HomeMy WebLinkAboutItem 3: Ratification of FY11 MWMC Budget
ECC
UGENE ITY OUNCIL
AIS
GENDA TEM UMMARY
Action: Ratification of the Metropolitan Wastewater Management Commission FY11
Regional Wastewater Program Budget and Capital Improvements Program
Meeting Date: May 10, 2010 Agenda Item Number: 3
Department: Public Works Staff Contact: John Huberd
www.eugene-or.gov Contact Telephone Number: 541-682-8603
ISSUE STATEMENT
This agenda item relates to the ratification of the FY11 budget for the regional wastewater program
serving the Eugene/Springfield metro area, as established under the 1977 Intergovernmental Agreement
(IGA) between the City of Eugene, the City of Springfield, and Lane County. The regional wastewater
program is managed by the Metropolitan Wastewater Management Commission (MWMC) pursuant to
the provisions of the IGA. The regional wastewater budget provides funds for all operations,
maintenance, administration, and capital project management and implementation for the
Eugene/Springfield Water Pollution Control Facility, the Biosolids Management Facility, the Biocycle
Farm, the Reclaimed Water Facility, and regional wastewater pump stations.
BACKGROUND
The purpose of the regional wastewater program is to protect public health and safety and the
environment by providing high quality wastewater management services to the Eugene-Springfield
metropolitan area. The MWMC and regional partners are committed to providing these services in a
manner that is effective, efficient, and which meets legal requirements and customer service expectations.
Since the mid-1990s the commission and the regional wastewater program staff have worked together to
identify the following key outcomes 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; and
5.Public awareness and understanding of MWMC, the regional wastewater system, and MWMC’s
objectives for maintaining water quality and a sustainable environment.
These key outcomes, or goals, are in direct alignment with the City of Eugene Council goals.
Every year the MWMC develops a budget that covers resource needs of the operations, maintenance,
and capital improvement activities for the regional wastewater program. These activities are divided
between Eugene and Springfield, and the regional budget combines the portions of the City of Eugene
and City of Springfield budgets that are dedicated to the regional wastewater program. The commission
conducted a public hearing on the proposed draft budget for FY11 and subsequently adopted the budget
Z:\CMO\2010 Council Agendas\M100510\S1005103.doc
on April 9, 2010. The commission’s adopted budget is attached for council consideration (see
Attachment A). The budget reflects the continuing focus on design and construction of capital
improvements in the approved 2004 Facilities Plan, needed to ensure that the operation of the Regional
Wastewater Facilities meets increasing environmental regulations and that collection and treatment
capacity will be available to provide for growth in the service area. The adopted budget includes the
financial resources necessary to support the regional program. The personnel, operations and
maintenance budget decreases by slightly less than 1 percent from the FY10 budget. The capital reserves
and debt service budget increases in FY11 and is due to the recent capacity expansion of the regional
treatment plant.
During the April 9th meeting, the Commission approved an overall five percent increase in the regional
wastewater user rates to generate revenue for the proposed budget and, pursuant to the recommendations
of the MWMC financial advisor, to address needs for future Capital Improvement Program (CIP)
financing consistent with the commission’s Financial Plan policies and net revenue objectives. The
revenues generated by the user rate increase are consistent with the MWMC's approved financial plan to
maintain an unenhanced credit rating of A and adequately fund operations, administration, capital
financing, debt service, and reserves.
RELATED CITY POLICIES
This action item is related to the City Council goals of "Sustainable Development" and "Effective,
Accountable, Municipal Government."
COUNCIL OPTIONS
1. Approve motion to ratify the FY11 MWMC budget.
2. Return the FY11 MWMC Regional Wastewater Program Budget and Capital Improvements
Program to MWMC with specific requests for modification and reconsideration.
CITY MANAGER’S RECOMMENDATION
The City Manager recommends ratification of the proposed FY11 MWMC Budget and Capital
Improvements Program.
SUGGESTED MOTION
Move to ratify the FY11 MWMC Budget.
ATTACHMENTS
A.Transmittal letter and MWMC FY11 Proposed Regional Wastewater Program Budget and Capital
Improvements Program
FOR MORE INFORMATION
Staff Contact: John Huberd, Finance and Administration Manager, Wastewater Division
Telephone: 541-682-8603
Staff E-Mail: john.c.huberd@ci.eugene.or.us
Z:\CMO\2010 Council Agendas\M100510\S1005103.doc
PARTNERS IN
WASTEWATER
MANAGEMENT
www.mwmcpartners.org
MWMC
Commission
April 27, 2010
Doug Keeler
Mr. Jon Ruiz, City Manager
Springfield Citizen
City of Eugene
MWMC President
777 Pearl Street
Bill Inge
Eugene, OR 97401
Lane County Citizen
MWMC Vice President
Hilary Loud
Subject: Metropolitan Wastewater Management Commission (MWMC)
Eugene Citizen
FY 10-11 Regional Wastewater Program (RWP) Budget and
Capital Improvements Program (CIP)
Walt Meyer
Eugene Citizen
Dear Mr. Ruiz:
Jennifer Solomon
Eugene City Councilor
th
On April 9, the MWMC held a public hearing on the FY 10-11 Regional
Wastewater Program (RWP) Budget and Capital Improvements Program
Fred Simmons
Springfield City Councilor
(CIP). At this meeting, the FY 10-11 RWP Budget and CIP were approved.
The RWP Budget funds operating and capital project requirements, and
Bill Fleenor
maintains targeted contributions to reserves.
Lane County Comm.
Consistent with the Intergovernmental Agreement, the RWP Budget and CIP
Administration
need to be ratified by the governing bodies of Eugene, Springfield and Lane
County prior to final adoption by MWMC. Please forward the enclosed
Ron Bittler
budget and CIP documents to the Eugene City Council for their consideration
Environmental Services/
on May 10, 2010. If I can be of any additional assistance, please contact me
MWMC General Manager
at 744-4170.
City of Springfield
225 Fifth Street
Springfield Oregon 97477
Thank you for your consideration and assistance in this matter.
(541) 726-3694
FAX (541) 726-2309
Sincerely,
Operations
ëûÔÉÉÑØË
Peter Ruffier
Director of Wastewater Div
Ron Bittler
City of Eugene
410 River Avenue
MWMC General Manager
Eugene Oregon 97404
(541) 682-8600
FAX (541) 682-8601
T:\Budget\FY11\MWMC\COE AIS\Budget trans to Eugene 2011.doc
REGIONAL WASTEWATER PROGRAM
BUDGET
and
CAPITAL IMPROVEMENTS PROGRAM
FY 10-11
The Metropolitan Wastewater Management Commission adopted its Operating Budget and
Capital Improvements Program (CIP) for FY 10-11 April 9, 2010. The Budget and CIP were
ratified by the Springfield City Council on ________, 2010, the Lane County Board of
Commissioners on ________, 2010, and the Eugene City Council on ________, 2010. The
.
Commission gave final ratification to the budget and CIP on _______, 2010
COMMISSION MEMBERS:
Doug Keeler, President (Springfield)
Bill Inge, Vice-President (Lane County)
Fred Simmons, (Springfield)
Jennifer Solomon, (Eugene)
Walt Meyer (Eugene)
Bill Fleenor (Lane County)
Hilary Loud, (Eugene)
STAFF:
Susie Smith, MWMC Executive Officer/Springfield Public Works Director
Ron Bittler, MWMC General Manager/Springfield Environmental Services Manager
Peter Ruffier, Eugene Wastewater Division Director
Robert Duey, MWMC Finance Officer/Springfield Finance Director
METROPOLITAN WASTEWATER MANAGEMENT COMMISSION
ADOPTED FY 10-11 BUDGET AND CAPITAL IMPROVEMENTS PROGRAM
for the
REGIONAL WASTEWATER PROGRAM
TABLE OF CONTENTS
Budget Message ..................................................................................................................... 1
Regional Wastewater Program Overview .............................................................................. 3
Exhibit 1: Interagency Coordination Structure ............................................................... 9
Regional Wastewater Program Budget and Program Summary .......................................... 10
Exhibit 2: Regional Operating Budget Summary ........................................................... 10
Exhibit 3: Line Item Summary by Program Area ........................................................... 12
Exhibit 4: Budget Summary and Comparison ................................................................ 13
Regional Wastewater Program Staffing ................................................................................. 17
Exhibit 5: Regional Wastewater Program Organizational Chart .................................... 17
Exhibit 6: Regional Wastewater Program Position Summary ........................................ 18
Regional Wastewater Program Reserves ............................................................................... 20
Exhibit 7: Operating Reserves - Line Item Budget ......................................................... 21
BUDGET APPENDICES
Appendix A: Springfield Program and Budget Detail .......................................................... 24
Exhibit 8: Springfield Administration Program Budget Summary................................. 28
Exhibit 9: Springfield Administration Line Item Summary ........................................... 29
Appendix B: Eugene Program and Budget Detail ................................................................ 30
Exhibit 10: Eugene O & M Program Budget Summary ................................................. 35
Exhibit 11: Eugene Administration Line Item Summary ............................................... 36
Capital Improvements Programs ............................................................................................ 37
Exhibit 12: Capital Programs – Adopted Capital Improvements Program Projects ....... 41
Exhibit 13: Capital Programs 5-Year Plan ...................................................................... 43
Regional Wastewater Capital Programs Budget .................................................................... 46
Metropolitan Wastewater Management Commission Budget Message
BUDGET MESSAGE
To the Metropolitan Wastewater Management Commission:
I am pleased to present the Metropolitan Wastewater Management Commission’s (MWMC)
budget for fiscal year (FY) 2010-11. This budget funds operations, administration, and capital
projects planned for the Regional Wastewater Program (RWP). The MWMC administration and
Capital Improvements Program (CIP) components of the budget are reflected in the City of
Springfield’s RWP budget. The operations, maintenance, equipment replacement, and major
rehabilitation components are reflected in the City of Eugene’s RWP budget. The Cities’
Industrial Pretreatment Programs, managed locally in compliance with the MWMC Model
Ordinance, also are included in the RWP budget.
This year’s budget reflects a continued focus on design and construction of capital improvements
planned to ensure that operation of the Regional Wastewater Facilities meets environmental
regulations, and that adequate capacity will be provided to meet the needs of a growing service
area. The FY 10-11 capital budget and FY 10-11 – FY 14-15 capital improvements work plan,
which are included in this budget document, are derived from the 2004 MWMC Facilities Plan.
The budgeted amount for FY 10-11 Facilities Plan capital improvement projects is $32,364,768;
$28,032,993 is carryover from unfinished projects budgeted in FY 09-10, and $4,331,775 is new
funding programmed in FY 10-11.The FY 10-11 capital budget also includes Major
Rehabilitation, Equipment Replacement and Major Capital Outlay capital projects, budgeted at
$105,579, $50,000 and $0 respectively.The total capital budget for FY 10-11 is approximately
$32,520,347. Approximately $11 million of the total capital budget will not be spent in FY 10-
11, but is included to enable contracts for construction that will occur in FY 10-11. Unspent
funds will be carried forward to the FY 11-12 budget as appropriate. In order to fund the actual
cash flow requirements of the FY 10-11 CIP, the Commission will use State Revolving Fund
(SRF) loans as well as strategic draw downs of capital reserves.
The FY 10-11 RWP Operating Budget for Personnel Services, Materials and Services and
Capital Outlay expense is $15,158,939. Consistent with the Commission’s Financial Plan and
policies, the FY 10-11 budget maintains and uses several reserves, which are fully described in
this budget document. Finally, the FY 10-11 budget includes debt service payments totaling
$8,441,938 as scheduled for repayment of $47.3 million of revenue bonds issued in November
2006, and an additional $52.7 million in borrowing in FY 08-09 to fund the Facilities Plan
capital improvements.
Revenue sources necessary to fund Operations, Capital programs, debt service requirements and
reserves include user charges, system development charges (SDCs), interest earnings and a small
amount of miscellaneous revenues. For FY 10-11, user fee revenues (including septage service)
are projected at $26,020,795. This level of revenue is projected based on a 5% increase in
regional wastewater user fees, as recommended by the MWMC financial advisor in order to meet
the Commission’s Financial Plan policies and net revenue objectives. Projected SDC revenues
will be reduced about 11% over the FY 09-10 budgeted SDC revenue to reflect the continued
downturn in development. Revenues from SDCs are projected at approximately $589,000.
In summary, the projected FY 10-11 budget funds operations and administration sufficiently to
maintain existing levels of service, and to meet the environmental performance and other legal
Page 1 DRAFT FY 10-11 BUDGET AND CIP
Metropolitan Wastewater Management Commission Budget Message
obligations of the Commission. It funds Capital Programs at a level necessary to implement the
2004 Facilities Plan objectives for compliance with the National Pollutant Discharge Elimination
System (NPDES) permit issued to MWMC and the two Cities. Finally, this budget implements
the Commission’s adopted Financial Plan policies regarding reserves, asset management, and
capital financing.
REGIONAL WASTEWATER PROGRAM
RESOURCE AND EXPENDITURE SUMMARY
BUDGETAMENDEDPROPOSED
2009-10 2009-102010-11
RESOURCES
User Fees$24,666,551$24,666,551$26,020,795
Beginning Cash83,981,15697,173,65864,951,220
Internal Transfers7,413,7437,413,74310,840,083
System Development Charge663,750663,750589,281
Interest2,420,0002,420,000662,051
Revenue Bond/SRF Proceeds27,800,00027,279,70010,306,739***
Miscellaneous1,721,5001,721,5001,638,000
$148,666,700$161,338,902$115,008,169
EXPENDITURES
Reserves$51,530,021$50,603,561$47,197,101
Operations11,368,84011,430,84011,612,107
Internal Transfers7,413,7437,413,74310,839,844*
CIP65,434,19278,851,12432,970,347**
Bond Sale/Arbitrage Expense654,939654,939400,000
Debt Service8,389,9338,509,6638,441,938
Administration3,875,0323,875,0323,546,832
$148,666,700$161,338,902$115,008,169
* Includes three equipment replacement contributions totaling $796,000, a Capital Reserve contribution of
$10,043,844.
** 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.
Therefore, although the budgeted amount in the capital budget for FY 10-11 is $32,970,347, which includes
$450,000 in sponsorship options, the capital project spending for FY 10-11 is only expected to total about
$18,362,000.
*** Because all capital projects for which contracts will be awarded in FY 10-11 must be fully budgeted in FY 10-
11, the revenue requirements, and in this case, any necessary borrowing, must also be shown in the budget
year.
Respectfully submitted,
Susie Smith,
MWMC Executive Officer
Page 2 DRAFT FY 10-11 BUDGET AND CIP
Metropolitan Wastewater Management Commission Overview
REGIONAL WASTEWATER PROGRAM
OVERVIEW
The Metropolitan Wastewater Management Commission
The 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 33 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-1990s, the
Commission and RWP staff have worked together to identify key outcome areas within which to
focus annual work plan and budget priorities.The FY 10-11 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 MWMC’s objectives for maintaining water quality and a sustainable
environment.
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
Page 3 DRAFT FY 10-11 BUDGET AND CIP
Metropolitan Wastewater Management Commission Overview
framework for the development of the FY 10-11 RWP Operating Budget, Capital Improvements
Program and associated work plans.
Outcome 1:
Achieve and maintain high environmental standards.
