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HomeMy WebLinkAboutItem 16 Ratification of the Metropolitan Wastewater Management Commission (MWMC) FY 2014-2015 Regional Wastewater Program Budget and Capital Improvement Program (CIP) AGENDA ITEM SUMMARY Meeting Date: 5/5/2014 Meeting Type: Regular Meeting Staff Contact/Dept.: Matt Stouder/DPW Staff Phone No: 541-726-1006 Estimated Time: 10 Minutes S P R I N G F I E L D C I T Y C O U N C I L Council Goals: Provide Financially Responsible and Innovative Government Services ITEM TITLE: RATIFICATION OF THE METROPOLITAN WASTEWATER MANAGEMENT COMMISSION (MWMC) FY 2014-15 REGIONAL WASTEWATER PROGRAM BUDGET AND CAPITAL IMPROVEMENT PROGRAM (CIP). ACTION REQUESTED: Adopt or not adopt a motion ratifying the FY 2014-15 Regional Wastewater Program Budget and Capital Improvement Program (CIP). ISSUE STATEMENT: As provided for in the MWMC Intergovernmental Agreement (IGA), the City of Springfield, the City of Eugene, and Lane County, as governing bodies, must ratify the annual MWMC’s Budget and CIP. ATTACHMENTS: 1. The Regional Wastewater Program Budget and Capital Improvements Program (CIP) for FY 2014-15, as approved by MWMC DISCUSSION/ FINANCIAL IMPACT: The FY 14-15 Regional Wastewater (RWP) Budget and CIP document was approved by the MWMC on April 11, 2014. In preparing and reviewing the Budget and CIP, the MWMC convened three work sessions and a public hearing prior to taking action to adopt the FY 14-15 MWMC Budget. The FY 14-15 Budget funds all operations, administrative services, and capital projects planned for the Regional Wastewater Facilities. The approved operating budget is $16.68 million, which includes a total increase of 2.0% ($329,854) in FY 14-15, when compared to the prior year. The CIP outlines and describes the capital projects planned for the next five years. The FY 14-15 RWP Budget and CIP document reflects a continued focus on the completion of facilities upgrades and expansion, and operations and maintenance activities to provide wastewater treatment for a growing community through 2025 in a manner that protects the public’s health and safety, and the environment. The Commission took a corresponding action to adopt a 3.5% increase in regional wastewater user charges in order to fully fund the Budget and CIP. On May 5, 2014 the City Council will hold a public hearing on the FY 14-15 regional rates within the City. Following the public hearing, Council is scheduled to adopt a resolution to set the FY 14-15 regional user fee rates within the City of Springfield. In accordance with the IGA, the MWMC contracts with the City of Eugene for operations and maintenance services, and with the City of Springfield for administrative services. The attached budget document provides regional program and budget summaries as well as detailed budgets for services provided by Eugene and Springfield. The budget document also provides information about how the RWP activities are driven by the MWMC established goals and performance measures. The FY 14-15 RWP Budget and CIP must be approved by the MWMC and ratified by Lane County, the cities of Eugene and Springfield, and then finally adopted by the MWMC, prior to the beginning of the next fiscal year (July 1, 2014). The Eugene City Council is scheduled to ratify the MWMC Budget and CIP on May 12, 2014, and the Board of County Commissioners is scheduled to ratify the MWMC Budget and CIP on May 20, 2014, with MWMC final budget adoption on June 13, 2014. REGIONAL WASTEWATER PROGRAM BUDGET AND CAPITAL IMPROVEMENTS PROGRAM Fiscal Year 2014-15 Preliminary REGIONAL WASTEWATER PROGRAM BUDGET and CAPITAL IMPROVEMENTS PROGRAM Fiscal Year 2014-15 The Metropolitan Wastewater Management Commission adopted its Operating Budget and Capital Improvements Program (CIP) for FY 14-15 April 11, 2014. The Budget and CIP are currently scheduled for consideration and ratification by the Springfield City Council on May 5, 2014, the Eugene City Council on May 12, 2014, and the Lane County Board of Commissioners on May 20, 2014. The Commission is scheduled for final ratification of the budget and CIP on June 13, 2014. COMMISSION MEMBERS: Faye Stewart, President (Lane County) Hilary Loud, Vice President (Eugene) George Brown (Eugene) Bill Inge (Lane County) Doug Keeler (Springfield) Walt Meyer (Eugene) Marilee Woodrow (Springfield) STAFF: Leonard J. Goodwin, MWMC Executive Officer/Springfield Development and Public Works Director Matthew Stouder, MWMC General Manager/Springfield Environmental Services Manager Michelle Cahill, Eugene Wastewater Division Director Robert Duey, MWMC Finance Officer/Springfield Finance Director METROPOLITAN WASTEWATER MANAGEMENT COMMISSION Preliminary FY 14-15 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 ......................................................... 25 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 Operations & Maintenance Program Budget Summary .................. 34 Exhibit 11: Eugene Operations & Maintenance Line Item Summary ............................. 35 Capital Improvements Programs ............................................................................................ 36 Exhibit 12: Capital Programs Budget Summary .............................................................. 40 Exhibit 13: Capital Programs 5-Year Plan....................................................................... 44 Regional Wastewater Capital Program Project Sheets .......................................................... 45 REGIONAL WASTEWATER PROGRAM BUDGET BUDGET MESSAGE   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) 2014-15. 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 14-15 capital budget and FY 14-15 -FY 18-19 capital improvements work plan, which are included in this budget document, are derived from the 2004 MWMC Facilities Plan. The budgeted amount for FY 14-15 Facilities Plan capital improvement projects is $13,266,247; $5,596,247 is carryover from unfinished projects budgeted in FY 13-14, and $7,670,000, is new or rephased funding programmed in FY 14-15. The FY 14-15 capital budget also includes Equipment Replacement, and Major Rehabilitation capital projects, budgeted at $439,400 and $1,234,000 respectively. The capital budget for FY 14-15 is $14,939,647. Approximately $6 million of the total capital budget will not be spent in FY 14-15, but is included to enable MWMC to commit to contracts that will occur in FY 14-15. Unspent funds will be canied forward to the FY 15-16 budget as appropriate. In order to fund the actual cash flow requirements of the FY 14-15 CIP, the Commission will use State Revolving Fund (SRF) loans as well as strategic draw downs of capital reserves. The FY 14-15 R WP Operating Budget for Personnel Services, Materials and Services and Capital Outlay expense is $16,682,647. Consistent with the Commission's Financial Plan and policies, the FY 14-15 budget maintains and uses several reserves, which are fully described in this budget document. Finally, the FY 14-15 budget includes Debt Service payments totaling $9,163,982 as scheduled for repayment of$47.3 million of revenue bonds issued in November 2006, with an additional bond issuance of$50.7 million in November 2008, and $20.8 million in SRF loans 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 14-15 user fee revenues (including septage service and SDC Compliance Charge) are projected at $29,372,000. This level of revenue is projected based on a 3.5% 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 are estimated at $830,000. In summary, the projected FY 14-15 budget funds operations and administration sufficiently to maintain existing levels of service, and to meet the enviromnental performance and other legal obligations of the Commission. It funds Capital Programs at a level necessary to implement the Page 1 Preliminmy FY 14-15 BUDGET AND CIP Metropolitan Wastewater Management Commission Budget Message 2004 Facilities Plan objectives for compliance with the National Pollutant Discharge Elimination System (NPDES) permit issued to the MWMC and the two Cities. Finally, this budget implements the Commission's adopted Financial Plan policies regarding reserves, asset management, and capital financing. * ** *** REGION AL WASTEWATER PROGRAM RESOURCE AND EXPENDITURE SUMMARY ADOPTED AMENDED ADOPTED BUDGET BUDGET BUDGET 2013-14 2013-14 2014-15 RESOURCES Beginning Cash $93, 172,564 $96,833,702 $98,084,436 User Fees 28,272,000 28,272,000 29,372,000 Intemal Transfers 14,228,946 14,548,946 15,224,591 Miscellaneous 1,713,400 1,882,065 1,570,300 System Development Charge 652,000 652,000 830,000 Revenue Bond/SRF Proceeds 317,500 317,500 175,000 * Interest 245,000 245,000 359,300 $138,601,4 10 $142,751,213 $145,615,627 EXPENDITURES Reserves $84,453,188 $85,757,605 $89,604,760 CIP 14,496,514 16,982,524 14,939,647 ** Intemal Transfers 14,228,946 14,548,946 15,224,591 *** Operations 12,716,031 12,396,031 12,771,358 Debt Service 9,069,969 9,377,116 9,163,982 Administration 3,636,762 3,688,991 3,911,289 $138,601,410 $142,751,21 3 $145,615,62 7 Because all capital projects for which contracts will be awarded in FY 14-15 must be fully budgeted in FY 14- 15, the revenue requirements, and in this case, any necessary borrowing, must also be shown in the budget year. 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 14-15 is $14,939,647, which includes Equipment Replacement, Major Rehab and Major Capital Outlay totaling $1 ,673,400, the capital project spending for FY 14-15 is only expected to total about $6,000,000. Includes equipment r lacement contributions totaling $500,000, a Capital Reserve contribution of $7,000,000, a $17,89. transfer from Reimbursement SDC Compliance Charge to Operating, and transfers of $6,306,701 from op rating and $1,400,000 from Improvement SDC to finance debt service. Page 2 Preliminary FY 14-15 BUDGET AND CIP REGIONAL WASTEWATER PROGRAM BUDGET OVERVIEW   Metropolitan Wastewater Management Commission Overview Page 3 Preliminary FY 14-15 BUDGET AND CIP REGIONAL WASTEWATER PROGRAM OVERVIEW The Metropolitan Wastewater Management Commission The Metropolitan Wastewater Management Commission (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 Regional Wastewater Program (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 37 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 will achieve, sustain, and promote balance between community, environmental, and economic needs while meeting 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 14-15 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 of 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 framework for the development of the FY 14-15 RWP Operating Budget, Capital Improvements Program and associated work plans. Metropolitan Wastewater Management Commission Overview Page 4 Preliminary FY 14-15 BUDGET AND CIP Outcome 1: Achieve and maintain high environmental standards. Indicators: Performance: FY 12-13 Actual FY 13-14 Estimated Actual FY 14-15 Target • Amount of wastewater treated to water quality standards 100 %; 11.4 billion gallons 100 %; 13 billion gallons 100 %; 13 billion gallons • Compliance with environmental performance requirements of all permits 100% compliance 100% compliance 100% compliance • MWMC target for high quality biosolids <50% EPA 40CFR Part 503.13 -Table 3 Pollutant Concentrations: Policy Met <50% EPA 40CFR Part 503.13 -Table 3 Pollutant Concentrations: Policy Met <50% EPA 40CFR Part 503.13 -Table 3 Pollutant Concentrations: Policy Met • Volume of reclaimed water beneficially reused (million gallons) 83 million gallons 68 million gallons 70 million gallons • Performance targets under the Environmental Management System (EMS) are achieved 100% of numeric EMS targets met or on schedule 100% of numeric EMS targets met or on schedule 100% of numeric EMS targets met or on schedule Outcome 2: Achieve and maintain fiscal management that is effective and efficient. Indicators: Performance: FY 12-13 Actual FY 13-14 Estimated Actual FY 14-15 Target • Annual Budget and Rates meet MWMC Financial Plan Policies Policies Met Policies Met Policies Met • Annual audited financial statements Clean Audit Clean Audit Clean Audit • Uninsured Bond Rating AA AA A • Reserves Funded at Target Levels yes yes yes • Net Revenue to Debt Service coverage ratio 1.97 >1.25 >1.25 Metropolitan Wastewater Management Commission Overview Page 5 Preliminary FY 14-15 BUDGET AND CIP Outcome 3: Achieve and maintain a successful intergovernmental partnership. Indicators: Performance: FY 12-13 Actual FY 13-14 Estimated Actual FY 14-15 Target • Industrial Pretreatment Program Implementation in compliance with state/federal requirements; any required corrections completed 100% 100% 100% • Capacity Management Operations and Maintenance (CMOM) Program Development Regional CMOM Elements drafted Adopt Regional CMOM Program Framework Implement Regional CMOM Program Plan and annual reporting • MWMC Facilities Plan projects consistent with CIP budget and schedule 100% of initiated projects within budget and 57% (4 of 7 projects) on schedule 100% of initiated projects within budget and 75% (6 of 8 projects) on schedule 100% of initiated projects within budget and 50% on schedule Outcome 4: Maximize reliability and useful life of regional assets and infrastructure. Indicators: Performance: FY 12-13 Actual FY 13-14 Estimated Actual FY 14-15 Target • Preventive maintenance completed on time (best practices benchmark is 90%) 95% 94% 90% • Preventative maintenance to corrective maintenance ratio (benchmark 4:1-6:1) 5.7:1 5:1 5:1 • Emergency maintenance required (best practices benchmark is <2% of labor hours) 1% 1% <2% of labor hours Metropolitan Wastewater Management Commission Overview Page 6 Preliminary FY 14-15 BUDGET AND CIP Outcome 5: Achieve and maintain public awareness and understanding of MWMC, the regional wastewater system, and MWMC’s objectives of maintaining water quality and a sustainable environment. Indicators: Performance: FY 12-13 Actual FY 13-14 Estimated Actual