5.2. ERMUSR 09-11-2012 44h
Elk River
Municipal Utilities UTILITIES COMMISSION MEETING
TO: FROM:
Elk River Municipal Utilities Commission Troy Adams, P.E. —General Manager
John Dietz—Chair
Daryl Thompson—Vice Chair
Al Nadeau—Trustee
MEETING DATE: AGENDA ITEM NUMBER:
September 11, 2012 5.2
SUBJECT:
2013 Budget: Capital Project Projections, Capital Purchases and Equipment, and the
Conservation Improvement Program
BACKGROUND:
In preparation for submittal in November, Staff continues to work through the 2013 budget
process. The first cut of the capital budget portion of the 2013 budget has been completed for
commission review. The capital budget may change as the complete 2013 budget is assembled
and when the wholesale power costs, rate changes, and cash flow become more definite.
DISCUSSION:
Attached is the following information for your review:
1. Electric Department Capital Budget—This includes large non-recurring capital
construction projects, recurring capital construction projects and asset preservation, and
capital equipment purchases. Notable items for 2013 are a substation power transformer
replacement, a bucket truck, and a dump-truck.
2. Electric Department Projects Time Schedule 10-year Projection—This highlights large
non-recurring capital construction projects, recurring capital construction projects, and
asset preservation.
3. Water Department Capital Budget—This includes large non-recurring capital
construction projects, recurring capital construction projects and asset preservation, and
capital equipment purchases. Notable items for 2013 are the sandblasting and painting of
the Freeport Water Tower and water main installation coinciding with the City of Elk
River's street improvement projects.
4. Water Department Project Time Schedule—This highlights large non-recurring capital
construction projects, recurring capital construction projects, and asset preservation.
Inn Page 1 of 2 INATUR 1
Rellabl99 ovld rF P O W E R E D T o S E R V F
Power Vrovitler
5. Technology Services and Administrative Capital Budgets—This includes capital
equipment purchases as well as some noteworthy non-recurring expenses purchases.
Notable items for 2013 included a possible emission retrofit for the Diesel Power Plant
and the purchase of two vehicles.
6. Conservation Improvement Program (CIP) Budget—This includes detailed information
about the cost of the specific programs as well as the historic participation numbers.
Additional information on the vehicle evaluations is available upon request.
ACTION REQUESTED:
No action requested.
roinE1 11 Page 2 of 2 NATURE
Povi�eblPe Pub ' POWERED To SERVE
Elk River Municipal Utilities
2013 Electric Department Capital Budget
Capital Construction Projects -Non-Recurring Normal Distribution, Feeders,and Substations
Priority Cost Description
$ 100,000 Rebuild River Ranch
$ - Rebuild Sandpiper Estates delayed 2014
$ 100,000 Rebuild Riverview Heights Front lot line
$ 70,000 Co Rd 30 Rebuild Troy&Union Streets
$ 70,000 Rebuild GRE drive
$ 250,000 Feeder 94 Rebuild
$ 200,000 Triple Deck Feeders 93, 94, 95 Underground
$ 100,000 Feeder 42 and 71 Feeder Tie
$ 50,000 Country Crossing Ill
$ 1,250,000 North Substation
Subtotal $ 2,190,000
Capital Construction Projects-Recurring
Cost Description
$ 200,000 Transformers and Meters
$ 150,000 New Development Distribution Installation
$ 50,000 Ongoing OH Equip Replacement(Poles, Switches, Cut-Outs)
$ 250,000 Ongoing URD Equip Replacement(Switches, J-Boxes, Fuse Pads)
$ 12,000 Street Lighting Replacement
$ 8,000 Territory Acquisition-compensation on future customers 10 yrs pmt
$ 12,000 Painting poles to extend life
$ - Additional Feeders
Subtotal $ 682,000
Administration Noteworthy Non-Recurring Expenses
Cost Description
$ 20,000 Mapping Consultant
Subtotal $ 20,000
Capital Equipment Needs
Cost Description
$ 7,500 Laptop Computers, Software,Accessories
$ 2,000 SCADA equipment
$ 65,000 Additional Dumptruck with plow attachment
$ 5,000 Lift gate for on-call truck
$ - Cable Plow-delayed 2014
$ 200,000 Replace Bucket Truck#11 with new
$ - Replace Bucket Truck#21 -delayed 2015
$ 15,000 T-12 Towmaster trailer for carrying wire, dirt, and transformers (to replace T-10 2010)
$ 4,000 Add-a-phase equipment
$ 14,000 Used forklift for inventory storage
Subtotal $ 312,500
Total $ 3,204,500