Indicators:Performance:
FY08-09FY 09-10 FY 10-11
ActualEstimated Actual Target
100 %; 10.9 100 %; 12.0 100 %; 13.0
Amount of wastewater treated to
billion gallons billion gallons billion gallons
water quality standards
Compliance with environmental
100%100%100%
performance requirements of all
compliance compliance compliance
permits
<50% EPA <50% EPA <50% EPA
MWMC target for high quality
40CFR Part 40CFR Part 40CFR Part
biosolids
503.13 -Table 3 503.13 -Table 3 503.13
Pollutant Pollutant -Table 3
Concentrations:Concentrations:Pollutant
Policy Met Policy Met Concentrations:
Policy Met
Amount of reclaimed water
40 million 83 million 80 million
beneficially reused (million
gallonsgallonsgallons
gallons)
100% of 100% of100% of
Performance targets under the
numeric EMS numeric EMS numeric EMS
Environmental Management
targets met or targets met or targets met or on
System are achieved
on schedule on schedule schedule
Outcome 2:
Achieve and maintain fiscal management that is effective and efficient.
Indicators:Performance:
FY08-09FY 09-10 FY 10-11
ActualEstimated Actual Target
Policies Met Policies Met Policies Met
Annual Budget and Rates meet
MWMC Financial Plan Policies
Clean Audit Clean Audit Clean Audit
Annual audited financial
statements
AAA-A
Uninsured Bond Rating
yesyesyes
Reserves Funded at Target Levels
3.10>1.25>1.25
Net Revenue to Debt Service
coverage ratio
Page 4 DRAFT FY 10-11 BUDGET AND CIP
Metropolitan Wastewater Management Commission Overview
Outcome 3:
Achieve and maintain a successful intergovernmental partnership.
Indicators:Performance:
FY08-09FY 09-10 FY 10-11
ActualEstimated Actual Target
Industrial Pretreatment Program—
100%100%100%
Implementation in compliance
with State/Federal requirements;
any required corrections
completed
Implemented WWFMP Plan Establish
Wet Weather Flow Management
MWMC Complete framework for
Plan (WWFMP) implemented
FY 08-09WWFMP Plan
(MWMC portion – treatment plant
WWFMP2010
upgrades) and updated in a timely
elements;
manner
planning work
for WWFMP
update
100% of
MWMC Facilities Plan projects
100% of
projects within
consistent with CIP budget and
___projects within
budget and on
schedule
budget
schedule
Outcome 4:
Maximize reliability and useful life of regional assets and infrastructure.
Indicators:Performance:
FY08-09FY 09-10 FY 10-11
ActualEstimated Actual Target
Preventive maintenance
96%95%90%
completed on time (best practices
benchmark is 90%)
Preventative maintenance to
4:14:15:1
corrective maintenance ratio
(benchmark 4:1-6:1)
Emergency maintenance required
0.4%1.0%<2% of labor
(best practices benchmark is <2%
hours
of labor hours)
Page 5 DRAFT FY 10-11 BUDGET AND CIP
Metropolitan Wastewater Management Commission Overview
Outcome 5:
Achieve and maintain public awareness and understanding of MWMC, the
regional wastewater system, and MWMC’s objectives for maintaining water quality and a
sustainable environment.
Indicators:Performance:
FY08-09FY 09-10 FY 10-11
ActualEstimated Actual Target
ProducedProduced Produce
MWMC Annual Report
---
Redesign existing MWMC
--- Complete
Website
Interpretive Signs at Wastewater
------Complete
Pollution Control Facility
Facilities Plan Milestone Open
------Complete
House
Establish framework for Pollution
------Complete
Prevention Plans
Page 6 DRAFT FY 10-11 BUDGET AND CIP
Metropolitan Wastewater Management Commission Overview
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
services for wastewater treatment; management of equipment replacement and infrastructure
rehabilitation; biosolids treatment and recycling; industrial source control (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 76.11
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 provides local implementation of the Industrial
Pretreatment Program, as well as billing coordination and customer service. These services are
provided under contract with MWMC through the regional funding of 15.6 FTE of Public Works
Department staff and .85 FTE of Finance Department staff, as reflected in the adopted FY 10-11
budget.
Lane County
Lane County supports the RWP through representation on MWMC, and by maintaining the CSD
when in use. Two MWMC members represent Lane County--one citizen and one County
Commissioner. The Board of County Commissioners oversees the CSD, including
administration of local General Obligation (GO) 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 GO bonds. The CSD adopts an
Page 7 DRAFT FY 10-11 BUDGET AND CIP
Metropolitan Wastewater Management Commission Overview
annual budget for CSD funds, which is separate from the MWMC budget. The GO bond debt,
which was retired in August, 2002, was repaid by CSD through an annual property tax
assessment for Eugene and Springfield properties. 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 are no longer being assessed.
Interagency Coordination
The effectiveness of MWMC and the RWP depends on extensive 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 consistent
implementation of the Model Industrial Pretreatment Ordinance. Additionally, interagency
project teams provide input on and coordination of ongoing MWMC administration issues and
ad hoc project needs.
Exhibit 1 on the following page reflects the interagency coordination structure supporting the
RWP. 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 Programs
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.
Page 8 DRAFT FY 10-11 BUDGET AND CIP
Metropolitan Wastewater Management Commission Overview
EXHIBIT 1
Page 9 DRAFT FY 10-11 BUDGET AND CIP
Metropolitan Wastewater Management Commission Budget and Program Summary
REGIONAL WASTEWATER PROGRAM
FY 10-11 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 3 on page 12. Finally, Exhibit 4 on page
13 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 09-10” column in all
budget tables represents the updated FY 09-10 RWP budget as of February 16, 2010, which
reconciled actual beginning balances at July 1, 2009, and approved budget transfers and
supplemental requests.
EXHIBIT 2
REGIONAL OPERATING BUDGET SUMMARY:
INCLUDING RESERVE CONTRIBUTIONS
ADOPTED AMENDED
(1)
BUDGETBUDGETPROPOSEDCHANGE
INCR/(DECR)
FY 09-10FY 09-10FY 10-11
FTE95.8995.8992.56(3.33)-3%
Personnel Services (2)
$8,660,632$8,660,632$8,609,080($51,552)-1%
(2)
Materials & Services
6,553,7806,615,7806,549,859(3,921)0%
Capital Outlay (2,3)
29,46029,4600(29,460) NA
(4)
Equip Replacement Contr
794,700794,700796,0001,3000.2%
(5)
Capital Reserve Contr
6,619,0436,619,04310,043,8443,424,80152%
(6)
Working Capital Reserve
900,000900,000900,00000%
Rate Stability Reserve Contr (7)
4,669,0714,908,1812,000,000(2,669,071)-57%
Operating Reserve (8)
1,542,2831,542,2831,585,13642,8533%
(9)
Debt Service
2,880,9572,880,9575,891,9383,010,981105%
(10)
Rate Stabilization Reserve Contr
0000 NA
(11)
SRF Loan Reserve
200,000727,0000(200,000)NA
(12)
Revenue Bond Reserve
2,000,00000(2,000,000)NA
Budget Summary$34,849,926$33,678,036$36,375,857$1,525,9314%
Notes:
1.The Change column and Percent Change column compare the adopted FY 10-11 budget with the originally
Adopted FY 09-10 Budget column.
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. See table on
page 22 for year-end balance.
Page 10 DRAFT FY 10-11 BUDGET AND CIP
Metropolitan Wastewater Management Commission Budget and Program Summary
5.The Capital Reserve Contribution is a budgeted transfer of operating revenues to “sinking funds”
(reserves). Capital is passed through the Springfield Administration Budget. See table on page 23 for year-
end balance.
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.
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. See Exhibit 7 on page 21 for year-end
balance.
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. This targeted level of funding provides for
contingency funds in the event unanticipated expenses or revenue shortfalls occur during the budget year.
9.The Debt Service line item is the sum of annual interest and principal payments on the Revenue Bonds and
SRF loans made from the Operating Budget (derived from user rates). The total amount of debt service
budgeted in FY 10-11 is $5,891,938, the balance of which is budgeted from SDCs.
10.The Rate Stabilization Reserve was established as a result of the 2006 MWMC Revenue Bond Declaration
and Covenants. It holds funds that are available if needed, to ensure debt service payments can be made.
11.The SRF loan reserve is being budgeted at 10% of the anticipated loan proceeds.
12.The Revenue Bond Reserves are established to cover the 2006 bond ($4 million), the 2008 bond issue ($4.1
million), with an additional contribution for the anticipated 2010 bond issue ($2.0 million).
Page 11 DRAFT FY 10-11 BUDGET AND CIP
Metropolitan Wastewater Management Commission Budget and Program Summary
EXHIBIT 3
REGIONAL WASTEWATER PROGRAM OPERATING BUDGET
LINE ITEM SUMMARY BY PROGRAM AREA
ADOPTED AMENDED PROPOSED
ACTUALBUDGETBUDGETBUDGETCHANGE
SPRINGFIELD
FY 08-09FY 09-10FY 09-10FY 10-11INCR/(DECR)
MWMC ADMINISTRATION
Personnel Services$1,385,849$1,477,713$1,477,713$1,246,610($231,103)-16%
Materials & Services1,507,3281,947,8231,947,8231,854,788(93,035)-5%
Capital Outla1,0070000 NA
y
TOTAL$2,894,184$3,425,536$3,425,536$3,101,398($324,138)-9%
INDUSTRIAL PRETREATMENT
Personnel Services$224,582$260,527$260,527$266,300$5,7732%
Materials & Services80,930101,797101,79791,963(9,834)-10%
Capital Outla10,0500000 NA
y
TOTAL$315,562$362,324$362,324$358,263($4,061)-1%
ACCOUNTING
Personnel Services$73,007$73,448$73,448$74,045$5971%
Materials & Services11,17813,72413,72413,126(598)-4%
00000 NA
Capital Outla
y
TOTAL$84,185$87,172$87,172$87,171($1)0%
TOTAL SPRINGFIELD
Personnel Services$1,683,438$1,811,688$1,811,688$1,586,955($224,733)-12%
Materials & Services1,599,4362,063,3442,063,3441,959,877(103,467)-5%
Capital Outla11,0570000 NA
y
TOTAL$3,293,931$3,875,032$3,875,032$3,546,832($328,200)-8.47%
EUGENE
ADMINISTRATIVE SERVICES
Personnel Services$1,338,673$1,446,702$1,446,702$1,518,69971,9975%
Materials & Services476,336618,815640,815703,40884,59314%
Capital Outla00000 NA
y
TOTAL$1,815,009$2,065,517$2,087,517$2,222,107$156,5908%
BIOSOLIDS MANAGEMENT
Personnel Services$937,301$1,080,787$1,080,787$1,101,132$20,3452%
Materials & Services800,0461,136,3491,136,3491,033,776(102,573)-9%
Capital Outla00000 NA
y
TOTAL$1,737,347$2,217,136$2,217,136$2,134,908($82,228)-4%
INDUSTRIAL SOURCE CONTROL
Personnel Services$335,063$486,825$486,825$487,895$1,0700%
Materials & Services71,732127,899127,899123,395(4,504)-4%
00000 NA
Capital Outla
y
TOTAL$406,795$614,724$614,724$611,290($3,434)-1%
TREATMENT PLANT
Personnel Services$3,377,444$3,634,659$3,634,659$3,662,383$27,7241%
Materials & Services1,831,6982,286,1792,326,1792,396,385110,2065%
Capital Outla57,00029,46029,4600(29,460) NA
y
TOTAL$5,266,142$5,950,298$5,990,298$6,058,768$108,4702%
REGIONAL PUMP STATIONS
Personnel Services$77,994$84,109$84,109$101,881$17,77221%
Materials & Services161,295258,277258,277265,3527,0753%
0000 NA
Capital Outla
y
TOTAL$239,289$342,386$342,386$367,233$24,8477%
SEASONAL INDUSTRIAL WASTE FACILITY
Personnel Services$103,860$115,862$115,862$150,135$34,27330%
Materials & Services44,21462,91762,91767,666$4,7498%
0000$0 NA
Capital Outla
y
TOTAL$148,074$178,779$178,779$217,801$39,02222%
TOTAL EUGENE
Personnel Services$6,170,334$6,848,944$6,848,944$7,022,125$173,1813%
Materials & Services4,111,3404,490,4364,552,4364,589,98299,5462%
Capital Outla57,00029,46029,4600(29,460) NA
y
TOTAL$10,338,673$11,368,840$11,430,840$11,612,107$243,2672%
TOTAL REGIONAL BUDGET$15,243,872$15,158,939($84,933)
Page 12 DRAFT FY 10-11 BUDGET AND CIP
Metropolitan Wastewater Management Commission Budget and Program Summary
EXHIBIT 4
REINL WTEWTER PRRM
GOAASAOGA
BUDGET SUMMARY AND COMPARISON
ADOPTED AMENDED PROPOSED
BUDGETBUDGETBUDGETCHANGE *
FTEFY 09-10FY 09-10FTEFY 10-11INC(DECR)
OPERATING BUDGET
Administration19.40$3,863,532$3,863,53216.45$3,535,332($328,200)
Operations76.4911,368,84011,430,84076.1111,612,107243,267
Capital Contribution6,619,0436,619,04310,043,8443,424,801
Equip Repl - Contribution794,700794,700796,0001,300
Operating & Revenue Bond Reserves8,003,1339,350,4646,485,137(1,517,997)
Debt Service2,880,9572,880,9575,891,9383,010,981
Total Operating Budget95.89$33,530,205$34,939,53692.56$38,364,358$4,834,153
Funding:
Beginning Balance$6,894,154$8,303,485$10,584,063$3,689,908
User Fees24,666,55124,666,55126,020,7951,354,245
Other1,969,5001,969,5001,759,500(210,000)
Total Operating Budget Funding
$33,530,205$34,939,536$38,364,358$4,834,153
CAPITAL PROGRAM BUDGET
MWMC 2010 Facility Plan Update00221,000 NA
Biosolids - Line Lagoons II2,397,8433,122,1100 NA
WWFMP Update320,488386,926206,926(113,562)
Facility Plan Engineering Services60,77593,18973,96413,189
Clarifier Improvements425,996674,339494,33968,343
Odorous Air Treatment I6,084,1029,299,2001,732,200(4,351,902)
Odorous Air Treatment II1,404,0001,704,0001,104,000(300,000)
Aeration Basin Improvements924,7601,983,2730 NA
Effluent Reuse I3,023,0003,315,4962,820,496(202,504)
Influent PS/Willakenzie PS/Headworks11,628,33515,885,286127,286(11,501,049)
Biocycle Farm - Poplar Plantation III86,440121,9980 NA
Primary Sludge Thickening4,202,2704,447,9842,447,984(1,754,286)
Parallel Primary/Secondary Treatment11,031,28812,099,8583,000,000(8,031,288)
Sodium Hypochlorite Conversion4,444,1275,792,5863,390,000(1,054,127)
Tertiary Filtration I13,727,81413,894,5737,694,573(6,033,241)
Master Landscape Plan3,54448,5270 NA
Effluent Reuse II5,152,0005,152,0004,952,000(200,000)
Line Biosolids Lagoons II100,000100,0003,150,0003,050,000
Digestion Capacity Increase00500,000 NA
Waste Activated Sludge Thickening00300,000 NA
Biosolids Force Main Rehab00150,000 NA
EUGENE
Equipment Replacement Purchases258,710817,624105,579(153,131)
Major Rehab158,7001,228,18050,000(108,700)
Major Capital Outla2,372,531 NA
y
Total Capital Projects$65,434,192$82,539,680$32,520,347($32,913,845)
Funding:
Equipment Replacement258,710817,624105,579(153,131)
Capital Bond Fund65,016,78278,121,34532,364,768(32,652,014)
Capital Reserve158,7003,600,71150,000(108,700)
Total Capital Projects Funding$65,434,192$82,539,680$32,520,347($32,913,845)
Notes
: * The Change (Inc/Decr) column compares the adopted FY 10-11 budget to the originally adopted FY 09-10 budget column.
