staffing EXHIBIT 6 L Regional Wastewater Program * CITYOF EUGENE" I I i c.~ OF SPRINGFIELD- i i i Environmental Sarvices DMsion I Westewater Division I I & Finance Department 70.36 FTE 14,05 FTE Division.65 FTEDirect°r. MWM~cutlve ] Operations Manager ~ I .84 FTE / MWMC GENERAL su.ports~v, ce. Wes,ewat~ .io~o.~ Iseas0na,,~u,~a, llReg,ona,~m.I ,ndu..e, I, , 11.81 FIE Treatment Plant Management Waste Facility I Stations Pmtmatment [ 1.54 FIE 5.27 FIE [ Accou~ng [ Admialstration 38.93 FTE 9.66 FTE 1.66 FIE MWMC Industrial Pretreatrnent I 1.2 FTE [ 10.1 FTE 1.95 FTE Admin Support Operations Operations Operations Operations Regulations & ] 3.63 FIE 16.0 FIE 4.55 FTE .45 FIE .7 FIE Enforcement 3.6 FIE Services Maintenance Maintenance Maintenance Maintenance 2.73 FIE 10.09 FIE 1.94 FTE .18 FIE .39 FIE 1.2 FIE 2.73 FIE Maintenance Maintenance Maintenance Maintenance Sampling 7.0 FTE 1.67 FIE .19 FIE .45 FIE .47 FIE Analyst Laboratory Laboratory Laboratory .4 FIE 2.36 FIE 1.2 FIE .64 FIE User Fee ~[ Support Projects Sampling Sampling .75 FIE .93 FIE .3 FTE .2 FIE Env Health & Safety Sampling Supervisor .25 FTE .91 FIE Management m PW Maint Analyst ] 1.4 FIE .66 FIE Notes: * FTE figures represent portions of Eugene and Springfield staff funded by Regional Wastewater funds. ** The chart represents groups of staff dedicated to prograra areas rather than specific positions. April, 2004 DRAFT Page 23 FY 04-05 BUDGET AND CIP Metropolitan Wastewater Management Commission Staffing EXI~IBIT 7 REGIONAL WASTEWATER PROGRAM POSITION SUMMARY BUDGET BUDGET PROPOSED CLASSIFICATION FY 02-03 FY 03-04 FY 04-05 CHANGE SPRINGFIELD ENVIRONMENTAL SERVICES & FINANCE Public Works Director 0.05 0.05 0.05 0.00 ESD/MWMC Manager 0.75 0.75 0.75 0.00 Environmental Services Supervisor 0.70 0.70 0.70 0.00 Supervising Civil Engineer 0.85 0.85 0.85 0.00 Civil Engineer 0.00 1.00 3.00 2.00 Engineering Assistant 1.30 1.30 2.30 1.00 Public Information & Education Specialist 0.65 0.65 0.65 0.00 Senior Management Analyst 0.35 0.35 0.35 0.00 Secretary 0.90 0.80 0.80 0.00 Clerk II 0.00 0.00 1.00 1.00 Accountant 0.35 0.35 1.00 0.65 Accotmting Manager 0.10 0.20 0.20 0.00 Senior Environmental Technician 0.90 0.90 0.90 0.00 Construction Inspector II 0.00 0.00 1.00 1.00 Environmental Services Technician I 0.40 0.50 0.50 0.00 TOTAL 7.30 8.40 14.05 5.65 Note: Springfield's Industrial Pretreatment Program staffing of 1.95 FIE is incorporated into the position summary because the Industrial Pretreatment Programs are funded through the RWP. April, 2004 DRAFT Page 24 FY 04-05 BUDGET AND CIP Metropolitan Wastewater Management Commission Staffing EXHIBIT 7 (Continued) REGIONAL WASTEWATER PROGRAM POSITION SUMMARY BUDGET BUDGET PROPOSED CLASSIFICATION FY 02-03 FY 03-04 FY 04-05 CHANGE EUGENE WASTEWATER DIVISION & OTHER PW Division Director 0.75 0.75 0.65 -0.10 Technical Services Manager 0.60 0.60 0.00 -0.60 Operations Manager 0.83 0.83 0.84 0.01 Business Manager 0.88 0.88 0.91 0.03 Laboratory Supervisor 0.86 0.83 0.00 -0.83 Pretreatment Supervisor 0.50 0.50 0.00 -0.50 Pmtreatment/Laboratory Supervisor 0.00 0.00 0.83 0.83 Operations Supervisor 1.00 1.00 1.00 0.00 Residuals Supervisor 1.00 1.00 1.00 0.00 Pump Station Supervisor 0.25 0.25 0.25 0.00 Maintenance Supervisor 0.90 0.90 0.97 0.07 Facilities Supervisor 0.94 0.94 0.93 -0.01 Stores Supervisor/Buyer 0.91 0.91 0.91 0.00 Environmental Data Analyst 0.60 0.60 0.40 -0.20 Health and Safety Supervisor 0.00 0.00 0.91 0.91 Project Specialist 0.93 0.93 0.93 0.00 Management Analyst 0.00 0.00 0.66 0.66 PW Maintenance Supervisor 0.00 0.00 0.05 0.05 Applications System Analyst 1.72 1.72 1.82 0.10 Applications Support Technician 0.86 0.86 0.91 0.05 Maintenance Technician 0.90 0.90 0.85 -0.05 Maintenance Control Technician 1.80 0.00 0.00 0.00 Communications & Control Specialist 0.00 0.90 0.90 0.00 Wastewater Technician (Operator) 15.00 15.00 15.00 0.00 Wastewater Technician (Residuals) 3.00 3.00 3.00 0.00 Wastewater Technician (Pretreatment) 4.38 4.43 3.22 - 1.21 Wastewater Technician (Laboratory) 5.07 5.05 4.95 -0.10 Wastewater Technician (Sampling) 0.00 0.00 1.22 1.22 Wastewater Technician (Mechanical) 6.00 6.90 7.22 0.32 Wastewater Instrument/Electrician 2.92 2.92 2.90 -0.02 Electrician 1.48 1.48 1.96 0.48 Maint Worker 8.49 8.49 9.38 0.89 Billing Specialist 0.25 0.25 0.25 0.00 Program Specialist 0.86 0.86 0.90 0.04 Admin Aide 1.64 1.64 1.82 0.18 Stores Clerk 1.82 1.82 1.82 0.00 Custodial Worker 1.00 1.00 1.00 0.00 TOTAL 68.14 68.14 70.36 2.22 GRAND TOTAL 75.44 76.54 84.41 7.87 April, 2004 DRAFT Page 25 FY 04-05 BUDGET AND CIP Metropolitan Wastewater Management Commission Capital Improvement Program REGIONAL WASTEWATER PROGRAM CAPITAL PROGRAMS The FY 04-05 CIP budget is included in the administration portion of the RWP budget. The five-year CIP begins on page 47. For the past several years, the five-year CD has been primarily composed of projects identified by the 1997 Master Plan, the 1997 Biosolids Management Plan, and the WWFMP, 2001. The WWFMP provided the basis for wastewater treatment facility capital improvements related to peak wet weather flow. In order to determine design parameters and to identify the impacts of these projects on other treatment facility processes, a Wet Weather Flow Pre-Design Project was initiated in FY 02-03. This project evolved into a comprehensive Facilities Plan in 2003 to address the increased regulatory requirements contained in the new NPDES wastewater discharge permit. The Regional Wastewater Facilities have been in operation for nearly 20 years and a comprehensive Facility Plan has been undertaken since the original "208 Study." That formed the plans for the facilities much as they are today. The 2004 Facilities Plan identifies several process areas that are at or near capacity and identifies projects that will assure that the Regional Wastewater Facilities have sufficient capacity to meet the needs of current and future users through the year 2025. The FY 04-05 CIP budget is composed of projects carried over fi.om previous years and projects identified in the 2004 Facilities Plan. CD project summaries are provided below. The FY 04-05 CII:' is fimded using a combination of Capital Reserves and SDCs. Other capital programs, including the Equipment Replacement Program, Major Capital Outlay, and Major Rehabilitation Program are included in the operations portion of the RWP budget. The basis for planning in these capital programs involves an annual evaluation byoperations staff of major assets, where they are in their projected life cycles, performance/maintenance records, etc. FY 04-05 funding for these programs will come from the Equipment Replacement Reserve and Capital Reserve. Itemized lists of and budgets for Equipment Replacement purchases, Major Infrastructure Rehabilitation projects, and Major Capital Outlay are included on pages 30-31. CAPITAL IMPROVEMENT PROJECTS Carryover Projects: These projects represent a continuation of previously budgeted activities. Biocycle Farm Land Application and BMF Reclaimed Water Supply FY 04-05 Capital Budget = $2,100,000 During FY 03-04, the project scope was modified to incorporate several projects which had been budgeted separately. They included: (1) the addition of a reclaimed water conveyance system to serve both the dewatering facility and the Biocycle Farm; (2) the connection of the reclaimed water line to the biosolids sludge force main to allow mitigation of struvite buildup; and (3) the addition of sludge strain presses. Completion of the first 190-acre phase of Biocycle Farm was completed in the spring of 2004. Construction work on the reclaimed water pipeline and related pump station along with phase two of Biocycle Farm, are budgeted in FY 04-05 budget year. April, 2004 DRAFT Page 26 FY 04-05 BUDGET AND CIP Metropolitan Wastewater Management Commission Capital Improvement Program Plant Predesign Study and Facilities Plan (Formerly - Plant Performance Improvements - Predesign Study) FY 04-05 Capital Budget = $200,000 The predesign project evolved into a comprehensive Facilities Plan that establish RWP capital needs through the year 2025. During FY 03-04, the project scope was modified to include determining future use alternatives for the Seasonal Industrial Waste Facility, and to provide professional assistance with developing SDC methodology alternatives.' The $200,000 carried forward to the FY 04-05 budget will fund actual predesign studies for the projects identified in the Facilities Plan as phase one projects. Lab Modification FY 04-05 Capital Budget = $45,000 The Lab Modification project was essentially completed in FY 03-04. There are two remaining issues: (1) exhaust fan vibration isolation system problems; and (2) acid neutralization system problems that were identified during the later part of 2003. The funds carried forward to FY 04- 05 are intended to complete any remaining retrofits necessary for final resolution of any remaining operational difficulties with the new lab facilities. New Proiects: The following projects address needs/projects identified in the WWFMP (2001) and the 2004 MWMC Facilities Plan. Digester Mixing Improvements FY 04-05 Capital Budget = $2,000,000 Expected cash flow:* FY 04-05 $660,000; FY 05-06 $1,340,000. The 2004 Facilities Plan identifies the need to provide additional solids stabilization volume. This project includes design and construction of digester mixing improvements that will increase the active volume of the existing three digesters, thus allowing for additional solids stabilization volume. This will be accomplished by replacing the existing gas mixing system with a pump mixing system. This project will also defer the need to construct an additional digester. Design work and the beginning of construction is planned for FY 04-05. The remaining construction work is planned for FY 05-06. Primary Clarifier Enhancements FY 04-05 Capital Budget = $1,200,000 Expected cash flow:* FY 04-05 $600,000; FY 05-06 $600,000. The preferred alternative for treating peak flows in the 2004 Facilities Plan, is called Parallel Primary/Secondary Treatment. In this alternative, peak flows up to 130 million gallons