FY 14-15 Target • MWMC Annual Report Produced Produced Produce • Create and distribute e-newsletters 4 Newsletters 4 Newsletters 4 Newsletters • Organize pollution prevention campaigns 4 Campaigns 4 Campaigns 4 Campaigns • Provide tours of the Water Pollution Control Facility 23 Tours > 20 Tours > 20 Tours • MWMC website traffic Increased visitor traffic by 40% Maintain visitor levels Maintain visitor levels • Customer survey --- In Progress Complete • Complete virtual tour video of Water Pollution Control Facility In Progress Complete --- • Interpretive Signs at Wastewater Pollution Control Facility Completed --- --- • Deliver presentations on new MWMC topics to community groups 1 Presentation --- --- Metropolitan Wastewater Management Commission Overview Page 7 Preliminary FY 14-15 BUDGET AND CIP Roles and Responsibilities In order to effectively oversee and manage the RWP, the partner agencies provide all staffing and services to the 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 the 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 Intergovernmental Agreement (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 the MWMC through the regional funding of 77.40 full-time equivalent (FTE) employees. City of Springfield The City of Springfield supports the RWP through representation on the 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 Development and 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 the MWMC through the regional funding of 15.01 FTE of Development and Public Works Department staff and 0.88 FTE of Finance Department staff, for a total 15.89 FTE as reflected in the FY 14-15 Budget. Lane County The Board of County Commissioners support the RWP through representation on the MWMC, including two MWMC members that represent Lane County – one citizen and one County Commissioner. Lane County’s partnership initailly included providing support to manage the proceeds and repayment of the RWP general obligation bonds to finance the local share of the RWP facilities construction. These bonds were paid in full in 2002. The County, while not presently providing sewerage, has the authority under its charter to do so. The Urban Growth Boundary includes the two Cities (urban lands) and certain unincorporated areas surrounding the Metropolitan Wastewater Management Commission Overview Page 8 Preliminary FY 14-15 BUDGET AND CIP Cities which lies entirely within the County. Federal funding policy requires sewage treatment and disposal within the Urban Growth Boundary to be provided on a unified, metropolitan basis. Interagency Coordination The effectiveness of the 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. Metropolitan Wastewater Management Commission Overview Page 9 Preliminary FY 14-15 BUDGET AND CIP EXHIBIT 1 EUGENE CITY COUNCIL LANE COUNTY COMMISSIONERS SPRINGFIELD CITY COUNCIL METROPOLITAN WASTEWATER MANAGEMENT COMMISSION EUGENEWASTEWATER DIVISION - Regional Facility Operation and Maintenance - Major Rehab & Equipment Replacement - Technical Services - Pump Station and Interceptor Operations and Maintenance - Eugene Pretreatment Program PUBLIC WORKS ADMINISTRATION - Billing and Customer Service MAINTENANCE DIVISION - Regional Sewer Line Support SPRINGFIELDENVIRONMENTAL SERVICES DIVISION - Planning - Capital Construction - Rates, Revenues - Interagency Coordination - Public Information/Education - Springfield Pretreatment Program - Legal and Risk Services - Sewer User Customer Service FINANCE DEPARTMENT - Accounting & Financial Reporting INTERAGENCY COORDINATION & PROJECT TEAMS - Administrative Policy Decisions & Coordination - Capital Project Planning & Coordination - Interagency Issues- Operational Policy Decisions and Coordination - Capital Construction Guidance- Design Standards Development REGIONAL WASTEWATER PROGRAM INTERAGENCY COORDINATION STRUCTURE Operation & Maintenance Contract Administration Contract KEY OUTCOMES ACHIEVED REGIONAL WASTEWATER PROGRAM BUDGET BUDGET AND PROGRAM SUMMARY   Metropolitan Wastewater Management Commission Budget and Program Summary Page 10 Preliminary FY 14-15 BUDGET AND CIP REGIONAL WASTEWATER PROGRAM FY 14-15 BUDGET The 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 13-14” column in all budget tables represents the updated FY 13-14 RWP budget as of February 13, 2014, which reconciled actual beginning balances at July 1, 2013, and approved budget transfers and supplemental requests. Notes: 1. The Change column and Percent Change column compare the adopted FY 14-15 Budget with the originally Adopted FY 13-14 Budget column. 2. Personnel Services, Materials and Services, and Capital Outlay budget amounts represent combined Springfield and Eugene Operating Budgets that support the RWP. ADOPTED BUDGET AMENDED BUDGET ADOPTED BUDGET CHANGE (1) FY 13-14 FY 13-14 FY 14-15 INCR/(DECR) Full-Time Equivalent Staffing Level 93.08 93.29 93.29 0.21 0.2% Personnel Services (2)$9,548,513 $9,501,395 $9,656,542 $108,029 1.1% Materials & Services (2)6,751,952 6,531,299 6,962,605 210,653 3.1% Capital Outlay (2, 3)52,328 52,328 63,500 11,172 21% Equip Replacement Contr (4)500,000 500,000 500,000 0 0.0% Capital Reserve Contr (5)6,000,000 6,320,000 7,000,000 1,000,000 17% Working Capital Reserve (6)900,000 900,000 900,000 0 0% Rate Stability Reserve Contr (7)2,000,000 2,000,000 2,000,000 0 0% Insurance Reserve (8)100,000 100,000 100,000 0 0% Operating Reserve (9)2,131,836 3,117,227 3,017,045 885,209 42% Debt Service Contr (10)7,669,969 7,977,116 7,763,982 94,013 1% Rate Stabilization Reserve Contr (11)2,000,000 2,000,000 2,000,000 0 0% SRF Loan Reserve (12)643,078 643,078 642,866 (212)NA Revenue Bond Reserve Contr (13)4,100,000 4,100,000 4,100,000 0 NA Budget Summary $42,397,676 $43,742,443 $44,706,540 $2,308,864 5.4% EXHIBIT 2 REGIONAL OPERATING BUDGET SUMMARY: INCLUDING RESERVE CONTRIBUTIONS Metropolitan Wastewater Management Commission Budget and Program Summary Page 11 Preliminary FY 14-15 BUDGET AND CIP 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. 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 24 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 set aside revenues available at year-end after the budgeted Operating Reserve target is met. Internal policy has established a level of $2 million for the Rate Stability Reserve. See Exhibit 7 on page 21 for year-end balance. 8. The Insurance Reserve was established to set aside funds equivalent to the insurance deductible amount for property and liability insurance coverage, for general losses per occurrence. 9. The Operating Reserve is used to account for the accumulated operating revenues net of operations expenditures. The Commission has adopted a policy of maintaining an Operating Reserve balance of a minimum 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. 10. The Debt Service line item is the sum of annual interest and principal payments on the Revenue Bonds and Clean Water State Revolving Fund (SRF) loans made from the Operating Budget (derived from user rates). The total amount of Debt Service budgeted in FY 14-15 is $7,763,982 the balance of which is budgeted from SDCs. 11. The Rate Stabilization Reserve was established at $2 million 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. 12. The Clean Water SRF loan reserve is budgeted as required per loan agreements. 13. The Revenue Bond Reserve was established to provide assurances to the bond holders that adequate revenue coverage will be provided for future debt service obligations. The $4.1 million reserve to cover the 2006 bond is established in the operating fund, as it was funded with user fees. The bond reserve for the 2008 issuance is held in the Capital funds. Metropolitan Wastewater Management Commission Budget and Program Summary Page 12 Preliminary FY 14-15 BUDGET AND CIP ACTUAL ADOPTED BUDGET AMENDED BUDGET ADOPTED BUDGET CHANGESPRINGFIELDFY 12-13 FY 13-14 FY 13-14 FY 14-15 INCR/(DECR)MWMC ADMINISTRATION Personnel Services $1,102,068 $1,278,956 $1,243,657 $1,280,438 $1,482 0.1% Materials & Services 1,371,858 1,812,885 1,912,232 2,050,323 237,438 13.1% Capital Outlay 0 0 0 0 0 -- TOTAL $2,473,926 $3,091,841 $3,155,889 $3,330,761 $238,920 7.7%INDUSTRIAL PRETREATMENT Personnel Services $281,246 $314,595 $305,409 $334,275 $19,680 6.3% Materials & Services 95,563 113,124 113,124 122,551 9,427 8.3% Capital Outlay 0 0 0 0 0 -- TOTAL $376,809 $427,719 $418,533 $456,826 $29,107 6.8%ACCOUNTING Personnel Services $83,835 $90,068 $87,435 $91,932 $1,864 2.1% Materials & Services 21,796 27,134 27,134 31,770 4,636 17.1% Capital Outlay 0 0 0 0 0 --TOTAL $105,631 $117,202 $114,569 $123,702 $6,500 5.5%TOTAL SPRINGFIELD Personnel Services $1,467,149 $1,683,619 $1,636,501 $1,706,645 $23,026 1.4% Materials & Services 1,489,217 1,953,143 2,052,490 2,204,644 251,501 12.9% Capital Outlay 0 0 0 0 0 -- TOTAL $2,956,366 $3,636,762 $3,688,991 $3,911,289 $274,527 7.5%EUGENEADMINISTRATIVE SERVICES Personnel Services 1,431,713 1,716,706.00 1,716,706.00 1,737,124.00 20,418 1.2% Materials & Services 475,380 713,441.44 713,441.44 745,403.08 31,962 4.5% Capital Outlay 0 0 0 0 0 --TOTAL $1,907,093 $2,430,147 $2,430,147 $2,482,527 $52,380 2.2%BIOSOLIDS MANAGEMENT Personnel Services 1,170,577 1,223,763.00 1,223,763.00 1,203,064.00 ($20,699)-1.7% Materials & Services 802,229 1,038,476.39 1,038,476.39 991,252.48 (47,224)-4.5% Capital Outlay 0 0 0 0 0 --TOTAL $1,972,806 $2,262,239 $2,262,239 $2,194,316 ($67,923)-3.0%INDUSTRIAL SOURCE CONTROL Personnel Services 474,294 525,342.00 525,342.00 535,786.00 $10,444 2.0% Materials & Services 91,679 143,153.62 143,153.62 133,775.96 (9,378)-6.6%Capital Outlay 0 0 0 20,000 20,000 NA TOTAL $565,972 $668,496 $668,496 $689,562 $21,066 3.2%TREATMENT PLANT Personnel Services 4,032,323 4,053,381.00 4,053,381.00 4,123,432.00 $70,051 1.7% Materials & Services 2,161,063 2,481,069.79 2,161,069.79 2,458,367.78 (22,702)-0.9% Capital Outlay 24,149 52,328.00 52,328.00 43,500.00 (8,828)-16.9% TOTAL $6,217,535 $6,586,779 $6,266,779 $6,625,300 $38,521 0.6% REGIONAL PUMP STATIONS Personnel Services 102,129 176,983.00 176,983.00 181,185.00 $4,202 2.4%Materials & Services 234,641 354,782.56 354,782.56 338,368.94 (16,414)-4.6% Capital Outlay 0 0 0 0 0 -- TOTAL $336,770 $531,766 $531,766 $519,554 ($12,212)-2.3%BENEFICIAL REUSE SITE Personnel Services 126,636 168,719.00 168,719.00 169,306.00 $587 0.3% Materials & Services 48,098 67,885.19 67,885.19 90,792.75 $22,908 33.7% Capital Outlay 0 0 0 0 $0 -- TOTAL $174,735 $236,604 $236,604 $260,099 $23,495 9.9%TOTAL EUGENEPersonnel Services $7,337,672 $7,864,894 $7,864,894 $7,949,897 $85,003 1.1% Materials & Services 3,813,091 4,798,809 4,478,809 4,757,961 (40,848)-0.9% Capital Outlay 24,149 52,328 52,328 63,500 11,172 21.3%TOTAL $11,174,912 $12,716,031 $12,396,031 $12,771,358 $55,327 0.4% TOTAL REGIONAL BUDGET $16,352,793 $16,682,647 $329,854 2.0% EXHIBIT 3 REGIONAL WASTEWATER PROGRAM OPERATING BUDGETLINE ITEM SUMMARY BY PROGRAM AREA Metropolitan Wastewater Management Commission Budget and Program Summary Page 13 Preliminary FY 14-15 BUDGET AND CIP Note: * The Change (Increase/Decrease) column compares the adopted FY 14-15 budget to the originally adopted FY 13-14 budget column. ADOPTED BUDGET AMENDED BUDGET ADOPTED BUDGET CHANGE * OPERATING BUDGET FY 13-14 FY 13-14 FY 14-15 INC(DECR) Administration $3,631,762 $3,683,991 $3,906,289 $274,527 Operations 12,716,031 12,396,031 12,771,358 55,327 Capital Contribution 6,000,000 6,320,000 7,000,000 1,000,000 Equip Repl - Contribution 500,000 500,000 500,000 0 Operating & Revenue Bond Reserves 11,874,914 12,860,305 12,759,911 884,997 Debt Service 7,669,969 7,977,116 7,763,982 94,013 Total Operating Budget $42,392,676 $43,737,443 $44,701,540 $2,308,864 Funding: Beginning Balance $12,369,756 $13,714,523 $13,693,350 $1,323,593 User Fees 28,270,000 28,270,000 29,370,000 1,100,000 Other 1,752,920 1,752,920 1,638,190 (114,730) Total Operating Budget Funding $42,392,676 $43,737,443 $44,701,540 $2,308,863 CAPITAL PROGRAM BUDGET Wet Weather Planning / CMOM $184,740 $214,504 $96,504 ($88,236) Facility Plan Engineering Services 70,000 103,310 70,000 0 Odorous Air Treatment 2 0 176,555 0 NA Influent PS/Willakenzie PS/Headworks 306,256 304,051 208,051 (98,205) Primary Sludge Thickening 30,320 306,504 36,504 6,184 Sodium Hypochlorite Conversion 2,960,666 3,233,690 2,063,690 (896,976) Tertiary Filtration 1 500,000 518,882 200,000 (300,000) Digestion Capacity Increase 0 0 2,800,000 NA Thermal Load Pre-Implementation 700,000 661,143 275,000 (425,000) Thermal Load Implementation 1 700,000 617,928 433,928 (266,072) Poplar Harvest Mgmt Svcs 1 0 261,700 161,700 NA Biosolids Force Main Rehab 1,373,000 1,425,870 915,870 (457,130) Line Biosolids Lagoons 4 2,132,000 2,150,950 0 NA Tertiary Filtration Phase 2 3,000,000 3,000,000 0 NA WPCF Lagoon Remove/Decommission 1,500,000 1,500,000 4,705,000 3,205,000 Mixing Zone Study 0 198,173 0 NA Operations Building Improvements 0 0 1,300,000 NA Asset Management: Equipment Replacement Purchases 542,181 542,181 439,400 (102,781) Major Rehab 497,351 923,202 1,234,000 736,649 Major Capital Outlay 0 843,881 0 NA Total Capital Projects $14,496,514 $16,982,524 $14,939,647 $443,133 Funding: Equipment Replacement $542,181 $542,181 $439,400 ($102,781) Capital Bond Fund 10,469,756 10,875,833 10,937,849 468,093 Capital Reserve 3,484,577 5,564,510 3,562,398 77,821 Total Capital Projects Funding $14,496,514 $16,982,524 $14,939,647 $443,133 EXHIBIT 4 REGIONAL WASTEWATER PROGRAM BUDGET SUMMARY AND COMPARISON Metropolitan Wastewater Management Commission Budget and Program Summary Page 14 Preliminary FY 14-15 BUDGET AND CIP OPERATING BUDGET AND RATE HISTORY The graphs on pages 15 and 16 show the Regional Residential Sanitary Sewer costs over a 5-year period, and a 5-year Regional Operating Budget Comparison. Because the Equipment Replacement and Major Infrastructure Rehabilitation programs are managed in the Eugene Operating Budget, based on the size, type and budget amount of the project these programs are incorporated into either the 5-year Regional Operating Budget Comparison graph or the 5-Year Capital Programs graph on page 16. The Regional Wastewater Capital Improvement Programs graph on page 16 shows the expenditures over the recent five years in the MWMC’s Capital Program and including Asset Management projects. A list of capital projects is located in Exhibit 13 on page 44. As shown on the Regional Residential Sanitary Sewer Rate graph on page 15, regional sewer user charges have incrementally increased to meet the revenue requirements necessary to fund facility improvements as indentified in the 2004 MWMC Facilities Plan. 