Page 13 DRAFT FY 10-11 BUDGET AND CIP
Metropolitan Wastewater Management Commission Budget and Program Summary
OPERATING BUDGET AND RATE HISTORY
The graphs on page 16 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 and the Five-Year Capital Programs comparison graph on page 43.
As shown on the following graph, regional sewer user charges remained highly stable from 1992
through 2004. During the late 1990s, considerable efforts were made by MWMC to absorb
increased costs due to inflation and service level increases through improvements in
organizational efficiency and effectiveness. However, as the Regional Wastewater Facilities
approached the end of their original design lives, and increased regulatory requirements
emerged, MWMC completed a comprehensive update to its Facilities Plan in 2004. This Plan
demonstrated the need for a significant capital investment in new and expanded facilities to meet
environmental performance requirements and capacity to serve the community through 2025.
Although a portion of these capital improvements can be funded through system development
charges (SDCs), much of the funding for approximately $196 million (in 2006 dollars) in capital
improvements over the twenty-year period will come from user charges. Since 2004, this has
become the major driver of MWMC’s need to increase sewer user rates on an annual basis.
In FY 08-09, there was an 11% user rate increase over FY 07-08 rates applied uniformly across
all user classes. This rate increase provided adequate revenue to meet current bond covenants
and meet requirements to issue $50.7 million in bonds in FY 08-09.
In October of 2008, the Commission adopted an interim user rate increase of 7% due to the
closure of Hynix Semiconductor. This increase was necessary to issue new revenue bonds and
maintain bond covenants for existing bonds. The typical residential monthly wastewater bill
(based on 5,000 gallons of usage) increased an additional $1.10 per month and went into effect
on December 1, 2008.
The FY 09-10 RWP operating budget is based on an 18% user rate increase over FY 08-09 rates
applied uniformly across all user classes. This rate provides for Operations, Administration,
Capital programs, reserves and debt service to be funded at sufficient levels to meet FY 09-10
requirements.It is intended to meet capital and operating requirements, the Commission’s
Financial Plan policies, and covenants associated with MWMC’s 2006 and 2008 revenue bonds
as well as provide adequate debt service coverage ratios for an additional $20 million bond sale
in FY 09-10.
In FY 09-10, there was an 18% user rate increase over FY 08-09 rates and was applied uniformly
across all user classes. The increase was driven by the need to finance the capital improvement
program and establish rates to borrow an additional $20M in revenue bonds.
In FY 10-11, the operating budget is based on a 5% user rate increase over the FY 09-10 rates.
This rate provides for Operations, Administration, Capital programs, reserves and debt service to
be funded at sufficient levels to meet FY 10-11 requirements.It is intended to meet capital and
Page 14 DRAFT FY 10-11 BUDGET AND CIP
Metropolitan Wastewater Management Commission Budget and Program Summary
operating requirements, the Commission’s Financial Plan policies, and covenants associated with
MWMC’s 2006 and 2008 revenue bonds.
The figure below compares the regional component of average monthly residential sewer rates.
ÆÐ㪠±Æê?à ±Â ªÃ? ?YÂ_?Æ ?3++,2433
2/È44
24È44
3/È44
34È44
/È44
4È44
3++,3+++24442443244224412440244/244.244-244,244+24342433
¦ ?
Page 15 DRAFT FY 10-11 BUDGET AND CIP
Metropolitan Wastewater Management Commission Budget and Program Summary
5-YEAR REGIONAL
OPERATING BUDGET COMPARISON
$16,000,000
$15,243,872
$15,158,939
$14,540,521
$13,773,806
$14,000,000
$13,040,251
$12,000,000
$10,000,000
$8,000,000
$6,000,000
$4,000,000
$2,000,000
$0
FY 06-07FY 07-08FY 08-09FY 09-10FY 10-11
Regional Wastewater Capital Improvement Programs
5-Year Comparison
$120,000,000
$96,902,414
$100,000,000
$76,226,346
$80,000,000
$65,434,192
$60,000,000
$51,148,276
$40,000,000
$32,520,347
$20,000,000
$-
FY 06-07FY 07-08FY 08-09FY 09-10FY 10-11
Page 16 DRAFT FY 10-11 BUDGET AND CIP
Metropolitan Wastewater Management Commission Staffing
EXHIBIT 5
Notes:
FTE figures represent portions of Eugene and Springfield staff funded by regional wastewater funds.
*
** The chart represents groups of staff dedicated to program areas rather than specific positions.
Page 17 DRAFT FY 10-11 BUDGET AND CIP
Metropolitan Wastewater Management Commission Staffing
EXHIBIT 6
REINL WTEWTER PRRM
GOAASAOGA
PITINUMMRY
OSOSA
ADOPTEDADOPTEDPROPOSED
CLASSIFICATIONFY 08-09FY 09-10FY 10-11CHANGE
SPRINGFIELD ENVIRONMENTAL SERVICES & FINANCE
ucorsrecto....
PbliWkDir005005005000
anage....
ESD/MWMCMr075075075000
sst. anage....
ESD/MWMCAMr090070070000
nvroervces upervsorewer ranage....
EiSiSi/S&Di050050050000
nvroervces upervsorretreat outon rev....
EiSiSi/P&PlliP095095095000
upervsng vngneer....
SiiCiilEi200200200000
vngneeresgnonstructon oornato...-.
CiilEi/Di&CiCdir500500300200
Engineering Assistant2.452.452.05-0.40
Public Information & Education Specialist0.650.650.650.00
0.800.800.800.00
Secretar
y
Clerk II0.800.800.25-0.55
Accountant0.800.800.800.00
Accounting Manager0.100.000.000.00
Accounting Director0.000.050.050.00
Assistant Project Manager0.900.900.900.00
Senior Environmental Technician0.901.001.000.00
Environmental Services Technician I0.500.000.000.00
Environmental Services Technician II1.001.001.000.00
Construction Inspector II2.001.001.000.00
TOTAL SPRINGFIELD21.0519.4016.45-2.95
Note: Springfield’s Industrial Pretreatment Program staffing of 3.00 FTE is incorporated into the position summary
because the Industrial Pretreatment Programs are funded through the RWP.
Page 18 DRAFT FY 10-11 BUDGET AND CIP
Metropolitan Wastewater Management Commission Staffing
EXHIBIT 6 (Continued)
REGIONAL WASTEWATER PROGRAM
POSITION SUMMARY
ADOPTEDADOPTEDPROPOSED
CLASSIFICATIONFY 08-09FY 09-10FY 10-11CHANGE
EUGENE WASTEWATER DIVISION & OTHER PW
Division Directo0.800.750.750.00
r
Operations Manager0.820.930.930.00
Finance and Administration Manage0.890.890.890.00
r
Pretreatment/Laboratory/Sampling Superviso0.820.820.820.00
r
Operations Superviso1.001.001.000.00
r
Residuals Supervisor1.001.001.000.00
Electrical Maintenance Supervisor0.891.001.000.00
Equipment Maintenance Superviso1.000.970.970.00
r
Facilities Supervisor1.000.910.910.00
Parts and Supply Supervisor/Buyer0.890.890.890.00
Environmental Data Analyst0.650.650.650.00
Health and Safety Superviso0.890.890.890.00
r
Technical Services Analyst0.890.890.890.00
Project Specialis0.930.930.930.00
t
PW Financial Services Manage0.200.200.200.00
r
PW Maintenance Superviso0.050.050.00-0.05
r
Applications System Analyst2.672.671.78-0.89
Applications Support Technicia0.501.000.95-0.05
n
Pump Station Tech Specialist 20.350.570.570.00
Wastewater Technician (Operator)15.0015.0015.000.00
Wastewater Technician (Residuals)5.005.005.000.00
Wastewater Technician (Pretreatment)3.143.143.140.00
Wastewater Technician (Laboratory)4.734.734.30-0.43
Wastewater Technician (Sampling)1.891.891.890.00
Wastewater Technician (Mechanical)8.187.837.830.00
Wastewater Instrument/Electrician3.883.883.880.00
Electricia1.001.001.000.00
n
Maint Worke9.369.3110.290.98
r
Billing Specialis1.001.001.000.00
t
Engineering Associate0.000.350.350.00
Senior Office Superviso0.890.890.890.00
r
Admin Specialist,Sr0.890.890.890.00
Admin Specialis1.391.791.790.00
t
Parts and Supply Specialist1.781.781.840.06
Custodial Worke1.001.001.000.00
r
-0.38
TOTAL75.3776.4976.11
96.4295.8992.56-3.33
GRAND TOTAL
Page 19 DRAFT FY 10-11 BUDGET AND CIP
Metropolitan Wastewater Management Commission Reserves
REGIONAL WASTEWATER PROGRAM
RESERVES
The RWP maintains reserve funds for dedicated purpose to sustain stable rates while fully
funding operating and capital needs. Commission policies and guidance, which direct the
amount of reserves appropriated on an annual basis, are found in the MWMC Financial Plan
(2005). Further details on the FY 10-11 reserves are provided below.
OPERATING RESERVES
The MWMC Operating Budget includes four separate reserves: the working capital reserve, rate
stability reserve, rate stabilization reserve, and the operating reserve.Revenues are appropriated
across the reserves in accordance with Commission policy and expenditure needs. Each reserve
is explained in detail 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 from the Springfield Utility Board and Eugene
Water and Electric Board. The Working Capital Reserve is set at $900,000 for FY 09-10,
$200,000 of which is dedicated to Administration and $700,000 is dedicated to Operations.
RATE STABILITY 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 for use in future years, in order to avoid “rate spikes.” The amount
budgeted on an annual basis varies in response to the variability of actual revenues net of
expenses, and annual budgeted amounts for the operating and capital reserves.
RATE STABILIZATION RESERVE
The Rate Stabilization Reserve contains funds to be used at any point in the future when net
revenues are insufficient to meet the bond covenant coverage requirement. The Commission
shall maintain the Rate Stabilization account as long as bonds are outstanding. In FY 10-11 no
additional contribution to this reserve is budgeted and the balance at June 30, 2010 will remain at
$2,000,000.
OPERATING RESERVE
The Operating Reserve is used to account for accumulated operating revenues net of operating
expenditures (including other reserves). The Commission’s adopted policy is to budget the
Operating Reserve at approximately 10% of the adopted operating budget. For FY 10-11, the
Page 20 DRAFT FY 10-11 BUDGET AND CIP
Metropolitan Wastewater Management Commission Reserves
Operating Reserve is budgeted at $1,585,136,which is 10% of total Personal Services, Materials
and Services, and Capital Outlay in accordance with Commission policy.
EXHIBIT 7
ADOPTED AMENDED PROPOSED
BUDGET BUDGET BUDGET
OPERATING RESERVES
FY 09-10FY 09-10FY 10-11
Beginning Balance6,894,1548,301,98510,584,063
User Fee Revenue24,550,34324,550,34325,940,795
Septage Revenue116,208116,20880,000
Other Revenue1,634,5001,634,5001,634,500
Interest335,000335,000125,000
Personal Services(8,660,632)(8,660,632)(8,609,080)
Materials & Services(6,542,280)(6,602,780)(6,538,359)
Capital Outlay(29,460)(29,460)0
Interfund Transfers(7,413,743)(7,413,743)(10,839,845)
Transfer to Bond Debt Service Fund(2,880,957)(2,880,957)(5,301,288)
Debt Service - SRF Loan00(590,650)
WORKING CAPITAL
(900,000)(900,000)(900,000)
RATE STABILITY RESERVE
(3,560,850)(4,908,181)(2,000,000)
RATE STABILIZATION RESERVE
(2,000,000)(2,000,000)(2,000,000)
OPERATING RESERVE1,542,2831,542,2831,585,136
CAPITAL RESERVES
The MWMC Capital Budget includes five reserves: the Equipment Replacement Reserve, SDC
Reserves (i.e. Reimbursement and Improvement), the Capital Reserve and the Bond Reserve.
These reserves accumulate revenue to help fund capital projects including equipment
replacement and major rehabilitation. They are funded by annual contributions from user rates,
SDCs, bond proceeds, and SRF loans. Each reserve is explained in detail below.
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 10-11 budget total $796,000, additional budget details are
provided below.
The Equipment Replacement Reserve is intended to accumulate funds necessary to provide for
the timely replacement or rehabilitation of equipment, and may also be borrowed against to
provide short-term financing of capital improvements. An annual analysis is performed on the
Equipment Replacement Reserve. The annual contribution is set so that all projected
Page 21 DRAFT FY 10-11 BUDGET AND CIP
Metropolitan Wastewater Management Commission Reserves
replacements will be funded over a 20-year period and at the end of the 20-year period, the
reserve will contain replacement funds for all equipment projected to be in use at that time.
Estimates used in the analysis include interest earnings, inflation rates and useful lives for the
equipment.
ADOPTED AMENDED PROPOSED
BUDGET BUDGET BUDGET
FY 09-10FY 09-10FY 10-11
EQUIPMENT REPLACEMENT RESERVE
Beginning Balance8,085,3188,085,3188,644,644
Annual Equipment Contribution517,799517,799518,000
Annual Vehicle Contribution241,431241,431242,000
Annual Computer Contribution35,47035,47036,000
Interest300,000288,61789,900
Equipment Purchases(258,710)(328,079)(105,579)
Reserve8,921,3088,840,5569,424,965
SYSTEM DEVELOPMENT CHARGE (SDC) RESERVES
SDCs are required as part of the MWMC IGA. They are connection fees charged to new users to
recover the costs related to system capacity, and are limited to funding Capital Programs. The
purpose of the SDC Reserves is to collect and account for SDC revenues separately from other
revenue sources, in accordance with Oregon statutes. The Commission’s SDC structure includes
a combination of “Reimbursement” and “Improvement” fee components. Estimated SDC
revenues for FY 10-11 are approximately $589,821. Budgeted expenditures include $50,000
from Reimbursement Fees and $2,500,000 from Improvement Fees to fund portions of the
annual debt service payments on the 2006 and 2008 revenue bonds. The projected beginning
SDC Reserve balance on July 1, 2010 is $4,306,321.