per day (mgd) will receive primary treatment in the primary clarifiers and be diverted around the aeration basins and secondary clarifiers. Flows greater than 130 mgd will be treated in the aeration basins and secondary clarifiers. The two flows will be blended back together and receive chlorine disinfection before being discharged. The Primary Clarifier Enhancements project includes design and construction of baffling in the primary cladfiers and removal of hydraulic restrictions. April, 2004 DRAFT Page 27 FY 04-05 BUDGET AND CIP Metropolitan Wastewater Management Commission Capital Improvement Program Enhancing the existing clarifiers will increase primary treatment capacity, increase capacity to treat base and peak flows, and improve effluent quality and reliability so that a blended primary and secondary effluent can meet the current NPDES total suspended solids limits. Design and work on two clarifiers is planned for FY 04-05. Work on the remaining two primary clarifiers is planned for FY 05-06. Secondary Clarifier Enhancements FY 04-05 Capital Budget = $5,300,000 Expected cash flow: * FY 04-05 $1,300,000; FY 05-06 $2,700,000; FY 06-07 $1,300,000. This project is part of the overall MWMC Facilities Plan strategy to increase the peak flow treatment capacity. The project includes design and construction of baffling, inlet energy dissipation, changing out of the floccUlation well, construction of an outboard launder, and retrofitting of the suction header for the existing eight clarifiers. It also includes secondary gates. Enhancing the existing clariflers will increase the secondary treatment capacity, alleviate current operational problems, and will increase secondary treatment capacity for base and peak flows. Effluent quality and performance reliability will also be improved. These planned efficiency/ effectiveness improvements enable the deferral of the new secondary clarifiers originally planned for FY 04-05. Design and work on two clarifiers is planned for FY 04-05. Work on four clarifiers is planned for FY 05-06 with the final two clarifiers being completed in FY 06-07. South Aeration Basin Improvements FY 04-05 Capital Budget = $6,900,000 Expected cash flow: * FY 04-05 $1,725,000; FY 05-06 $5,175,000. The MWMC NPDES wastewater discharge permit, issued by the Department of Environmental Quality, in 2002, placed a limit on the allowable dry weather (May 1 st through October 31 st) discharge of ammonia for the first time. In order to meet this limit, the MWMC Facilities Plan identifies these projects to increase the dry weather aeration basin treatment capacity to 65 mgd with respect to ammonia (i.e., with nitrification) and increase the sustained (i.e., on a weekly basis) wet weather treatment capacity to 130 mgd. This project includes design and construction to add step feed processing, anoxic selectors, fine bubble diffusers, and remove hydraulic restrictions in' both south and north basins (effluent gates). It also includes future primary effluent flow control gates for both north and south basins. Design work and the beginning of construction is planned for FY 04-05. The remaining construction is planned for FY 05-06. Construction Management Facilities FY 04-05 Capital Budget = $100,000 This project is necessary to provide on-site office facilities for construction management staff at the WPCF during the 10-year MWMC facility construction effort. A project and staffing plan, to be developed in FY 04-05, will determine the type, size and location of these necessary facilities. · Cash Flow - In governmental budgeting, projects are fully budgeted in the fiscal year in which the contract is awarded. At the end of each fiscal year, unspent funds are carded forward until the project is completed. This April, 2004 DRAFT Page 28 FY 04-05 BUDGET AND CIP Metropolitan Wastewater Management Commission Capital Improvement Program provides budget appropriations necessary for MWMC to commit to contracts that span more than one fiscal year. Exhibit 8 Proposed Capital Improvements Program Projects - FY 04-05 Project Description Newly Proposed Carryover Total for for FY 04-05 from FY 03-04 FY 04-05 Biocycle Farm 0 2,100,000 2,100,000 Lab Modification 0 45,000 45,000 Plant Performance Improvements - 0 200,000 200,000 Pre-design Digester Mixing Design 200,000 0 200,000 Digester Mixing Improvements 1,800,000 0 1,800,000 Primary Clarifier Enhancements 1,200,000 0 1,200,000 Secondary Clarifier Enhancements Design 520,000 0 520,000 Secondary Clarifier Enhancements 4,780,000 0 4,780,000 South Aeration Basin Design 690,000 0 690,000 South Aeration Basin Improvements 6,210,000 0 6,210,000 Construction Management Facilities 100,000 0 100,000 Total $15,500,000 $2,345,000 $17,845,000 April, 2004 DRAFT Page 29 FY 04-05 BUDGET AND CIP Metropolitan Wastewater Management Commission Capital Improvement Program OTHER CAPITAL PROGRAMS · Equipment Replacement The FY 04-05 Capital Programs budget includes the equipment replacement projects identified in the table below. Proposed Equipment Replacement Projects - FY 04-05 Project Description Proposed Budget Raw Sewage Pumps~ (2) 200,000 Field Control Units for DCS 480,000 Inductively Coupled Plasma Unit 100,000 Pressure Line Gates 33,000 Plant Electrical System 720,829 Activated Sludge Pump 25,000 Boiler Controls 45,000 Phone System 56,044 Computer Replacement 30,568 Fleet Replacement 314,100 Total $2,004,541 · Major Rehabilitation The FY 04-05 Capital Programs budget includes the Major Rehabilitation projects identified in the table below. Proposed Major Rehab Projects - FY 04-05 Project Description Proposed Budget Screw Pump Coating 120,000 Secondary Clarifier Floor Coating 85,000 Raw Sewage Pump Room Roof Replacement 30,000 Operations Building Upgrade 50,000 Primary Building Roof Replacement 25,000 Parking Lots & Roadways Asphalt Sealing 40,000 Total $350,000 April, 2004 DRAFT Page 30 FY 04-05 BUDGET AND CIP Metropolitan Wastewater Management Commission Capital Improvement Program · Major Capital Outlay The FY 04-05 Major Capital Programs budget includes the major capital purchases identified in the table below. Proposed Major Capital Outlay - FY 04-05 Project Description Proposed Budget Dredge Movement System 250,000 Total $250,000 April, 2004 DRAFT Page 31 FY 04-05 BUDGET AND CIP Metropolitan Wastewater Management Commission Capital Improvement Program EXHIBIT 9 CAPITAL PROGRAMS 5 YEAR PLAN FY 04-05 FY 05-06 FY 06-07 FY 07-08 FY 08-09 TOTAL Capital Improvement Projects (CIP) (Sl)rin,,field Administration) Biosolids - Poplar Plantation 2,100,000 0 0 0 0 2,100,000 Biosolids - Poplar Plantation II 0 308,400 0 0 0 308,400 Biosolids - Poplar Plantation III 0 0 0 325,912 0 325,912 Biosolids - Line Lagoons I 0 0 1,268,141 0 0 1,268,141 Biosolids - Line Lagoons II 0 0 0 0 1,228,472 1,228,472 Lab Modification 45,000 0 0 0 0 45,000 River Avenue Improvements 0 339,240 0 0 0 339,240 Wilakenzie Pump Station Expansion 0 6,340,704 0 0 0 6,340,704 Glenwood Pump Station Upgrade 0 0 0 543,187 0 543,187 2004 Facilities Plan 200,000 0 0 0 0 200,000 Inffiuent Pumping Improvements 0 1,796,533 0 0 0 1,796,533 Dry Weather Headworks 0 0 0 13,905,587 0 13,905,587 Primary Clarifier Enhancements 1,200,000 0 0 0 0 1,200,000 Primary Sludge Thickening 0 0 0 3,910,946 0 3,910,946 Digester Mixing Improvements Design 200,000 0 0 0 . 0 200,000 Digester Mixing Improvements 1,800,000 0 0 0 0 1,800,000 3rd Gravity Belt Thickener 0 2,570,000 0 0 0 2,570,000 Odorous Air Treatment I 0 2,364,400 0 0 0 2,364,400 Odorous Air Treatment II 0 0 0 0 2,568,623 2,568,623 South Aeration Basin Improvements Design 690,000 0 0 0 0 690,000 South Aeration Basin Improvements 6,210,000 0 0 0 0 6,210,000 Parallel Primary/Secondary Treatment 0 0 11,950,113 0 0 11,950,113 Secondary Clarifier Enhancements Design 520,000 0 0 0 0 1,040,000 Secondary Clarifier Enhancements 4,780,000 0 0 0 0 7,355,800 9th & 10th Secondary Clarifiers 0 0 6,657,739 0 0 6,657,739 Sodium Hypochlorite Conversion 0 0 0 4,454,133 0 4,454,133 Tertiary Filtration Design 0 0 0 1,000,000 0 2,000,000 Tertiary Filtration I 0 0 0 0 10,151,643 10,151,643 Effluent Reuse I 0 0 2,641,960 0 0 5,283,920 Construction Management Facilities 100,000 0 0 0 0 100,000 SUB-TOTAL 17,845,000 13,719,277 22,517,953 24,139,765 13,948,737 98,908,493 Other Capital Programs (Eugene Operations) Equipment Replacement ~ 2,004,541 1,161,587 472,553 1,136,011 1,702,488 6,477,180 Major Rehab 350,000 252,000 362,610 596,374 765,000 2,325,984 Major Capital Outlay 250,000 216,800 0 0 219,183 685,983 SUB-TOTAL 2,604,541 1,630,387 835,163 1,732,385 2,686,671 9,489,147 TOTAL 20,449,541 15,349,664 23,353,116 25,872,150 16,635,408 108,397,640 April, 2004 DRAFT Page 32 FY 04-05 BUDGET AND CIP Metropolitan Wastewater Management Commission Capital Improvement Program 5-YEAR CAPITAL PROGRAMS $30,O00,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 $0 ~ ~ ~ FY 04-05 FY 05-06 FY 06-07 FY07-08 FY 08-09 IlClP BEquip Replacement DMajorRehabI April, 2004 DRAFT Page 33 FY 04-05 BUDGET AND CIP Metropolitan Wastewater Management Commission Reserves REGIONAL WASTEWATER PROGRAM RESERVES The RWP maintains reserve funds for dedicated purposes. Generally, reserves provide a buffer against substantial fluctuations in revenues and expenditures, resulting in the ability to maintain stable rates while fully funding operating and capital needs. Further details on the FY 04-05 reserves are provided below. WORKING CAPITAL RESERVE The Working Capital Reserve acts as a revolving account that is drawn down and replenished on a monthly basis to provide funds for payment of Springfield Administration and Eugene Operations costs prior to the receipt of user fees fi.om the Springfield Utility Board and Eugene Water and Electric Board. The Administration Working Capital Reserve is $200,000, and the operations Working Capital Reserve is $500,000. OPERATING RESERVE The Operating Reserve is used to account for accumulated operating revenues net of operations expenditures. The Commission has adopted a policy of maintaining a minimum Operating Reserve balance approximately equal to 10% of the adopted operating budget. The Operating Reserve