5.2. ERMUSR 09-13-2016 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 13, 2016 5.2
SUBJECT:
2017 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 2017 budget
process. The first cut of the capital budget portion of the 2017 budget has been completed for
commission review. The capital budget may change as the complete 2017 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 2017 are Territory Acquisition costs,
replacing pickup truck#31, a new substation, and construction/renovation prep for 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 2017 are the sandblasting and painting of
the filter for well #4, construction/renovation prep of the field services facilities, and the
replacement of pickup trucks #25 and#26.
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. A
notable item for 2017 is the addition of an electric vehicle charging station.
Additional information on the vehicle evaluations is available upon request.
ACTION REQUESTED:
No action requested.
ATTACHMENTS:
• 2017 Electric Department Capital Budget
• 2017 Electric Department Capital Projects Time Schedule
• 2017 Water Department Capital Budget
• 2017 Water Department Capital Projects Time Schedule
• 2017 Administration and Technical Services Departments Capital Budgets
• 2017 Conservation Improvement Program Budget
VINS PONERED BY
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Elk River Municipal Utilities
2017 Electric Department Capital Budget
Capital Construction Projects-Non-Recurring Normal Distribution, Feeders,and Substations
Priority Cost Description
$ 100,000 Rebuild Sandpiper Estates
$ 150,000 Feeder 42 underbuild
$ 700,000 Power Plant Sub Relocation&Sitework
$ 150,000 Area 2 rebuild
$ 75,000 Area 3&4 prep
$ 750,000 Area 5&6 prep
$ 1,100,000 Waco II Substation
Subtotal $ 3,025,000
Capital Construction Projects-Recurring
Cost Description
$ 200,000 Transformers and Meters
$ 250,000 New Development Distribution Installation
$ 50,000 Ongoing OH Equip Replacement(Poles,Switches,Cut-Outs)
$ 100,000 Ongoing URD Equip Replacement(Switches,J-Boxes,Fuse Pads)
$ 20,000 Street Lighting Replacement
$ 500 Territory Acquisition-Loss of Revenue payment(1991 contract)
$ 345,000 Territory Acquisition-Loss of Revenue payment(2015 contract-Area 1 first-pmt 2017) Reserves
$ 450,000 Future Territory Acquisition(Area 3&4 Plant) Reserves
$ - Additional Feeders
Subtotal $ 1,415,500
Administration Noteworthy Non-Recurring Expenses
Cost Description
$ 7,500 AEDs in bucket trucks
Subtotal $ 7,500
Capital Equipment Needs
Cost Description
$ 8,000 Laptop Computers,Software,Accessories
$ 17,000 Barcoding software&equipment
$ 2,000 SCADA equipment
Replace Digger Truck#10 with new 2018 $ 250,000
Replace Bucket Truck#21 with new 2018 $ 250,000
$ 12,800 Jackhammer and Tamper attachment for Mini-excavator share with water dept
$ 45,000 Pickup replace Unit#31 and add liftgate
Field Services Building addition ?years 80/20% Bond$5,000,000
$ 55,200 80%share of Administration and Technical Services
Subtotal $ 140,000
Total $ 4,588,000
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Elk River Municipal Utilities
2017 Water Department Capital Budget
Water Capital Construction Needs
Cost Description
$ - Water Main Construction
$ 70,000 Fitter/Sandblast Well 4
$ 40,000 Well 9 Rehabilitation
$ 100,000 Facility Repair
Subtotal $ 210,000
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
Jackson Water Tower $90,000 reserves
Subtotal $ 80,500
Capital Equipment Needs
Cost Description
$ 40,000 Pickup Truck-replace#26
$ 40,000 Pickup Truck-replace#25
$ 3,200 Jackhammer and Tamper attachment for Mini-excavator share with electric dept
$ 13,800 20%share of Administration and Technical Services
Subtotal $ 97,000
Total $ 387,500
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Elk River Municipal Utilities
2017 Administration and Technical Services Departments Capital Budgets
Administration Capital Equipment Needs
Cost Description
$ 7,000 Computer, Software,Accessories-Upgrades
Subtotal $ 7,000
Administration Noteworthy Non-Recurring Expenses
Cost Description
$ 5,000 Office Furniture
$ 500 printers/scanners
Subtotal $ 5,500
Total $ 12,500
Technical Services Capital Equipment Needs
Cost Description
$ 7,000 Computers, Software,Accessories-Upgrades
$ 32,000 Itron MV-90 Software to replace outdated metering data software
Diesel Engines Emission Retrofit $ 350,000 Currently designated as emergency standby,
$ 20,000 Diesel Plant to run on Natural gas.
$ 5,000 5 USER Arch GIS Online Account
Subtotal $ 64,000
Technical Services Noteworthy Non-Recurring Expenses
Cost Description
$ 5,000 desk for office
Subtotal $ 5,000
Total $ 69,000
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