ADOPTED AMENDED PROPOSED
BUDGET BUDGET BUDGET
REIMBURSEMENT SDC RESERVE
FY 09-10FY 09-10FY 10-11
Beginning Balance2,985,0462,972,61326,496
Reimbursement SDCs Collected58,12558,12558,433
Interest 175,000175,000271
Xfr to Debt Service (Fund 312)(3,003,963)(3,003,963)(50,000)
Materials & Services(7,500)(7,500)(7,500)
Reserve206,708194,27527,700
Page 22 DRAFT FY 10-11 BUDGET AND CIP
Metropolitan Wastewater Management Commission Reserves
ADOPTED AMENDED PROPOSED
BUDGET BUDGET FY BUDGET
FY 09-1009-10FY 10-11
IMPROVEMENT SDC RESERVE
Beginning Balance6,310,1606,298,4604,279,825
Improvement SDCs Collected605,625605,625530,848
Interest 300,000300,00032,930
Materials & Services(4,000)(4,000)(4,000)
Xfr to Debt Service (Fund 312 )(2,505,013)(2,505,013)(2,500,000)
Reserve4,706,7724,695,0722,339,603
CAPITAL RESERVE
The Capital Reserve accumulates 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 collect sufficient funds over time to construct a portion of planned capital projects with cash in
an appropriate balance with projects that are funded with debt financing. The FY 10-11 Budget
includes a contribution from the Operating Reserve of $10,043,844. The beginning balance on
July 1, 2010 is projected to be $41,416,192. Additional budget detail on the CIP, Major Capital
Outlay and Major Rehabilitation Program reserves is provided below.
BOND RESERVE
The Bond Reserve was created to provide assurances to the bond holders that adequate revenue
coverage will be provided for future debt service payments. For FY 10-11 the Bond Reserve is
budgeted at $8,100,000 in order to meet reserve requirements of the bond issuances ($4,100,000
for 06 issuance and $4,000,000 for 08 issuance).
ADOPTED AMENDED PROPOSED
BUDGET BUDGET BUDGET
CAPITAL RESERVES
FY 09-10FY 09-10FY 10-11
Beginning Balance59,586,74877,995,22241,416,192
Transfer from Operating Reserve6,619,0436,619,04310,043,844
Interest450,000450,000265,400
Interest Income (Revenue Bond Proceeds)860,000860,000148,550
State Marine Board Grant80,00080,0000
Revenue Bond Sale & SRF Proceeds27,800,00027,279,70010,306,739
Miscellaneous Receipts7,0007,0003,500
Bond Sale Expense(200,000)(200,000)0
Arbitrage Expense(454,939)(454,939)0
Funding For Capital Improvement Projects(65,016,782)(78,121,345)(32,814,768)
Funding For Major Rehabilitation(158,700)(376,700)(50,000)
Revenue Bond Reserve(10,100,000)(10,100,000)(8,100,000)
Capital Reserve 19,472,37024,037,98121,219,457
* Includes $450,000 in sponsorship contributions
Page 23 DRAFT FY 10-11 BUDGET AND CIP
Metropolitan Wastewater Management Commission Springfield BudgetDetail
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 10-11 is provided in Exhibit 12 on page 41.
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 of wastewater 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, in part, 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 2010, there were 20 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
coordinates pollution prevention activities in cooperation with the Pollution Prevention Coalition
of Lane County.
Page 24 DRAFT FY 10-11 BUDGET AND CIP
Metropolitan Wastewater Management Commission Springfield BudgetDetail
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
maintains 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.
PROGRAMS AND SIGNIFICANT SERVICE/EXPENDITURE CHANGES
In FY 10-11, the City of Springfield will support the following major regional initiatives in
addition to ongoing Commission administration and industrial pretreatment activities:
Revise the Wet Weather Flow Management Plan (WWFMP), focusing on continued
Inflow and Infiltration reductions, including flow monitoring, data tracking, and regional
coordination, and continue to explore methods of addressing private laterals.
Implement Capital Financing strategies necessary to meet current revenue bond
obligations, prepare for additional debt financing, and ensure sufficient revenues in
accordance with the 2005 MWMC Financial Plan.
Continue implementation of the 2004 MWMC Facilities Plan to meet all regulatory
requirements and capacity needs and update the 2004 Facilities Plan in FY 10-11.
Considering emerging environmental regulations that may impact the operation of the
WPCF.
Continue public information and outreach activities focused on the MWMC Facilities
Plan and MWMC work to maintain river health.
Protect RWP interests through participation in Association of Clean Water Agencies
activities and Board of Directors.
Coordinate temperature TMDL compliance through the development and implementation
of the recycled water program.
Complete a Poplar Marketing and Harvest Plan, which was initiated in FY 07-08.
Complete a reclaimed water end-use market/feasibility study and capital plan, which was
initiated in FY 07-08.
Continue participation in the Pollution Prevention Coalition of Lane County.
Page 25 DRAFT FY 10-11 BUDGET AND CIP
Metropolitan Wastewater Management Commission Springfield BudgetDetail
SIGNIFICANT CHANGES FOR FY 10-11
The budget for Springfield Personnel Services, Materials and Services, and Capital Outlay for FY
10-11 totals $3,546,832 representing an overall decrease of $328,200 over the adopted FY 09-10
budget (8.5%).
Personnel Services
Personnel Services totaling $1,586,955 represent a FY 10-11 decrease of $224,733 or (12.4%)
over the originally adopted FY 09-10 budget.
Staffing
A net decrease of 2.95 FTE is included in the FY 10-11 budget.
-1.0 Eliminated a Design Construction Coordinator position.
-1.0 Eliminated a Civil Engineer position.
-0.95 Re-allocation of two Engineering Assistants and a Clerk II position across other
programs.
Regular Wages - $1,043,086 [Decrease of $152,510 or (13%)]
This decrease represents net decrease of 2.95 FTE
Employee Benefits - Budget Request $471,503 [Decrease $87,480 or 16%]
Fringe benefits are reduced by $87,480, primarily as a result of the reduction in FTEs.
Materials and Services
The Materials and Services budget represents a total FY 10-11 decrease of $103,467 or (5.0%)
over the originally adopted FY 09-10 budget.The major changes are in the following budget
categories:
Contractual Services –$258,500 [Increase of $50,000 or (24%)]
Increase in Contractual Services of $50,000 to perform condition assessment of the Regional
Wastewater conveyance system.
Page 26 DRAFT FY 10-11 BUDGET AND CIP
Metropolitan Wastewater Management Commission Springfield BudgetDetail
Litigation Expense - $100,000 [Decrease of $50,000 or (33%)]
Decrease of $50,000 as a result of reaching a settlement agreement with DEQ on the
Temperature TMDL.
Internal Insurance Charges - $26,403 [Decrease of $20,947 or (44%)]
Decrease of $20,947 from FY 09-10.
Internal Facilities Rent - $ 0
The City of Springfield determined that the Internal Facilities Rent would not be budgeted
for FY 10-11, and would be reassessed for FY 11-12.
Computer Software - $42,150 [Increase of $18,200 or 76%]
Increase in Computer Software of $18,200, this includes a three-year license renewal of the
DHM Mouse Software (hydraulic modeling software for wastewater flows).
Page 27 DRAFT FY 10-11 BUDGET AND CIP
Metropolitan Wastewater Management Commission Springfield BudgetDetail
EXHIBIT 8
SPRINGFIELD ADMINISTRATION PROGRAM
PROPOSED FY 10-11
BUDGET SUMMARY
ADOPTED AMENDED PROPOSED
*
ACTUALBUDGETBUDGETBUDGETCHANGE
FY 08-09FY 09-10FY 09-10FY 10-11INCR/(DECR)
Personnel Services$1,728,021$1,811,688$1,811,688$1,586,955($224,733)
-12.4%
Materials & Services2,199,5212,063,3442,063,3441,959,877(103,467)
-5.0%
Capital Outlay00000
NA
Budget Summary$3,927,542$3,875,032$3,875,032$3,546,832($328,200)
-8.5%
5-YEAR MWMC ADOPTED BUDGET COMPARISON
SPRINGFIELD ADMINISTRATION
$4,500,000
$3,923,761
$3,875,032
$3,747,709
$4,000,000
$3,546,832
$3,375,338
$3,500,000
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$0
FY 06-07FY 07-08FY 08-09FY 09-10FY 10-11
Note: * Change column and Percent Change column compare proposed FY 10-11 budget to originally adopted
FY 09-10 budget.
Page 28 DRAFT FY 10-11 BUDGET AND CIP
Metropolitan Wastewater Management Commission Springfield BudgetDetail
EXHIBIT 9
SPRINGFIELD ADMINISTRATION
LINE ITEM BUDGET SUMMARY
PROPOSED
ADOPTEDAMENDED
CHANGE
AMENDEDBUDGETBUDGETBUDGET
FY 08-09FY 09-10FY 09-10FY 10-11
PERSONNEL SERVICESINCR/(DECR)
Regular Wages
$1,155,666$1,195,596$1,195,596$1,043,086($152,510)-13%
Seasonal/Intern/Temp Wages
018,00018,00018,00000%
vertme
50055085508150089500172%
5
Oi,,,,,
mpoyee enets
50027055898355898347150387480-16%
ElBfi,,,,(,)
eone owance
88044164416441600%
2
CllPhAll,,,,
ersonaervces ustments
21751290052900534798579320%
PlSiAdj,,,,,
omp me ayo
418220000 N
CTiPff,A
ar owance
13218018014436-20%
CAll()
otaersonneervces
$1728021$1811688$1811688$1586955$224733-12.4%
TlPlSi,,,,,,,,(,)
FTE20.2519.4019.4016.45 -15%2.95
()
MATERIALS & SERVICES
Billin & Coll Ex40906555500055500056055055501%
gp,,,,,
Contractual Services2210002085002085002585005000024%
,,,,,
Litiation Exense36600015000015000010000050000-33%
gp,,,,(,)
Environmental Ed500050005000500000%
,,,,
Attorne Fees7500075000750007500000%
y,,,,
Merchant Fees1575013500135001350000%
,,,,
00027500027500027500000%
PP&L Insurance275
,,,,
Telehone2300231023102300100%
p,,,,()
Ris/Airs/Geo Chares137151417814178144692912%
g,,,,
Comuter Euimen13330000 N
pqpt,A
Advertisin450058005800580000%
g,,,,
Duplicating Supplies2,3002,2002,2002,20000%
Printin9500950095009400100-1%
g,,,,()
Travel & Meetin Exenses30750341003410033500600-2%
gp,,,,()
Proert Taxes500050005000500000%
py,,,,
WPCF/NPDES Permits1050001196251196251201505250%
,,,,
Pretreatment Supplies
3,0003,0003,0003,00000%
aety otngEq
00012501250120050-4%
1
SfClhi/,,,,()
Gasoline & Oil20002950295015501400-47%
,,,,(,)
Utilities6224715871586308850-12%
,,,,()
Membershis Books Subscris16502179501795017100850-5%
p,,p,,,,()
Postage & Shipping Charges3,5003,5003,5003,50000%
lies940068506850685000%
Office Su
pp,,,,
Comuter Software454602395023950421501820076%
p,,,,,
Small Furniture & Aliances150010001000100000%
pp,,,,
Commuter Tri Reduction300450450350100-22%
p()
Proram Exense845504350043500380005500-13%
gp,,,,(,)
Euiment Maintenance1060010600106001060000%
qp,,,,
Proert Maintenance100015001500150000%
py,,,,
Emloee Develomen289002895028950259003050-11%
pypt,,,,(,)
Internal Insurance Chs4691447350473502640320947-44%
g,,,,(,)
Internal Veh Mt Chs370333283328332800%
g,,,,
Internal Fac Ren425923489734897034897 N
t,,,(,)A
Comuter Eui Chs9453692469247003791%
pqpg,,,,
Bld Maint Chs30273361193611935902217-1%
gg,,,,()
Internal Veh & Eui Ren71017992799210212222028%
qpt,,,,,
Internal Emloee Benefit 17292131651316512313852-6%
py,,,,()
License & Fee Refunds5569535053504565785-15%
,,,,()
Internal MS Enterrise Areemen00000 N
pgtA
Indirect Costs28147526563626563620904056596-21%
,,,,(,)
Internal Buildin Preservation Chs01526215262117343528-23%
gg,,,(,)
Total Materials & Services$2199521$2063344$2063344$1959877$103467-5.0%
,,,,,,,,(,)
CAPITAL OUTLAY
Total Caital Outla00000 N
pyA
TOTAL$3,927,542$3,875,032$3,875,032$3,546,832($328,200)-8.5%
Page 29 DRAFT FY 10-11 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 for the Metropolitan Wastewater Management Commission
(MWMC). BUDGET
These regional facilities include the Eugene/Springfield Regional Water Pollution Control
Facility (WPCF), the 154 acre Biosolids Management Facility, the 286 acre Beneficial Reuse
Site, 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, and flow monitoring on the regional
sanitary trunk sewers.
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. The Administrative services include oversight and coordination of the
Division’s Environmental Management System, safety, and training programs. 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 an average of 59 million gallons per day (mgd) of dry
weather flow, with a wet weather peak hourly flow of 277 mgd. The Operations section
optimizes wastewater treatment processes to ensure effluent quality requirements are met in an
effective manner. In addition, the Operations section provides 24 hour per day monitoring of
the alarm functions for all plant processes, regional and local pump stations, and the Biosolids
and Beneficial Reuse Site.
REGIONAL WASTEWATER TREATMENT
FACILITY MAINTENANCE
The Maintenance section of the Wastewater Division is responsible for preservation of the
multi-million dollar investment in the equipment and infrastructure of the WPCF. This section
provides a preventative maintenance program to maximize equipment life and performance; a
Page 30 DRAFT FY 10-11 BUDGET AND CIP
Metropolitan Wastewater Management Commission Eugene Budget Detail
corrective maintenance program for repairing 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 Beneficial Reuse Site.
BIOSOLIDS MANAGEMENT
The Residuals Management section of the Wastewater Division manages the handling and
beneficial reuse of the biological solids (biosolids) produced as a result of the activated sludge
treatment of wastewater. This section operates the Biosolids Management Facility (BMF) and
the Biocycle Farm located at Awbrey Lane in Eugene. Approximately 5,000 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 processed through a belt filter press and air-dried to reduce the water content and facilitate
transport. The dried material is ultimately applied to agricultural land or irrigated on poplar
trees at the Biocycle Farm as a beneficial fertilizer and soil conditioner. This section also
manages the Beneficial Reuse Site, which formerly served to treat wastewater from food
processing operations.
INDUSTRIAL SOURCE CONTROL (Pretreatment) and ANALYTICAL SERVICES,
SAMPLING TEAM
The pretreatment program is a regional activity implemented jointly by the cities of Eugene
and Springfield. The Industrial Source Control group of the Wastewater Division is charged
with administering the pretreatment program for the regulation and oversight of commercial
and industrial wastewaters discharged to the sanitary collection system by fixed-site industries
in Eugene and by mobile waste haulers in the Eugene and Springfield areas. This group 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 December 2009, there were 23 significant industrial users under permit in
Eugene.
The section also has responsibilities related to environmental spill response activities.
The Analytical Services group provides necessary analytical work in support of wastewater
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,
stormwater, and groundwater. Information from the laboratory is used to make treatment
Page 31 DRAFT FY 10-11 BUDGET AND CIP
Metropolitan Wastewater Management Commission Eugene Budget Detail
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. The Division’s Environmental Data Analyst
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 of wastewater system improvements and ongoing developments is carried out by
the Project Management staff. Activities include coordination of CIP activities with the City of
Springfield staff, problem-solving and action recommendations, project management, technical
research, coordination of activities related to renewal of the NPDES wastewater discharge
permit, 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, coordinates special
project activities between work sections, and coordinates the procurement of building permits as
necessary in support of project activities.