For FY 04-05 is budgeted at 10% of the total of personal services, materials and services, and capital outlay in accordance with Commission policy. Additional budget detail for the Operating Reserve is provided below. ADOPTED AMENDED PROPOSED BUDGET BUDGET BUDGET FY 03-04 FY 03-04 FY 04-05 OPERATING RESERVE Beginning Balance $451,870 $1,264,188 $1,617,216 User Revenue 11,265,000 11,265,000 14,973,000 Septage Revenue 377,000 377,000 343,000 Other Revenue 277,765 277,765 456,494 Interest 23,600 23,600 69,000 Expenditures (10,149,817) (10,547,012) (11,616,707) Transfer to Reserves (1,231,098) (1,646,221) (4,684,793) Ending Balance $1,014,320 $1,014,320 $1,157,210 RATE STABLITY RESERVE The Rate Stability Reserve was established to implement the Commission's objective of maintaining stable rates. It is intended to hold revenues in excess of the current year's operating and capital requirements, in order to avoid "rate spikes" in future years. April, 2004 DRAFT Page 34 FY 04-05 BUDGET AND CIP Metropolitan Wastewater Management Commission Reserves ADOPTED AMENDED PROPOSED BUDGET BUDGET BUDGET FY 03-04 FY 03-04 FY 04-05 RATE STABILITY RESERVE Beginning Balance $0 $0 $0 Transfer From Operating Reserve 0 415,123 1,294,688 Transfer to Operating Reserve 0 0 0 Ending Balance $0 $415,123 $1,294,688 CAPITAL RESERVE The Capital Reserve accumulates revenues to funds transferred from the Operating Reserve for the purpose of funding the CIP, Major Capital Outlay and Major Rehabilitation Program costs. The intent is to minimize rate impacts associated with fluctuating Capital Program costs in any given year. The FY 04-05 Budget includes a contribution from the Operating Reserve of $3,000,000 to maintain this reserve and to cover CIP and Major Rehabilitation Program costs. The beginning balance on July 1, 2004 is projected to be $2,131,159. Additional budget detail on the CIP, Major Capital Outlay and Major Rehabilitation Program reserves is provided below. ADOPTED AMENDED PROPOSED BUDGET BUDGET BUDGET FY 03-04 FY 03-04 FY 04-05 CAPITAL RESERVE Beginning Balance $9,403,610 $9,846,742 $7,250,248 Transfer From Operating Reserve 750,000 750,000 3,000,000 Transfer From CSD 142,000 142,000 0 Interest 200,830 200,830 200,911 Revenue Bond Proceeds 0 0 6,500,000 Xfer to Fund 12 0 0 0 Funding For Capital Outlay 0 0 (250,000) Funding For Major Rehab (182,000) (458,078) (350,000) Funding For CIP (4,510,000) (5,030,416) (14,220,000) Ending Balance $5,804,440 $5,451,078 $2,131,159 * Revenue bond proceeds are indicated in order to balance budget expenditures. Because projected expenditures are less than the budgeted amount, no bond sale is planned for FY 04-05. EQUIPMENT REPLACEMENT RESERVE The Equipment Replacement Reserve accumulates replacement funding for three types of equipment: 1) major/stationary equipment items costing less than $200,000 with useful lives of 20 years or less; 2) fleet vehicles maintained by the Eugene Wastewater Division; and 3) computers that serve the Eugene Wastewater Division. Contributions to the Equipment Replacement Reserve in the FY 04-05 budget total $390,105. Expenditures from the Equipment Replacement Reserve in FY 04-05 total $2,004,541. Additional budget detail is provided below. April, 2004 DRAFT Page 35 FY 04-05 BUDGET AND CIP Metropolitan Wastewater Management Commission Reserves ADOPTED AMENDED PROPOSED BUDGET BUDGET BUDGET FY 03-04 FY 03-04 FY 04-05 EQUIPMENT REPLACEMENT RESERVE Beginning Balance $8,876,727 $9,057,346 $8,489,195 Annual Equipment Contribution 325,805 325,805 221,719 Annual Vehicle Contribution 136,693 136,693 142,173 Annual Computer Contribution 18,600 18,600 26,213 Interest 158,302 158,302 275,998 Equipment Purchases (1,026,630) (1,326,249) (2,004,541) Ending Balance $8,489,497 $8,370,497 $7,150,757 SYSTEM DEVELOPMENT CHARGE (SDC) RESERVE SDCs are required as part of the MWMC Intergovernmental Agreement. They are connection fees charged to new users to recover costs associated with construction of plant capacity, and are limited to funding Capital Programs. The purpose of the SDC Reserve is to collect and account for SDC revenues separately from other revenue sources, in accordance with statutory requirements. Since 1997, the Commission has maintained a SDC structure that is a combination of "Reimbursement" and "Improvement" fee components. Estimated SDC revenues for FY 04-05 total $1,112,440. Budgeted FY 04-05 Capital costs to be paid with SDCs are $3,625,000. The projected beginning SDC Reserve balance on July 1, 2004 is $3,013,335. Additional budget detail is provided below. ADOPTED AMENDED PROPOSED SDC RESERVE BUDGET BUDGET BUDGET FY 03-04 FY 03-04 FY 04-05 IMPROVEMENT SDCs Beginning Balance $363,264 $401,617 $489,495 SDCs Collected 80,495 80,750 105,700 Interest 7,383 7,383 6,061 Funding For Capital 0 0 0 Ending Balance $451,142 $489,750 $601,256 REIMBURSEMENT SDCs Beginning Balance $4,934,401 $5,205,570 $4,972,400 SDCs Collected 769,505 769,250 1,006,740 Interest 47,022 47,022 57,939 Materials and Services 0 (1,500) 0 Transfer To CSD 0 0 0 Funding For Capital (2,125,000) (2,145,292) (3,625,000) Ending Balance $3,625,928 $3,875,050 $2,412,079 April, 2004 DRAFT Page 36 FY 04-05 BUDGET AND CIP Metropolitan Wastewater Management Commission Springfield Budget Detail EXHIBIT 10 REGIONAL WASTEWATER PROGRAM RESERVES - LINE ITEM BUDGET ADOPTED AMENDED PROPOSED RESERVES BUDGET BUDGET BUDGET FY 03-04 FY 03-04 FY 04-05 WORKING CAPITAL Eugene $500,000 $500,000 $500,000 Springfield 200,000 200,000 200,000 CAPITAL RESERVE 8,489,497 8,370,497 7,150,757 EQUIPMENT REPLACEMENT RESER~ 14,293,937 13,821,575 7,271,916 SDC RESERVE 4,077,070 4,364,800 3,013,335 OPERATING RESERVE 1,014,320 1,014,320 1,157,210 RATE STABILITY RESERVE 0 415,123 1,294,688 TOTAL RESERVES $28,574,824 $28,686.315 $20,587,906 April, 2004 DRAFT Page 37 FY 04-05 BUDGET AND CIP Metropolitan Wastewater Management Commission Springfield Budt~et Detail CITY OF SPRINGFIELD REGIONAL WASTEWATER PROGRAM RESPONSIBILITIES The City of Springfield manages administration services for the RWP under a contract with the MWMC. The programs maintained by Springfield to support the RWP are summarized below and are followed by Springfield's regional wastewater budget summaries. Activities, and therefore program budgets, for MWMC administration vary from year to year depending upon the major construction projects and special initiatives underway. A list of the capital projects Springfield staff will support in FY 04-05 is provided in Exhibit 3 on page 18. MWMC ADMINISTRATION The Springfield Environmental Services Division and Finance Department provide ongoing support and management services for MWMC. The Public Works Director and the Environmental Services Manager serve as the MWMC Executive Officer and General Manager, respectively. Springfield provides the following administration functions: financial planning management, accounting and financial reporting; risk management and legal services; coordination and management of public policy; coordination and management of regulatory and permit compliance issues; coordination between the Commission and the governing bodies; long-range capital project planning and construction management; coordination of public information, education, and citizen involvement programs; sewer user customer service; and coordination and development of regional budgets, rate proposals, and revenue projections. INDUSTRIAL PRETREATMENT (SOURCE CONTROL) PROGRAM The Industrial Pretreatment Program is a regional activity implemented jointly by the cities of Eugene and Springfield. The Industrial Pretreatment section of the ESD is charged with administering the program for the regulation and oversight ofwastewaters discharged to the sanitary collection system by industries in Springfield. This section is responsible for ensuring that these wastes do not damage the collection system, interfere with wastewater treatment processes, result in the pass-through of harmful pollutants to treated effluent or biosolids, or threaten worker health or safety. This responsibility is fulfilled through, in party, by the use of a permit system for industrial dischargers. This permit system, common to both Eugene and Springfield, implements necessary limitations on waste characteristics and establishes inspection, monitoring, and reporting requirements for documenting waste quality and quantity controls. The Industrial Pretreatment section is also responsible for locating new industrial discharges in Springfield and evaluating the impact of those discharges on the regional WPCF. As of February 2004, there were 15 significant industrial users under permit in Springfield. The Industrial Pretreatment Program also addresses the wastewater discharges of some commercial/industrial businesses through the development and implementation of Pollution Management Practices. Pretreatment program staff also coordinate pollution prevention activities in cooperation with the Pollution Prevention Coalition of Lane County. April, 2004 DRAFT Page 38 FY 04-05 BUDGET AND CIP Metropolitan Wastewater Management Commission Springfield Budget Detail ACCOUNTING & FINANCIAL REPORTING Accounting and financial reporting services for the RWP are provided by the Accounting section in the Springfield Finance Department, in coordination with ESD. Springfield Accounting staff maintain grant and contract accounting systems, as well as compliance with all local, State and Federal accounting and reporting requirements for MWMC finances. This section also assists ESD with preparation of the MWMC budget, capital financing documents, sewer user rates, and financial policies and procedures. EXltIBIT 11 SPRINGFIELD ADMINISTRATION PROGRAM pRoPOSED FY 04-05 BUDGET SUMMARY ADOPTED AMENDED PROPOSED ACTUAL BUDGET BUDGET BUDGET CHANGE * FY 02-03 FY 03-04 FY 03-04 FY 04-05 INCR/(DECR) Personnel Services $570,241 $629,236 $629,236 $1,048,644 $419,408 67% Materials & Services 1,061,101 1,206,553 1,282,393 1,639,968 433,415 36% Capital Outlay 8,577 0 0 37,750 37,750 NA Budget Summary $1,639,919 $1,835,789 $1,911,629 $2,726,362 $890,573 49% 5-YEAR MWMC ADOPTED BUDGET COMPARISON SPRINGFIELD