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5.1. ERMUSR 09-10-2013 e Elk 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 10, 2013 5.1 SUBJECT: 2014 Budget: 10-Year 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 2014 budget process. The first cut of the capital budget portion of the 2014 budget has been completed for commission review. The capital budget may change as the complete 2014 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 2014 are a new feeder from 75 to 194th, replacing a bucket truck, and a cable plow. The Admin and Tech share of the budgets is a larger item this year with the new software. 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 2014 are a water main construction project for filter 9 and replacing a pickup truck. The Admin and Tech share of the budgets is a larger item this year with the new software. 4. Water Department Project Time Schedule—This highlights large non-recurring capital construction projects, recurring capital construction projects, and asset preservation. o Page 1 of 2 1111tero 1r NATURE Reliable Piovide� P ow eReo To 5 [RVe 47 5. Technology Services and Administrative Capital Budgets—This includes capital equipment purchases as well as some noteworthy non-recurring expenses purchases. Notable items for 2014 include the new software and the Landfill scheduled replacement of 3 engines. 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. r3Page 2 of 2 !POWERED ATURE Power orPovider POWERED To SERVE 48 Elk River Municipal Utilities 2014 Electric Department Capital Budget Capital Construction Projects-Non-Recurring Normal Distribution,Feeders,and Substations Priority Cost Description 4 $ 100,000 Rebuild River Ranch $ - Rebuild Sandpiper Estates delay 2015 $ 100,000 8 $ 75,000 Single Phase OH Baldwin and Line Ave 2 $ 300,000 New Feeder 75 to 194th 1 $ 100,000 Triple Deck Feeders 93,94,95 Underground 3 $ 100,000 Feeder 42 and 71 Feeder Tie 9 $ 50,000 Country Crossing III New Feeder to Court House delay 2015 $1,500,000 6 $ 25,000 Tescom Rebuild 7 $ 75,000 Rebuild Feeder 62 OH North of 33 10 $ 150,000 Rebuild Feeder 42 OH South of 33 to County garage 5 $ 200,000 Garage addition Subtotal $ 1,175,000 Capital Construction Projects-Recurring Cost Description $ 100,000 Transformers and Meters $ 200,000 New Development Distribution Installation $ 50,000 Ongoing OH Equip Replacement(Poles,Switches,Cut-Outs) $ 200,000 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 Future Territory Acquisition $ 12,000 Painting poles to extend life $ - Additional Feeders Subtotal $ 582,000 Administration Noteworthy Non-Recurring Expenses Cost Description $ 20,000 Mapping Consultant Subtotal $ 20,000 Capital Equipment Needs Cost Description $ 11,400 Laptop Computers,Software,Accessories $ 1,000 Lunchroom chairs $ 2,000 SCADA equipment Replace Digger Truck#10 with new delay 2016 $ 250,000 $ 200,000 Replace Bucket Truck#11 with new $ 107,000 Cable Plow-delayed from 2013 Replace Bucket Truck#21 with new 2015 $ 210,000 $ 37,000 Mini Excavator $ 80,000 Vactron $ 1,500 Concrete Saw $ 15,000 Wire Trailer (share with water department) $ 151,760 80%share of Admin and Tech budgets(excluding LFG engine replacement) Subtotal $ 606,660 Total $ 2,383,660 49 I I ! 1§611 §§§ 8 N N 8A w» ::g W �e8 N N N _ . «-- 88 88 88 88Q N O 00000000 S O. 8S4w8- °_�88 K '6'22 «, °gt Qi8 O N i S - N 2_ _ -. _ _ -..-y N 8000 - 008 °8 LL I6NW t9M 'NW N W t- I 8 8.888* 888 8 I N 8 0 I wlw2w� ,�� L W N - 88 t -- ----- oI�88g .888 8 2 88.8851 9,° 6" WW .4N 6,.- 01 8 WW NNW N I' _ _ -g. § g- I 8j888 .a 888 +8 g as `.ge8 8 IN I a �f s �� _ _ sl 8s8 1§ § °' I N N W „,49644 IIN Y O I , --_. 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W m m d o d=S Zly, 12c"- 2m,I 2 a m c To o 2= R c.o 8 0 2�t 3 c o x 0 m. 2 0 g w s 5 0 K K d o *in,l 0 g m 3 c a d °c i 2-9 V 188 2 y V m 9�.yy`9 0 ; LL E p o cd K9 t 02M ° ono- °. 