PROGRAMS AND SIGNIFICANT SERVICE/EXPENDITURE CHANGES
In FY 10-11, Eugene staff will support the following major regional initiatives in addition to
ongoing operational activities.
Continue efforts to optimize service effectiveness and efficiency, and further develop
performance measurement and tracking systems (through use of a Balanced Scorecard
approach to defining and managing organizational objectives).
Manage the Operations & Maintenance (O&M) aspects of the Biocycle Farm, continuing the
development of the biosolids irrigation practices and poplar tree management.
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, with emphasis on maintaining an effective CIP management and
coordination program with Springfield.
Provide technical input and O&M assessments related to proposed initiatives for addressing
TMDL compliance, greenhouse gas emission controls, and renewable energy objectives.
Page 32 DRAFT FY 10-11 BUDGET AND CIP
Metropolitan Wastewater Management Commission Eugene Budget Detail
Continue to evaluate impacts of regulatory actions (such as the federal SSO and blending
policy development, Willamette River TMDLs implementation, and any newly adopted state
water quality standards) upon operational responsibilities.
Complete scheduled major rehabilitation and equipment replacement projects in an efficient
and timely manner.
Complete major steps in the effective use of the maintenance management program,
including updating of the computerized maintenance management system for maintenance
scheduling, asset information, reporting, and monitoring performance.
SIGNIFICANT CHANGES IN THE O & M BUDGET FOR FY 10-11
The proposed budget for Operations and Maintenance of the regional wastewater treatment facilities
.
(personnel, materials and services, and capital outlay) for FY 10-11 totals $11,612,107 The amount
represents an increase of 2.1% from the FY 09-10 budget. The largest cost centers for the proposed
budget are personnel costs, utilities, chemicals, and fleet operating charges. Details of significant
items and changes proposed for the FY 10-11 Operations and Maintenance budget as compared to
the FY 09-10 budget are highlighted below:
Personnel Services
Personnel Services totaling $7,022,125 represents a FY 10-11 increase of $173,181 or 2.5%. The major
changes are in the following budget categories:
Staffing
A budget decrease of -0.38 FTE allocation is projected for FY10-11due to:
Reducing a full-time laboratory Wastewater Technician to part-time (-0.43 FTE reduction).
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 are reviewed and
adjustments are made to the proposed year’s budget. This is done to project proper charges of
staffing based on actual time spent between the regional and local funds, and considering
planned labor activities for the coming fiscal year. (+0.05 FTE increase)
Regular Wages – $4,605,994 [Increase of $217,188 or 4.9%]
Salaries are based upon negotiated management/labor contracts between the City of Eugene and
the local union (AFSCME). The Cost of Living (COLA) is projected at 2.0%.
The increase is also a result of a budgeting change in the Regular Wages account in which costs
that were previously budgeted for contracted extra help in the materials and services budget
were moved into the Regular Wages account and budgeted for personnel costs.
Page 33 DRAFT FY 10-11 BUDGET AND CIP
Metropolitan Wastewater Management Commission Eugene Budget Detail
Overtime - $92,020 [Decrease of $17,000 or -16%]
Overtime hours were adjusted to reflect a reduction in overtime hours needed to backfill vacant
positions.
Health Insurance - $931,723 [Decrease of $26,783 or -3%]
The decrease is based on group claims experience and cost projections. Rates are allocated
based on the number of employees.
Materials and Services
The proposed Materials and Services budget totaling $4,589,982 represents a total FY 10-11
increase of $99,546 or 2.2%. The major changes are in the following budget categories:
Contractual Services – $391,020 [Decrease of $71,296 or -15%]
While this expense category was decreased in several program areas, $19,000 was added to the
budget for temperature and turbidity monitoring to meet new regulatory requirements.
Fleet Operating Charges – $332,767 [Decrease of $40,972 or -11%]
Each year fleet rates are estimated by proportioning historic costs by vehicle category. The
decrease in this line item is based on previous year’s expenditures for equipment.
Computer Equipment, Supplies, Maintenance - $221,948 [Increase of $35,547 or 19%]
The proposed budget includes $55,000 for replacing 9 year-old treatment plant data
processing software used to meet regulatory reporting requirements, provide analytical
trending analysis, and historical retention of process environment data.
Page 34 DRAFT FY 10-11 BUDGET AND CIP
Metropolitan Wastewater Management Commission Eugene Budget Detail
EXHIBIT 10
O & M - CITY OF EUGENE PROGRAM
PROPOSED FY 10-11
BUDGET SUMMARY
ADOPTED AMENDED PROPOSED
*
ACTUALBUDGETBUDGETBUDGETCHANGE
FY 08-09FY 09-10FY 09-10FY 10-11INCR/(DECR)
Personnel Services$6,170,334$6,848,944$6,848,944$7,022,125$173,1812.5%
Materials & Services$3,385,322$4,490,436$4,552,436$4,589,98299,5462.2%
Capital Outlay57,00029,46029,4600(29,460)-100.0%
Budget Summary$9,612,656$11,368,840$11,430,840$11,612,107$243,2672.1%
5-YEAR MWMC ADOPTED BUDGET COMPARISON
O&M -EUGENE
$11,612,107
$11,368,840
$12,000,000
$10,616,760
$10,026,097
$9,659,696
$10,000,000
$8,000,000
$6,000,000
$4,000,000
$2,000,000
$0
FY 06-07FY 07-08FY 08-09FY 09-10FY 10-11
Note: * Change column and Percent Change column compare adopted FY 10-11 budget to originally adopted FY
09-10 budget.
Page 35 DRAFT FY 10-11 BUDGET AND CIP
Metropolitan Wastewater Management Commission Eugene Budget Detail
EXHIBIT 11
O&M - CITY OF EUGENE
LINE ITEM BUDGET SUMMARY
PROPOSED
ADOPTEDAMENDED
CHANGE
ACTUALBUDGETBUDGETBUDGET
FY 08-09FY 09-10FY 09-10FY 10-11
INCR/(DECR)
PERSONNEL SERVICES
Regular Wages$4,022,8404,388,806$4,388,8064,605,994$217,1884.9%
Extra Help4,748 -0 -0 NA
Overtime45,472109,020109,02092,020(17,000)-16%
Employee Benefits1,330,1751,310,4541,310,4541,310,230(224)0%
Workers' Comp/Unemploy Ins48,38482,15882,15882,15800%
Health Insurance718,715958,506958,506931,723(26,783)-3%
TOTAL PERSONNEL SERVICES6,170,3346,848,9446,848,9447,022,125173,1812.5%
FTE75.3776.4976.4976.11(0.38)-0.5%
MATERIALS & SERVICES
Utilities571,371707,362707,362705,505(1,857)0%
Fleet Operating Charges330,268373,739373,740332,767(40,972)-11%
Maintenance-Equip & Facilities292,678383,840383,840378,793(5,047)-1%
Contractual Services305,250462,316467,316391,020(71,296)-15%
Materials & Program Expense461,283548,608548,608540,818(7,790)-1%
Chemicals244,090449,555449,555454,5855,0301%
Parts & Components229,072224,297224,297227,3473,0501%
Risk Insurance - Employee Liability74,62655,206109,26581,88826,68248%
Laboratory Equipment & Supplies23,77874,26555,20650,735(23,530)-32%
Computer Equip, Supplies, Maint147,988186,401208,401221,94835,54719%
Indirects704,9181,024,8471,024,8461,204,576179,72918%
TOTAL MATERIALS & SERVICES3,385,3224,490,4364,552,4364,589,98299,5462.2%
CAPITAL OUTLAY
Motorized Vehicles57,00015,00015,0000(15,000) NA
Capital Outlay-Other014,46014,4600(14,460) NA
TOTAL CAPITAL OUTLAY57,00029,46029,4600(29,460) NA
LINE ITEM SUMMARY: EUGENE9,612,65611,368,84011,430,84011,612,107243,2672.1%
EQUIPMENT REPLACEMENT513,619$ $ 258,710$ 327,821$ 105,579$(153,131)-47%
MAJOR REHAB$ 721,742$ 158,700$ 371,955$ 50,000$(108,700)-29%
MAJOR CAPITAL OUTLAY$ 2,197,295$ -$ NA-
$ 11,786,250$12,130,616$11,767,686
Page 36 DRAFT FY 10-11 BUDGET AND CIP
Metropolitan Wastewater Management Commission Capital Improvement Program
REGIONAL WASTEWATER PROGRAM
CAPITAL PROGRAMS
Overview and Goals
The FY 10-11 Regional Wastewater Program (RWP) Capital Budget and the FY 10-15 five-
year Capital Improvement Program (CIP) are based on the MWMC Facilities Plan (the Plan),
which was approved by the MWMC, the governing bodies of Eugene, Springfield and Lane
County, and the Oregon Department of Environmental Quality in 2004. The Facilities Plan,
and its 20-year capital project list, was the result of a comprehensive evaluation of the regional
wastewater treatment facilities serving the Eugene-Springfield metropolitan area. The Plan
built on previous targeted studies, including the 1997 Master Plan, 1997 Biosolids Management
Plan, 2001 Wet Weather Flow Management Plan (WWFMP), and the 2003 Management Plan
for a dedicated biosolids land application site. The Facilities Plan is intended to identify facility
enhancements and expansions that are needed to meet increased regulatory and wet weather
flow requirements and to serve the community’s wastewater capacity and treatment needs
through 2025.
The objectives of the Capital Program are:
Compliance with applicable local, state, and federal laws and regulations;
Protection of the health and safety of people and property from exposure to hazardous
conditions such as exposure to untreated or inadequately treated wastewater;
Provision of adequate capacity to facilitate community growth in the Eugene-
Springfield metropolitan area consistent with adopted land use plans;
Construction, operation, and management of the MWMC facilities in a manner that is as
cost-effective, efficient, and affordable to the community as possible in the short and
long term;
Implementation of Citizens Advisory Committee recommendations, which represent
diverse community interests, values and involvement, and that have been adopted by the
Commission as MWMC plans and policies; and
Mitigation of potential negative impacts of the MWMC facilities on adjacent uses and
surrounding neighborhoods (ensuring that the MWMC facilities are “good neighbors”
as judged by the community).
Attaining these objectives is the basis for the projects included in the five-year CIP and FY 10-
11 Capital Projects budget administered by the Capital Projects Section staff in the City of
Springfield. The capital program objectives also guide the capital projects administered by the
City of Eugene that extend the life of the existing facilities through equipment replacement,
facility rehabilitation and capital outlay.
With respect to the first objective above, the MWMC recently passed a significant milestone.
State of Oregon Administrative Rules (specifically those contained in OAR 340-041-0009)
required the MWMC to complete improvements needed to achieve the estimated peak hydraulic
capacity in the regional conveyance and treatment systems by the end of 2009. This was
accomplished as of December 31, 2009.
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Metropolitan Wastewater Management Commission Capital Improvement Program
CIP Financial Planning and Policy Overview
The RWP CIP is funded primarily through proceeds from revenue bond sales, system
development charges, and transfers from the operating fund to Capital Reserves. Project
financing is also available through the Clean Water State Revolving Fund (SRF) loan program.
In 2008, staff applied for a construction SRF loan, and in 2009, staff applied for a planning SRF
loan. As a result, the MWMC entered into a loan agreements with the State of Oregon
Department of Environmental Quality (DEQ) in 2008 and 2009 that will allow the MWMC to
borrow up to $37.5 million over the next five years for qualifying projects. Through the
construction loan program, $8,000,000 dollars of financing has been approved for the Tertiary
Filtration—Phase 1 project. Another $7,500,000 dollars of financing is approved and pending
for the Odorous Air Control project. Of that $7,500,000, $4,000,000 is funded through the
American Reinvestment and Recovery Act (ARRA, or “Stimulus”). ARRA funds require only
50% be repaid at 0% interest, resulting in $2,000,000 of revenue to the CIP. Additionally,
$1,279,200 in SRF financing is available to the MWMC for RWP planning efforts. Loan
payments on both construction and planning efforts start in October 2010.
The operating fund derives the majority of its revenue from wastewater user charges that are
collected by Eugene and Springfield from their respective customers. Transfers from the
operating fund are budgeted annually consistent with the MWMC Financial Plan to meet the
financial needs of the capital projects. The RWP uses these transfers to reduce the amount of
borrowing necessary to finance the capital program.
For each fiscal planning cycle, only one year of budget authority is appropriated. The
remaining four years of the CIP are important and useful for fiscal and work planning purposes,
but the funds in the outer years of the CIP are only planned for, not appropriated. The full
amount of obligated multi-year project costs is typically appropriated in the first year of the
project, unless a smaller subset of the project, such as project design, can be identified and
funded without budgeting the full projected project cost. For these multi-year contracts,
unspent funds from one fiscal year will be carried over to subsequent fiscal years until the
project is completed.
The RWP CIP reflects projected price changes over time that affect the cost of materials and
services. Until about 2003, the 20-year average Engineering News Record (ENR) inflationary
factor for construction served as a good predictor for future inflation and was used for
projecting the MWMC costs. Initial cost projections for projects included in the Facilities Plan
were included in the Plan based on January 2004 construction costs. In recent years however,
construction inflation has accelerated and local construction cost inflation has even accelerated
faster than the ENR average and the MWMC has modified its inflationary projections
accordingly.
In early 2006, the MWMC hired the consulting firm CH2M Hill to perform a comprehensive
update of project cost estimates. Following that update, the RWP CIP assumes general prices
change at five percent per year over the planning period. This does not reflect a projection of
any single inflation index but was developed by CH2M Hill to reflect a reasonable aggregate
rate of increases for the next five years, based on the historical activity of both construction and
Page 38 DRAFT FY 10-11 BUDGET AND CIP
Metropolitan Wastewater Management Commission Capital Improvement Program
non-construction price indices. Indices tracked include the Engineering News Record
Construction Cost Index, the Turner Building Cost Index, and the Consumer Price Index.
Regional Wastewater Program Capital Projects Budget
The following is a summary of the status of capital projects that are currently budgeted in the
FY 09-10 Regional Wastewater Program Capital Budget and those included in the proposed FY
10-11 Capital Budget.
The proposed Regional Wastewater Program Capital Projects budget consists of the projects in
the first year of the FY 10-15 five-year CIP, totaling $32,364,768.
Information regarding each project included in the FY 10-11 Capital Projects budget is included
in the CIP project summary sheets, included in this document. Each summary sheet provides a
description of the project, the project’s purpose and what is driving the timing of the project,
the funding schedule, and the expected final cost and cash flow for the project. For those
projects that are in progress, a short status report is included on the summary sheet.