ADMINISTRATION $3,000,000 $2,726,362 $2,500,000 $2,O00,000 $1,638,457 $1,500,000 $1,342,358 $t~41~?o~ ~ ,ooo,ooo [_ $500,000 $0 , : I ~ ~ FY 00-01 FY 01-02 FY 02-03 FY 03-04 FY04-05 Note: * Change column and percent change column compare proposed FY 04-05 budget to originally adopted FY 03- 04 budget. April, 2004 DRAFT Page 39 FY 04-05 BUDGET AND CIP Metropolitan Wastewater Management Commission Springfield Budget Detail EXHIBIT 12 SPRINGFIELD ADMINISTRATION LINE ITEM BUDGET SUMMARY ADOPTED AMENDED PROPOSED ACTUAL BUDGET BUDGET BUDGET CHANGE PERSONNEL SERVICES FY 02-03 FY 03-04 FY 03-04 FY 04-05 INCR/(DECR) Regular Wages $443,927 $454,428 $454,428 $732,670 $278,242 61% Overtime 92 5,500 5,500 5,500 0 0% Pets Services Adjustments 0 9,695 9,695 6,720 (2,975) -31% Comp Time Payoff 0 12,837 12,837 15,022 · 2,185 17% Employee Benefits 126,223 146,776 146,776 288,732 141,956 97% Total Personnel Services $570,241 $629,236 $629,236 $1,048,644 $419,408 67% FTE 7.30 8.40 8.40 14.05 5.65 MATERIALS & SERVICES Billing & Coll Exp 387,618 414,000 414,000 425,000 11,000 3% Contractual Services 51,269 68339 93,979 188,439 120,300 177% Litigation Expense 40,779 0 0 0 0 NA Environmental Ed 56 5,000 5,000 5,000 0 0% Attorney Fees 28,459 42,000 42,000 45,000 3,000 7% Corn Emerg Notification System 0 2,800 2,800 2,800 0 0% PP&L Insurance 220,204 225,000 275,000 330,000 105,000 47% Telephone 1,372 732 732 2,070 1,338 183% Ris/Airs/Geo Charges 2,753 6,674 6,674 10,843 4,169 62% Advertising 707 4,500 4,500 4,500 0 0% Duplicating Supplies 2,808 2,415 2,415 2,450 35 1% Printing 293 7,500 7,500 7,500 0 0% Travel & Meeting Expenses 2,109 16,150 16,150 20,800 4,650 29% Internal Meeting 674 0 0 0 0 NA Property Taxes 0 9,000 9,000 9,000 0 0% WPCF/NPDES Permits 86,590 90,000 90,000 90,000 0 0% Safety Clothin~Ecl 0 200 200 200 0 0% Pretreatmem Supplies 2,098 3,500 3,500 3,500 0 0% Gasoline & Oil 453 462 462 543 81 18% Utilities 3,994 4,969 4,969 5,098 129 3% Memberships, Books, Subscrips 11,647 13,150 13,150 15,482 2,332 18% Postage & Shipping Charges 1,779 3,500 3,500 3,500 0 0% Office Supplies 6,928 7,500 7,500 9,575 2,075 28% Computer Software 160 920 920 21,485 20,565 2235% Small Furniture & Appliances 0 0 0 2,000 2,000 NA Prom'am Expense 11,431 35,550 35,550 35,550 0 0% Internal System Mtce 0 8,000 8,000 8,500 500 6% Etluipment Maintenance 3,332 2,109 2,109 2,325 216 10% Property Maintenance 0 500 500 500 0 0% Employee Development 3,137 9,125 9,125 18,205 9,080 100% Internal Insurance Chgs 2,878 2,353 2,353 4,484 2,131 91% Internal Veh Mt Chgs 1,096 977 977 1,936 959 98% Phone Ecluip Chgs 627 405 405 604 199 49% Internal Fac Rent 5,950 10,411 10,411 11,535 1,124 11% Computer Equip Chgs 7,900 6,718 6,718 14,464 7,746 115% Data Proc Chgs 19,655 26,423 26,423 44,682 18,259 69% Bldg Maint Chgs 7,743 13,738 13,738 20,888 7,150 52% Internal Veh & Erluip Rent 4,125 3,772 3,772 7,507 3,735 99% Internal Employee Benefit 4,348 5,620 5,620 9,306 3,686 66% Indirect Costs 134,414 152,741 152,741 254,697 101,956 67% Total Materials & Services $1,061,101 $1,206,553 $1,282,393 $1,639,968 $433,415 36% CAPITAL OUTLAY Total Capital Outlay 8,577 0 0 37,750 $37,750 NA TOTAL ADMIN $1,639,919 $1,835,789 $1,911,629 $2,726,362 $890,573 49% April, 2004 DRAFT Page 40 FY 04-05 BUDGET AND CIP Metropolitan Wastewater Management Commission Eugene Budget Detail CITY OF EUGENE REGIONAL WASTEWATER PROGRAM RESPONSIBILITIES The Wastewater Division for the City of Eugene manages all regional wastewater pollution control facilities serving the Eugene/Springfield and River Road/Santa Clara areas under the Intergovernmental Agreement with the MWMC. These regional facilities include the Eugene/Springfield Regional Water Pollution Control Facility, the 154 acre Biosolids Management Facility, the 286 acre Seasonal Industrial Waste Facility, the 600 acre Biocycle Farm site, and regional wastewater pumping stations and transmission sewers. In support of the water pollution control program, the Division also provides technical services for wastewater treatment; management of equipment replacement and infrastructure rehabilitation, biosolids treatment and recycling, an industrial source control and pretreatment program in conjunction with City of Springfield staff, regional laboratory services for wastewater and water quality analyses. ADMINISTRATIVE AND MANAGEMENT SERVICES Administrative Services provides management, administrative, and office support to the Wastewater Division. This support includes the general planning, directing, and managing of the activities of the Division; development and coordination of the budget; administration of personnel records; and processing of payroll, accounts payable, and accounts receivable. This section also provides tracking and monitoring of all assets for the regional wastewater treatment facilities and clerical support for reception, telephone services, and other miscellaneous needs. Another area this program administers is the coordination of local and regional billing and rate activities. REGIONAL WASTEWATER TREATMENT FACILITY OPERATIONS The Wastewater Division operates the WPCF to treat domestic and industrial liquid wastes to achieve an effluent quality that protects and sustains the beneficial uses of the Willamette River. The WPCF is designed to treat 49 million gallons per day (MGD) of dry weather flow, with a peak hydraulic capacity of 105 MGD for full secondary treatment. The Operations section optimizes integrated wastewater treatment processes to ensure effluent quality requirements are met in an effective manner. In addition, the Operations section provides 24 hour/day alarm monitoring of all plant processes, regional and local pump stations, and the Biosolids and Seasonal Industrial Waste Facilities. REGIONAL WASTEWATER TREATMENT FACILITY MAINTENANCE Preservation of the multi-million dollar investment in the equipment and infi:astructure of the WPCF is the responsibility of the Maintenance section of the Wastewater Division. This section provides a preventative maintenance program to maximize equipment life and performance; a corrective maintenance program for repairing April, 2004 DRAFT Page 41 FY 04-05 BUDGET AND CIP Metropolitan Wastewater Management Commission Eugene Budget Detail unanticipated equipment failures; a facility maintenance program to maintain the buildings, treatment structures, and grounds; and a stores unit that purchases and stocks parts and supplies and assists with professional services contracting. Also included within the Maintenance section's charge are the pump stations and sewers in the regional and local collection system, and the facilities and equipment at the Biosolids Management and Seasonal Industrial Waste Facilities. BIOSOLIDS MANAGEMENT The biological solids (biosolids) produced as a result of the activated sludge treatment of wastewater is managed by the Residuals Management section of the Wastewater Division. This section operates the Biosolids Management Facility (BMF) and Biocycle Farm located at Awbrey Lane in Eugene. Approximately 4,750 dry tons of biosolids are produced annually by the WPCF. These biosolids are treated using anaerobic digestion, stored in facultative lagoons (which provide some additional treatment benefits), and then air-dried to reduce the water content and facilitate transport. The dried material is ultimately recycled to agricultural land as a beneficial fertilizer and soil conditioner. In 2004 the first phase of the Biocycle Farm will begin operations, beneficially reusing biosolids through irrigation on poplar trees. This section also manages the Seasonal Industrial Waste (SIW) facility. The SIW is in transition since the sole user of the facility closed down their operations. Future users of the site are being evaluatect and decisions will be made in FY 04-05 as to the operational objectives of this facility. INDUSTRIAL SOURCE CONTROL (Pretreatment) and ANALYTICAL SERVICES In 2004 the pretreatment and laboratory programs were combined into one section, and a separate Sampling Team was also created. The pretreatment program is a regional activity implemented jointly by the cities of Eugene and Springfield. This section of the Wastewater Division is charged with administering the pretreatment program for the regulation and oversight ofwastewaters discharged to the sanitary collection system by fixed-site industries in Eugene and by mobile waste haulers in the Eugene and Springfield areas. This section is also responsible for ensuring that these wastes do not damage the collection system, interfere with wastewater treatment processes, result in the pass-through of harmful pollutants to treated effluent or biosolids, or threaten worker health or safety. This responsibility is fulfilled through the use of a permit system for industrial dischargers. This permit system, common to both Eugene and Springfield, implements necessary limitations on waste characteristics and establishes inspection, monitoring, and reporting requirements for documenting waste quality and quantity controls. The staff is also responsible for locating new industrial discharges in Eugene and evaluating the impact of new non-residential discharges on the WPCF. As of January 2004, there were 21 significant industrial users under permit in Eugene. The section also has responsibilities related to environmental spill response activities and ambient and stormwater quality monitoring. April, 2004 DRAFT Page 42 FY 04-05 BUDGET AND CIP Metropolitan Wastewater Management Commission Eugene Budget Detail The section further provides necessary analytical services in support ofwastewater treatment, residuals management, industrial source control, stormwater monitoring, and special project activities of the Wastewater Division. The laboratory's services include sample handling and analyses of influent sewage, treated wastewater, biosolids, industrial wastes, cannery wastewater, stormwater, and groundwater. Information from the laboratory is used to make treatment process control decisiOns, document compliance with regulatory requirements, demonstrate environmental protection, and ensure worker health and safety. The