5.1. ERMUSR 09-08-2015 Elk River
Municipal Utilities UTILITIES COMMISSION MEETING
TO: FROM:
Elk River Municipal Utilities Commission Troy Adams, P.E. —General Manager
John Dietz—Chair
Al Nadeau—Vice Chair
Daryl Thompson—Trustee
MEETING DATE: AGENDA ITEM NUMBER:
September 8, 2015 5.1
SUBJECT:
2016 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 2016 budget
process. The first cut of the capital budget portion of the 2016 budget has been completed for
commission review. The capital budget may change as the complete 2016 budget is assembled
and when the wholesale power costs, rate changes, and cash flow become more definite.
DISCUSSION:
The following information is submitted 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 2016 are Territory Acquisition costs, a
new feeder to the Natures Edge Business Park, replacing dump truck#16, a potential new
substation and feeder for data center growth, and construction/renovation of the field
services facilities.
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 2016 are the construction of a new filter
plant for well#9 and construction/renovation of the field services facilities.
4. Water Department Project Time Schedule—This highlights large non-recurring capital
construction projects,recurring capital construction projects, and asset preservation.
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5. Technology Services and Administrative Capital Budgets—This includes capital
equipment purchases as well as some noteworthy non-recurring expenses.
6. Conservation Improvement Program (CIP) Budget—This includes detailed information
about the cost of the specific programs as well as the historic participation numbers.
Typically staff works with the city mechanics in performing a comprehensive vehicle assessment
for any vehicle being replaced. Due to work load and staffing level issues, this information was
not completed and will be provided at a future meeting prior to final budget approval in
December.
ACTION REQUESTED:
No action requested.
ATTACHMENTS:
• 2016 Electric Department Capital Budget
• 2016 Electric Department Capital Projects Time Schedule
• 2016 Water Department Capital Budget
• 2016 Water Department Capital Projects Time Schedule
• 2016 Administration and Technical Services Departments Capital Budgets
• 2016 Conservation Improvement Program Budget
Z`g
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97
Elk River Municipal Utilities
2016 Electric Department Capital Budget
Capital Construction Projects-Non-Recurring Normal Distribution,Feeders,and Substations
Priority Cost Description
2 $ 100,000 Rebuild River Ranch
$ 100,000 Rebuild Sandpiper Estates
3 $ 300,000 Feeder 42 underbuild
$ 75,000 Presidential Estates
$ 50,000 Country Crossing III
1 $ 700,000 Natures Edge Business Park Feeder Reserves
$ 700,000 Data Center Feeder Reserves
$ 1,100,000 Waco II Substation Reserves
Subtotal $ 3,125,000
Capital Construction Projects-Recurring
Cost Description
$ 200,000 Transformers and Meters
$ 200,000 New Development Distribution Installation
$ 50,000 Ongoing OH Equip Replacement(Poles,Switches,Cut-Outs)
$ 150,000 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
$ 800,000 Future Territory Acquisition Reserves
$ 15,000 Painting poles to extend life
$ - Additional Feeders
Subtotal $ 1,435,000
Administration Noteworthy Non-Recurring Expenses
Cost Description
Subtotal $ -
Capital Equipment Needs
Cost Description
$ 8,950 Laptop Computers,Software,Accessories
$ 2,000 SCADA equipment
Replace Digger Truck#10 with new 2017 $ 250,000
Replace Bucket Truck#21 with new 2017 $ 250,000
$ 95,000 Flatbed Truck for Bore Rig
$ 10,000 Plow for Payloader
$ 70,000 Replace VacTron
$ 35,000 Pickup replace Unit#24
$ 35,000 Pickup replace Unit#6
$ 5,000,000 Field Services Building addition ?years 80/20% Bond
$ 183,420 80%share of Administration and Technical Services (Excluding Landfill Expansion Project)
$ 240,000 Landfill Expansion Project ?2017
Subtotal $ 5,679,370
Total $ 10,239,370
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Elk River Municipal Utilities
2016 Water Department Capital Budget
Water Capital Construction Needs
Cost Description
$ - Water Main Construction
$ 1,500,000 Construction of Filter Plant 9
$ 140,000 Well 3
$ 100,000 Facility Repair
$ 40,000 Chemical Dosing Upgrades
$ 4,000 Well Dehumidifiers
$ 25,000 Install Air Relief Valve on 196th Circle
$ 30,000 Asset Management Software
Subtotal $ 1,839,000
Water Noteworthy Non-Recurring Expenses
Cost Description
$ 50,000 Repairs&Maintenance
$ 2,500 Leak Detection Survey
$ 3,000 Computers/GIS/SCADA