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 20-year period will come from user charges. Since 2004, this has become the major driver of the 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. Additionally, 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. In FY 09-10, there was an 18% user rate increase over FY 08-09 rates applied uniformly across all user classes. This rate provided for Operations, Administration, Capital programs, reserves and debt service to be funded at sufficient levels to meet FY 09-10 requirements. It met the capital and operating requirements, the Commission’s Financial Plan policies, and covenants associated with the MWMC’s 2006 and 2008 revenue bonds. In FY10-11 user rates increased 5% over the prior year rates, and in FY 11-12 and FY 12-13 user rates increased 4% each year, over the prior year rates to provide for Operations, Administration, Capital programs, reserves, debt service, and debt coverage requirements. In FY 13-14 user rates increased 3% over the FY 12-13 rates to provide for Operations, Administration, Capital programs, reserves, debt service, and debt coverage requirements. The FY 14-15 Budget is based on a 3.5% user rate increase over the FY 13-14 rates. This increase will continue to provide for Operations, Administration, Capital programs, reserves and debt service, continuing to meet capital and operating requirements, and supporting the Metropolitan Wastewater Management Commission Budget and Program Summary Page 15 Preliminary FY 14-15 BUDGET AND CIP Commission’s Financial Plan policies and covenants associated with the MWMC’s 2006 and 2008 revenue bonds, as well as financially positioning for a future $20 million bond sale. The chart below displays the regional component of a residential monthly bill when applying the base and flow rates to 5,000 gallons of wastewater treated. $20.91 $21.74 $22.62 $23.30 $24.12 0.00 5.00 10.00 15.00 20.00 25.00 30.00 2011 2012 2013 2014 2015 Mo n t h l y C h a r g e s REGIONAL RESIDENTIAL SEWER RATES 5-YEAR COMPARISON Metropolitan Wastewater Management Commission Budget and Program Summary Page 16 Preliminary FY 14-15 BUDGET AND CIP The graph below displays the Regional Operating Budget amounts for the recent 5-year period. The graph below displays the Regional Wastewater Capital Improvement Program Budget amounts for the recent 5-year period. $15,158,940 $15,722,798 $16,180,715 $16,352,793 $16,682,647 $0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000 $18,000,000 $20,000,000 FY 10-11 FY 11-12 FY 12-13 FY 13-14 FY 14-15 REGIONALOPERATING BUDGET5-YEAR COMPARISON $32,520,347 $27,435,037 $24,024,103 $14,496,514 $14,939,647 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 $40,000,000 FY 10-11 FY 11-12 FY 12-13 FY 13-14 FY 14-15 REGIONAL WASTEWATER CAPITAL IMPROVEMENT PROGRAMS 5-YEAR COMPARISON REGIONAL WASTEWATER PROGRAM BUDGET STAFFING   Metropolitan Wastewater Management Commission Staffing Page 17 Preliminary FY 14-15 BUDGET AND CIP EXHIBIT 5 Notes: * Full-Time Equivalent (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. Regional Wastewater Program *Organization Chart FY 14-15 CITY OF EUGENE **Wastewater Division77.40 FTE Division Director.85 FTE Operations Manager.93 FTE Wastewater Treatment Plant39.30 FTE Regional PumpStations1.26 FTE ComputerServices 2.73 FTE Biosolids Management 12.62 FTE Operations16.0 FTE Beneficial Reuse Site1.77 FTE Equipment Maintenance10.3 FTE Facility Maintenance 8.51 FTE Laboratory2.65 FTE Industrial Pretreatment 5.35 FTE Stores2.67 FTE Env DataAnalyst.65 FTE User FeeSupport1.0 FTE Operations6.97 FTE Operations.53 FTE Equipment Maintenance.85 FTE Equipment Maintenance.59 FTE Equipment Maintenance2.57 FTE Facility Maintenance1.98 FTE Facility Maintenance .34 FTE Laboratory1.27 FTE Laboratory.66 FTE Laboratory.15 FTE Regulations &Enforcement3.38 FTE Admin Support5.36 FTE Support Services15.32 FTE Sampling.74 FTE Sampling.44 FTE Sampling.16 FTE PW Maint1.10 FTE Sampling.70 FTE Safety, Env & Health Supervisor.89 FTE Management Analyst.89 FTE Project Mgr..93 FTE PW Financial Services.20 FTE MWMC Executive Officer.16 FTE MWMC GENERAL Manager.75 FTE AdministrationSupport.30 FTE Accounting.88 FTE MWMCAdministration10.80 FTE Industrial Pretreatment3.30 FTE AdministrationSupport.70 FTE Regulations & Enforcement3.00 FTE Budget & Financial Management.50 FTE Special Projects/ Planning1.80 FTE Customer Service.45 FTE Public Education1.00 FTE Construction Management6.35 FTE CITY OF SPRINGFIELD **Environmental Services Division & Finance Department15.89 FTE Facility Maintenance.41 FTE Metropolitan Wastewater Management Commission Staffing Page 18 Preliminary FY 14-15 BUDGET AND CIP REGIONAL WASTEWATER PROGRAMPOSITION SUMMARY BUDGET BUDGET BUDGET FTE CLASSIFICATION FY 12-13 FY 13-14 FY 14-15 CHANGE SPRINGFIELD ENVIRONMENTAL SERVICES & FINANCE Development and Public Works Director 0.05 0.08 0.08 - Development and Public Works Deputy Director 0.00 0.08 0.08 - ESD Manager/MWMC General Manager 0.75 0.75 0.75 - ESD/MWMC Assistant Manager 0.70 0.00 0.00 - Enviromental Services Program Manager 0.55 0.55 0.55 - Managing Civil Engineer 2.00 2.00 2.00 - Civil Engineer/Design & Construction Coordinator 3.00 3.00 3.00 - Construction Inspector II 1.00 1.00 1.00 - Environmental Management Analyst 0.90 0.90 0.90 - Senior Finance Analyst 0.50 0.50 0.50 - Public Information & Education Specialist 0.65 1.00 1.00 - Engineering Assistant 1.60 1.60 1.60 - Administrative Specialist - Secretary 0.80 0.80 0.80 - Administrative Specialist - Clerk III 0.25 0.25 0.25 - Accountant 0.80 0.80 0.80 - Accounting Supervisor 0.08 0.08 0.08 - Environmental Services Program Coordinator 1.00 1.00 1.00 - Environmental Services Technician II 1.20 1.00 1.00 - Environmental Services Technician I 0.00 0.50 0.50 - TOTAL SPRINGFIELD 15.83 15.89 15.89 - EXHIBIT 6 Metropolitan Wastewater Management Commission Staffing Page 19 Preliminary FY 14-15 BUDGET AND CIP REGIONAL WASTEWATER PROGRAM POSITION SUMMARY BUDGET BUDGET BUDGET FTE CLASSIFICATION FY 12-13 FY 13-14 FY 14-15 CHANGE EUGENE WASTEWATER DIVISION & OTHER PW Administrative Specialist 1.78 1.78 1.78 - Administrative Specialist, Sr 0.95 0.95 0.95 - Application Support Technician 0.95 0.95 0.95 - Application Systems Analyst 1.78 1.78 1.78 - Custodian 1.00 1.00 1.00 - Finance & Admin Manager 0.89 0.89 0.89 - Electrician 1 0.70 1.28 3.28 2.00 Engineering Associate 0.35 0.35 0.35 - Maintenance Worker 11.34 12.29 12.29 - Management Analyst 3.36 4.25 4.25 - Office Supervisor, Sr 0.89 0.89 0.89 - Parts and Supply Specialist 1.78 1.78 1.78 - PW Financial Services Manager 0.20 0.20 0.20 - Utility Billing Coordinator 1.00 1.00 1.00 - Wastewater Lab Assistant 0.82 0.82 0.82 - Wastewater Division Director 0.85 0.85 0.85 - Wastewater Instrument Electrician 3.58 3.00 1.00 (2.00) Wastewater Plant Operations Manager 0.93 0.93 0.93 - Wastewater Operations Supervisor 2.89 2.00 2.00 - Wastewater Plant Maintenance Supervisor 2.88 2.88 2.88 - Wastewater Pretreatment & Lab Supervisor 0.82 0.82 0.82 - Wastewater Technician 37.51 36.71 36.71 - TOTAL 77.25 77.40 77.40 - GRAND TOTAL 93.08 93.29 93.29 - EXHIBIT 6 (Continued) REGIONAL WASTEWATER PROGRAM BUDGET RESERVES   Metropolitan Wastewater Management Commission Reserves Page 20 Preliminary FY 14-15 BUDGET AND CIP REGIONAL WASTEWATER PROGRAM RESERVES The RWP maintains reserve funds for the 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 2005 MWMC Financial Plan. Further details on the FY 14-15 reserves are provided below. OPERATING RESERVES The MWMC Operating Budget includes seven separate reserves: the Working Capital Reserve, Rate Stability Reserve, Rate Stabilization Reserve, Revenue Bond Reserve, State Revolving Fund (SRF) Reserve, Insurance 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 14-15, $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 has been set at $2,000,000, with any additional net revenues being transferred to the capital reserve for future projects. 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 14-15 no additional contribution to this reserve is budgeted and the balance at June 30, 2015, will remain at $2,000,000. REVENUE 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. To meet reserve requirements of the 2006 bond issuance the Bond Reserve is budgeted at $4,100,000 for FY14-15, and is held in Metropolitan Wastewater Management Commission Reserves Page 21 Preliminary FY 14-15 BUDGET AND CIP the operating fund, as it was funded with user fees. The Bond Reserve from the 2008 issuance is held in the capital funds. CLEAN WATER STATE REVOVLING FUND (SRF) RESERVE The Clean Water SRF Reserve was established to meet revenue coverage requirements for SRF loans. The SRF Reserve is set at $642,866 for FY 14-15. INSURANCE RESERVE The Insurance Reserve was established to set aside funds equivalent to the insurance deductible amount for property and liability insurance coverage, for general losses per occurrence. The Insurance Reserve is set at $100,000 for FY 14-15. 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 14-15, the Operating Reserve is budgeted at $3,017,045, which includes the 10% of total Personal Services, Materials and Services, and Capital Outlay in accordance with Commission policy. EXHIBIT 7 OPERATING RESERVES ADOPTED BUDGET FY 13-14 AMENDED BUDGET FY 13-14 ADOPTED BUDGET FY 14-15 Beginning Balance 12,369,756 13,714,523 13,693,350 User Fee Revenue 28,100,000 28,100,000 29,200,000 Septage Revenue 170,000 170,000 170,000 Other Revenue 1,713,400 1,713,400 1,570,300 Interest 22,000 22,000 50,000 Transfer from Bond Capital Fund 0 0 0 Transfer from Reimbursement SDCs 17,520 17,520 17,890 Personal Services (9,548,513)(9,501,395)(9,656,542) Materials & Services (6,746,952)(6,526,299)(6,957,605) Capital Outlay (52,328)(52,328)(63,500) Interfund Transfers (6,500,000)(6,820,000)(7,500,000) Transfer to Bond Debt Service Fund (6,311,426) (6,311,426)(6,306,701) Debt Service - SRF Loan (1,358,543)(1,665,690)(1,457,281) WORKING CAPITAL (900,000)(900,000)(900,000) INSURANCE RESERVE (100,000)(100,000)(100,000) SRF LOAN RESERVE (643,078)(643,078)(642,866) RATE STABILITY RESERVE (2,000,000)(2,000,000)(2,000,000) RATE STABILIZATION RESERVE (2,000,000)(2,000,000)(2,000,000) BOND RESERVE - REVENUE 06 (4,100,000)(4,100,000)(4,100,000) Operating Reserve $2,131,836 $3,117,227 $3,017,045 Metropolitan Wastewater Management Commission Reserves Page 22 Preliminary FY 14-15 BUDGET AND CIP CAPITAL RESERVES The MWMC Capital Budget includes five reserves: the Equipment Replacement Reserve, SDC Reimbursement Reserves, SDC Improvement Reserves, 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 14-15 budget total $500,000, 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 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. 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 14-15 are approximately $830,000. Budgeted expenditures include $1,400,000 from Improvement Fees to fund portions of the annual debt service payments on the EQUIPMENT REPLACEMENT RESERVE ADOPTED BUDGET FY 13-14 AMENDED BUDGET FY 13-14 ADOPTED BUDGET FY 14-15 Beginning Balance 11,110,287 11,110,287 11,159,523 Annual Equipment Contribution 500,000 500,000 500,000 Annual Vehicle Contribution 0 0 0 Annual Computer Contribution 0 0 0 Interest 40,000 40,000 40,000 Equipment Purchases (542,181)(542,181)(439,400) Equipment Replacement Reserve $11,108,106 $11,108,106 $11,260,123 Metropolitan Wastewater Management Commission Reserves Page 23 Preliminary FY 14-15 BUDGET AND CIP 2006 and 2008 revenue bonds. The projected beginning SDC Reserve balance on July 1, 2014 is $2,664,877. 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 14-15 Budget includes a contribution from the Operating Reserve of $7,000,000. The beginning balance on July 1, 2014, is projected to be $70,566,686. Additional budget detail on the CIP, Major Capital Outlay and Major Rehabilitation Program reserves is provided below. REVENUE 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 14-15 the Bond Reserve is budgeted at $4,000,000 in order to meet reserve requirements of the 2008 bond issuance. The Bond Reserve from the 2006 issuance is held in the operating funds. REIMBURSEMENT SDC RESERVE ADOPTED BUDGET FY 13-14 AMENDED BUDGET FY 13-14 ADOPTED BUDGET FY 14-15 Beginning Balance 197,068 281,445 382,525 Reimbursement SDCs Collected 51,000 51,000 80,000 Interest 3,000 3,000 1,800 SDC Compliance Charge 2,000 2,000 2,000 Xfr to Debt Service (Fund 312)0 0 0 Xfr to Debt Service (Fund 612)(17,520)(17,520)(17,890) Materials & Services (2,000)(2,000)(2,000) Reimbursement SDC Reserve $233,548 $317,925 $446,435 IMPROVEMENT SDC RESERVE ADOPTED BUDGET FY 13-14 AMENDED BUDGET FY 13-14 ADOPTED BUDGET FY 14-15 Beginning Balance 1,609,352 2,575,852 2,282,352 Improvement SDCs Collected 601,000 601,000 750,000 Interest 5,000 5,000 7,500 Materials & Services (3,000)(3,000)(3,000) Xfr to Debt Service (Fund 312 )(1,400,000)(1,400,000)(1,400,000) Improvement SDC Reserve $812,352 $1,778,852 $1,636,852 Metropolitan Wastewater Management Commission Reserves Page 24 Preliminary FY 14-15 BUDGET AND CIP CAPITAL RESERVES ADOPTED BUDGET FY 13-14 AMENDED BUDGET FY 13-14 ADOPTED BUDGET FY 14-15 Beginning Balance 67,886,101 69,151,595 70,566,686 Transfer from Operating Reserve 6,000,000 6,320,000 7,000,000 Interest 60,000 60,000 60,000 Interest Income (Revenue Bond Proceeds)115,000 115,000 200,000 Revenue Bond Sale & SRF Proceeds 317,500 317,500 175,000 Other revenue 0 168,665 0 Funding For Capital Improvement Projects (13,456,982) (14,673,260) (13,266,247) Funding For Major Rehabilitation (497,351)(923,202)(1,234,000) Funding For Major Capital Outlay 0 (843,881)0 Revenue Bond Reserve (4,000,000)(4,000,000)(4,000,000) Capital Reserve $56,424,268 $55,692,417 $59,501,439 REGIONAL WASTEWATER PROGRAM BUDGET APPENDICES   REGIONAL WASTEWATER PROGRAM BUDGET APPENDIX A SPRINGFIELD PROGRAM DETAIL   Metropolitan Wastewater Management Commission Springfield Budget Detail Page 25 Preliminary FY 14-15 BUDGET AND CIP Program Responsibilities  Administration & Management  Financial Planning & Management  Long-Range Capital Project Planning  Project and Construction Management  Coordination between the Commission and governing bodies  Coordination and Management of: ∙ Risk Management & Legal Services ∙ Public Policy Issues ∙ Regulatory and Permit Compliance Issues  Public Information, Education and Outreach  Industrial Pretreatment Source Control  Customer Service CITY OF SPRINGFIELD REGIONAL WASTEWATER PROGRAM RESPONSIBILITIES The City of Springfield manages administration services for the RWP under the Intergovernmental Agreement for the Metropolitan Wastewater Management Commission (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 the 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 14-15 is provided in Exhibit 12 on page 40. MWMC ADMINISTRATION The Springfield Environmental Services Division (ESD) and Finance Department provide ongoing support and management services for the MWMC. The Development and Public Works (DPW) Director serves as the MWMC Executive Officer. The Environmental Services Manager serves as the General Manager. 