Sampling Team is responsible for all of the sampling activities related to regional wastewater program functions. These include the Eugene pretreatment program, wastewater treatment process control, effluent and ambient water quality, groundwater quality, facultative sludge lagoons, and stormwater samples. This section also evaluates and reports on the sampling data for various programs. MANAGEMENT INFORMATION SERVICES (MIS) The MIS section provides services for electronic data gathering, analysis, and reporting as necessary in compliance with regulatory requirements and management functions. This section also maintains the electronic communication linkages with the City of Eugene and the Regional Information System, and supplies technical expertise and assistance in the selection, operation, and modification of computer systems (hardware and software) within the Division. PROJECT MANAGEMENT Management ofwastewater system improvements and ongoing developments is carried out by the Project Management staff. Activities include problem-solving and action recommendations, project management, technical research, computer-aided design and electronic storage of design drawings, and planning of projects to anticipate and prepare for new regulatory and operational requirements. The Project Management staff develops Request for Proposals and Request for Quotes, coordinate special project activities between work sections, and coordinates the procurement of building permits as necessary in support of project activities. April, 2004 DRAF¥ Page 43 FY 04-05 BUDGET AND CIP Metropolitan Wastewater Management Commission Eugene Budget Detail EXI-IIBIT 13 O & M - CITY OF EUGENE PROGRAM PROPOSED FY 04-05 BUDGET SUMMARY ADOPTED AMENDED PROPOSED ACTUAL BUDGET BUDGET BUDGET CHANGE * FY 02-03 FY 03-04 FY 03-04 FY 04-05 INCR/(DECR) PersonnelServices $4,763,640 $5,123,990 $5,123,990 $5,408,079 $284,089 6% * Materials & Services 3,042,927 3,166,038 3,330,180 3,306,316 140,278 4% Capital Outlay 33,625 24,000 181,213 175,950 151,950 633% Budget Summary $7,840,192 $8,314,028 $8,635,383 $8,890,345 $576,317 7% 5-YEAR MWMC ADOPTED BUDGET COMPARISON O&M - EUGENE $10,000,000 $8,890,345 $7,980,217 $8,314,028 $8,000,000 930 $6,000,000 $4,000,000 $2,000,000 $o FY 00-01 FY 01-02 FY 02-03 FY 03-04 FY 04-05 Notes: * Change column and percent change column, compare proposed FY 04-05 budget to adopted FY 03-04 budget April, 2004 DRAFT Page 44 FY 04-05 BUDGET AND CIP Metropolitan Wastewater Management Commission Eugene Budget Detail EXHIBIT 14 O&M - CITY OF EUGENE LINE ITEM BUDGET SUMMARY ADOPTED AMENDED PROPOSED ACTUAL BUDGET BUDGET BUDGET CHANGE FY 02-03 FY 03-04 FY 03-04 FY 04-05 INCR/(DECR) PERSONNEL SERVICES Regular Wages $3,190,701 $3,268,886 $3,268,886 $3,379,958 $111,072 Extra Help 60,325 46,360 46,360 66,657 20,297 44% Overtime 35,833 40,557 40,557 33,742 (6,815) -17% Employee Benefits 917,447 1,150,749 1,150,749 1,195,884 45,135 Health Insurance 508,546 561,902 561,902 659,243 97,341 17% Workers' CompfLlnemploy Ins 50,788 55,536 55,536 72,594 17,058 31 TOTAL PERSONNEL SERVICES 4,763,640 5,123,990 5,123,990 5,408,079 284,089 6% FTE 64.33 68.14 68.14 70.36 2.22 3% MATERIALS & SERVICES Utilities 555,968 613,623 613,623 648 100 34,477 6% Fleet Operating Charges 177,850 190,426 190,426 189 071 (1,355) -1% Maintenance-Equip & Facilities 302,729 233,537 383,537 351 151 117,614 50% Contractual Services 221,656 233,762 237,362 193 565 (40,197) -17% Materials & Program Expense 422 963 433,085 433,085 478 785 45,700 1 Chemicals 176 716 184,118 184,118 183 293 (825) 0% Parts & Components 266 231 209,950 220,492 231 850 21,900 10% Risk Insurance - Employee Liability 56 924 122,697 122,697 111,428 (11,269) -9% Laboratory Equipment & Supplies 51 628 53,384 53,384 72,534 19,150 36% Computer Equip, Supplies, Maim 78 705 79,352 79,352 77,434 (1,918) -2% Indirects 731 556 812,104 812,104 769,105 (42,999) -5% TOTAL MATERIALS & SERVICES 3,042,927 3,166,038 3,330,180 3,306,316 140,278 4% CAPITAL OUTLAY Motorized Vehicles $0 $0 $0 $0 0 NA Office Machines & Furniture 0 0 0 0 0 NA Computer & Electronic Equipment 0 0 0 0 0 NA Laboratory & Test Equipment 0 0 0 0 0 NA Capital Outlay-Other 33,625 24,000 181,213 175,950 151,950 633% TOTAL CAPITAL OUTLAY 33,625 24,000 181,213 175,950 151,950 633% LINE ITEM SUMMARY: EUGENE 7,840,192 8,314,028 8,635,383 8,890,345 576,317 EQUIPMENT REPLACEMENT $ 586,398 $ 1,026,630 $ 1,207,249 $ 2,004,541 $ 977,911 81% MAJOR REHAB $ 384,522 $ 182,000 $ 458,078 $ 350,000 $ 168,000 37% MAJOR CAPITAL OUTLAY $ - $ $ - $ 250,000 $ 250,000 NA April, 2004 DRAFT Page 45 FY 04-05 BUDGET AND CIP CAPITAL IMPROVEMENTS PROGRAM This Capital Improvements Program (CIP) document has been developed to describe the capital projects planned for the Regional Wastewater Program (RWP) over the coming five years. It is consistent with policies contained in the Metropolitan Wastewater Management Commission (MWMC) Financial Plan. Projects in the five-year CIP are generally identified in facility planning documents, including the Wet Weather Flow Management Plan (WWFMP), the Biosolids Master Plan, and the MWMC Facilities Plan. These planning documents were created to identify and address capital needs over a twenty-year time horizon, taking into account anticipated population growth, environmental regulation, and available new technologies. Occasionally, urgent projects may be added to the CF or the Capital Budget at Commission direction, without amending the various planning documents. This five-year CIP reflects the projects fi:om those planning documents which are anticipated to be begun in the five-year period commencing July 1, 2004. Project sheets are included in this CF for each project, including a brief description, project cost, timing of construction, and other details. For a more complete description of the requirements for each project, readers are directed to the appropriate planning documents. (WWFMP, Biosolids Master Plan, Facilities Plan). The capital projects listed in the FY 04-05 MWMC Capital Budget are those projects in this five-year CI~ which will be commenced in FY 04-05. Capital projects that began in prior years but continue into FY 04-05 are not included in the CIP, although they do appear in the FY 04-05 MWMC Capital Budget. Projects are categorized by the facility process to Which they contribute. All projects are defined as being a component of one or more of these processes: · Collection System Pipeline - The regional pipes that convey sewage to the WPCF. There are no Collection System Pipeline projects scheduled in this five-year CF. · Collection System Pump stations - The pump stations that support the regional piPeline system. The Collection System Pump Stations projects in this five-year CIP are: o Willakenzie Pump Station Expansion (FY 05-06) - $6,340,704 * o Glenwood Pump Station Upgrade (FY 07-08) - $543,187 · Preliminary Treatment - The headworks and screening devices that convey the wastewater into the plant and remove sand, grit, and non-organic waste. The Preliminary Treatment projects in this five-year CIP are: o Influent Pumping Improvements (FY 05-06) - $1,796,533 o Dry Weather Headworks (FY 07-08) - $13,905,587 * Note: Amounts given are in inflated dollars, using the Engineering News Record construction inflation factor. Page 46 · Primary Treatment- The process that provides the initial treatment to wastewater by removing solids through sedimentation. The Primary Treatment projects in this five-year C]P are: o Primary Cladfier Enhancements (FY 04-05) - $1,200,000 o Primary Sludge Thickening (FY 07-08) - $3,910,946 · Secondary Treatment - The process that further removes solids through aeration and additional sedimentation. Secondary treatment also includes the digesters that further processes removed solids. The Secondary Treatment projects in this five-year CIP are: o Digester Mixing Improvements (FY 04-05) - $2,000,000 o Third Gravity Belt Thickener (FY 05-06) - $2,570,000 o South Aeration Basin (FY 04-05) - $6,900,000 o Secondary Claxifier Enhancements (FY 04-05) - $5,300,000 o Ninth and Tenth Secondary Clarifiers (FY 06-07) - $6,657,739 · Disinfection/Outfall- The final treatment and discharge of treated wastewater to the Willamette River. The Disinfection/Outfall project in this five-year CIP is: o Sodium Hypochlorite Conversion (FY 07-08) - $4,454,133 o Outfall Mixing Zone Study (FY 05-06) - $154,200 · Biosolids - The Biosolids Management Facility, Biocycle Farm, and all the equipment needed to further process and reuse biosolids after they have left the WPCF. The Biosolids projects in this five-year CIP are: o Biosolids - Poplar Plantation II (FY 05-06) - $576,680 o Biosolids - Poplar Plantation III (FY 07-08) - $325,912 o Biosolids - Line Lagoons I (FY 06-07) - $1,268,141 o Biosolids - Line Lagoons II (FY 08-09) - $1,228,472 · Tertiary Filters - Filtration that maximizes the cleanliness of the treated wastewater and further removes BOD and TSS. The Tertiary Filters project in this five-year CIP is: o Tertiary Filtration (FY 07-08) - $11,151,643 · Reuse Facilities - Facilities that allow the safe, beneficial reuse of treated water for irrigation and other uses. The Reuse Facilities project in this five-year CIP is: o Effluent Reuse I (FY 06-07) - $2,641,960 · Odor Control - Projects that capture and filter odorous air. The Odor Control projects in this five-year CIP are: o Odorous Air Treatment- I (FY 05-06) - $2,364,400 o Odorous Air Treatment - II (FY 08-09) - $2,568,623 · Peak Flow Management - Projects specifically designed to address peak flows, initially identified in' the WWFMP. The Peak Flow Management projects in'this five-year CIP are: o Wet Weather Flow Management Plan Update (FY 05-06) - $257,000 o Support Private Lateral Program (FY 05-06) - $257,000 Page 47 o Parallel Primary/Secondary Peak Flow Management (FY 06-07) - $11,950,113 General System Improvements (aka Indirects) - These projects do not fit into one of the other categories, or they contribute to multiple categories. The General System Improvements projects in this five-year CIP are: o River Avenue Improvements (FY 05-06) - $339,240 o Construction Management Facilities (FY 04-05) - $100,000 Over the course of the five-year CIP horizon, it is anticipated that the cost of all capital projects identified in this CIP will total $85,340,000 in FY 03-04 dollars and $90,093,013 in inflated dollars. Current estimates of funding sources available for these projects (in inflated dollars) are: · User Fee Reserves - $55,663,696 · Reimbursement SDCs - $34,429,316 The capital projects identified, and the funding sources outlined, are in conformance with the MWMC 2003 Financial Plan and Commission direction. Page 48 BIOSOLIDS - POPLAR PLANTATION II Facility Process Component Biosolids $575,680 Total Cost ::.i: PRIOR: ~::? !! Design & Engineedng 0 Construction 5757680 575,680 TOTAL ! !