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Elk River Municipal Utilities
2013 Water Department Capital Budget
Water Capital Construction Needs
Cost Description
$ 200,000 Water Main Construction Railroad Dr and Jackson
$ 50,000 Re-casing of Well#2
$ 24,425 SCADA upgrade
$ 5,000 Meters/ERTs
$ 35,000 Jackson Water Tower
$ 20,000 Removal Booster Station
$ 7,500 High Zone Low Zone Conversion
$ 700,000 Freeport Tower sandblast/paint
Subtotal $ 1,041,925
Water Noteworthy Non-Recurring Expenses
Cost Description
$ 49,200 Miscellaneous Repairs&Maintenance
$ 25,000 Pressure Reducing Valves(High Zone Low Zone Conversion)
$ 20,000 Mapping Consultant
$ 10,000 Hydrants and Valves Maintenance
$ 24,000 Well#4 Cycled Pulling of Well
$ 5,000 Water Main Repair
$ 4,200 Computers/GIS/SCADA
Subtotal $ 137,400
Capital Equipment Needs
Cost Description
$ - Replace Pickup Truck#12 with new F250 delayed 2014
Subtotal $ -
Total $ 1,179,325
Elk River Municipal Utilities
Water Utility
Capital Projects(2013-2023)
Wells
Well 2
Rehab/Reconstruction 65,000 500,000
Pull Well 50,000
Well 3
Rehab/Reconstruction 100,000
VFD
Pull Well
Well4
Rehab/Reconstruction
Pull Well 24,000
Wells
Rehab/Reconstruction
Pull Well
Well 8
Rehab/Reconstruction
Pull Well
Liquid Chlorine Transition
Roof
Well 7
Rehab/Reconstruction
Pull Well
Well
Rehab/Reconstruction
Pull Well 24,000
Well 9
Rehab/Reconstruction
Pull Well 24 000
Construction of Filter Plant 9 1,000,000
General Well Maintenance 3,000 3,000 3,000 3,000 3,000
New Well Construction/Placehalder 25,000 25,000 25,000 25,000 25,000 25,000 25,000
(4)Well Dehumidifiers 6,000 3,000
Well Generators
Miscellaneous 10000 15,000 19000 15,000 15,000
Towers
Jackson Tower
Paint/Sandblast
Structural Mtc. 35,000
Gary St.Tower
Paint/Sandblast 4,500 1,225,500
Structural Mtc. 3,500
Freeport Tower
Paint/Sandblast 700,000 1,225,500
Structural Mtc. 3,500 4,500
Hillside Tower
Paint/Sandblast 800,000
Structural Mtc. 3,500
Foster St.Tower
Paint/Sandblast 150,000
Structural Mtc. 3,500
Placeholder 15,000 15,000 15,000 15,000 15,000
Swam
Rate Study(delayed)
Removal Booster Station 20,000 20,000
High Zone Low Zone Conversion 7,500
Water Main Construction 200,000 300,000 200,000 200,000 200,000 200,000 200,000
Water Main Repair 5,000 5,000 5000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000
klvemory/Equlpment
Meters/ERTs 5,000 5,000 5,000 5,000 5,000
HydrentsNalves 10,000 5,000 5000 5,000
Spin Dr./Equipment 3,000
Trucks 35,000 35,000 35,000
SCADA 24,425 5,000 5,000 5,000 5000
Computers/GIS 4,200 2000 2,000 2,000 2,000
Misc.
20%share of Admin&Tech budgets 8,000 8,000 8,000, 8,000 8,000 8,000 8,000 8,000 8,000 8,000 8,000
Less amounts budgeted as repairs and maintenance (49.200) (23.000) (37 000) (23.0001 (10 000) (20,0001 (8,000) (22 0001 (13.0001 (20.000) (7.0001
Total WATER CIP(2011 Dollars) 1,049,926 1,266,000_ 881,600 1,038,600 395,600 83,000 248,000 1,273,000 223,000 1,258,600 243,000
Inflated Dollars l 3% _1,113,885 1,382,300_ 992,138 1,201,588 473,442 102,080 314,169_1,580,978 330,094 1,937,403 374,087
1,113,865 1,382,300 992,136 1,201,588 473,442 102,080 314,159 1,660,976 330,094 1,937,403 374,087
63,940 117,300 110,838 185,088 75942 19,080 86,159 387,976 107,094 678,903 131,087
Assessments-5 yrs,7%)
Assessments-5 yrs,7%)
Assessments-5 yrs,7%)
Total Assessment Income 0 0 0 0 0 0 0 0 0 0 0
Notes:
Elk River Municipal Utilities
2013 Administration and Technical Services Departments Capital Budgets
Administration Capital Equipment Needs
Cost Description
$ 8,500 Computer, Software,Accessories- Upgrades
$ 35,000 Vehicle (Compass to CIP, add new vehicle for GM)
Subtotal $ 8,500
Administration Noteworthy Non-Recurring Expenses
Cost Description
$ 5,000 Website
$ 5,000 Scanner programming
$ 5,000 Inventory Software and Equipment
$ 2,000 Office Furniture
Subtotal $ 17,000
Total $ 25,500
Technical Services Capital Equipment Needs
Cost Description
$ 4,000 Computers, Software,Accessories-Upgrades
$ - Replace Pickup Truck#22-delayed 2014 or swapped
$ 200,000 Diesel Engines Emission Retrofit ($180,000 carried over from 2012)
$ 35,000 Replace Pickup Truck#17 with new F250
$ - Replace Pickup Truck#23 with new F250-delayed 2014
Subtotal $ 239,000
Technical Services Noteworthy Non-Recurring Expenses
Cost Description
Subtotal $ -
Total $ 239,000
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