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 2014, 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 Metropolitan Wastewater Management Commission Springfield Budget Detail Page 26 Preliminary FY 14-15 BUDGET AND CIP and implementation of Pollution Management Practices. Pretreatment program staff also coordinates pollution prevention activities in cooperation with the Pollution Prevention Coalition of Lane County. ACCOUNTING AND 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 14-15, the City of Springfield will support the following major regional initiatives in addition to ongoing Commission administration and industrial pretreatment activities:  Develop and implement the regional Capacity Management Operations and Maintenance (CMOM) Program Plan, focusing on continued inflow and infiltration reductions, including flow monitoring, data tracking, 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 14-15. Considering emerging environmental regulations that may impact the operation of the WPCF.  Continue public information, education and outreach activities focused on the MWMC Facilities Plan and MWMC’s objectives for maintaining water quality and a sustainable environment.  Protect RWP interests through participation in Association of Clean Water Agencies activities.  Coordinate temperature Total Maximum Daily Load (TMDL) compliance through continued development and implementation of the thermal load mitigation strategy, that includes but is not limited to a recycled water program.  Continue participation with the Association of Clean Water Agencies and the Department of Environmental Quality in the development of a Capacity Management Operations and Maintenance (CMOM) Program. H Metropolitan Wastewater Management Commission Springfield Budget Detail Page 27 Preliminary FY 14-15 BUDGET AND CIP SIGNIFICANT BUDGET CHANGES FOR FY 14-15 The budget for Springfield Personnel Services, Materials and Services, and Capital Outlay for FY 14-15 totals $3,911,289 representing an overall increase of $274,527 (7.5%) over the adopted FY 13-14 budget, as displayed in Exhibit 8 on page 28. Personnel Services Personnel Services totaling $1,706,645 represent a FY 14-15 increase of $23,026 or 1.4% over the originally adopted FY 13-14 budget. The major changes are summarized below: Staffing Level – 15.89 full-time equivalent (FTE) staff remains level Staffing remains level in the FY 14-15 budget when compared to FY 13-14. Regular Wages - $1,138,648, an increase of $50,585 or 4.6% Salaries are based upon the negotiated management/labor contracts as approved by the Springfield City Council. PERS/OPSRP Contributions - $151,571, a decrease of $42,060 or -21.7% Employee retirement contribution is decreased in the FY 14-15. Health Insurance - $299,688, an increase of $17,466 or 6.2% Health insurance includes employee related medical and dental insurance. Materials and Services The Materials and Services budget total is $2,204,644 in FY14-15, representing an increase of $251,501 or 12.9% over the originally adopted FY 13-14 budget. The major changes are summarized below: Property and Liability Insurance - $463,600, an increase of $133,600 or 40.5% The $133,600 increase is in comparison to the orignially adopted FY 13-14 budget. The FY 13-14 budget was amended increasing the budget by $66,267 or 20% from $330,000 to $396,267 to meet increased premiums for insurance coverage levels in FY 13-14. In FY 14- 15, the budget is increased by an additional $67,333 or 17% when compared to the FY 13- 14 amended budget. Contractual Services –$186,180, a net increase of $46,480 or 33.3% The $46,480 increase includes $30,000 (net $21,480) for development, execution and tabulation of a regional customer survey, and $25,000 for technical assistance to assist with further evaluation on development of a regional private lateral program. Internal Charges - $180,061, an increase of $35,550 or 24.6% The $35,550 increase is primarily related to the regional portion of the City of Springfield internal insurance charges including liability, auto, property and risk insurance. Metropolitan Wastewater Management Commission Springfield Budget Detail Page 28 Preliminary FY 14-15 BUDGET AND CIP Indirect Costs - $330,824, an increase of $24,506 or 8% The $24,504 increase is based on changes in overhead costs as programmed in the FY 14- 15 budget, when compared FY 13-14. Indirect Costs are based on a methodology approved by the federal government, which is outlined in the MWMC Intergovernmental Agreement. Note: * Change column compares the adopted FY 14-15 Budget to the adopted FY 13-14 Budget. ACTUAL ADOPTED BUDGET AMENDED BUDGET ADOPTED BUDGET CHANGE * FY 12-13 FY 13-14 FY 13-14 FY 14-15 INCR/(DECR) Personnel Services $1,467,149 $1,683,619 $1,636,501 $1,706,645 $23,026 1.4% Materials & Services 1,489,217 1,953,143 2,052,490 2,204,644 251,501 12.9% Capital Outlay 0 0 0 0 0 NA Budget Summary $2,956,366 $3,636,762 $3,688,991 $3,911,289 $274,527 7.5% EXHIBIT 8 SPRINGFIELD ADMINISTRATION PROGRAM ADOPTED FY 14-15 BUDGET SUMMARY $3,546,833 $3,609,970 $3,670,958 $3,636,762 $3,911,289 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 $4,500,000 $5,000,000 FY 10-11 FY 11-12 FY 12-13 FY 13-14 FY 14-15 5-YEAR MWMC ADOPTED BUDGET COMPARISON SPRINGFIELD ADMINISTRATION Metropolitan Wastewater Management Commission Springfield Budget Detail Page 29 Preliminary FY 14-15 BUDGET AND CIP ADOPTED AMENDED ADOPTED ACTUAL BUDGET BUDGET BUDGET FY 12-13 FY 13-14 FY 13-14 FY 14-15 INCR/(DECR) PERSONNEL SERVICES Regular Wages $996,846 $1,088,063 $1,088,063 $1,138,648 $50,585 4.6% Overtime 623 7,716 7,716 7,716 0 0.0% Employee Benefits 100,502 111,987 111,987 109,022 (2,965)-2.6% PERS/OPSRP 130,321 193,631 146,513 151,571 (42,060)-21.7% Medical/Dental Insurance 238,857 282,222 282,222 299,688 17,466 6.2% Total Personnel Services $1,467,149 $1,683,619 $1,636,501 $1,706,645 $23,026 1.4% FTE 16.68 15.89 15.89 15.89 - 0.0% MATERIALS & SERVICES Billing & Collection Expense 504,439 568,000 568,000 575,000 7,000 1.2% Property & Liability Insurance 263,750 330,000 396,267 463,600 133,600 40.5% Contractual Services 21,447 139,700 147,780 186,180 46,480 33.3% Attorney Fees and Legal Expense 32,171 175,000 175,000 175,505 505 0.3% WPCF/NPDES Permits 103,371 126,500 126,500 126,600 100 0.1% Materials & Program Expense 47,159 84,499 84,473 86,689 2,190 2.6% Computer Software & Licenses 35,372 39,800 64,800 39,050 (750)-1.9% Employee Development 8,264 19,365 19,365 20,915 1,550 8.0% Travel & Meeting Expense 9,581 19,450 19,550 20,220 770 4.0% Internal Charges 141,560 144,511 144,437 180,061 35,550 24.6% Indirect Costs 322,103 306,318 306,318 330,824 24,506 8.0% Total Materials & Services $1,489,217 $1,953,143 $2,052,490 $2,204,644 251,501 12.9% CAPITAL OUTLAY 0 0 0 0 0 NA Total Capital Outlay 0 0 0 0 0 NA TOTAL $2,956,366 $3,636,762 $3,688,991 $3,911,289 274,527 7.5% EXHIBIT 9SPRINGFIELD ADMINISTRATION LINE ITEM BUDGET SUMMARY CHANGE REGIONAL WASTEWATER PROGRAM BUDGET APPENDIX B EUGENE PROGRAM DETAIL   Metropolitan Wastewater Management Commission Eugene Budget Detail Page 30 Preliminary FY 14-15 BUDGET AND CIP Program Responsibilities  Administration & Management  Facility Operations  Facility Maintenance  Biosolids Management  Industrial Source Control  Management Information Services  Project Management CITY OF EUGENE REGIONAL WASTEWATER PROGRAM RESPONSIBILITIES The Wastewater Division for the City of Eugene manages all regional wastewater pollution control facilities serving the areas inside the Eugene and Springfield Urban Growth Boundaries under the Intergovernmental Agreement for the Metropolitan Wastewater Management Commission (MWMC). These regional facilities include the Eugene/Springfield Regional Water Pollution Control Facility (WPCF), the Biosolids Management Facility, the Beneficial Reuse Site, the Biocycle Farm site, and regional wastewater pumping stations and transmission sewers. In support of the water pollution control program, the Division provides technical services for wastewater treatment, management of equipment replacement and infrastructure rehabilitation, biosolids treatment and recycling, regional laboratory services, and an industrial source control and pretreatment program in conjunction with City of Springfield staff. 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, and a stores unit that purchases and stocks parts and supplies and assists with professional services contracting. 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 Operations section optimizes wastewater treatment processes to ensure effluent quality requirements are met in an efficient and cost effective manner. In addition, the Operations section provides continuous monitoring of the alarm functions for all plant processes, regional and local pump stations, Biosolids Management Facility, and the Beneficial Reuse Site MAINTENANCE The mechanical, electrical, and facilities maintenance sections of the Wastewater Division are responsible for preservation of the multi-million dollar investment in the equipment and infrastructure of the WPCF, local and regional pump stations, pressure sewers, as well as the Biosolids Management Facility. These sections provide a preventative maintenance program Metropolitan Wastewater Management Commission Eugene Budget Detail Page 31 Preliminary FY 14-15 BUDGET AND CIP to maximize equipment life and reliability; a corrective maintenance program for repairing unanticipated equipment failures; a facility maintenance program to maintain the buildings, treatment structures, and grounds. 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 4,600 dry tons of biosolids are produced annually by the WPCF. The 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. Biosolids are also irrigated on poplar trees at the Biocycle Farm as a beneficial nutrient and soil conditioner. This section also operates the Beneficial Reuse Site which formerly served to treat wastewater from food processing operation. 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 wastewater 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. During the calendar year 2013 there were 22 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 process control decisions, document compliance with regulatory requirements, demonstrate environmental protection, and ensure worker health and safety. Metropolitan Wastewater Management Commission Eugene Budget Detail Page 32 Preliminary FY 14-15 BUDGET AND CIP The Sampling Team is responsible for 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 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. Special emphasis is given to coordinating energy efficiency projects with operations staff. 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 14-15, Eugene staff will support the following major regional initiatives in addition to ongoing operational activities.  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.  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.  Provide technical input and O&M assessments related to proposed initiatives for addressing TMDL compliance, greenhouse gas emission controls, and renewable energy objectives.  Complete scheduled major rehabilitation, equipment replacement, and other capital projects in an efficient and timely manner. Metropolitan Wastewater Management Commission Eugene Budget Detail Page 33 Preliminary FY 14-15 BUDGET AND CIP  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.  