~:~/:i!%~= :~ .'i:.i :~ ~(J FUNDING SOURCE Capi~l R~e~e ~9,030 ~9,03C Improvemen~ent SDC Rese~e 126~650 126,6~ * Inflated from ~ 0~5 ~s~ at 2.8% per year (Engineering News Re.rd ~ctor) PROJECT: Biosolids - Poplar Plantation II & Biocycle Fa~ Hose Reels DESCRIPTION: An additional 130 acres- site preparation begins in 8/05; planting in 3~06. JUSTIFICATION: Land already pumhased and provides additional area adjacent to BMF for appli~flon of liquid and dewatemd biosolids. Expansion of the BF provides MWMC with mom flexibili~ and control of overall biosolids management pmg~m. PROJECT DR~ER: Increased solids pmdu~ion at ~e ~S WPCF and cu~ently stodng an excess invento~ of biosolids in the lag~ns. PROJECT TRIGGER: Biocycle Fa~ Phase 1 loading limits for liquid and dewatemd biosolids am roached. Also, might accele~te E loss of ~opemtive fa~ing land application sites. ~PE OF PROJECT: 100% Peffo~ance ESTIMATED PROJECT COST $560,000 (2004' Dollam): INF~TED PROJECT COST $575,680 {2005 Dollam): PHASING: Budgeted for ~ 2005106 Page 51 BIOSOLIDS - POPLAR PLANTATION III Facility Process Component Biosolids $325,912 Total Cost !pRIOR;': ~ :~ ~.?:; :::~:: :!? ;' i! i: :i.ii ? ~=.: ]":':.:,:, ~.ii::i. :: :':~ ~': :::'"i :":.~ i '",~!'" ";: ~i; ~.~'?:~i: Construction 325~912 325,912 TOTAL %fi;~2.? 47:i:!;?D. ,.L.;:'::;~:;~ii.i;~:iiii~ :~,?, 0 F:i.:;~i/~.~:.325i~.12 i!.~::'::'":i~325~9~2 FUNDING SOURCE Capital Reserve 254,212! 254,212 Improvementment SDC Reserve 71,701i 71,701 TOTAL .~:.:.?;:; ;:?.':?": 0 ~;,,.:. ;;.,,~i?~;!:0, ,~:;~!?i;?'..::i~;ii!)) i:0 ~.2':} .:::':{~ :i;:~,!:~ 0 :, :?'!~.325;9~2~i.:: ;",:: '.;:~;;";,0: "~:~:::: 325;91:2 * Inflated from FY 04-05 costs at 2.8% per year (Engineering News Record factor) PROJECT: Biosolids - Poplar Plantation III DESCRIPTION: Final 120 acres of the Biocycle Farm - site pr. eParation begins in August, 2007; planting in March, 2008. JUSTIFICATION: Land already purchased and provides additional area adjacent to BMF for application of liquid and dewatered biosolids. Expansion of the Biocycle Farm provides MWMC with more flexibility and control of overall biosolids management program. PROJECT DRIVER: Increased solids production at the E/S WPCF and currently storing an excess inventory of biosolids in the lagoons. PROJECT TRIGGER: BF Phase 1 and 2 loading limits for liquid and dewatered biosolids am reached. Also, might accelerate if loss of cooperative farming land application sites occur. TYPE OF PROJECT: 100% Performance ESTIMATED PROJECT COST $300,000 (2004 Dollars): INFLATED PROJECT COST $325,912 {2007 Dollars): PHASING: Budgeted for FY 2007~08 Page 52 BIOSOLIDS - LINE LAGOONS I Facility Process Component Biosolids $1,268,141 Total Cost Design & Engineering 105,678 105,678 Construction 1,162,462 1,162~462 TOTAL FUNDING SOURCE Capital Reserve 1,268,141 1,268~141 TOTAL ?::::::::::::::::::::::::::?O ~:~ ~i'!.::~:.!::~i:~:'.O .".'?:~':: ::i;:~'0' ~!~.~,1i268:,i~..1!~?~:i':~:: ~::!~i~.f~:::;0;!~.?'~? :'.:~': ~i~:'0 ?:~ ~1:,268~14;1: * Inflated from FY 04-05 costs at 2.8% per year (Engineering News Record factor) PROJECT: Biosolids - Line lagoons I DESCRIPTION: Reline lagoons, Phase 1 - from existing MWMC CIP. JUSTIFICATION: Testing has indicated that the lagoons may be leaking. PROJECT DRIVER: Regulatory requirements and maintaining operational reliability. PROJECT TRIGGER: Identification of temporary storage location for contents of lagoon and installation of temporary equipment required to transfer lagoon contents. TYPE OF PROJECT: 100% Rehabilitation ESTIMATED PROJECT COST $1,200,000 (2004 Dollars): INFLATED PROJECT COST $1,288,141 (2006 Dollars): PHASING: Budgeted for FY 2006/07 Page 53 BIOSOLIDS - LINE LAGOONS II Facility Process Component Biosolids $1,228,472 Total Cost Costs ~ i~PEND~ Constru~on 1,228,472 1 ~228;472 TOTAL FUNDING SOURCE Capi~l Resewe 1,228,472 1,228~472 TOTAL Inflated ~om ~ ~05 ~s~ at 2.8% per year (Enginee~ng News Re.rd ~or) PROJECT: Biosolids - Line Lagoons II DESCRIPTION: Reline lag~ns, Phase 2 -f~m existing MWMC CIP. JUSTIFICATION: Testing has indicted that ~e lagoons may be leaking. PROJECT DRNER: Regulato~ requirements and mainlining operational reliabili~. PROJECT TRIGGER: Identification of tempom~ storage io~tion for ~ntents of lagoon and ins~llation of tempo~ equipment required to transfer lagoon ~ntents. ~PE OF PROJECT: 100% Rehabili~ti0n ESTIMATED PROJECT COST $1,100,000 (2004 Dollars): INF~TED PROJECT COST $1,228,472 (2008 Dollam): PHASING: Budgeted for FY 2008/09 Page54 RIVER AVENUE IMPROVEMENTS Facility Process Component Support Facilities $339,240 Total Cost i,i, ~pRIOR ~ · Costs Design & Engineering 0 Oonstruotion 339,240 339~240 TOTAL ~ i.¥;?:~,~', ~?!'~ 0 FUNDING SOURCE Capital Reserve 339,240 339~240 TOTAL ?i ..'-';~ :':' :.~;0 ::~.;!'.339;2~,0::: :'?~.? ;:.;.,; .'~.0 :%:?-: ?:.': ~.:::'i;0 :~ ~i:..': :':r339;2~t0 * Inflated from FY 04-05 costs at 2.8% per year (Engineering News Record factor) PROJECT: River Avenue improvements DESCRIPTION: Construct road improvements JUSTIFICATION: PROJECT DRIVER: River Avenue is not built to City of Eugene standards. PROJECT TRIGGER: N/A TYPE OF PROJECT: 100% Rehabilitation ESTIMATED PROJECT COST $330,000 (2004 Dollars): INFLATED PROJECT COST $339,240 (2005 Dollars): PHASING: Budgeted for FY 2005/06 Page 55 WET WEATHER FLOW MANAGEMENT PLAN UPDATE Facility Process Component Peak Flow Management $257,000 Total Cost ~, PRIOR'!i:. ;~:~ :; ~i:i:i:' ii~,ii::::,.::;:;:-.::;:'::~'.' 'i;~:'~i,~:~ '::!~ ~:.::i~i'!i'; i:;;!:,::~:i' i~ ~'~:~ ::;:'~ ~::: costs ::i: O~er 257,000 257,0~ FUNDING SOURCE Capi~l Rese~e 182,470 182,470 Improvemen~ent SDC Rese~e 74,530 74,530 TOTAL .%:?~: ~ ::: ?¥~,'~ ~ ~ ~'::.: O: Inflated ~m ~ 04-05 ~s~ at 2.8% per year (Engineering News Re.rd factor) PROJECT: ~FMP Update DESCRIPTION: Evaluate collection system flow monito~ng da~ collected since the original ~FMP final~ed in 2000, update and ~n collection system model. And ~nfi~ (revise) ~nvey t~at app~ach. JUSTIFICATION: Ongoing monitoring d~ta might impact I/I reduction pfio~ties. PROJECT DRIVER: Ongoing goal to find the most cost effective means of reducing I/I. PROJECT TRIGGER: Once sufficient monitoring data is available. TYPE OF PROJECT: 100% performance ESTIMATED PROJECT COST $250,000 (2004 Dollars): INFLATED PROJECT COST $257,000 (2005 Dollars): PHASING: Budgeted for FY 2005/06 Page 56 SUPPORT PRIVATE LATERAL PROGRAM Facility Process Component Peak Flow Management $257,000 Total Cost Costs ~:::EXPEND~i:: ~;:! 1:200~5~;; ~[ :; :2005,0~:~ .;~ 2006~7 :; ;!200~8: · :: 200~9:: ~ 'TOTAE Other 257,000 257,00C ' '' '::'' :~ :~ OI i ~,~:~'.~:% ::'::::;~:, 0 TOTAL FUNDING SOURCE 182,470 Capi~l Resewe 182,47C Impmvemen~ent SDC Rese~e 74'~0' 74,53C TOTAL · Inflated Eom ~ 04~5 ~s~ at 2.8% per year (Engineering News Re,rd ~) PROJECT: Suppo~ Private Lateral Program DESCRIPTION: MWMC Incentive money. JUSTIFICATION: Private lateral program would facilitate a more comprehensive I/I reduction program. PROJECT DRIVER: Ongoing goal to find the most cost effective means of reducing I/I. PROJECT TRIGGER: Consensus with Cities to proceed with pmg~m. ~PE OF PROJECT: 100% tRehabili~on ESTIMATED PROJECT COST $250,000 (2004 Dollam): INF~TED PROJECT COST $257,000 (2005 Dollam): PHASING: Budgeted for FY 2005/06 Page 57 WILLAKENZIE PUMP STATION EXPANSION Facility Process Component Collection System Pump Stations $6,340,704 Total Cost D~ign & Engineering 8~,070 ~,070 ~ns~on 5,70~,6~ TOTAL FUNDING SOURCE Capibl Rese.e 3,931,236 3,931,23S Improvemen~ent SDC Rese.e 2,409,4~8 2,409,468 TOTAL ;;; :~/~? ::;. ;~:~ :~/C ~,~ ~:; ~:.:~;~:':¥~ O :~:~ 6,~0;~ ~: ::~/:::~:~: :~.: ;~: :/0 :;;:;:; ~::~ :~ :::~:: 0 ::~ ' ~:~?'=*? ~':~'~ ,O :;: :'::~0;7~ * Infla~d from ~ ~-05 ~s~ at 2.8% per year (Enginee~ng News Re.rd ~ctor) PROJECT: Willake~ie Pump Station Expansion DESCRIPTION: Add four, 14-mgd pumps to increase ~paci~ from 80 to 135 mgd. JUSTIFICATION: Additional pumping ~paci~ is required to incr~se to~l influent pumping ~paci~ to 277 mgd. PROJECT DRNER: Systematic eliminaaon of sanita~ sewer ove~ows by the year 2010. PROJECT TRIGGER: Colle~ion system computer model estimates the cu~ent wet weather peak flow to plant to be 264 mgd. Overall existing peak flow ~paci~ is 175 mgd so thero is already a ~paci~ deficit. ~PE OF PROJECT: 100% Capaci~ ESTIMATED PROJECT COST $6,000,000 (2004 Dollam): INF~TED PROJECT COST $6,340,7~ {2006 Dollam): PHASING: Budgeted for ~ 2005/06 Page 58 GLENWOOD PUMP STATION UPGRADI~ Facility Process Component Collection System Pump Stations $543,187 Total Cost "ii~RIOR: b ::?, ~ ~:'. '~; !