Completed Capital Projects (Scheduled Completion by June 30, 2010)
In FY 09-10, several capital projects are projected to be completed and closed out. No CIP
summary sheets are included in this document for these projects because there is no expected
carryover of project funds to FY 10-11, and therefore no FY 10-11 budget for these projects
will be requested. All projects completed in FY 09-10 have been completed within the
Commission-approved capital budgets for each project. The completed capital projects are:
Aeration Basin Improvements – Phase 1
Biocycle Farm - Phase 3
Line Biosolids Lagoon - Phase 2
Master Landscape Design & Implementation for the WPCF (The Landscape Design &
Implementation for the WPCF project established the integrated conceptual design for
the WPCF. It was funded by existing budgeted MWMC Capital Projects. Hereafter,
implementation of the landscape detailed design and construction will likewise be
funded through existing and approved project budgets)
Carryover Capital Projects (Projects Initiated in FY 09-10 or Earlier)
Most or all (depending on the specific project) of the remaining funding for capital projects that
were started or are on-going in FY 09-10 is carried over in this FY 10-11 budget. CIP project
summary sheets for these carryover projects are included in this document. Overall, the
funding for these projects continues to be consistent with the CH2M Hill 2006 re-costing of
capital projects. The on-going carryover projects are:
Clarifier Improvements
WWFMP Update
Page 39 DRAFT FY 10-11 BUDGET AND CIP
Metropolitan Wastewater Management Commission Capital Improvement Program
Facilities Plan Engineering Services
Influent Pumping and Headworks Exp
Sodium Hypochlorite Conversion
Peak Flow Management Improvements
Odorous Air Treatment - Phase 1
Odorous Air Treatment - Phase 2
Primary Sludge Thickening
Tertiary Filtration - Phase 1
Effluent Reuse - Phase 1
Effluent Reuse - Phase 2
Line Biosolids Lagoon – Phase 3
New Projects for the FY 10-11 Capital Budget
Consistent with the Facilities Plan project list and consistent with the FY 09-10 CIP, several
additional projects are rolling from the second year of the adopted FY 09-14 CIP, into the first
year of the FY 10-15 CIP, and therefore into the FY 10-11 Capital Budget. CIP project
summary sheets for these projects are included in this document.
New projects added in the FY 10-11 Capital budget are:
2010 Partial Facility Plan Update
Increase Digestion Capacity
Waste Activated Sludge Thickening
Repair and/or Partial Replacement of Biosolids Force Main
Summary of FY 09-10 Capital Budget
The following summary table shows the adjusted budget and end-of-year estimates for
expenditures for the FY 09-10 Capital Budget and the amount of funding that is expected to be
carried over to FY 10-11 for those projects that are ongoing to FY 10-11. Also shown is
additional funding and new projects in the FY 10-11 Capital Budget. The projects are
organized in the table by where they are in the funding cycle, i.e. projects completed in FY 09-
10, projects to be carried over from the FY 09-10 budget to the FY 10-11 budget, and projects
that are newly budgeted. These projects and funding are consistent with the planning and
funding as presented in the approved FY 09-14 CIP.
Page 40 DRAFT FY 10-11 BUDGET AND CIP
Metropolitan Wastewater Management Commission Capital Improvement Program
EXHIBIT 12
Summary of FY 10-11 MWMC Construction Program Capital Budget
TOTAL
FY 09-10 FY 09-10 FY 09-10 NEW FUNDING PROPOSED
ADJUSTED ESTIMATED CARRYOVER PROGRAMMED FY 10-11
BUDGETACTUALSTO FY 10-11FOR FY 10-11BUDGET
Projects Completed in FY 08-09
Aeration Basin Improvements - Phase 11,983,273808,000000
Biocycle Farm Phase 3 (1)121,99886,000000
Line Biosolids Lagoon - Phase 23,122,1101,124,000000
Master Landscape Design &
Implementation for WPCF (2)48,52748,527000
Projects to be Carried Over to FY 09-10
Clarifier Improvements674,339180,000494,3390494,339
WWFMP Update386,926180,000206,9260206,926
Facilities Plan Engineering Services93,18980,00013,18960,77573,964
Influent Pumping and Headworks Exp15,885,28615,758,000127,2860127,286
Sodium Hypochlorite Conversion5,792,5862,400,0003,390,00003,390,000
Peak Flow Management Improvements (3)12,099,8585,000,0003,000,00003,000,000
Odorous Air Treatment - Phase 19,299,2007,567,0001,732,20001,732,200
Odorous Air Treatment - Phase 21,704,000600,0001,104,00001,104,000
Primary Sludge Thickening4,447,9842,000,0002,447,98402,447,984
Tertiary Filtration - Phase 113,894,5736,200,0007,694,57307,694,573
Effluent Reuse - Phase 13,315,496495,0002,820,49602,820,496
Effluent Reuse - Phase 25,152,000200,0004,952,00004,952,000
Line Biosolids Lagoon - Phase 3100,00050,00050,0003,100,0003,150,000
Newly Budgeted Projects for FY 10-11
2010 Partial Facility Plan Update221,000221,000
Increase Digestion Capacity500,000500,000
Waste Activated Sludge Thickening300,000300,000
Biosolids Force Main Rehab150,000150,000
TOTAL78,121,34542,776,52728,032,9934,331,77532,364,768
(1) - The Biocycle Farm Poplar Plantation Phase 3 Project is estimated to be under budget by $36,147.
(2) - The Landscape Design & Implementation for the WPCF project established the integrated conceptual design
It was funded by existing budgeted MWMC Capital Projects. Hereafter, implementation of the landscape
construction will likewise be funded through existing and approved project budgets.
(3) - The Peak Flow Management Project is estimated to be under budget by $4,099,984
Regional Wastewater Program FY 10-15 Five-Year CIP
The projects in the out years of the Regional Wastewater Program FY 10-15 Five-Year CIP are
based almost exactly on the programming of regional capital projects in the current adopted FY
09-14 CIP. Significant changes from the current CIP include:
Continuation of funding for the Facility Plan Engineering Services in FY 14-15, which
includes an adjustment for inflation.
Page 41 DRAFT FY 10-11 BUDGET AND CIP
Metropolitan Wastewater Management Commission Capital Improvement Program
Staff has continued, as in past CIPs, to organize the projects in the CIP based on categories that
illustrate the major functions they serve in the wastewater system. The classification system
groups capital projects in four main project categories as follows:
a. Biosolids Management,
b. Non-Process Facilities and Facilities Planning,
c. Conveyance Systems, and
d. Plant Facilities Improvements.
The above classifications of projects are used to organize projects in the summary table for the
FY 10-15 CIP in Exhibit 13, and to organize the CIP summary sheets that describe each project.
Page 42 DRAFT FY 10-11 BUDGET AND CIP
Metropolitan Wastewater Management Commission Capital Improvement Program
EXHIBIT 13
Regional Wastewater 5-Year Capital Programs
FY 10-11FY 11-12FY 12-13FY 13-14FY 14-15TOTAL
CAPITAL PROJECTS
Biosolids Management
Line Biosolids Lagoon - Phase III3,150,0003,150,000
Line Biosolids Lagoon - Phase IV100,0003,200,0003,300,000
Biosolids Force Main Rehab150,0001,350,0001,500,000
Non-Process Facilities and Facilities Planning
WWFMP Update206,926206,926
Facility Plan Engineering Services73,96467,00570,35573,87377,568362,765
2010 Facility Plan Update221,000221,000
Conveyance Systems
Influent Pumping & Headworks127,286127,286
Glenwood Pump Station Upgrade760,000760,000
Plant Performance Improvements
Clarifier Improvements494,339494,339
Sodium Hypochlorite Conversion3,390,0003,390,000
Peak Flow Management Improvements3,000,0003,000,000
Odorous Air Treatment I1,732,2001,732,200
Odorous Air Treatment II1,104,0001,104,000
Primary Sludge Thickening2,447,9842,447,984
Tertiary Filtration I7,694,5737,694,573
Effluent Reuse I2,820,4962,820,496
Effluent Reuse II4,952,0004,952,000
Effluent Reuse III6,542,0006,542,000
Waste Activated Sludge Thickening300,0003,594,0003,894,000
Increase Digestion Capacity500,0008,100,0008,600,000
TOTAL CAPITAL PROJECTS
32,364,7682,277,00521,506,35573,87377,56856,299,569
ASSET MANAGEMENT
Equipment Replacement105,5792,068,407742,8541,545,682457,9204,920,442
Major Rehab50,0001,955,500418,425370,000520,0003,313,925
Major Capital Outlay933,903204,4291,138,332
TOTAL ASSET MANAGEMENT
155,5794,023,9072,095,1822,120,111977,9209,372,699
TOTAL CAPITAL IMPROVEMEN
32,520,3476,300,91223,601,5372,193,9841,055,48865,672,268
The FY 10-15 five-year CIP for Regional Capital Projects amounts to $56,299,569. When
Asset Management Capital Program planned expenditures (administered by the City of Eugene)
are added in, the total five-year CIP comes to $65,672,268. Information regarding each capital
project in the FY 10-15 CIP is included in the CIP summary sheets included in this document.
This includes those projects in the first year of the CIP, which constitute the FY 10-11 Capital
Budget.
Each summary sheet provides a description of the project, the project purpose and what is
driving the timing of the project, the funding schedule, and the expected final cost and cash
Page 43 DRAFT FY 10-11 BUDGET AND CIP
Metropolitan Wastewater Management Commission Capital Improvement Program
flow for the project. For those projects that are in progress, a short status report is included on
the summary sheet.
Regional Wastewater Asset Management Capital Program
Another category of projects in the MWMC Capital Budget are those capital projects and
capital purchases that are administered by the City of Eugene for MWMC, and which provide
for major reconstruction, replacement, repairs, and purchases necessary to maintain
functionality, lifespan, and effectiveness of existing facility assets. We call this the Asset
Management Capital Program. Three sub-categories are included in the Asset Management
category:
a.Equipment Replacement –
b.Major Rehabilitation –
c.Major Capital Outlay –
FY 10-11 Asset Management Capital Program Budget
Equipment Replacement Program - Budget
The FY 10-11 Capital Programs budget includes $105,579 in Equipment Replacement
purchases, which are identified on the table below.
Equipment Replacement Projects
Project Description FY 10-11 Proposed
Budget
Septic Facility Controls/Communication$20,000
Pressure Washer – Biosolids Dewatering $10,000
Computer Replacement $34,234
Fleet Replacement $41,345
Total$105,579
Septic Facility Controls/Communication – The septage receiving station’s control and
communication system is more than 13 years old. The typical replacement schedule for
electronic controls and communication devices range between 5-10 years. This replacement
project will improve the reliability of the equipment used to track and process septage hauler
information for record requirements and billing purposes.
Pressure Washer – The pressure washer for the biosolids dewatering equipment has been
service for 10 years and has reached the end of its useful lift. The pressure washer is used on a
daily basis during the biosolids dewatering operations to wash down process equipment.
Page 44 DRAFT FY 10-11 BUDGET AND CIP
Metropolitan Wastewater Management Commission Capital Improvement Program
Computer replacement includes scheduled replacement of personal computers and laptop
computers. Fleet replacement consists of replacement of one farm tractor and one trailer
mounted pressure washer.
Major Rehabilitation Program - Budget
The FY 10-11 Capital Programs budget includes $50,000 for Major Rehabilitation projects,
which are identified on the table below.
Major Rehabilitation Projects
Project Description FY 10-11 Proposed
Budget
Operations/Maintenance Building $50,000
Improvements
Total$50,000
Operations Building Improvements – This expenditure will go towards miscellaneous repairs
and renovation to maintain and improve the functionality of the Operations and/or Maintenance
Building for staff. Business functions and staff size have changed substantially for office and
technical staff since original construction of the Operations and Maintenance buildings.
Rehabilitation and functionality improvements help to delay the need for additional floor space.
Major Capital Outlay - Budget
There is no Major Capital Outlay in the FY 10-11 budget.
Summary of FY 10-11 Asset Management Capital Budget
FY 10-11 Proposed
Category of Capital Expense
Budget
Equipment Replacement 105,579
Major Rehabilitation $50,000
TOTAL$155,579
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Metropolitan Wastewater Management Commission Capital Improvement Program
LINE BIOSOLIDS LAGOONS – PHASE 3
Description:
Reline existing lagoons, Phase 3 at the Biosolids Management Facility (BMF).
Justification:
Existing clay lagoon liners are reaching the end of the material’s useful life. A new synthetic
liner will be installed in the lagoons. In Phase 1 and 2, the liner material of choice was high
density polyethylene. In the Phase 1 project implementation, the contractor installed the main
components for a new dredge lateral movement system for all four lagoons, for improved
operational safety and efficiency.
Project Driver:
MWMC proactively desires to improve the safety of BMF staff, improve operational reliability of
the facultative lagoons, and ensure DEQ compliance related to groundwater protection.
Project Trigger:
Implement the phased work based on the 2005 work plan schedule provided from MWMC to
DEQ. Continue to monitor the effectiveness of the first and second phase of the lagoon lining
projects. MWMC anticipates rehabilitating all four existing lagoons and monitor the new liner
improvements.
Project Type:
100% Rehabilitation
Estimated Project Cost:
$3,200,000
Expected Cash Flow:
FY 09-10 = $50,000; FY 10-11 = $1,480,000; FY 11-12 = $1,670,000
2009-
2010 Est.
Prior
Expenditure/Category:YearsAct.2010-112011-122012-132013-142014-15Total
Design/Construction 0$50,000 $3,150,000 000$3,200,000
Other 00000000
Total Cost $0$50,000 $3,150,000 $0$0$0$0$3,200,000
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Metropolitan Wastewater Management Commission Capital Improvement Program
LINE BIOSOLIDS LAGOONS – PHASE 4
Description:
Reline existing lagoons, Phase 4 at the Biosolids Management Facility (BMF).
Justification:
Existing clay lagoon liners are reaching the end of the material’s useful life. A new synthetic liner
will be installed in the lagoons. In Phase 1 and 2, the liner material of choice was high density
polyethylene. In the Phase 1 project implementation, the contractor installed the main
components for a new dredge lateral movement system for all four lagoons, for improved
operational safety and efficiency.
Project Driver:
MWMC proactively desires to improve the safety of BMF staff, improve operational reliability of
the facultative lagoons, and ensure DEQ compliance related to groundwater protection.
Project Trigger:
Implement the phased work based on the 2005 work plan schedule provided from MWMC to
DEQ. Continue to monitor the effectiveness of the first and second phase of the lagoon lining
projects. MWMC anticipates rehabilitating all four existing lagoons and monitor the new liner
improvements.
Project Type:
100% Rehabilitation
Estimated Project Cost:
$3,300,000
Expected Cash Flow:
FY 11-12 = $100,000; FY 12-13 = $1,540,000; FY 13-14 $1,660,000
2009-10
Est.
Prior
Expenditure/Category:YearsAct.2010-112011-122012-132013-142014-15Total
Design/Construction 000100,000 $3,200,000 00$3,300,000
Other 00000000
Total Cost $0$0$0$100,000 $3,200,000 $0$0$3,300,000
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Metropolitan Wastewater Management Commission Capital Improvement Program
REPAIR AND/OR PARTIAL REPLACEMENT OF BIOSOLIDS FORCE MAIN
Description:
Investigate repair and/or replace sections of the biosolids force main (piping system)
where struvite deposits reduce the pipe diameter and cannot be removed by an acid
washing method. The piping system connects the Water Pollution Control Facility (WPCF)
to the Biosolids Management Facility (BMF). A project estimate is $1.5 million that may
require additional funding due to a lack of any existing helpful investigation technology.
Justification:
Project will rehabilitate portions of the existing biosolids conveyance system.
Project Driver:
Maintain system functionality of the biosolids conveyance system.
Project Trigger:
Functionality issues within the existing pipeline.