$ 10,000 Meters/ERTs
$ 15,000 Miscellaneous Tower Repairs/Maintenance
$ 90,000 Jackson Water Tower
$ 20,000 Gary St.Tower washing exterior
Subtotal $ 190,500
Capital Equipment Needs
Cost Description
$ 80,000 New Valve Exercising Machine
$ 45,855 20%share of Administration and Technical Services
Subtotal $ 125,855
Total $ 2,155,355
100
Projects 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Elk River Municipal Utilities
Water Utility
PP&E Budget(2015-2025)
Wells
Well 2
Well 3
Well Rehabilitation(Last Reconditioning 2004) 40,000'
( 9 )
Filter Sandblast/Paint 50,000
Well 4
Well Filter/Structure Rehabilitation io (Last Rehabilitation 50,000
Well Ren(Last Reconditioning 2013) 40,000
Filter Sandblast/Paint 50,000
Well 5
Reconditioning
Well Rehabilitation(Last t Re 2014) 40,000
Filter Sandblast/Paint 50,000
Well 6
Filter/Struct iii
Well Rehabilit.. Last R- 40,000
Well 7
Filter
Well R T 40,000
Well 8
25,000
40,000 100,000
Well 9
40,000 40,000
All Wells
Facility Repair 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000
Total Well Budget 190,000 240,000 240,000 240,000 190,000 190,000 165,000 190,000 250,000 150,000 190,000
Miscellaneous
Construction of Filter Plant 9 60,000 1,500,000
Chemical Dosing Upgrades 60,000 40,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000
Well Dehumidifiers 3,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000 4,000
Install Air Relief Valve on 196th Circle 25,000
Asset Management Software 30,000
Total Miscellaneous Budget 123,000 1,599,000 14,000 14,000 14,000 14,000 14,000 14,000 14,000 14,000 14,000
Towers
Jackson Tower
Paint/Sandblast 60,000 90,000
Structural Mtc.
Gary St.Tower
Paint/Sandblast 150,000
Wash Outside of Tower 20,000
Structural Mtc./Float Down 6,000 6,000 6,000
Freeport Tower
Paint/Sandblast
Wash Outside of Tower 20,000
Structural Mtc./Float Down 6,000 6,000
Auburn Tower
Paint/Sandblast 800,000
Wash Outside of Tower
Mtc./Float Down 5,000
Johnson Tower
Paint/Sandblast 500,000
Structural Mtc./Float Down 6,000
Miscellaneous Tower Maintenance 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000
Total Tower Budget 221,000 125,000 15,000 535,000 21,000 821,000 15,000_ 15,000 31,000 21,000 21,000
S stem
Rate Study(delayed)
Removal Booster Station 20,000
Water Main Construction _ 25,000 200,000 200,000 200,000 200,000 200,000
Water Main Repair 25,000 50,000 50,000 50.000 50,000 50,000 50,000 50,000 50,000 50,000 50,000
Total System Budget 50,000 52,500, 252,500 72,500 252,500 52,500 252,500 52,500 252,500 52,500 252,500
Inventory/Equipment
Meters/ERTs 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000
Trucks 35,000 40,000 40,000
Dewatering Pump and Accessories 5,000
Locator 1,000
New Valve Exercising Machine 80,000
Mower and Trailer(Landscaping Contract Ends 2016) 20,000
SCADA 25.000 25,000
Computers 4,500 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000
Total Inventory/Equipment Budget i 80,500 93,000 73,000 50,000 13,000 38,000 13,000 10,000 13,000 13,000 13,000
Deductions
Less amounts from other funds;trunk,reserves,bonds) 60,000 1,500,000.00
Total$$$Less Trunk Funds and Bonding 604,500 609,500 594,500 911,500 490,500 1,115,500 459,500 281,500 560,500 250,500 490,500
Difference of above 5,000 -15,000 317,000 -421,000 625,000 -656,000 -178,000 279,000 -310,000 240,000
Total$$$ 664,500 2,109,500 594,500 911,500 490,500 1,115,500 459,500 281,500 560,500 250,500 490,500
Inflated Dollars @ 3% 649,626 1,025,901 568,624 1,331,965 604,671 385,252 797,766 370,801 726,060
101
Elk River Municipal Utilities
2016 Administration and Technical Services Departments Capital Budgets
Administration Capital Equipment Needs
Cost Description
$ 7,000 Computer,Software,Accessories-Upgrades
$ 40,375 New in house server for NISC
Subtotal $ 47,375
Administration Noteworthy Non-Recurring Expenses
Cost Description
$ 5,400 Office Furniture
$ 1,500 printers/scanners
$ 10,000 City Hall/Utility Fitness Room
Subtotal $ 16,900
Total $ 64,275
Technical Services Capital Equipment Needs
Cost Description
$ 6,500 Computers, Software,Accessories-Upgrades
$ 32,000 Itron MV-90 Software to replace outdated metering data software
Diesel Engines Emission Retrofit $ 400,000 Currently designated as emergency standby,
$ 80,000 Omicron Test Set
$ 35,000 Vehicle for Field Engineer
$ 240,000 Landfill expansion project
Subtotal $ 393,500
Technical Services Noteworthy Non-Recurring Expenses
Cost Description
$ 2,000 tools,etc for new position
$ 5,000 desk for new position
$ 4,500 plotter lease
Subtotal $ 11,500
Total $ 405,000
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