~'. : i~ ~ i~,: .i~ i;,iii:.i.i::: ~: ~ ; ~ !;: Design & Engineering 81,478 81,478 Construction 461,709 481~709 TOTAL iC i; ~!' ~, ~ i;':.:i0 ..... ~; '<'~' ......... FUNDING SOURCE. Capi~l Rese~e 336,776 336,~6 Impmvemen~ent SDC Rese~e 206~411 206~411 ~ Inflated ~om ~ ~5 ~s~ at 2.8% per year (Engineering News Re.rd ~ctor) PROJECT: Glenwood Pump Station Upg~de DESCRIPTION: Expand pump station capaci~. JUSTIFICATION: Additional pumping ~paci~ is required to increase total influent pumping capaci~ to 277 mgd. PROJECT DR~ER: Systematic elimination of sani~ sewer ove~ows by the year 2010. PROJECT TRIGGER: Colle~ion system ~mputer model estimates the cU~ent wet weather peak flow to plant to be 2~ mgd. Ove~ll existing peak flow ~paci~ is 175 mgd ~ there is already a capac~ ~PE OF PROJECT: 100% Capaci~ ESTIMATED PROJECT COST $500,000 (20~ Dollar): INF~TED PROJECT COST $~3,187 (2007 Dollar): PHASING: Budgeted for ~ 2007108 Page 59 INFLUENT PUMPING IMPROVEMENTS Facility Process Component Preliminary Treatment $1,796,533 ~ Total Cost :.::: PRIORi~'~ Design & Engineering 179,653 179,653 Construction 1,616,880 1 ~616~880 TOTAL '~: ~',: :;~. '~.:~=.i ;i 0 FUNDING SOURCE ~apital Reserve 1,113,850 1,113,850 Improvementment SDC Reserve 682~683 682,683 TOTAL !;. ~?:;:.;,; ;i:O * Inflated from FY 04-05 costs at 2.8% per year (Engineenng News Record factor) PROJECT: Influent Pumping Improvements DESCRIPTION: Add 5th pump to increase capacity from 84 to 99 mgd. JUSTIFICATION: New pump is required to increase total influent pumping capacity to 277 mgd. PROJECT DRIVER: Systematic elimination of sanitary sewer overflows by the year 2010. PROJECT TRIGGER: Collection system computer model estimates the current wet weather peak flow to plant to be 264 mgd. Overall existing peak flow capacity is 175 mgd so'there is already a capacity deficit. TYPE OF PROJECT: 100% Capacity ESTIMATED PROJECT COST $1,700,000 (2004 Dollars): INFLATED PROJECT COST $1,796,533 ¢2005 Dollars.): PHASING: Budgeted for FY 2005/06 Page 60 DRY WEATHER HEADWORKR Facility Process Component Preliminary Treatment $13,905,587 Total Cost Design & Engineering 1,390,559 1,390,559 ~ns~ion 12,515,028 12,515~028 TOTAL ~; ~t*'~ ~ ;:::,:;;~ :~, / ~:~0 ~.~?: ~ 3;905;587 : ..~;3;905;587 FUNDING SOURCE ~pi~l Rese~e 8,621,4~ 8,621,4~ lmpmvemen~ent SDC R~ewe 5,2~,123 5,2~,123 * Inflated from ~ 04-05 ~s~ at 2.8% per year (Engineering News Re.rd ~or) PROJECT: D~ Weather Headwo~s DESCRIPTION: Expand headwo~s so that all of the 2025 wet weather peak flow receives prelimina~ treatment. JUSTIFICATION: New d~ weather headwo~s that will be used in ~njunction with the existing headwo~s (which will then be used for peak flow events) to provide prelimina~ treatment for a total peak wet weather flow of 277 mgd. PROJECT DRIVER: Increases in peak wet weather flows resulting from the elimination of sanita~ sewer ove~ows. PROJECT TR~GER: Peak wet weather flows in excess of 210 mgd. ~PE OF PROJECT: 100% Capaci~ ESTIMATED PROJECT COST $12,800,000 (2004 Dollam): INF~TED PROJECT COST $13,905,587 (2007 Dollam): PHASING: Budgeted for FY 2007/08 Page 61 PRIMARY CLARIFIER ENHANCEMENTS Facility Process Component Primary Treatment $1,200,000 Total Cost Costs .EXPEND+: Design & Engineering 120,000 120,000 Construction 1,080,000 1,080~00(~ .... TOTAL ' "" ~ '~ FUNDING SOURCE ~apital Reserve 420,000 420,00C Improvementment SDC Reserve 780,000 780,00C TOTAL /,~': :,'.=..'. 0 :: ': 1'~200;000:~ ;:.:"~'~::~::;~i :O ~i i~.;~...:.:'. ,:.. 0 .~.~,~.::. '~ .':'0 !:-;~':.::?',%..-~.:.0 . ~:11'~,200,00C PROJECT: Primary Clarifier Enhancements DESCRIPTION: Baffling of primary clarifiers and remove hydraulic restrictions. JUSTIFICATION: Enhancing the existing clarifiers will increase primary treatment capacity and will maximize the facilities investment in existing infrastructure. PROJECT DRIVER: Increase capacity to treat base and peak flows and improve effluent quality and reliability so that a blended primary and secondary effluent can meet the current NPDES total suspended solids limits. PROJECT TRIGGER: Primary clarifier surface overflow rates exceeding 1500 gpd/sf, or total plant influent flows exceeding 86 mgd. Hydraulic restrictions removed when peak wet weather flows exceed 200 mgd. TYPE OF PROJECT: 100% Capacity ESTIMATED PROJECT COST $1,200,000 (2004 Dollars): PHASING: Budgeted for FY 2004/05 Page 62 PRIMARY SLUDGE THICKENING Facility Process Component Primary Treatment $3,910,946 Total Cost PRIOR :;~: i',: !,ii`~. ?: : ~ i ;!;:: '. ~i i :i ?:'~!'.~::! ;~ :.':i'~:~ ! :i.~: Design & Engineering 391,095 391,095 Construction 3,519,852 3~519~852 FUNDING SOURCE 3api~l Resewe 3,910~6 3~910,~6 * Inflated Eom ~ ~-05 ~s~ at 2.8% per year (Engineering Ne~ Re~ ~ctor) PROJECT: Pdma~ Sludge Thickening Outside of Cladflers DESCRIPTION: Thin pdma~ sludge pumping and piping systems to gmvi~ thickenem, ~o, 50' foot diameter g~vi~ thickeners (covered for odor control), supematant ove~ow pumping and piping, thickened sludge piping/pumping to digesters. See Odorous Air Treatment for treatment of odom. JUSTIFICATION: One of the projects that increases capaci~ of existing pfima~ cla~em from approximately 103 mgd to 165 mgd. PROJECT DRNER: All peak wet weather flows must m~ive pdma~ treatment prior to divemion and e~uent blending to meet the cu~ent NPDES pete for total suspended solids. PROJECT TRIGGER: Pdma~ claY~er surface ove~ow rotes exceeding 1800 gpd/sf: Sustained wet weather flows though the pdmades in excess of 103 mgd after ba~ing improvements are made. TYPE OF PROJECT: 100% Capacity ESTIMATED PROJECT COST $3,600,000 {2004 Dollars): INFLATED PROJECT COST $3,910,946 (2007 Dollars): PHASING: Budgeted for FY 2007~08 Page 63 DIGESTER MIXING IMPROVEMENTS Facility Process Component Secondary Treatment $2,000,000 Total Cost :,'!:= ~RIOR!ii!!~ :";: :~ ::!:= ~: i!:i!?:~!i ;i :! :! ~'i :!~ 'i:~I:':/= ii;~:: :::~: !,=~' :??.i~i;i=;-:!ii ~ :! :~:~ i'i : Design & Engineering 200,000 200,000 ~ns~on 1 ~800~ 1,800~00C FUNDING SOURCE Capi~l Rese~e 680,000 680.~ Improvemen~ent SDC Rese~e 1,320,000 1,320~C TOTAL :~:~;/,~:'.:-.:'/;:%";:~'~0'~ :?;f:~2~000~000 ,;~...:': ~¥~;.:::::.,;.0 ~:'~ ~::;~'~: ;'::?~,' ~:,0 ;.;., ;~ ~;'~'. '.0 ,.?: 2;000;000 PROJECT: Digester Mixing Improvements Design and Constmc~on DESCRIPTION: Replace existing gas mixing system with a pump mixing system. JUSTIFICATION: This pmje~ will increase the a~ive volume of the digestem, thus allowing for addiaonal solids stabil~aUon volume and ~tenUally deleing the need to ~ns~ct an addRional digester. PROJECT DR~ER: Need for improved digester mixing to increase active digester volume. PROJECT TRIGGER: Sludge residence time (SRT) and volatile solids redu~ion design cdteda. ~PE OF PROJECT: 50% Capaci~; 50% Peffo~anoe ESTIMATED PROJECT COST $2,000.000 (2004 Dollam): PHASING: Budgeted for ~ 2004/05 Page 64 THIRD GRAVITY BELT THICKENER Facility Process Component Secondary Treatment $2,570,000 Total Cost :!:';:PRIOR: :~]i ~: :. ;,i~ i;!i,i i:ii .; :;::ii; i! ;:,:;;:.:' i: .~':.: '~ 'i :~ ~;::~ i~;i~i,!~ :'~.;i :i;: ';? ::i:'.:;;:::,.?: Design & Engineering 257,000 257,000 Cons~cfion 2,313,000 2,313~0~ FUNDING SOURCE Capi~l R~e~e 8~,500 899,~0 Impmvemen~ent SDC Resewe 1,670,500 1,670~0 Inflated ~om ~ 04-05 ~sb at 2.8% ~r year (Engineering News Re.rd factor) PROJECT: Third Gmvi~ Belt Thickener DESCRIPTION: Third g~vi~ belt thickener (GBT) with associated at grade building. Assumes additional basement floor space is not required. JUSTIFICATION: Provides additional ~paci~ for WAS thickening and potentially delays ~e ~nstmction of additional digestem. PROJECT DRNER: AddEional ~paci~ to provide WAS thickening with one unit offiine at ~MW upper limit flow pmje~ions. Nitration required by the NPDES pete and increasing wastewater flows and loads generates mom WAS solids. Provide abili~ to ~nduct recupe~tive thickening so that need for additional digestion volume ~n potentially be defe~ed. PROJECT TRIGGER: Exceeding solids and hydraulic loading rate design criteria. TYPE OF PROJECT: 100% Capacity ESTIMATED PROJECT COST $2,500,000 (2004 Dollars): INFLATED PROJECT COST $2,570,000 (2005 Dollars): PHASING: Budgeted for FY 2005/06 Page 65 ODOROUS AIR TREATMENT - I Facility Process Component Odor Control Design & Engineering ' 236,440 236,440 Construction 27127,960 2,127~960 TOTAL FUNDING SOURCE Capital Reserve 1,~49,656i 1,749,656 Improvementment SDC Reserve 614,744 614,744 TOTAL * Inflated from FY 04-05 costs at 2.8% per year (Engineering News Record factor) PROJECT: Odorous Air Treatment - I DESCRIPTION: Two 14-foot diameter, 30 foot tall biotower for air collected from twq primary clarifier centerwells and launders and new sludge building addition. JUSTIFICATION: Primary clarffier weirs and launders are odor sources. The new sludge building addition is also an odor source. PROJECT DRIVER: Maintain MWMC's status as environmental stewards. Address neighborhood odor complaints and community concems regarding odors. PROJECT TRIGGER: Construction of GBT expansion provides opportunity to capture odors at the GBT and primary clar'diers. TYPE OF PROJECT: 100% Performance ESTIMATED PROJECT COST $2,300,000 (2004 Dollars): INFLATED PROJECT COST $2,364,400 {2005 Dollars): PHASING: Budgeted for FY 2005~06 Page 66 ODOROUS AIR TREATMENT II .Facility Process Component Odor Control $2,568,623 Total Cost . :;PRIOR~:: ;:':';i~, : ~, i !: , ~,.~, [ .~ ,:, . !, :!!i,::,,:, ;!.~!~, ~sign & Engineering ~ns~on 256,862 256,862 2,311,760 2,311,7~ TOTAL O' :. ~:~ -; 0 : '~:2;568;623 :::~. 2~568~623 FUNDING SOURCE Capi~l Rese~e Impmvemen~ent SDC Rese~e 1,900,781 1,900,781 667,~2 667~? TOTAL :~:.'-;~ ~::~: :~ ::;F:';' 0 ::~.: ;: :::-:: ~.~:: :0 ~ ?~::~' ,}~;::;.?~ 0 :~:~i;; 2;~568;623 ?~ 2;568;623 ated ~om ~ 0~05 ~ts at 2.8% per year (Engineering News Re~ favor) PROJECT: Odorous Air Treatment II DESCRIPTION: Two 14-foot diameter, 30 foot tall biotowem for air collected from ~o prima~ clafifier cente~ells and laundem and new gmvi~ thickener. JUSTIFICATION: Pfima~ claver weirs and laundem as well as gmvi~ thickenem are odor sources. PROJECT DRIVER: Maintain MWMC's status as environmental stewards. Address neighborhood odor ~mplaints and communi~ ~ncems regarding odom. PROJECT TRIGGER: Construction of gmvi~ thickenem. ~PE OF PROJECT: 100% PeEo~ance ESTIMATED PROJECT COST $2,300,000 {2004 Dollam): INF~TED PROJECT COST $2,568,623 (2008 Dollam): PHASING: Budgeted for ~ 2008/09 Page 67 SOUTH AERATION BASIN IMPROVEMENTS Facility Process Component Secondary Treatment $6,900,000 Total Cost Design & Engineering 690,000 690,000 Construction 6~210,000 . 6,210~000 TOTAL [~:~:.}~i?~ :' ~ i~::?