Project Type:
100% Rehabilitation
Estimated Project Cost:
$1,500,000
Expected Cash Flow:
FY 10-11 = $110,000; FY 11-12 = $1,390,000
Prior2009-10
Expenditure/Category:YearsEst. Act.2010-112011-122012-132013-142014-15Total
Design/Construction 00$150,000 $1,350,000 $0$00$1,500,000
Other 00000000
Total Cost $0$0$150,000 $1,350,000 $0$0$0$1,500,000
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Metropolitan Wastewater Management Commission Capital Improvement Program
WET WEATHER FLOW MANAGEMENT PLAN (year 2010 and beyond)
Description:
Evaluate collection system flow monitoring data collected since the original WWFMP
(Wet Weather Flow Management Plan) which was finalized in 2000. Update and run
collection system model and confirm (revise) the 2004 MWMC Facility Plan
recommendations. Continue evaluating the wastewater private lateral systems, and
investigate ways to encourage or require private lateral repairs. This project is a
combination of two MWMC Facility Plan projects – one for the update of the 2001
WWFMP report, and one for further support and development of a private lateral
program.
Status:
The collection system model update portion of the work has been completed. An
ongoing planning effort is underway to create a new WWFMP document with
recommendations and projects.
Project Driver:
Continue to monitor the wastewater collection system and refine work programs to
reduce infiltration and inflow (I/I) that is caused by wet weather storm events.
Wastewater private lateral infiltration remains an important issue to monitor and address.
Project Trigger:
Scheduled update (WWFMP work programs) and address regulation requirements.
Improvement
SDC Eligibility:
11%
Estimated Project Cost
: $532,000
Expected Cash Flow:
FY 05-06 = $6,028; FY 06-07 = $86,895; FY 07-08 = $42,589; FY 08-09 = $9,562
FY 09-10 = $180,000, FY 10-11 = $157,000, FY 10-11 = $49,926
Prior2009-10
Expenditure/Category:YearsEst. Act.2010-112011-122012-132013-142014-15Total
Design/Construction 00000000
Other $145,074 $180,000 $206,926 0000$532,000
Total Cost $145,074 $180,000 $206,926 $0$0$0$0$532,000
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FACILITY PLAN ENGINEERING SERVICES
Description:
Engineering services for analysis, project definition, cost estimating, and general
consultation regarding the 20-Year Facilities Plan.
Status:
This year, work continued to assist with overall coordination of utility needs for the
various projects in the capital program at the plant. In addition, consultant resources
were used to commission the new peak flow facilities.
Justification:
Projects were developed to varying levels of specificity in the 20-Year Facilities Plan and
there is an on-going need to have a consistent resource to help in further refining
projects and generally assisting with implementation of the plan. Another need
addressed by this resource is assurance that the new improvements maintain the overall
integrity of the plan in terms of treatment processes and hydraulics.
Project Driver:
Ongoing goal to efficiently follow and update the 20-Year Facilities Plan.
Project Trigger:
On-going need.
Estimated Project Cost:
$568,276 (Note: Staff anticipates continuation of the need for facility plan engineering
services in 2014-2015 and beyond. Therefore, $77,568 was added for FY 14-15, which
assumes 5% inflation annually)
Expected Cash Flow:
FY 06-07 = $50,000; FY 07-08 = $50,044; FY 08-09 = $25,467;
FY 09-10 = $80,000; FY 10-11 = $73,964; FY 11-12 = $67,005;
FY 12-13 = $70,355; FY 13-14 = $73,873; FY 14-15 = $77,568
PriorEst .Act.
Expenditure/Category:Years2009-102010-112011-122012-132013-142014-15Total
Design/Construction 00000000
Other $125,511 $80,000$73,964$67,005$70,355$73,873 $77,568 $568,276
Total Cost $125,511 $80,000$73,964$67,005$70,355$73,873 $77,568 $568,276
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Metropolitan Wastewater Management Commission Capital Improvement Program
2010 PARTIAL FACILITY PLAN UPDATE
Description:
Review of the Facilities Plan assumptions and costs. Consideration of new regulations,
information, and technology to modify the plan.
Justification:
Regulatory requirements and system data are not static and the plan may require course
correction to meet new needs.
Project Driver:
Ongoing goal to keep planning up to date.
Project Trigger:
Scheduled update.
Improvement
SDC Eligibility:
21%
Estimated Project Cost
: $221,000
Expected Cash Flow:
FY 10-11 = $221,000
Prior Est .Act.
Expenditure/Category:Years2009-102010-112011-122012-132013-142014-15Total
Design/Construction 00000000
Other 00$221,000 0$000$221,000
Total Cost $0$0$221,000 $0$0$0$0$221,000
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Metropolitan Wastewater Management Commission Capital Improvement Program
INFLUENT PUMPING IMPROVEMENTS AND HEADWORKS EXPANSION
Description:
This project provides influent pumping improvements and headworks expansion required
to accommodate the 2025 peak wet weather flow of 277 mgd. Major components
include: upgrades to the Willakenzie Pump Station, expansion of the headworks facilities
with new screening and grit removal equipment, a new Influent Pump Station at the
WPCF, improvements to the regional force main system at two off-site locations, and
landscaping. Due to the time critical nature of this project, it was delivered using a
Construction Manager/General Contractor (CM/GC) project delivery process.
Status:
Construction stage. The majority of the construction was completed in December 2009.
The work remaining in FY 10-11 is landscaping.
Justification:
Improved influent pumping and headworks hydraulic capacity are required to increase
total plant influent hydraulic capacity to 277 mgd (the forecasted 2025 peak flow) and to
meet redundancy requirements for pumping and screening.
Project Driver:
Ability to provide treatment to peak flows and 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.
Project Type:
100% Capacity
Improvement
SDC Eligibility:
38%
Estimated Project Cost
: $28,054,000
Expected Cash Flow:
FY 05-06 = $16,348;FY 06-07 = $376,293; FY 07-08 = $2,132,064;FY 08-09 =
$9,644,009; FY 09-10 = 15,758,000; FY 10-11 = $127,286
Expenditure/Category:Prior Years2009-10 Est. Act.2010-112011-122012-132013-142014-15Total
Design/Construction $12,168,714 $15,758,000 $127,286 $0$0$0$0$28,054,000
Other $0$0$0$0$0$0$0$0
Total Cost $12,168,714 $15,758,000 $127,286 $0$0$0$0$28,054,000
Page 52 DRAFT FY 10-11 BUDGET AND CIP
Metropolitan Wastewater Management Commission Capital Improvement Program
GLENWOOD PUMP STATION UPGRADE
Description:
Expand the MWMC Glenwood Pump Station capacity. The existing pump station is built
to be expandable in capacity when the need arises.
Justification:
Additional pumping capacity will be required at this MWMC pump station to handle
increasing flows in the Glenwood area of Springfield and the Laurel Hill area of Eugene.
Project Driver:
Keep up with capacity needs, maintain required pumping redundancy, and prevent
wastewater overflows.
Project Trigger:
Past regional wastewater collection system computer modeling has estimates that a
capacity increase will be needed. Staff is continuing to monitor wastewater flows to
determine the timing of when the pumping improvements are actually needed. The
timing will be impacted by the effectiveness of I/I removal in the contributing sewer
basins and the rate and type of development in this sewer basin.
Project Type:
100% Capacity
Improvement
SDC Eligibility:
38%
Estimated Project Cost:
$760,000
Expected Cash Flow:
FY 11-12 = $200,000; FY 12-13 = $560,000
Est. Act.
Expenditure/Category:Prior Years2009-102010-112011-122012-13 2013-142014-15Total
Design/Construction 000$760,000 000$760,000
Other 00000000
Total Cost $0$0$0$760,000 $0$0$0$760,000
Page 53 DRAFT FY 10-11 BUDGET AND CIP
Metropolitan Wastewater Management Commission Capital Improvement Program
CLARIFIER IMPROVEMENTS
Description:
Clarifier Improvements (originally Primary Clarifier Enhancements, Secondary Clarifier
thth
Enhancements and new 9 and 10 Secondary Clarifiers).
Status:
The MWMC clarifier construction work was completed by MKB Constructors (general
contractor). The construction contract included three milestones that relate to different warranty
timelines. As of December 16, 2009, staff is working with the MWMC legal team to address a
galvanizing issue (defective workmanship claim) related to the secondary clarifiers and
evaluating the performance requirements of the upgraded secondary clarifiers. Additional
follow up work is anticipated to address cathodic protection system upgrades.
Justification:
Enhancing the existing clarifiers will increase primary and secondary treatment capacity and will
maximize the facilities investment in existing infrastructure. Adding the two new clarifiers will
increase secondary treatment capability and increase ability to handle peak flows.
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 National Pollutant
Discharge Elimination System (NPDES) total suspended solids limits.
Project Trigger:
From the MWMC 2004 Facilities Plan, the trigger for this project is unacceptably high clarifier
surface overflow rates and wet weather flows.
Project Type:
100% Capacity – Primary Clarifier Enhancements
50% Capacity and 50% Performance – Secondary Clarifier Enhancements
thth
100% Capacity – 9 and 10 Secondary Clarifiers
Estimated Project Cost:
Revised budget for this project was $17.48 million. Estimated cost to complete is $15.58
million.
Expected Cash Flow:
FY 04-05 = $130,325; FY 05-06 = $1,511,663; FY 06-07 = $8,944,368;
FY 07-08 = $4,174,004; FY 08-09 = $151,657 09-10 = $180,000;
FY 10-11 = $494,339
2009-10
Expenditure/Category:PriorYearsEst. Act.2010-112011-122012-132013-142014-15Total
Design/Construction $14,912,831 $180,000 $494,339 0000$15,586,356
Other 00000000
Total Cost $14,912,017 $180,000 $494,339 $0$0$00$15,586,356
Page 54 DRAFT FY 10-11 BUDGET AND CIP
Metropolitan Wastewater Management Commission Capital Improvement Program
SODIUM HYPOCHLORITE CONVERSION
Description:
Convert the existing chlorine gas system to sodium hypochlorite for the base and wet weather
flows. Retain the existing chlorine contact basins for the disinfection process. Install new system
with capability for high rate disinfection of primary effluent diversion using dosages of sodium
hypochlorite into a new contact basin structure. The new contact basin has been split off of this
project and is now part of a different MWMC project (Peak Flow Management Improvements), so
the budget for that portion of the project has also been moved. Staff included upgrades of the
existing recreational vehicle (RV) wastewater dump station to accommodate boat wastewater
dumping in the construction bid documents for the sodium hypochlorite conversion project. The
boat wastewater dump modification was designed and grant funded by the Oregon State Marine
Board that the MWMC approved for implementation at the September 21, 2006 public meeting.
The recommended project budget below includes $80,000 allocated to the project for the boat
wastewater dump that is reimbursed by the State agency after construction is completed. Some
of the project funding will support the treatment plant landscape upgrades.
Status:
As of December 18, 2009, Emery and Sons Construction has completed most of the construction
work and is waiting on the delivery of a third chemical storage tank. The project team is actively
testing and starting up the new equipment and systems.
Justification:
Liquid sodium hypochlorite and sodium bisulfite system will replace the existing chlorine and sulfur
dioxide gas systems and increase the disinfection capacity from 175 mgd to 277 mgd. The high
rate disinfection of the primary effluent is a key component of the primary/secondary split
treatment, which is needed for meeting the peak flow capacity needs of the wastewater treatment
plant.
Project Driver:
Operator and community safety issues and meeting flow capacity requirements for peak flows.
Project Trigger:
Phasing with other related projects and the need to meet peak flow treatment requirements.
Project Type:
50% Capacity;50% Performance
Improvement
SDC Eligibility:
25%
Estimated Project Cost:
$7.8 million (part of the project money will support the treatment plant landscape
upgrades)
Expected Cash Flow:
FY 06-07 = $1,353; FY 07-08 = $594,520; FY 08-09 = $1,501,541;
FY 09-10 = $2,400,000; FY 10-11 = $2,200,000; FY 11-12 = $1,100,000 (construction,
landscape, administration, consultant services)
2009-10
Expenditure/Category:Prior YearsEst. Act.2010-112011-122012-132013-142014-15Total
Design/Construction $2,097,414 $2,400,000 $3,390,000 0000$7,887,414
Other 00000000
Total Cost $2,097,414 $2,400,000 $3,390,000 $0$0$0$0$7,887,414
Page 55 DRAFT FY 10-11 BUDGET AND CIP
Metropolitan Wastewater Management Commission Capital Improvement Program
PEAK FLOW MANAGEMENT IMPROVEMENTS
Description:
The Peak Flow Management project combines several project elements described in the
2004 Facilities Plan into one project. These are 1) the Parallel Primary/Secondary
Treatment project, 2) the Bankside Outfall project, 3) the Outfall Mixing Zone Study, and
4) the design and construction of the high rate disinfection basins, which was pulled out
of the Sodium Hypochlorite Conversion project and added to the Peak Flow
Management project. These project elements combine to provide the hydraulic
infrastructure necessary to convey the peak flow through the plant, split the flow into the
parallel primary and secondary treatment trains, provide additional disinfection capacity,
and discharge the treated flow in accordance with the 2004 Facilities Plan.
Status:
Construction stage. The majority of the construction was completed in December 2009.
The work remaining in FY 10-11 is landscaping.
Justification:
This project expands the peak wet weather treatment capacity to 277 mgd through flow
management techniques.
Project Driver:
DEQ requirement that the peak wet weather flow (5-year, 24-hour rain event) be treated
by the E/S WPCF and meet secondary effluent standards (diverted blended flow
receives equivalent of primary treatment).
Project Trigger:
Elimination of sanitary sewer overflows by the year 2010.
Project Type:
100% Capacity
Improvement
SDC Eligibility:
30.2%
Estimated Project Cost
: $20,872,000
Expected Cash Flow:
FY 06-07 = $28,913; FY 07-08 = $1,496,808; FY 08-09 = $11,346,006,
FY 09-10 = $5,000,000; FY 10-11 = $2,992,843; FY 11-12 = $7,157
2009-10
Expenditure/Category:Prior YearsEst. Act.2010-112011-122012-132013-142014-15Total
Design/Construction $12,871,727 $5,000,000 $3,000,000 $0$0$0$0$20,871,727
Other $0$0$0$0$0$0$0$0
Total Cost $12,871,727 $5,000,000 $3,000,000 $0$0$0$0$20,871,727
Page 56 DRAFT FY 10-11 BUDGET AND CIP
Metropolitan Wastewater Management Commission Capital Improvement Program
ODOROUS AIR TREATMENT – PHASE 1
Description:
Biofilters technology treatment for odors from primary clarifiers, expanded pretreatment
area and new influent pumping station. Includes the complete covering of the primary
clarifiers, which is additional improvements beyond the 2004 MWMC Facilities Plan
concept of covering only the weirs and launders in the clarifiers.
Justification:
Primary clarifiers are odor sources. Although the Facilities Plan indicated that most
odors are generated and can be captured at the weirs and launders of the clarifiers,
information from other treatment plants which have used this technology indicates that
the only effective means of odor control on the primaries would be complete coverage.
This change in concept has been communicated to the Commission. The expanded
pretreatment facilities and new influent pumping station will also be additional odor
sources that must be dealt with.
Status:
As of December 23, 2009, the project is in the construction phase. The odorous air
treatment project is currently collecting and treating air from the new pretreatment
system. The contractor anticipates receiving materials to start covering the primary
clarifiers in January of 2010.