Manage the Operations & Maintenance (O&M) aspects of the Biocycle Farm, continuing biosolids irrigation practices and poplar tree management. SIGNIFICANT CHANGES IN THE O & M BUDGET FOR FY 14-15 The budget for Operations and Maintenance of the regional wastewater treatment facilities (personnel, materials and services, and capital outlay) for FY 14-15 totals $12,771,358. The amount represents an increase of $55,327 or 0.4% from the FY 13-14 budget. The largest cost centers for the budget are personnel costs, utilities, materials, maintenance, and chemicals. Details of significant items and changes for the FY 14-15 Operations and Maintenance budget as compared to the FY 13-14 budget include: Personnel Services Personnel Services totaling $7,949,897 represents a FY 14-15 increase of $85,003 or 1.1%. The major changes are in the following budget categories: Staffing The FY 14-15 budget requests no change in staffing level from the FY 13-14 budget. Staffing requests remains at 77.40 Full Time Equivalent (FTE). Regular Wages - $4,910,853, an increase of $103,117 or 2.1% Salaries are based upon the negotiated management/labor contracts between the City of Eugene and the local union (AFSCME). Employee Benefits - $1,580,338, a decrease of $84,716 or -5.1% The employee benefits consist mainly of PERS/OPSRP retirement system costs and Medicare contributions. Health Insurance - $1,296,759, an increase of $86,193 or 7.1% The increase is based on group claims experience and cost projections. Costs are calculated based on the number of employees. Materials and Services The Materials and Services budget totaling $4,757,961 and represents an FY 14-15 decrease of $40,848 or -0.9%. The major changes are in the following budget categories: Indirect Charges - $983,500, a decrease of $154,000 or -13.5% This expenditure category includes costs for payroll processing, human resources services, information technology services, and budget and financial services provided by the City of Eugene to the Wastewater Division. Contractual Services - $637,448, an increase of $119,125 or 23% This account includes services for outside lab testing, USGS water monitoring, poplar tree pruning and grit waste disposal. The FY14-15 budget request increase includes $75,000 for one- time electrical arc flash safety improvements. Metropolitan Wastewater Management Commission Eugene Budget Detail Page 34 Preliminary FY 14-15 BUDGET AND CIP Materials & Program Expense - $637,480, an increase of $76,826 or 13.7% Materials & Program Expense account includes a wide variety of operational items such as telephone charges, training costs, tools, small equipment, safety supplies, and inventory. FY14- 15 budget request increase includes $48,308 for tools and small equipment, and $23,000 for large diameter pipe CCTV services. Chemicals - $340,302, a decrease of $45,814 or -11.9% Chemicals cost decrease due to solicitation of new price agreements resulting in lower costs for disinfection chemicals. ACTUAL ADOPTED BUDGET AMENDED BUDGET ADOPTED BUDGET CHANGE * FY 12-13 FY 13-14 FY 13-14 FY 14-15 INCR/(DECR) Personnel Services $7,337,672 $7,864,894 $7,864,894 $7,949,897 $85,003 1.1% Materials & Services 3,813,091 4,798,809 4,478,809 4,757,961 (40,848)-0.9% Capital Outlay 24,149 52,328 52,328 63,500 11,172 21.3% Budget Summary $11,174,911 $12,716,031 $12,396,031 $12,771,358 $55,327 0.4% EXHIBIT 10 EUGENE - OPERATIONS AND MAINTENANCE PROGRAM ADOPTED FY 14-15 BUDGET SUMMARY $11,612,107 $12,112,828 $12,509,757 $12,716,031 $12,771,358 $0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 $16,000,000 FY 10-11 FY 11-12 FY 12-13 FY 13-14 FY 14-15 5-YEAR MWMC ADOPTED BUDGET COMPARISONEUGENE -OPERATIONS AND MAINTENANCE Metropolitan Wastewater Management Commission Eugene Budget Detail Page 35 Preliminary FY 14-15 BUDGET AND CIP ADOPTED AMENDED ADOPTED ACTUAL BUDGET BUDGET BUDGET CHANGE FY 12-13 FY 13-14 FY 13-14 FY 14-15 INCR/(DECR) PERSONNEL SERVICES Regular Wages 4,574,921 4,807,736 4,807,736 4,910,853 103,117 2.1% Extra Help 10,151 0 0 0 0 NA Overtime 57,385 94,645 94,645 71,120 (23,525)-24.9% Employee Benefits 1,493,622 1,665,054 1,665,054 1,580,338 (84,716)-5.1% Workers' Comp/Unemploy Ins 84,757 86,893 86,893 90,827 3,934 4.5% Health Insurance 1,116,836 1,210,566 1,210,566 1,296,759.00 86,193 7.1% TOTAL PERSONNEL SERVICES $7,337,672 $7,864,894 $7,864,894 $7,949,897 $85,003 1.1% FTE 77.40 77.40 77.40 77.40 0.00 0.0% MATERIALS & SERVICES Utilities 636,920 765,924 765,924 751,190 (14,734)-1.9% Fleet Operating Charges 397,310 412,620 412,620 391,967 (20,653)-5.0% Maintenance-Equip & Facilities 269,583 383,153 383,153 341,408 (41,745)-10.9% Contractual Services 301,832 518,323 518,323 637,448 119,125 23.0% Materials & Program Expense 513,840 560,654 240,654 637,480 76,826 13.7% Chemicals 384,177 386,116 386,116 340,302 (45,814)-11.9% Parts & Components 211,753 240,004 240,004 300,034 60,030 0.1% Risk Insurance - Employee Liability 66,774 65,464 65,464 49,174 (16,290)-2.0% Laboratory Equipment & Supplies 62,920 77,401 77,401 80,000 2,599 -8.7% Computer Equip, Supplies, Maint 173,319 251,650 251,650 245,458 (6,192)26.2% Indirects 794,664 1,137,500 1,137,500 983,500 (154,000)-13.5% TOTAL MATERIALS & SERVICES $3,813,091 $4,798,809 $4,478,809 $4,757,961 ($40,848)-0.9% CAPITAL OUTLAY Motorized Vehicles 16,573 42,328 42,328 0 (42,328) NA Capital Outlay-Other 7,576 10,000 10,000 63,500 53,500 535.0% TOTAL CAPITAL OUTLAY $24,149 $52,328 $52,328 $63,500 $11,172 21% TOTAL $11,174,911 $12,716,031 $12,396,031 $12,771,358 $55,327 0.4% EXHIBIT 11 EUGENE - OPERATIONS & MAINTENANCE LINE ITEM BUDGET SUMMARY REGIONAL WASTEWATER PROGRAM BUDGET CAPITAL PROGRAM   Metropolitan Wastewater Management Commission Capital Improvement Program Page 36 Preliminary FY 14-15 BUDGET AND CIP REGIONAL WASTEWATER PROGRAM CAPITAL PROGRAMS Overview The Regional Wastewater Program (RWP) includes two components: the Capital Improvement Program (CIP) and the Asset Management Capital Program (AMCP). The FY 14-15 CIP Budget, the FY 14-15 AMCP Budget, and the associated 5-Year Capital Plan are based on the 2004 MWMC Facilities Plan (2004 FP). The 2004 FP was approved by the MWMC, the governing bodies of the City of Eugene, the City of Springfield, Lane County, and the Oregon Department of Environmental Quality in 2004. The 2004 FP 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 2004 FP 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 2004 FP was intended to meet changing regulatory and wet weather flow requirements and to serve the community’s wastewater capacity and treatment needs through 2025. Accordingly, the 2004 FP established the CIP project list to provide necessary facility enhancements and expansions over the planning period. The CIP is administered by the City of Springfield for the MWMC. The AMCP implements the projects and activities necessary to maintain functionality, lifespan, and effectiveness of the MWMC facility assets on an ongoing basis. The AMCP is administered by the City of Eugene for the MWMC and consists of three sub-categories:  Equipment Replacement Program  Major Rehabilitation Program  Major Capital Outlay The MWMC has established these capital programs to achieve the following RWP objectives:  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 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 the Citizens Advisory Committee recommendations, which represent diverse community interests, values and involvement, and that have been adopted by the Commission as the MWMC’s plans and policies  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) Metropolitan Wastewater Management Commission Capital Improvement Program Page 37 Preliminary FY 14-15 BUDGET AND CIP Capital Program Funding and Financial Planning Methods and Policies This annual budget document presents the FY 14-15 CIP Budget, the FY 14-15 AMCP Budget, and 5-Year Capital Plan which includes the CIP and AMCP Capital Plan. The MWMC Capital Program financial planning and funding methods are in accordance with the financial management policies put forth in the MWMC 2005 Financial Management Plan. Each of the two RWP capital programs relies on funding mechanisms to achieve RWP objectives described above. The CIP is funded primarily through proceeds from revenue bond sales, system development charges, and transfers from the Operating Fund to Capital Reserves. The AMCP is funded through wastewater user fees. In addition to revenue bond sales, project financing for qualified CIP projects was also secured through the State of Oregon Department of Environmental Quality (DEQ)’s Clean Water State Revolving Fund (CWSRF) loan program. The MWMC secured several CWSRF loan agreements totalling $20.8 million in 2008, 2009, and 2010. These 20-year loans provide the MWMC below- market interest rates ranging from 0 to 2.77 percent (%), along with additional financial benefits. Through the CWSRF loan program, loans of $8,000,000, $7,500,000, and $4,000,000 were approved for Tertiary Filtration – Phase 1, Odorous Air Treatment – Phase 1, and Primary Sludge Thickening projects, respectively. Additionally, $1,279,200 in CWSRF financing was approved for the MWMC for CIP planning efforts. Of the $8,000,000 provided through the Tertiary Filtration project loan, $450,000 is Sponsorship funding allocated for riparian shade tree planting projects to help address the MWMC’s pending thermal load obligations. The financing of these watershed-based projects is made available through the CWSRF program Sponsorship Option, which provides funding to the borrower to address nonpoint source water quality solutions through a reduced interest rate. The interest rate reduction allows the MWMC to invest in watershed improvements using money that would have otherwise been paid as interest on the loan. Of the $7,500,000 approved loan funding for the Odorous Air Treatment – Phase 1 project, $4,000,000 was funded through the American Reinvestment and Recovery Act (ARRA, or “Stimulus”). This funding was part of the federal government’s economic stimulus program, with loans issued under favorable conditions to stimulate infrastructure and capital project investment. The ARRA funding agreement provided 50% of the loan in forgiven principal, and the remaining 50% of principal payment bearing 0% interest. This resulted in $2,000,000 of net revenue to the CIP in addition to interest savings. The RWP’s operating fund is maintained to pay for operations, administration, debt service, equipment replacement contributions and capital contributions associated with the RWP. The operating fund derives the majority of its revenue from regional wastewater user fees that are collected by the City of Eugene and City of Springfield from their respective customers. In accordance with the MWMC 2005 Financial Plan, funds remaining in excess of budgeted operational expenditures can be transferred from the operating fund to the Capital Reserve fund. The Capital Reserve accumulates revenue to help fund capital projects, including major rehabilitation, to reduce the amount of borrowing necessary to finance capital projects. Metropolitan Wastewater Management Commission Capital Improvement Program Page 38 Preliminary FY 14-15 BUDGET AND CIP The AMCP consists of three programs managed by the City of Eugene and funded through regional wastewater user fees: The Equipment Replacement Program, which funds replacement of equipment valued at or over $10,000 but less than $200,000; The Major Rehabilitation Program, which funds rehabilitation of plant infrastructure such as roof replacements, structure coatings, etc.; and the Major Capital Outlay Program for capital items (new or replacement) with costs greater than $200,000. The MWMC assets are tracked throughout their lifecycle using asset management tracking software. Based on this information, the three AMCP program annual budgets are established and projected for the 5-Year Capital Plan. For planning purposes, the MWMC must consider market changes that drive capital project expenditures. Specifically, the MWMC capital plan reflects projected price changes over time that affect the cost of materials and services. Until about 2003, the 20-city average Engineering News Record Construction Cost Index (ENRCCI) served as a good predictor for future inflation and was used for projecting the MWMC’s construction costs. Accordingly, construction cost projections considered in the 2004 FP were based on January 2004, 20-city average ENRCCI. However, in the period 2004 through 2008, construction inflation accelerated nationally with local construction cost inflation accelerating even faster than the national average. City of Springfield staff identified this trend in 2005 and subsequently modified their inflationary projection methodology accordingly. In early 2006, the MWMC hired the consulting firm CH2M Hill to perform a comprehensive update of project cost estimates. Following the 2006 update, the RWP’s CIP assumed a general price increase of five-percent (5%) per-year over the planning period. However, the MWMC continues to monitor inflationary trends to inform our forecasting of capital improvement costs. Recent construction bidding remains favorable when compared to engineering estimates. Accordingly, based on historical inflationary rates from 2006 through 2013, capital project budgets now reflect a 4% annual inflationary factor in the FY 14-15 Budget and 5-year Capital Plan. Regional Wastewater Capital Program Status and Budget CIP Project Status and Budget The FY 14-15 CIP Budget is comprised of the individual budgets for each of the active (carryover) or starting (new) projects in the first year of the 5-Year Capital Plan. The total of these FY 14-15 project budgets is $13,266,247. Each capital project represented in the FY 14-15 Budget is described in detail in a CIP project sheet that can be found at the end of this document. Each project sheet provides a description of the project, the project’s purpose and driver (the reason for the project), the funding schedule for the project, and the project’s expected final cost and cash flow. For those projects that are in progress, a short status report is included on the project sheet. Metropolitan Wastewater Management Commission Capital Improvement Program Page 39 Preliminary FY 14-15 BUDGET AND CIP Completed Capital Projects In FY 13-14, the following three capital projects are projected to be completed and closed out. No CIP project sheets are included for these projects because there is no expected carryover of project funds to FY 14-15.  