~' ~:=~0 FUNDING SOURCE Capital Reserve 2,829,000 2,829,000 Improvementment SDC Reserve 4,071,000 4,071,000 TOTAL PROJECT: South Aeration Basin Improvements Design and Construction DESCRIPTION: Add step feed, anoxic selectors, and fine bubble diffusers to south aeration basin. Remove hyd~ulic restrictions in both south and north aeration basins (effluent gates). Includes future pdmary effluent flow control gates for both north and south aeration basins. JUSTIFICATION: Increase the dry weather aeration basin treatment capacity to 65 mgd with respect to ammonia (i.e., with nitrification) and increase the sustained (i.e., on a weekly basis) wet weather treatment capacity to 130 mgd. PROJECT DRIVER: NPDES permit includes ammonia limit requiring nitrification in dry weather and expansion of wet weather capacity to treat wet weather flows to meet NPDES monthly and weekly suspended solids limits. PROJECT TRIGGER: Maximum mOnth dry weather flow of 25 mgd requiring nitrification. May flows and temperatures could require the use of the south aeration basins in conjunction with the north aeration basins. Peak wet weather flows above 103 mgd require hydraulic modifications. TYPE OF PROJECT: 50% Capacity; 50% Performance ESTIMATED PROJECT COST $6,900,000 (2004 Dollars): PHASING: Budgeted for FY 2004/05 Page 68 PARALLEL PRIMARY/SECONDARY TREATMENT Facility Process Component Peak Flow Management $11,950,113 Total Cost · ~.!i:. ~RIOR!~;:: ~sign & Engineering Oons~cUon FUNDING SOURCE Oapi~l Rese~e 8,4~,~0 8,4~,580 Improvemen~ent 8DC Rese~e 3,465,533 3~465,533 TOTAL ~:~ ~: · Inflated from FY 0~05 cos~ at 2.8% per year (Engineering News Re,rd factor) PROJECT: Pa~llel Pdma~/Geconda~ Treatment DESCRIPTION: Piping, pumping, and flow split boxes to enable p~ma~ and seconda~ treatment to be opiated in Pa~llel. JUSTIFICATION: This project expands the peak wet weather treatment ~paci~ to 277 mgd through flow management techniques. PROJECT DRNER: DEQ requirement that the peak wet wea~er flow (~year, 24-hour ~in event) be treated by the ~8 WPCF and meet se~nda~ e~uent standards (dive,ed blended flow receives equivalent of pfima~ treatment). PRO~ECT TRIGGER: Elimination of sanita~ sewer ove~ows by the year 20~ 0. ~PE OF PROJECT: ~00% Oapaci~ ESTIMATED PROJECT COST $~ ~ ,000,000 [2004 Dollar): INF~TED PROJECT COST $~ 12008 Dollar): PHASING: Budgeted for ~ 2006/07 Page 69 SECONDARY CLARIFIER ENHANCEMENTS Facility Process Component Secondary Treatment $5,300,000 · Total Cost Design & Engineering 520,000 520,000 Construction 4~780~000 4~780~000 FUNDING SOURCE Capital Reserve 3,074,000 3,074,000 Improvementment SDC Reserve 2,226,000 2,226,000 TOTAL PROJECT: Secondary Clarifier Enhancements Design and Construction DESCRIPTION: Baffle, add inlet energy dissipation, change out flocculation well, construct outboard launder, and retrofit suction header for existing 8 clarifiers. JUSTIFICATION: Enhancing the existing clarh'iers will increase the secondary treatment capacity, alleviate current operational problems, and will maximize the facilities investment in existing infrastructure. PROJECT DRIVER: Increase capacity of secondary treatment for base flows and for peak flows. Improve effluent quality and performance reliability to meet the current NPDES total suspended PROJECT TRIGGER: Average secondary clarifier surface overflow rates exceeding 750 gpd/sf or wet season maximum month flows exceeding 80 mgd. TYPE OF PROJECT: 50% Capacity; 50% Performance ESTIMATED PROJECT COST $5,300,000 (2004 Dollars): PHASING: Budgeted for FY 2004/05 Page 70 NINTH AND TENTH SECONDARY CLARIFIERR Facility Process Component Secondary Treatment $6,657,739 Total Cost Design & Engineering 665,774 665,774 Construction 5,991,965 5,991,96? TOTAL ?~!::.!.~;~':~..~-~;: ::0 ~:::~'~: ~'~ ....... ' ~:: :, .:::~ ~.- :: ;~':~ 0 '~ :~:~;~i~!~ ~:~'i i;, 0 ~ 6~:65~;i~39~ ~'::~: '-' ' ~ ~: FUNDING SOURCE Capital Reserve 2,330,209 2,330,205 Improvementment SDC Reserve 4,327,530 4,327~53C TOTAL :!i~}::?:~ '?:~:0 ~;~?~!::::: '~:', ::!O ;:;~ ~i.~,::i:..::~':;:01 ;,!~'i,:6;657~i739::~?~:?~'::~::, i:~..?0 :.:,.~.~,,:' :. ':.~ ~:~,,:: 07 !:~:,::}::6i65~;:73S. * Inflated from FY 04-05 costs at 2.8% per year (Engineering News Record factor) PROJECT: Ninth and tenth secondary cladfiers DESCRIPTION: This project adds two new 130-ft concrete secondary cladfiers. JUSTIFICATION: The project provides additional secondary treatment and peak flow management capacity. PROJECT DRIVER: This project expands the wet weather base capacity (maximum month and maximum week conditions). DEQ requirement that the peak wet weather flow (5-year, 24-hour rain event) be treated by the E/S WPCF by the year 2010; need to increase the sustained secondary capacity from approximately 100 mgd to 160 mgd. PROJECT TRIGGER: Wet season flows through secondary treatment exceeding 134 mgd. TYPE OF PROJECT: 100% Capacity ESTIMATED PROJECT COST $6,300,000 ~2004 Dollars): INFLATED PROJECT COST $6,657,739 {2006 Dollars): PHASING: Budgeted for FY 2006107 Page 71 SODIUM HYPOCHLORITE CONVERSION Facility Process Component Disinfection/Ouffall $4,454,133 Total Cost :~ ~.i PRiORi D~ign & Engineering ~5,413 ~5,413 ~ns~ 4~008,720 4,~8~720 FUNDING SOURCE Oapi~l Rese~e 3,~0.~0 3,~0,600 Improvemen~ent SDC Rese~e 1,113,533 1,113,533 TOTAL ~.~:~ ~; ~:,~:?~?:? ~:?: :~O * Inflated Eom ~ 0~05 ~s~ at 2.8% per year (Engineering News Re.rd ~ctor) PROJECT: Sodium Hypochlorite Convemion DESCRIPTION: Conve~ existing chlorine gas system to sodium hypochlorite for ~e base flow. Retain the existing chlorine ~n~ct basins. Install system with ~pabil~ for high rote disinfe~ion of PE diversion assuming high dosages of chlorine into a 72-in~ pipe and small chlorine ~n~ basin. JUSTIFICATION: Liquid sodium hypochlorite and ~dium bisu~te system will replace the existing chlorine suer dioxide gas systems and increase ~e disinfecaon ~pac~ from 175 mgd to 277 mgd. PROJECT DRIVER: Operator and oommuni~ safe~ issues. PROJECT TRIGGER: Phasing with other related project. ~PE OF PROJECT: 50% Capac~; 50% Pefformanoe ESTIMATED PROJECT COST ~,100.000 (2004 Dollam): INF~TED PROJECT COST $4,4~,133 (2007 Dollam): PHASING: Budgeted for ~ 2007/08 Page 72 TERTIARY FILTRATION Facility Process Component Tertiary Filters Costs ~ EXPEND;:. Design & Engineering 1,000,000 1,000,000 Construction 10,151,643 10,151~643 TOTAL I' ....... FUNDING SOURCE Capital Reserve 0 580,000 5,887,953 6,467,953 Improvementment SDC Reserve 0 420,000 4,263,690 4~683~689 Inflated from FY 04-05 costs at 2.8% per year (Engineering News Record factor) PROJECT: Tertiary Filtration Design and Construction DESCRIPTION: Filtration: includes infrastructure/support facilities for 30 mgd of filters; install filter cells sufficient for only 10 mgd. JUSTIFICATION: An estimated 30 mgd of filters is required by 2010 to meet dry season mass limits. Facility Plan proposes phasing filters in sooner to facilitate development of Level 3 and Level 4 reuse. Provides high quality secondary effluent and potential level 4 reuse water. Also, needed to assist with meeting wet season mass load requirements dudng peak flow events (under all peak flow management alternatives). PROJECT DRIVER: Performance reliability to meet the dry weather NPDES total suspended solids limits of less than 10 mg/L, reuse development, and compliance with peak flow management. PROJECT TRIGGER: NPDES permit compliance for TSS: Dry weather maximum month flow in excess of 49 mgd. Also, initially to provide higher quality effluent so that reuse can be developed. TYPE OF PROJECT: 25% Capacity; 75% Performance ESTIMATED PROJECT COST $10,100,000 (2004 Dollars): INFLATED PROJECT COST $11,151,643 (Inflated DOllars. Multi-year): PHASING: Budgeted for design in FY 2007/08 Page 73 EFFLUENT REUSE I Facility Process Component Reuse Facilities $2,641,960 Total Cost Costs !!i:~EXpEND~; Design & Engineering 264,196 264,196 Construction 2~377~764 2,377,764 TOTAL :!,~..::?. ~,~' :0:~,.::~!::~::!..'.; ;~! :' 0: ~':::?:~ :~i?'??~?~;!~:;;~:Oi ~;ii'~i64.~1':;960 :-'i: ~:..:: :: !:~: ~:!:';:;0:, ~:'.~?i-~ .::.::~"~}??:.~: 0 :%'.2i641 ;960 FUNDING SOURCE Capital Reserve 1,955,050 1,955,050 Improvementment SDC Reserve 686,910 686,910 TOTAL I ~!~::i:i :::~ i? ! !0 i;:~?! ~:.::..?0 * Inflated from FY 04-05 costs at 2.8% per year (Engineering News Record factor) PROJECT: Effluent Reuse I DESCRIPTION: Level 4 reuse system: Reuse disinfection, pumping, pipeline, and distribution/irrigation system 2.5 mgd. JUSTIFICATION: Implements Level 4 rouse so that thermal load is removed from the Willamette River. PROJECT DRIVER: Expansion of dry weather effluent rouse programs. Current NPDES thermal load compliance. PROJECT TRIGGER: Potential exceedance of NPDES thermal load limit. Identification of dry weather water needs for potential clients. TYPE OF PROJECT: 100% Performance ESTIMATED PROJECT COST $2,500,000 {2004 Dollars): INFLATED PROJECT COST $2,641,960 (2005 Dollars): PHASING: Budgeted for FY 2006/07 Page 74 OUTFALL MIXING ZONE STUDY Facility Process Component DisinfectionlOutfall $154,200 Total Cost ,PRIOR: Design & Engineering 154,200 154,200 FUNDING SOURCE Capital Reserve 115,650 115,650 Improvementment SDC Reserve 38,550' 387550 TOTAL i: :i~;L~. PROJECT: Outfall Mixing Zone Study DESCRIPTION: Update the 1994 Mixing Zone Study to account for additional 100 mgd (approximate) bankside outfall capacity and for changes to the Willamette River morphology that may have occurred since the last study was conducted. JUSTIFICATION: PROJECT DRIVER: Current diffuser may be insufficient to accommodate peak wet weather flows. PROJECT TRIGGER: TYPE OF PROJECT: 100% Performance ESTIMATED PROJECT COST $150,000 (2004 Dollam): INFLATED PROJECT COST $154,200 (2005 Dollars): PHASING: Budgeted for FY 2005/06 Page 75 CONSTRUCTION MANAGEMENT FACILITIES Facility Process Component Support Facilities $100,000 Total Cost ~ns~on 100~0 100,~ TOTAL FUNDING SOURCE Dapi~l Rese~e 79,~ 79,000 Jmpmvemen~ent SDC Resewe 21,000 21~000 TOTAL ]:~.:?:; :~00,000 ;,?:?.~:-'~' .-.:' 0 ~.=;. 0 ~ ;:;~?;~:.~:?:.,'~0 ;' ~'?. ;~:~ ;;~ :;..;0 J:~;:~:-.':':¢~;.L::100,000 PROJECT: Construction Management Facilities DESCRIPTION: Modular space at E/S WPCF for staff to manage CIP program. JUSTIFICATION: Space needed for staff to manage the construction of the 5-Year ClP. PROJECT DRIVER: Increased construction effort relative to previous 5 years. PROJECT TRIGGER: Commence to implementing 5-year ClP. TYPE OF PROJECT: 100% Performance ESTIMATED PROJECT COST $100,000 (2004 Dollars): PHASING: Budgeted for FY 2004/05 Page 76