Project Driver:
Maintain MWMC’s status as environmental stewards. Address neighborhood odor
complaints and community concerns regarding odors.
Project Trigger:
Coordination with the design of the pretreatment expansion and influent pumping
expansion and be on-line in coordination with construction of those facilities.
Project Type:
100% Performance
Improvement
SDC Eligibility:
26%
Estimated Project Cost
: $9.4 million
Expected Cash Flow:
FY 05-06= $2,295; FY 06-07 = $43,451: FY 07-08 = $384,152;
FY 08-09 = $1,104,902; FY 09-10 = $7,567,000; FY 10-11 = $1,732,200
2009-10
Expenditure/Category:Prior YearsEst. Act.2010-112011-122012-132013-142014-15Total
Design/Construction $1,534,800 $7,567,000 $1,732,2000000$10,834,000
Other 00000000
Total Cost $1,534,800 $7,567,000$1,732,200$0$ 0$ 0$ 0$10,834,000
Page 57 DRAFT FY 10-11 BUDGET AND CIP
Metropolitan Wastewater Management Commission Capital Improvement Program
ODOROUS AIR TREATMENT – PHASE 2
Description:
Provide covers over new Gravity Sludge Thickeners (primary sludge thickeners) and
convey odorous air to biofilters. As needed, expand biofilters to accommodate the
additional odor from new processes.
Justification:
Gravity Sludge Thickeners will be a significant source of odor if not controlled.
Status:
The Odorous Air Treatment Phase 1 project is including some design elements for
preparation of Phase 2 which will serve the new primary sludge thickeners. Coordination
will occur with the appropriate projects (new primary sludge thickeners).
Project Driver:
Maintain MWMC’s status as environmental stewards. Address neighborhood odor
complaints and community concerns regarding odors.
Project Trigger:
New construction of certain facilities requires odor control upgrades.Must be
coordinated with the construction of new Gravity Sludge Thickeners that are in the
design phase as of December 23, 2009.
Project Type:
100% Performance
Improvement
SDC Eligibility:
26%
Estimated Project Cost
: $1,704,000
Expected Cash Flow:
FY 09-10 = $500,000; FY 10-11 = $1,070,000; FY 11-12 = $134,000
Prior2009-10
Expenditure/Category:YearsEst. Act.2010-112011-122012-132013-142014-15Total
Design/Construction 0$600,000 $1,104,000 0000$1,704,000
Other 00000000
Total Cost 0$600,000 $1,104,000 0000$1,704,000
Page 58 DRAFT FY 10-11 BUDGET AND CIP
Metropolitan Wastewater Management Commission Capital Improvement Program
PRIMARY SLUDGE THICKENING
Description:
Thin primary sludge pumping and piping systems to gravity thickeners, install gravity
thickener system (covered for odor control), supernatant overflow pumping and piping,
thickened sludge piping/pumping to digesters. See Odorous Air Treatment for treatment
of odors.
Status:
As of December 21, 2009, the project is in the design development phase. HDR
Engineering is the MWMC consultant and they will be submitting a 30% level of design in
January of 2010 for project team review.
Justification:
Thicken sludge before the digester system and help keep the sludge blanket lower in
primary clarifiers to avoid washout of the sludge blanket during peak flow events.
Project Driver:
Meet class B biosolids requirements during peak two-week solids loading event with all
three existing digesters in service.
Project Trigger:
Availability of sludge thickening capacity is needed prior to next scheduled digester
cleaning (i.e., before 2013).
Project Type:
100% Capacity
Improvement
SDC Eligibility:
65%
Estimated Project Cost
: $4,498,000 (part of the project money will support the treatment plant landscape
upgrades).
Expected Cash Flow:
FY 07-08 = $9,730; FY 08-09 = $40,286, FY 09-10 = $2,000,000;
FY 10-11 = $2,430,000; FY 11-12 = $17,984 (administration, construction, landscape,
consultant services, etc.)
Prior2009-10
Expenditure/Category:YearsEst. Act.2010-112011-122012-132013-142014-15Total
Design/Construction $50,016 $2,000,000 $2,447,984 0000$4,498,000
0000000
Other 0
Total Cost $50,016 $2,000,000 $2,447,984 $0$0$0$0$4,498,000
Page 59 DRAFT FY 10-11 BUDGET AND CIP
Metropolitan Wastewater Management Commission Capital Improvement Program
TERTIARY FILTRATION - PHASE 1
Description:
The phased work program will install infrastructure/support facilities for 30 mgd of filters
for tertiary filtration of secondary treated effluent. The first phase/project only installs
filter system technology sufficient for 10 mgd of treatment. Future phases/projects will
install the remaining filter technology. Some of the project funding will support the
treatment plant landscape upgrades.
Justification:
Up to 10 mgd of filtration is required by 2010 to meet dry season mass limits, with the
need for filtration increasing to up to 30 mgd by the end of the planning period (2025).
The 2004 MWMC Facilities Plan proposes phasing filters on an as-needed basis.
Filtration provides high quality secondary effluent and potential level 4 reuse water.
Also, filtration is needed to assist with meeting wet season mass load requirements
during peak flow events.
Status:
As of December 17, 2009, the design was at the 90% development level and project
team continues to work on establishing a filter equipment price agreement that will be
assigned to a construction contractor.
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 effluent limits during peak
flow conditions.
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.
Improvement
SDC Eligibility:
42%
Estimated Project Cost
: $14,685,000 (Note: Part of the project money will support the treatment plant
landscape upgrades. Also, MWMC has received a state revolving fund (SRF) loan
for the tertiary filtration project)
Expected Cash Flow:
FY 07-08 = $236,186; FY 08-09 = $554,241; FY 09-10 = $6,200,000;
FY 10-11 = $7,694,573 (construction, landscape, administration, etc.)
Prior2009-10
Expenditure/Category:YearsEst. Act.2010-112011-122012-132013-142014-15Total
Design/Construction $790,427 $6,200,000 $7,694,573 0000$14,685,000
Other 00000000
Total Cost $790,427 $6,200,000 $7,694,573 0000$14,685,000
Page 60 DRAFT FY 10-11 BUDGET AND CIP
Metropolitan Wastewater Management Commission Capital Improvement Program
EFFLUENT REUSE - PHASE 1
Description:
This project is the first package of funding for effluent reuse to address thermal load
issues and for multiple environmental benefits. This project combines two projects
identified in the 2004 MWMC Facilities Plan; Level II Reuse at Seasonal Industrial Waste
and Level 4 Effluent Reuse Demonstration Projects. Project components may include
additional treatment, disinfection, pumping, pipeline, and distribution/irrigation systems.
The projects will be better defined as the planning for reuse continues and as markets
for reuse are identified.
Status:
Ongoing planning phase. The MWMC reached a settlement agreement on October 28,
2009 with the Department of Environmental Quality (DEQ) related to Willamette River
total maximum daily loads (TMDL) for temperature.
Justification:
Implements reuse so that thermal load is removed from the Willamette River and for
multiple environmental benefits.
Project Driver:
Expansion of effluent reuse programs. Address NPDES permit thermal load compliance
related to Willamette River total maximum daily loads (TMDL) temperature requirements.
Project Trigger:
Potential exceedance of NPDES thermal load limit.Identification of water needs for
potential clients.
Project Type:
100% Performance
Improvement
SDC Eligibility:
26%
Estimated Project Cost:
$3,325,000
Expected Cash Flow:
FY 06-07 = $7,000; FY 07-08 = $0;FY 08-09 = $2504; FY 09-10 = $495,000;
FY 10-11 = $2,200,000; FY 11-12 = $620,096
PriorEst. Act.
Expenditure/Category:Years2009-102010-112011-122012-132013-142014-15Total
Design/Construction $9,504 $495,000 $2,820,496 0000$3,325,000
Other 00000000
Total Cost $9,904 $495,000 $2,820,496 $0$0$0$0$3,325,000
Page 61 DRAFT FY 10-11 BUDGET AND CIP
Metropolitan Wastewater Management Commission Capital Improvement Program
EFFLUENT REUSE - PHASE 2
Description:
This project is identified as Level C Effluent Reuse at the Biocycle Farm in the 2004
MWMC Facilities Plan. Provide 1.5 mgd of Level 2 reuse water at the Biocycle Farm
and installation of dedicated reuse irrigation pipeline and microspray system. Total reuse
of 3.75 mgd in July and August. The project may change as planning progresses and
other opportunities for effluent reuse emerge.
Status:
Ongoing planning phase. The MWMC reached a settlement agreement on October 28,
2009 with the Department of Environmental Quality (DEQ) related to Willamette River
total maximum daily loads (TMDL) for temperature.
Justification:
Implements Level C reuse program to reduce the MWMC thermal load discharge into the
Willamette River.
Project Driver:
Expansion of effluent reuse programs. Address NPDES permit thermal load compliance
related to Willamette River total maximum daily loads (TMDL) temperature requirements.
Project Trigger:
Potential exceedance of NPDES thermal load limit. Identification of water needs for
potential clients.
Project Type:
100% Performance
Improvement
SDC Eligibility:
26%
Estimated Project Cost:
$5,152,000
Expected Cash Flow:
FY 09-10 = $200,000; FY 10-11 = $3,300,000; FY 11-12 = $1,652,000
PriorEst. Act.
Expenditure/Category:Years2009-102010-112011-122012-13 2013-14 2014-15Total
Design/Construction 0$200,000 $4,952,000 0000$5,152,000
Other 00000000
Total Cost $0$200,000 $4,952,000 $0$0$0$0$5,152,000
Page 62 DRAFT FY 10-11 BUDGET AND CIP
Metropolitan Wastewater Management Commission Capital Improvement Program
EFFLUENT REUSE - PHASE 3
Description:
This project is in the 2004 MWMC Facilities Plan project known as Permanent Level A
Reuse. It is to provide 2.5 mgd of permanent Level A reuse water to local greenspaces
and community areas. Project components may include additional treatment,
disinfection with UV system, pumping, pipeline, and distribution/irrigation systems. The
project will be better defined as the planning for effluent reuse continues and as markets
for reuse are identified.
Status:
Planning phase.
Justification:
Continue implementation of an effluent reuse program to reduce the MWMC thermal
load discharge into the Willamette River and for other environmental benefits.
Project Driver:
Expansion of effluent reuse programs. Address NPDES permit thermal load compliance
related to Willamette River total maximum daily loads (TMDL) temperature requirements.
Project Trigger:
Potential exceedance of NPDES thermal load limit.Identification of water needs for
potential clients.
Project Type:
100% Performance
Improvement
SDC Eligibility:
26%
Estimated Project Cost:
$6,542,000
Expected Cash Flow:
FY 12-13 = $500,000; FY 13-14 = $3,900,000; FY 14-15 = $2,142,000
PriorEst. Act.
Expenditure/Category:Years2009-102010-112011-122012-132013-142014-15Total
Design/Construction 0000$6,542,000 $00$6,542,000
Other 00000000
Total Cost $ 0 $ 0 $0$0$6,542,000 $0$0$6,542,000
Page 63 DRAFT FY 10-11 BUDGET AND CIP
Metropolitan Wastewater Management Commission Capital Improvement Program
WASTE ACTIVATED SLUDGE THICKENING
Description:
This project provides a third gravity belt thickener (GBT) and associated at-grade
building improvements. The project also includes landscaping.
Justification:
Provides additional capacity for Waste Activated Sludge (WAS) thickening and, along
with addition of primary sludge thickening, will help to eliminate the need for additional
digester capacity.
Status:
Planning stage with the exception of landscaping (in keeping with the 2004 Facilities
Plan landscaping budget allocations, funding from this project is being made available in
FY 10-11 to accommodate staging of the plant-wide integrated landscape plan).
Project Driver:
Additional capacity to provide WAS thickening with one unit offline at upper limit flow
projections. Nitrification required by the NPDES permit and increasing wastewater flows
and loads generates more WAS solids. Provide ability to conduct recuperative
thickening so that need for additional digestion volume can potentially be deferred.
Project Trigger:
Exceeding solids and hydraulic loading rate design criteria.The latest evaluations of
need for Waste Activated Sludge thickening indicates a need by about 2012 or later.
After the secondary treatment modifications are completed and operational for a time,
the timing of need for this project should be reevaluated.
Estimated Project Cost
: $3,901,000
Improvement
SDC Eligibility:
100%
Expected Cash Flow:
FY 06-07 = $7, 000; FY 08-09 = $0; FY 09-10 = $0; FY 10-11 = $200,000;
FY 11-12 = $100,000; FY 12-13 = $200,000; FY 13-14 = $1,100,000;
FY 08-09 = $2,294,000
Expenditure/Category:Prior Years2009-10 Est. Act.2010-112011-122012-132013-142014-15Total
Design/Construction $7,000 $0$300,000 $0$3,594,000 $0$0$3,901,000
Other $0$0$0$0$0$0$0$0
Total Cost $7,000 $0$300,000 $0$3,594,000 $0$0$3,901,000
Page 64 DRAFT FY 10-11 BUDGET AND CIP
Metropolitan Wastewater Management Commission Capital Improvement Program
INCREASE DIGESTION CAPACITY
Description:
Installation of a fourth conventional high rate digester for continued production and
expanded production of Class B biosolids.
Justification:
Continue to meet the requirements for Class B digestion with the ability to take one
digester out of service for cleaning.
Project Driver:
This project addresses the need for more anaerobic digestion capacity. In the 2004
MWMC Facilities Plan, an option was identified to also change the existing digestion
method in order to produce Class A biosolids. This option was to be considered as a
strategy to secure a wider range of beneficial end-use options in the case that that
flexibility was needed for beneficial reuse. Since that time, MWMC has taken effective
steps to expand the ability to handle Class B biosolids through the construction and
expansion of the Biocycle Poplar Plantation, and through working with other end users.
Also, studies have shown that the current solids handling system will actually produce a
Class A product because of the extended storage time available for biosolids in the
lagoons at the biosolids handling facility. The digestion capacity issue will be influenced
by several operational factors including the effectiveness of new primary sludge
thickening and expanded WAS thickening processes, as well as digester cleaning
protocols and schedules. Observation over the next several years is required prior to
making a decision on when the expanded digestion facilities will be needed. A restudy
of the anaerobic digestion system function and capacity should be undertaken prior to
moving forward with this digestion expansion project. This study can be conducted as
part of the Facilities Plan Engineering Services contract with CH2M HILL.
Project Trigger:
The trigger for design and construction of new digestion facilities will depend on the
findings of the digestion system capacity and process alternatives study, which will be
started in FY 2011 under the continuing Facilities Plan Engineering Services contract.
Improvement
SDC Eligibility:
54%
Estimated Project Cost
: $8,600,000
Expected Cash Flow:
FY 10-11 = $249,000; FY 11-12 = $251,000; FY 12-13 = $3,782,000
FY 13-14 = $4,318,000
Prior2009-10
Expenditure/Category:YearsEst. Act.2010-112011-122012-132013-142014-15Total
Design/Construction $0$0$500,000 $0$8,100,000 $0$0$8,600,000
Other $0$0$0$0$0$0$0$0
Total Cost $0$0$500,000 $0$8,100,000 $0$0$8,600,000
Page 65 DRAFT FY 10-11 BUDGET AND CIP