Line Biosolids Lagoon – Phase 4  Odorous Air Treatment – Phase 2  Outfall Mixing Zone Study Carryover Capital Projects The remaining funding for active capital projects in FY 13-14 is carried forward to the FY 14-15 Budget. The on-going carryover projects are:  Wet Weather Planning/ Capacity Management Operations and Maintenance (CMOM)  Facilities Plan Engineering Services  Influent Pumping and Headworks Expansion*  Sodium Hypochlorite Conversion  Primary Sludge Thickening  Poplar Harvest Management Services MU-1  Tertiary Filtration – Phase 1*  Thermal Load Mitigation: Pre-Implementation  Thermal Load Mitigation: Implementation 1  Repair/Partial Replacement of Biosolids Force Main  WPCF Lagoon Removal / Decommissioning Overall, the budgeting for these projects follows, and is consistent with, the 2006 CH2M Hill estimated cost of the listed capital projects. Landscape design and implementation for the Water Pollution Control Facility is funded through projects identified with an asterisk (*) above. New Projects The following new project has been added in the FY 14-15 Capital Budget:  Increase Digestion Capacity  Operations and Maintenance Building Improvements Metropolitan Wastewater Management Commission Capital Improvement Program Page 40 Preliminary FY 14-15 BUDGET AND CIP FY 14-15 Capital Budget Summary (Exhibit 12) Exhibit 12 below displays the adjusted budget and end-of-year expenditure estimates for FY 13- 14, the amount of funding projected to be carried over to FY 14-15 and additional funding for existing and/or new projects in FY 14-15. EXHIBIT 12 Summary of FY 14-15 MWMC Construction Program Capital Budget Notes: (1) Thermal Load Mitigation: Implementation 1 budget includes Mill Race Sponsorship ($200,000) and Cedar Creek Sponsorship ($250,000). (2) The Tertiary Filtration – Phase 2 project was rescheduled to start in FY 17-18 instead of FY 13-14. (3) The Increase Digester Capacity project previously paid for a portion of landscape services in FY 11-12 and FY 12-13. FY 13-14 ADJUSTED BUDGET FY 13-14 ESTIMATED ACTUALS FY 13-14 CARRYOVER TO FY 14-15 NEW FUNDING FOR FY 14-15 TOTAL FY 14-15 BUDGET Projects to be Completed in FY 13-14 Line Biosolids Lagoon - Phase 4 2,150,950 1,220,000 0 0 0 Odorous Air - Phase 2 176,555 7,000 0 0 0 Outfall Mixing Zone Study 198,173 198,173 0 0 0 Projects to be Carried Over to FY 14-15 Wet Weather Planning / CMOM 214,504 118,000 96,504 0 96,504 Facilities Plan Engineering Services 103,310 103,310 0 70,000 70,000 Influent Pumping and Headworks Expansion 304,051 96,000 208,051 0 208,051 Sodium Hypochlorite Conversion 3,233,690 170,000 2,063,690 0 2,063,690 Primary Sludge Thickening 306,504 270,000 36,504 0 36,504 Poplar Harvest Management Services MU-1 261,700 100,000 161,700 0 161,700 Tertiary Filtration - Phase 1 518,882 152,000 200,000 0 200,000 Thermal Load Mitigation: Pre-Implementation 661,143 275,000 275,000 0 275,000 Thermal Load Mitigation: Implementation 1 (1)617,928 184,000 433,928 0 433,928 Repair/ Replacement of Biosolids Force Main 1,425,870 510,000 915,870 0 915,870 Tertiary Filtration - Phase 2 (2)3,000,000 0 0 0 0 WPCF Lagoon Removal / Decommissioning 1,500,000 295,000 1,205,000 3,500,000 4,705,000 Newly Budgeted Projects for FY 14-15 Increase Digestion Capacity (3)0 0 0 2,800,000 2,800,000 Operations & Maint Building Improvements 0 0 0 1,300,000 1,300,000 TOTAL $14,673,260 $3,698,483 $5,596,247 $7,670,000 $13,266,247 Metropolitan Wastewater Management Commission Capital Improvement Program Page 41 Preliminary FY 14-15 BUDGET AND CIP FY 14-15 Asset Management Capital Project Status and Budget Equipment Replacement Program - Budget The FY 14-15 Capital Programs budget includes $439,400 in Equipment Replacement purchases that are identified on the table below. Lab Mass Spectrometer. Replacement of 11 year old spectrometer in the main laboratory. Ammonia Analyzer at Final Treatment. An on-line ammonia analyzer provides for continuous measurement and monitoring of ammonia in the plant effluent. The effluent ammonia concentration values are used for ongoing process control and to verify that the plant is in compliance with the NPDES permit discharge limit for ammonia. The existing analyzer has been in service for 11 years. The new analyzer will provide monitoring capabilities for 10 additional process control parameters. PA Alarm and Security Camera System. An alarm system project will consist of upgrading audio/visual alarm in event of potential explosive conditions at pretreatment and digester process areas. Replacement is also planned for the camera system which provides remote monitoring of plant processes and assists with security. Fleet Replacement. Consists of replacement of one pickup truck and one utility vehicle. Variable Frequency Drives (2) at Secondary Treatment. Provides for replacement of variable frequency drives for two return activated sludge (RAS) pumps. The RAS pumping is a critical function of the activated sludge treatment process. The existing VFD’s have been in service for more than 16 years and replacement will improve reliability of critical process equipment. Electric Motor at Willakenzie Pump Station. The original 300 hp electric motors for the pumps at MWMC’s largest pump station are approaching the end of their useful life. One motor will be replaced each year over the next 4 years. Computer Server Replacement. Scheduled replacement of one network file server. Project Description FY 14-15 Budget Lab Mass Spectrometer 165,000 Ammonia Analyzer 70,000 PA Alarm and Security Camera System 57,100 Fleet Replacement 48,600 Variable Frequency Drives 46,700 Electric Motor 40,000 Computer Server Replacement 12,000 Total $439,400 Equipment Replacement Metropolitan Wastewater Management Commission Capital Improvement Program Page 42 Preliminary FY 14-15 BUDGET AND CIP Major Rehabilitation Program - Budget The FY 14-15 Capital Programs budget includes $1,234,000 for Major Rehabilitation projects that are identified on the table below. Laboratory Rehabilitation. Replace/repair 30 year old flooring, plumbing, electrical, windows, fume hoods, and counter tops in the north section of the main laboratory. Air Drying Bed Resurfacing. The biosolids drying process takes place on 13 asphalt drying beds over a 25 acre area. Many of the beds require resurfacing to extend their useful life. In FY 13-14 two beds were resurfaced. In FY 14-15 two additional beds will be resurfaced. Jenbacher Cogeneration Upper Engine Rebuild. The regional treatment plant’s cogeneration system provides power equivalent to approximately 55% of the plant’s power needs. Continuous power generation will require a regularly scheduled 20,000 hour engine rebuilding in FY 14-15. East Bank Interceptor (EBI) Vaults. A prior inspection of the EBI vaults/piping identified exposed reinforcing steel in two vaults. Rehabilitation repairs will be completed to prevent corrosion and premature failure. Operations/Maintenance Building Improvements. This expenditure will go towards miscellaneous improvements, repairs, and renovations to improve the functionality and usefulness of existing buildings. Grit Chamber Metal Rails Coating. The regional treatment plant’s grit collectors move settled grit which is dewatered and disposed. Two collectors were rebuilt in FY 13-14 and two more will be rebuilt in FY 14-15. Recoating the metal rails of the collectors is a part of this rebuild project. Major Capital Outlay There are no requests for Major Capital Outlay funding in FY 14-15 Project Description FY 14-15 Budget Laboratory Rehabilitation 800,000 Air Drying Bed Resurfacing (2 beds)169,000 Jenbacher Cogeneration Engine Rebuild 100,000 East Bay Interceptor (EBI) Vaults 75,000 Operations/Maintenance Building Improvements 50,000 Grit Chamber Metal Rails Coating 40,000 Total $1,234,000 Major Rehabilitation Metropolitan Wastewater Management Commission Capital Improvement Program Page 43 Preliminary FY 14-15 BUDGET AND CIP 5-Year Capital Plan (Exhibit 13) For each fiscal planning cycle, only the first year of budget authority is appropriated. The remaining four years of the CIP and AMCP Capital Plans are important and useful for fiscal and work planning purposes. However, it is important to note that the funds in the outer years of the Capital Plan are only planned and not appropriated. Also, the full amount of obligated multi-year project costs is often 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 estimated project cost. For these multi-year contracts, unspent funds from the first fiscal year will typically be carried over to the next fiscal year until the project is completed. Accordingly, the RWP Capital Plan presented herein is a subsequent extension of the plan presented in the adopted FY 13-14 Budget that has been carried forward by one year. However, changes to the plan typically occur from year to year as more information becomes available. Additionally, RWP staff were further informed by a Partial Facilites Plan Update that was completed in FY 13-14. The Partial Facilities Plan Update included assessments of the following projects using the best available data:  Increased Digestion Capacity  Waste Activated Sludge Thickening  Tertiary Filtration – Phase 2 Based on these assessments, the following changes to the 5-Year Capital Program Plan were made:  The Increased Digestion Capacity Project was rescheduled to start in FY 14-15 instead of FY 15-16  The Waste Activated Sludge Thickening Project was rescheduled to start in FY 21-22 instead of FY 15-16  The Tertiary Filtration – Phase 2 Project was rescheduled to start in FY 17-18 instead of FY 13-14 In addition to the above changes, the planned budgets for all three phases of the MWMC’s Thermal Load Mitigation Program (Pre-Implementation, Implementation – Phase 1, and Implementation – Phase 2) have been restructured in this year’s Capital Plan to better respond to the changing status of Oregon’s temperature standard and that of the Willamette Temperature Total Mass Daily Load (TMDL). Exhibit 13 displays the MWMC 5-Year Capital Plan programs budget, which includes $61,569,247 in planned capital projects and $10,040,600 in planned asset management capital projects for an overall 5-Year Capital Plan Budget of $71,609,847. Metropolitan Wastewater Management Commission Capital Improvement Program Page 44 Preliminary FY 14-15 BUDGET AND CIP EXHIBIT 13 Regional Wastewater 5-Year Capital Programs Notes: (1) This project represents the transition from Effluent Reuse to a more comprehensive thermal load reduction strategy that includes, but is not limited to, a Recycled Water Program. (2) A detailed planning study to determine the scope and budget for this project will be conducted in FY 14-15. FY 14-15 FY 15-16 FY 16-17 FY 17-18 FY 18-19 TOTAL CAPITAL PROJECTS Biosolids Management Repair / Replacement of Biosolids Force Main 915,870 915,870 Poplar Harvest Management Services MU1 161,700 161,700 Non-Process Facilities and Facilities Planning Capacity Mgmt Operations Maint (CMOM)96,504 96,504 Facility Plan Engineering Services 70,000 70,000 70,000 70,000 70,000 350,000 Comprehensive Facility Plan Update 726,000 762,000 1,488,000 Conveyance Systems Influent Pumping & Headworks 208,051 208,051 Plant Performance Improvements Sodium Hypochlorite Conversion 2,063,690 2,063,690 Primary Sludge Thickening 36,504 36,504 Tertiary Filtration - Phase 1 200,000 200,000 Tertiary Filtration - Phase 2 2,800,000 7,700,000 10,500,000 WPCF Lagoon Removal / Decommissioning 4,705,000 4,705,000 Thermal Load Mitigation: Pre-Implementation (1)275,000 200,000 475,000 Thermal Load Mitigation: Implementation 1 (1)433,928 100,000 484,000 4,600,000 4,581,000 10,198,928 Thermal Load Mitigation: Implementation 2 (1)2,000,000 2,000,000 Increase Digestion Capacity 2,800,000 6,370,000 9,170,000 Aeration Basin Improvements - Phase 2 2,600,000 5,300,000 5,300,000 13,200,000 Operations & Maintenance Building Improvements (2)1,300,000 4,500,000 5,800,000 TOTAL CAPITAL PROJECTS 13,266,247 6,740,000 8,380,000 13,532,000 19,651,000 61,569,247 ASSET MANAGEMENT Equipment Replacement 439,400 1,602,300 843,600 1,026,800 1,748,800 5,660,900 Major Rehab 1,234,000 196,000 840,000 892,700 667,000 3,829,700 Major Capital Outlay 550,000 550,000 TOTAL ASSET MANAGEMENT 1,673,400 1,798,300 2,233,600 1,919,500 2,415,800 10,040,600 TOTAL CAPITAL IMPROVEMENTS $14,939,647 $8,538,300 $10,613,600 $15,451,500 $22,066,800 $71,609,847 REGIONAL WASTEWATER PROGRAM BUDGET CAPITAL PROGRAM PROJECT SHEETS   Metropolitan Wastewater Management Commission Capital Improvement Program Page 45 Preliminary FY 14-15 BUDGET AND CIP 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 can’t be removed by an acid washing method. The existing 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 after further evaluation of the system. Status: As of January 9, 2014, the project is in the design development phase using consultant services. Construction is anticipated to begin in the summer of 2014. Justification: Maintain system reliability. The project will rehabilitate portions of the existing MWMC biosolids conveyance system (WPCF to BMF). Project Driver: Maintain system functionality of the biosolids conveyance system. Project Trigger: Functionality and capacity issues within the existing pipeline. Project Type: 100% Rehabilitation Estimated Project Cost: $1,500,000 Expected Cash Flow: FY 11-12 = $364; FY 12-13 = $73,766; FY 13-14 = $510,000; FY 14-15 = $915,870 Expenditure/Category: Prior Years 2013-14 Est. Act. 2014-15 2015-16 2016-17 2017-18 2018-19 Total Design/Construction $74,130 $510,000 $915,870 $0 $0 $0 $0 $1,500,000 Other $0 $0 $0 $0 $0 $0 $0 $0 Total Cost $74,130 $510,000 $915,870 $0 $0 $0 $0 $1,500,000 Metropolitan Wastewater Management Commission Capital Improvement Program Page 46 Preliminary FY 14-15 BUDGET AND CIP POPLAR HARVEST MANAGEMENT SERVICES MU-1 Description: This project ensures the completed harvest of Management Unit 1 (MU1) trees before the 12-year rotation limit in spring 2016. MU1 hosts 156 acres of Phase 1 trees planted in 2004. Status: 33% completed. An initial trial harvest of 52 acres was completed in fall 2013 at Year 10 of growth. The remaining 104 acres will be harvested in Years 11 and 12 of growth. Justification: Land use regulatory requirement for operation of the Biocycle Farm. Project Driver: Land Use Compatibility Statement (LUCS) issued by Lane County. Project Trigger: Oregon ORS/OAR and NRCS rules dictating that exclusive farm use lands and farmed wetland status agricultural lands requiring agriculturally managed hybrid poplar plantations must be limited to a 12-year rotation duration. Project Type: 100% Performance Improvement SDC Eligibility: 0% Estimated Project Cost: $261,700 for initial MU1 harvest and administration. Expected Cash Flow: FY 13-14 = $100,000; FY 14-15 = $100,000; FY 15-16 = $61,700 Expenditure/Category: Prior Years Est. Act. 