2x20 dd'LL.3 0Z1g Ewl10'w ' o N 21 I C 2020 '°rrcga rcu u O 1 rc o$w _ i.,p¢,_ II' 0: IknOn¢ tmglaw YNNi°g',cowp241021oyIoIKLLotu. € od ' 18 i„ er 9 % m y y l LL y i LL , ,— ,t _ qV N P ii, p1 IO g'g 0 LL q N -o G 2,01 N N 073 X 0 C LL 1�IO GIN N S V'0 o d O C J m 9 m �...; OiC1 y9 1. i 0 WN OK'U'.LL' KKK LL�vU 2 O2'OKLL2U,ULL2rrIKKLL�U.0 HZOOQ k` rff I- 1 - l` + Met 2 414 e&41(4 r4 e e SlaI2 2Iais s t,is°ais°I2°k 83 8°I°h f4 214 SIR m m 2 Elk River Municipal Utilities 2014 Water Department Capital Budget Water Capital Construction Needs Cost Description $ 300,000 Water Main Construction Filter 9 project $ 150,000 Reclaim Backwash Water project $ 65,000 Re-casing of Well#2 $ 65,000 New Chemical and Flouride Feed Pumps $ 10,000 Meters/ERTs $ - New Well Construction $ 25,000 Roof Repair Well#5,General Well House maintenance Subtotal $ 615,000 Water Noteworthy Non•Recurring Expenses Cost Description $ 70,000 Repairs&Maintenance $ 10,000 Miscellaneous $ 5,000 Water Main Repair $ 6,500 Computers/GIS/SCADA $ 20,000 Auburn Tower sandblast/paint repair $ 35,000 Jackson Water Tower $ 10,000 Mapping Consultant $ 1,500 Generator $ 1,500 Concrete Saw $ 4,000 Line Tracer and Locator $ 1,000 Locator for Line Tracer Subtotal $ 164,500 Capital Equipment Needs Cost Description $ 35,000 Replace Pickup Truck#12 with new F250 $ 5,000 Leak Detector $ 37,940 20%share of Admin&Tech budgets (excluding LFG engine replacement) $ 5,000 SCADA Subtotal $ 82,940 Total $ 862,440 51 Elk River Municipal Utilities Water Utility Capital Projects(2014-2024) Wells Well 2 Rehab/Reconstruction 65,000 500,000 Pull Well Well 50.000 Well 3 Rehab/Reconstruction 100,000 vuC Pull Well Well 4 Re onstrudion Pull ll Well Well Wells Re onstructbn Pull ll Well Well Well 6 Rehab/Reconstruction Pull ll Well Well sax Liquid CMCdne Transition Roof Well? Rehab/Reconstruction Pull Well Well 8 Rehab/Reconstruction Pull Well 24,000 Well Re onstruction Pull ll Well Well 24,000 Other Construction of Filler Plant 2,Feed 9 3.500,000 New ClWellland Flouride Feed Pumps 65900 General Well Maintenance 3.000 3,000 3,000- 3,000 New Well Construction/Placeholder 25,000 25,000 25.000 25,000 25,000 25.000 25,000 (4)Well d0ers 20,000 3,000 Facility Repair 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 Well Generators 20,000 Miscellaneous 10,000 10,000 10,000 10.000 15.000 15,000 15.000 Towers Jackson Tower Structural Mts. Structural M(c. Gary M.Tower Pant/Sandblast 4,500 1,225.500 Structural Mto. Freeport Tower Paint/Sandblast 1,225,500 Structural Mtc. 3,500 4,500 Auburn Tower Paint/Sandblast 20.000 800,000 1,300,000 Structural ural Mt Mtc. 3,500 Johnson Tower Paint/Sandblast 300,000 Structural ural Mt c. Placeholder 15,000 15,000 15.000 15,000 System Rate Study(delayed) Removal Booster Station 20,000 High Zone Low Zone Conversion Water Main Construction 300,000 200,000 200,000 200,000 200,000 200,000 200,000 Reclaim Backwash Water protect 150,000 150,000 150,000 150,000 150,000 Water Main Repair 5,000 5,000 5.000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 Inventory/Equipment Meters/ERTs 10,000 10,000 10,000 10,000 10,000 10,000 5,000 5,000 5,000 5,000 5,000 Leak Dtector Hydrants/Valves 40,000 5,000 5,000 5,000 Leak Detector 5,000 Trucks 35,000 35,000 35,000 35,000 SCADA 5,000 5,000 5,000 5,000 5,000 CompulerslGlS 6,500 2,000 2,000 2,000 2,000 Misc. 20%share of Admin a Tech budgets 37,940 6,000 8,000 8,000 8,000 8,000 8,000 8,000 6,006 0,000 8,000 Less amounts budgeted as repairs and maintenance (100500) (47,000) (18,000) (10,000) (20,000) (8,000) (22,000) (13,000) (20.000) (7,000) (22,000) Less amounts from trunk funds (280.000 00 (100,000.00) (400,000.00) Total WATER CIP(2011 Dollars) 417,940 851,500 121,500 346,500 3,768,000 1,083,000 1,448,000 253,000 1,438,500 288,000 1,588,000 Inflated Dollars as 3% 877,045 128,899 378,830 4,240,917 1,255,494 1,7211,988 332,931 1,968,887- 381,448 2,321,023 0 877,045 128,899 378,630 4,240,917 1,255,494 1,726,968 332931 1,968,687 381,448 2,321923 -417,940 25,545 7,399 32,130 472,917 172,494 280,988 79,931 530,187 113,448 753,023 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 52 Elk River Municipal Utilities 2014 Administration and Technical Services Departments Capital Budgets Administration Capital Equipment Needs Cost Description $ 6,000 Computer, Software,Accessories-Upgrades $ 90,000 New company-wide software Subtotal $ 96,000 Administration Noteworthy Non-Recurring Expenses Cost Description $ 4,000 Website $ 6,000 Office Furniture Subtotal $ 10,000 Total $ 106,000 Technical Services Capital Equipment Needs Cost Description $ 8,000 Computers, Software,Accessories-Upgrades new elect tech hire computer incl $ 5,000 Office workspace for new elect tech hire $ 35,000 Replace Pickup Truck#22-delayed from 2013 $ - Diesel Engines Emission Retrofit Currently designated as emergency standby $ - Replace Pickup Truck#23 with new F250-delayed 2015 $ - Replace Pickup Truck#24 with new F250-delayed 2015 $ 35,000 New Pickup Truck for new Electric Technician delayed 2015? $ 625,000 Landfill scheduled replacement of 3 engines Subtotal $ 708,000 Technical Services Noteworthy Non-Recurring Expenses Cost Description $ 700 tools, pager, cell phone, etc for new position Subtotal $ 700 53