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 Total Design/Construction $0 $100,000 $161,000 $0 $0 $0 $0 $261,700 Other $0 $0 $0 $0 $0 $0 $0 $0 Total Cost $0 $100,000 $161,000 $0 $0 $0 $0 $261,700 Metropolitan Wastewater Management Commission Capital Improvement Program Page 47 Preliminary FY 14-15 BUDGET AND CIP CAPACITY MANAGEMENT, OPERATIONS, AND MAINTENANCE (CMOM) Description: This project (formerly identified as the WWFMP Update project) supports and guides ongoing collection system capacity management, operations and maintenance (CMOM) programs to address Inflow and Infiltration (I/I) and sanitary sewer overflows (SSOs). The MWMC’s NPDES permit requires wet weather planning and prohibits SSOs. DEQ’s SSO Enforcement Internal Management Directive identifies CMOM as an acceptable programmatic approach to help ensure compliance. The MWMC CMOM program provides staff resources and engineering consultant services to support the implementation of CMOM programs owned and operated by the two partner cities within the MWMC’s service area (i.e., Eugene and Springfield). The regional support funded through this project provides or supports workshop organization and facilitation, guidance documentation, technical analysis, standards establishment, and CMOM gap analysis assistance. Status: Collection system rehabilitation work as identified in the 2001 WWFMP has been completed. The regional collection system hydraulic model has been updated. Regional staff has facilitated workshops and meetings to charter a standard CMOM approach for both partner cities. Both partner cities have completed a CMOM gap analysis to identify the needed effort to implement their respective CMOM programs. The Regional Wastewater Policy Team has approved the MWMC’s CMOM framework and guidance documents. CH2M Hill has completed an evaluation of historical collection system flow data to estimate the I/I contributions from each city’s collection system. Project Driver: Meet new NPDES requirements concerning SSOs, wet weather planning, and I/I reduction through a CMOM program approach. Project Trigger: Address NPDES Permit General Conditions requirements related to SSOs and I/I. 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 = $14,724; FY 10-11 = $7,538; FY 11-12 = $26,909; FY 12-13 = $123,251; FY 13-14 = $118,000; FY 14-15 = $96,504 Expenditure/Category: Prior Years 2013-14 Est. Act. 2014-15 2015-16 2016-17 2017-18 2018-19 Total Design/Construction $0 $0 $0 $0 $0 $0 $0 $0 Other $317,496 $ 118,000 $96,504 $0 $0 $0 $0 $532,000 Total Cost $317,496 $ 118,000 $96,504 $0 $0 $0 $0 $532,000 Metropolitan Wastewater Management Commission Capital Improvement Program Page 48 Preliminary FY 14-15 BUDGET AND CIP 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 included, plant flow and load projection, CIP project prioritization and schedule analysis, and regulatory evaluation and analysis. Justification: Projects were developed to varying levels of specificity in the 20-Year Facilities Plan and there is an on-going need for on-going technical and engineering resources 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 plant in terms of treatment processes and hydraulics. Project Driver: On-going goal to efficiently follow and accommodate the upgrades resulting from the 20-Year Facilities Plan. Project Trigger: On-going need. Estimated Project Cost: $721,205 Expected Cash Flow: FY 06-07 = $50,000; FY 07-08 = $50,044; FY 08-09 = $25,467; FY 09-10 = $31,829; FY 10-11 = $69,419; FY 11-12 = $8,699; FY 12-13 = $32,437; FY 13-14 = $103,310; FY 14-15 = $70,000; FY 15-16 = $70,000; FY 16-17 = $70,000; FY 17-18 = $70,000; FY 18-19=$70,000 Expenditure/Category: Prior Years 2013-14 Est. Act. 2014-15 2015-16 2016-17 2017-18 2018-19 Total Design/Construction $0 $0 $0 $0 $0 $0 $0 $0 Other $267,895 $ 103,310 $70,000 $70,000 $70,000 $70,000 $70,000 $721,205 Total Cost $267,895 $103,310 $70,000 $70,000 $70,000 $70,000 $70,000 $721,205 Metropolitan Wastewater Management Commission Capital Improvement Program Page 49 Preliminary FY 14-15 BUDGET AND CIP COMPREHENSIVE FACILITIES PLAN Description: The Comprehensive Facilities Plan effort will consider a 20-year planning horizon and will draw on the most recent plant data, regulatory landscape, and available technology in order to ensure the MWMC continues to meet future regulations, environmental standards, and customer needs. Status: Planned for future implementation. Justification: Plan future conveyance and treatment upgrades and/or expansions to meet regulatory requirements, preserve public health and regional water quality standards. Project Driver: Planning for facilities required to ensure continuing compliance with regulations, and meet customer services expectations in a manner that that will achieve, sustain, and promote balance between community, environmental, and economic needs. Project Trigger: Planning cycle initiated under the 2004 Facilities Plan and later modified to match evolving NPDES permit renewal schedule, now estimated for 2017. Project Type: Facilities Plan Improvement SDC Eligibility: 21% Estimated Project Cost: $1,488,000 Expected Cash Flow: FY 16-17 = $726,000; FY 17-18 = $762,000 Expenditure/Category: Prior Years 2013-14. Est. Act. 2014-15 2015-16 2016-17 2017-18 2018-19 Total Design/Construction $0 $0 $0 $0 $0 $0 $0 $0 Other $0 $0 $0 $0 $726,000 $762,000 $0 $1,488,000 Total Cost $0 $0 $0 $0 $726,000 $762,000 $0 $1,488,000 Metropolitan Wastewater Management Commission Capital Improvement Program Page 50 Preliminary FY 14-15 BUDGET AND CIP INFLUENT PUMPING IMPROVEMENTS AND HEADWORKS EXPANSION Description: This project provides influent pumping improvements and headworks expansion required to accommodate planning thru year 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 Water Pollution Control Facility (WPCF), improvements to the regional force main system at two off-site locations, and landscaping upgrades. Due to the time critical nature of this project, it was delivered using a Construction Manager/General Contractor (CM/GC) project delivery process that the Commission approved. Status: Construction was completed by Wildish at the end of 2009 with some punch list items addressed in 2010. The remaining budgeted project money will help fund improvements to an influent gate system in 2014 and follow up inspection in 2015 of the pipe-liner (warranty work). Justification: Improved influent pumping and headworks hydraulic capacity are required to increase total plant influent hydraulic capacity to 277 mgd (the forecasted year 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 year 2010. Project Trigger: Collection system computer model estimates the current wet weather peak flow to plant to be 264 mgd. The 2009 upgrades increased the headworks hydraulic capacity from 175 mgd to 277 mgd (peak flows). 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 = 14,950,783; FY 10-11 = $482,947; FY 11-12 = $135,300; FY 12-13 = $12,205; FY 13-14 = $96,000; FY 14-15 = $208,051 Expenditure/Category: Prior Years 2013-14 Est. Act. 2014-15 2015-16 2016-17 2017-18 2018-19 Total Design/Construction $27,749,949 $96,000 $208,051 $0 $0 $0 $0 $28,054,000 Other $0 $0 $0 $0 $0 $0 $0 $0 Total Cost $27,749,949 $96,000 $208,051 $0 $0 $0 $0 $28,054,000 Metropolitan Wastewater Management Commission Capital Improvement Program Page 51 Preliminary FY 14-15 BUDGET AND CIP SODIUM HYPOCHLORITE CONVERSION Description: Convert the 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 was installed by 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 project budget below includes $80,000 allocated to the project for the boat wastewater dump that was reimbursed by the state agency after construction was completed. Status: The converted disinfection system has been in operation since March of 2010. Update as of January 3, 2014: The contractor and product provider submitted recommendations in 2013 to change the sodium hypochlorite injection/mixing system that deviated from the construction contract documents and staff rejected the construction submittal. On December 23, 2013, the contractor requested information from staff and the contractor group hopes to develop an acceptable sodium hypochlorite injection/mixing system. 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 (peak flows). The high rate disinfection of the primary effluent is a key component of the primary/secondary split treatment process, which is needed for meeting peak flow capacity needs of the wastewater treatment plant. Project Driver: Operator and community safety issues and meeting flow capacity requirements for peak flows and year around final treatment/disinfection. Project Trigger: Phasing with other related MWMC projects and need to meet peak flow treatment requirements. Project Type: 50% Capacity; 50% Performance Improvement SDC Eligibility: 25% Estimated Project Cost: $6.8 million (reduced from past budgeting) Expected Cash Flow: FY 06-07 = $1,353; FY 07-08 = $594,520; FY 08-09 = $3,319,347; FY 09-10 = $(102,501); FY 10-11 = $180,326; FY 11-12 = $385,289; FY 12-13 = $187,976; FY 13-14 = $170,000; FY 14-15 = $2,063,690 Expenditure/Category: Prior Years 2013-14 Est. Act. 2014-15 2015-16 2016-17 2017-18 2018-19 Total Design/Construction $4,566,310 $170,000 $2,063,690 $0 $0 $0 $0 $6,800,000 Other $0 $0 $0 $0 $0 $0 $0 $0 Total Cost $4,566,310 $170,000 $2,063,690 $0 $0 $0 $0 $6,800,000 Metropolitan Wastewater Management Commission Capital Improvement Program Page 52 Preliminary FY 14-15 BUDGET AND CIP PRIMARY SLUDGE THICKENING Description: Installation of primary sludge gravity thickening facilities with cover, upgrade primary sludge pumping and piping systems, install supernatant overflow pumping and piping, and thickened sludge piping/pumping to digesters. Also, this project helped with funding for the treatment plant landscape improvements required for project permits. Status: As of January 10, 2014, the project team is collecting system performance data for evaluation and reporting to the DEQ related to the Clean Water State Revolving Fund (CWSRF) loan to the MWMC. Justification: Optimize digester capacity and performance through provision of thicker sludge feed. Also to thicken sludge in dedicated tank outside of the primary clarifies to increase primary treatment capacity and avoid washout of solids during peak flow event. 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 adding a fourth digester. Project Type: 100% Capacity Improvement SDC Eligibility: 65% Estimated Project Cost: $4,666,665 (Revised budget and the MWMC received a CWSRF loan for the primary sludge thickening project). Expected Cash Flow: FY 07-08 = $9,730; FY 08-09 = $40,606 FY 09-10 = $501,876; FY 10-11 = $375,533; FY 11-12 = $2,029,935; FY 12-13 = $1,402,481; FY 13-14 = $270,000; FY 14-15 = $36,504 Expenditure/Category: Prior Years 2013-14 Est. Act. 2014-15 2015-16 2016-17 2017-18 2018-19 Total Design/Construction $4,360,161 $270,000 $36,504 $0 $0 $0 $0 $4,666,665 Other $0 $0 $0 $0 $0 $0 $0 $0 Total Cost $4,360,161 $270,000 $36,504 $0 $0 $0 $0 $4,666,665 Metropolitan Wastewater Management Commission Capital Improvement Program Page 53 Preliminary FY 14-15 BUDGET AND CIP 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 installed filter system technology sufficient for 10 mgd of treatment. Future projects will install the remaining filter technology. Some of the project funding will support the plant-wide landscape upgrades. Status: As of January 2014, the Tertiary Filtration (Phase 1) project has past the one-year construction warranty phase and the MWMC received DEQ acceptance on September 19, 2013 related to the clean water state revolving fund (CWSRF) loan. Some of the project budget will be supporting the plant-wide landscape agreement in 2013 and 2014. Justification: Up to 10 mgd of filtration is required in the first phase to meet dry season mass limits, with the need for filtration increasing up to 30 mgd by the end of the planning period (year 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. 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 options can be developed. Improvement SDC Eligibility: 42% Estimated Project Cost: Additional budget reduction from $11,500,000 (through June 30, 2013) to $9,618,774 (Note: Part of the project money will support the treatment plant landscape upgrades. Also, MWMC received a DEQ clean water state revolving fund (CWSRF) loan for the tertiary filtration project). Expected Cash Flow: FY 07-08 = $236,186; FY 08-09 = $554,241; FY 09-10 = $647,844; FY 10-11 = $3,534,429; FY 11-12 = $4,097,956; FY 12-13 = $196,118; FY 13-14 = $152,000; FY 14-15 = $200,000 (design, construction, landscape, administration, etc.) Expenditure/Category: Prior Years 2013-14 Est. Act. 2014-15 2015-16 2016-17 2017-18 2018-19 Total Design/Construction $9,266,774 $152,000 $200,000 $0 $0 $0 $0 $9,618,774 Other $0 $0 $0 $0 $0 $0 $0 $0 Total Cost $9,266,774 $152,000 $200,000 $0 $0 $0 $0 $9,618,774 Metropolitan Wastewater Management Commission Capital Improvement Program Page 54 Preliminary FY 14-15 BUDGET AND CIP TERTIARY FILTRATION - PHASE 2 Description: The phased work program will install infrastructure/support facilities for 30 mgd of filters for tertiary filtration of secondary treated effluent. Phase 2 is planned to install filter system technology sufficient for another 10 mgd of treatment that will increase the total filtration capacity to 20 mgd. The Phase 3 project will install the remaining filtration technology to meet the capacity needs identified in the 2004 MWMC Facilities Plan. Status: Tertiary Filtration (Phase 2) project is anticipated to start design development in fiscal year 17-18. The MWMC has an existing equipment agreement (ending October 2017) to allow for additional filtration equipment at a defined price. Justification: The 2004 MWMC Facilities Plan proposes phasing filters on a phased work program. Filtration provides high quality secondary effluent to help meet permit requirements and potential Level 4 reuse water. 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 total suspended solids (TSS): Dry weather maximum month flow in excess of 49 mgd. Also, provide higher quality effluent so that reuse can be developed. Improvement SDC Eligibility: 41.6% Estimated Project Cost: $10,500,000 Expected Cash Flow: FY 17-18 = $1,600,000; FY 18-19 = $4,600,000; FY 19-20 = $4,300,000 Expenditure/Category: Prior Years 2013-14 Est. Act. 2014-15 2015-16 2016-17 2017-18 2018-19 Total Design/Construction $0 $0 $0 $0 $0 $2,800,000 $7,700,000 $10,500,000 Other $0 $0 $0 $0 $0 $0 $0 $0 Total Cost $0 $0 $0 $0 $0 $2,800,000 $7,700,000 $10,500,000 Metropolitan Wastewater Management Commission Capital Improvement Program Page 55 Preliminary FY 14-15 BUDGET AND CIP WPCF ONSITE LAGOON Description: This project decommissions the existing biosolids lagoon at the Water Pollution Control Facility (WPCF) and adds solids handling facilities to manage biosolids during digester cleaning events. Status: As of January 8, 2014: Planning stage. Staff plans to seek consultant services for the MWMC in 2014. Justification: The lagoon was constructed in 1979 as a temporary biosolids storage facility while the Biosolids Management Facility was under construction. Since that time it has also served as a temporary storage lagoon to support digester cleaning operations. However, the lagoon no longer serves the purpose for which it was originally constructed and does not meet current design standards for wastewater lagoons. Project Driver: The lagoon can no longer provide the biosolids capacity for which it was intended nor cost effectively continue to support digester cleaning operations. The lagoon is almost full of accumulated rainwater and residual solids. Therefore, the decision was made to decommission the lagoon and provide up to date facilities to support digester cleaning operations. Project Trigger: The WPCF lagoon no longer functions as originally designed. Estimated Project Cost: $5,000,000 Improvement SDC Eligibility: Not applicable Expected Cash Flow: FY 13-14 = $295,000; FY 14-15 = $3,400,000; FY 15-16 = $1,305,000 Expenditure/Category: Prior Years 2013-14 Est. Act. 2014-15 2015-16 2016-17 2017-18 2018-19 Total Design/Construction $0 $295,000 $4,705,000 $0 $0 $0 $0 $5,000,000 Other $0 $0 $0 $0 $0 $0 $0 $0 Total Cost $0 $295,000 $4,705,000 $0 $0 $0 $0 $5,000,000 Metropolitan Wastewater Management Commission Capital Improvement Program Page 56 Preliminary FY 14-15 BUDGET AND CIP THERMAL LOAD MITIGATION PRE-IMPLEMENTATION Description: This project includes the phased recycled water planning effort and feasibility studies, study and planning of associated thermal load mitigation measures such as riparian shading and water quality trading credit activities, and permit negotiation and legal strategy related to the temperature TMDL and NPDES permit renewal. Status: Currently in feasibility study and assessment of conceptual recycled water use projects and ongoing permit and TMDL compliance coordination. Justification: Provides planning of infrastructure, projects, and collaborative agreements needed so that thermal loads are reduced on the Willamette River while providing additional environmental and community benefits. Project Driver: Address NPDES permit thermal load compliance related to Willamette River total maximum daily loads (TMDL) temperature requirements. Project Trigger: Compliance with Oregon DEQ TMDL settlement requirement. Project Type: 100% Performance Improvement SDC Eligibility: 26% Estimated Project Cost: $750,000 Expected Cash Flow: FY 13-14 = $ 275,000; FY 14-15 =$200,000; FY 15-16=$125,000; FY 16-17=$85,000; FY 17-18=$40,000; FY 18-19=$25,000 Expenditure/Category: Prior Years 2013-14 Est. Act. 2014-15 2015-16 2016-17 2017-18 2018-19 Total Design/Construction $0 $0 $0 $0 $0 $0 $0 $0 Other $0 $275,000 $275,000 $ 200,000 $0 $0 $0 $750,000 Total Cost $0 $275,000 $275,000 $200,000 $0 $0 $0 $750,000 Metropolitan Wastewater Management Commission Capital Improvement Program Page 57 Preliminary FY 14-15 BUDGET AND CIP THERMAL LOAD MITIGATION – IMPLEMENTATION 1 Description: This project implements thermal load mitigation projects strategized for regulatory compliance and additional environmental and community benefits. The projects may include recycled water use expansion at MWMC and/or community partner facilities, riparian shade projects (initially being implemented on Cedar Creek and Springfield Mill Race), and potentially water quality trading credit strategies through shade credit investments and collaborative partnerships for permit compliance. The recycled water projects under consideration include: Class D storage and use at the Biocycle Farm and Beneficial Reuse Site and Class C industrial use at neighboring aggregate company facilities. Project components may include additional treatment, disinfection, pumping, pipeline, and distribution/irrigation systems. Status: Riparian shade projects are currently being implemented under a 25-year contract agreement with The Freshwater Trust. Additional construction needs are being evaluated under the Thermal Load Mitigation: Pre-Implementation Project. Justification: Implementation of the thermal load compliance strategy developed under pre- implementation planning phase. Project Driver: Address NPDES permit thermal load compliance related to Willamette River total maximum daily loads (TMDL) temperature requirements. Project Trigger: Compliance with Oregon DEQ TMDL settlement requirement Project Type: 100% Performance Improvement SDC Eligibility: 26% Estimated Project Cost: $10,382,000 Expected Cash Flow: FY 13-14 = $184,000; FY 14-15 =$320,000; FY 15-16 = $50,000; FY 16-17= $650,000; FY 17-18=$4,500,000; FY 18-19=$4,678,000 Expenditure/Category: Prior Years 2013-14 Est. Act. 2014-15 2015-16 2016-17 2017-18 2018-19 Total Design/Construction $0 $184,000 $433,000 $100,000 $484,000 $4,600,000 $4,581,000 $10,382,000 Other $0 $0 $0 $0 $0 $0 $0 $0 Total Cost $0 $184,000 $433,000 $100,000 $484,000 $4,600,000 $4,581,000 $10,382,000 Metropolitan Wastewater Management Commission Capital Improvement Program Page 58 Preliminary FY 14-15 BUDGET AND CIP THERMAL LOAD MITIGATION – IMPLEMENTATION 2 Description: This project anticipates future expansion of recycled water uses, riparian restoration, and/or other thermal load and watershed management strategies for regulatory compliance and environmental and community benefits. These projects are subject to the outcomes of the regulatory scenarios and goals associated with changing conditions of TMDL implementation, community and climatic factors, and emerging water quality/quantity needs. Status: To be planned. Justification: Ongoing fulfillment of thermal load mitigation strategic plans. Project Driver: Address NPDES permit thermal load compliance related to Willamette River total maximum daily loads (TMDL) temperature requirements, other emerging water quality regulatory drivers, and community needs. Project Trigger: Compliance with NPDES discharge permit. Project Type: 100% Performance Improvement SDC Eligibility: 26% Estimated Project Cost: $2,000,000 (plus up to $15,000,000 anticipated project need in the out-years FY 19-20 and beyond for a total project cost of $17,000,000). Expected Cash Flow: FY 18-19 = $2,000,000 Expenditure/Category: Prior Years 2013-14 Est. Act 2014-15 2015-16 2016-17 2017-18 2018-19 Total Design/Construction $0 $0 $0 $0 $0 $0 $2,000,000 $2,000,000 Other $0 $0 $0 $0 $0 $0 $0 $0 Total Cost $0 $0 $0 $0 $0 $0 $2,000,000 $2,000,000 Metropolitan Wastewater Management Commission Capital Improvement Program Page 59 Preliminary FY 14-15 BUDGET AND CIP INCREASE DIGESTION CAPACITY Description: Installation of a fourth digester for expanded production of Class B biosolids. This project also included supporting the plant-wide landscaping construction work that was completed in December of 2012. Status: Update as of January 29, 2014, the project to Increase Digestion Capacity is anticipated to start the design development phase by 2015. The MWMC has three existing digesters. Justification: Continue to meet the requirements for Class B digestion with the ability to take one digester out of service for cleaning and/or repairs. Project Driver: Addresses anaerobic digestion capacity needs. The 2004 MWMC Facilities Plan considers an option to upgrade the existing digestion process to meet Class A biosolids standards as a strategy to secure a wider range of beneficial end-use options and increase program flexibility. Since that time, the MWMC has effectively expanded beneficial application of Class B biosolids with expansion of the Biocycle Poplar Farm, and through working with private sector end-users. Project Trigger: Recent observations indicate that expanded digestion facilities will not be needed before 2017 or perhaps later. This project will take a few years to design and construct. The project trigger depends on projected loading and other factors including the effectiveness of new primary sludge thickening process, and digester cleaning protocols and schedules. Improvement SDC Eligibility: 54.3% Estimated Project Cost: $9,353,170 (The estimated cost was adjusted.) Expected Cash Flow: FY 11-12 = $139,028; FY 12-13 = $44,142; FY 13-14 = $0; FY 14-15 = $620,000 FY 15-16 = $1,200,000; FY 16-17 = 3,000,000; FY 17-18 = 4,100,000; FY 18-19 = 250,000 Expenditure/Category: Prior Years 2013-14 Est. Act. 2014-15 2015-16 2016-17 2017-18 2018-19 Total Design/Construction $183,170 $0 $2,800,000 $6,370,000 $0 $0 $0 $9,353,170 Other $0 $0 $0 $0 $0 $0 $0 $0 Total Cost $183,170 $0 $2,800,000 $6,370,000 $0 $0 $0 $9,353,170 Metropolitan Wastewater Management Commission Capital Improvement Program Page 60 Preliminary FY 14-15 BUDGET AND CIP AERATION BASIN IMPROVEMENTS – PHASE 2 Description: Aeration Basin (Phase 2): Add step feed, anoxic selectors, and fine bubble diffusers to 4 of the 8 cells of the aeration basins and make hydraulic improvements. This project was originally the North Aeration Basin Improvements project; however the Phase 1 study/design phase showed that improvements to the 4 eastern most basins as a first phase would allow for better hydraulics and more operational flexibility. Status: The Aeration Basin (Phase 2) project is anticipated to start design development in 2016. Justification: Increase the dry weather aeration basin treatment capacity with respect to ammonia (with nitrification) and increase the wet weather treatment capacity. Project Driver: National Pollution Discharge Elimination System (NPDES) permit includes ammonia limit requiring nitrification in dry weather and expansion of wet weather capacity to treat wet weather flows to meet NPDES permit monthly and weekly suspended solids limits. Project Trigger: Address water quality requirements (need to evaluate the requirements based on the MWMC NPDES permit renewal). Project Type: 50% Capacity; 50%Performance Improvement SDC Eligibility: 58.7% Estimated Project Cost: $13,200,000 Expected Cash Flow: FY 16-17 = $1,600,000; FY 17-18 = $6,000,000; FY 18-19 = $5,600,000 Expenditure/Category: Prior Years 2013-14 Est. Act. 2014-15 2015-16 2016-17 2017-18 2018-19 Total Design/Construction $0 $0 $0 $0 $2,600,000 $5,300,000 $5,300,000 $13,200,000 Other $ 0 0 0 $0 $0 $0 $0 $0 Total Cost $0 $0 $0 $0 $2,600,000 $5,300,000 $5,300,000 $13,200,000 Metropolitan Wastewater Management Commission Capital Improvement Program Page 61 Preliminary FY 14-15 BUDGET AND CIP OPERATIONS & MAINTENANCE BUILDING IMPROVEMENTS Operations Building Maintenance Building Aerial Maintenance Building ISC Modular Building Description: Update and expand the Maintenance Building and the Operations Building at the Water Pollution Control Facility (WPCF). Construct new building to replace the existing temporary Industrial Source Control (ISC) modular office building. Status: This MWMC project sheet was created as a placeholder in preparation to further develop this project. In 2013, a consultant study provided a preliminary analysis. Staff needs to further develop the project scope of work, project budget, and anticipated schedule for each phase of work (planning/design/bidding/construction/warranty). Justification: The original design for the Operations Building at the WPCF was completed in 1978. Since that time, use of the operations and maintenance (O&M) buildings have changed substantially due to modifications in the workforce, advancing technology, regulatory changes, and an increase in staff from 51 to 78 full-time-equivalents (FTE). The temporary ISC modular building was installed in 1996 and is in poor condition. Project Driver: The MWMC continues to implement improvements identified in the 2004 Facilities Plan. The need to update and/or upgrade the existing O&M facilities is driven by changes in the wastewater/environmental business since the original MWMC construction that occurred in the early 1980’s. Project Trigger: As needed, due to expansion and changes related to the MWMC facilities. Estimated Project Cost: To be determined during the project scoping phase (planning estimates as follows)  Maintenance Building improvements: $2.5 million  Admin/Operations Building improvements: $1.0 million  Modular Building replacement: $2.3 million Improvement SDC Eligibility: To be determined Expected Cash Flow: FY 14-15 = $1,000,000; FY 15-16 = $300,000; FY 16-17 = $2,500,000; FY 17-18 = $2,000,000 (estimated cash flow) Expenditure/Category: Prior Years 2013-14 Est. Act. 2014-15 2015-16 2016-17 2017-18 2018-19 Total Design/Construction $0 $0 $1,300,000 $0 $4,500,000 $0 $0 $5,800,000 Other $0 $0 $0 $0 $0 $0 $0 $0 Total Cost $0 $0 $1,300,000 $0 $4,500,000 $0 $0 $5,800,000